Saba Capital Management is offering shareholders in Herald Investment Trust a full cash exit near net asset value if they back its efforts to replace the board.

The New York based asset manager, led by Boaz Weinstein, is targeting seven investment trusts, demanding that they fire their boards and hire new directors.

Saba has accumulated stakes ranging from 19% to 29% in the trusts, which include Baillie Gifford US Growth Trust, Edinburgh Worldwide, European Smaller Companies Trust and Keystone Positive Change Investment Trust.

Commenting on its offer to HIT, it said: “If shareholders support Saba’s resolutions to reconstitute the HRI [Herald Investment Trust] board, Saba would encourage the new board to offer all shareholders a 100% cash exit at 99% of the Trust’s NAV, ” said Saba in a statement.

“As a result, Saba expects that shareholders will have the opportunity to sell their entire position at 99% of NAV, if they wish.

“In addition, Saba would support further changes so this cash exit would be overseen by a fully independent board and would not expect it to occur for at least a year thereafter, ensuring portfolio value is maximised.

“These new commitments come in response to feedback from shareholders, who have suffered a 14.7% three-year average discount to NAV, and provide certainty regarding the plan to deliver long-overdue liquidity to all shareholders, alongside the opportunity for greater long-term returns under a new investment strategy and manager.”

Saba has requisitioned General Meetings of seven Trusts to provide shareholders the opportunity to vote on resolutions to remove their existing directors and appoint replacements.

Saba said it is convening the general meetings because it believes the current boards and investment managers have failed to perform versus their benchmarks and have, therefore, required Saba’s investment to narrow the deep trading discounts to NAV and deliver returns for shareholders.

Mre Weinstein will be hosting a webinar next Tues (14 Jan) at 1pm GMT to discuss Saba’s plan to deliver shareholder value at HRI and all 7 trusts in more detail. Shareholders can can register here.

The following trusts’ requisitioned general meetings have been scheduled:

HRI: 22 January 2025 at Noon

USA: 3 February 2025 at Noon

KPC: 3 February 2025 at Noon

HOT: 4 February 2025 at 10am

CYN: 4 February 2025 at 11am

ESCT: 5 February 2025 at 12:30pm