Baillie Gifford’s Keystone Trust defeats Saba

Baillie Gifford’s Keystone Positive Change Investment Trust announced that requisitioned resolutions put forward by New York activist hedge fund Saba Capital Managemen were defeated on a poll of shareholders.

Keystone is one of the seven investment trust companies attacked by Saba Capital “to convene general meetings of shareholders to … vote on resolutions to remove the Trusts’ existing directors and appoint highly qualified directors to replace them.”

Three of the seven funds are managed by Edinburgh-based Baillie Gifford.

“Over 60 per cent. of the votes cast were against Saba’s Requisitioned Resolutions,” said Keystone.

“Excluding the votes Saba cast in favour of its own Requisitioned Resolutions (representing 1,650,762 votes and approximately 38.87 per cent. of the votes cast), only a further 33,845 votes, representing just 0.80 per cent. of the votes cast, were voted in favour of the Requisitioned Resolutions.

As a result, the company’s five, independent non-executive directors remain on the board and will immediately refocus their efforts on delivering a full cash exit for shareholders in line with the proposals announced by the board prior to the requisition.”

Karen Brade, chair of Keystone Positive Change Investment Trust plc, said: “I would like to thank all the shareholders who stood up to vote in support of the board’s recommendation. Of the votes cast, nearly 99 per cent. of the non-Saba shareholders rejected its proposals.

“Now our focus returns to delivering the proposed scheme that offers an uncapped cash exit and/or a rollover into a more liquid fund with a similar global impact strategy. We are confident that this remains in the best interests of shareholders.”

“The board intends to re-engage with stakeholders without delay in order to implement this Scheme as soon as practicable.”