Investment trust AGMs in March 2025 and Saba round two

There’s been an unprecedented focus on shareholder meetings in February with US activist Saba Capital seeking to seize control of what it called the “Miserable Seven”.

No sooner had Saba been soundly defeated in all seven votes than its founder Boaz Weinstein unveiled a “plan B" aimed at convincing the boards of four investment trusts to transition into open-ended equivalents.

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Round two of the Saba battle

Having seen off Saba’s proposals, CQS Natural Resources G&I Ord (LSE:CYN) and The European Smaller Companies Trust PLC (LSE:ESCT) barely had time to catch their breath before they were in Saba’s cross hairs once again, alongside Schroder UK Mid Cap Ord (LSE:SCP) and Middlefield Canadian Income Ord (LSE:MCT). 

In an open letter to shareholders, Weinstein acknowledged that “shareholders were not ready to fully replace the boards with new directors” but added that “many investors agree with Saba on one crucial point: the importance of the option for liquidity at net asset value (NAV)”.

His proposal looks to address current discounts by providing liquidity for investors to transition to the equivalent open-ended strategy.

Since this open letter was penned, Saba has temporarily withdrawn its intention to requisition general meetings on this matter for The European Smaller Companies and Middlefield Canadian Income.

It remains to be seen whether Saba has more joy with this approach. In the meantime, there’s a full roster of AGMs on the slate for March.

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CC Japan Income & Growth Trust

CC Japan Income & Growth Ord (LSE:CCJI) kicks off AGM proceedings for the month, offering investors a best-of-both-worlds income and capital strategy. There’s certainly been a lot for investors to absorb on the macro front in 2024, with a new prime minister, sustained inflation, and the long-awaited interest rate hikes, but CCJI ended the year with a respectable 8% share price total return.

All in all, there seems to be a fairly positive outlook for the year ahead with Japan likely to benefit from its strong relationship with the US on the tariffs front. Corporate reform also continues apace, with the Tokyo Stock Exchange continuing to crack down on perceived mismanagement of capital and unwinding cross-shareholdings.

Shareholders will cast their votes on 14 ordinary and special resolutions at the AGM, including the re-election of four directors and the authority to repurchase up to 15% of the trust’s shares. The trust’s discount widened to -9% in its recent financial year, albeit CCJI remains at the narrowest discount within the AIC Japan sector.

Schroder European Real Estate

As interest rate cuts gradually draw renewed investor interest in the property sector, it’s the turn of Schroder European Real Estate Investment Trust (LSE:SERE) to hold its AGM in March.

It’s fair to say that European real estate has endured a challenging year, with higher interest rates weighing on property valuations, but SERE offers investors the differentiated proposition of a European portfolio.

The key attraction of SERE is its high yield of 7.5%, alongside a wide discount of 35%, backed by a diversified portfolio across the office, industrial, retail and alternative sectors.

Shareholders will be asked to vote on 13 resolutions, with three director re-elections, authority for share buybacks and directors’ remuneration among the votes due to take place.

BlackRock Energy and Resources Income 

Rounding off the month is BlackRock Energy and Resources Inc (LSE:BERI), which supplements the growth and income potential in the mining and traditional energy sectors with the strong structural drivers in the energy transition sector.

All eyes will be on the impact of Trump 2.0 on the sector, although it’s worth noting that the US installed more solar panels and wind turbines under Trump than Biden. The managers are also bullish on the outlook for traditional energy (and exploration and production) stocks in particular, given Trump’s “drill, baby, drill” mantra during his presidency campaign.

Shareholders will have the opportunity to vote on 13 resolutions, from the re-election of three directors to the authority to buy back shares at this year’s AGM.

And that brings down the curtain on March’s AGMs, setting the stage for another intriguing month with the spotlight on the outcome of the next round of Saba’s campaign.

All numbers as at 19/02/2025 unless stated otherwise. 

Jo Groves is an investment specialist for Kepler Trust Intelligence.