Middlefield Canadian Income PCC on Thursday advises shareholders to take ‘no action at this time’, in response to Saba Capital Management LP’s requisitioning of a general meeting.
The investor focused on Canadian and US equities was one of four trusts called out by Saba on Monday, alongside CQS Natural Resources Growth & Income PLC, European Smaller Cos Trust PLC and Schroder UK Mid Cap Fund PLC.
Saba believes ‘it is apparent’ that shareholders at all four trusts ‘have been trapped in closed-end vehicles trading at deep discounts for years’.
‘In our view,’ Saba said on Monday, ‘the necessary solution is to roll or convert these trusts into open-ended funds, which by definition trade at NAV and are free of the structural issues that plague closed-ended funds.’
The requisitioned meetings come on the back of Saba’s attempt in December to oust the current boards of seven investment trusts. Both CQS Natural Resources Growth & Income and European Smaller Cos Trust were targeted in December, too.
Shareholders at six of the trusts have so far rejected Saba’s proposals, with Edinburgh Worldwide Investment Trust PLC still due to hold a vote at a general meeting on Friday.
Middlefield Canadian Income said: ‘The board is committed to acting in the best interests of all shareholders and will make a further announcement regarding the requisition in due course’.
Shares in Middlefield Canadian Income were down 0.1% at 121.87 pence each in London on Thursday morning.
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