Research by Investec warned retail shareholders that Saba Capital has failed to offer a “credible alternative”, pointing out they are being asked to “vote first, then find out later what you have voted for”.

The call to action comes as the Edinburgh-based trust prepares to fight a requisition notice filed by Saba in August, calling for shareholders to appoint three Saba-nominated directors, Jason Chen, Thomas H McGlade and James Waterlow, to the board. The AGM will be held at the offices of Stephenson Harwood on 23 October.

Investec highlighted that the trust ‘endured a brutal period during the de-rating of long-duration growth companies’ but said its high-conviction focus on exceptional companies and strengthened investment process and risk controls had supported the subsequent recovery.

During the financial year to 31 May 2026, the company’s share price and net asset value (NAV, after deducting borrowings at fair value) returned 44.5% and 31% respectively, exceeding the S&P 500 Index benchmark’s total return of 29.8%.

Investec raised the team for the “subsequent recovery” over the past two years stating it has “been encouraging, noting that the trust ranks 3rd among 124 UK-based open and closed-ended US equity funds since its IPO. Investec rated the trust as a hold.

The experts stated: “Saba Capital offers no credible alternative. Shareholders are being asked to give its nominees potential control of the Board without any roadmap for the future manager, strategy or governance: vote first, then find out later what you have voted for.

“Saba’s reported rejection of near-NAV exits raises questions over whether liquidity is the objective or merely a route to control, and whether it is deploying client capital in a campaign that could advance its own commercial interests. Meanwhile, the experience of its two US-listed closed-end funds provides a cautionary tale and fundamentally undermines its claim to protect “mom-and-pop” investors.

“The choice is clear: preserve USA’s distinctive proposition or give Saba influence over its future without knowing what follows. The threat is not merely disruption; it is the risk that the strategy underpinning USA’s long-term value creation could be dismantled just as the recovery gathers momentum.

“Shareholder participation is therefore critical: non-participation lowers the effective hurdle for Saba’s nominees to secure Board seats and, through them, for Saba to influence USA’s future. Inaction is not neutral; every vote matters. We strongly recommend supporting the incumbent Board, manager and strategy.”

It comes after Chair Tom Burnet told Scottish Financial News that their vote will decide the future of the trust in the upcoming vote and must use their, regardless of their stake. 

Mr Burnet voiced concerns about shareholders electing three individuals “linked with or employed by Saba” to the board, which it said would “severely compromise” the board’s independence, by not turning up to vote.

Saba Capital has been contacted for comment.