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Two FTSE 250 investment trusts managed by Blackrock Inc on Wednesday signed deals with Saba Capital Management LP, amid spats between Saba and a number of London-listed investment trusts. Blackrock Smaller Companies Trust PLC and Blackrock World Mining Trust PLC have entered agreements with Saba, a New York-based activist investor. Neither deal involve a monetary consideration to Saba or its affliates, the two trusts said. Their agreements specify Saba must not seek control or influence over boards, funds or policies. Additionally, Saba will not put forward any proposals or requisition resolutions. Saba’s vote on any matter should align with the recommendation of the trusts’ boards, they said. Saba also has agreed not to engage in short selling of shares. Wednesday’s agreements mirror those signed on Tuesday by two New York-based funds, Blackrock Innovation & Growth Term Trust PLC and Blackrock Health Sciences Term Trust PLC. This signals an apparent calming of tensions in Blackrock’s disputes with Saba, which date back several years. Saba has previously acquired Blackrock funds whose share prices were trading at a discount. Blackrock Smaller Companies said its net asset value at the financial 2024 year end was down 6.6% from the year prior. Its shares were up 0.2% at 1,354.62 pence each on Wednesday morning in London. Meanwhile, Blackrock World Mining’s shares were down 0.6% at 501.00p each. The company in July reported its NAV total return for financial 2024 fell to negative 6.4%, below its benchmark, the MSCI All Country World index, which was negative 4.4%. Both trusts’ agreements with Saba will hold until 2027. Saba in December requisitioned meetings at seven other UK investment firms, proposing a shake-up to address ‘underperformance’. Voting is underway on these proposals, which have prompted widespread dissent among the smaller firms. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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