CQS Natural Resources Growth and Income has proposed a tender offer of up to 100% of its shares following talks with activist investor Saba Capital.
The investment trust’s board has offered its investors a choice between remaining invested in the trust, with an enhanced dividend and lower management fees, or exiting through the tender offer.
Saba has applied pressure to the CQS board in recent months, calling two requisitions before the board implemented a strategic review.
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As part of the review, the trust has reduced its fees to a flat 1% of the total NAV per year. It has also adopted an enhanced dividend of 2% per quarter.
Saba has agreed to vote in favour of the resolutions and will tender its shares.
Board chair Christopher Casey said: “Following a thorough review and the consideration of various options, we are pleased to put forward proposals that allow all shareholders to choose to remain invested in the company or to exit for cash. Importantly, the structure proposed, via the creation of a tender pool, protects those shareholders that choose to remain from the risks involved with liquidating a portion of the fund.
“We have also strived to strengthen the company’s investment proposition going forward, with an attractive dividend policy, equivalent to approximately 8 per cent. per annum and reduced investment management fees.
“We believe this package, and the ongoing support of CQS (UK) LLP, provides the company and the fund managers with the tools to continue to deliver strong performance in the natural resources sector. My fellow directors and I have all confirmed that we will not tender our shares.”
Boaz Weinstein, Founder and CIO of Saba, said: “Today’s agreement with CYN highlights that meaningful, shareholder-friendly reform in the UK trust sector is not only possible—it’s happening. When boards engage constructively, investors win.
“This outcome gives CYN shareholders a clear choice: full liquidity at NAV or the opportunity to stay invested in a trust with a higher dividend and a reduced management fee. It’s a true win-win.
“CYN marks the fifth successful outcome among Saba’s nine UK campaigns in 2025, reinforcing the momentum for change across the sector. We’re proud to drive this transformation and remain committed to securing similar value-enhancing results for shareholders industry-wide.”
