Wednesday sees one of the most important days for the UK investment trust sector for years.
Herald Investment Trust (LSE:HRI) is facing a vote on whether its board should be replaced by nominees of aggressive US hedge fund Saba Capital.
The vote is one of seven board overhauls at trusts that Saba has proposed, but as the first it will be the litmus test.
Herald has been receiving plenty of support in its defence.
Heavyweight institutional proxy voting agencies ISS and Glass Lewis for example have both recommended the Saba proposal be rejected as have a string of other commentators, while financial regulator the FCA is said to be monitoring the situation.
Of the seven trusts being targeted, three are managed by Baillie Gifford which will get the support of Scottish Mortgage, another Baillie-managed outfit.
As well as Herald the other trusts under threat are Keystone Positive, CQS Natural Resources, Henderson Opportunities, Edinburgh Worldwide, Baillie Gifford US Growth and European Smaller Cos.
Reports this week have suggested Saba has increased its holding in Herald to 29.9% level (before it has to make a formal bid) without too much trouble.
Saba only needs a simple majority to get its resolution passed and to sweeten its plan it has dangled the prospect of a cash payout to shareholders worth 99% of NAV if it succeeds.
Herald has pointed out the vagueness of that plan and how the US firm’s performance has trailed the trust by some distance over many years.
But even with that robust-looking defence, it will be a nervy morning not only for Herald but the UK investment trust sector generally.