Herald Investment lifts NAV but discount widens amid ongoing dispute with Saba Capital

(Sharecast News) - Herald Investment Trust said on Monday that it had delivered a strong performance over the year ended 31 December, reporting further growth in assets and continued outperformance against its benchmark, despite ongoing governance challenges linked to a major shareholder. The FTSE 250-listed trust said net asset value per ordinary share had risen to 2,700.50p as of 31 December, an increase of 8.5% from 2,488.20p a year earlier, outperforming the Russell 2000 Technology Index, which fell 0.3%.

Herald Investment also stated total net assets had increased to £1.29bn from £1.25bn, though its discount to NAV widened sharply to 10.9% from 2.3%.

Additionally, Herald said it had again opted not to recommend a dividend for 2025, in line with the prior year as it highlighted the "unwanted attentions" of Saba Capital Management, which holds a roughly 31% stake in the trust and has influenced strategic decisions, including the suspension of share buybacks.

"Saba have blocked the board's proposal to give shareholders the choice between selling back to the Company at or close to NAV or staying with the current successful mandate," said chairman Andrew Joy..

"At the time of writing, it is therefore unclear whether a solution can be found to reconcile the interests of Saba, who have a blocking minority shareholding, and of the rest of the shareholders who form the majority. The board continues to work hard in an attempt to find such a solution, as they have done for many months."

Reporting by Iain Gilbert at Sharecast.com