Glass Lewis supports removing chair of Trian UK investment trust
26/07/2022 18:12
LONDON, July 26 (Reuters) - Proxy adviser Glass Lewis has
backed a call by shareholders in UK investment trust Trian
Investors 1 (TI1) TI1.L to remove TI1 Chair Chris Sherwell due
to governance concerns.
TI1 shareholders Global Value Fund, Invesco, Janus Henderson
and Pelham, which together hold around 40% of shares in the
trust, cite concerns about recent changes to TI1's strategy on
the number and type of its investments, proposals to turn the
trust into a special purpose acquisition company (SPAC) and
about its share price performance.
"The TI1 Board is not fit for purpose," the rebel investors
said in a letter to shareholders on Tuesday ahead of an
extraordinary general meeting on Aug. 5 to vote on their
resolutions to remove Sherwell as well as directors Anita Rival
and Simon Holden. urn:newsml:reuters.com:*:nFWN2Y703Z urn:newsml:reuters.com:*:nL1N2Y81IB
TI1, which has previously recommended that shareholders vote
against all the EGM resolutions, did not immediately respond to
a request for comment.
TI1's investment management strategy is carried out by
activist investor Nelson Peltz's Trian Fund Management, whose
holdings include Unilever ULVR.L and Wendy's WEN.O .
Changes to TI1's investment policy have impacted the timing
and the extent of the value and returns that shareholders can
expect, Glass Lewis said in a report dated July 20.
"We are generally sympathetic to the dissidents' argument
that the investment manager and the board have taken actions
that changed the fundamental nature and purpose of the company
since most, if not all, of the company's major shareholders
chose to invest in the company," Glass Lewis added.
TI1's board had made some efforts to address investor
concerns, Glass Lewis said, and it recommended voting against
removing the other two directors.
Fellow adviser ISS said in a July 22 report that it backed
the removal of Rival, but was against sacking Sherwell.
Both advisers recommended adding the investors' choice of
Robert Legget to the board.
(Reporting by Carolyn Cohn; Editing by Josie Kao)
((carolyn.cohn@thomsonreuters.com; 44 207 513 4391;))