Aberdeen New India Investment Trust agrees three-year deal with Saba

Aberdeen New India Investment Trust has entered into an agreement designed to limit potential intervention from Saba Capital Management for the next three years.

The deal gives the investment trust's board a clearer period in which to operate without Saba proposing shareholder resolutions, seeking board changes or opposing board-backed votes.

However, the protections are not absolute. Saba remains free to trade the trust's shares, apart from short selling, and can support or accept a takeover offer.

Here is what shareholders need to know from the original company announcement.

What has Aberdeen New India Investment Trust announced?

Aberdeen New India Investment Trust has signed an agreement with abrdn Fund Managers Limited, known as aFML, and Saba Capital Management.

The announcement follows an earlier statement made by Aberdeen Group on 7 May 2026, although the latest RNS does not repeat the details of that announcement.

The new agreement is described as lasting three years. In practice, Saba's undertakings remain in place until the earlier of:

• The conclusion of Aberdeen New India Investment Trust's 2029 annual general meeting.
• The date on which aFML stops serving as the trust's alternative investment fund manager.

An alternative investment fund manager, often shortened to AIFM, is the appointed entity responsible for managing the fund under the relevant investment fund framework.

What has Saba agreed not to do?

The agreement places several clear restrictions on Saba's activity involving the trust.

Saba undertaking	What it means for shareholders
No shareholder proposals or requisitioned resolutions	Saba cannot put its own proposals to shareholders or demand a resolution or general meeting.
No attempt to change the board	The existing directors are protected from a Saba-led effort to alter the board's composition.
No effort to control or influence the trust	Saba cannot seek influence over the board, the company, its policies or its management.
No voting against board recommendations	Saba must not oppose the board's recommendation on resolutions presented at shareholder meetings.
No short selling	Saba cannot directly or indirectly short the trust's shares. Short selling generally involves selling borrowed shares in the expectation of buying them back at a lower price.

Taken together, these undertakings amount to a meaningful period of governance stability for the board.

Saba cannot use the usual shareholder mechanisms listed in the announcement to press for boardroom, policy or management changes while the agreement remains active.

What can Saba still do?

The agreement does not remove all of Saba's options.

Saba can still buy or sell shares in Aberdeen New India Investment Trust. The restriction applies specifically to short selling, rather than ordinary dealing in the shares.

It can also vote in favour of, or accept, any takeover offer for the company. That is an important exception because the agreement does not require Saba to oppose a potential acquisition simply because the existing board prefers another course.

The protections would also end early if aFML ceased to be the trust's alternative investment fund manager. The RNS does not explain why the agreement has been linked to aFML's continued appointment.

Why this agreement matters for investors

The immediate positive is reduced uncertainty around potential shareholder intervention.

Until the agreement expires, Saba cannot seek board changes, requisition meetings or use its votes against board recommendations. That should allow the directors and manager to focus on running the trust without the specific actions covered by the agreement hanging over them.

The restrictions are also broad. They cover not only formal resolutions and board appointments but attempts to influence the trust's policies or management.

There is a trade-off, though. Shareholder pressure can sometimes force boards to address concerns more quickly. By limiting Saba's ability to challenge the board, the agreement reduces one potential source of external pressure during the protected period.

That does not mean the board is free from normal shareholder scrutiny. Other investors are not identified as parties to the agreement, and the RNS only describes undertakings given by Saba.

What the announcement does not disclose

This is a focused governance announcement rather than a financial or trading update. Several details that investors may want are not disclosed, including:

• The size of Saba's shareholding in the trust.
• Whether Saba plans to increase, reduce or maintain its investment.
• Whether any payment or other financial consideration forms part of the agreement.
• Any changes to the trust's investment strategy, dividend policy or capital management arrangements.
• Any commitment involving share buybacks, tender offers or other measures affecting the trust's shares.
• The expected financial impact of the agreement.

There is also no disclosed market reaction in the announcement.

Investors should therefore avoid reading the deal as a wider strategic settlement beyond the terms actually published. The confirmed outcome is a set of restrictions on Saba's actions, subject to stated exceptions and an early termination condition.

How does this compare with other Saba agreements?

The structure will be familiar to investors who follow agreements involving investment trusts and significant shareholders: restrictions are accepted for a defined period, while certain rights remain available.

For wider context on similar announcements, readers can review the separate coverage of the Aberdeen UK Smaller Companies Growth Trust agreement with Saba.

Each agreement still needs to be judged on its own wording. For Aberdeen New India Investment Trust, the crucial details are the 2029 AGM end point, the link to aFML's appointment and the exceptions covering ordinary share dealing and takeover offers.

What shareholders should watch next

The agreement reduces the likelihood of a direct Saba-led governance challenge, but it does not by itself change the trust's underlying investment performance or strategy.

Shareholders will still need to assess future portfolio results, board decisions and any capital management measures on their own merits. None of those outcomes is guaranteed by this announcement.

The key date is the trust's 2029 annual general meeting, unless aFML ceases to be its alternative investment fund manager before then. Investors should also watch for any disclosure concerning Saba's shareholding, as the current announcement does not provide that figure.

For now, the board has secured a substantial period of protection from the actions specified in the agreement. The benefit is greater operational stability. The limitation is that Saba retains the ability to trade its shares and support a takeover, while the RNS offers no new financial commitments or strategic changes for shareholders to assess.