What caught my eye this week.<\/em><\/p>\n I<\/span>t\u2019s not been easy to find reasons to be optimistic about the shrinking British<\/a> stock market in recent years.<\/p>\n But I think how private investors, fund managers, the investment trust industry, and investment platforms worked together to defeat US firm Saba\u2019s designs on the trust sector might qualify.<\/p>\n As I wrote last month<\/a>, there was something of a last alliance vibe about this coalition of the unwilling.<\/p>\n But so comprehensively was Saba defeated \u2013 it lost all seven showdowns, and on large turnouts of private investors who overwhelmingly voted no \u2013 that the result was quite heartening.<\/p>\n This was shareholder democracy in action, and I\u2019m all for it.<\/p>\n Moreover the platforms showed that they can facilitate such a democracy if called upon.<\/p>\n In the early days of Monevator<\/em>, lots of readers urged me to write articles about the evils of nominee share ownership<\/a> and the demise of paper share certificates.<\/p>\n I saw their point. But I also saw the changes as inevitable and not the most important battle to win compared to, say, lowering fees or spreading knowledge about index fund investing.<\/p>\n Anyway such appeals stopped long ago, whether because the proponents accepted the change or because they moved on to a realm where their voice was even less influential than here on this mortal coil.<\/p>\n But wherever they are, I hope they\u2019re heartened too.<\/p>\n Nominee ownership and representation via electronic voting on platforms does not inevitably mean disenfranchisement, or to be kicked around by those with the billions and the biggest boots.<\/p>\n And that is good news, whether or not you agreed with Saba\u2019s charges and proposals. (Personally I share some of his complaints. But I was not persuaded by the remedy he was offering.)<\/p>\n Saba is now going after a new quartet of trusts, suggesting<\/a> they be turned into open-ended funds.<\/p>\n Curiously, Moguls<\/em>-featured Pershing Square isn\u2019t on<\/a> the list despite its yawning discount.<\/p>\n Anyway, we\u2019ll have to whether Saba\u2019s relentlessness eventually exhausts the opposition.<\/p>\n More UK investors are apparently getting in on the act too. For example, the hugely talented Christopher Mills is said to be<\/a> raising money for a trust that will work to close discounts at rivals.<\/p>\n As somebody who sees rife opportunity<\/a> in the trust sector, I\u2019m not surprised.<\/p>\n Though ironically two Mills-affiliated investment trusts themselves sit on 25-30% discounts\u2026<\/p>\n I\u2019ll leave more comment in that direction for our Moguls<\/em> member<\/a> posts though.<\/p>\n Indeed for most Monevator<\/em> readers who sensibly<\/a> invest in index funds, this might all seem a bit irrelevant.<\/p>\n But I\u2019d suggest it\u2019s very relevant.<\/p>\n As index funds take up an ever-larger share of the overall investing pie, it\u2019s really important that cheap and effective investing for the masses doesn\u2019t become a lazy synonym for disenfranchised investors and the fracturing of shareholder democracy.<\/p>\n That charge has already being made as index funds have grown to dominate the investing landscape. For example, from the New Statesman<\/em><\/a>:<\/p>\n The upshot of this mix is an ownership regime with a chief interest in maximising assets \u2013 whether by minimising costs to take market share, or by promoting general asset price inflation \u2013 and takes little interest both in how capital is allocated and how any company within its diversified portfolio is governed.<\/p>\n In other words, such an ownership regime takes no ethical stance on what those companies produce, how they are run, what they sell or what impact they have on the planet.<\/p>\n<\/blockquote>\n It\u2019s a valid concern.<\/p>\n Squint though and you can see this battle with Saba as upholding the thin end of the same wedge that ends with Vanguard cutting fees further in the US recently<\/a>.<\/p>\n The common thread is what\u2019s ultimately in the long-term interests of ordinary shareholders.<\/p>\n Perhaps there\u2019s even a future where even index fund investors get to vote their wishes somehow on the vast range of issues raising by the firms their tracker funds hold \u2013 albeit perhaps by aggregating their general wishes at the fund manager level?<\/p>\n Time will tell. But I\u2019m more hopeful about that sort of thing than I was two months ago.<\/p>\n Have a great weekend.<\/p>\n p.s. Two corrections! We featured a wonky graphic in the email of TA\u2019s linker piece on Tuesday. Thanks to reader Richard for the heads-up, and see the corrected<\/a> post for the right graph. Then the next day TA achieved a \u2013 very rare for him \u2013 double by misstating<\/a> the age you can open a cash ISA. You must be 18, of course. Sorry cash-loving youngsters! And cheers to reader Tommo for spotting what I missed.<\/em><\/p>\n Did individual linkers hedge post-pandemic inflation? \u2013 Monevator<\/a><\/p>\n UK tax deadline: how to make use of all your allowances\u2026 \u2013 Monevator<\/a><\/p>\n \u2026including that dreamy \u00a320,000 ISA allowance \u2013 Monevator<\/a><\/p>\n From the archive-ator: Stonking gains, hedge fund pains \u2013 Monevator<\/a><\/p>\n Note: Some links are Google search results \u2013 in PC\/desktop view click through to read the article. Try privacy\/incognito mode to avoid cookies. Consider subscribing to sites you visit a lot.<\/em><\/p>\n UK inflation jumps back to 3% \u2013 Morningstar<\/a><\/p>\n Fund managers step up calls for Reeves to \u2018simplify\u2019 ISAs [Search result]<\/em> \u2013 FT<\/a><\/p>\n Treasury rejects farmers clawback compromise on inheritance tax\u2026 \u2013 Farmer\u2019s Guide<\/a><\/p>\n \u2026but government does backtrack on tax hike for private equity firms \u2013 CityAM<\/a><\/p>\n Reeves\u2019 intervention in car loans case rejected \u2013 BBC<\/a><\/p>\n Confidence in economy among wealthy Britons falls to record low \u2013 This Is Money<\/a><\/p>\n VOO has dethroned SPY as world\u2019s largest ETF [US but relevant]<\/em> \u2013 Sherwood<\/a><\/p>\n How to fix Europe\u2019s securitisation market \u2013 FT<\/a><\/p>\n Devon farmer culls 5,000 hens due to bird flu \u2013 BBC<\/a><\/p>\n House prices in Gwynedd in Wales plunge on second-home policies \u2013 BBC<\/a><\/p>\n London registers zero house price growth for 2024, says ONS [Search result]<\/em> \u2013 FT<\/a><\/p>\n Should you choose a savings account that offers a boosted rate? \u2013 Which<\/a><\/p>\n NS&I cuts rates on Premium Bonds and Income Bonds \u2013 T.I.M.<\/a><\/p>\n Get up to \u00a31,500 cashback when you transfer your cash and\/or investments through this link<\/a>. Terms apply \u2013\u00a0Charles Stanley<\/a><\/p>\n Plum and Chip boost cash ISA rates above 5% \u2013 This Is Money<\/a><\/p>\n Major lenders cutting mortgage rates, but don\u2019t hang around \u2013 T.I.M.<\/a><\/p>\n Co-operative Bank switch offer: \u00a375 + \u00a375 \u2013 Be Clever With Your Cash<\/a><\/p>\n The best car insurers you won\u2019t find on the comparison sites \u2013 Which<\/a><\/p>\n Open an account with low-cost platform InvestEngine via our link<\/a> and get up to \u00a3100 when you invest at least \u00a3100 (T&Cs apply. Capital at risk) \u2013 InvestEngine<\/a><\/p>\n Buy-to-let mortgage market update [Podcast]<\/em> \u2013 The Property Podcast<\/a><\/p>\n Family homes with gardens, in pictures \u2013 Guardian<\/a><\/p>\n Exchange-traded absurdity \u2013 Dumb Money Dispatch via LinkedIn<\/a><\/p>\n Spending shock \u2013 Quietly Saving<\/a><\/p>\n Eight investment rules to live and die by \u2013 FT<\/a><\/p>\n Six ways couples can cut tax and maximise their savings \u2013 Which<\/a><\/p>\n Targeting apathy \u2013 A Teachable Moment<\/a><\/p>\n Dealing with uncertainty \u2013 Behavioural Investment<\/a><\/p>\n Allan Roth: examining Vanguard\u2019s expected returns for the decade ahead \u2013 A.P.<\/a><\/p>\n Improbable outcomes \u2013 Fortunes & Frictions<\/a><\/p>\n The Midas touch: 4,000 years of getting it wrong about gold [Search result]<\/em> \u2013 FT<\/a><\/p>\n William Bernstein: why I don\u2019t use retirement calculators \u2013 Advisor Perspectives<\/a><\/p>\n A modest capital tax could help avoid austerity and boost economy \u2013 The Conversation<\/a><\/p>\n \u2018Fuck you\u2019 money is useless without the \u201cfuck you\u201d<\/em> \u2013 The Way of Work<\/a><\/p>\n Never enough \u2013 Humble Dollar<\/a><\/p>\n A couple who spends hours a week in passionate stock talk \u2013 This Is Money<\/a><\/p>\n Can bubbles repeat? \u2013 Arcadian Asset Management<\/a><\/p>\n More thoughts on the Magnificent Seven \u2013 Brooklyn Investor<\/a><\/p>\n The top 15 value-creating stocks of the past decade \u2013 Morningstar<\/a><\/p>\n Hundreds of unicorns haven\u2019t raised funding since 2021 \u2013 Crunchbase<\/a><\/p>\n Does trend following still work on stocks? [Research]<\/em> \u2013 SSRN<\/a><\/p>\n Fooled by Randomness<\/em>\u00a0by Nassim Taleb \u2013\u00a0\u00a30.99 on Kindle<\/a><\/p>\n The Price of Time<\/em>\u00a0by Edward Chancellor \u2013\u00a0\u00a30.99 on Kindle<\/a><\/p>\n Edible Economics<\/em>\u00a0by Ha-Joon Chang \u2013\u00a0\u00a30.99 on Kindle<\/a><\/p>\n Taxtopia<\/em>\u00a0by The Rebel Accountant \u2013\u00a0\u00a30.99 on Kindle<\/a><\/p>\n Glaciers melting faster than ever\u2026\u00a0\u2013 BBC<\/a><\/p>\n \u2026but Trump withdraws support for research that mentions \u2018climate\u2019 \u2013 Guardian<\/a><\/p>\n Expanding seaweed farms poses risks to marine life \u2013 The Conversation<\/a><\/p>\n EVs are 50% cheaper to run than a petrol car\u2026 \u2013 This Is Money<\/a><\/p>\n \u2026so what are the pros and cons of buying second-hand? \u2013 Independent<\/a><\/p>\n Rewilding sees animals rebound in Hackney Marshes \u2013 BBC<\/a><\/p>\n AI cracks superbug problem in two days that took scientists years \u2013 BBC<\/a><\/p>\n AI research tools for the financial sector \u2013 Herb Greenberg<\/a><\/p>\n BrAIn drAIn \u2013 The Intrinsic Perspective<\/a><\/p>\n Surveying which AI tool will win\u2026 \u2013 Spyglass<\/a><\/p>\n \u2026or is generative AI all a con anyway? \u2013 Where\u2019s Your Ed At<\/a><\/p>\n How I\u2019m preparing for the next four years \u2013 Ryan Holiday<\/a><\/p>\n Golfo del Gringo Loco \u2013 Daring Fireball<\/a><\/p>\n It was never going to be me \u2013 Epsilon Theory<\/a><\/p>\n It\u2019s time for Europe to stand up \u2013 Noahpinion<\/a><\/p>\n You can never go back \u2013 Garbage Day<\/a><\/p>\n The schadenfreude dilemma \u2013 Drezner\u2019s World<\/a><\/p>\n Career catfishing \u2013 Guardian<\/a><\/p>\n TFL reveals the costs and challenges of driverless tube trains \u2013 Ian Visits<\/a><\/p>\n A short history of cryptography, from the Spartans to the FBI \u2013 MIT Reader<\/a><\/p>\n Live to 100 and die totally happily [Videos]<\/em> \u2013 Men\u2019s Health<\/a><\/p>\n Bridget Jones\u2019 London property ladder \u2013 Standard<\/a><\/p>\n Will quantum computers disrupt critical infrastructure? \u2013 BBC<\/a><\/p>\n \u201cI love my kids but I regret having them\u201d<\/em> \u2013 Guardian<\/a><\/p>\n There goes my hero \u2013 A Wealth of Common Sense<\/a><\/p>\n \u201cWhat is this sovereign remedy? It is to recreate the European fabric, or as much of it as we can, and to provide it with a structure under which it can dwell in peace, safety and freedom. We must build a kind of United States of Europe. In this way only will hundreds of millions of toilers be able to regain the simple joys and hopes which make life worth living.\u201d Like these links? Subscribe<\/a> to get them every Friday. Note this article includes affiliate links, such as from Amazon<\/a> and Interactive Investor<\/a>.<\/em><\/p>\nYour vote counted<\/h3>\n
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