Saba Capital Management, L.P. (together with certain of its affiliates, “Saba” or “we”), which owns approximately 20.9% of Herald Investment Trust PLC (HRI:LSE) (“HRI” or the “Trust”), today issued the following statement from Founder and Chief Investment Officer Boaz Weinstein regarding misleading statements included in HRI’s Circular for the Requisitioned General Meeting that is scheduled for 22 January 2025:

“While Katie Potts has delivered strong returns over most of her three-decade tenure managing HRI, we’re now in 2025 and the Board must be held accountable for the Trust’s exceptionally poor returns during the last three years. Despite HRI beginning 2024 with its largest position in Super Micro Computer – a company that experienced a huge surge, rising more than 300% – the Trust significantly underperformed its benchmark. This underperformance is attributed to Ms. Potts’s mismanagement of both the Super Micro Computer position and the overall portfolio.

In stark contrast to the Saba Closed-End Funds ETF (“CEFS”)1 delivering a 46.0% gain over the last three years,2 HRI posted a 9.7% NAV loss. It is therefore unsurprising that HRI has resorted to baseless attacks on Saba’s track record as well as inaccurate claims about our nominees’ independence and their plans to deliver substantial liquidity and stronger long-term returns. The reality is that CEFS has outperformed HRI over every relevant time period since its launch in 2017. Given our 20.9% ownership of HRI (compared to the current Board holding under 0.05%), it is absurd to suggest that we would favour a fire-sale of the very assets in which we are the single-largest shareholder. We fear the recent progress made on the narrowing of the discount will be reversed if shareholders do not support Saba’s campaign to reconstitute the Board with new directors who will truly mind the gap.”

Net Asset Value (“NAV”) Return

Ticker

CEFS Inception

(21 March 2017)

5-Year

3-Year

1-Year

HRI

123.0%

48.5%

-9.7%

19.7%

CEFS

128.7%

79.1%

46.0%

28.8%

Source: Bloomberg. Data as of market close on 13 December 2024, prior to the launch of Saba’s campaign to deliver value to shareholders of seven investment trusts (the “Trusts”).

***

As a reminder, Saba has requisitioned General Meetings of seven Trusts to provide shareholders the opportunity to vote on resolutions to remove the Trusts’ existing directors and appoint highly qualified directors to replace them.3,4 Saba is convening the General Meetings because we believe the current Boards of Directors and investment managers have failed to perform versus their benchmarks and have, therefore, required Saba’s investment to narrow the deep trading discounts to NAV and deliver returns for shareholders. Visit www.mindthegap-uktrusts.com to learn more.

***

About Saba

Saba Capital Management, L.P. is a global alternative asset management firm that seeks to deliver superior risk-adjusted returns for a diverse group of clients. Founded in 2009 by Boaz Weinstein, Saba is a pioneer of credit relative value strategies and capital structure arbitrage. Saba has offices in New York City and London. Learn more at www.sabacapital.com.

DISCLAIMER

Saba Capital Management, L.P. (“Saba”) is publishing this announcement solely for the information of other shareholders in each of Baillie Gifford US Growth Trust PLC (USA:LSE), CQS Natural Resources Growth & Income PLC (CYN:LSE), Edinburgh Worldwide Investment Trust PLC (EWI:LSE), European Smaller Companies Trust PLC (ESCT:LSE), Henderson Opportunities Trust PLC (HOT:LSE), Herald Investment Trust PLC (HRI:LSE) and Keystone Positive Change Investment Trust PLC (KPC:LSE) (the “Trusts”). This announcement is not intended to be and does not constitute or contain any investment recommendation as defined by Regulation (EU) No 596/2014 (as it forms part of the domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018). No information in this announcement should be construed as recommending or suggesting an investment strategy. Nothing in this announcement or in any related materials is a statement of or indicates or implies any specific or probable value outcome in any particular circumstance. This announcement is provided merely for general informational purposes and is not intended to be, nor should it be construed as (1) investment, financial, tax or legal advice, or (2) a recommendation to buy, sell or hold any security or other investment, or to pursue any investment style or strategy. Neither the information nor any opinion contained in this announcement constitutes an inducement or offer to purchase or sell or a solicitation of an offer to purchase or sell any securities or other investments in the Trusts or any other trust by Saba or any of its affiliates in any jurisdiction. This announcement does not consider the investment objective, financial situation, suitability or the particular need or circumstances of any specific individual who may access or review this announcement and may not be taken as advice on the merits of any investment decision. This announcement is not intended to provide the sole basis for evaluation of, and does not purport to contain all information that may be required with respect to, any potential investment in the Trusts. Any person who is in any doubt about the matters to which this announcement relates should consult an authorised financial adviser or other person authorised under the UK Financial Services and Markets Act 2000. To the best of Saba’s ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources that Saba believes to be accurate and reliable. However, such information is presented “as is”, without warranty of any kind, whether express or implied, and Saba has not independently verified the data contained therein. All expressions of opinion are subject to change without notice, and Saba does not undertake to update or supplement any of the information, analysis and opinion contained herein.

The reference herein to CEFS (and Saba as its portfolio manager) is solely provided for context in discussing the proposals related to the Trusts and is not intended to be, nor is it, an offer to sell interests of that fund or any other Saba-managed or subadvised vehicle.

Saba may continue transacting in the shares and securities of the Trusts, and/or derivatives referenced to them (which may include those providing long and short economic exposure) for an indefinite period following the date of this announcement and may increase or decrease its interests in such shares, securities and/or derivatives at any time.

FORWARD LOOKING STATEMENTS

This announcement contains certain forward-looking statements and information that are based on Saba’s beliefs, as well as assumptions made by, and information currently available to, Saba. These statements include, but are not limited to, statements about strategies, plans, objectives, expectations, intentions, expenditures and assumptions and other statements that are not historical facts. When used herein, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and “project” and similar expressions (or their negative) are intended to identify forward-looking statements. These statements reflect Saba’s current views with respect to future events, are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Further, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual results, performance or achievements may vary materially and adversely from those described herein. There is no assurance or guarantee with respect to the prices at which any securities of the Trusts or any other trust will trade, and such securities may not trade at prices that may be implied herein. Any estimates, projections or potential impact of the opportunities identified by Saba herein are based on assumptions that Saba believes to be reasonable as of the date hereof, but there can be no assurance or guarantee that actual results or performance will not differ, and such differences may be material and adverse. No representation or warranty, express or implied, is given by Saba or any of its officers, employees or agents as to the achievement or reasonableness of, and no reliance should be placed on, any projections, estimates, forecasts, targets, prospects or returns contained herein. Neither Saba nor any of its directors, officers, employees, advisers or representatives shall have any liability whatsoever (for negligence or misrepresentation or in tort or under contract or otherwise) for any loss howsoever arising from any use of information presented in this announcement or otherwise arising in connection with this announcement. Any historical financial information, projections, estimates, forecasts, targets, prospects or returns contained herein are not necessarily a reliable indicator of future performance. Nothing in this announcement should be relied upon as a promise or representation as to the future. Nothing in this announcement should be considered as a profit forecast.

PERMITTED RECIPIENTS

In relation to the United Kingdom, this announcement is being issued only to, and is directed only at, (i) investment professionals specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”), (ii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order and (iii) persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities of the Trusts or any member of their respective groups may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “Permitted Recipients”). Persons who are not Permitted Recipients must not act or rely on the information contained in this announcement.

DISTRIBUTION

Not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of that jurisdiction. The distribution of this announcement in certain countries may be restricted by law and persons who access it are required to inform themselves and to comply with any such restrictions. Saba disclaims all responsibility where persons access this announcement in breach of any law or regulation in the country of which that person is a citizen or in which that person is residing or is domiciled.

__________________________ 1 CEFS invests in discounted U.S. closed-end funds, and if shareholders pass our resolutions and Saba is appointed as investment manager in due course, we intend for HRI to invest in discounted U.K. investment trusts using the same investment process. 2 Past performance is no guarantee of future results. Any information pertaining to CEFS is for illustrative purposes only and is in response to HRI’s previous statements with respect to Saba’s track record. This communication does not constitute an offer to sell or a solicitation of an offer to buy interests in CEFS. 3 The seven Trusts are the Baillie Gifford US Growth Trust PLC (USA:LSE), CQS Natural Resources Growth & Income PLC (CYN:LSE), Edinburgh Worldwide Investment Trust PLC (EWI:LSE), European Smaller Companies Trust PLC (ESCT:LSE), Henderson Opportunities Trust PLC (HOT:LSE), Herald Investment Trust PLC (HRI:LSE) and Keystone Positive Change Investment Trust PLC (KPC:LSE). 4 For USA, there will be a third resolution to reduce the minimum permitted board size from three to two directors.

Investor Contact Alliance Advisors Timothy Marshall / Adam Riches, 0800-102-6570 saba@allianceadvisors.com

Media Contact Longacre Square Partners Charlotte Kiaie / Kate Sylvester, +1-646-386-0091 ckiaie@longacresquare.com / ksylvester@longacresquare.com

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