ASA Gold & Precious Metals Ltd. files proxy materials

TL;DR

ASA Gold & Precious Metals Ltd. filed proxy docs. Standard procedure.

AI Summary

ASA Gold & Precious Metals Ltd. filed a Definitive Additional Materials (DEFA14A) on March 25, 2024. This filing relates to proxy materials and indicates no fee was required for this submission. The company was formerly known as ASA Ltd and ASA Bermuda Ltd.

Why It Matters

This filing is a routine proxy statement, indicating the company is providing shareholders with information related to upcoming meetings or votes, which is standard corporate governance.

Risk Assessment

Risk Level: low — This is a routine DEFA14A filing for proxy materials, not indicating any unusual financial events or significant changes.

Key Players & Entities

• ASA Gold & Precious Metals Ltd (company) — Registrant
• ASA Ltd (company) — Former company name
• ASA Bermuda Ltd (company) — Former company name
• 0001999371-24-003902 (filing_id) — Accession Number

FAQ

Key Financial Figures

• $4.3b — over six decades of track record. The $4.3bn New York-based Saba has filed a lawsui
• $289m — four nominees to board directors of the $289m ASA Gold and Precious Metals Fund (ASA)

Filing Documents

• asa-defa14a_032224.htm (DEFA14A) — 29KB
• asadefa14a001.jpg (GRAPHIC) — 22KB
• 0001999371-24-003902.txt ( ) — 60KB

From the Filing

ADDITIONAL MATERIALS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 14A PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934 Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material Pursuant to §240.14a-12 ASA Gold and Precious Metals Limited (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): No fee required. Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a–6(i)(1) and 0–11. Fee paid previously with preliminary materials. 22 MAR 2024 Sasha Chen Saba takes on Merk’s gold CEF Activist firm looks to replace board due to trading discount Follow: Saba Capital Management has turned its attention to Merk Investments , this time attempting to take over a goldbug closed-end fund with over six decades of track record. The $4.3bn New York-based Saba has filed a lawsuit to terminate Merk Investments as a manager and install own slate of four nominees to board directors of the $289m ASA Gold and Precious Metals Fund (ASA). Since purchasing its initial shares last February, Saba now stands as the ASA’s largest shareholder with 16.9% shares, followed by Lazard with 13% and Morgan Stanley with 5.6%. Time stamps of critical events in solicitation Source: ASA Definitive Proxy Statement Saba is urging shareholders to vote for its own nominees including Ketu Desai, Frederic Gabriel, Paul Kazarian and Garry Khasidy, citing the need for “fresh ideas and perspectives to address the fund’s persistent trading discount.” Merk Investments founder Axel Merk described this act as “hostile and aggressive” to With Intelligence. From November 30, 2018 to November 30, 2023, ASA’s average discount to NAV was -14.8%. The fund saw trailing NAV returns of -3% against a NAV of -19.3% over one year and -10.1% against a NAV of -27.8% over three years, according to Morningstar Direct. In its official proxy statement, Saba asserted the current board also violated the 40-Act by adopting a “poison pill,” maintaining its nominees are highly qualified and will “send a strong message” to shareholders. Merk took issue with the assertion of qualifications, saying none of the nominees have experience managing a gold mining fund. He speculates Saba intends to name itself as advisor and change the fund’s mandate to a fixed income structure. ASA’s current board consists of Merk, William Donovan, Bruce Hansen, and Mary Joan Hoene. Merk is also one of the largest individual shareholders, with a personal holding of 0.65%. Merk said his firm reached out several times to Saba to facilitate discussions when Saba bought its first shares, but that the activist firm did not make any demands. “The only thing they said was that it becomes less likely to have a market-based exit from their position,” said Merk. “So, they didn’t say, ‘You’re doing something wrong and we want to change something.’ They continue to decline to talk to the board directly or to be more specific as to what they would like.” With Intelligence has learned Saba does intend to increase its position in size as long as the discount remains at current levels and plans to pursue activism as its position grows. Launched in 1958, ASA was originally founded in South Africa and then reincorporated in Bermuda in 2004. It now operates in the US under an SEC exemptive order and is managed by three PMs including Merk, James Holman and Peter Metis. Under the exemptive order, the fund has certain restrictions and operations anomalies, and Merk maintains the current board’s institutional knowledge is irreplaceable. Saba has had an active year, taking on both small and big name managers like Franklin , MFS, BlackRock , Kayne Anderson and others.

View Full Filing

View this DEFA14A filing on SEC EDGAR