SVG Capital survives shareholder revolt at annual meeting

By Nishant Kumar and Carolyn Cohn

LONDON, May 1 (Reuters) - British investment trust SVG (Shenzhen: 300331.SZ - news) Capital (Other OTC: CGHC - news) survived an investor rebellion at its annual general meeting on Friday, when nearly 40 percent of votes were cast against its pay policy for top executives and the re-election of its chairman.

At last year's meeting just 5.5 percent of votes were cast against the election of Chairman Andrew Sykes and 1 percent against the pay policy, a SVG Capital statement showed.

The company, which was spun out of asset manager Schroders in 1996 as a fund-of-funds private equity investment trust, counts Coller Investment Management, Schroders (LSE: SDR.L - news) , Standard Life and Aviva (Other OTC: AIVAF - news) among its major shareholders.

But a number of investors, including top shareholder Coller, with a 23 percent stake, have been unhappy with management strategy and resolved to oppose the re-election of Chief Executive Lynn Fordham and Sykes at Friday's meeting, according to a Sky News report.

"SVG Capital has a diverse shareholder base and inevitably this brings some element of differing views and investment objectives," Sykes said in a statement following the meeting.

"One of the company's largest shareholders has been open about the fact that they were not supportive of the strategy that shareholders approved in 2012. The wider shareholder base is supportive of the strategy that management is following."

The company ran into opposition three years ago to a plan by the fund to spread its investments more widely rather than concentrating on the funds run by UK private equity firm Permira.

Votes on Friday against the remuneration report rose to 37.8 percent from 35 percent last year, while 31.8 percent of votes were against the re-election of Fordham, a drop from 33.5 percent last year. Rebel investors needed a majority to succeed.

"Standard Life Investments notes the high level of dissent recorded at today's AGM of SVG Capital Plc in respect of both members of the board and the company's remuneration arrangements," a spokeswoman said in a statement, adding it had voted against the remuneration report and re-election of the chairman.

"We look forward to continued engagement with the board in order that these matters of governance can be constructively and satisfactorily resolved for the benefit of SVG Capital's shareholders," the statement added.

A spokeswoman for Coller Capital declined to comment.

SVG Capital manages assets worth 1.2 billion pounds ($1.8 billion) with the shares trading down 0.5 percent at 497 pence on Friday, a near 19 percent discount to asset value as of April 30, data from investment trust trade body AIC showed. ($1 = 0.6565 pounds) (Editing by Greg Mahlich)