by Holly McKechnie, Investors Chronicle, October 9, 2025:
Following its unsuccessful bid earlier this year to take over seven investment trusts, US activist investor Saba Capital Management has renewed its efforts to create a collective vehicle to invest in trusts trading on discounts.
As reported by the Financial Times, the activist firm run by Boaz Weinstein (pictured) is seeking regulatory approval to establish the Saba Capital Investment Trusts ETF. It already operates a similar model in the US, with its $322mn (£240mn) Saba Closed-End Funds ETF (CEFS).
However, how effective this approach will be in the UK’s closed-end fund space is debatable. Saba’s first challenge will be whether or not it can raise fresh capital, Matthew Read, a senior analyst at QuotedData, said.
Simply moving its existing holdings into the new ETF is unlikely to be effective. “If there’s no new net demand, then you’re not going to get a benefit,” said Read.
The ETF structure itself could also prove problematic. For ETFs to operate effectively, the majority of the trust holdings need to be liquid.
There are also several activist investment trusts already employing similar strategies, including AVI Global (AGT) and MIGO Opportunities Trust (MIGO), operating in an arguably more suitable format.
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