Activist investor Saba Capital Management has launched an exchange-traded fund that offers exposure to discounted UK investment trusts
By Dan McEvoy
News
Boaz Weinstein, founder and chief investment officer of Saba Capital Management
Saba Capital Management (Saba), the New York-based activist hedge fund that has shaken the UK’s investment trust sector over the last year and a half, has launched a product enabling investors to buy into its strategy.
Saba, in partnership with exchange-traded fund (ETF) white-labeller HANetf, launched the Saba Capital Investment Trusts UCITS ETF (LON:UKIT).
This actively-managed ETF will hold UK-domiciled investment trusts trading at a discount to net asset value (NAV), similar to those that Saba has targeted since November 2024.
“Saba brings deep expertise in the investment trust and closed-end fund universe, with a long track record of identifying opportunities created by discounts to NAV and corporate actions within the sector,” said Hector McNeil, co-founder and co-CEO of HANetf.
As an activist investor, Saba’s strategy revolves around building a stake in discounted closed-ended funds and then pushing for corporate actions that will narrow the trust’s discount in the short term. This is known as closed-ended fund arbitrage.
The ETF will be managed by Saba’s founder and CIO Boaz Weinstein as well as partner and portfolio manager Paul Kazarian.
“The £250 billion-plus UK investment trust sector is undergoing a fundamental realignment, with renewed attention on narrowing discounts creating an ideal environment for a trust-focused active ETF,” said Weinstein. “We designed UKIT to help investors capitalise on this shifting landscape – empowering investors to profit from discounts to NAV, rather than suffer from them.”
Which investment trusts does Saba’s ETF hold?
As of 5 March, the top three non-cash holdings in Saba’s investment trust-focused ETF were IP Group PLC (LON:IPO), an investment company that invests in technologically and scientifically innovative businesses; biotech-focused investment trust Syncona (LON:SYNC); and private equity investment trust Harbourvest (LON:HVPE).
UKIT’s fourth-largest holding was Edinburgh Worldwide (LON:EWI), the growth-focused investment trust whose board Saba attempted to displace earlier this year, as well as at the start of 2025.
The ETF also holds Allianz Technology Trust (LON:ATT), in which Saba disclosed a 4.9% stake on 5 March, as well as Unite Group (LON:UTG), Pantheon International (LON:PIN), Henderson Smaller Companies (LON:HSL), Montanaro European Smaller Companies (LON:MTE), Polar Capital Technology (LON:PCT), Baillie Gifford Japan (LON:BGFD), Brown Advisory US Smaller Companies (LON:BASC), Bankers Investment Trust (LON:BNKR), Scottish American (LON:SAIN) and Schroder UK Mid Cap Fund (LON:SCP).
As of 5 March, 55% of UKIT’s assets were held in cash.
Hello! I could have sworn I’ve visited this website before but after going through a few of the articles I realized it’s new to me. Anyways, I’m definitely delighted I came across it and I’ll be bookmarking it and checking back often!
I every time used to read piece of writing in news papers but now as I am a user of web thus from now I am using net for posts, thanks to web.
It’s nearly impossible to find knowledgeable people on this subject, however, you seem like you know what you’re talking about! Thanks
Post writing is also a fun, if you be acquainted with then you can write or else it is complex to write.
Pretty! This was an incredibly wonderful post. Thank you for supplying these details.
It’s not my first time to go to see this web site, i am browsing this web page dailly and get nice data from here everyday.
Hello Dear, are you truly visiting this site on a regular basis, if so after that you will definitely obtain pleasant know-how.
Good post. I learn something totally new and challenging on websites I stumbleupon every day. It will always be helpful to read through content from other authors and practice a little something from their sites.
I just couldn’t depart your site prior to suggesting that I extremely loved the usual info an individual provide for your guests? Is gonna be again ceaselessly in order to check up on new posts
My brother suggested I might like this web site. He was totally right. This post actually made my day. You cann’t imagine just how much time I had spent for this info! Thanks!
I am really impressed with your writing skills and also with the layout on your weblog. Is this a paid theme or did you customize it yourself? Anyway keep up the nice quality writing, it is rare to see a great blog like this one today.
Great website. Lots of helpful information here. I am sending it to a few friends ans also sharing in delicious. And certainly, thank you for your sweat!
Thanks for your marvelous posting! I certainly enjoyed reading it, you’re a great author. I will make sure to bookmark your blog and will often come back from now on. I want to encourage you continue your great posts, have a nice weekend!
Hi, just wanted to tell you, I liked this blog post. It was helpful. Keep on posting!
Hi there to every one, the contents existing at this web site are actually remarkable for people experience, well, keep up the good work fellows.
You really make it seem so easy with your presentation but I find this matter to be really something which I think I would never understand. It seems too complex and very broad for me. I’m looking forward for your next post, I will try to get the hang of it!
I got this web site from my buddy who shared with me about this web page and now this time I am visiting this site and reading very informative articles at this time.