American hedge fund Saba Capital Management has launched an investment trust focused exchange traded fund.
The Saba Capital Investment Trusts UCITS ETF (UKIT) is an actively managed ETF that will invest in investment trusts trading at discounts to net asset value.
UKIT will be managed by Saba founder Boaz Weinstein and partner and portfolio manager Paul Kazarian.
Weinstein said: “The £250bn-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.
“We designed UKIT to help investors capitalise on this shifting landscape – empowering investors to profit from discounts to NAV, rather than suffer from them.”
Saba has become a well known name in the investment trust sector as an activist investor.
In the past year, a number of investment trusts have been under pressure from Saba, which first attempted to remove the boards of seven investment trusts in early 2025.
Saba’s latest target is the Edinburgh Worldwide Investment Trust – the company is trying to oust its board for the third time.
And in February Herald Investment Trust revealed it had raised concerns with Saba’s approach with the Financial Conduct Authority.
Weinstein added: “Through UKIT, individual investors can now gain exposure to our highest-conviction ideas in a single vehicle, while also supporting the long-term success of the UK trust market and benefitting from the record levels of share buybacks and shareholder-friendly deals currently reshaping the sector.”
tara.o’connor@ft.com
What’s your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com