In this episode, our director of content, investment trusts Milosz Papst discusses the recent campaign of Saba Capital targeting seven UK-listed investment trusts. He discusses Saba’s plan with respect to removing the existing board members, introducing its own proposed directors, as well as the potential future changes in investment mandates of these trusts. He highlights that Saba will likely favour a plain opportunistic arbitrage strategy to exploit the discounts to NAV among UK-listed investment trusts (by replicating the strategy of a US fund it manages, the Saba Closed-End Funds ETF), coupled with growing its own assets under management and fee income, as opposed to providing shareholders with a truly differentiated value proposition tailored to each of these trusts. He also outlines key flaws of Saba’s proposal, including risks to corporate governance, the lack of important details related to the liquidity events, change in mandate and protection of the rights of minority shareholders, as well as the biased narrative it is presenting.***********************************************************About ‘Uncovering Trusts’'Uncovering Trusts': is a podcast run by Edison analysts released every two weeks. Subscribe to hear analyst interviews on how investment trusts maximise returns while managing risks for investors.About Edison:Edison is a content-led IR business. We believe quality investment content should inform all investors, not just brokers. Our mission: engage and build bigger, better-informed investor audiences for our clients.Edison covers 50+ investment trusts, read about them here: https://www.edisongroup.com/equities/investment-companies/

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“What did the council decide on item 42?” — answered with the speaker and the moment.

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