Targeting value across UK investment trusts
Our Partner
Harness UK trust discount dynamics
Many UK investment trusts trade at discounts to their underlying NAV, creating opportunities for enhanced long-term returns through discount capture. The actively managed approach provides a disciplined way to access this structural feature of the UK investment trust market.
Specialist investment trust expertise
Saba Capital brings deep experience in analysing investment trust behaviour, discount movements, and relative value opportunities.
Diversified asset class exposure
The ETF provides diversified exposure to a wide range of UK-listed investment trusts with underlying holdings including global equities, credit, alternatives, and real assets.
Many UK investment trusts trade at discounts to their underlying NAV, creating opportunities for enhanced long-term returns through discount capture.
Active approach to specialist market
The investment trust market spans different sectors, asset classes and strategies. Active management can allow careful selection based on valuation, liquidity and manager quality, rather than simply owning the whole market.
Investment trusts can provide access to global shares, bonds, property, infrastructure and private companies. Active exposure can allow for diversification across asset classes and regions.
The investment team at Saba Capital Management, L.P. (”Saba”) has extensive experience investing in investment trusts and closed-ended funds and employs a combination of fundamental analysis (bottom-up), quantitative analysis and proprietary screening tools to select portfolio investments.
The ETF also employs fundamental analysis to identify investment opportunities with favourable attributes, taking account of factors such as discount to net asset value (NAV), relative discount to peers, liquidity of the investment trust and underlying assets, shareholder composition, and the assets under management (AUM) of the investment trust or closed-ended fund.
Additionally, the investment team evaluates industry dynamics and measures the strength of the investment manager’s business model and management skill. Portfolio construction decisions are evaluated and made by Saba’s investment team.
The ETF will have a total return focus and invest in investment trusts with diverse asset class exposures trading at attractive discounts to NAV. In seeking to maximize value, the ETF may invest in investment trusts that are deemed likely to benefit from active engagement by shareholders.
The investment manager may engage with the investment trusts on behalf of the ETF in relation to potential corporate actions, such as share buybacks, tender offers or any form of restructuring, which may assist in narrowing the discount to NAV.
Boaz Weinstein is the Founder and Chief Investment Officer of Saba Capital Management, L.P., a $6.8 billion (as of October 1) Registered Investment Advisor focused on credit relative value strategies, based in New York City. Mr. Weinstein founded Saba in 2009 as a lift-out of the Deutsche Bank proprietary credit trading group he started in 1998. At Saba, Mr. Weinstein leads a team of 94 professionals (as of October 1), with the senior members having worked together for more than a decade. In 2021, Risk.net named Saba as Hedge Fund of the Year. In addition, Mr. Weinstein is the Chief Investment Officer of Saba LT, LP. Previously, Mr. Weinstein worked at Deutsche Bank for eleven years, the last eight years as Managing Director (a title he achieved at age 27). Throughout his career at Deutsche Bank, Mr. Weinstein had dual responsibility for proprietary trading and market making. In 2008, Mr. Weinstein was promoted to Co-Head of Global Credit Trading, overseeing a group of 650 investment professionals. He was also a member of the Global Markets Executive Committee. Mr. Weinstein graduated from the University of Michigan, Ann Arbor, with a BA in Philosophy. He achieved the title of National Master in chess at age 16
Paul Kazarian joined Saba in March 2013. He is a Portfolio Manager who focuses on the closed-end fund strategy and exchange traded products, including ETF arbitrage. Mr. Kazarian serves on the Board of Directors of ASA Gold and Precious Metals Limited and is also Principal Executive Officer (ticker: ASA) and is also Principal Executive Officer of Saba Capital Income & Opportunities Fund (ticker: BRW) and Saba Capital Income and Opportunities Fund II (ticker: SABA). Mr. Kazarian holds a BA in Political Science from Bates College.
Saba Capital Investment Trusts UCITS ETF (UKIT) is an actively managed ETF that seeks to achieve capital appreciation by primarily investing in UK investment trusts.
Such investment trusts may provide exposure to public and private equities, fixed and floating rate government or corporate bonds, alternative asset classes, including private equity and venture capital, real estate through real estate investment trusts (REITs), cash and cash equivalents (such as bank deposits, certificates of deposit, commercial paper and floating rate notes) and commodities in a manner consistent with the UCITS Regulations and Central Bank requirements.
In particular, the ETF will invest in investment trusts domiciled in the UK, Guernsey, and Jersey. The ETF is actively managed by the expert team at Saba Capital Management, L.P. (”Saba”).
Key Risks
When you invest in ETFs your capital is fully at risk and may not get back the amount originally invested. Exchange rates can have a positive or negative effect on returns. The value of equities and equity-related securities can be affected by daily stock and currency market movements.
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Explore our expert-written monthly fund reports, periodic reviews, and key insights.
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Investment Manager
Saba Capital Management, L.P. (”Saba”) serves as the Investment Manager to the Saba Capital Investment Trusts UCITS ETF. Founded in 2009 by Boaz Weinstein, Saba is recognised for its expertise in credit, alternatives, and Investment Trust strategies. Mr. Weinstein previously co-led Deutsche Bank’s Global Credit Trading business, bringing significant experience in identifying relative value opportunities across complex markets. Today, Saba applies this analytical discipline to the UK Investment Trust landscape, focusing on discount behaviour, structural features, and long-term value potential. Saba’s strategy investing in closed-end funds and Investment Trusts earned recognition as Activist Hedge Fund Manager of the Year by Institutional Investor in 2023 and 2024¹.
¹The 21st Annual Hedge Fund Industry Award: 2024 Activist Hedge Fund Manager of the Year is open to hedge funds whose strategy relies primarily on activist investments. Fund strategies that qualify in this category include but are not limited to activist and event-driven instruments. Saba submitted information related to 2023 investment returns, performance track record, risk management, stability of investment team, as well as portfolio management. Winners for the 2024 Institutional Investor Awards were announced on May 1, 2024. More information on the 2024 Institutional Investor Awards and a full list of the winners is available here: https://www.institutionalinvestor.com/article/2d6anafxgowqfj0jskbnk/culture/here-are-the-winners-of-the-21st-annual-hedge-fund-industry-awards. 2023 Activist Hedge Fund Manager of the Year is open to hedge funds whose strategy relies primarily on activist investments. Fund strategies that qualify in this category include but are not limited to activist and event-driven instruments. Saba submitted information related to 2022 investment returns, performance track record, risk management, stability of investment team, as well as portfolio management. Winners for the 2023 Institutional Investor Awards were announced on May 11, 2023. More information on the 2023 Institutional Investor Awards and a full list of the winners is available here: https://www.institutionalinvestor.com/article/b8ynqlgnjb6y8q/Here-Are-the-Winners-of-the-20th-Annual-Hedge-Fund-Industry-Awards. These awards do not constitute an endorsement by the award provider and do not express an opinion or view on Saba’s ability to perform its duties as an investment adviser. Ratings are in no way indicative of an adviser’s future performance, which may vary.
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