Which investment trusts still have a Saba problem?

We look at the names still circled by the activist.

3rd June 2026 11:38

by Dave Baxter from interactive investor

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Investors could be forgiven a sense of fatigue when it comes to the Saba saga.

It has been around 18 months since the US activist launched a campaign to topple the boards at seven different investment trusts, and there have been plenty of twists and turns since then.

We have recently seen a flurry of fresh developments on this front, with some trusts appearing to get Saba off their shareholder register and others likely falling under the activist’s control. In the wake of that, it’s worth noting which names still have Saba to contend with and what might happen.

The targets

As our table shows, Baillie Gifford US Growth Ord (LSE:USA) still counts Saba as a major shareholder, with it having around 29% of voting rights on the trust as per the latest disclosures. 

The trust has already had plenty of run-ins with Saba: the board survived a vote to overthrow it and was later reinstated last year despite Saba opposition.

USA has delivered substantial returns in the last year and has exposure to some of the expected blockbuster initial public offerings (IPOs) of 2026. But it’s likely that some resolution will need to be reached.

Source: Winterflood.

Saba has eventually reached some sort of outcome with all the other seven trusts it originally targeted: most recently it succeeded in overthrowing the Edinburgh Worldwide Ord (LSE:EWI) board and sought to take over the investment portfolio, while Herald Ord (LSE:HRI) had to carry out a tender offer and join the Aberdeen stable, which has struck a standstill agreement with the activist. Herald will continue to exist in its original form.

We have seen activity for other Saba targets, too. Impax Environmental Markets Ord (LSE:IEM) carried out a tender offer that saw around 80% of the shares sold, with Saba then calling a vote for 17 June seeking to overthrow the board on the remaining entity. It appears the activist will use the assets it gains control of to invest more into discounted trusts.

Meanwhile, Schroder UK Mid Cap Ord (LSE:SCP), in which Saba had around a fifth of the voting rights according to the latest market disclosures, announced late last month that it would carry out a tender offer. Saba has agreed to tender its shares and commit to a standstill agreement for three years.

Such agreements have been common when Saba has exited a trust, and prevent the activist for agitating for change at a given fund, or set of funds, over a given period of time. It’s worth noting that Saba has standstill agreements with some BlackRock trusts and with Aberdeen, among others.

If we look at the remaining targets, there are a handful of smaller company funds, as well as names that are already in the progressing of winding down, such as Crystal Amber Ord (LSE:CRS) and SDCL Efficiency Income Trust plc. (LSE:SEIT).

Saba hasn’t shied away from buying into trusts with less liquid, “alternative” assets such as infrastructure and private equity, and it should arguably be harder for such funds to carry out measures such as tender offers. 

One way out is for a competitor to simply buy out a fund, as we recently saw with one of Saba’s investments, Life Science REIT Ord (LSE:LABS).

The discounts available do tend to be wider in such sectors: the average discount in the Association of Investment Companies’ (AIC) Renewable Energy Infrastructure grouping comes to around 27%, while that figure comes to 28% for the Private Equity sector.

It’s worth noting that, from the alternatives world, battery fund Gore Street Energy Storage Fund Ord (LSE:GSF) and private equity giant Pantheon International Ord (LSE:PIN) sit in the table.

As we have noted before, Saba’s presence on a shareholder register can lead to mixed outcomes for investors. 

It might lead a board to enact improvements, from share buybacks to negotiating lower investment management fees, and it might offer investors a way out of a discounted trust at close to net asset value (NAV).

But as we have seen with Edinburgh Worldwide, it can also mean that a trust might simply disappear in its current form.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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