NY hedge fund Saba agrees tender offer with trust – Daily Business

New York fund Saba Capital Management has secured another agreement with a UK trust as part of a campaign to reform the sector.

CQS Natural Resources Growth and Income Trust has proposed a tender offer of up to 100% of its shares following talks with activist investor Saba Capital.

Saba recently made unsuccessful attempts to seize control of seven trusts, including two managed by Edinburgh-based Baillie Gifford.

The board of European Smaller Companies Trust agreed to tender a significant stake and now CQS has offered its investors a choice between remaining invested, with an enhanced dividend and lower management fees, or exiting through the tender offer.

Following the tender offer and subject to the passing of the resolutions, the trust will adopt an enhanced annual dividend of approximately 8% and reduce its investment management fee by 20 basis points.

Boaz Weinstein, founder and chief investment officer of Saba, commented: “Today’s agreement with CYN highlights that meaningful, shareholder-friendly reform in the UK trust sector is not only possible—it’s happening. When boards engage constructively, investors win.

“This outcome gives CYN shareholders a clear choice: full liquidity at NAV or the opportunity to stay invested in a trust with a higher dividend and a reduced management fee. It’s a true win-win.

“CYN marks the fifth successful outcome among Saba’s nine UK campaigns in 2025, reinforcing the momentum for change across the sector. We’re proud to drive this transformation and remain committed to securing similar value-enhancing results for shareholders industry-wide.”

White & Case is acting as legal adviser to Saba Capital Management.