Saba Capital Management has reached a deal with CQS Natural Resources Growth & Income Trust (CYN) that will see the £74m closed-end fund offer a 100% tender at net asset value, following a period of shareholder engagement led by the US activist hedge fund.
The agreement, announced in a press statement, marks the fifth success this year in Saba’s ongoing activist campaign targeting UK investment trusts trading at steep discounts to NAV.
Under the terms of the agreement — subject to shareholder approval — the London-listed trust will launch a tender offer for up to all of its issued share capital, allowing investors the option of a full cash exit at NAV. For those choosing to remain, CYN will implement a revised strategy that includes an 8% enhanced annual dividend and a 20-basis-point reduction in the management fee.
The offer will be open only to shareholders registered as of 6.00pm BST on 29 May 2025. Saba has committed to vote in favour of all resolutions and will tender its full holding, as per the agreement.
Saba’s founder and CIO Boaz Weinstein hailed the outcome as further evidence that “shareholder-friendly reform” in the UK investment trust sector is both viable and gaining traction.
“This agreement with CYN shows that when boards engage constructively, investors win,” said Weinstein. “Shareholders now have a clear choice: full liquidity at NAV, or the opportunity to remain invested in a more attractive vehicle with a higher yield and lower fees. It’s a genuine win-win.”
Weinstein noted that CYN is the fifth successful resolution among nine UK trust campaigns launched by Saba this year, with further activity expected.
White & Case LLP acted as legal adviser to Saba Capital in the transaction.
