Analysts question logic of Middlefield's active ETF Saba solution

Losing benefits of trust structure

Middlefield Canadian Income trust’s (MCT) proposal for a rollover into an active ETF has drawn questions from sceptical analysts, who have cast doubt on its rationale.

Earlier this month, MCT said it intends to propose an option to offer liquidity to shareholders in a first-of-its kind solution for the UK that would see the rollover of an investment company into an actively managed UCITS ETF. The trust's decision came after intense activism from New York-based hedge fund Saba Capital, making it the second investment trust of the nine targeted by Boaz Weinstein's firm to propose some form of solution.   Saba liquidity push bears fruit with Middlefield Canadian Income to propose rollover into active ETF "A move into an actively managed ETF structur...