*

Weinstein wants to unseat managers at seven UK investment

trusts

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Saba says trusts' performance ranges from 'underwhelming'

to

'disastrous'

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Trusts' managers have urged investors to reject the

proposals

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Weinstein says his proposals have increased investor value

(Recasts with market context, adds quotes from paragraph 2)

By Nell Mackenzie and Sinead Cruise

LONDON, Jan 14 (Reuters) - U.S. activist investor Boaz

Weinstein called on British critics opposing plans to unseat

managers at seven underperforming UK investment trusts to stop

misleading investors who have lost "enormous value", describing

their criticism as "jingoistic".

Saba Capital Management, founded and run by Wall Street

veteran Weinstein, said last month it wanted to overhaul the

boards of seven close-ended investment trusts over performances

it said ranged from "underwhelming" to "disastrous".

"It's been described, almost in a jingoistic way, that some

American is coming in ... to take your precious fund away,"

Weinstein said on Tuesday in a presentation to elaborate on one

of the most ambitious activist campaigns seen in Britain for

years.

The trusts under scrutiny are Henderson Opportunities Trust

, Baillie Gifford US Growth Trust, CQS Natural

Resources Growth & Income, Edinburgh Worldwide

Investment Trust ( EWIIF ), Herald Investment Trust ( HDVXF ),

Keystone Positive Change and European Smaller Companies

Trust ( TEUUF )

All the managers concerned have urged investors to vote

against Saba's proposals. The trusts hold a range of UK assets

for a blend of retail and institutional investors.

Weinstein's comments come amid a period of stress for UK

assets, with Britain's stock market losing constituents to

overseas rivals and UK government bond yields hitting multi-year

highs this month on worries about inflation and weak economic

growth prospects relative to other major economies.

That has sparked concern among some domestic investors that

prized UK assets will be scooped up cheaply by international

opportunists keen to exploit volatility in the market.

'COSTING MOM AND POP'

Weinstein dismissed the concerns, saying his proposals had

already made investors millions of pounds through narrower

discounts reflected in their market values.

"These discounts are not some ephemeral thing. These are

costing Mom and Pop - the main investors in these funds -

enormous amounts of money year in and year out", Weinstein said.

"We are on the same side as you."

Saba's plans, which include nominating Weinstein to the

board of one fund and one of its lead portfolio managers, Paul

Kazarian, to the other six funds' boards, have faced resistance.

On Tuesday, managers of Herald Investment Trust ( HDVXF ) raised

concerns that Weinstein could destroy shareholder value if he

succeeded in his attempt to gain effective control of the trust.

Weinstein, whose hedge fund manages around $5 billion in

assets and currently owns roughly 23% to 30% of each UK trust

Saba is targeting, said he wanted to purchase even more British

assets.

Saba's activist vehicle, the Saba CEF Opportunities Fund,

had a return on investment of just over 24% in 2024 as of Dec.

13, an HSBC ( HSBC ) research note seen by Reuters said.

Weinstein said his firm planned to hire additional people in

London, if investors voted in favour of his plan.

($1 = 0.8201 pounds)

(Reporting by Nell Mackenzie and Sinead Cruise, editing by

Alexander Smith and Emelia Sithole-Matarise)