US activist investor Saba Capital has established a 6.3% position in North American Income Trust (NAIT ) as the shares trade at a wider-than-average 13% discount ahead of the return of fund manager Fran Radano next month.

Saba has bought holdings in many investment trusts, several of which face continuation votes that give it scope to press for discount-reducing measures, although the derivatives-only stake in NAIT was bought nearly four months after shareholders voted for the listed fund to continue for another three years.

The New York firm bought total return swaps, which carry voting rights that mean it could repeat its push for change as it did at both European Opportunities Trust (EOT ) – where the board made a big tender offer in January – and last month at Keystone Positive Change (KPC ), where Saba held 23%, when the Baillie Gifford managed trust said it would wind down.

Saba disclosed the position in NAIT after half-year results from the £460m trust referred to this year’s move from Abrdn to Janus Henderson, a cut in management fees and that introduction of a performance-related tender offer that its board made it ‘confident that all the ingredients are now in place to help improve the total returns going forward’.

In May, Susan Rice, the trust’s former chair, capped off a tough year-and-a-half for Abrdn, announcing the termination of its contract as it switched to Janus Henderson, where Radano was moving. Rice stepped down at the annual general meeting in June with the trust moving to Janus Henderson in August where it is co-managed by US fund manager Jeremiah Buckley.

Saba is not the only bargain hunter on the 3.8%-yielder’s share register with US value investors 1607 Capital Partners and Allspring Global Investments holding 5% and 4.3% respectively. The trust also has a strong UK retail following with wealth manager Rathbones and investment broker Hargreaves Lansdown the largest shareholders with stakes of 12% and 5.5%, according to Refinitiv data.

The interims showed that in its last phase of Abrdn management, the trust delivered an underlying return of 11.1% in the six months to 31 July, marginally beating the Russell 1000 Value index’s 11% and outperforming the newly adopted S&P High Yield Dividend Aristocrat index, which gained 9.8%.

Shareholders received a total return of 8.3%, which includes the 5.4p dividend and the positive impact of buying back its cheap shares.

Since Buckley took over on 1 August, the portfolio of dividend-paying stocks has made 2% for shareholders, beating the Russell 1000 Value’s 1.7%, but trailing the S&P High Yield Dividend Aristocrat’s 2.2%, in sterling terms, Morningstar data shows.

Longer-term performance is underwhelming, though, with a five-year total shareholder return of 26% compared to the S&P 500’s 97.8%. Investors could hope for better in future if the US stock market broadens its reliance on the Magnificent Seven technology giants.

The results showed Buckley has increased exposure to semiconductors and software stocks benefiting from increased spending on artificial intelligence. He also added to healthcare stocks that should be resilient in a slowdown but benefit from ongoing innovation in the biotech and medical devices sectors.

He increased his investment in real estate investment trusts too, which he said offered attractive dividend yields and a return to normal tenant occupancy.

These changes were funded by a reduction to the materials, financials and consumer staples sectors, which have proved less attractive following the market rotation to more interest rate-sensitive and defensive sectors.