From Morningstar: 2025-05-06 11:00:00

The UK-listed investment trust Middlefield Canadian Income (MCT) is switching to an ETF structure following pressure from Saba Capital Management. Shareholders voted against Saba’s proposals earlier this year. The ETF will be established by August 2025, offering an uncapped cash exit option. The trust’s holdings will focus on Canadian and US large cap businesses.

By transitioning to an ETF, Middlefield Canadian Income aims to address liquidity issues and offer a cost-effective vehicle with a lower total expense ratio. The trust’s management remains confident in its investment proposition but acknowledges the need to improve liquidity and reduce the discount to NAV. The trust currently holds 30 stocks, with Enbridge, Royal Bank of Canada, and Tourmaline Oil Corp as top holdings.

Middlefield has experience with ETF conversions, having successfully transitioned several Canadian closed-end funds into ETFs in the past. Saba Capital Management withdrew its requisition notice after discussions, agreeing that the ETF structure would address liquidity and discount issues. The upcoming ETF will offer a similar investment strategy and be managed by the existing team of Dean Orrico and Rob Lauzon.



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