Edinburgh Worldwide urges shareholders to oppose Saba's proposals

The board of Edinburgh Worldwide (EWIT) has issued a circular urging its shareholders to vote against proposals from New York-based activist investor Saba Capital.

On 27 November, Saba wrote to the board of Edinburgh Worldwide (LON:EWI) to requisition a general meeting with the intent of replacing the investment trust’s board with three independent directors that Saba has selected.

Saba later confirmed that its preferred directors would be:

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

• Gabi Gliksberg, founder and managing partner of ATG Capital Management;
• Michael Joseph, portfolio manager and deputy chief investment officer at Stansberry Asset Management and author of A Dollar for Fifty Cents: Proven Strategies to Outperform the Market with Closed-End Funds;
• Jassen Trenkow, a former finance and banking executive who previously held senior positions at Barclays and Goldman Sachs Asset Management. According to Trenkow’s LinkedIn profile, he was most recently chief operating officer at Allied Express Group.

The meeting has been scheduled for 20 January 2026.

On 23 December, EWIT issued a circular confirming the date of the meeting and urging shareholders to vote against Saba’s proposals.

“For the second time inside a year, Saba, a US hedge fund manager, has launched an assault on your investment trust by seeking to remove your entire independent Board and replace it with three US-based nominees of its own choosing, effectively handing control of your company to Saba,” said Jonathan Simpson-Dent, chair of Edinburgh Worldwide, in a letter attached to the circular.

Simpson-Dent also claimed that EWIT has attempted to engage constructively with Saba since shareholders voted down a similar attempt in February 2025, “proposing options that would have offered liquidity and choice to all shareholders”.

“Saba has been quick to reject all of these,” said Simpson-Dent.

Why is Saba trying to displace Edinburgh Worldwide’s board?

EWIT was among seven investment trusts in which Saba saw an opportunity to gain greater control in December 2024. The activist investor requisitioned general meetings at all seven during the opening months of 2025, with the aim of replacing the boards of directors with new appointments, including two of its own directors.

Saba cited persistent share price underperformance and alarming discounts to net asset value (NAV) in its attempt to displace the trusts’ boards.

All seven investment trusts voted against Saba, meaning its attempt was unsuccessful.

But Saba has now revived its interest, at least in Edinburgh Worldwide.

“We remain profoundly frustrated by the Board's prolonged inertia, especially given the decisive actions taken by the boards of several other UK investment trusts to increase share prices and narrow persistent discounts to NAV,” said Boaz Weinstein, founder and chief investment officer of Saba Capital, in the 27 November letter to Edinburgh Worldwide’s board.

“We will requisition a general meeting of the Company to remove the entire incumbent Board and, in its place, appoint a new board composed solely of qualified, independent directors who are committed to delivering long-term value for all shareholders,” Weinstein continued.

In a letter sent on 2 December, Simpson-Dent implied that Saba is acting in its own interests rather than those of EWIT’s shareholders more generally and that the hedge fund had not engaged with the board’s attempts to understand its objectives and propose a solution.

These solutions included a proposed merger with Baillie Gifford US Growth Trust (LON:USA), but Saba opposed the move. Given Saba owns 29% of USA shares and 30% of EWIT’s, the merger will not be able to proceed without its approval.

“Saba's lack of support suggests to us that their agenda is to take control of the Company for their own commercial gain at the expense of the remaining 70% of shareholders,” said Simpson-Dent.

Saba responded with a statement saying: “By pushing for a merger that benefits Baillie Gifford rather than shareholders, EWI’s Board has confirmed where its loyalties truly lie. Shareholders deserve a Board that puts them first – not another cosy deal that entrenches an unaccountable manager.”

AIC: it is vital that shareholders vote

When Saba attempted to replace the boards of Edinburgh Worldwide and six other investment trusts early this year, the proposals were defeated by surprisingly large numbers of shareholders turning out to exercise their shareholder voting rights.

The AIC has called for shareholders in Edinburgh Worldwide to once again ensure their voices are heard when Saba’s proposals are voted on.

“It is vital that shareholders vote their shares,” said Richard Stone, CEO of the AIC. “Saba’s proposals to replace the entire board of Edinburgh Worldwide Investment Trust could radically change the company and it is important that all shareholders’ voices are heard.”

Stone highlighted that shareholders can vote their shares via investment platforms like Hargreaves Lansdown, Interactive Investor and AJ Bell, or ask their financial adviser for help.

Shareholders voting through an investment platform will need to cast their votes ahead of the general meeting. The deadline to vote will vary depending on the platform, but EWIT has warned that some will have a deadline as early as 12 January 2026.

Information on how to vote and attend general meetings is available via the AIC website.