Saba requisitions Edinburgh Worldwide Investment Trust

This is the second time Saba have sought to remove EWIT’s independent board of directors after its failed attempt to requisite seven investment trusts earlier this year. Previously shareholders voted in favour of keeping the EWIT board of directors and rejected all proposals put forward by Saba.

Saba’s plans for the trust

This time Saba hasn’t disclosed its plans for the trust should shareholders vote in its favour other than to replace the current board of directors.

Saba previously planned to serve notice on the trust’s current managers, which would provide the opportunity to hire new managers that are more aligned with its views, potentially Saba themselves.

This could lead to a change in the trust’s investment mandate, including investment philosophy and process, where the trust invests, its risk level and fee structure. Investors should consider whether the trust would still meet their investment needs if it were under new management, and the investment mandate changed.

EWIT’s view

EWIT’s board recommends that shareholders vote against Saba’s proposal. They believe Saba’s new board of directors would not be truly independent and that the three nominated managers would have no experience of managing UK investment trusts or operating within UK regulatory frameworks.

They also believe the current trust offers investors a unique portfolio of disruptive and transformative companies including private companies such as SpaceX and PsiQuantum. Shareholders benefit from investment manager Baillie Gifford's specialist expertise and access to early-stage, high-potential, investment opportunities and this is at risk should Saba take control. Investors should be aware that investment in unquoted companies is higher risk and they can be considerably less liquid than those traded on established stock exchanges. Investing in smaller companies also adds risk.

EWIT’s board has already sought to address the trust’s previous period of weaker performance. In 2024 it undertook a comprehensive review and over the last 12 months with the trust has grown 16.2%* in net asset value (NAV) terms over one year compared to 6.0% for the trust’s benchmark. Past performance isn't a guide to future returns.

This information isn’t personal advice. We can’t advise on which way you should vote. If you’re unsure what to do, please seek advice. All investments can fall as well as rise in value, so you could get back less than you invested.

The date for the general meeting is expected to be announced before Christmas. Shareholders will then be able to vote following the instructions below.

How to give an instruction

You’ll be taken to a website managed by a third party called Broadridge to complete your instruction. HL is not responsible for the content on this website.

Full details on how to vote can be found here - AGMs and Shareholder Voting.