Edinburgh Worldwide board 'disappointed' as it expects votes to go Saba's way

(Sharecast News) - Edinburgh Worldwide Investment Trust said on Thursday that it expected shareholders to vote against the reappointment of its five independent directors and approve three nominees proposed by Saba Capital Management at its annual general meeting, marking a significant win for the US activist after earlier attempts to gain control of UK-listed trusts had largely failed.

The FTSE 250 investment trust said final voting results would be announced later on Thursday after verification by an independent assessor.

Danni Hewson, AJ Bell head of financial analysis, said the result showed the investment trust sector had not seen off the threat from Saba.

"If the investment trust industry thought it had successfully batted off the challenge posed by activist Saba, then today's news is a rude awakening," Hewson said.

"Despite failing with its initial attempts at gaining control of several UK trusts, Saba has been like a dog with a bone and achieved a significant victory today at Edinburgh Worldwide.

"While it may have successfully fought off Saba's previous efforts - both last year and at the beginning of this year - the trust has suffered an ebbing away of long-term shareholders over time and this has made the activist's task of assuming control somewhat easier."

Based on the latest voting information, Edinburgh Worldwide expected there would be insufficient votes in favour of the resolutions to reappoint the independent directors standing for re-election.

Mungo Wilson did not stand for re-election after completing his nine-year tenure.

Subject to confirmation of the vote, Jonathan Simpson-Dent, Mary Gunn, Jane McCracken, Caroline Roxburgh, Gregory Eckersley and Wilson would cease to be directors at the end of the AGM.

The trust said Saba's three nominees, Gabriel Gliksberg, Jassen Trenkow and Michael Joseph, were expected to be appointed to the board by the required majority.

Hewson said the outcome followed an earlier setback for the incumbent board.

"The writing seemed to be on the wall after Saba and two other institutions voted down a tender offer proposal earlier this month which would have effectively wound the trust down before Boaz Weinstein's vehicle could take over," she said.

Edinburgh Worldwide said the expected outcome primarily reflected a material reduction in ownership by private wealth and retail shareholders, which it said followed "the reality of Saba's likely effective control of the company".

It said recent selling by those groups had largely come from previously engaged shareholders who had historically supported the board, reducing votes in favour of the incumbent directors.

The company also said a further US investment fund with a material holding had voted against the board, taking the number of US investment fund shareholders not supporting the board to four, including Saba.

Together, those shareholders represented more than 40% of the company's issued share capital.

Chair Jonathan Simpson-Dent described the expected outcome as "a disappointing day" for long-standing shareholders.

"This is a disappointing day for our long-standing shareholders who are set to lose exposure to this exciting mandate focused on next-generation technology, seemingly in favour of Saba's plan to invest in other UK investment trusts," he said.

Hewson said the timing of Saba's expected board appointments was particularly sensitive given Edinburgh Worldwide's exposure to SpaceX.

"The timing of Saba's victory is lent extra sensitivity by the looming market lift-off for Edinburgh Worldwide's biggest holding - Elon Musk rocket and satellite firm SpaceX.

"Saba's plan, once the blockbuster IPO happens, seems to be to liquidate this stake and turn the trust into a vehicle for investing in other undervalued UK investment trusts," she said.

Simpson-Dent said retail and private wealth shareholders had been "ground down by Saba's repeated attacks", adding that many had already sold their shares and been replaced by institutions seeking exposure to the trust's holding in SpaceX.

"This should represent a wake-up call for the investment trust sector and its regulators," he said.

Hewson said Saba's success was likely to unsettle the wider sector.

"Saba's win will create consternation in the boardrooms of other investment trusts.

"AJ Bell research published in January 2026 showed Saba has holdings in more than 40 UK-listed trusts," she said.

"The trust universe has been vulnerable thanks to persistent discounts to the value of underlying assets, uneven performance and a growing preference for passive over active funds.

"Saba's efforts, which largely began in 2025, were effective as a wake-up call for the industry.

"However, now it has won control of a trust, warnings about its short-termist and self-serving approach and the impact on the interests of individual investors will be put to the test."

Simpson-Dent said the board had remained focused on governance and performance since implementing its "path to growth" strategy 18 months ago, delivering net asset value returns of 44% and outperformance of 21% relative to its benchmark.

"I would like to thank shareholders for their engagement and support, as well as my fellow board members and the many other stakeholders, including the media, who have worked to highlight the risks associated with Saba's proposals and to encourage retail shareholder participation," Simpson-Dent said.

At 1039 BST, shares in Edinburgh Worldwide Investment Trust were up 0.86% at 234p.

Reporting by Josh White for Sharecast.com.

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