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Edinburgh Worldwide Investment Trust PLC on Thursday confirmed that agitator Saba Capital Management LP has succeeded in ousting EWIT’s board, after a stand-off which has lasted more than a year. The Edinburgh-based investment firm is among several UK-listed trusts to have been caught in disputes with Saba, which has been accused of trying to take control of various companies in which it invests. EWIT shares were up 0.8% to 233.90 pence on Thursday afternoon in London, having risen 51% over the past year and fallen 35% over the past five years. Resolutions to re-elect EWIT’s existing board and Chair, Jonathan Simpson-Dent, did not pass, as votes cast were approximately 39% in favour and 61% against. Ahead of the meeting on Thursday morning, EWIT had released a statement saying it expected its own resolutions to fail, and Saba’s resolutions to pass, with the New York-based hedge fund holding a majority stake in EWIT. The trust noted: ‘A further US investment fund with a material holding has voted against the board. This brings the number of US investment fund shareholders not supporting the board to four, including Saba, collectively representing more than 40% of the company’s issued share capital.’ Votes in favour of Saba’s nominees, Gabriel Gliksberg, Jassen Trenkow and Michael Joseph, represented around 63% of EWIT’s voting rights, with the three directors taking over the board as of Thursday. Resolutions on the disapplication of pre-emption rights in connection with the issuance of new shares, and on EWIT’s authority to repurchase shares, also failed to pass. Had EWIT succeeded in getting its board re-elected, it had proposed a tender offer of 50% of its issued share capital at net asset value less costs. Jonathon Simpson-Dent called it ‘a disappointing day for long-standing shareholders’, and sees EWIT heading in the direction ‘of Saba’s plan to invest in other UK investment trusts’. ‘Retail and private wealth shareholders have been ground down by Saba’s repeated attacks. A significant number have already chosen to exit the company, replaced by institutions seeking to capture the upside potential in EWIT’s substantial SpaceX exposure. I expect many more retail and private wealth shareholders to follow. ‘This should represent a wake-up call for the investment trust sector and its regulators,’ Simpson-Dent added. The Association of Investment Companies on Thursday responded by backing Simpson-Dent’s view. AIC Chief Executive Richard Stone commented: ‘Thousands of shareholders will be disappointed by this announcement, having twice rejected directors nominated by Saba only to see them appointed to the board at the third attempt.’ Saba had attempted and failed to have its nominees elected earlier this year, and previously in 2025. Stone continued: ‘The new directors will need to bear in mind that non-Saba shareholders have resoundingly supported the existing mandate, turning out in record numbers to back the board on two previous occasions. ‘Before any changes of manager or mandate are even considered, shareholders should be given opportunities to exit, both before and after a potential SpaceX IPO.’ The AIC CEO called on Saba’s new board to make their intentions clear, adding: ‘We are seeking changes to the listing rules to address gaps that Saba has exposed, and it’s imperative that the government puts in place voting legislation to make sure all shareholders get the information and voting rights they are entitled to.’ Saba confirmed earlier this month that it would submit itself for consideration as EWIT’s new investment manager, should it succeed in replacing the board. For its part, Saba has accused EWIT’s directors of failing to address underperformance. Danni Hewson, head of financial analysis at AJ Bell, commented on Thursday: ‘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. Describing Saba as ’a dog with a bone‘, Hewson noted that EWIT ’has suffered an ebbing away of long-term shareholders over time and this has made the activist’s task of assuming control somewhat easier.‘ Hewson continued: ’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. ‘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.’ Hewson noted the broader implications for the broader investment sector, citing AJ Bell research, which in January indicated that Saba held stakes in more than 40 UK-listed trusts. ‘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,’ Hewson added. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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