The Association of Investment Companies has issued a fresh appeal to shareholders of Edinburgh Worldwide Investment Trust (EWIT), calling on them to oppose a renewed attempt by Saba Capital Management to seize control of the trust’s board, according to a report by the Herald.
The intervention marks the latest development in an ongoing battle between the activist hedge fund and the Edinburgh-based investment vehicle, which is managed by Baillie Gifford. Previous efforts by Saba to replace the board were rejected by shareholders in both early 2025 and again in January 2026.
However, momentum may now be shifting. EWIT’s board recently failed to win sufficient backing for a proposed tender offer, prompting chairman Jonathan Simpson-Dent to warn that there is now a significant risk Saba could succeed in installing its own directors at the upcoming annual general meeting on 30 April. Such an outcome, he cautioned, could result in a change of manager and a substantial overhaul of the trust’s investment strategy.
The board indicated that opposition to its tender offer was driven largely by Saba and a small number of other institutional investors. In response, Saba intensified its criticism of the trust’s leadership, arguing that the current board is disconnected from shareholder sentiment.
Saba, which previously disclosed a stake of just over 30% in the trust, is seeking to appoint three directors of its choosing as part of its campaign to reshape the vehicle.
Against this backdrop, the AIC has stressed the importance of the forthcoming vote, describing it as ‘make or break’ for the trust’s future direction. Chief executive Richard Stone urged investors who wish to preserve EWIT’s current structure to support all board resolutions, including the re-election of existing directors, and to reject Saba’s nominees.
He also highlighted the unusually high level of shareholder participation required to counter the activist’s influence, noting that turnout may need to approach 75% for the incumbent board to prevail. With multiple votes already held on the issue, he emphasised that each shareholder decision will be critical.
More broadly, Stone criticised the nature of the campaign, suggesting it goes beyond typical shareholder activism and raises questions about governance standards. He called for potential changes to listing rules to address conflicts of interest and strengthen protections for investors.
