Edinburgh Worldwide Investment Trust (EWIT) has formally called on the UK’s Financial Conduct Authority (FCA) for intervention as tensions escalate with New York-based activist hedge fund Saba Capital Management, according to a report by The Times.
EWIT’s chairman, Jonathan Simpson-Dent, argued that Saba’s push to replace the trust’s entire board represents an attempt by a minority shareholder to “seize the company” from other stakeholders. This marks the second such challenge in 12 months; in February 2025, 63.8% of votes rejected Saba’s board-replacement proposals.
The trust has criticised Saba for statements it says contain “material inaccuracies” and “unfounded assertions of governance failures,” while Saba has accused EWIT of misleading shareholders about the activist campaign. Simpson-Dent has urged the FCA to review rules allowing minority shareholders to nominate an entirely new board without oversight from a nomination committee, recommending enhanced disclosure requirements for such proposals.
In a statement, Saba, which currently owns 30% of EWIT, said: “Is EWI suggesting that the FCA should override the democratic will of shareholders? Shareholders’ right to requisition special meetings and nominate directors is essential to ensuring that the boards of investment trusts, such as EWI, are held accountable for their underperformance and failure to maximise value for shareholders.”
Saba has also stressed it is nominating independent and qualified directors for election by all shareholders.
“The nominees we put forth are fully independent, according to the AIC Corporate Governance Code.”
