EWI returns outperform benchmark as Saba spat continues

(Sharecast News) - Edinburgh Worldwide Investment Trust released its full-year results on Monday, showing that share price gains and net asset value returns more than doubled their respective benchmarks over the 12 months to 31 October. EWIT, which for the past year has faced fierce criticism from outspoken 30% stakeholder Saba Capital Management over its strategy and competence of its board, reported that NAV per share increased 29.7% over the financial year, while its stock surged 30.2%.

The comparative S&P Global Small Cap Index total return was 12.8% in sterling terms, it said, with EWIT's outperformance helped by strong gains from its investments in SpaceX and drug developer Alnylam Pharmaceuticals.

Chair Jonathan Simpson-Dent said the company's strong results reflected "a more focused, resilient portfolio and the strength of Baillie Gifford's specialist expertise and primary access to early-stage, high-potential, investment opportunities in emerging companies operating at the frontiers of scientific, technological and process innovation".

The company, which is holding a general meeting on 20 January at which shareholders will vote on Saba's resolutions to oust its entire board, announced last week that independent voting adviser Glass Lewis recommended to vote against all of Saba's demands.

Commenting on the spat on Monday, Simpson-Dent said Saba's "unwelcome requisition [...] represents a clear threat to the company's independence, strategy and long-term value proposition".

He added: "I thank the hundreds of shareholders who joined an open Q&A meeting last Friday and encourage all shareholders who wish to protect their investment trust and its unique mandate to vote against all of Saba's resolutions before the rapidly approaching voting deadlines."

The stock was down 0.9% at 225.5p by 1635 GMT.