ISS recommends Edinburgh Worldwide shareholders reject Saba's resolutions

(Sharecast News) - Edinburgh Worldwide Investment Trust said on Wednesday that independent voting adviser ISS has recommended that shareholders vote against all of Saba Capital Management's resolutions at the general meeting on 20 January. Saba, which owns just under 30% of EWIT, has called for the trust to oust its entire board - six directors - and replace them with three of its own US-based nominees.

EWIT chair Jonathan Simpson-Dent said: "For a second time within a year, independent voting adviser ISS has recommended that shareholders vote against all of Saba's resolutions. Shareholders should not be swayed by Saba misrepresenting the facts, ignoring the significant progress made following the implementation of the path for growth strategy and remaining silent on their ultimate objectives.

"If shareholders want to prevent this US hedge fund from taking control of the company on the cheap, it is critical that they vote against all of Saba's resolutions before the opportunity for doing so closes for many next week.

"We strongly encourage shareholders not to be complacent and remind everyone that Saba holds a larger shareholding and therefore more voting power this time. Shareholders must turn out in force in order to prevent Saba from taking control."

EWIT will be hosting a Q&A session on Friday to give shareholders the chance to ask Simpson-Dent any questions they may have about Saba's proposed resolutions.

The statement from EWIT came alongside an open letter from Saba, in which the US activist investor run by Boaz Weinstein once again requested the trust explain its "suspiciously timed" decision to slash its stake in Elon Musk's Space X.

Saba said: "We are writing to request that you provide the company's shareholders, as a matter of urgency, with full transparency regarding (1) your knowledge of Baillie Gifford's decision to materially reduce EWI's stake in SpaceX and (2) any connection between this sale and your decision to pursue a merger with the Baillie Gifford US Growth Trust.

"As the largest shareholder in the company, we are deeply concerned at the recent sell-down by Baillie Gifford of the company's stake in SpaceX - the crown jewel of the company's portfolio - just two months prior to SpaceX's scheduled revaluation, in a move that appears to defy commercial logic.

"We are particularly concerned that this sale was instead motivated by a desire on the part of both Baillie Gifford and you, the board, to facilitate a merger of the company with USA."

In December 2025, Baillie Gifford US Growth Trust announced that Saba had blocked its proposed merger with Edinburgh Worldwide.

The trust said it had been in active discussions about "a transformational merger opportunity that would result in both a continuation and refinement of the current investment strategy as well as a material cash exit opportunity for all shareholders".

However, at a meeting to sound out support for a deal, Saba Capital said it would not support it.

Baillie Gifford said at the time that while Saba is able to block the requisite shareholder approvals due to the size of its holding, it would nonetheless like to consult with shareholders more broadly on their views.

Saba has been very vocal about its disappointment with the EWIT share price. It has said in the past that the company has "consistently underperformed" across the one-, three-, and five-year periods and that its buyback activity over the past three years has fallen below the average for UK investment trusts executing buybacks over the same period.

Separately, Legal & General - which holds a 0.5% stake in EWIT - announced that it plans to vote against the resolutions put forward by Saba.

In a statement on Tuesday evening, it said: "Saba Capital's ask to appoint three nominees to replace the full existing board of Edinburgh Worldwide Investment Trust lacks sufficient detail regarding its future strategy for the trust, vital and financially material information for investors which would be expected, given the substantial restructure of the trust's board and handover of power to the nominees being proposed under resolutions 7-9."