- Saba wins Edinburgh Worldwide AGM vote to appoint three directors to the trust’s board
- Investment trust industry had until now largely batted off the challenge from activist Saba
- 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
Danni Hewson, AJ Bell head of financial analysis, comments:
“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.
“Despite failing with its initial attempts at gaining control of several UK trusts, Saba has been like a dog with a bone and achieved a significant victory today at Edinburgh Worldwide. While it may have successfully fought off Saba’s previous efforts – both last year and at the beginning of this year – the trust has suffered an ebbing away of long-term shareholders over time and this has made the activist’s task of assuming control somewhat easier.
“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.
“Saba’s win will create consternation in the boardrooms of other investment trusts. AJ Bell research published in January 2026 showed Saba has holdings 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.”
