Shareholders urged to decide on the future of Edinburgh Worldwide Investment Trust

Investors have an important say in the future of Edinburgh Worldwide Investment Trust being targeted by hedge fund Saba Capital.

Saba’s proposals to make changes at the trust and with the trust’s board have been put forward as ordinary resolutions for investors to vote on. These only require a simple majority, or more than 50% of votes cast, to pass at the upcoming Extraordinary General Meeting (EGM).

The hedge fund already holds approximately 30% of Edinburgh Worldwide and it will vote in favour of its proposals. That means other investors need to vote to make their voice heard, particularly if they don’t agree with Saba’s proposal.  

Investors owning shares in Edinburgh Worldwide need to look hard at what is being proposed and vote whether to support or reject Saba’s plans.

Why is Edinburgh Worldwide being targeted?

Saba believes the board of directors at Edinburgh Worldwide has not taken “decisive action” to improve shareholder returns.

Citing data to 26 November 2025, Saba says Edinburgh Worldwide’s net asset value return of -30.6% over the previous five years lagged the 33.6% positive return from the S&P Global Small Cap price index.

Who is Saba?

Saba Capital is a US hedge fund. It is classified as an ‘activist investor’ and has targeted various UK-listed investment trusts over the past year with the aim of pushing for a change in structure and the way they are run.

What is Saba asking shareholders to vote on?

A year ago, Saba tried to oust the board of Edinburgh Worldwide and replace them with two individuals – one nominated by Saba and another who is a Saba employee. That campaign failed, but it is back for a second time, calling for the entire board to be replaced by three independent directors.

Saba says decisions regarding the trust’s future, including the company’s manager (Baillie Gifford), would be made solely by these new, independent directors, if the EGM vote goes in its favour.

As part of its latest campaign against Edinburgh Worldwide, Saba blocked a proposed merger in December 2025 between the trust and Baillie Gifford US Growth Trust.

How has Edinburgh Worldwide responded to Saba’s remarks?

Edinburgh Worldwide has recommended its shareholders vote against Saba’s proposals. The board says Saba is attempting to seize control of the investment trust “to prioritise its own commercial interests”. It also questions the independence of the individuals nominated to join the board.

At the time of writing, Edinburgh Worldwide says Saba has not provided any information on how it might run the trust; whether it would convert it to open-ended status as per Saba’s campaign against Smithson Investment Trust; and whether it would change the strategy to buying stakes in third party investment trusts with large discounts as has been mooted in other Saba campaigns.

As part of its campaign, Saba has published one, three and five-year performance figures to support its argument for change, illustrating medium-term underperformance for the trust. Saba’s figures include a comparison against the FTSE All-Share index of UK shares, which has delivered a superior performance to Edinburgh Worldwide across each of the three periods.

Edinburgh Worldwide argues it is inappropriate to compare its performance against the FTSE All-Share index because it only invests in a handful of UK names, with the majority of its holdings being listed in the US or being privately-owned. Instead, it says the appropriate benchmark is the S&P Global Small Cap index.

Edinburgh Worldwide chair Jonathan Simpson-Dent admits the trust has disappointed on performance in the past but notes there has been an improvement following strategic changes made a year ago. In the 12 months to 26 November 2025, the trust achieved a 16.8% net asset value total return versus 2.7% from its benchmark S&P Global Small Cap index in pounds, according to data from Saba and Bloomberg.

In 2024, Edinburgh Worldwide undertook a review of its strategy and asset manager, which led to a shift in focus. The team changed in composition and structure, and the portfolio size was slimmed down from around 125 companies at the peak to a smaller range of 60 to 100 holdings. The trust also decided to allow companies bigger than $5 billion in the portfolio.

More recently, Saba has accused the trust of having poor governance, highlighting issues around disclosures. It also questioned why a stake in Elon Musk’s SpaceX was reduced, saying exposure to this business is the potential key reason why some investors hold shares in Edinburgh Worldwide.

In response to the criticisms, Edinburgh Worldwide chair Jonathan Simpson-Dent told AJ Bell that the position in SpaceX was trimmed back slightly for reasons of size and to free up cash to invest in other ideas.

“If we hadn’t trimmed the stake, SpaceX would now be over 20% of the portfolio,” he explained. The trust targets 25% maximum holdings in unquoted stocks, such as SpaceX. It can still hold them if the position exceeds 25% due to rising valuations, but it has a rule that says no more new unquoted positions can be opened once it hits this level.

When is the shareholder meeting happening?

The shareholder meeting to decide on the investment trust’s future is scheduled for 20 January. AJ Bell customers holding shares in Edinburgh Worldwide need to vote by 15 January.

Customers will have received all the necessary information on voting via secure messaging through the AJ Bell platform, with the message marked as ‘corporate action’.

How do investors vote?

AJ Bell customers can vote electronically. Relevant investors have been sent a message asking them to vote. Investors simply need to log into their account via the AJ Bell website, select ‘voting instruction’ from the account menu, review the shareholder meetings and choose to submit an instruction. They will be directed to a website managed by Broadbridge to complete their vote. Voting cannot be done via the AJ Bell app.

Why does voting matter?

Voting provides investors with the opportunity to have a direct impact on how an investment trust operates, which can ultimately influence its performance and their investment. Whether attending in person or submitting a vote electronically, engaging in AGMs (Annual General Meetings) and EGMs enables a shareholder to hold the company accountable and take part in its governance.