Shareholders in Edinburgh Worldwide Investment Trust have thrown out an attempt by Saba Capital Management to oust its board.

Excluding shares held by Saba, shareholders representing 92.7% of the shares voted rejected Saba’s proposals.

Of the total votes cast, 53.2% of shares were voted against Saba’s resolutions, in line with the recommendation of the independent board.

Shareholders representing over 70% of the total issued share capital voted on the resolutions, a record shareholder turnout.

This exceeded the turnout at the requisitioned general meeting held last February when the New York hedge fund, led by Boaz Weinstein, made its first attempt to remove the board.

EWIT said this level of shareholder participation in the vote was supported by a high level of engagement by retail shareholders who hold their shares through digital platforms.

The vote was supervised by Civica Election Services, the independent assessor.

Jonathan Simpson-Dent, chair of Edinburgh Worldwide Investment Trust, said: “For the second time in less than a year, Edinburgh Worldwide’s shareholders have voted decisively to reject Saba’s proposal to install its own nominees to the board and the uncertainty that would have entailed.

“Shareholders have clearly stated their preference for EWIT’s unique and differentiated mandate, investing in some of the world’s most exciting and transformative companies.

“The board is resolutely focused on building momentum through the Path for Growth strategy which has delivered strong returns for shareholders since its implementation.

“Saba remains our largest shareholder and we will continue to seek constructive engagement with them to develop potential solutions that allow us to move forward.

“Following a year of significant and costly distraction, we are ready to return our full attention to our primary purpose: investing in innovation, transformation, and exceptional potential in a way that respects the clear wishes expressed by the majority of shareholders both last February and again today.

“I would like to thank shareholders for their strong engagement, rigorous scrutiny, and continued support for Edinburgh Worldwide over the last 12 months.”

Shareholder meeting

About 40 shareholders and advisers attended the meeting today at the offices of Baillie Gifford in Edinburgh.

Mr Simpson-Dent opened by welcoming shareholders and, referencing last year’s meeting, stated: “Here we are again.”

He told shareholders: “Saba’s campaign has never been about this board, it has been about control.

“Despite our repeated requests for clarity on their objectives Saba has never been forthcoming.

“We believe their intentions have not changed which is to take control of this company and prioritise its own commercial interests, including appointing itself as investment manager and changing the investment strategy.

“This would clearly have dramatic implications for all our shareholders who would no longer be invested in a vehicle designed to provide exposure to a unique global portfolio of disruptive and transformative companies positioned for long term growth.”

He added: “We are extremely disappointed and concerned by the way Saba has run its campaign, regularly making false or misleading statements about the company and individuals to influence shareholders’ perceptions. I have raised these concerns directly with the FCA.”

Mr Simpson-Dent invited Saba or its representatives to make a statement but there was no response from the floor.

In response to three questions filed online, he said the trust had delivered progress and “the job of the board is to make sure that momentum continues.”

The board had approached Saba about solutions to its concerns and also representation on the board but it was not a topic they wanted to engage on.

He said that he hoped Saba would listen to and respect the voice of shareholders.

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