Baillie Gifford: board recommends shareholders take no action

Baillie Gifford-managed Edinburgh Worldwide Investment Trust (LSE:EWI) has received a new proposal from US activist investor Saba Capital, which is seeking to remove the entire board and replace it with independent directors. Saba, led by Boaz Weinstein, argues that the board has failed to deliver value for shareholders and has underperformed relative to benchmarks and peers over multiple periods. The firm has requested a shareholder vote to implement the change, citing strategic reform and improved performance.

In response, EWI’s chair, Jonathan Simpson-Dent, emphasized the board’s progress over the past year, including a 17.5% net asset value (NAV) return and a managed discount of 5.6%, significantly narrower than the peer average. He stated that the board remains open to dialogue but firmly opposes the complete replacement of the board, calling the proposal ambiguous and unnecessary.

Saba, which holds a significant stake in EWI, has previously attempted to oust the board and continues to exert pressure on several Baillie Gifford-managed trusts. Analysts suggest that Saba’s influence and investor fatigue could impact the outcome of the upcoming vote.