The chair of the Baillie Gifford-managed £860 million Edinburgh Worldwide Investment Trust plc (EWIT) has warned that the UK’s entire £261 billion investment trust sector is at risk from activists after New York hedge fund Saba Capital succeeded in replacing the entire board at EWIT on Thursday.
Enough shareholders in Edinburgh Worldwide voted on Thursday for Saba Capital’s plan to oust Jonathan Simpson-Dent and five other board members and to install three Saba-backed board nominees, Gabriel Gliksberg, Jassen Trenkow and Michael Joseph.
Edinburgh Worldwide’s largest shareholding is a massive investment in SpaceX — roughly 20% of its portfolio. The fund said its net asset value (NAV) per share increased by 29.7% and share price by 30.2% in the year to October 31, 2025. The fund’s comparative index, the S&P Global Small Cap Index total return, increased by 12.8%.
Saba, which says it is the largest shareholder of Edinburgh Worldwide, now plans to put itself forward as the next manager of the £860 million fund.
Edinburgh Worldwide chair Jonathan Simpson-Dent said that unless regulation is tightened by the UK’s London-based Financial Conduct Authority (FCA) against attacks by activists then “I think other trusts will follow.”
Simpson-Dent told EWIT’s AGM at Baillie Gifford’s Edinburgh headquarters: “This should represent a wake up call for the investment trust sector and its regulator.”
The EWIT chair said after the meeting he hopes regulators “get hold” of the threat and that investment trusts — closed end funds — can survive.
Much of the UK’s investment trust sector is managed by investment firms headquartered in Scotland, including Baillie Gifford and Aberdeen.
Before the AGM, Simpson-Dent said: “This is a disappointing day for our long-standing shareholders who are set to lose exposure to this exciting mandate focused on next-generation technology, seemingly in favour of Saba’s plan to invest in other UK investment trusts.
“Retail and private wealth shareholders have been ground down by Saba’s repeated attacks. A significant number have already chosen to exit the company, replaced by institutions seeking to capture the upside potential in EWIT’s substantial SpaceX exposure.
“I expect many more retail and private wealth shareholders to follow …
“Throughout the period since the implementation of our path to growth strategy 18 months ago, the board has maintained its focus on governance and performance, delivering strong NAV returns of 44% and a 21% outperformance relative to its benchmark.
“I would like to thank shareholders for their engagement and support, as well as my fellow Board members and the many other stakeholders, including the media, who have worked to highlight the risks associated with Saba’s proposals and to encourage retail shareholder participation.”
Simpson-Dent, Mary Gunn, Jane McCracken, Caroline Roxburgh, Gregory Eckersley and Mungo Wilson ceased to be directors of Edinburgh Worldwide with effect from the end of the AGM.
Edinburgh Worldwide invests in a portfolio of publicly traded and private businesses “operating at frontiers of technological innovation and transformation.” The fund is managed by Douglas Brodie, Svetlana Viteva and Luke Ward.
Apart from SpaceX, EWIT’s other major shareholdings include PsiQuantum, Alnylam Pharmaceuticals, Axon Enterprise, Twist Bioscience, Xometry, AeroVironment, JFrog and American Superconductor Corp.
Richard Stone, CEO of the Association of Investment Companies (AIC), said: “Thousands of shareholders will be disappointed by this announcement, having twice rejected directors nominated by Saba only to see them appointed to the board at the third attempt.
“The new board of Edinburgh Worldwide has important legal and regulatory responsibilities to act independently and in the interests of all shareholders. There will be intense scrutiny of their actions and we expect them to follow a proper process if seeking to change the manager or the mandate.
“The new directors will need to bear in mind that non-Saba shareholders have resoundingly supported the existing mandate, turning out in record numbers to back the board on two previous occasions. Before any changes of manager or mandate are even considered, shareholders should be given opportunities to exit, both before and after a potential SpaceX IPO.
“Saba has made various proposals about what should happen if its nominated directors are appointed. However, these are matters for the board. We call on the new board to make clear their intentions and plans as soon as possible so that all shareholders can have confidence in their approach.
“The bigger picture here is that a minority shareholder has been able to control the future direction of an investment trust against the wishes of the vast majority of other investors who did not want this outcome.
“We are seeking changes to the Listing Rules to address gaps that Saba has exposed, and it’s imperative that the government puts in place voting legislation to make sure all shareholders get the information and voting rights they are entitled to.
“Though the end result will not be what retail shareholders wanted, the commitment that they have shown to supporting their trust is extraordinary – turning out in record numbers to back the existing board and mandate.
“This would not have been possible without the support of the British media, voting agencies, wealth managers and many others who care deeply about the investment trust sector.”
Edinburgh Worldwide chair Simpson-Dent issued an open letter in March arguing that the Financial Conduct Authority is “missing the central issue” and warned that “retail investors deserve better safeguards from activist campaigns.”
Simpson-Dent said in March investment trust companies remain “vulnerable to sustained campaigns from activists.”
He said in March: “The current regulatory framework warrants closer scrutiny, and there are practical steps that could be implemented relatively easily that would be in the interests of all shareholders …
” … the regulatory framework should provide clearer definitions and stronger safeguards around board independence, conflicts of interest and related-party transactions, to prevent outcomes that undermine the spirit of shareholder democracy.”
UPDATE — On Friday morning, the new board of EWIT said in a statement: “It is an honour to join the EWIT Board and bring our collective experience to this critical moment for the Company.
“As independent directors, our top priority is maximising value for all shareholders, and we are ready to get to work. In the coming days, we look forward to engaging with shareholders and sharing more on the path ahead as we begin a new chapter at EWIT.”