Edinburgh Worldwide (EWI)

30/12/2025

Flash update from Kepler Trust Intelligence

Saba has requisitioned a general meeting at Edinburgh Worldwide to vote on appointing their own directors to the board.

Saba has not outlined the intentions of those directors, but there is speculation it wishes to run its own investment trust. Control of the board would give Saba the ability to hand itself the management contract. Saba claims the board members it proposes are independent.

EWI's board noted in its response that it has separately been negotiating the terms of a merger with Baillie Gifford USA Growth, which Saba has indicated it will not support.

Saba lost a vote last year on similar proposals by 63.8% to 36.2%, with 98.4% of the shares not held by Saba voting against the activist. Saba owns c. 30% of the shares, as of 27/11/2025, more than the c. 25% it voted last time, making it more important for shareholders to vote.

Shareholder have to vote by 12 noon on 17/01/2026, but some platforms may have deadlines as early as 12/01/2026. The general meeting will be held on 20/01/2026.

Kepler View

Saba give some specific criticisms of Edinburgh Worldwide's (EWI) board based around performance, but we don't think they are actually relevant or worth responding to in depth as they are clearly an afterthought and have been prepared with no care or attention. Their criticism on performance is based on a comparison to the FTSE All Share, which they describe as "the trust's own self-selected benchmark". The trust's own self-selected benchmark is the S&P Global Small Cap Index. EWI has delivered a NAV total return of 20.9% in 2025, well ahead of this benchmark's return of 10.7% (to 22/12/2025). EWI's shares have also outperformed, delivering a 12.5% total return, with the discount averaging a modest 5.8% over the year. 

We suggest that Saba's approach to EWI has nothing to do with performance but is based purely on their intention to launch an investment trust or ETF which will roll up investment trusts on a discount, which is definitely not something its fellow shareholders wanted when they bought EWI shares. They have been offered two opportunities to exit their investment close to NAV, via a tender and via a proposed merger with Baillie Gifford USA Growth, which would include a cash exit option. Clearly they have other plans.

Were Saba to win control of the board, they would be handed carte blanche to do what they will with the £864m of total assets. In the absence of any information to the contrary, we have to assume the mandate would completely change from investing in global smaller companies to buying discounted investment trusts to wind them down, perhaps benchmarked to the MSCI Latin America Equal Weight Index.

In short, we view the approach as cynical, and by timing their approach around the Christmas holidays, just as they did last year, we suspect Saba is trying to shorten the amount of time the board has to respond and for shareholders to vote, making it as difficult as possible for them to do so, which is disappointing given their claim to be acting in the interests of all shareholders.

We think shareholders should vote against Saba's proposals, and access www.TrustEWIT.com for information on how to do so. Click below to read the list of reasons to vote against:

CLICK HERE TO READ THE FULL REPORT 

Visit Kepler Trust Intelligence for more high quality independent investment trust research.

Important information

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.  

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 70 Conduit Street, London W1S 2GF with registered number OC334771.