(Credit: Timon - stock.adobe.com)

The trust, managed by Baillie Gifford, is strongly urging investors to reject Saba’s proposal to oust the current board and install its own nominees, a move the board characterises as hostile.

The board defends its current trajectory, highlighting a Net Asset Value (NAV) total return of 20.5% over the past twelve months, a figure that outperforms its benchmark. The directors argue that Saba’s intervention is driven by commercial self-interest rather than shareholder value. They warn that the US hedge fund seeks to fundamentally alter the company’s strategy and could potentially appoint itself as the investment manager to capture associated fees.

Jonathan Simpson-Dent, chair of EWIT, described the move as an “assault” on the trust, marking the second attempt by Saba within a year. In a letter to shareholders, he cautioned that approving Saba’s three US-based nominees would effectively hand control of the company to the fund. Mr Simpson-Dent emphasised that the choice is between maintaining a unique mandate offering access to disruptive, high-growth companies or allowing Saba to prioritise its own financial gain. Shareholders have been asked to cast their votes by 17 January to protect the trust’s independence.