(Credit: Timon - stock.adobe.com)

On 10 April, 53.8% of shareholders rejected the proposal, which EWIT had argued would have provided investors with a fair exit option and protected them from ending up in a Saba-controlled vehicle. The result represents a significant victory for the New York-based hedge fund in its long-running campaign to seize control of the trust.

EWIT chair Jonathan Simpson-Dent described the outcome as “very disappointing”, noting that independent shareholders had consistently rejected Saba’s plans for control. He warned that there now remains a “high likelihood” of Saba succeeding in appointing its proposed new board at the forthcoming AGM on 30 April 2026, which would likely trigger a change of manager and a fundamental shift in investment strategy.

In response to the vote, the board said it would move to implement alternative tender offers that Saba had publicly stated it would recommend, giving shareholders the choice of exiting at close to net asset value or remaining invested.

Saba, for its part, accused the EWIT board of pursuing a “deeply flawed” proposal that would have left shareholders holding untradeable SpaceX tracker shares whilst exposing them to significant potential tax liabilities. A spokesperson for the hedge fund pointed to EWIT’s ranking of 66 out of 66 equity trusts with more than £500 million in assets over the past five years, arguing that the board had prioritised its own interests over those of shareholders.

Mr Simpson-Dent acknowledged the outcome was not what the board had hoped for, but said implementing the alternative tender offers represented “the most pragmatic course of action in the circumstances”.