(Credit: Timon - stock.adobe.com)

At the trust’s AGM, which took place today, Saba won the vote to appoint three directors to the trust’s board. With five directors seeking re-election forced to step down and the appointment of three Saba nominees approved.

This shift follows a concerted campaign by Saba to capitalise on the trust’s significant holding in Elon Musk’s SpaceX, which many expect to undergo a blockbuster initial public offering this summer.

Outgoing chairman Jonathan Simpson-Dent described the result as a “wake-up call” for the investment trust sector, Daily Business reports.

He noted that the board’s ousting was accelerated by the departure of retail and private wealth shareholders who had grown weary of Saba’s persistent “attacks”. These long-term investors have increasingly been replaced by institutional players seeking to capture the upside of the SpaceX exposure.

Critics, including the Association of Investment Companies CEO Richard Stone, argue that a minority shareholder has effectively hijacked the trust’s direction against the historical preference of the broader investor base.

The vulnerability of Edinburgh Worldwide reflects a wider trend across the UK investment trust landscape, where persistent discounts to net asset value and a shift toward passive funds have left many vehicles exposed to activists.

Danni Hewson, AJ Bell head of financial analysis, said that Saba’s victory marks a turning point, as the firm currently holds stakes in over 40 other UK-listed trusts. While the outgoing board delivered a 44% return over the last 18 months, Mr Hewson said Saba’s plan, once the blockbuster IPO happens, “involves liquidating the SpaceX stake” and to “pivot the trust toward investing in other undervalued UK entities”.

“This victory will likely intensify scrutiny of the sector’s regulatory framework and the protection of retail shareholder interests,” he added. “Saba’s efforts, which largely began in 2025, were effective as a wake-up call for the industry.

“However, now it has won control of a trust, warnings about its short-termist and self-serving approach and the impact on the interests of individual investors will be put to the test.”