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A new wave of activist pressure has hit the UK investment trust sector as Boaz Weinstein, founder of Saba Capital and one of the most influential names in the activist investing space, calls for a complete overhaul of the board at the Edinburgh Worldwide Investment Trust (EWIT). His firm currently owns roughly 30 percent of the trust, giving him substantial influence as he seeks to reshape the direction of the tech-focused portfolio overseen by Baillie Gifford.

In a detailed letter sent on Thursday, Weinstein accused the board of delivering results that fall far short of shareholder expectations. He argued that the trust has faced significant and prolonged value destruction, particularly over the last five years, and said the board had “objectively and categorically failed” to protect investor interests.

Performance Concerns and Long-Term Underperformance

EWIT’s portfolio consists of emerging and high-growth innovation-driven companies across global markets, including both public and private firms. It emphasizes businesses with “disruptive” potential in areas such as advanced technology, healthcare innovation and transformative digital sectors.

One of its most prominent holdings is SpaceX, valued at 8.4 percent of the portfolio, a notable weight given its private-market valuation surge in recent years.

However, Saba Capital’s letter highlighted a deep concern:

• The trust’s net asset value has dropped 30.8 percent over the past five years.
• Its share price has declined 35 percent over that same period.
• Over that horizon, it has dramatically lagged the FTSE All-Share Index, which rose 71.4 percent, a gap of more than 100 percentage points.

Weinstein described this multi-year performance gap as “unprecedented” among comparable UK equity investment trusts, arguing that shareholders have experienced severe and avoidable value erosion.

Pushback from EWIT’s Chair

Jonathan Simpson-Dent, chair of the Edinburgh Worldwide Investment Trust, sharply rejected Saba’s assessment. He argued that Weinstein’s comparisons are misleading because the trust’s benchmark is the S&P Global Small Cap Index, not the FTSE All-Share.

He stated that:

• EWIT’s NAV total return stands at 17.5 percent year-to-date.
• Its benchmark, the S&P Global Small Cap Index, has returned only 4.8 percent in the same period.

Simpson-Dent added that the trust has maintained a “tightly managed” discount to net asset value, currently at 5.6 percent, significantly narrower than the 10.9 percent average discount among global smaller companies.

Despite this rebuttal, the trust’s total assets remain sizable at £847.15 million as of October 31.

A Call for a Complete Board Replacement

Weinstein is requesting a general meeting in order to propose a new board composed entirely of independent directors who, according to him, would be better positioned to deliver long-term value and strategic renewal.

He emphasized frustration with what he described as “prolonged inertia” from the current board and a lack of confidence in their ability to implement meaningful changes.

Simpson-Dent responded that the board is willing to engage in productive discussions with Saba and explore options for capital returns, but firmly rejected any plan to replace the entire board, saying such a move would create “ambiguity” and risk undermining stability.

A Broader Bet on UK Investment Trusts

This clash marks the latest in a series of activist engagements by Saba Capital within the UK investment trust space. Weinstein had previously attempted to trigger changes at the trust last year, though that effort did not gain sufficient investor backing.

Saba’s broader strategy has intensified in recent months. Weinstein noted at the Sohn London conference that there is “a storm brewing” across UK investment trusts as widening discounts create opportunity for activists seeking value unlocks. His firm, managing around $6 billion, is known for identifying discounted assets, governance weaknesses and structural inefficiencies—and aggressively pushing for reform.

With this newest escalation, the confrontation between Saba and EWIT is likely to draw considerable attention from institutional investors, analysts and other trusts watching how this battle over performance, governance and shareholder value unfolds.