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LONDON - Edinburgh Worldwide Investment Trust (EWIT) on Thursday rejected an open letter from Saba Capital Management that announced intentions to requisition a general meeting aimed at removing the incumbent board.
Jonathan Simpson-Dent, Chair of EWIT, expressed disappointment with Saba’s approach, stating that the board had attempted to engage with the investment firm over the past year to understand their objectives and discuss potential solutions, including capital return options.
"Saba’s open letter does not represent the significant progress EWIT has made since this Board reset the Company on a path for growth a year ago," Simpson-Dent said in a statement responding to the letter.
The trust highlighted its net asset value (NAV) total return of 17.5% to date, which it noted outperformed its benchmark S&P Global Small Cap Index, which returned 4.8% during the same period. EWIT specifically rejected Saba’s use of the FTSE All-Share as a comparison benchmark, stating it was inappropriate to "judge a global small-cap trust against a UK all-cap benchmark."
EWIT also pointed to its current discount of 5.6%, which it described as "significantly narrower than the Global Smaller Companies peer group weighted average discount of 10.9%."
While expressing openness to discussing board composition, Simpson-Dent firmly rejected any proposal to replace the entire board, citing concerns about the "ambiguity that would follow" such a move.
The company noted that its financial adviser had already requested a meeting with Saba prior to receiving the open letter, but Saba had asked to defer discussions until next week. EWIT indicated it would continue seeking constructive dialogue with Saba and would update shareholders on developments.
The statement was issued in response to Saba Capital’s open letter based on a press release from the investment trust.
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