AIC responds to Edinburgh Worldwide announcement
The AIC reacts to the news that the three directors nominated by Saba Capital will be appointed today.
The Association of Investment Companies (AIC) has responded to the announcement from the board of Edinburgh Worldwide this morning. The announcement states that based on the latest voting information, it is expected that the current board of Edinburgh Worldwide will cease to be directors of the company with effect from the end of today’s AGM, and that the three directors nominated by US hedge fund Saba Capital will be appointed to the board.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Thousands of shareholders will be disappointed by this announcement, having twice rejected directors nominated by Saba only to see them appointed to the board at the third attempt.
Though the end result will not be what retail shareholders wanted, the commitment that they have shown to supporting their trust is extraordinary – turning out in record numbers to back the existing board and mandate. This would not have been possible without the support of the British media, voting agencies, wealth managers and many others who care deeply about the investment trust sector.
Richard Stone, CEO of The Association of Investment Companies (AIC)
“The new board of Edinburgh Worldwide has important legal and regulatory responsibilities to act independently and in the interests of all shareholders. There will be intense scrutiny of their actions and we expect them to follow a proper process if seeking to change the manager or the mandate.
“The new directors will need to bear in mind that non-Saba shareholders have resoundingly supported the existing mandate, turning out in record numbers to back the board on two previous occasions. Before any changes of manager or mandate are even considered, shareholders should be given opportunities to exit, both before and after a potential SpaceX IPO.
“Saba has made various proposals about what should happen if its nominated directors are appointed. However, these are matters for the board. We call on the new board to make clear their intentions and plans as soon as possible so that all shareholders can have confidence in their approach.
“The bigger picture here is that a minority shareholder has been able to control the future direction of an investment trust against the wishes of the vast majority of other investors who did not want this outcome. We are seeking changes to the Listing Rules to address gaps that Saba has exposed, and it’s imperative that the government puts in place voting legislation to make sure all shareholders get the information and voting rights they are entitled to.
“Though the end result will not be what retail shareholders wanted, the commitment that they have shown to supporting their trust is extraordinary – turning out in record numbers to back the existing board and mandate. This would not have been possible without the support of the British media, voting agencies, wealth managers and many others who care deeply about the investment trust sector.”
