End of round one
Shareholders back Edinburgh Worldwide board marking Saba Capital’s seventh consecutive defeat.
The Association of Investment Companies (AIC) has commented on today’s general meeting of Edinburgh Worldwide Investment Trust, the seventh requisitioned by Saba Capital. All Saba’s proposals were defeated by shareholders at the general meeting.
“Once again, shareholders have emphatically rejected Saba’s proposals. It’s tremendous to see shareholders come out and vote in such numbers and it’s testament to how much they value their investment trust. “
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Once again, shareholders have emphatically rejected Saba’s proposals. It’s tremendous to see shareholders come out and vote in such numbers and it’s testament to how much they value their investment trust.
“This is the end of round one, but Saba’s most recent requisitions show that this may not be over yet. Shareholders are being asked to choose between an investment trust, with its long-term approach and structural advantages, and an unknown open-ended alternative. They will need to give this careful consideration and vote accordingly.
“There are lessons to learn from these votes. It was only possible to achieve such high turnouts because of an unprecedented campaign from the companies, the industry, platforms and the media. We must make sure that shareholders are always informed and empowered to vote, rather than relying on goodwill and ad hoc efforts. That’s why we’re launching a campaign to change company law, ‘My share, my vote’, to ensure that voting rights and information are always passed on to shareholders.
“Boards have been rising to the challenge during this period of deep discounts. We’re seeing record levels of activity, such as share buybacks, mergers and strategic reviews. More than ever, boards are focused on discount management, their trust’s place in the market, and communication with existing and new shareholders. Independent oversight by boards is integral to the success of investment trusts and their focus on long-term objectives for the benefit of all shareholders, as opposed to short-term trading.”
The AIC’s campaign, ‘My share, my vote’, aims to make sure that all shareholders can use their vote. You can read more about the campaign here.
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