Edinburgh Worldwide seeks UK independent directors

Edinburgh Worldwide Investment Trust has begun a search for UK-based independent non-executive directors after its board was reconstituted with the support of activist investor Saba Capital. The trust wants directors who add diversity of viewpoints and professional skills to strengthen governance.

Three directors were elected following a shareholder vote at the trust’s April annual general meeting, where Saba secured sufficient backing to change the board. Since taking office, the new board has engaged with a broad range of shareholders.

Shareholder discussions have centred on two priorities: a review of past decisions relating to the trust’s holding in SpaceX and arrangements to provide a liquidity event for investors once proceeds from that holding are monetised. The trust has reiterated its intention to offer shareholders an exit opportunity when funds from the SpaceX stake become available.

A formal review of historical portfolio decisions is under way, including the partial disposal of the SpaceX stake by the previous manager, Baillie Gifford.

Interim results for the six months to 30 April showed an 8.4% return on net asset value, supported in part by a sharp increase in the valuation of SpaceX. Total returns to shareholders were higher after the discount to net asset value narrowed in the period before the board changes.

The governance changes follow a long-running campaign by Saba Capital, which has argued that alterations to management and strategy are needed to realise shareholder value. The board has not announced any wider strategic shifts or formal changes to management arrangements.

Investors will watch the outcome of the governance review and any decisions on the timing and structure of a proposed exit offer. Appointing UK-based independent non-executive directors is expected to broaden expertise on the board and address shareholder concerns.