A high turnout of the investment trust's shareholders enabled a widespread sigh of relief but Boaz Weinstein's Saba Capital Management continues to cast a shadow over a sector with a proud history and a major presence in Scotland, writes Ian McConnell.

You could almost hear a collective sigh of relief from the investment trust sector last Tuesday as a major Scottish fund prevailed against a second attempt by US hedge fund manager Boaz Weinstein’s Saba Capital Management to oust its entire board.

The result for Edinburgh Worldwide Investment Trust depended so much on shareholder turnout, given the scale of Saba’s stake. Saba’s holding had been quantified at “just over 30%” by Edinburgh Worldwide chairman Jonathan Simpson-Dent in the run-up to the vote on the US hedge fund’s resolutions.

A couple of hours after the noon start of last Tuesday’s general meeting requisitioned by Saba for the vote on these resolutions, Edinburgh Worldwide was able to announce that the attempt to oust its entire board and appoint as directors three US-based individuals chosen by the hedge fund had been defeated.

What was striking was the arithmetic of the vote, even though it had been clear for weeks that a major turnout of shareholders opposed to Saba’s proposals would be required for Edinburgh Worldwide’s board to see off Mr Weinstein for the second time within a year.

On Valentine’s Day last year, following a meeting of shareholders, it was announced that Edinburgh Worldwide shareholders........

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