Your vote counts: the investment trust AGMs in May 2024

One of the longstanding, but perhaps understated, structural advantages of investment trusts over funds is their independent board of directors. It is the board’s job to exercise independent oversight, hold fund managers to account (including the ability to sack them) and look after the interests of shareholders (such as by driving down costs). 

In addition, as a shareholder in an investment trust you have the same voting rights as shareholders in other companies. This gives you the opportunity to have your say and exert influence.

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An interesting investment trust issue that crops up from time to time are continuation votes, which give shareholders the option of voting on whether the trust should continue or be wound up. Under the latter scenario, shareholders are paid their share of the company’s assets at or near net asset value (NAV), rather than the current share price.

Two trusts popular among retail investors recently held continuation votes: Smithson Investment Trust (LSE:SSON) and Greencoat UK Wind (LSE:UKW). In both cases, the continuation votes comfortably passed, but some shareholders showed a preference for closure. For Smithson, 90.4% of votes were for the company continuing as an investment trust, while for Greencoat 88.7% of votes were in favour.  

• Watch our Greencoat UK Wind video: why our RPI inflation dividend target is sustainable
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The table below, from Kepler Trust Intelligence, shows the investment trust annual general meetings (AGMs) taking place this in May. In total, there are 42 AGMs, across a range of sectors and asset classes.