Your vote counts: the investment trust AGMs in April 2024

April will see 18 different investment trusts holding their annual general meetings (AGMs). That includes trusts in sectors as varied as property and Japanese smaller companies to biotech and UK equity income.

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AGMs are a great way to engage with managers and see how they are investing the funds they oversee. They also allow you to vote on resolutions put forward by management that have a substantial impact on how the trust is managed. Here are three trusts holding their AGM next month that are worth looking at.

Bellevue Healthcare

This trust invests in a concentrated portfolio of healthcare companies. Managers Brett Darke and Paul Major tend to hold around 30 stocks, which offer strong growth potential by solving problems facing health services globally. One of the trust’s key votes at its AGM next month will be to seek approval for its final dividend. Although Bellevue Healthcare Ord (LSE:BBH) invests in more growth-driven opportunities, it pays a dividend equal to 3.5% of financial year end NAV, with payments made in two instalments.

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Greencoat UK Wind

The largest renewables infrastructure trust since its IPO in 2013. Greencoat UK Wind (LSE:UKW) made news at the end of last year after it increased dividends by 14% and announced the launch of £100 million share buyback scheme. That was in response to a substantial widening of the trust’s discount after rate hikes began.

The most notable vote in the trust’s AGM proceedings next month will be on the ability to issue new shares. Investment trusts typically ask shareholders to approve their ability to issue new shares without first offering them to existing shareholders. This is to smooth out what would otherwise be a cumbersome, time-consuming process. In this instance UKW is asking shareholders to approve the ability to issue new shares worth up to 20% of share capital, double the amount they have historically asked for. The trust’s board noted that this is to fund future acquisitions, improve liquidity, and broaden the trust’s share register.

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Schroder Asian Total Return

A benchmark-agnostic trust that invests in Asian growth companies. Managers Robin Parbrook and King Fuei Lee have managed Schroder Asian Total Return Inv. Company (LSE:ATR) since 2013 but have run a similar strategy in an open-ended vehicle since 2007. The trust has a couple of important votes. One will be on approving the final dividend for the year. The other will give the trust’s board the power to buy back shares. Share buybacks are used by investment trusts to manage discounts, typically by preventing them from widening beyond a certain level.