Your vote counts: the investment trust AGMs in February 2023

Kepler Trust Intelligence picks out three investment trust AGMs of note.

It’s going to be another busy month for annual general meetings (AGMs) in the investment trust sector next month. Close to 25 closed-ended funds will be holding the meetings, during which shareholders can vote to pass or oppose the resolutions proposed.

The trusts holding their AGMs next month illustrate the depth the sector has in terms of asset classes on offer. Forestry, global equities and infrastructure, among many other sectors, are all represented among the trusts holding their AGMs next month. Here are three that may be worth looking at.

• Invest with ii: Buy Investment Trusts | Top UK Shares | Open a Trading Account

BlackRock Frontiers

BlackRock Frontiers (LSE:BRFI) is one of only a small number of trusts that invests in companies based in countries outside the MSCI World Index and the eight largest constituents of the MSCI Emerging Markets index. That means getting exposure to places such as the UAE, Poland, Indonesia and Egypt.

Some of the key votes next month will be on maintaining a discount control policy and increasing a pay cap for directors. Another important vote will be on approving the trust’s proposed dividend.

JPMorgan Asia Growth & Income

This trusthas not had the easiest of 12 months. Given that, with India being one notable exception, markets across Asia saw dramatic declines in 2022 that probably shouldn’t be a surprise. But the China reopening means sentiment is improving for the region and some of the rotations made by the managers may stand to benefit.

JPMorgan Asia Growth & Income (LSE:JAGI)is able to pay a dividend from capital, meaning they don’t have to pay their dividends from income derived from the underlying portfolio, and can theoretically focus more on the companies that will deliver the best total returns.

For investors, one of the key votes for next month will be on approving the dividend policy that means the trust pays out four quarterly dividends, equal to 1% of net asset value (NAV) at quarter end.

Shareholders will also be asked to approve policies designed to manage discounts and issue new shares if the trust trades at a premium.

• Andrew Pitts’ trust tips: UK and Europe strategies stage strong revival
• Three reasons why analyst has put ‘sell’ rating on Scottish Mortgage

Foresight Sustainable Forestry

Foresight Sustainable Forestry (LSE:FSF)is the only trust listed on the London Stock Exchange today that invests in the UK’s forestry sector. Returns are driven by timber sales but also from any increase in valuations that are driven by repurposing sites for forestry and, perhaps more interestingly, carbon credits.

The trust IPO’d in late 2021 and has delivered strong NAV and share price returns since then. Next month’s AGM will be the trust’s first and voters will be asked to approve directors as well as the ability for the trust to issue new shares.