Your vote counts: the investment trust AGMs in January 2023

Kepler Trust Intelligence names all the investment trust AGMs coming up this month, picking out three that have votes of interest.

It’s a new year and with it comes a new set of annual general meetings (AGMs) at which investors can make their voices heard.

This month, 13 different investment companies are holding their AGMs, with sectors and regions covered including European equities, emerging markets and real estate. We highlight a few of these investment trusts below.

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JPMorgan Japanese

JPMorgan Japanese (LSE:JFJ) has had a tough 12 months, with Japanese equity markets seeing a major downturn and the yen declining against the dollar in 2022.

JFJ hasn’t been immune from these problems and the trust’s discount had widened to over 6% as of 5 January. The managers invest across the Japanese stock market, with a particular focus on ‘New Japan’ companies, which are often geared towards providing technological solutions for the problems Japan is facing, most notably an ageing population.

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For investors in the trust, probably the most interesting votes to take note of are the approval of a 6.2p per share dividend as well as measures used by the trust to buy back shares. Buybacks are used by the trust’s board to manage the discount at which the trust may trade.

Starwood European Real Estate Finance

Starwood European Real Estate Finance (LSE:SWEF)’s board announced in November that it intended to wind down operations.

The trust, which invests in real estate debt, had a provision in its discount control policy which meant that, if its discount stood at 5% or more in the six months to the end of last year, it would have to redeem 75% of its “free float” – the number of shares owned by investors.

After consulting with advisers, the trust’s board decided to hold an extraordinary general meeting on 27 January, where the winding down of operations will be put to a vote.

It should be noted that this winding down will be gradual, in order to realise the best returns for shareholders. According to an announcement published by SWEF, the process is likely to be completed over a three-to-five-year period.

Finsbury Growth & Income

It is business as usual at Finsbury Growth & Income (LSE:FGT), which will hold its AGM on 17 January.

The trust’s portfolio is managed by Nick Train and has had a volatile 12 months along with many of its peers. Train purchased over £200,000 worth of shares in the trust this week, suggesting he still has confidence in its long-term potential.

FGT shareholders will mainly be voting to approve directors for the trust’s board. However, they will also be voting on whether to continue the trust’s policy of paying two interim dividends, in line with prior policy. This is as opposed to paying a final year dividend, which the board believes is less effective.