Your vote counts: investment trust AGMs in June 2024

June is set to be a busy month for the investment trust world, with more than 40 closed-ended funds holding their annual general meeting (AGM).

That includes funds investing in traditional assets, such as global equities, as well as alternatives, whether that be real estate, hedge fund strategies, or private equity.

AGMs provide investors with a great opportunity to hear how the people they’ve invested with are managing their money and to get their thoughts on the wider market. They also offer investors the opportunity to vote on resolutions put forward by the investment trust.

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Below, we look at three trusts holding their AGMs next month to give you a taste of what those proposals can look like.

Invesco Perpetual UK Smaller Companies

As well as UK smaller companies, Invesco Perpetual UK Smaller Companies (LSE:IPU) also invests in medium-size companies. Its fund managers recently used gearing (borrowing to invest) for the first time in several years, reflecting their view that the UK stock market is attractively valued. Next month will see shareholders vote on a resolution to continue the fund. The managers do have a long-term track record of outperformance and hold such votes every third year.

Vietnam Enterprise Investments

This is one of the only three trusts that invests in the Vietnamese stock market. Vietnam has become an increasingly attractive market over the last few years and a number of emerging market managers have been boosting exposure to the country as a result.

Vietnam Enterprise Investments (LSE:VEIL) shareholders will be asked to approve the board’s ability to buy back shares. Trusts tend to buy back shares to manage a widened discount to net asset value (NAV), which is why VEIL’s board is asking for this approval.

NB Private Equity Partners

Next month, investors in NB Private Equity Partners (LSE:NBPE) will be asked to vote on a couple of key resolutions. One is to ratify dividend payouts. Another is to give the investment trust board the ability to issue new shares, something that is typically done if a trust trades at a premium.