Your vote counts: the investment trust AGMs in March 2024

March marks another busy month for annual general meetings (AGMs) in the investment trust universe. Funds in sectors ranging from venture capital to UK equity will be holding their meetings next month.

AGMs provide investors with an opportunity to hear what the managers looking after their money are up to, typically with some views on what’s happening in markets and how they are invested. They also allow investors to vote on resolutions put forward by the trust’s board, giving you an opportunity to engage more actively with the investment trusts your invested in.

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To illustrate this, we’ll look at three trusts holding their AGMs next month and some of the resolutions they’ll be voting on.

CC Japan Income and Growth

This trust invests in Japanese companies with the aim of providing dividend income and capital growth to shareholders. It has had a strong run of performance, with more investors waking up to the potential Japan offers, mainly as a result of various corporate governance reforms. One of the key votes at the AGM for CC Japan Income & Growth Ord (LSE:CCJI) investors will be on the trust’s dividend. The trust pays a semi-annual dividend, with a higher final dividend. Investors will be asked to approve this for next year too.

BlackRock Throgmorton

The UK small company specialist stands out from the crowd as the managers can take short positions in companies using contracts for difference. BlackRock Throgmorton Trust Ord (LSE:THRG) is really a vehicle for capital growth, meaning the yield on the trust has typically been lower than some peers. However, the trust has, with 2019 and 2020 being exceptions, paid fully covered dividends every year for over a decade now. Smaller companies have had a tough time since rate hikes began and THRG’s discount has widened out substantially since then. A key vote to be aware of in this regard is the trust’s discount management policy. This allows the trust’s board to buy back shares, helping to reduce the extent to which the discount widens out.

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Invesco Select

Thisis an unusual trust as it has historically been split into four different share classes. Each share class gives investors exposure to a different portfolio and investors can switch between them without crystallising a capital gain. However, next month the trust will be voting on a motion to simplify its existing structure and consolidate the trust into one share class. This will be the Invesco Select Global Equity Income Ord (LSE:IVPG) portfolio managed by Stephen Anness. If approved, the trust will enact a buyback policy aimed at keeping the discount under 10%. It will also pay a quarterly dividend equal to 1% of NAV, with any shortfall in income made up by paying from capital.