Your vote counts: investment trust AGMs in November 2024

There are 15 annual general meetings (AGMs) in the investment trust calendar for November covering everything from global equity income to UK commercial property. Small-cap aficionados are also in for a busy month, with reporting from those in the UK, European, Asia-Pacific and North American sectors.

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Once relatively low-key events, AGMs have been energised by increased shareholder activism, giving investors a chance to vote on key issues such as the election of directors, executive pay, share buybacks and, on occasions, the continuation of the trust.

We take a closer look at three upcoming AGMs.

Brown Advisory US Smaller Companies

Brown Advisory US Smaller Companies Ord (LSE:BASC) holds a fairly concentrated portfolio of around 70 to 80 US small-cap companies with a high active share relative to the benchmark. Manager Christopher Berrier aims to deliver superior returns on a risk-adjusted basis.

The trust offers exposure to the broad universe of US small-caps in the Russell 2000 index, which is more diversified by sector and level of concentration than the S&P 500. BASC focuses on high-quality companies offering scalable growth over the long term. Falling interest rates and a return to company fundamentals could prove tailwinds for the trust over the next few years.

Resolutions at the forthcoming AGM include a vote on the election of directors and authorisation to buy back 10% of the trust’s shares.

JPMorgan Global Growth & Income

JPMorgan Global Growth & Income Ord (LSE:JGGI) is the largest trust in the Association of Investment Companies (AIC) Global Equity Income sector. It is a popular choice among UK retail investors. The trust has been the leading performer in the sector over multiple time periods, benefiting from a greater allocation to higher-growth areas of the market over the past five years.

The managers run a benchmark-agnostic global equity strategy, identifying the best global companies in terms of long-term capital growth, alongside an attractive dividend. The trust has significantly grown in size due to recent mergers, including with Scottish Investment Trust and JPMorgan Multi-Asset Trust, which has improved liquidity and reduced fees.

Turning to the AGM, the board is putting 14 resolutions to shareholders, including the reappointment of four directors, authorisation to buy back 15% of the trust’s shares and the continuation of quarterly dividend payments.

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Murray Income

Murray Income Trust Ord (LSE:MUT) aims to achieve capital growth and generate a high income through investing in UK mid- and large-caps. Managers Charles Luke and Iain Pyle look for companies with strong business models, robust balance sheets, sound environmental, social and governance (ESG) characteristics, and attractive income profiles.

MUT has qualified as an AIC “dividend hero” thanks to 51 years of consecutive dividend increases and is currently offering one of the highest dividend yields in the AIC Global Equity Income sector at just under 5%.

Shareholders will cast their votes on 12 ordinary and special resolutions at the AGM, including the re-election of three directors and the authority to purchase up to 15% of the trust’s shares. The board continues to pursue a programme of selective buybacks to manage the discount, having bought back 6.3% of the shares outstanding (as at July 2023) during the last financial year.