Your vote counts: investment trust AGMs in September 2024

There’s more than 20 annual general meetings (AGMs) on the investment trust slate for September, with a near-complete gamut of sectors on display, from the UK to India, alongside alternative assets such as property and renewable energy infrastructure.

Having previously been rather staid affairs, shareholder activism has helped to breathe life into AGMs and provide the opportunity for shareholders to shape the future direction of the company. Shareholders can also vote on the election of directors, executive pay and share buybacks, and indeed the fate of the trust itself if there’s a continuation vote.

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To give you a flavour of some of the topics being discussed, we take a closer look at three upcoming AGMs.

Invesco Asia 

Invesco Asia Ord (LSE:IAT) is co-managed by Ian Hargreaves and Fiona Yang, who aim to generate attractive total returns through a concentrated portfolio of circa 60 holdings. The managers take a contrarian approach by focusing on out-of-favour and undervalued companies that offer potential upside if investor sentiment changes. This has underpinned their significant outperformance of the benchmark (in net asset value terms) over the last five years.

Resolutions at the AGM include a vote on approving a minor change to the enhanced dividend policy, which remains at 4% of NAV (paid in two instalments) but will move to the NAV at the end of September (rather than September and February).

Shareholders will also vote on the authorisation to buy back shares, which investment trusts can carry out to manage discounts. IAT spent almost £3 million on share buybacks in the last financial year, which was accretive to NAV (and represented 1% of the shares in issue).

Schroder British Opportunities

Schroder British Opportunities Ord (LSE:SBO) offers a differentiated Best-of-British portfolio of small and mid-cap growth companies from both public and private markets, with a sweet spot of £50 million to £2 billion. As with other UK small-cap trusts, M&A activity has been a key feature of the portfolio in recent times, providing a tailwind for returns.

Turning to the AGM, the board is putting 14 resolutions to shareholders, including the appointment of two new non-executive directors in view of the chair’s retirement. There is also a vote on continuing the authority to buy back up to 15% of the trust’s shares, although this was not utilised in the last financial year.

abrdn New India

abrdn New India Investment Trust Ord (LSE:ANII) offers exposure to the outstanding growth potential in India via a portfolio of predominantly large-cap, high-quality companies. Managers Kristy Fong and James Thom look for companies with strong balance sheets, sustainable earnings potential and sound governance.

India has performed well in recent years, supported by significant reforms by the Modi government and geopolitical tensions between the US and China. The trust has broadened its holdings in financials and industrials to capitalise on significant infrastructure investment and digitalisation amongst other growth drivers.

Shareholders will cast their votes on 10 ordinary and special resolutions at the AGM, including the re-election of four 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 significantly stepped-up buybacks from circa 4% to 7% in the most recent financial year.

Jo Groves is an investment specialist for Kepler Trust Intelligence.