Your vote counts: the investment trust AGMs in April 2023

Kepler Trust Intelligence picks out three investment trust AGMs of note.

The start of spring tends to coincide with reporting season for lots of investment trusts, which also means there are typically a larger number of annual general meetings (AGMs) than usual.

Next month will see more than 25 investment trusts holding shareholder presentations or AGMs. Shareholders are free to attend these and they represent a good opportunity to hear from the people managing your money and ask them questions (or perhaps even ‘hold them to account’, if you believe it’s necessary).

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Here we run through three that may be of interest.

Bellevue Healthcare

Fund managers Paul Major and Brett Darke run a concentrated portfolio of healthcare stocks. They also write an entertaining update for investors each month, which is worth reading, even for someone with a passing interest in the healthcare sector.

Bellevue Healthcare (LSE:BBH) is also unique in that they stopped running a ‘normal’ AGM last year and instead held a more informal Q&A and discussion between the managers and shareholders. The trust managers plan on doing the same this year.

Nonetheless, it’s not just a fun get-together and there are still votes to think about. Of particular note in this regard is the fact that shareholders will have to vote to approve the trust’s buyback policy.

Alliance Trust

This is a multi-manager trust run by Willis Towers Watson, which outsources the stockpicking to a group of fund managers. The pros are asked to make their highest conviction picks, which are then combined to form a global equities portfolio.

Alliance Trust (LSE:ATST) has held up comparatively well in the past 18 months as a result, especially when compared to more growth-oriented funds.

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The AGM next month will have votes on approving share issuance and share buybacks. However, of interest to investors may be the vote on the trust’s dividend policy. Alliance Trust has paid a rising dividend for 56 consecutive years now. Its policy is to pay these at four regular intervals throughout the year. Shareholders will be asked to approve the continuation of the dividend policy. 

Abrdn China

This is a comparatively new trust, having launched in late 2021. Managers Elizabeth Kwik and Nicholas Yeo look for companies they believe can deliver long-term growth in China.

It has been an interesting couple of years for this strategy, with lots of volatility driven by regulatory crackdowns, lockdown policy and then a sudden reopening.

Votes for abrdn China (LSE:ACIC) at the AGM mainly relate to reappointing board members and approving its financial results.

However, there is some detail here on the buyback policy as well. Given further volatility cannot be ruled out in China, it’s plausible that this may be of some comfort to investors, given that the buyback can act as a cushion of sorts against dramatic sell-offs.

Source: AIC – Association of Investment Companies.