Your vote counts: the investment trust AGMs in February 2024

Annual general meetings (AGMs) are often overlooked by individual investment trust shareholders, despite the fact they provide perhaps the best opportunity you’ll get to see what the fund managers you are invested with are doing and what their plans are for the near future.

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They also give investors an opportunity to vote on decisions being made by an investment trust’s management team. These could be simple, such as approving re-appointment of a non-executive director, or they could be more significant. For example, voters were asked to approve the merger of Shires Income (SHRS) and abrn Smaller Companies Trust (ASCI) towards the end of last year. With that in mind, here are three trusts that are holding their AGMs next month.

BlackRock Frontiers

BlackRock Frontiers Ord (LSE:BRFI)invests across frontier and emerging markets, but without the eight largest countries in the latter region. This is unique in the investment trust sector and the idea is to look for companies that are largely off the radar of most investors and offer uncorrelated returns with developed markets. Next month’s AGM will offer investors a chance to quiz managers Sam Vecht, Emily Fletcher and Sudaif Niaz. The key vote for shareholders is also likely to be approval of the trust’s dividend. BRFI is not an income-focused trust, but has ended up being a useful income diversifier for investors. In the past year, the trust saw a run of strong performance and a substantial increase in revenue.

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JPMorgan Asia Growth & Income

Thisaims to deliver capital growth for shareholders by investing in a portfolio of 50 to 80 companies from across Asia, excluding Japan. JPMorgan Asia Growth & Income Ord (LSE:JAGI) pays a quarterly dividend that is equal to 1% of its net asset value (NAV) at quarter end. JAGI pays that dividend from capital where needs be, meaning the managers are able to focus on the capital growth objective of the trust. The dividend is also one of the key votes at JAGI’s AGM next month, with shareholders being asked to approve the continuation of that quarterly dividend payout. Another key vote will be on the trust’s discount management policy. JAGI currently has a discount management policy that means the trust will buy back shares, assuming normal market conditions, to prevent the discount widening out beyond 8% - 10%.

abrdn Equity Income

Aiming for an above-average income from their equity investment while also providing real growth in capital and income. Since the end of 2022, abrdn Equity Income Trust Ord (LSE:AEI) has traded at a premium for several prolonged periods. We understand that this is primarily due to the trust’s high yield and the fact that dividends have been fully covered. Its dividend is one of the key votes at next month’s AGM. In addition, AEI will be looking for approval to issue more shares if the trust trades at a premium, enabling the managers to increase the asset base.