Your vote counts: the investment trust AGMs in May 2023

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

As we enter the month of May, investors in close to 40 investment trusts will have the opportunity to make their voices heard once again at the annual general meetings (AGMs). These meetings are usually ignored by retail investors, but they provide a unique opportunity to ask management questions and vote on the proposals they've made, so they’re worth paying attention to.

Here, we take a closer look at three investment trusts that are holding their AGMs this month, and the proposals that investors will be voting on.

• Your AGM guide: what you can do and how to do it
• Shareholder voting & information. Have your say on the companies you invest in

AVI Japan Opportunity Trust

AVI Japan Opportunity (LSE:AJOT) takes a unique approach to the market by investing in smaller Japanese companies at the smallest end of the market cap spectrum. It then takes an activist approach to improve performance and generate superior shareholder returns.

The trust's AGM will vote on the reappointment of company directors, as well as a proposal to give the board the authority to buy back shares.

The trust has also enjoyed a high level of success over the past few years, so shareholders will also have to vote on the issuance of new shares to manage premiums.

Dunedin Income Growth

Dunedin Income Growth (LSE:DIG) also takes a unique approach to its area of the market. The equity income trust runs a concentrated portfolio that typically contains fewer than 40 stocks. Managers Ben Ritchie and Rebecca Maclean are also able to invest in mid-cap stocks, as well as European companies. They can also write options to generate income and invest in companies outside the UK.

At its AGM, the trust will seek approval for the renewal of its management agreement, as well as the reappointment of its company directors. Most significantly, the board will be looking to approve a final dividend of 4.10p per share for investors.

Fidelity European Trust

Fidelity European Trust (LSE:FEV) invests in a diversified portfolio of European equities and aims to provide long-term capital growth for its investors. The trust typically has a relatively concentrated portfolio of 40 to 50 stocks, with the managers also able to take short positions (profit from falling share prices).

At its AGM, the trust will seek approval for a final dividend of 4.62p per share, as well as the re-election of existing board members, and approval to continue operating as an investment trust. Like the other two trusts mentioned, investors will also have to approve the proposed buyback and share issuance proposals to manage discounts and premiums.