Shareholder apathy remains a danger, AIC voting figures show

The Association of Investment Companies (AIC) has called on all shareholders to make their votes count in the upcoming vote at Edinburgh Worldwide Investment Trust, as data shows that trusts with more individual shareholders have lower turnouts than those with higher institutional ownership.

The AIC analysed shareholder voting patterns at the annual general meetings (AGMs) of 245 investment trusts. Where more than a quarter of a trust’s shares were held by self-directed private investors (sometimes called retail investors), the average voting turnout was 35%. But for trusts where private investors held less than a quarter of the shares, the average turnout was 52%.

Average voting turnouts

Source: AIC (ex VCTs)

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “These figures underline the danger that the interests of smaller investors will be ignored because they fail to vote their shares. However small your shareholding, you have a voice on important decisions facing your investment trust – such as whether to adopt Saba Capital’s proposals at Edinburgh Worldwide.

“Make sure you use your vote, or be prepared to see the fate of your investment trust decided by larger investors whose interests may or may not align with yours.”

The AIC has published voting deadlines for four major platforms (see below).  

A chart displaying AGM voting turnouts by AIC sector can be found below, and reveals that sectors where private investors are more prominent tend to have lower voting turnouts.

AGM voting turnout by AIC sector, showing % of private investor ownership

Source: AIC/Argus Vickers. Alternative asset sectors displayed in red.

Platform voting deadlines for Edinburgh Worldwide Investment Trust