The number of investment trust investors who vote their shares has risen over the past two years, analysis from the Association of Investment Companies (AIC) has shown.

Almost half (49 per cent) of self-directed private investors voted their shares this year, or have had someone vote them on their behalf, up from 38 per cent in 2023.

This trend was also observed among financial advisers and wealth managers, with 56 per cent of intermediaries who use investment trusts either voting shares on clients’ behalf or helping them vote, up from 49 per cent two years ago.

Voting was found to be more common among wealth managers (74 per cent) than financial advisers (32 per cent).

Of the private investors who did not vote their shares, 54 per cent said the main reason was that they did not think it would change anything.

Other reasons included a lack of interest (16 per cent), being unaware they could vote (14 per cent), not having time (12 per cent), and finding the process too complex (12 per cent).

Meanwhile, the top reason among financial advisers and wealth managers was not having time (38 per cent), followed by a lack of awareness they could vote (33 per cent), thinking that voting would not change anything (19 per cent), not being interested (17 per cent), and finding the process too complicated (4 per cent).

The proportion of financial advisers and wealth managers attending investment trust AGMs rose slightly over the past two years, from 10 per cent to 13 per cent, while 18 per cent of private investors attended AGMs, up from 13 per cent in 2023.

“The importance of voting has come into focus over the last year due to increased corporate activity and heightened activist involvement in investment trusts,” commented AIC chief executive, Richard Stone.

“More investors are realising that their vote counts. In many cases it can influence the future of their investment trust, or determine whether or not it continues in its current form.

“It’s good news that voting on many platforms has got easier. However, some barriers remain and we would urge the government to lose no time in implementing the Bill of Shareholder Rights set out by the Digitisation Taskforce, so that all shareholders get the chance to have their say.”

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