Investment company shareholders steering clear of AGMs

Nearly nine in ten private investors in investment companies have rarely or never attended an annual general meeting (AGM), according to research from the Association of Investment Companies (AIC).

Among 203 private investors surveyed¹, more than two-thirds (69%) said they had never attended an investment company AGM before, with a further 17% saying they rarely attend. Only 9% said they sometimes attend and 4% said they attended often.

The most common reason given for non-attendance was the inconvenience of travelling to AGMs, selected by 59% of those who said they never or rarely attend. Other reasons cited included not having the time to attend (27%), the belief that attending AGMs would not change anything (26%), and a simple lack of interest (17%).

But nearly two-thirds (65%) of all respondents said they would be more likely to attend AGMs if there was an option to join them online².

The survey was conducted by Research in Finance.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Along with voting, AGMs are a key way for shareholders to make their voices heard and exercise the democratic rights they have as investors in investment companies.

“Our research shows that the main reasons for not attending AGMs are practical ones – a reluctance to travel or spare the time – rather than just a lack of interest. Around a third of investment companies now offer an option to attend their AGM online to boost participation. The AIC website lists upcoming meetings for every member investment company, including AGMs and shareholder presentations.”

One 66-year-old investor in the survey commented: “I do wish that more AGMs would be held by video, Teams meet, or something bigger than that because it would be interesting to actually hear what the leaders have to say and watch them answer questions. I would enjoy that experience and I think I'd benefit from it, but to be in a big room in a hotel somewhere, I wouldn't even consider it.”

Information on the dates and locations of AGMs can be found on the Upcoming meetings page on the AIC’s website. An option to attend online is indicated by an icon and investors can access more details on the meeting in a single click.

Voting investment company shares

With many platforms now offering their customers the ability to vote their shares online, 20% of respondents to the survey said they often vote their shares, 15% sometimes vote their shares, 25% do it rarely and 35% never.

Among those who never or rarely vote their shares, 41% said that they didn’t think voting would change anything. Other reasons given included not being interested in voting (20%), finding the process too complex (17%), and being unaware that they could vote (13%).

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “It has been good to see big investment platforms making it easier for customers to vote their shares. Our Shareholder Engagement Award, judged by the lang cat, recognises the platform that best helps their customers to vote and attend AGMs, participate in corporate actions and access documents and data. We know that more improvements in this area are in progress and look forward to further developments.”

More information on the AIC’s Shareholder Engagement Award can be found here.

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Notes to editors

1. The survey of 203 private investors in investment companies was conducted by Research in Finance on behalf of the AIC. Fieldwork was conducted between 19 July and 6 August, with in-depth interviews with selected participants taking place between 1 August and 14 August.
2. All 203 respondents were asked whether they would be more likely to attend investment company AGMs if there was an option to join online. 65% said yes, 21% said no and 14% said they didn’t know.  
3. The Association of Investment Companies (AIC) represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s vision is for investment companies to be understood and considered by every investor. The AIC has 345 members and the industry has total assets of approximately £262 billion.
4. For more information about the AIC and investment companies, visit the AIC’s website.
5. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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