Why is my investment trust asking me for a continuation vote?

If you are a shareholder in an investment trust, you may receive communications asking you to participate in a continuation vote.

A continuation vote for an investment trust is simply a vote to ask if the trust should keep going as an investment vehicle, or if it should be shut down. When an investment trust is wound up, the assets are liquidated over time and money returned to shareholders.

In 2024, seven investment trusts were liquidated. Four continuation votes happened in late May 2025, while there are nine votes in June 2025. A further 16 investment trusts are scheduled hold continuation votes before the end of 2025, with the exact dates still to be confirmed.

Investment trust continuation votes in June 2025

Source: theaic.co.uk / Morningstar. Excludes companies in realisation.

The rules around when an investment trust holds a continuation vote varies from company to company. But they are by no means uncommon: some happen annually, and some are triggered by certain events within the trust.

For example, if the discount, or the difference between the net asset value (NAV) and share price, of your investment trust becomes too wide, it might cause a continuation vote.

How do I know if my trust is holding a continuation vote?

AJ Bell customers will be notified if they are a shareholder of an investment trust holding a continuation vote.

The votes will be handled by a third-party company called Broadridge, which will send you a notification directly and you can then vote online via its portal.

Why should I participate?

Continuation votes are an opportunity to assess if the trust is functioning in a way that you expect it to, and if you still believe it’s a worthwhile investment.

You can access further information about your investment trust to make an informed decision on your vote through researching companies on the AIC website. Here, you can find the current discount of the trust, NAV, share price, and information on the inner workings, such as some of the top companies it invests in.

Key points to consider

Here are a few things that may be worth considering in your decision:

1. Is the trust serving its intended purpose? Often investment trusts have specific areas of specialisation. Check your trust is still investing in the areas to which you were intending to gain exposure.
2. Is the trust being managed appropriately? By looking at the NAV of the trust, you can see how its investments have performed over the past few years. It’s important to remember that even the best investments have periods of underperformance, but if the performance has lagged and you do not feel that the managers have responded appropriately, you may consider voting in favour of the trust being wound up.
3. Is there a wide discount, and if so, why? It’s common for many investment trusts to trade at a discount, meaning the price of the trust is less than the price of the underlying assets. But it’s important to understand why this is happening, and if the prices are dramatically different, understand if the difference between the two can close.
4. Is there another reason or factor? Sometimes, investment trust votes can be brought about if a major stakeholder decides to call a vote, or if something important changes within the company. Having a quick look for news about your investment trust should give you a clue if this is happening.

Does my vote matter?

As a single shareholder, it may not seem like it makes much of a difference if you choose to cast your vote. But it is important to not discount your voice. According to the Association of Investment Companies, 23% of the wealth in investment trusts comes from private investors.

Earlier this year, seven investment trusts held votes for potential policy change, prompted by hedge fund Saba Capital. AJ Bell customers in these trusts made their voices heard, with turnouts of over 60% for each one of the trusts and going up to 78%. For each of the seven trusts, a majority of private investors voted against the changes, and none of them went through.

Voting, even with a small number of shares, can seem menial, but it’s made significant differences in the past. Continuation votes can be particularly important, as it won’t just be a change of policy, but the shutting down of the trust entirely.