- Many trusts are due a continuation vote in the coming months
- In some cases, this could spell further uncertainty
Several investment trusts face contentious continuation votes in the coming months, putting further pressure on a sector already rife with consolidation.
With share price discounts to net asset value (NAV) remaining wide, busy merger and acquisition activity has already seen several trusts disappear this year. Corporate actions to address discounts and underperformance have also increased, but more than 20 trusts are expected to face continuation votes between now and June 2025. While many of these should prove uncontroversial, analysts think some names are at risk of enforced wind-down or other reform measures.