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Trust buybacks are popular – but are they working?

A record number of trusts are buying back shares, but even chunky programmes can't work miracles on discounts
Trust buybacks are popular – but are they working?Published on November 11, 2024
  • We look at the trusts that bought back the most
  • Buying back shares does not necessarily narrow discounts

With most of the sector trading well below its net asset value (NAV) for over two years, investment trusts have taken a range of actions to appease their shareholders and combat discounts.

Buybacks have been a popular option, especially this year. In September 2024 alone, 120 trusts bought back shares, which Winterflood says is the highest number in a calendar month since its records began in 1996. Some £5.4bn-worth of shares were repurchased in the first nine months of the year in total, a huge jump from previous years.

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