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Investment trusts on track for record buybacks this year ? | LSE:SMT
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Investment trusts on track for record buybacks this year ?

Published: 12:20 29 May 2024 BST

Scottish Mortgage Investment Trust PLC - Investment trusts on track for record buybacks this year  

Investment company buybacks are set to reach a record high this year as the UK’s listed funds continue to capitalise on the wide gaps between their market and underlying values.

Investment trusts and funds bought back a total of £2.2 billion worth of shares in the first four months of 2024, a 106% jump compared to the same period last year, data from Winterfloods revealed.

Last month, 118 investment trusts purchased shares back from stakeholders, marking the highest figure recorded since Winterflood’s research began in 1996.

Scottish Mortgage Investment Trust PLC (LSE:SMT) , one of the UK’s largest investment trusts, repurchased over £75 million worth of shares in April and a further £300 million in a single day last week.

It is part of the FTSE 100 firm’s plan to buy back £1 billion worth of its shares.

Even when excluding Scottish Mortgage from the research, investment trust buybacks were still up over 90% year-on-year.

2023 wasn’t a quiet year either, with a record £3.6 billion worth of shares being bought back by the sector in the twelve months.

It comes as the investment trusts trade at an average discount of 7.7% when comparing the firm’s share prices to their net asset value.

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