Smithson board seeks shareholder approval as it eyes more buybacks

6 February meeting

The board of Smithson investment trust has posted a circular to shareholders seeking approval to shift money within the trust which would allow it to fund more share buybacks.

The circular notified shareholders of a general meeting on 6 February, which will include a special resolution to reduce the company's share premium account so it can put more money into distributable reserves, which can be used to fund buybacks. At the beginning of 2022, the £2.6bn trust moved to a discount, which it has been struggling with since. It is currently sitting on a 7.3% discount, according to Morningstar data. In response, the board began purchasing its shares in the market. From 29 April 2022 to 16 January 2023, the board purchased 6 million ordinary shares, which cost £...