Finsbury Growth & Income Trust has intensified its share buyback program, repurchasing an additional 153,246 shares at 885.55 pence each, further reducing its float. The trust now holds over 87 million treasury shares—nearly 39% of its total outstanding shares—highlighting aggressive capital allocation amid a significant discount to net asset value (NAV). Despite an NAV of 954.71 pence per share, the stock trades at a 7% discount, reflecting sustained market skepticism.
Strategic Moves Fail to Close Valuation Gap
The trust’s buyback strategy aims to narrow the discount by shrinking supply, yet the gap persists. Recent purchases of 250,000 shares at 885.95 pence—well below NAV—underscore management’s confidence but also reveal investor caution. With 137.9 million shares remaining in circulation, the high treasury stake risks reducing liquidity. Analysts suggest fundamental concerns may outweigh buyback efforts, leaving the stock’s revaluation dependent on broader market sentiment.
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