BlackRock Trusts on a Share Buying Spree: A Strategic Move Toward Treasury Holding

In what can be seen as a strategic move towards self-reliance and value enhancement, three BlackRock trusts - Throgmorton, Smaller Companies, and Greater Europe Investment Trusts - have announced independent purchases of their own ordinary shares. The aim seems clear: to stash these shares into the treasury, hence reducing the company’s circulating share capital. Each of these companies has thereby increased the proportion of their total share capital held in the treasury, signaling a keen focus on self-sustainability.

In a similar vein, The Smaller Companies Trust has bagged 32,000 of its ordinary shares at an average price of 1,307.35 pence per share, while the Greater Europe Investment Trust has added 25,000 of its own shares at an average price of 591.89 pence per share. These purchases will see 14.76% and 18.75% of these trusts’ total issued share capital being held in the treasury, respectively. This indicates a serious move towards self-investment and financial robustness.

As these companies move towards internal treasury holding, the market needs to exclude these treasury-held shares from reporting requirements under the FCA’s Disclosure Guidance and Transparency Rules while determining interest in the Company. Clearly, a strategic move is underway as these BlackRock Trusts look to bolster their financial status in the ever-evolving market landscape.