Unpacking BlackRock Trusts' Massive Buy-Backs: What do They Mean for the Market?

In a striking move, BlackRock trusts have been undertaking a spate of massive buy-backs of their own shares. Leading the charge is the giant of the investment world, BlackRock Throgmorton Trust plc, which has announced the purchase of 50,000 of its Ordinary Shares at an average price of 542.14 pence per share to be held in treasury. The purchase will be settled by 01 April 2025, increasing the company’s issued share capital to a whopping 78,596,864 Ordinary Shares, excluding the 24,613,000 shares which are already held in treasury. The BlackRock World Mining Trust plc is hot on Throgmorton’s heels, having purchased a notable 100,000 of its Ordinary Shares at an average price of 478.32 pence per share, also to be held in treasury. Following settlement, expected on 03 April 2025, the trust’s issued share capital will stand at a remarkable 189,248,036 Ordinary Shares, not including the 3,763,806 shares which have previously been placed in treasury. Rounding out this extraordinary triad is the BlackRock Income and Growth Investment Trust plc. Although the total volume of shares purchased has not been publicly disclosed, it is known that the transaction was carried out on the London Stock Exchange via J.P.Morgan Securities Limited. For the financial market, these buys represent more than just a routine transaction. In accordance with the FCA’s Disclosure Guidance and Transparency Rules, shares held in treasury are excluded when determining market participants’ obligation to disclose their interest in, or a change in their interest in, a company. Given this, it is crucial for the market to take note of the new figures released by the trusts post-settlement. Following these settlements, for instance, the Throgmorton trust will have nearly a quarter of its total issued share capital held in treasury. and the World Mining trust’s portion will be almost 2%. It remains to be seen what the long-term ramifications of these buy-backs will be both for the trusts themselves and for the wider investment world. One thing is for certain: all eyes are on BlackRock as it navigates these bold manoeuvers. For now, market participants and interested observers alike will be watching with bated breath as they await further developments in this intriguing saga.