Schroder Income Growth (SCF) made its first share buyback in 16 years last month as the board of the UK equity income fund and ‘dividend hero’ sought to demonstrate its conviction in the portfolio run by Sue Noffke amid a sector-wide weakening in share prices.
The sole transaction involving 38,000 shares – now held in treasury for possible reissuance – is not much for an investment trust with nearly 69.5 million shares remaining, but it is significant in being the trust’s first purchase of its stock since 2008.
The board made its move on 16 April, buying the shares at 265.7p when they traded 12% below net asset value, wider than the trust’s average one-year discount of 7%.
