The £160m Martin Currie Global Portfolio trust, managed in Edinburgh by Tom Walker, is to introduce a mechanism to eliminate the trust's discount.
The trust, currently trading at a discount of around 6%, has decided to use its share buyback powers with the objective of ensuring that the company's share price trades at or around NAV (net asset value) in normal market conditions, the board said yesterday.
It has promised to be "active in both issuing shares at a premium to NAV when there is demand, and buying back shares at a discount to NAV when natural supply exceeds demand" to increase liquidity.
Chairman Neil Gaskell, who also chairs the £394m Aberdeen Asian Smaller Companies trust, added: "Following the successful change in investment mandate two years ago and the strong performance of the trust since then, the discount has gradually narrowed and so the board decided to take this opportunity to make the trust more attractive to shareholders."
The trust changed its mandate in 2011, adopting the FTSE World index rather than the FTSE All-Share as its benchmark.
It outperformed the benchmark by 2.5% in the year to 31 January 2013.
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