Share buybacks prove costly for Henderson

an inflexible share buyback policy against a widening discount to nav leads to the winding up of henderson's absolute return portfolio

Later this month shareholders in the Henderson Absolute Return Portfolio (Harp) will meet to discuss how to wind up the fund. It is a sad end for a trust launched with such expectations of success just three years ago and a blow for Hendersons, a group with a strong name in running investment trusts and with a reputation from staying well away from failure. Noticeably, it did not launch a split cap during the bull market. Launched in April 2001, Harp initially raised some £115m, the majority of which was provided by institutional investors. The trust invested in a portfolio of long-short...