Scottish Mortgage Investment Trust PLC (LSE:SMT) has signed off on a £1 billion share buyback programme over the following two years.
This marks a considerable escalation in shareholder returns for the FTSE 100-listed investment trust- in the past two years, buybacks totalled just £353 million.
It has been a strong period of cash generation for Scottish Mortgage, with free cash flow more than doubling over the past 12 months.
Chairman Justin Dowley commented: "We remain committed to using share repurchases strategically to enhance liquidity in our shares and to seek to facilitate trading around net asset value.
Our company has a strong balance sheet, and its portfolio companies are delivering strong operational results.
“We are acting upon this investment opportunity by materially increasing the capital available to our liquidity policy over the next two years with the aim of maximising returns for our shareholders."
Scottish Mortgage shares opened 1.7% higher at 174p.