Wellington trust relaunch

US Smaller Companies run by North American mutual funds group Wellington is to convert into an Oeic after its unsuccessful attempt to reduce its discount volatility. The £101m trust has been one of the most active in the buyback market, cancelling 30% of its shares in issue and buying virtually all of its warrants. It was also the first trust to buy back its shares during a closed period. However, its discount continued to drift out past 15% levels. As at close of business on 8 May it was trading on a discount to NAV of 16.4%. In July 1999 the trust set a target of maintaining a discount o...