Artemis UK Future Leaders reported further transactions in its own shares on 3 November, its latest in a run of buyback notices since late October. The announcements came with the shares at about a 13% discount to estimated net asset value.

What happened

A listing of press releases on Fidelity's factsheet page shows "Transaction in Own Shares" notices from Artemis UK Future Leaders (LSE:AFL) dated 28 and 29 October and 2 and 3 November. A Total Voting Rights announcement followed on 2 November, alongside regular Net Asset Value releases.

The listing gives the headlines only. The number of shares and prices paid in these latest transactions were not retrieved, so this article does not state them.

The Buybacks extend a pattern set out in the Annual Report for the year to 31 January 2026, published on 28 April. In that year, the company repurchased 606,699 shares, about 2.0% of its capital, at an average of 372.76p.

Why it matters for investors

AFL (LSE:AFL) is a constituent of the FTSE All-Share index and sits in the Investment trust sector, specialising in UK smaller companies. Buying shares below Net Asset Value (NAV) is modestly helpful to the NAV per share of remaining holders, and it is one tool boards use to manage a discount.

The discount remains substantial. Fidelity's factsheet, updated at 16:19 GMT on 3 November with prices delayed by at least 15 minutes, showed a sell price of 397.00p and a buy price of 401.00p. It displayed an estimated NAV of 462.972p and a discount of 12.95%, slightly narrower than prices alone would imply. (LSE:AFL)

At the January year end the discount stood at 11.2%, having narrowed from 16.6% a year earlier. Today's figure suggests that some of that progress has been given back, despite the continued repurchases.

The wider UK small-cap debate matters here too. In its annual report, the investment manager said it was confident that "when it improves, the impact on small-caps will be material".

How the shares have performed

The factsheet displayed a move of about 1.00% lower on the day, or roughly 4p. Compared with 386.00p at 31 January, the sell price is about 2.8% higher, while the estimated NAV is about 6.5% above the 434.66p reported at that date, before allowing for dividends.

The year to January itself was difficult in relative terms. NAV total return was flat at 0.0%, while the Deutsche Numis Smaller Companies plus AIM ex-investment companies benchmark returned 16.1%. Share price total return was 7.1%, helped by the narrowing discount.

Secure Trust Bank was the largest contributor, with Avon Technologies, Chemring and Serco also rising strongly, and Takeover activity including H&T Group and Alpha Group added further support. Future and Hilton Food Group were the main detractors.

The total Dividend for that year was 15.44p, up 2.9% from 15.00p and equivalent to a 4.0% Yield at the year-end share price. It included a final payment of 3.89p, due on 11 June 2026 subject to Shareholder approval.

What to watch next

Fidelity's page lists half-yearly results as having last been issued in October 2026, although the document itself was not retrieved in today's research. The next full-year results are forecast for April 2027, with the Annual General Meeting pencilled in for June 2027.

The chairman has said the board remains confident now that the portfolio is fully aligned to the Artemis investment philosophy. The practical test is whether NAV begins to close the gap with the benchmark after last year's shortfall.

Further own-share notices will also show the pace of repurchases. Investors can compare them with the discount to judge whether the buyback is having a visible effect.