The buyback helps to support the share price by providing a...

The buyback helps to support the share price by providing a buyer in the market to offset some of the selling. They are using their capital to buyback the shares and in effect shrinking the size of their balance sheet. It is a desperate maneuver normally conducted by a manager who doesn't want to lose control of their LIC to a predator like Wilsons or someone else. Pretty poor to be honest.