Overview Performance Portfolio Dividends Charges Gearing Research Announcements Management Documents Invest

Data as at: 25/04/2024

Gearing

Gearing (%)
0
Net cash (%)
53
Historic gearing 3yr low/high (%)
0 / 0
Gearing range (%)
N/A
Gearing policy

The Group may engage in borrowing (including stock borrowing), use of financial derivative instruments or other forms of leverage.

Borrowing limits

The aggregate principal amount of all borrowings shall at no point exceed 50% of Net Asset Value. Where the Group borrows, it may, in order to secure such borrowing, provide collateral or security over its assets, or pledge or charge such assets.

Ways in which investment companies can magnify income and capital returns, but which can also magnify losses.

At its simplest, gearing means borrowing money to buy more assets in the hope the company makes enough profit to pay back the debt and interest and leave something extra for shareholders.

how gearing works table

However, if the investment portfolio doesn’t perform well, gearing can increase losses. The more an investment company gears, the higher the risk.

Investment companies can usually borrow at lower rates of interest than you’d get as an individual. They also have flexible ways to borrow – for example they might get an ordinary bank loan or, for split capital investment companies, issue different classes of share.

Not all investment companies use gearing, and most use relatively low levels of gearing.

An indication of the maximum and minimum levels that the company would expect to be geared in normal market conditions.

Morningstar logo Data provided by Morningstar.

FE fundinfo logo Company documents provided by FE fundinfo.