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Data as at: 18/04/2024

Gearing

Gearing (%)
0
Net cash (%)
1
Historic gearing 3yr low/high (%)
0 / 0
Gearing range (%)
N/A
Gearing policy

The Company is managed primarily on an ungeared basis although the Company may, from time to time, be geared tactically through the use of borrowings. Borrowings will principally be used for investment purposes, but may also be used to manage the Company’s working capital requirements or to fund market purchases of Shares.

Borrowing limits

Gearing represented by borrowing will not exceed 30% of the Company’s Net Asset Value, calculated at the time of draw down, but is typically not expected to exceed 20% of the Company’s Net Asset Value.

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.

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