Overview Performance Portfolio ESG Dividends Charges Gearing Research Announcements Management Documents Invest

Data as at: 18/04/2024

Gearing

Gearing (%)
0
Net cash (%)
1
Historic gearing 3yr low/high (%)
0 / 20
Gearing range (%)
0 / 20
Gearing policy

The level of borrowing is a matter for the Board, whilst the utilisation of borrowings is delegated to the Investment Manager. This utilisation may be subject to specific guidelines established by the Board from time to time.

Borrowing limits

The Company may employ gearing of up to 25% of net assets. The effect of gearing may be achieved without borrowing by investing in a range of different types of instruments, including derivatives

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.