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Data as at: 25/04/2024

Gearing

Gearing (%)
64
Net cash (%)
0
Historic gearing 3yr low/high (%)
0 / 65
Gearing range (%)
N/A
Gearing policy

The group primarily intends to use long-term debt to provide leverage for investment in Renewable Assets and may utilise short-term debt, including, but not limited to, a revolving credit facility, to assist with the acquisition of investments.

Borrowing limits

Long-term debt shall not exceed 50% of Gross Assets and short-term debt shall not exceed 25% of Gross Assets, provided that total debt of the group shall not exceed 65% of Gross Assets, in each case measured at the point of entry into or acquiring such debt.

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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FE fundinfo logo Company documents provided by FE fundinfo.