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

Data as at: 02/05/2024

Gearing

Gearing (%)
0
Net cash (%)
8
Historic gearing 3yr low/high (%)
0 / 0
Gearing range (%)
N/A
Gearing policy

The Directors intend to use gearing to enhance the potential for income returns and long-term capital growth, and to provide capital flexibility. However, the Company will always follow a prudent approach for the asset class with regards to gearing, and the Group will maintain a conservative level of aggregate borrowings.

Borrowing limits

The Company’s target medium-term gearing for the Group will be up to 40% of GAV, calculated at the time of drawdown. The Group may enter into borrowing facilities at a higher level of gearing at the intermediate subsidiary level or at the Project SPV level, provided that the aggregate borrowing of the Group shall not exceed a maximum of 45% of GAV, calculated at the time of drawdown.

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.