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LONDON - abrdn Holdings Limited disclosed the indicative net gearing ratios for its range of investment trusts, calculated based on recommendations from the Association of Investment Companies. The ratios, which reflect the level of borrowing compared to equity, were reported as of the close of business on Monday.
Shires Income plc (LSE:SHRS) reported a net gearing ratio of 15.4% using debt at par and 15.2% when calculated at fair value. abrdn UK Smaller Companies Growth Trust plc (LSE:AUSC) showed a ratio of 6.1%, with no fair value ratio provided. For abrdn Equity Income Trust plc (LSE:AEI), the ratio stood at 13.1%, while Dunedin Income Growth Investment Trust PLC (LSE:DIG) had ratios of 10.8% at par and 9.1% at fair value.
Aberdeen Asian Income Fund Limited (LSE:AAIF) presented a gearing ratio of 6.3%, Murray International Trust PLC (LSE:LON:MYI) at 5.9% at par and 4.4% at fair value, and Murray Income Trust PLC (LSE:MUT) at 10.3% and 9.1% respectively. The abrdn New India Investment Trust plc (LSE:ANII) and abrdn Asia Focus PLC (LSE:AAS) reported lower ratios of 3.0% and 4.0% at par, with the latter also providing a fair value ratio of 3.4%.
The net gearing ratio is a key indicator of an investment trust’s leverage, representing the proportion of its investments that are financed through debt. A higher ratio can indicate a more aggressive strategy with potentially higher returns but also increased risk.
The information, sourced from a press release statement, reflects the company’s financial positioning and is intended for investors and analysts monitoring the trusts’ use of leverage in their investment strategies. It was made available by RNS, the news service of the London Stock Exchange (LON:LSEG), and is regulated by the Financial Conduct Authority in the United Kingdom (TADAWUL:4280).
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