LONDON - abrdn Holdings Limited disclosed on Monday the indicative net gearing ratios for a selection of its investment trusts, as of the close of business on November 22, 2024. The data, calculated in line with the Association of Investment Companies' recommendations, shows varying levels of borrowed capital relative to shareholders' equity across the firm's portfolio.
Shires Income plc, with a Legal Entity Identifier (LEI) of 549300HVCIHNQNZAYA89, reported a net gearing ratio of 16.7% based on debt at par and 16.4% when considering debt at fair value. Meanwhile, abrdn UK Smaller Companies Growth Trust plc, identified by LEI 213800UUKA68SHSJBE37, showed a lower net gearing ratio of 6.9%, with no fair value ratio provided.
The abrdn Equity Income Trust plc and Asia Dragon Trust plc, with LEIs of 21380015XPT7BZISSQ74 and 549300W4KB0D75D1N730 respectively, reported net gearing ratios of 12.0% and 9.0%, without corresponding fair value figures. Dunedin Income Growth Investment Trust PLC (LEI: 549300PPXLZPR5JTL763) disclosed a net gearing ratio of 8.2% at par and 6.6% at fair value.
Additional investment trusts, including abrdn Asian Income Fund Limited (LEI: 549300U76MLZF5F8MN87), Murray International Trust (LON:MYI) PLC (LEI: 549300BP77JO5Y8LM553), and Murray Income Trust PLC (LEI: 549300IRNFGVQIQHUI13), reported net gearing ratios ranging from 6.0% to 10.5% at par, with fair value ratios provided where applicable.
abrdn New India Investment Trust plc and abrdn Asia Focus PLC, with LEIs of 549300D2AW66WYEVKF02 and 5493000FBZP1J92OQY70, reported net gearing ratios of 2.8% and 10.2% respectively at par, with the latter also providing a fair value ratio of 9.6%.
Gearing ratios are a key financial metric used by investment trusts to indicate the level of risk associated with their borrowing strategy. A higher net gearing ratio suggests that a trust is employing more leverage, which can amplify both gains and losses.
The information, released through RNS, the news service of the London Stock Exchange (LON:LSEG), is based on a press release statement and is intended for use by investors and market observers to assess the financial strategies of the respective investment trusts.
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