Revealed: Investment trusts using borrowing to buy market lows

Eight trusts highlighted

Kathleen Gallagher
clock • 5 min read

One of the great advantages of investment companies is their ability to gear, which can be used in stressed market conditions to acquire assets at bargain prices. Investment Week worked with the Association of Investment Companies (AIC) to figure out which trusts have been using that capability in the recent market downturn.

To get a clear picture of which trusts were putting money to work the AIC looked at Morningstar data to reveal which portfolios had had an increase in gearing (%) of at least three percentage points between December 2021 and April 2022, along with an increase in debt (in £) of at least 20% during the same time frame. The data was then verified with the companies themselves, showing that eight trusts, across various sectors, had met the criteria. Schroder UK Public Private's Creed defends global remit change Nick Britton, head of intermediary communications at the AIC, explained gea...

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