Aberdeen Equity Income Trust plc (AEI) has disclosed an indicative net gearing ratio of 8.4% as at the close of business on 6 November 2026, calculated in accordance with the Association of Investment Companies' recommendations. The disclosure was made by Aberdeen Investment Trusts on 9 November 2026 as part of a routine gearing update. For income-focused investment trust investors, gearing levels are a closely watched metric, as they indicate the degree to which borrowed capital is being deployed to amplify portfolio exposure. The figure is based on debt valued at par, with no fair value debt adjustment applicable to this trust.

Key Points

  • Aberdeen Equity Income Trust plc (AEI), Legal Entity Identifier: 21380015XPT7BZISSQ74
  • AEI's indicative net gearing ratio stood at 8.4% as at close of business on 6 November 2026
  • Debt is valued at par; no fair value debt figure was disclosed, as it is listed as not applicable for this trust
  • Investors may wish to monitor future gearing disclosures for any material change in the trust's leverage position

AEI's 8.4% Net Gearing Ratio Calculated Under AIC Methodology

The net gearing ratio of 8.4% was calculated in accordance with the recommendations of the Association of Investment Companies (AIC), the industry body that sets standard reporting guidelines for UK-listed investment trusts. Under this methodology, underlying financial assets are valued on a fair value basis using bid prices or, where more appropriate, on a last trade basis. Debt, net of any cash held by the trust, is valued at par. The announcement confirms that no fair value debt adjustment applies to Aberdeen Equity Income Trust, with that column listed as not applicable in the disclosure.

Aberdeen Investment Trusts Issues Routine Gearing Update Across Multiple Investment Companies

The gearing disclosure was issued by Aberdeen Investment Trusts, which manages a range of listed investment companies and publishes these indicative figures periodically as part of standard transparency obligations. Aberdeen Equity Income Trust is an income-focused investment trust, and the use of gearing — borrowing to invest — is a common tool employed by such vehicles to seek enhanced returns for shareholders above what an ungeared portfolio might otherwise generate. The level of net gearing reflects the trust's current deployment of debt relative to its net asset base, after netting off cash holdings.

What the 8.4% Net Gearing Figure Means for AEI Shareholders

A net gearing ratio of 8.4% indicates that Aberdeen Equity Income Trust is currently employing a moderate level of leverage within its portfolio. While gearing can enhance returns in rising markets, it also amplifies losses when markets fall, representing a specific risk for shareholders in the trust. Investors following AEI should note that the figure disclosed is described as indicative, meaning it reflects conditions as at a specific date and may change as market valuations and cash positions move. The company did not disclose any further financial metrics or portfolio details in this announcement.