Aberdeen Investment Trusts has published an indicative net gearing disclosure for abrdn UK Smaller Companies Growth Trust plc (AUSC), revealing a net gearing ratio of 4.2% as at the close of business on 23 October 2026. The figure was calculated in accordance with the recommendations of the Association of Investment Companies (AIC), using debt valued at par and net of cash held. The disclosure provides investors with a transparent snapshot of the trust's leverage position relative to its underlying assets. Gearing levels are a closely watched metric for investment trust investors, as they indicate the degree to which borrowed capital is being deployed to amplify exposure to the portfolio.

Key Points

  • abrdn UK Smaller Companies Growth Trust plc (AUSC)
  • The trust has reported an indicative net gearing ratio of 4.2% as at 23 October 2026, calculated at debt at par
  • Debt at fair value gearing is disclosed as not applicable (N/A); underlying assets are valued on a fair value basis using bid prices or, where more appropriate, a last trade basis
  • Investors may wish to monitor future gearing disclosures for any directional shift in the trust's leverage strategy amid UK smaller companies market conditions

AUSC Net Gearing Ratio of 4.2% Calculated Under AIC Methodology at 23 October 2026 Close

The announcement states that the net gearing ratio of 4.2% has been calculated in line with AIC recommendations, with debt measured at par value and net of any cash held by the trust. Underlying financial assets are valued on a fair value basis, using bid prices or, where considered more appropriate, a last trade basis. The trust's Legal Entity Identifier is recorded as 213800UUKA68SHSJBE37. No fair value debt gearing figure has been provided, with that column listed as not applicable in the disclosure.

What the Debt at Par Valuation Approach Means for AUSC's Gearing Calculation

By valuing debt at par rather than fair value, the trust follows a standard AIC-recommended convention that records borrowings at their face or nominal value. This approach means any movement in the market value of the trust's debt instruments does not alter the reported gearing figure. The absence of a fair value gearing figure — recorded as N/A — suggests the trust does not consider an alternative fair value debt calculation to be applicable in this instance, which is consistent with certain types of fixed-rate or simple borrowing structures commonly used by UK investment trusts.

Focus on UK Smaller Companies as the Trust's Underlying Investment Mandate

abrdn UK Smaller Companies Growth Trust plc is an investment trust focused on UK smaller companies, a segment of the equity market that can exhibit higher volatility and sensitivity to domestic economic conditions than large-cap peers. Gearing within such a trust amplifies both potential gains and losses from the underlying portfolio. A net gearing ratio of 4.2% indicates a relatively modest level of leverage. Investors tracking the trust's strategy may consider this figure alongside portfolio composition and NAV performance data when assessing risk exposure within the UK smaller companies growth segment.