Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Barnett's Edinburgh Trust ups gearing limit to 25%

Barnett's Edinburgh Trust ups gearing limit to 25%

Edinburgh Investment Trust has increased its maximum permitted gearing to 25% and refinanced a £100 million credit facility.

Following the trust’s annual general meeting today, the board told the stock market that shareholders had approved the increase in its gearing limits, but stressed that manager Mark Barnett (pictured) ‘has no intention’ of increase its current borrowing to that level.

The trust’s previous investment policy, which had not been reviewed for a number of years effectively capped borrowing at £200 million, equivalent to 16.3% of net asset value (NAV). Its net gearing is currently 15.8%.

Separately, Edinburgh said it had redeemed £100 million of 11.5% debenture stock and this has been refinanced with a £100 million credit facility with Bank of New York Mellon. The company also has £100 million of 7.75% existing debenture stock, which is to mature in 2022.

The trust announced it will pay a final dividend of 8.5p per share for the year to the end of March and this will be paid on 31 July. The stock went ex-dividend on 11 June.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Mark Barnett
Mark Barnett
13/72 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 71.00%
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter