The Association of Investment Companies (AIC) has added extra data to its services that will give investors a better idea of how their portfolios might fare.
While before only gross gearing figures were published, the organisation will now include net gearing figures that take into account the amount of cash and cash equivalents in a company's portfolio.
Although gearing can benefit portfolios, Ian Sayers, director general of AIC, wants investors to know about the negatives and how it can sometimes drag portfolios.
He said: "We believe this change to our data will help investors understand more fully the impact of gearing on their investment company's portfolios.
"Gearing is a unique feature of investment companies which over the long-term can enhance performance. It is important to recognise the impact of gearing as it works by magnifying the company's performance."
Figures from the Investment Management Association in January showed that confidence among investors was higher than at the same point a year ago with many people believing that the worst of the financial crisis was over.
Investment organisation improves data for investors
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Investment organisation improves data for investors
Thu, 25 Feb 2010
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