Dunedin Income Growth (DIG) has increased gearing for the first time in four years after Abrdn fund managers Ben Ritchie and Rebecca Maclean found more quality growth stocks trading at good prices in a volatile but recovering UK market.

Drawing down £6m of borrowing to lift gearing to 9.5% from 6.8%, and using the proceeds from the partial sale of private assets group Intermediate Capital (ICG) after a strong period of performance, the managers added several new names to their UK equity income portfolio in the half year to 30 July.

Notable among these was the plastic-piping group Genuit (GEN), formerly Polypipe. Although a cyclical stock that the managers would not normally buy, they said its focus on sustainability offered structural growth and improved margins.