LONDON – JPMorgan Investment Trusts has released the latest indicative gearing ratios for its suite of investment trusts, with figures ranging from -1.2% to 15.0% as of January 17, 2025. The update, which reflects the trusts’ levels of borrowing in relation to their net asset values, is a routine disclosure for the investment community.
Gearing is a measure used by investment trusts to amplify their investment exposure. While it can enhance returns in favorable market conditions, it can also increase losses when markets fall. The ratios announced indicate varied levels of gearing across the trusts managed by JPMorgan.
The JPMorgan Japanese Investment Trust PLC reported the highest gearing at 15.0%, followed by The Mercantile Investment Trust (LON:) PLC at 14.2%. In contrast, the JPMorgan Emerging Markets Investment Trust PLC showed a negative gearing ratio of -1.2%, indicating that it may have more cash than debt or is employing strategies that result in a net cash position.
Other trusts, such as the JPMorgan American Investment Trust PLC and JPMorgan Global Growth & Income PLC, reported lower gearing levels of 2.5% and 0.2% respectively. These figures suggest a more conservative approach to borrowing.
The announcement also included indicative gearing ratios for trusts focusing on Europe, Asia, China, and UK small cap growth and income, with the JPMorgan European Discovery (NASDAQ:) Trust PLC and JPMorgan US Smaller Companies Investment Trust PLC reporting ratios of 6.4% and 6.1% respectively.
Investors often monitor gearing ratios as they can impact the risk and return profile of an investment trust. It’s important to note that these ratios are indicative and subject to change based on market conditions and the trust’s investment decisions.
The information provided in this update is based on a press release statement and is intended for general informational purposes. It does not constitute investment advice or an endorsement of JPMorgan Investment Trusts or their investment strategies.
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