LONDON - JPMorgan’s range of investment trusts have announced their latest indicative gearing ratios, reflecting the trusts’ levels of borrowing compared to their net asset values as of January 3, 2025. Gearing is a significant indicator of investment strategy, affecting potential returns and risk levels for shareholders.
The gearing ratios vary across the trusts, with JPMorgan Japanese Investment Trust PLC showing the highest level at 15.4%, and JPMorgan Global Growth & Income PLC reporting a negative ratio of -0.3%, indicating net cash positions. The Mercantile Investment Trust (LON:MRCM) PLC follows closely with a gearing ratio of 16.0%, while JPMorgan UK Small Cap Growth & Income PLC and JPMorgan US Smaller Companies Investment Trust PLC report ratios of 9.0% and 7.3%, respectively.
Other trusts, including JPMorgan European Growth & Income PLC and JPMorgan European Discovery (NASDAQ:WBD) Trust PLC, reported gearing ratios of 4.6% and 6.2%, respectively. JPMorgan American Investment Trust PLC’s ratio stood at a modest 2.5%.
Negative gearing ratios were also reported by JPMorgan Asia Growth & Income PLC and JPMorgan Emerging Markets Investment Trust PLC at -0.2% and -0.1%, respectively, while JPMorgan Indian Investment Trust PLC indicated a ratio of -0.5%.
The announcement, which is based on a press release statement, provides a snapshot of the trusts’ financial strategies and is a key piece of information for investors assessing the risk and leverage profiles of these investment vehicles. Gearing can amplify gains in rising markets but also increases potential losses during downturns.
The update is part of routine communications from JPMorgan’s investment trusts, ensuring shareholders are informed about the financial positioning of the funds. The ratios are subject to change and are indicative of the trusts’ positions on the specified date. The London Stock Exchange (LON:LSEG)’s news service RNS, approved by the Financial Conduct Authority, disseminated the information.
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