LONDON - JPMorgan (NYSE:JPM) Investment Trusts has released the latest indicative gearing ratios for its range of investment trusts, as of December 13, 2024. These ratios are a measure of the trusts' debt levels in relation to their equity capital, which can impact investment risk and performance.
The gearing ratios vary across the trusts, with JPMorgan Japanese Investment Trust PLC reporting the highest at 13.9%, and JPMorgan Global Growth & Income PLC showing a negative gearing at -0.2%, indicating a net cash position. JPMorgan American Investment Trust PLC reported a gearing ratio of 2.7%, while JPMorgan Emerging Markets Investment Trust PLC disclosed a negative gearing of -0.5%.
JPMorgan Claverhouse Investment Trust PLC and The Mercantile Investment Trust (LON:MRCM) PLC reported higher gearing ratios of 7.2% and 15.1% respectively, suggesting a more aggressive borrowing strategy. On the other hand, JPMorgan European Discovery (NASDAQ:WBD) Trust PLC and JPMorgan European Growth & Income PLC revealed ratios of 5.1% and 5.5%, indicating moderate levels of gearing.
The company's Asia-focused trusts, JPMorgan Asia Growth & Income PLC and JPMorgan China Growth & Income PLC, presented ratios of -0.1% and 4.4%, respectively. JPMorgan Indian Investment Trust PLC reported a negative gearing ratio of -0.4%.
For investors, these ratios can be indicative of the trusts' investment strategies and potential exposure to debt-related risks. The information is based on a press release statement and provides a snapshot of the financial leverage employed by these investment vehicles as part of their management strategies. The announcement was made by the respective company secretaries, with contact details provided for further queries.
It is important for shareholders and potential investors to consider these ratios in the context of each trust's overall investment approach, portfolio composition, and market conditions. Gearing can amplify both gains and losses, depending on market movements and the performance of the underlying investments.
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