LONDON - JPMorgan Investment Trusts has released the indicative gearing ratios for its family of investment trusts as of January 10, 2025. The gearing ratio, which measures the level of a company's debt related to its equity capital, is a key financial metric that indicates the degree to which a firm's operations are funded by lenders versus shareholders.
The ratios announced range from -1.3% for the JPMorgan Emerging Markets Investment Trust PLC to 16.3% for The Mercantile Investment Trust (LON:MRCM) PLC. Notably, a negative gearing ratio, as seen with JPMorgan Asia Growth & Income PLC at -0.8% and JPMorgan Indian Investment Trust PLC at -0.3%, suggests that the company has more cash than debt.
On the other end of the spectrum, The Mercantile Investment Trust PLC and JPMorgan Japanese Investment Trust PLC reported the highest gearing ratios of 16.3% and 15.7%, respectively. These figures represent the proportion of borrowing compared to the shareholders' equity in the trusts.
The announcement, made on Monday, provides investors with an update on the financial leverage of these trusts, which can impact both the risk profile and potential returns of the investment vehicles. Gearing ratios are subject to change and can be influenced by market conditions and management decisions.
Investors often monitor gearing ratios closely as they can affect a trust's share price performance and dividend payouts. High gearing can lead to higher returns when markets rise, but it can also increase the risk of losses when markets fall.
The information released is based on a press release statement from JPMorgan Investment Trusts and is disseminated by RNS, the news service of the London Stock Exchange (LON:LSEG). It is important for investors to consider these figures in the context of their investment strategies and risk tolerance. The contacts and company secretaries listed in the release are responsible for fielding any queries regarding these announcements.
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