LONDON - JPMorgan Investment Trusts has disclosed the indicative gearing ratios for several of its investment trust companies as of November 29, 2024. Gearing is a measure of financial leverage that indicates the extent to which a company's operations are funded by lenders versus shareholders.
The announcement, which was made on Monday, provides insight into the financial strategies of the trusts, with the gearing ratios ranging from -0.1% for JPMorgan Global Growth & Income PLC to 14.7% for The Mercantile Investment Trust (LON:MRCM) PLC.
The ratios for other trusts were reported as follows: JPMorgan American Investment Trust PLC at 2.7%, JPMorgan Asia Growth & Income PLC at 0.3%, JPMorgan China Growth & Income PLC at 4.4%, JPMorgan Claverhouse Investment Trust PLC at 7.3%, and JPMorgan European Growth & Income PLC at 5.3%.
Additionally, JPMorgan Emerging Markets Investment Trust PLC reported a gearing ratio of 0.6%, while JPMorgan European Discovery (NASDAQ:WBD) Trust PLC and JPMorgan US Smaller Companies Investment Trust PLC both reported ratios of 4.4% and 4.5% respectively. JPMorgan Indian Investment Trust PLC announced a ratio of 3.7%, and JPMorgan Japanese Investment Trust PLC reported the second-highest ratio at 14.2%.
The lowest gearing ratio was reported by JPMorgan Global Growth & Income PLC, indicating a slightly negative leverage which may suggest a net cash position or a conservative approach to borrowing.
Gearing ratios are a significant indicator for investors, as they can influence the risk profile of an investment trust. Higher gearing may result in increased returns when markets rise but can also lead to greater losses in declining markets.
The provided ratios are indicative and reflect the company's financial position on the specified date. The information is based on a press release statement and is intended for general informational purposes. It is important for investors to consider these ratios within the broader context of the market conditions and the specific investment strategies of each trust.
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