JPMorgan American cuts gearing – JPMorgan American‘s gearing policy is to operate within a range of 5% net cash to 20% geared in normal market conditions, with a strategic (i.e. long-term target) level of gearing being set at 10% plus or minus 2% (i.e. a range of 8% to 12%). On 8 June 2018, the fund announced that it was cutting its tactical (short-term target) gearing level to a range of 3% to 7% for the time being. The manager now believes that current market conditions mean that it would be a good idea to reduce its gearing again, this time to 0% plus or minus 2%.
Commenting on this change of gearing level, Dr Kevin Carter, the chairman of the company commented, “This change in tactical gearing level reflects the increasingly cautious view of our manager, Garrett Fish. While the company will remain fully invested in US equities, reflecting long-term confidence in the investment opportunities offered by the world’s largest equity market, the manager’s quantitative tools and qualitative views on valuation measures and broader economic indicators all point to a medium term view in which expected returns may be muted.”
JAM : JPMorgan American cuts gearing