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Negative gearing for investment trust

I've recently dipped back into the market following a house purchase and have come across JP Morgan Emerging Markets Investment Trust PLC.

I have read through some documentation of the trust including factsheet and noticed it currently has negative gearing.

I understand the concept of gearing and have always seen it as a positive figure, however I can't quite get my head around negative gearing.

Any further insight or explanation would be greatly appreciated.

Factsheet can be found here
"If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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Comments

  • Tom99
    Tom99 Posts: 5,371 Forumite
    1,000 Posts Second Anniversary
    I think it means they are holding 0.3% cash.
    The are allowed gearing between -10% to +20% and allowed to hold up to 10% cash.
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