JPMorgan American Investment Trust said it had adjusted its debt levels to adapt to an 'increasingly cautious view' of the investment environment.

The company's gearing policy was to operate within a range of 5% net cash to 20% geared in normal market conditions, with a strategic level of gearing being set at 10% plus or minus 2%.

The manager, however, believed that current market conditions warranted a revision of the tactical gearing level to 0% plus or minus 2% from the previous level of 5%.

'This change in tactical gearing level reflects the increasingly cautious view of our manager, Garrett Fish,' chairman Kevin Carter said.

'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.'

At 1:17pm: (LON:JAM) JPMorgan American IT Plc share price was +2p at 449p