Kennedy delevers Scottish IT ahead of market pull-back

John Kennedy has deleveraged his £588m Scottish investment trust, converting its entire gearing component into cash equivalents to shield the portfolio against a further market set-back.

Kennedy has put 22% of the company’s gearing equity into cash proxies such as UK government bonds and Singapore treasury bills as he expects the eurozone sovereign debt crisis to rumble on for at least another year. He expects ongoing macroeconomic turmoil will increase deflationary pressures, resulting in one more major sell-off across global markets. ''We have put all of our gearing into cash equivalents because of the continued uncertainty in markets. I expect no quick fix to the eurozone crisis until this time next year,” said Kennedy. “The portfolio turnover is also low at 15% be...