CAPITAL GEARING TRUST p.l.c
Interim Management Statement for the period 6 April 2012 to 5 July 2012
In accordance with the UK Listing Authority's Disclosure and Transparency Rule 4.3, Capital Gearing Trust p.l.c (the 'Company') announces its interim management statement which relates to the period from 6 April 2012 to 5 July 2012 and contains information that covers this period, and up to the date of publication of this interim management statement, unless otherwise specified.
The Company aims to achieve capital growth in absolute terms principally through investment in quoted closed ended and other collective investment vehicles, invested in equities or property, with a willingness to hold cash, bonds, index linked securities and commodities when appropriate.
Review of the period * Over the period from 6 April 2012 to 5 July 2012, the Company's Net Asset Value ('NAV') rose by 1.96% to 2,936.5p (ex-div and inclusive of income), after adjusting the 5 April NAV by the amount of the dividend. As a comparator, the FTSE Equity Investment Instruments Index decreased by 2.4% and the FTSE All-Share Index decreased by 0.8%, although as an absolute return fund, the actual performance benchmark is cash. * The share price has risen to 3,132p per ordinary share, an increase of 3.9% from 5 April 2012. * The Company released the Preliminary Announcement of its full year results on 29 May 2012 and published its Annual Report for the twelve months ended 5 April 2012 on 12 June 2012. * On 13 July 2012, the Company held its 49th Annual General Meeting. Eleven resolutions were proposed and all were passed on a show of hands. * A dividend of 18.5p per ordinary share was paid to shareholders on 19 July 2012. Material events and transactions * The quarter saw lacklustre equity markets, reacting to slower economic growth in developed economies. * The pressure on the Euro increased as the relentless rise in peripheral bond yields was met with no clear political solution. * Interest rates for the high quality issuers fell as investors sought safe havens. * The asset allocation remained broadly unchanged in the period, although profits were taken in European bonds. Ten Largest Investments Name % of % of Portfolio portfolio at 5 July at 5 April 2012 2012 USA Treasury 1.75% Index Linked 2028 6.07 5.61 USA Treasury 2.0% Index Linked 2026 5.58 5.22 UK Treasury 1.25% Index Linked 2027 4.60 4.59 Switzerland (Govt of) 3.0% 2018 4.49 4.68 USA Treasury 1.375% Index Linked 2018 4.05 3.96 Sweden (Kingdom of) 3.5% Index Linked 2028 3.87 3.82 UK Treasury 0.125% Index Linked 2029 3.26 3.25 USA Treasury 0.625% Index Linked 2021 3.18 3.01 Sweden (Kingdom of) 0.5% Index Linked 2017 3.06 3.11 North Atlantic Smaller Companies 2.73 2.66
The ten largest investments at 5 July 2012 represented 40.89% of the portfolio compared to 39.91% at 5 April 2012.
Distribution of Investment Funds of £85,742,196 at 5 July 2012
Name UK North Europe Elsewhere 5 5 America July April 2012 2012 Total Total % % % % % % Investment Trust Assets: Ordinary Shares 8.8 2.2 3.1 7.5 21.6 25.4 Zero Dividend 15.3 - - - 15.3 13.9 Preference Shares Other Assets: Index Linked 7.8 25.7 11.2 2.1 46.8 46.9 Fixed Interest 4.8 - - 5.4 10.2 11.3 Gold* 2.0 - - - 2.0 Cash 4.1 - - - 4.1 2.5 * 'Gold' reflects the holding in ETFS Metal Securities, which was included in the Ordinary Shares total in the distribution of investment funds table shown in the 2012 Annual Report. Performance At 5 At 5 At 5 At 5 July April October April 2012 2012 2011 2011 NAV per Ordinary Share 2,936.5p 2,898.6p 2,829.0p 2,652.8p Share Price per Ordinary 3,132.0p 3,015.0p 2,970.0p 3,115.0p Share FTSE Equity Investment 5,788.6 5,931.8 5,352.4 6,230.4 Instruments Index
Past performance is not a guide to future performance. The Board is not aware of any significant events or transactions which have occurred between the 'as at' date of the financial information and the date of publication of the IMS which would have a material impact on the financial position of the Company.
Further information is available on the Company's website, www.capitalgearingtrust.com. Please contact email@example.com or, CG Asset Management Limited at 25 Moorgate, London EC2R 6AY.
Date: 23 July 2012