8th Nov 2019 13:40
(Alliance News) - Capital Gearing Trust PLC said Friday it outperformed against the MSCI UK Index for the first half of its financial year, boosted by a weaker pound compared to the dollar.
The trust's net asset value total return for the six months ended October 5 was 5.4%. Capital Gearing does not have a benchmark, but did note that the MSCI UK Index reported a negative return of 1.8%.
The trust - which invests in closed-ended funds as well as bonds, commodities and cash - said net asset value per share as at October 5 was 4,268 pence, up from 3,968p the same date the year before, and 4,082p as at April 5.
Capital Gearing Trust said its portfolio performed well during the period due to a supportive market backdrop, with falling bond yields, rising equity markets, stronger gold and sterling weakness.
In particular, the risk asset segment of its portfolio performed ahead of comparative indices, driven by a positive contribution from German residential property outside of Berlin.
There were also gains from US Index-linked bonds, which was caused by a weaker pound on Brexit uncertainty, and falling yields on anticipated interest rate cuts.
"The portfolio remains defensive, and in the short term the ambition is principally to preserve the value of investors' capital after fees, taxes and inflation. If this objective can be achieved during a period of anticipated market weakness, then the company will be well positioned to revert to an increased exposure to risk assets and to deliver stronger gains in the future," said Chair Graham Meek.
Shares in Capital Gearing Trust were marginally higher at 4,315.60 pence on Friday in London.
By Dayo Laniyan; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Capital Gearing Trust