1st Jun 2016 08:28
LONDON (Alliance News) - Capital Gearing Trust PLC on Wednesday reported growth in its net asset value per share in its recently-ended financial year, beating its benchmark, but warned of a difficult year ahead.
The trust said its NAV per share grew by 2.6% in the year ended April 5 to 3,382.0 pence from 3,297.6p the year before, beating a 9.3% decline in the FTSE All-Share Index.
Capital Gearing said its larger holdings performed well in the year, against a weak equity market backdrop, with North Atlantic Smaller Companies Investment Trust and Oryx International Growth Fund delivering very strong gains.
The solid performance from larger holdings was enough to offset "pockets of weakness" in small holdings such as Candover Investments, which had a large exposure to the very weak oil and gas sector, Capital Gearing said.
"The company's portfolio enters the new financial year, as twelve months ago, very defensively positioned. Apparently slowing growth in GDP in several key economies, consistently high debt levels, and the feeling that central banks may be scraping the barrel of monetary policy ingenuity, all point to a difficult year ahead for bond and equity markets," Chairman Graham Meek said in a statement.
"Additionally, neither the risk of geopolitical strife in the Middle and Far East nor threats to free trade from upcoming political events in the USA and UK bode well for market progress," Meek added.
Shares in Capital Gearing were untraded on Wednesday morning, last quoted at 3,450.00 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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