Capital Gearing has announced interim results covering the six months to 5 October 2015. As at that date, the net asset value per share was 3,240.5p compared to 3,297.6p at the last year end on 5 April 2015, a decline of 1.7%. This compares with declines of 6.5% in the FTSE All-Share index and of 9.2% in the sterling FTSE All-World Index.
The bias to short-duration assets helped performance but the manager also says, during the weak markets of August and September, the investment trust portfolio held up well, materially out performing broader indices such as the FTSE All-Share. This, in part, reflects a greater allocation to mid and small capitalisation stocks, which avoided the worst of the sell-off. It also reflects some stock specific factors, most notably North Atlantic Smaller Companies plc, which continues a run of very strong performance. Even the portfolio’s serial under performer, Renewable Energy Generation plc, was subject to an acquisition approach after the period end at a 50% premium. The outcome of this process remains unclear, however the approach helps confirm the unrecognised value in the asset.
CGT : Capital Gearing holds up in weak markets