Interim Management Statement
Capital Gearing Trust PLC
15 August 2007
Capital Gearing Trust plc (the 'Company')
Interim Management Statement
for the period ended 31 July 2007
In accordance with the UK Listing Authority's new Disclosure and Transparency
Rules DTR 4.3, Capital Gearing Trust plc (the 'Company') announces its first
interim management statement which relates to the period from 6 April 2007 to 31
July 2007, and contains information that covers this period, and up to the date
of publication of this interim management statement, unless otherwise specified.
Investment Objective
Capital Gearing Trust plc aims to achieve capital growth in absolute terms
principally through investment in closed ended and other collective investment
vehicles with a willingness to hold cash and other bonds when appropriate.
Review of the period
•Over the period to 31 July 2007, the Company's Net Asset Value ('NAV')
fell by 1.2% to 2,000.4p. As a comparator, the FTSE Equity Investment
Instruments Index rose by 1.9% although as an absolute return fund, the
actual performance benchmark is cash.
•The share price has fallen to 2010p per Ordinary Share, a decrease of
2.4% from 5 April 2007.
•The only change in asset allocation was the initiation of a small
position in commodities.
•On 9 July 2007, in accordance with the UKLA's Disclosure & Transparency
Rule 3.1.2, the Company announced that the following Directors purchased
Ordinary Shares of 25p each at a price of 2033.5p per share in the Company
on 4 July 2007, in the UK -
Number of % of issued
Director Ordinary Shares share capital
Mr RPA Spiller 3,531 0.13
Connected Person Relationship
Mrs D Spiller Spouse 8,000 0.29
Total current shareholding 299,221 10.71
Number of % of issued
Director Ordinary Shares share capital
Mr EG Meek 4,000 0.14
Connected Person Relationship
Mrs RS Meek Spouse 1,000 0.04
Total current shareholding 7,500 0.27
Number of % of issued
Director Ordinary Shares share capital
Mr JC Morton 1,000 0.04
Total current shareholding 4,000 0.14
•The Company published its Report and Accounts for the year ended 5 April
2007 and announced the preliminary results for the year ended 5 April 2007
on 11 June 2007.
•For administrative reasons, the Board appointed TMF Nominees Limited in
replacement of Chalfen Secretaries Limited as Company Secretary to the
Company with effect from 21 May 2007.
Material events and transactions
•The total dividend of 14p for the year ended 5 April 2007 was approved by
shareholders at the Annual General Meeting held on 14 August 2007. The
total dividend is made up of 12p and a 2p special dividend, and will be paid
to shareholders on 17 August 2007.
•The European Court of Justice recently ruled that investment trusts are
exempt from VAT and that some of the VAT paid in the past may be refundable.
This decision is welcomed by the Board and the Directors will monitor the
developments in this case, the views of HM Revenue & Customs, and the
practical implications this will have on the Company.
Top Ten Investments
Name % of portfolio % of portfolio at
at 31 July 2007 5 April 2007
Sweden (Kingdom of )Index Linked Bonds 2028 5.64 5.74
France (Government of) 5.5% OAT 2029 4.08 4.21
Life Offices Opportunities Trust 3.86 3.50
Germany (Federal Republic) 4.75% Bonds 2028 3.73 3.84
TR Property Investment Trust 3.17 4.17
Canada (Government of) 4% Index Linked 2031 2.74 2.71
Switzerland (Government of) 2%
Index Linked Bonds 2014 2.73 2.83
North Atlantic Smaller Companies 2.70 2.64
Utilico Finance Zero Dividend Preference Shares 2.42 2.42
Germany (Federal Republic) 4% Bonds 2029 2.40 2.42
Distribution of Investment Funds of £55,908,000
Name UK % North Europe % Elsewhere % 31 July 2007 5 April 2007
America % Total % Total %
Investment trust assets:
Ordinary shares 21.2 2.9 1.0 6.2 31.3 35.1
Endowment funds 7.0 7.0 6.5
Infrastructure 0.4 0.4 0.0
Commodities 1.0 1.0 0.0
Zero dividend
preference shares 18.4 18.4 17.6
Other assets:
Fixed interest 0.7 14.9 15.6 16.0
Index linked 3.3 4.1 11.1 18.5 18.7
Cash 7.8 7.8 6.1
58.4 7.0 27.0 7.6 100 100
Performance
At At At At
31 July 2007 5 April 2007 5 April 2006 5 April 2004
NAV per ordinary share 2,000.4 2,024.4 1,937.0 1,475.8
FTSE Equity
Investment
Instruments Index 6146.4 6,032.7 5,651.1 3,588.5
Share price per
ordinary share 2010p 2060p 2055p 1580p
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.
Enquiries -
Please contact company.secretary@capitalgearingtrust.com or CG Asset Management
Limited at 25 Moorgate, London, EC2R 6AY.
This information is provided by RNS
The company news service from the London Stock Exchange
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