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Takeovers boost Capital Gearing

Capital Gearing Trust says, as at 5 April 2016, the net asset value per share was 3,382p compared to 3,297p a year earlier. Although an increase across the year of 2.6% might be seen as modest, this achievement is more creditable when measured against, for example, the decline in the FTSE All-Share Index of 9.3% over the same period. The
Board will be recommending a maintained distribution of 20p per share, drawing on revenue reserves for the uncovered shortfall in this year’s net revenue.

North Atlantic Smaller Companies Investment Trust and Oryx International Growth Fund were two UK focused holdings that delivered very strong gains. Renewable Energy Generation and Japan Residential Investment Company were two large specialist positions that were taken over during the year at significant premia to their opening value. The companies mentioned above represented over 25% of the opening equity portfolio and collectively delivered high teen returns. This solid performance in our larger holdings was enough to offset pockets of weakness in our smaller holdings including Candover Investments, which had a large exposure to the very
weak oil and gas sector.

CGT : Takeovers boost Capital Gearing

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