Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a742048

Capital Gearing Trust cuts fees

by Robert St George on Mar 21, 2014 at 07:49

Capital Gearing Trust cuts fees

The defensive Capital Gearing Trust has become the latest investment company to reduce its management charge.

From 6 April 2014 the £92 million trust will bring its fees down from 0.85% to 0.6%.

The trust, which launched in 1973 and is managed by Peter Spiller (pictured) and Alastair Laing, runs a strongly conservative portfolio, with 10% currently in cash and 30% in index-linked government bonds.

As a result it has performed well in bear markets but lagged significantly during bull phases.

For example, Capital Gearing returned 4.9% in 2006 while the FTSE All Share surged by 16.8%. But in 2008 it eked out a 4.7% return while the FTSE lost 30%.

Similarly Capital Gearing dropped 9% last year while the FTSE gained 20.8%. So far this year the fund has outperformed, though, returning 6.4% while the FTSE is down 0.1%.

Iain Scouller, an analyst at Oriel Securities, has highlighted Capital Gearing as one of his defensive picks alongside better known vehicles such as RIT Capital , Ruffer and Personal Assets .

‘Following a strong year for many global stock markets over 2013, most are struggling to make progress this year,’ he said.

‘Indeed some of the increasingly speculative activity that we have seen in some areas such as high demand for a number of equity IPOs and the increasing use of leverage to finance some stock market investment makes us feel distinctly nervous. We do think the risk of a market correction is growing.’

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

The Citywire guide to investment trusts

Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Look up the investment trusts

  • Capital Gearing (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Ruffer Investment Company (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • RIT Capital Partners (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Personal Assets (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet