Fact sheet: Capital Gearing IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
MIXED ASSET - LOWER RISK
Sector
IT Flexible Investment
Fund type
Investment Trust
Primary aim
GROWTH
Why Money Observer Rates Capital Gearing IT

Rated Fund 2016-2017. A defensive stance, waiting for the right opportunities

This trust appears in the Association of Investment Companies' flexible investment sector, which was created at the beginning of 2016 for trusts investing in a range of assets.

Capital Gearing is also one of the few investment trusts that aims to produce an absolute return. It has seen periods of underperformance such as in 2013, but manager Peter Spiller's long-term record is widely regarded as exceptional. He has managed the trust since inception in 1982.

The trust's portfolio is made up of equities, bonds and commodities. Investment in equities is normally through trusts and other collective investment vehicles.

It is flexible in its asset allocation and had a near 100 per cent weighting to equities in the early 1980s when valuations were low and corporate balance sheets looked strong. In recent years, Spiller has been more sceptical about valuations and as a result the trust's equity exposure has been kept low.

The trust finished 2016 with a very defensively positioned portfolio, with a low allocation to equities and an emphasis on short-duration in the fixed income portfolio. Spiller believes that high asset prices mean that the prospects for medium-term returns are muted.

His main aspiration is to preserve capital after fees and inflation, in the expectation that better opportunities will present themselves in future. He therefore has a tranche of liquid assets waiting to be deployed into equity markets when valuations are more compelling.

3 Year Performance
Fund Performance19.5%
Average of Rated Funds Group18%
Sector Performance31.2%
Fund information
Fund name
Capital Gearing Trust plc
Fund manager company
Capital Gearing Asset Mgmt
Fund type
Investment Trust
Fund managers
  • Peter Spillersince 01/01/1982
  • Chris Clothiersince 01/02/2017
  • Alastair Laingsince 03/01/2011
Accolades
Fund objective
The Company’s dual objectives are to preserve shareholders’ real wealth and to achieve absolute total return over the medium to longer term.
Benchmark
  • FTSE Inv Companies Index
Investment style
Cautious
Investment method
None
Quick stats
1 Year return
1%
1 Year rank in sector
12/16
Sector
IT Flexible Investment
Yield
0.5%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.2%
Fund size
£214m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
75
Mid price
3860
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
3782
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+2.06
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
100
Top in this sector
Fund name1 Year
Miton Gbl Opps PLC24.4%
New Star IT PLC22%
F&C Mngd Prtfolio Tst Gth17.5%
Est Inv Trust17.4%
Tetragon Fin Ord USD0.00113.7%
...more in IT Flexible Investment

Performance snapshot

Holdings snapshot

  • UK96%
    Money Market4%
  • No data available.
  • International Equities40%
    Global Index Linked37%
    Preference Shares17%
    Money Market4%
    Commodity & Energy1%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-3%-2.8%-3%1%19.5%14.2%
Sector-3.6%-0.9%1.3%8.5%31.2%39.7%
Rank within sector8 / 1613 / 1614 / 1612 / 1612 / 1514 / 15
Quartile2nd4th4th3rd4th4th
Calendar performance
 YTD - 20182017201620152014
Fund-2.8%5.8%15.4%1.2%3.3%
Sector-2.2%14.1%14.5%3.3%3.9%
Rank within sector10 / 1613 / 168 / 168 / 159 / 15
Quartile3rd4th2nd3rd3rd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-1.03
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.75
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.43
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
6.46
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
5.71
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
-0.63
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.25
Price movement
52 week high3999
52 week low3753
Current bid price3830
Current offer price3890
Current mid price3860
Region
1UK96%
2Money Market4%
Industry sector
No data available.
Asset type
1International Equities40%
2Global Index Linked37%
3Preference Shares17%
4Money Market4%
5Commodity & Energy1%
6Global Government Fixed Interest1%
Individual holdings
1HM TREASURY UNITED KINGDOM DMO 0.125% IDX-LKD GILT 22/11/19 GBP0.018.3%
2UNITED STATES OF AMER TREAS BONDS 2% BDS 15/01/26 USD10004%
3UNITED STATES OF AMER TREAS NOTES 0.25% TB 15/01/25 USD10003.5%
4VANGUARD FTSE JAPAN UCITS ETF USD2.9%
5VANGUARD FTSE JAPAN UCITS ETF USD2.9%
6NTH ATLANTIC ORD GBP0.052.8%
7VONOVIA SE2.7%
8UNITED STATES OF AMER TREAS BONDS 2.375% BDS 15/1/25 USD10002.3%
9SWEDEN I/L 0.25% 01/06/222%
Management
Fund manager group
Capital Gearing Asset Mgmt
Fund manager company
Capital Gearing Asset Mgmt
Fund type
Investment Trust
Fund objective
The Company’s dual objectives are to preserve shareholders’ real wealth and to achieve absolute total return over the medium to longer term.
Benchmark
  • FTSE Inv Companies Index
Investment style
Cautious
Investment method
None
Fund managers
NameSinceBiography
Peter Spiller01/01/1982Peter founded CG Asset Management in 2000 and has managed the fund since inception. Prior to founding CGAM, Peter was a partner and strategy director at Cazenove & Co Capital Management and a US equity investor at Capel Cure & Myers.
Chris Clothier01/02/2017Chris joined CGAM in 2015 and has managed the fund since that time. Chris joined CGAM from IPGL Limited, a private investment vehicle. Prior to that he worked at MMC Ventures.
Alastair Laing03/01/2011Alastair joined CGAM in 2011 and has managed the fund since that time. Alastair joined CGAM from HgCapital LLP and prior to that worked with the mergers and acquisitions team at Deloitte LLP.
Compliance
AIC Member, UCIS
Domicile
No data available.
Fund for sale in
United Kingdom
Capital Gearing Trust plc
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price3782
CurrencyGBX
Price updated14/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJFO
Data provided by

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Financial Express. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.