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Capital Gearing Trust PLC on Thursday reported net asset value growth in financial 2026, and affirmed its investment strategy amid the pressures of ‘a stagflationary world’. CGT is a Belfast-registered investment trust managed by Peter Spiller that seeks long-term absolute returns from a portfolio of equities, bonds and commodities, using a low-cost approach without the use of gearing or short selling. NAV per share was 5,104.5 pence at the end of March, up from 4,924.8p a year before, for a NAV total return of 5.8% over the recent financial year, sped up from 4.1% in financial 2025. CGT has proposed a final dividend of 66p per share, compared with 102p the year prior. In financial 2025, CGT had booked more interest income than in previous years as a result of a change in the portfolio allocation and higher interest rates. For both years, it opted to pay part of the dividend as an interest distribution to limit tax liability. CGT shares were down 0.3% to 5,164.00 pence on Thursday morning in London. The company noted that its shares had risen sharply since launching, which CGT attributed to its ‘exceptional performance’. ‘The board believes that the high share price may be unhelpful for those investing smaller amounts, monthly savers, and dividend re-investment programmes. Therefore, it is proposing to sub-divide the shares on a ten for one basis,’ CGT said. The subdivision is conditional on approval from shareholders at the July 8 annual general meeting. Dealings in existing shares are expected to end at the close of business on July 22, and dealings in the new shares are expected to start the following day. Reviewing the outlook for markets, CGT Chair Karl Sternberg said: ‘The board agrees with the investment manager that the new super-cycle is one of higher and more variable inflation. The economic challenges feel more like the 1970s redux than anything experienced by most active managers today. We are in a bear market for long-dated bonds as governments struggle to finance themselves and ultimately other asset classes like equities will come under pressure from much higher government bond yields.’ CG Asset Management Ltd’s Peter Spiller, Alastair Laing and Chris Clothier noted: ‘Since 1945, every global inflationary episode has been caused either by war or by an energy price shock. Often, as today, the two coincide. How long the shock will persist is unknowable.’ Spiller, Laing and Clothier said the UK’s economic outlook is ‘not good’, and noted that CGT maintains ‘a high allocation to inflation-linked bonds which, unlike conventional bonds and equities, we believe will perform well in a stagflationary world’. ‘The company‘s portfolio is constructed to compound investors’ capital with low tax drag, low volatility and high levels of inflation protection,’ they added. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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