Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Capital Gearing Trust swung to an annual loss as the Covid-19 pandemic hurt the value of its investments.
For the year ended 5 April, net losses were £5.4m, compared with a profit of £17.8m on-year, as the company recorded a $10.7m loss on investments compared with a gain of £15m last year.
'The company's net asset value per share peaked at 4,382p on 20 February 2020 when the closing share price was 4,480p. By 19 March, the overall UK equity market had declined by 32.8%. At the same date the company's net asset value had suffered a maximum drawdown of 9.9%,' the company said.
'Governments and central banks have acted swiftly to support countries and economic sectors operating in either lockdown or severely constrained mode. Currently equity markets are exhibiting fragile optimism that any recession will be mostly very short-lived, perhaps for a quarter or two at worst. However, commodities and energy markets appear to be signalling greater pessimism,' it added.
At 9:09am: (LON:CGT) Capital Gearing Trust Plc share price was +15p at 4355p