Capital Gearing Trust PLC is a UK-based investment trust. It was founded in the year 1963 and its headquarters are situated in Belfast, United Kingdom. In 1973, the company was publicly listed on the London Stock Exchange. In 1982, Peter Spiller became the investment manager of the company, and since then the company has grown substantially and has become one of the top-listed investment trusts on LSE. He founded CG Asset Management in 2000, the current alternative investment fund manager of the company, whose investment approach is based on long-term value and asset performance. It focuses on building a high-quality and diversified portfolio that maximises the risk-adjusted returns for all stakeholders. The portfolio construction is driven by sound asset allocation decisions that is aimed at mitigation of risk while ensuring value creation.
The management of Capital Gearing Trust is done without referring to any benchmarks or indices to maintain the focus on areas that help in creating long-term value, rather than just focusing market trends, and making pro-cyclical investment decisions. At the outset, the company just made investments in equity securities. But over time, the company widened its investment approach and started diversifying its portfolio by investing in corporate and government bonds, investment trust securities, cash as well as derivatives like options and forward contracts. It has a cap of 15% on any one single investment in its portfolio. Capital Gearing Trust aligned itself with a zero-discount policy in 2015, and thus adopted the goal of ensuring that the company’s share price and underlying net asset value are not branched off in normal market conditions.
Capital Gearing Trust follows a well-defined framework of corporate governance and has an ethical code of conducts for running its operations. It works as per the principles that help it become a fully qualifying investment trust under the individual savings account (ISA) rules. The company is a member of the Association of Investment Companies (AIC), which is endorsed by the Financial Reporting Council, and covers all the principles in the UK Corporate Governance Code. It has strict policies related to anti-bribery and corruption, modern slavery and human rights, gender and board diversity etc. It promotes a culture of trust, transparency, accountability and integrity. Apart from focusing on maximising financial returns and fulfilling its corporate responsibilities, the company also focuses on fulfilling its social and environmental responsibilities through responsible investments and sustainable business practices.
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