Peter Spiller: Infrastructure offers ‘fantastic returns’ and trusts are a big bargain

Capital Gearing has had another difficult year but the views of Peter Spiller, its Citywire AA-rated lead manager, who has overseen the trust for 42 years, are still very much worth noting.

In the commentary for its annual results (also attributed to Alistair Laing, chief executive of CG Asset Management, and Chris Clothier, co-chief investment officer), Spiller says the team has added to infrastructure funds, lifting them to 8% from 6% of the £1bn defensive, multi-asset portfolio since the financial year-end at 31 March.

Infrastructure holdings were the worst-performing part of the portfolio, which gained just 1.8% in the year to March. Renewable and core infrastructure funds fell 15.1% as their shares derated to an average 20% discount to net asset value (NAV), which Spiller now believes is ‘fantastic’ value.