AFHI Aber.GD.C&I

RNS Number:0839V
Aberforth Geared Cap & Inc Tst PLC
25 April 2002


ABERFORTH GEARED CAPITAL & INCOME TRUST plc


INVESTMENT UPDATE


25 APRIL 2002


In response to a suggestion by the Financial Services Authority and in light of
the prevailing adverse climate within the split capital investment trust sector,
the Directors of Aberforth Geared Capital & Income Trust (AGCiT) consider that
it would be helpful to provide a report on the progress of the Company for the
period since its listing on 18 December 2001.  However, in light of the content
of this announcement, the Directors have been advised that it constitutes a
financial promotion as defined by the Financial Services & Markets Act 2000 and
consequently it has to be approved by an authorised person.  To this end,
Aberforth Partners have approved the announcement but the Directors would like
to stress it is not their intention to "promote" the Company's shares but rather
to inform.


AGCiT invests only in Small UK Quoted Companies and does not invest in any
unquoted securities, AiM listed securities or securities issued by investment
trusts or investment companies. AGCiT employs a significant amount of bank debt
to provide gearing in its capital structure.


While the period since launch is short, it has seen considerable activity by the
Company and the Directors are encouraged with the progress to date in respect of
both income and capital.


The proceeds of the issue were received for investment on 18 December 2001.  As
announced on 18 December the Company entered into an interest rate swap
agreement which had the effect of fixing the rate of interest on £30m of debt
from 2 April 2002 until 30 September 2011 at a rate of 6.57%. The rate includes
a margin of 1.1% and mandatory costs as described in the prospectus.


The investment of the available funds proceeded steadily as follows:


Date                     % of Available Funds Invested

31.12.01                 31.5%

31.01.02                 78.6%

28.02.02                 96.0%

31.03.02                 98.0%


The Company now has a portfolio of 80 Small UK Quoted Companies and the historic
dividend yield of the portfolio, calculated on book cost, is 4.5%.


On 10 April 2002 the Company's application to cancel its share premium account
was approved by the Court and became effective on 15 April 2002.


The Net Asset Values (NAVs) as at close of business on 24 April 2002 have been
announced.  The relevant values are:


Income Shares = 51.89p
(Excluding Current Year Revenue)


Capital Shares = 284.21p

"Notional Package" = 121.58p
(Excluding Current Year Revenue)


A "Notional Package" comprises 0.7 of an Income Share plus 0.3 of a Capital
Share.


The following table provides some information about the performance of the
Company since 18 December 2001.

Security/Index                            18 December 2001         24 April 2002          % Change

NAV "Notional Package"                                    98.1p                121.6p               24.0%

NAV Capital Share                                        210.3p                284.2p               35.1%

HGSC (XIC)*                                            2,361.18              2,469.71                4.6%


*  HGSC (XIC) is the Hoare Govett Smaller Companies Index (excluding Investment
Companies).


Contact


John Evans, Aberforth Partners (tel: 0131 220 0733)

David Warnock, Aberforth Partners (tel: 0131 220 0733)


Angus Gordon Lennox, Cazenove & Co. Ltd (tel: 020 7588 2828)

Tod Davis, Cazenove & Co. Ltd (tel: 020 7512 6364)


The content of this document has been approved for the purposes of s21 of the
Financial Services and Markets Act 2000 by Aberforth Partners.


ANNOUNCEMENT ENDS


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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