Capital Gearing drops Juniper following rebate control error

Gear of capital (CGT) fired the company secretary and director of Juniper Partners over delays that led to a three-month suspension of its discount control policy and appointed Frostrow Capital and JP Morgan Securities in his place.

Frostrow will provide secretarial and administrative services to the £1 billion multi-asset defensive investment company and JP Morgan will operate the discount control policy under which Capital Gearing seeks to maintain its share price close to the value of its assets through regular issues and redemptions.

In November, the company blamed a “series of errors and omissions” for the delay in obtaining approval from the court in Northern Ireland – where CGT is domiciled – for the cancellation of its account share premium. This meant there was not enough money to continue buybacks from November to January, and the discount widened to more than 5% before returning to the current 2% when stock purchases resumed.