Capital Gearing Trust PLC GBP · LSE:CGT
Capital Gearing Trust PLC GBP — Capital Gearing Trust — Investor Presentation (May 2025)
30 slides from Capital Gearing Trust PLC GBP's investor presentation, May 2025
Slide 1: Capital Gearing Trust May 2025
CG Asset Management Capital Gearing Trust May 2025
Slide 2: Disclaimer
Disclaimer CG Asset Management Limited (“CGAM”) is authorised and regulated by the Financial Conduct Authority to carry on regulated activities in the United Kingdom. The information contained in this Document has been prepared by and is the sole copyright of CGAM. No representation is being made th
Slide 3: Capital Gearing Trust Overview
Capital Gearing Trust Overview
Slide 4: Capital Gearing Trust Overview
Overview Capital Gearing Trust Overview Investment Objective • The Company’s objective is to preserve and grow shareholders’ real wealth over time • The Company seeks cost-effective, long-term absolute returns via a global portfolio of equities, bonds and commodities • It follows a simple, low-cost
Slide 5: CG Asset Management Overview
Overview CG Asset Management Overview 2001 Founded in 2001 by Peter Spiller, former Chief Investment Officer and Chief Strategist of Cazenove Founded £2.6bn £2.6bn in assets under management AUM 2 Manages two strategies, absolute return and real return, across six funds Strategies 12 Team of 12, bas
Slide 6: CGAM in partnership with our clients
Overview CGAM in partnership with our clients What makes us different? What does that mean for our clients? 1. The client comes first The firm’s founding 2. Don’t be greedy principles 3. Have fun In turn these principles mean that: • We have and will close funds to protect investors • We continuousl
Slide 7: Funds Summary
Overview Funds Summary Dealing Strategy Fund ISIN Launched AUM6 AMC Fee TER Frequency Capital Gearing Trust GB0001738615 19821 £874m Listed 0.41%3 0.55% Absolute Return Long only investments CG Absolute Return IE00BYQ69B30 2016 £723m Daily 0.35% 0.46% in a portfolio of bonds, (EUR Hedged, USD Hedged
Slide 8: CGAM Team
Overview CGAM Team Investments Investor Relations Operations and Risk Peter Spiller Alastair Laing Chris Clothier Sophia Sednaoui Chris Taylor Jason Barlow Co - Chief Investment CEO, Fund Manager Co - Chief Investment Head of Investor Chief Operations Senior Operations Officer Officer Relations Offi
Slide 9: Since 1982 the CGT share price total return has been >274x
Positioning and Returns Since 1982 the CGT share price total return has been >274x1 NAV Total Return History (Rebased) Mar 1982 to Mar 2025 20,000 18,000 16,000 14,000 MSCI UK NAV Total Return 12,000 10,000 8,000 6,000 4,000 2,000 0 1992 1993 2023 2024 1982 1983 1984 1985 1986 1987 1988 1989 1990 19
Slide 10: Investment Process
Investment Process Capital Gearing Trust
Slide 11: Principles
Investment Process Principles What are we trying to do? How do we do it? Portfolio Construction Keep It Simple ⇔ Asset Selection No gearing, no short selling, Diversified portfolio no reaching for yield construction focusing on negatively correlated assets Short Term: Low Cost Driven by Value Capita
Slide 12: 5 inputs drive our asset allocation, underpinned by a focus on duration
Investment Process 5 inputs drive our asset allocation, underpinned by a focus on duration Valuations All major asset classes Absolute / Relative / Relative to own history Investor Behaviour Core Macroeconomic Beliefs Degree of risk taking / speculative Guiding long-term asset allocation Asset behav
Slide 13: Dynamic asset allocation that responds to the business cycle
Investment Process Dynamic asset allocation that responds to the business cycle High Growth Expansion Inflationary Boom ✓ Equities Commodities & Gold ✓ Index-linked bonds Equities ≈ Index-linked bonds ≈ Low High Inflation Inflation Depression Financial Repression ✓ Nominal bonds Index-linked bonds
Slide 14: 3 Core Asset Allocation Pillars
Investment Process 3 Core Asset Allocation Pillars Risk Assets Equities / Funds Property Infrastructure Alpha generation by exploiting discounts Efficient diversified equity exposure Dry Powder Index-Linked Bonds Cash US TIPS Treasury Bills UK Linkers Short Dated Credit Other high-quality sovereigns
Slide 15: Index-Linked bonds are a fundamental component of our asset allocation
Investment Process Index-Linked bonds are a fundamental component of our asset allocation Protection against financial repression Annual Returns % of UK Stocks and TIPS – unhedged in GBP Only asset that we believe is likely to deliver protection (1998 – 2022) 40% Negative correlation with risk asset
Slide 16: Capital Gearing Trust
Capital Gearing Trust Positioning and Returns
Slide 17: Positioning is defensive, with a focus on inflation protection
Positioning and Returns Positioning is defensive, with a focus on inflation protection CGT Asset Allocation April 2025 Contribution by Asset Class LTM April 2025 100% Cash & Tbills, CGT 3.7% 16% Dry Powder, 27% 80% Credit,11% Index Linked Bonds 0.3% UK I/L, 11% 60% Risk Assets 2.2% Index Linked Bond
Slide 18: The make-up of our risk assets is quite different from any mainstream index
Positioning and Returns The make-up of our risk assets is quite different from any mainstream index CGT Risk Assets – Geographic and Asset Exposure Contribution by Risk Assets LTM April 2025 100% CGT Risk Assets 2.2% 80% Conventional Equity, 50% UK, 57% Infrastructure 0.1% 60% Property 0.5% 40% Infr
Slide 19: Changes to asset allocation tend to be modest over the short term
Positioning and Returns Changes to asset allocation tend to be modest over the short term but can be fundamental over the long term CGT Asset Allocation – 2011 to 2025 100% 80% 60% 40% 20% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Cash Gold Index Linked Govt. Bond
Slide 20: Both equity and bond portfolios have contributed to outperformance
Positioning and Returns Both equity and bond portfolios have contributed to outperformance CGT Risk Assets Returns Performance to April 20251 CGT Bonds Only Returns Performance to April 20251 160 60 140 50 120 40 100 30 80 60 20 40 10 20 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 201
Slide 21: CGT has outperformed comparators on an absolute and risk adjusted basis
Positioning and Returns CGT has outperformed comparators on an absolute and risk adjusted basis CGT vs. Comparators: Total Returns to April 20251,2 70 60 50 40 30 20 10 0 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Jun-24 Dec-24 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun
Slide 22: Returns have come with low volatility, and low correlation to equity & bond markets
Positioning and Returns Returns have come with low volatility, and low correlation to equity & bond markets, and excellent risk adjusted performance Sharpe Ratio1 & Volatility (%) vs. Major Indices 1.0 12.4% 12.3% 0.9 4.8% 0.8 Volatility 0.7 CGT MSCI UK MSCI World 0.6 25.2% 0.5 15.5% Equity Beta con
Slide 23: Duration, currency and liquidity are actively managed
Positioning and Returns Duration, currency and liquidity are actively managed Currency Exposure1 Time to Liquidation (days)2 4% 100% 2% 2% 2% 1% 7% 100% 83% Other JPY 7% 90% NOK 80% USD 24% CHF 70% SEK EUR 3% 60% CAD 50% <1 day 1-3 days 3-5 days 5-10 days 10-15 days 15-30 days >30 days Total AUD 40%
Slide 24: Top Equity and Bond Holdings
Positioning and Returns Top Equity and Bond Holdings Top 10 Equity Holdings Top 10 Bond Holdings Asset Weight Asset Weight JPMorgan Japan ETF 2.1% JGB 0.60% 01/01/27 5.4% North Atlantic Small Companies 1.9% US I/L 0.125% 15/10/26 2.6% Vanguard FTSE 100 ETF 1.9% UK I/L 0.125% 22/03/29 2.5% PRS REIT 1
Slide 25: Current Focus Areas
Positioning and Returns Current Focus Areas Real Interest Rates Japanese Equities Investment Trusts Infrastructure Developed market issuers The Yen is offering The average discounts have Defensively positioned offering risk free inflation exceptional value, making widened to levels last seen infrast
Slide 26: Considerations Within Our Investment Approach
Capital Gearing Trust Considerations Within Our Investment Approach
Slide 27: The moral principles underpinning our investment approach
Investment Approach The moral principles underpinning our investment approach Be honest One firm, one rule Ethics, not mathematics Don’t disinvest, engage No greenwashing, no PR-led Our standards apply to all the There is no formula that can be When investors have the initiatives, no jargon. We beli
Slide 28: Considerations for individual asset classes
Investment Approach Considerations for individual asset classes 1. Direct Government Securities 2. Direct Corporate Credit and Preference Shares The majority of the assets held by the funds are invested in direct holdings of The funds hold small quantities of direct credit and preference share holdi
Slide 29: Considerations for individual asset classes
Investment Approach Considerations for individual asset classes 3. Listed Closed-Ended Funds, Investment Trust, REITs and Activist Engagement Technique Frequency of Employment Property Companies Management Engagement Continuous CGAM has a long history of active engagement in the London market for li
Slide 30: www.cgasset.com
IR@cgasset.com +44 20 3906 1649 20 King Street, London, EC2V 8EG www.cgasset.com
Capital Gearing Trust — Investor Presentation (May 2025) on 6ix