Capital Gearing Trust PLC GBP · LSE:CGT

Capital Gearing Trust PLC GBP — CG Asset Management — Investor Presentation (July 2023)

14 slides from Capital Gearing Trust PLC GBP's investor presentation, Jul 6, 2023

  1. Slide 1: CG Asset Management Q2 2023 Webinar

    CG Asset Management Q2 2023 Webinar 6 July 2023

  2. 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

  3. Slide 3: CG Asset Management ("CGAM") Overview

    Overview CG Asset Management (“CGAM”) Founded in 2001 by Peter Spiller, former Chief Investment Officer and Chief Strategist of Cazenove 2001 Founded £4bn in assets under management* £4bn AUM Manages two strategies, absolute return and real return, across five funds 2 Strategies Team of 11, based in

  4. Slide 4: Returns & Positioning

    Returns & Positioning Multi-Asset Strategy Update

  5. Slide 5: Defensive stance but both Dry Powder and Index Linked offer good yields

    Positioning and Returns Defensive stance but both Dry Powder and Index Linked offer good yields CGAR Asset Allocation June 2023 Contribution by Asset Class 2Q23 100% • Reduce portfolio duration Cash & CGAR -2.1% Tbills & volatility Dry • Provide optionality Powder • Deliver better returns 80% Credit

  6. Slide 6: Infrastructure came under pressure during the quarter, now looks attractive

    Positioning and Returns Infrastructure came under pressure during the quarter, now looks attractive CGAR Risk Assets – Geographic Exposure and Asset Exposure 2Q23 Risk Asset Performance 100% CGAR Risk Assets -0.5% 80% UK Conventional Equity Infrastructure -0.3% 60% Conventional Equity -0.1% Japan 40

  7. Slide 7: The bond portfolio has stood up well compared to Sterling Aggregate

    Positioning and Returns The bond portfolio has stood up well compared to Sterling Aggregate CGAR Risk Assets* Performance to June 2023 CGAR Bonds Only* Performance to June 2023 120 40 35 100 30 25 80 20 60 15 10 40 5 0 20 2016 2017 2018 2019 2020 2021 2022 2023 -5 0 -10 2016 2017 2018 2019 2020 2021

  8. Slide 8: CGAR has delivered good risk adjusted returns relative to its peers

    Positioning and Returns CGAR has delivered good risk adjusted returns relative to its peers CGAR vs. Peers – Total Returns to June 2023 CGAR vs. Peers – Max Monthly Drawdown 55 50% 45% CG Absolute Return 45 40% Troy Trojan Ruffer Absolute Return 35% 35 Total Returns 30% 25 25% 20% Pyrford Global 15

  9. Slide 9: A discount has developed in CGT, so the company is buying back shares

    Positioning and Returns A discount has developed in CGT, so the company is buying back shares, consistent with the discount control mechanism CGT – Share Price, NAV and Discount Control to June 2023 5,350 7% 6% 5,150 5% 4,950 4% Premium / (Discount) % 4,750 3% NAV / Price 4,550 2% 1% 4,350 0% 4,150

  10. Slide 10: Outlook

    Outlook cgam

  11. Slide 11: Bursting the "everything bubble" and replacing it with a "big tech bubble"?

    Outlook Bursting the “everything bubble” and replacing it with a “big tech bubble”? “What Were You Thinking?” Index1 FANG+ Index2 60 9,000 +75% YTD 8,000 50 7,000 40 6,000 5,000 30 4,000 20 3,000 2,000 10 1,000 0 0 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2018

  12. Slide 12: But the similarities with 2000 end there… rates today are nowhere near as compelling

    Outlook But the similarities with 2000 end there… rates today are nowhere near as compelling US 10 Year Nominal Rates (%) US 10 Year Real Rates (%) 7 5 6 4 5 3 4 2 3 1 2 0 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 1 -1 0 2014 1998 2000 2002 2004 2006 2008 2010 2012 2016 2018 2

  13. Slide 13: Attractive discounts are emerging in conventional trusts and among alternatives

    Outlook Attractive discounts are emerging in conventional trusts and among alternatives Conventional Equity Investment Trust Discounts (%) INPP NAV and Share Price (p per share) 0 180 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -2 160 -4 140 -6 120 -8 10

  14. Slide 14: Contact details

    IR@cgasset.com +44 20 3906 1637 20 King Street, London, EC2V 8EG www.cgasset.com

CG Asset Management — Investor Presentation (July 2023) on 6ix