Capital Gearing Trust PLC GBP · LSE:CGT

Capital Gearing Trust PLC GBP — Capital Gearing Trust — Q2 2025 Earnings Presentation

21 slides from Capital Gearing Trust PLC GBP's earnings presentation, July 2025

  1. Slide 1: CG Asset Management Q2 Webinar

    CG Asset Management Q2 Webinar July 2025

  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: Funds Summary

    Overview Funds Summary Dealing Strategy Fund ISIN Launched AUM6 AMC Fee TER Frequency Capital Gearing Trust GB0001738615 19821 £847m Listed 0.41%3 0.55% Absolute Return Long only investments CG Absolute Return in a portfolio of bonds, (EUR Hedged, USD Hedged available) IE00BYQ69B30 2016 £689m Daily

  4. Slide 4: Positioning and Returns

    Positioning and Returns CGAM Q2 2025 Webinar

  5. Slide 5: Positioning is defensive, with a focus on inflation protection

    Positioning and Returns Positioning is defensive, with a focus on inflation protection CGT Asset Allocation June 2025 Contribution by Asset Class – Quarter Ending 30 June 2025 100% CGT 1.3% Cash & Tbills, Dry 23% Powder, 80% 35% Index Linked Bonds -1.4% Credit, 12% 60% UK I/L, 15% Risk Assets 2.0% I

  6. Slide 6: 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 June 20251 CGT Bonds Only Returns Performance to June 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 2015

  7. Slide 7: Beneath the surface, we have been furiously paddling

    Positioning and Returns Beneath the surface, we have been furiously paddling Sterling short rates Currency Index-linked bonds Investment trusts • Sterling short rates remain • Our multi-asset funds have • Values in index-linked • Investment trust discounts ‘higher’ for longer’. their highest allocat

  8. Slide 8: UK short rates are an attractive place to park capital in volatile markets

    Positioning and Returns UK short rates are an attractive place to park capital in volatile markets UK short-term interest rates vs. CPI (%) 4.5 4.2 4.0 3.8 3.4 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3M UK T-Bill Hedged 2Y JGB 2Y Gilt UK CPI Source: Bloomberg Finance LP, CGAM calculations. Past performance

  9. Slide 9: UK short rates are an attractive place to park capital in volatile markets

    Positioning and Returns UK short rates are an attractive place to park capital in volatile markets UK short-term interest rates vs. CPI (%) 4.5 4.2 4.1 4.0 3.8 3.4 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3M UK T-Bill Hedged 2Y JGB 2Y Gilt UK CPI Yield to Maturity on Bond X-Currency Basis Source: Bloomberg F

  10. Slide 10: We have pivoted our currency exposure further towards sterling

    Positioning and Returns We have pivoted our currency exposure further towards sterling CGT Currency Breakdown USD and GBP Currency Indices 100% 120 Other JPY 5% 90% NOK 110 80% USD 19% CHF 70% 100 EUR 2% SEK 60% 90 CAD 50% AUD 80 40% GBP 69% JPY 30% 70 USD 20% EUR 60 10% GBP 0% 50 2006 2014 2005 200

  11. Slide 11: We are responding to better values in index-linked bond markets

    Positioning and Returns We are responding to better values in index-linked bond markets, but are mindful of concerns about the long end UK real yield curve (%) CG multi-asset fund positioning (duration, years) 2.50 16 14.7 14.8 14 2.00 12 10 1.50 8.6 8 1.00 6 4.7 4 0.50 2 - 0 0 10 20 30 40 50 Dec-24

  12. Slide 12: Investment trust discounts remain attractive

    Positioning and Returns Investment trust discounts remain attractive, and this asset class makes up the bulk of our risk asset allocation Breakdown of CGT’s risk assets Equity investment trust discounts (% of NAV) 0 100% -2 80% -4 Conventional Equity, 55% -6 60% -8 40% -10 Infrastructure, 21% -12 20

  13. Slide 13: Outlook

    Outlook CGAM Q2 2025 Webinar cgam

  14. Slide 14: A tale of two markets…

    Outlook A tale of two markets… S&P 8% 500 CAPE Yield vs. 20Y TIPS Yield 7% 6% 5% 4% 3% 2.6% 2.5% 2% 1% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -1% 20Y TIPS Yield CAPE Yield Sources: Bloomberg LP, Robert Shiller database. Past perfor

  15. Slide 15: A tale of two markets…

    Outlook A tale of two markets… S&P 8% 500 CAPE Yield vs. 20Y TIPS Yield 7% 6% 5% 4% 3% 2.6% 2.5% 2% 1% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -1% 20Y TIPS Yield CAPE Yield Sources: Bloomberg LP, Robert Shiller database. Past perfor

  16. Slide 16: The Big Beautiful Bill ensures deficits as far as the eye can see

    Outlook The Big Beautiful Bill ensures deficits as far as the eye can see Elon Musk’s Verdict ono the BBB US Forecast Fiscal Balance (% of GDP) 0 ”This massive, outrageous, pork- -1 filled Congressional spending bill is -2 a disgusting abomination. Shame -3 on those who voted for it: you know you di

  17. Slide 17: Jamie Dimon quote on a crack in the bond market

    “You are going to see a crack in the bond market. It is going to happen. I just don’t know if it is going to be a crisis in six months or six years.” JAMIE DIMON (JUNE 2025) Chief Executive Officer, JP Morgan Chase Past performance is not indicative of future results. CG Asset Management Limited is

  18. Slide 18: Are the equity vigilantes waiting with clubs in the trough of disillusionment?

    Outlook Are the equity vigilantes waiting with clubs in the trough of disillusionment? Source: Gartner. Past performance is not indicative of future results CG Asset Management Limited is authorised and regulated by the Financial Conduct Authority FRN:195763 © 2025 18

  19. Slide 19: Few doubt the risk of conflict escalation

    Outlook Few doubt the risk of conflict escalation Source: AOL. Past performance is not indicative of future results CG Asset Management Limited is authorised and regulated by the Financial Conduct Authority FRN:195763 © 2025 19

  20. Slide 20: Positioning is defensive, with a focus on inflation protection

    Positioning and Returns Positioning is defensive, with a focus on inflation protection CGT Asset Allocation June 2025 Contribution by Asset Class – Quarter Ending 30 June 2025 100% CGT 1.3% Cash & Tbills, Dry 23% Powder, 80% 35% Index Linked Bonds -1.4% Credit, 12% 60% UK I/L, 15% Risk Assets 2.0% I

  21. Slide 21: www.cgasset.com

    IR@cgasset.com +44 (0)203 906 1649 20 King Street, London, EC2V 8EG www.cgasset.com

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