Capital Gearing Trust PLC GBP · LSE:CGT

Capital Gearing Trust PLC GBP — Capital Gearing Trust — Investor Presentation (April 2023)

18 slides from Capital Gearing Trust PLC GBP's investor presentation, April 2023

  1. Slide 1: CG Asset Management Q1 2023 Webinar

    CG Asset Management Q1 2023 Webinar April 2023

  2. Slide 2: Disclaimer

    2 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 (this "Document") is, in the United Kingdom, being made to, or directed to, only (i) per

  3. Slide 3: Contents

    3 CONTENTS 1. Returns and Positioning 2. Outlook 3. Q & A Past performance is not indicative of future results. CG Asset Management Limited is authorised and regulated by the Financia l Conduct Authority, © 2023.

  4. Slide 4: Returns and Positioning

    4 Returns and Positioning CGAM Multi Asset Update

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

    5 OUTLOOK Positioning remains defensive with a focus on inflation protection CGT Asset Allocation March 2023 100% Cash & Tbills • Reduce portfolio duration & volatility Dry Powder • Provide optionality Credit • Deliver better returns than cash 80% 60% Index Linked Index Linked • Provide hedge agains

  6. Slide 6: Bond market weakness has offered an opportunity to increase exposure

    6 RETURNS AND POSITIONING Bond market weakness has offered an opportunity to increase exposure CGT Bonds* Returns Recent Performance LTM To Mar 2023 (%) CGT Bond Portfolio Weighting Bonds 100% 1.2% 80% 60% 40% 20% 0% -15.3% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Sterling Bond Index Capi

  7. Slide 7: Risk asset weightings have continued to fall, led by a reduction in property

    7 RETURNS AND POSITIONING Risk asset weightings have continued to fall, led by a reduction in property CGT Risk Assets* Returns Recent Performance LTM To Mar 2023 (%) CGT Risk Assets Evolution Risk Assets 100% 80% 60% 40% 20% -8.8% -10.1% 0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Invest

  8. Slide 8: During Q1 a discount developed in CGT, so the Board is now buying back shares

    8 RETURNS AND POSITIONING During Q1 a discount developed in CGT, so the Board is now buying back shares CGT – Share Price, NAV and Discount Control 5,350 7% 6% 5,150 5% 4,950 Premium / (Discount) % 4% 4,750 3% NAV / Price 4,550 2% 1% 4,350 0% 4,150 -1% 3,950 -2% 3,750 -3% Apr 18 Jul 18 Oct 18 Jan 19

  9. Slide 9: In a difficult environment, returns remain in-line with comparators

    9 RETURNS AND POSITIONING In a difficult environment, returns remain in-line with comparators CGT NAV vs. Gilts & UK Equities – Total Returns CGT NAV vs. Conservative Private Client Index – Total Returns 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Feb 17 Feb 18 Feb 19 Feb 20 Feb 21 Feb 22 Feb 23 Aug 16

  10. Slide 10: Outlook

    10 Outlook What we are thinking about

  11. Slide 11: One foot is on the brake and the other is on the accelerator

    11 OUTLOOK One foot is on the brake and the other is on the accelerator Past performance is not indicative of future results. CG Asset Management Limited is authorised and regulated by the Financia l Conduct Authority, © 2023.

  12. Slide 12: Elevated debt is causing fragility across the economy and financial system

    12 OUTLOOK Elevated debt is causing fragility across the economy and financial system 350 300 Total = 258% 250 79% Debt to GDP (%) 200 150 75% 100 50 104% 0 1953 1983 1984 2014 2015 1947 1949 1950 1952 1955 1956 1957 1959 1960 1962 1963 1964 1966 1967 1969 1970 1972 1973 1974 1976 1977 1979 1980 198

  13. Slide 13: Jerome Powell quote, FOMC press conference, 1 February 2023

    13 “[Markets] see inflation comings down in some cases much quicker than that, so we will have to see. We have a different view, a different forecast really. Given that, I don’t see the rates coming down” JEROME POWELL FOMC PRESS COMMITTEE, 1 FEBRUARY 2023 Past performance is not indicative of futur

  14. Slide 14: While the impact of Fed hiking on the real economy appears modest so far

    14 OUTLOOK While the impact of Fed hiking on the real economy appears modest so far, we have concerns about the wider macroeconomic impact Fed Balance Sheet Run-off Forecast ($ tn) M2 Money Supply – YoY % Change 10 30 9 25 8 7 20 Total Assets ($ tn) M2 YOY % change 6 5 15 4 10 3 2 5 1 0 - 1960 1965

  15. Slide 15: SVB was an extreme example of a universal issue in the banking system

    15 OUTLOOK SVB was an extreme example of a universal issue in the banking system Tier 1 Capital and Adjusted Tier 1 Capital (after MTM losses on HTM portfolios) 14% 12% 10% 8% 6% 4% 2% 0% JPM CITI C SVB BAC WFC MTB CFG CMA ZION RF FITB PNC KEY TFC USB UBS Common Equity Tier 1 Capital Ratio Tier 1 MT

  16. Slide 16: How many cockroaches are there in the kitchen?

    16 OUTLOOK How many cockroaches are there in the kitchen? Past performance is not indicative of future results. CG Asset Management Limited is authorised and regulated by the Financia l Conduct Authority, © 2023.

  17. Slide 17: Any questions?

    17 OUTLOOK Any questions? Past performance is not indicative of future results. CG Asset Management Limited is authorised and regulated by the Financia l Conduct Authority, © 2023.

  18. Slide 18: CG Asset Management contact details

    IR@cgasset.com +44 20 3906 1637 www.cgasset.com CG Asset Management Ltd 20 King Street London EC2V 8EG

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