Capital Gearing Trust PLC GBP · LSE:CGT

Capital Gearing Trust PLC GBP — Capital Gearing Trust — Shareholder Meeting (July 2021)

20 slides from Capital Gearing Trust PLC GBP's shareholder meeting presentation, July 2021

  1. Slide 1: Capital Gearing Trust plc Annual General Meeting July 2021

    Capital Gearing Trust plc Annual General Meeting July 2021

  2. Slide 2: Disclaimer

    DISCLAIMER Before undertaking any investment decision you should seek advice from a professional financial advisor. Performance figures have been calculated by CG Asset Management Ltd based on information provided by Bloomberg, Morningstar and Northern Trust International Fund Administration Service

  3. Slide 3: The Company's objective is to preserve, and grow shareholders' real wealth

    The Company’s objective is to preserve, and over time to grow shareholders’ real wealth •1 Short Term – Capital Preservation • Minimise loses money over a 12 month period •2 Long Term – Equity Type Returns • Returns ahead of inflation and bank rates •3 Control Costs • We live in a low return world –

  4. Slide 4: We are proud of our long term track record

    We are proud of our long term track record Capital Gearing Trust – NAV Total Return Since 2000 600 500 400 300 200 100 0 Capital Gearing NAV MSCI UK UK RPI 4

  5. Slide 5: How did Capital Gearing Trust perform over the Year?

    How did Capital Gearing Trust perform over the Year? FY 2021 Q1 2021 / 2022 NAV Returns NAV Returns Capital Gearing Trust 13.9% 4.4% Inflation 2.9% 3.3% (UK RPI Annual Rate) MSCI UK Equity Index 26.6% 6.5% Source: Morningstar & Bloomberg. NAV total returns based on the financial year ending April 5t

  6. Slide 6: How has Capital Gearing Trust Performed Over 5 Years?

    How has Capital Gearing Trust Performed Over 5 Years? Capital Gearing Trust – 5 Year NAV Total Return 50 40 30 20 10 0 2016 2017 2018 2019 2020 2021 Capital Gearing Trust RPI MSCI All Share Source: Northern Trust, Morningstar, Returns from 6

  7. Slide 7: What Changes Have Been Made To The Portfolio?

    What Changes Have Been Made To The Portfolio? 100% Cash and Corporate Cash and Corporate Cash and Corporate Credit Credit 80% Credit Inflation Protected Gov't Inflation Protected Gov't 60% Bonds Bonds Inflation Protected Gov't Bonds 40% Risk Assets Risk Assets 20% Risk Assets (Listed Equities) (List

  8. Slide 8: Our largest/core equity holdings all dramatically outperformed their benchmarks in FY 2021

    Our largest/core equity holdings all dramatically outperformed their benchmarks in FY 2021 12M Company Core Holding Weight1) Comment Return Pershing Square US Equity 1.8% 86% • CDS hedge put in place ahead of March sell-off Holdings • Poorly understood by market • Able to buy at up to 40% discount t

  9. Slide 9: Case Study: Gabelli Value Plus – Value comes into its own

    Case Study: Gabelli Value Plus – Value comes into its own Gabelli Value Plus plc – NAV Per Share and Share Price Performance 180 160 140 120 100 80 Net Assets Per Share Share Price Source: Bloomberg 9

  10. Slide 10: The make up of our risk asset portfolio looks different from any mainstream index

    The make up of our risk asset portfolio looks quite different from any mainstream index CGT Risk Assets – Asset Exposure and Geographic Exposure 100% Gold UK Japan 80% Equities EM UK Europe 60% (ex UK) Alternatives 40% Japan EM US 20% Property Europe (ex UK) US 0% Asset Exposure CGAM MSCI Global Sou

  11. Slide 11: Both the equity and bond portfolios have contributed to outperformance and stability

    Both the equity and bond portfolios have contributed to the outperformance and the stability of returns CGT Risk Assets* Returns (%) CGT Bonds Only* Returns (%) 140 40 120 30 100 80 20 60 40 10 20 0 0 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 -20 CGT Risk Assets Investmen

  12. Slide 12: The negative correlation between TIPS and UK equities has been among the most reliable

    The negative correlation between TIPS and UK equities has been amongst the most reliable asset allocation tools over 20 years Annual Returns % of UK Stocks and TIPS - unhedged in GBP (1998-2020) 40 30 20 10 0 -10 -20 -30 -40 2005 2013 1998 1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011

  13. Slide 13: The primacy of inflation targeting by central banks is dead

    The primacy of inflation targeting by central banks is dead “Our revised statement emphasizes that maximum employment is a broad-based and inclusive goal. This change reflects our appreciation for the benefits of a strong labor market, particularly for many in low and moderate income communities. Th

  14. Slide 14: Last time round QE did little to stoke inflation… might it be different this time?

    Last time round QE did little to stoke inflation… might it be different this time? Broad Money Growth1) – Japan, US & World (YoY %) 30 25 QE 1-4 did little more than 20 prevent the collapse in broad money growth 15 10 5 0 Apr 00 Apr 16 Apr 92 Apr 94 Apr 96 Apr 98 Apr 02 Apr 04 Apr 06 Apr 08 Apr 10 A

  15. Slide 15: The excessive levels of debt in the world require an extensive period of financial repression

    The excessive levels of debt in the world require an extensive period of financial repression Global Non-Financial Credit as % of GDP 350 300 250 200 150 100 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Global Advanced Economies EM Source:

  16. Slide 16: How is the Company Positioned For the Future?

    How is the Company Positioned For the Future? •1 Defensively positioned • More than ½ of the portfolio in cash, corporate credit or inflation linked government bonds •2 Focused on capital preservation • Short term preservation is a tightrope as defensive assets are bid up to levels they may no longe

  17. Slide 17: We are proud of our long term track record

    We are proud of our long term track record Capital Gearing Trust – NAV Total Return History (Rebased) Apr 1982 to Apr 2021 20,000 18,000 16,000 CGT 14,000 12,000 10,000 8,000 6,000 MSCI UK 4,000 2,000 0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 20

  18. Slide 18: If you have any questions or comments please get in touch

    If you have any questions or comments please get in touch Capital Gearing Trust’s Website – www.capitalgearingtrust.com Capital Gearing Trust Contact - company.secretary@capitalgearingtrust.com CG Asset Management Contact - Theresa.Russell@cgasset.com 18

  19. Slide 19: Slide 19

  20. Slide 20: Disclaimer

    DISCLAIMER Before undertaking any investment decision you should seek advice from a professional financial advisor. Performance figures have been calculated by CG Asset Management Ltd based on information provided by Morningstar and Northern Trust International Fund Administration Services (Ireland)

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