Capital Gearing Trust PLC GBP · LSE:CGT
Capital Gearing Trust PLC GBP — Capital Gearing Trust — Shareholder Meeting (July 2025)
19 slides from Capital Gearing Trust PLC GBP's shareholder meeting presentation, July 2025
Slide 1: Capital Gearing Trust AGM
CG Asset Management Capital Gearing Trust AGM July 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: Full Year Results 2025: Key Highlights
Full Year Results 2025: Key Highlights NAV Total Return: +4.1% Share Price Total Return: +3.6% Our Discount Control Policy (CPI Return: 2.6%) (“DCP”) has kept our shares trading close to NAV All parts of the portfolio delivered The CGT Board have proposed CGT remains defensively positioned, a positi
Slide 4: Since 1982 the CGT share price total return has been >274x
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 12,000 10,000 MSCI UK 8,000 NAV Total Return 6,000 4,000 2,000 0 1992 1993 2023 2024 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1994 1995 1996 1997 1
Slide 5: Positioning and Returns
Positioning and Returns cgam
Slide 6: Positioning is defensive, with a focus on inflation protection
Positioning and Returns Positioning is defensive, with a focus on inflation protection CGT Asset Allocation March 2025 Contribution by Asset Class, 12 months to 31 March 2025 100% CGT 4.1% Cash & Tbills, 23% Dry Powder, 32% 80% Index Linked Bonds 1.2% Credit,9% UK I/L, 9% 60% Risk Assets 2.1% Hedged
Slide 7: We develop non-mainstream portfolios, seeking consistent excess returns from all elements
Positioning and Returns We develop non-mainstream portfolios, seeking to generate consistent excess returns from all elements of the portfolio Dry Powder – Hedged JGBs vs. UK Gilts (YTM %)1) Credit – Tesco Index-Linked vs. Nominal (Spread bps)1) UKT 2Y 4.1% TSCO 5/34 138 35 bps 117 bps JGB 2Y 4.4% T
Slide 8: 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 March 20251 CGT Bonds Only Returns Performance to March 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 9: The long-term returns of the IT Index have been similar to the MSCI World
Positioning and Returns The long-term returns of the IT Index have been similar to the MSCI World Investment Trust Index and MSCI World Total Returns (x) Investment Trust Index and MSCI World TR (Log x) 25 20 10 15 10 1 5 0 0.1 1992 1996 2000 2004 2008 2012 2016 2020 2024 1992 1996 2000 2004 2008 20
Slide 10: 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 March 20251 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 Dec-24 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-2
Slide 11: Outlook
Outlook cgam
Slide 12: We aim to ensure that each element of the portfolio contributes to performance
Outlook We aim to ensure that each element of the portfolio contributes to the overall fund’s performance. So far, the process is working 5Y relative performance by Asset Class 5Y relative performance by risk sub-Asset Class 60% 120% 53% 108% 51% 50% 100% 89% 40% 80% 69% 30% 60% 21% 20% 40% 27% 9% 1
Slide 13: We expect our underweight to risk assets to continue
Outlook We expect our underweight to risk assets to continue: US equity market valuations continue to appear stretched, particularly when compared with US real yields… S&P 500 CAPE Yield vs. 20Y TIPS Yield 8% 7% 6% 5% 4% 3% 2.8% 2.6% 2% 1% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20
Slide 14: Government debt continues to grow against a backdrop of weak growth
Outlook Government debt continues to grow against a backdrop of weak growth and elevated interest rates. The latest official forecasts suggests that this is set to persist US Government Debt (% of GDP) US Forecast Fiscal Balance (% of GDP) 0 140 -1 120 -2 100 -3 80 -4 60 -5 40 -6 20 -7 0 1990 1991 1
Slide 15: The term premium for very long US bonds has moved a long way
Outlook The term premium for very long US bonds has moved a long way, given the deteriorating fiscal backdrop, it may yet move further Spread differential between US 10Y and US 30Y Treasuries (30Y less 10Y, bps) 160 140 120 100 80 60 40 20 0 -20 -40 Sources: Bloomberg Finance LP. Past performance is
Slide 16: The same trend is visible in the UK
Outlook The same trend is visible in the UK, but without the exorbitant privilege of reserve currency issuance… UK Government Debt (% of GDP) UK Forecast Fiscal Balance (% of GDP) 160 0 140 -1 120 -2 100 80 -3 -3.1 60 -3.5 -4 40 -4.1 -4.2 20 -5 -5.2 -5.2 0 2002 2021 1990 1991 1993 1994 1996 1997 199
Slide 17: Beware of false prophets: official forecasts have been more optimistic than reality
Outlook Beware of false prophets: official forecasts have routinely been more optimistic than reality UK OBR Forecasts of current deficits vs. actual path of current deficit (% of GDP) 16 14 12 10 Current deficit (% of GDP) 8 6 4 2 0 -2 -4 2008-09 2010-11 2012-13 2014-15 2016-17 2018-19 2020-21 2022
Slide 18: The landscape of the investment trust market has changed
Outlook The landscape of the investment trust market has changed Equity investment trust discounts (% of NAV) 0 -2 -4 -6 -8 -10 -12 -14 -16 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Deutsche Numis Investment Companies Dataset. Past performance is not indicative of future results CG A
Slide 19: www.cgasset.com
IR@cgasset.com +44 20 3906 1643 20 King Street, London, EC2V 8EG www.cgasset.com
Capital Gearing Trust — Shareholder Meeting (July 2025) on 6ix