Capital Gearing Trust PLC GBP · LSE:CGT

Capital Gearing Trust PLC GBP — Capital Gearing Trust — Investor Presentation (January 2024)

15 slides from Capital Gearing Trust PLC GBP's investor presentation, Jan 24, 2024

  1. Slide 1: CG Asset Management Q4 2024 Webinar

    CG Asset Management Q4 2024 Webinar January 24

  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. CGAM is the appointed investment manager of Capital Gearing Trust Plc (the “Company”). The information contained in this Document has

  3. Slide 3: Positioning and Returns: Discount control policy

    Positioning and Returns The Company remains absolutely committed to its discount control policy which should revert to normal operation very soon CGT – Share Price, NAV and Discount Control to December 2023 5,350 8% 5,150 6% 4,950 4% Premium / (Discount) % 4,750 2% NAV / Price 4,550 0% 4,350 -2% 4,1

  4. Slide 4: Review of Q4 and 2023

    Review of 04 and 2023 cgam

  5. Slide 5: Over the year we have increased UK I/L bonds and repositioned equities

    Positioning and Returns Over the year we have increased (1) UK I/L bonds and (2) repositioned equities Jan 231 Dec 231 100% 100% Cash & Tbills Cash & Tbills Dry Powder Dry Powder 23% Credit 27% Credit 12% 80% 17% 80% UK I/L UK I/L (1) 19% Index Linked 28% 60% 60% 50% Index Linked 44% US I/L 19% US I

  6. Slide 6: Strong Q4, with positive contributions across all asset classes

    Positioning and Returns Strong Q4, with positive contributions across all asset classes over the year 4Q 2023 - Asset Class Contribution - CGT1 2023 - Asset Class Contribution – CGT1 CGT CGT 2.0% 3.6% Index Linked Bonds 1.4% Index Linked Bonds 0.6% Risk Assets 1.5% Risk Assets 0.4% Corporate Credit

  7. Slide 7: Discounts are attractive, with more opportunities for active engagement

    Positioning and Returns Discounts are attractive, with more opportunities for active engagement Investment Companies Premium (+) / Discount (-) % Infrastructure – Implied net real returns1 10 5 8.5% 7.4% 0 5.7% 5.9% 5.8% -5 5.3% 5.2% 5.0% 4.6% -10 -15 -20 -25 Dec 13 Dec 15 Dec 17 Dec 19 Dec 21 Dec 2

  8. Slide 8: An all-weather workhorse, we are optimistic about prospective returns

    Positioning and Returns An all-weather workhorse, we are optimistic about prospective returns CGT Asset Allocation and Yields Dec 23 27% 16% 34% US ROW UK 21% Credit Cash Short Medium Long Risk Assets Nominal Bonds Index Linked Index Linked Duration1 (years) 1.5 4.6 9.9 Yield1 5.4% 1.1% (real) 2.3%

  9. Slide 9: Outlook

    Outlook cgam

  10. Slide 10: The US government debt position is unsustainable

    Outlook The US government debt position is unsustainable US Fiscal Balance (% of GDP) Differential between real interest rate and growth rate, r - g 1.0 2020 2021 2022 2023e 2024e 2025e 0.5 0.0 -0.5 -5.4 -5.8 -5.9 -6.0 -1.0 -1.5 -2.0 -10.6 -2.5 -3.0 -15.4 -3.5 Sources: Bloomberg Finance L.P., Federa

  11. Slide 11: The short-term outlook is favourable…

    Outlook The short-term outlook is favourable… US Unemployment Rate (%) Atlanta Fed Wage Growth Tracker (%) 14 8 7 12 6 10 5 8 4 6 3 4 2 2 1 0 0 Mar 14 Sep 15 Mar 17 Sep 18 Mar 20 Sep 21 Mar 23 Dec 13 Jun 15 Dec 16 Jun 18 Dec 19 Jun 21 Dec 22 Sources: Bloomberg Finance L.P. Past performance is not in

  12. Slide 12: … but there is still a recession out there

    Outlook … but there is still a recession out there, a return of the household saving rate to historical levels would have a material impact on near term growth United States Personal Savings Rate (% of disposable income) 35% 30% 25% 20% 15% 10% 5% 0% 1959 1969 1979 1989 1999 2009 2019 Sources: FRED,

  13. Slide 13: One way of capturing the value story is currency markets

    Outlook One way of capturing the value story is currency markets GBP Consumer PPP Exchange Rate CHF NZD USD AUD % Undervalued EUR % Overvalued against GBP against GBP DKK CAD NOK SEK JPY Source: Bloomberg Past performance is not indicative of future results CG Asset Management Limited is authorised

  14. Slide 14: Any questions?

    Outlook Any questions? Past performance is not indicative of future results CG Asset Management Limited is authorised and regulated by the Financial Conduct Authority © 2024. 14

  15. Slide 15: IR@cgasset.com 20 King Street, London

    IR@cgasset.com +44 20 3906 1649 20 King Street, London, EC2V 8EG www.cgasset.com

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