Capital Gearing Trust Plc

Mixed Asset 0-40% Equity

Rated Fund 2016-20. A good pick for those looking for wealth preservation

Capital Gearing is a wealth preservation trust. Manager Peter Spiller only invests where he sees value. The trust sits in the Association of Investment Companies’ flexible investment sector, created in 2016 for trusts investing in a range of assets. Capital Gearing is one of the few investment trusts that aim to produce an absolute return. This is not to say it does not go through periods of underperformance, but Spiller’s long-term record is exceptional. He has managed the trust since its inception in 1982. Alastair Laing and Chris Clothier assist him.

The trust’s portfolio is mainly made up of bonds, equities and property – it has small holdings in infrastructure and gold. Investment in equities is normally through investment trusts and other collective investment vehicles. It is completely flexible in its asset allocation, and had a near 100% weighting to equities in the early 1980s when valuations were low and corporate balance sheets looked very strong. In recent years Spiller has been more sceptical about valuations and the trust’s equity exposure has been kept low. It was defensively positioned at the end of 2019, with just 16% in equities and an emphasis on index-linked government bonds in its fixed-income portfolio. It also had 5% in cash, 2% in infrastructure and 1% in gold.

The board adopted a zero discount policy in 2015 to control a premium that was excessive at times. Since then the shares have better reflected the value of assets. They traded on a small premium of around 2% for most of 2019.

Narrative and ratings content all as of 01 January 2020.

See all Money Observer rated funds
Name
Capital Gearing Trust Plc
Manager
CG Asset Management Ltd
Type
Closed Ended Investment Company
ISIN
GB0001738615
Sector
Flexible Investment
Launched
09/02/1973
OCF
0.9 %
Risk Rating
1
3 Year Sharpe
0.70
3 Year Alpha
2.20
Yield
0.9 %
Benchmark
UK Retail Price
Fund Size
£ 481.38 million
NAV
4,082
Gearing
98
Discount Premium
3
To preserve the real wealth of shareholders and to achieve absolute total return over the medium to longer term. The company aims to achieve its investment objectives through long only investment in quoted closed-ended funds and other collective investment vehicles, bonds, commodities and cash, as considered appropriate.
Holding %
iShares Core FTSE 100 ETF GBP Dist 4.23 %
United Kingdom of Great Britain and Northern Ireland 0.12% 3.11 %
Vanguard FTSE Japan ETF $Dis 2.75 %
United States Treasury Bonds 2% 2.11 %
North Atlantic Smaller Cos Ord 2.02 %
United States Treasury Bonds 4% 1.55 %
United Kingdom of Great Britain and Northern Ireland 1.48 %
Grainger PLC 1.45 %
United States Treasury Notes 8% 1.42 %
United States Treasury Bonds 8% 1.42 %
Region %
United Kingdom 37.14 %
Japan 17.49 %
Europe - ex Euro 15.20 %
Eurozone 11.53 %
United States 9.84 %
Sector %
Real Estate 27.84 %
Financial Services 18.70 %
Industrials 8.82 %
Healthcare 8.02 %
Consumer Defensive 7.74 %
Consumer Cyclical 7.05 %
Technology 5.52 %
Communication Services 5.06 %
Name
CG Asset Management Ltd
Address
EC2R 6AY, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Chris Clothier
Joined 09/23/2015

Chris Clothier, Co-manager, joined CGAM in 2015, prior to that he was a director at IPGL Limited, a private investment vehicle with a range of public and private interests predominantly in the financial services industry, where he worked for six years. Before that he worked at MMC Ventures, an early-stage venture capital firm. Chris studied Chemistry at New College, Oxford.

Alastair Laing
Joined 01/01/2011

Alastair Laing – CEO, Co-manager, joined CGAM in 2011, and has co-managed the funds since that date. He was appointed as a non-executive director of Capital Gearing Trust plc in 2013. Alastair joined CGAM from Hg Capital LLP (a pan-European private equity fund) and previously worked with the mergers and acquisitions team at Deloitte LLP. Alastair was educated at Edinburgh University and was an MBA Scholar at London Business School. He is a member of the Chartered Institute of Accountants of Scotland.

Peter Spiller
Joined 01/01/1982

Peter Spiller – Founder, CIO, Co-manager. Prior to founding CGAM in 2000, Peter was a partner and strategy director at Cazenove & Co Capital Management and a US equity investor at Capel Cure & Myers. Peter has managed all the funds run by CG Asset Management since inception other than Capital Gearing Trust which he began managing in 1982. Peter Spiller was educated at Wellington College and Christ Church, Oxford, where he read Politics, Philosophy and Economics. After initial training, he became an oil analyst at Myers & Co. (subsequently Capel Cure & Myers), followed by a stint of international corporate finance at Robert Fleming and the European Arab Bank, specialising in Eurobonds. In 1980, he returned to Capel Cure & Myers and ran US portfolios until 1988, when he moved to Cazenove & Co. in the same role. He directed strategy for the Capital Management Division when he became a partner in 1994. When the Cazenove partnership incorporated in 2001, he set up CG Asset Management Limited with David Brazier, one of his partners. He has run Capital Gearing trust since 1982, since when the share rice has risen from 21¼p (15/04/82) to 2065p (27/02/08). CG Asset Management has total funds under management of £1200m, in equities, index-linked, conventional bonds, real estate, private equity and commodities. He is the Chief Executive Officer of CGAM.

Data provided by Morningstar.

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