Our investment approach
Steady growth,
strong principles
Capital Gearing Trust follows a multi-asset strategy focused on preserving real wealth and delivering long-term performance in excess of inflation.
We take the view that a commitment is a commitment and one you can’t just row back on.
At Capital Gearing Trust, we are committed to providing investors with a resilient and carefully managed portfolio designed to preserve and grow wealth over the long term.
We have built a strong reputation for our disciplined investment approach, focusing on capital preservation and steady growth.
Established with a long-term perspective, the trust follows a flexible asset allocation strategy to navigate market fluctuations while minimising risk. Our portfolio balances equities, index-linked bonds, and other assets to deliver consistent, risk-adjusted returns. With a track record of prudent decision-making and a focus on sustainable wealth creation, Capital Gearing Trust remains a reliable choice for investors seeking stability in uncertain markets.
building the portfolio
Where we invest
Our portfolio is structured across three board investment buckets, which we adjust based on market conditions and strategic opportunities
Managed Liquidity Reserve
Cash and short-dated bonds that provide us with liquidity and optionality in uncertain markets
Inflation-Linked Bonds
These government bonds protect against inflation and are a key component of our capital preservation strategy
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Risk Assets
We invest in listed investment trusts, ETFs, and property companies offering long-term growth potential
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What is an investment trust
An investment trust is a publicly listed company that pools investors’ money to invest in a diversified portfolio of assets. Unlike open-ended funds, investment trusts have a fixed number of shares, allowing for a long-term investment approach without the need to manage inflows and outflows.
This structure provides stability and flexibility, enabling us to take a patient, strategic approach to capital allocation.
Our multi-asset strategy
Capital Gearing Trust aims to deliver long-term, inflation-beating returns through a conservative, benchmark-unconstrained investment strategy focused on capital preservation.
Managed by CG Asset Management, the trust maintains a diversified, long-only portfolio across equities, bonds (especially index-linked), cash, property, and alternatives. Its asset allocation is actively adjusted based on economic conditions, with the goal of achieving steady real returns while minimising volatility and drawdowns. The trust avoids leverage and shorting, and is structured to protect investors’ wealth across market cycles.
CGT Asset Allocation June 2025
Contribution by Asset Class LTM June 2025
Discount control mechanism
Capital Gearing Trust introduced its Discount Control Mechanism in 2015 to help keep the share price closely aligned with the net asset value (NAV). By issuing or buying back shares in response to market demand, the Trust aims to offer investors fairer pricing and improved liquidity.
In a sector where many investment trusts trade at persistent discounts, CGT has been a recognised leader in discount management – consistently delivering one of the narrowest trading ranges in the industry. This approach reflects our long-standing commitment to shareholder alignment and capital preservation.
Currency Exposure, %
Time to Liquidation, days
Duration and Yield
| Weight | Duration (Yrs) | Yield (%) | Rating | |
|---|---|---|---|---|
| Cash & Tbills | 23% | 1.0 | 4.1 | A+ |
| I/L Bonds | 39% | 7.2 | 4.3/1.4 | AA |
| Corp. Bonds | 11% | 3.2 | 5.8 | A/A- |
| Risk Assets (HY Credit) | 1% | 1.1 | 9.0 | BB/BB- |
| Risk Assets (Div Yield Equity) | 26% | n.a. | 5.0 | n.a. |
| CGT | 100% | 4.6 |
Our performance
CGT asset allocation 2011–2025
Consistent. Resilient. Proven.
Positioning and Returns
Top equity and
bond holdings
Top 10 Equity Holdings
| Asset | Weight |
|---|---|
| North Atlantic Small Companies | 2.1% |
| Vanguard FTSE 100 ETF | 1.9% |
| International Public Partnership | 1.4% |
| HICL Infrastructure | 1.3% |
| Vanguard FTSE 250 ETF | 1.2% |
| JPMorgan Japan ETF | 1.2% |
| 3I Infrastructure | 1.2% |
| BH Macro | 1.1% |
| Blackrock Energy | 1.0% |
| Smithson Investment Trust | 1.0% |
| 13.3% |
Top 10 Bond Holdings
| Asset | Weight |
|---|---|
| UKTI 0.125% 10/08/31 | 6.2% |
| JGB 0.60% 01/01/27 | 5.5% |
| UKTI 0.75% 22/11/33 | 3.8% |
| US I/L 1.75% 15/01/34 | 3.4% |
| UKTI 1.25% 22/11/32 | 2.7% |
| US I/L 1.375% 15/07/33 | 2.6% |
| JTDB 0.00% 20/11/25 | 2.4% |
| JGB 0.70% 01/02/27 | 2.4% |
| UKTI 0.125% 22/03/29 | 2.4% |
| US I/L 0.625% 15/01/26 | 2.4% |
| 33.9% |
Five inputs drive our asset allocation,
underpinned by a focus on duration
- Valuations
-
All major asset classes
Absolute / Relative / Relative to own history - Core macroeconomics beliefs
- Guiding long-term asset allocation
- Business cycle
-
Responding to changing inflation and
growth environment - Monetary environment
-
Degree to which monetary backdrop is
supportive of or threatening to asset prices - Investor behaviour
-
Degree of risk taking / speculative
behaviours
Our people and leadership
Meet the team committed to your future
Invest with confidence today
Our goal is simple: to protect and steadily grow your wealth over time, helping you stay ahead of inflation.