Capital Gearing Trust (CGT)

CGT is a long-established, defensively positioned multi-asset investment company focused on preserving and steadily growing investors’ real wealth over time. Managed byCG Asset Management, the trust aims to deliver long-term returns ahead of inflation while minimising the risk of significant capital loss, using a flexible global portfolio spanning equities, bonds and commodities without leverage or short selling. As of 31 January 2026, the portfolio was heavilyweighted towards inflation protection, with around 45% in index-linked government bonds alongside allocations to equities, credit and liquidity. Over the year to January 2026 the share price total return was 5.1%, and since inception in 1982 the trust has delivered returns of over 290x investors’ capital with only two losing years, highlighting its exceptional long-term wealth preservation record under its long-standing manager and founder Peter Spiller. In this episode, co-manager Chris Clothier explains how the trust is built to withstand uncertain markets, stressing the importance of preparing portfolios in advance rather than reacting to geopolitical shocks. He outlines the three core building blocks - risk assets, inflation-linked bonds and a strategic liquidity reserve - and how allocation decisions are driven by valuations, the business cycle and long-term macro views, particularly around inflation and global debt. Clothier also discusses concerns over elevated government debt and the potential for bond market stress, the role of investment trusts in exploiting discounts, and the trust’s focus on avoiding losses while delivering real returns. The conversation also touches on active shareholder engagement and the importance of retail investors.