RCS - Capital Gearing - Initiation Note from QuotedData

Capital Gearing TrustAnnouncement

10/07/2025 16:00

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RNS Number : 6107Q  Capital Gearing Trust  10 July 2025

Capital Gearing Trust - Initiation from QuotedData

10(th) July 2025

Cautiously positioned in volatile markets

In times of market turmoil, it is only natural that investors would look
closer at trusts such as Capital Gearing Trust (CGT), which seeks to avoid
losing shareholders' money. As we show on page 3, it has done a great job of
achieving this over more than four decades, with just two, low-single-digit
"down-years" since 1982. Management view CGT as the most defensive trust in
the UK market, just along the risk curve from cash (very low risk, but not
completely risk-free like cash, for example a bank deposit or short-term
government bills). The trust has delivered on its ambition of growing
investors' wealth in real terms (ahead of inflation), with returns to
shareholders around 13 percentage points higher than UK inflation
(https://quoteddata.com/glossary/inflation/)  - as measured by the
UK consumer price Index (CPI) (https://quoteddata.com/glossary/cpi/)  - over
the 10-year period to end April 2025.

The managers have a core belief that long-term returns for investors are
maximised by avoiding loss in down periods; the effect of this is evident in
the standout return of 273x since Peter Spiller took over responsibility for
the trust in 1982 (to end February 2025). Investors can also take comfort from
the trust's discount (https://quoteddata.com/glossary/discount-to-nav/)
 control policy, and the fact that at the end of February 2025, ahead of
Trump's tariff announcements, CGT had 32% of its portfolio in "dry powder" -
cash, treasury bills (https://quoteddata.com/glossary/treasury-bills/) , and
short-duration (https://quoteddata.com/glossary/duration/)  corporate credit
(investments in bonds issued by companies that have low sensitivity to
interest rates).

Full Research:

https://quoteddata.com/research/capital-gearing-trust-cautiously-positioned-in-volatile-markets-qd/
(https://quoteddata.com/research/capital-gearing-trust-cautiously-positioned-in-volatile-markets-qd/)

This research is also available free on our website www.quoteddata.com
(http://www.quoteddata.com) where you will also find news, performance data
and factsheets on every London listed Investment Company. QuotedData writes
and distributes research on a number of quoted companies, facilitates meetings
between those companies and existing and potential investors and assists in
raising additional capital where required.

NB: Marten & Co was paid to produce this note Capital Gearing Trust Plc,
and it is for information purposes only. It is not intended to encourage the
reader to deal in the security or securities mentioned in this report. Please
read the important information at the back of this note. QuotedData is a
trading name of Marten & Co Limited which is authorised and regulated by
the Financial Conduct Authority. Marten & Co is not permitted to provide
investment advice to individual investors categorised as Retail Clients under
the rules of the Financial Conduct Authority.

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