Capital Gearing Trust
Discussion
It's a mixed asset investment trust with a wealth preservation mandate.
Similar trusts include Ruffer Investment Company and Personal Assets Trust.
There are fund equivalents of each of those too.
Keep in mind with the charges screenshot you've mentioned that's from HL so it will include stamp duty and HL dealing and platform fees neither of which are under the control of the investment trust.
If you want to see the investment trust charges and holdings look on their website.
https://www.capitalgearingtrust.com/
Not sure exactly what you're asking but I have or have had money in all of them and they have historically done what they say on the tin.
Will they continue to do so? Who knows
Similar trusts include Ruffer Investment Company and Personal Assets Trust.
There are fund equivalents of each of those too.
Keep in mind with the charges screenshot you've mentioned that's from HL so it will include stamp duty and HL dealing and platform fees neither of which are under the control of the investment trust.
If you want to see the investment trust charges and holdings look on their website.
https://www.capitalgearingtrust.com/
Not sure exactly what you're asking but I have or have had money in all of them and they have historically done what they say on the tin.
Will they continue to do so? Who knows
Thank you BS, I need to find a couple of hours to read up as it’s totally different to my usual ‘all in’ approach in equities. I’m currently sitting in approx 90% equities / 10% cash. Wondering if it’s sensible to consider a little ‘wealth preservation’ as we go through the next cycle of higher inflation etc
Phooey said:
Thank you BS, I need to find a couple of hours to read up as it’s totally different to my usual ‘all in’ approach in equities. I’m currently sitting in approx 90% equities / 10% cash. Wondering if it’s sensible to consider a little ‘wealth preservation’ as we go through the next cycle of higher inflation etc
Look here https://www.cgasset.com/ as they have lots of content and links to webinars and interviews.Best to think of it and similar funds as potential full portfolios that have ground out consistently good returns to date over the long term with minimal drawdowns.
Funds like these are not magic bullets in so much as you still have the basic trade-off that you'll get less reward in return for less risk.
They aren't the sort of investment you trade in and out of as the dial barely moves over a week or month or two and my own view is that holding 10% or whatever you consider "a little" in these types of fund is pretty pointless as if the other 90% is in equities it won't make any difference if the s
t properly hits the fan.bhstewie said:
hstewie said: with a wealth preservation mandate.
What exactly is that? To minimise drawdowns during market volatility OR instead to provide inflation-beating long term returns?https://www.investorschronicle.co.uk/ideas/2021/09...
"fund that limits downside can be helpful in balanced portfolios in all market environments."
https://www.investorschronicle.co.uk/news/2021/02/...
There’s a lot to learn from wealth preservation investment trusts, which broadly aim to protect and grow assets in real terms over time.
bhstewie said:
hstewie said: Look here https://www.cgasset.com/ as they have lots of content and links to webinars and interviews.
Best to think of it and similar funds as potential full portfolios that have ground out consistently good returns to date over the long term with minimal drawdowns.
Funds like these are not magic bullets in so much as you still have the basic trade-off that you'll get less reward in return for less risk.
They aren't the sort of investment you trade in and out of as the dial barely moves over a week or month or two and my own view is that holding 10% or whatever you consider "a little" in these types of fund is pretty pointless as if the other 90% is in equities it won't make any difference if the st properly hits the fan.
Thanks for link.Best to think of it and similar funds as potential full portfolios that have ground out consistently good returns to date over the long term with minimal drawdowns.
Funds like these are not magic bullets in so much as you still have the basic trade-off that you'll get less reward in return for less risk.
They aren't the sort of investment you trade in and out of as the dial barely moves over a week or month or two and my own view is that holding 10% or whatever you consider "a little" in these types of fund is pretty pointless as if the other 90% is in equities it won't make any difference if the s
t properly hits the fan.I get your point re 10% being "pointless" - and to some portfolios it quite possibly is, however that 10% to me is approx 2-3yrs living expenses. My thought is if the s
t does hit the fan, and worse case scenario I am out of work, then I can leave the 90% equities to (hopefully) recover some-all lost ground.bhstewie said:
hstewie said: I wonder if Derek means it won't influence the overall picture much as 10% of a portfolio rather than as a whole portfolio?
That would make sense. I toyed about with the idea myself at one point, and backtesting a 10% and 15% allocation made such little difference to overall portfolio volatility/drawdown that it just wasn't worth it for me. I agree with your earlier point that it needs to be a meaningful allocation, if not it's a bit pointless. NowWatchThisDrive said:
You could achieve more or less the same thing with Lifestrategy 60, pay less in costs, and not run into any of the potential disadvantages of owning investment trusts.
What disadvantages?I'm aware of spread and stamp duty and lack of FSCS protection and potential discount/premium issues but are there others?
Agreed LifeStrategy is worth a look I guess it depends how much you put on the commentary that traditional 60/40 is dead.
Vanguard certainly don't seem to think so but on every side of that debate "well they would say that wouldn't they" seems to apply
Nothing to say you can't mix and match a bit and spread your eggs over a few baskets.
si800 said:
800 said:Derek Chevalier said:
Yep, so I'm not quite clear what purpose they serve in a portfolio. They don't cleanly fit in either growth or defensive assets.
If that's not defensive, what would you class as defensive?
Edited by Derek Chevalier on Tuesday 19th April 19:10
Derek Chevalier said:
si800 said:
My guess is the 5Y drawdown you have from the factsheet is a monthly snapshot, but if you look at the actual peak to trough during COVID I can see >10% falls vs ~-1% to -3% for a high-quality bond fund (which I'd class as defensive)800 said:mikeiow said:
Derek Chevalier said:
si800 said:
My guess is the 5Y drawdown you have from the factsheet is a monthly snapshot, but if you look at the actual peak to trough during COVID I can see >10% falls vs ~-1% to -3% for a high-quality bond fund (which I'd class as defensive)800 said:Gassing Station | Finance | Top of Page | What's New | My Stuff