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Index or wealth preservation for investments over unknown period of time?
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A slight concern is that CGT may be quite expensive now as it has historically held a high amount of linkers and now, with inflation rising, the benefit of these could already be priced in.
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If you pick through CGTs holdings you find that there is very little in traditional large cap equites and the majority of the none bond holdings are in property and infrastructure trusts. Those particular trusts focus on index (inflation) linked returns. Along with a big chunk of US TIPS there is a big play on inflation going on.1
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Prism said:If you pick through CGTs holdings you find that there is very little in traditional large cap equites and the majority of the none bond holdings are in property and infrastructure trusts. Those particular trusts focus on index (inflation) linked returns. Along with a big chunk of US TIPS there is a big play on inflation going on.0
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aroominyork said:Prism said:If you pick through CGTs holdings you find that there is very little in traditional large cap equites and the majority of the none bond holdings are in property and infrastructure trusts. Those particular trusts focus on index (inflation) linked returns. Along with a big chunk of US TIPS there is a big play on inflation going on.
CGT is one of the trusts that I would be reasonably happy to put money into that I needed in the next 5 years, accepting that there is a chance of loss but hopefully not a big one. Personal Assets is too similar to the rest of my investments with its quality growth focus.1 -
Prism said:aroominyork said:Prism said:If you pick through CGTs holdings you find that there is very little in traditional large cap equites and the majority of the none bond holdings are in property and infrastructure trusts. Those particular trusts focus on index (inflation) linked returns. Along with a big chunk of US TIPS there is a big play on inflation going on.
CGT is one of the trusts that I would be reasonably happy to put money into that I needed in the next 5 years, accepting that there is a chance of loss but hopefully not a big one. Personal Assets is too similar to the rest of my investments with its quality growth focus.0 -
aroominyork said:Prism said:aroominyork said:Prism said:If you pick through CGTs holdings you find that there is very little in traditional large cap equites and the majority of the none bond holdings are in property and infrastructure trusts. Those particular trusts focus on index (inflation) linked returns. Along with a big chunk of US TIPS there is a big play on inflation going on.
CGT is one of the trusts that I would be reasonably happy to put money into that I needed in the next 5 years, accepting that there is a chance of loss but hopefully not a big one. Personal Assets is too similar to the rest of my investments with its quality growth focus.
I think you would have enormous problems duplicating CGT with index funds. Then of course CGT change their asset allocation depending on economic conditions.0 -
Linton said:aroominyork said:Prism said:aroominyork said:Prism said:If you pick through CGTs holdings you find that there is very little in traditional large cap equites and the majority of the none bond holdings are in property and infrastructure trusts. Those particular trusts focus on index (inflation) linked returns. Along with a big chunk of US TIPS there is a big play on inflation going on.
CGT is one of the trusts that I would be reasonably happy to put money into that I needed in the next 5 years, accepting that there is a chance of loss but hopefully not a big one. Personal Assets is too similar to the rest of my investments with its quality growth focus.
I think you would have enormous problems duplicating CGT with index funds. Then of course CGT change their asset allocation depending on economic conditions.CGT's annual report indeed shows most - but not all - IL govt bonds are US.You couldn't duplicate, but could perhaps achieve a reasonably close fit, using a risk-adjusted multi-asset funds and some linkers. I cannot, however, substantiate that view with evidence.
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aroominyork said:Linton said:aroominyork said:Prism said:aroominyork said:Prism said:If you pick through CGTs holdings you find that there is very little in traditional large cap equites and the majority of the none bond holdings are in property and infrastructure trusts. Those particular trusts focus on index (inflation) linked returns. Along with a big chunk of US TIPS there is a big play on inflation going on.
CGT is one of the trusts that I would be reasonably happy to put money into that I needed in the next 5 years, accepting that there is a chance of loss but hopefully not a big one. Personal Assets is too similar to the rest of my investments with its quality growth focus.
I think you would have enormous problems duplicating CGT with index funds. Then of course CGT change their asset allocation depending on economic conditions.
You couldn't duplicate, but could perhaps achieve a reasonably close fit, using a risk-adjusted multi-asset funds and some linkers. I cannot, however, substantiate that view with evidence.
Perhaps someone can explain.
https://www.capitalgearingtrust.com/sites/cgt/files/2021-02/Portfolio/CGT_Portfolio_April_2021.pdf
https://www.capitalgearingtrust.com/sites/cgt/files/2021-02/CGT-2021Annual-Report-Accounts.pdf
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Linton said:aroominyork said:Linton said:aroominyork said:Prism said:aroominyork said:Prism said:If you pick through CGTs holdings you find that there is very little in traditional large cap equites and the majority of the none bond holdings are in property and infrastructure trusts. Those particular trusts focus on index (inflation) linked returns. Along with a big chunk of US TIPS there is a big play on inflation going on.
CGT is one of the trusts that I would be reasonably happy to put money into that I needed in the next 5 years, accepting that there is a chance of loss but hopefully not a big one. Personal Assets is too similar to the rest of my investments with its quality growth focus.
I think you would have enormous problems duplicating CGT with index funds. Then of course CGT change their asset allocation depending on economic conditions.
You couldn't duplicate, but could perhaps achieve a reasonably close fit, using a risk-adjusted multi-asset funds and some linkers. I cannot, however, substantiate that view with evidence.
Perhaps someone can explain.
https://www.capitalgearingtrust.com/sites/cgt/files/2021-02/Portfolio/CGT_Portfolio_April_2021.pdf
https://www.capitalgearingtrust.com/sites/cgt/files/2021-02/CGT-2021Annual-Report-Accounts.pdf
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Where listed, the coupons suggest that almost all of the US, Swedish and UK bonds are linkers. It's not the most informative holdings list I've ever seen, but I think you have to take it on trust that the asset allocation shown is correct.1
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