Capital Gearing Trust
in Savings & investments
28 replies 1.5K views
Quick question - I bought a fair amount of cgt between May and August last year - every single purchase is in the red, with an overall return of minus 7% or so. Other investments, such as VWRP, are positive. Does this mean that the wealth preservation aspect isn't working, or is it more likely that I'm just being impatient?
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As of today you can lock in just over 4% p/annum risk free.
If during such a bull run CGT returned 4% is it likely to return more during the choppier waters we have moving forward? 3.54% last 3 years and -2.34% last year suggests perhaps not.
Given we are investing with an eye on the future, I think it's reasonable to explore whether the likely returns from CGT in future make the risk worthwhile compared to what you can get risk free.....
Longer term historic performance is irrelevant to an extent, as CGT had a complete change of mandate. It's not going to replicate the returns it offered in the past as it employs a very different investment strategy these days.
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