Capital Gearing Trust

talexuser

aroominyork said:

What recent jump?

As said before very recent - last couple of months CTG jumped ahead by 2%, and on a 5 year scale is climbing faster from its lows albeit with more volativity, just wondered if this was discount management rather than any better investment changes.

Hoenir

talexuser said:

aroominyork said:

What recent jump?

As said before very recent - last couple of months CTG jumped ahead by 2%, and on a 5 year scale is climbing faster from its lows albeit with more volativity, just wondered if this was discount management rather than any better investment changes.

When the discount was over 4% what wasn't there to like. Given the nature of the portfolio currently. The fact that CGT were constrained in their own share buybacks. Created a window of opportunity. Also with much of the portfolio being valued at mark to market prices. There was a guaranteed uplift as the redemption date of the Government bonds approaches. 

aroominyork

Can you please explain how the redemption date of gilts affects NAV? A gilt maturing tomorrow will be valued at £99.99. Tomorrow it will be £100 in the bank. Is this something to do with linkers being valued differently?

talexuser

Hoenir said:

When the discount was over 4% what wasn't there to like. 

Perhaps you were already invested at a higher price and PNL was doing better job of preserving capital, and there were several articles about CGT underperformance and poor investment decisions?

talexuser

Special dividend of 11p announced for the 23 Feb 

Hoenir

talexuser said:

Hoenir said:

When the discount was over 4% what wasn't there to like. 

Perhaps you were already invested at a higher price and PNL was doing better job of preserving capital, and there were several articles about CGT underperformance and poor investment decisions?

No. I was switching funds out of Gilt ETF's at the time.  In the main have used CGT to park money. Rather than hold a sizable portfolio position more permanently. Low volatility of course comes at a price. 

aroominyork

Hoenir said:

talexuser said:

Hoenir said:

When the discount was over 4% what wasn't there to like. 

Perhaps you were already invested at a higher price and PNL was doing better job of preserving capital, and there were several articles about CGT underperformance and poor investment decisions?

No. I was switching funds out of Gilt ETF's at the time.  In the main have used CGT to park money. Rather than hold a sizable portfolio position more permanently. Low volatility of course comes at a price. 

Well, yes, but low volatility should protect the downside. CGT has lost its way a bit recently.

masonic

aroominyork said:

Hoenir said:

talexuser said:

Hoenir said:

When the discount was over 4% what wasn't there to like. 

Perhaps you were already invested at a higher price and PNL was doing better job of preserving capital, and there were several articles about CGT underperformance and poor investment decisions?

No. I was switching funds out of Gilt ETF's at the time.  In the main have used CGT to park money. Rather than hold a sizable portfolio position more permanently. Low volatility of course comes at a price. 

Well, yes, but low volatility should protect the downside. CGT has lost its way a bit recently.

There was a similar gentle decline of ~15% over about 12 months in 2013-2014. Things like that will happen from time to time. Low volatility protects against rapid losses.

Hoenir

aroominyork said:

Hoenir said:

talexuser said:

Hoenir said:

When the discount was over 4% what wasn't there to like. 

Perhaps you were already invested at a higher price and PNL was doing better job of preserving capital, and there were several articles about CGT underperformance and poor investment decisions?

No. I was switching funds out of Gilt ETF's at the time.  In the main have used CGT to park money. Rather than hold a sizable portfolio position more permanently. Low volatility of course comes at a price. 

Well, yes, but low volatility should protect the downside. CGT has lost its way a bit recently.

 Unfortunately all investments carry varying degrees of risk. Unsure what protection you are expecting to receive. As equity markets can be brutal at times. If a 10%-15% fall is uncomfortable. Then you've much to experience yet as an investor. 

aroominyork

Hoenir said:

aroominyork said:

Hoenir said:

talexuser said:

Hoenir said:

When the discount was over 4% what wasn't there to like. 

Perhaps you were already invested at a higher price and PNL was doing better job of preserving capital, and there were several articles about CGT underperformance and poor investment decisions?

No. I was switching funds out of Gilt ETF's at the time.  In the main have used CGT to park money. Rather than hold a sizable portfolio position more permanently. Low volatility of course comes at a price. 

Well, yes, but low volatility should protect the downside. CGT has lost its way a bit recently.

 Unfortunately all investments carry varying degrees of risk. Unsure what protection you are expecting to receive. As equity markets can be brutal at times. If a 10%-15% fall is uncomfortable. Then you've much to experience yet as an investor. 

I think a very large number of people on this forum have not experienced serious downturns and turbulence, and may be investing at a higher level of risk than they should. Perhaps the end of ultra-low interest rates (the end, for now at least, of 'return-free risk') will encourage them to reconfigure their portfolios.