CG ASSET MANAGEMENT - Quarterly Update - Q1 2026

CG Asset Management’s Q1 2026 investor update highlights resilient company performance amid heightened macroeconomic uncertainty, with a defensively positioned multi-asset portfolio designed to preserve capital and deliver steady real returns. Over the past 12 months, the Capital Gearing Trust generated a 5.8% NAV total return, with Q1 delivering 1.5%, driven primarily by inflation-linked bonds. The firm maintained a cautious asset allocation, including 32% in managed liquidity reserves, 45% in short-duration inflation-linked bonds, and just 32% in risk assets—near historic lows—reflecting concerns סביב elevated valuations, rising inflation, and geopolitical risks. Strategic portfolio adjustments included reallocating toward corporate credit, reducing risk assets, and exiting gold amid concerns of speculative pricing. CG Asset Management’s growth strategy emphasizes capital preservation, downside protection, and active duration management, which supported outperformance during market volatility and reduced drawdowns versus global equities. Management highlighted persistent inflation risks, exacerbated by energy price shocks and geopolitical tensions, with expectations of higher interest rates, widening fiscal deficits, and continued pressure on financial markets. The firm remains cautious on equities given stretched valuations and muted forward returns, while favoring inflation-protected securities to safeguard margins and real wealth. Active engagement with investment trusts and disciplined capital allocation further underpin shareholder value. Overall, CG Asset Management’s outlook prioritizes defensive positioning, liquidity, and flexibility to capitalize on future opportunities as market conditions evolve.