Capital Gearing Asset Management has taken the next step in its succession planning and promoted Chris Clothier to co-chief investment officer alongside the city’s longest-serving portfolio manager and the firm’s founder Peter Spiller.

Spiller, who founded CGAM in 2000, will continue to chair the asset allocation committee while Clothier focuses on the investment process, the announcement on Monday said.

Hassan Raza, who came to CGAM from HSBC in 2021, and Emma Moriarty, who joined from the Bank of England last year, have both been promoted to investment manager.

In addition, Clemmie Vaughan will succeed Christopher Smith as chair of the CGAM board in October 2023. She joined in October 2022 and was previously the chief executive officer of Ruffer.

It is a sign that the 75-year-old Spiller could be close to winding down an exceptional career, which included shielding the wealth preservation trust Capital Gearing (CGT ) from global crashes in 2000-2003 and 2008.

However, the £1.1bn trust’s most recent annual results were the worst since he took over management in 1982, with its net asset value (NAV) declining 3.6% in the year to end-March, after Spiller, Clothier and chief executive Alastair Laing banked on property delivering returns in a rising rate environment over government bonds. ‘We got this wrong,’ they said at the time.

While it is only the second time CGT has suffered a negative return, it did not disappoint as much as wealth preservation peer Ruffer Investment Company (RICA ), which saw its NAV fall by more than 7%. Troy’s Personal Assets (PNL ) delivered a 1% gain.

Year to date, shares in CGT have fallen 7.5% to trade at a 2.1% discount to NAV. Over the last 10 years, the trust has delivered a NAV total return of 60% versus the FTSE All Share’s 68%, according to Morningstar. Shareholders received a 42% return.

According to the June factsheet, the portfolio has a 43% weighting to index-linked government bonds, which includes both the US and the UK, 15% in conventional government bonds, 12% in corporate debt and 27% in funds and equities. 

‘Chris has made a strong contribution at the heart of the investment team for many years and his promotion is well deserved,’ Laing said. ‘Emma and Hassan joined the team more recently but have really impressed with their contributions. Collectively these changes are the next step in our gradual succession planning and I am delighted with the way the investment team has developed.

‘For over 14 years Christopher has helped guide CGAM through significant growth and change. His contribution and counsel will be sorely missed. However, we are delighted that Clemmie will take on the role of chair. Her broad industry experience and strategic expertise make her the perfect candidate to oversee the next chapter in our development.’

Ten-year performance  

Source: Morningstar