Umbrella cover
Personal Assets performs in line with FTSE All-Share / Image source: Adobe
  • Full-year return of 7.5%
  • Equity exposure increased
  • Gold exposure reduced

Capital preservation trust Personal Assets (PNL) delivered a total return in NAV (net asset value) per share of 7.5% in the year to 30 April, in line with the FTSE All-Share, despite maintaining a low equity exposure and high liquidity.

The shares nudged up 0.5% to 515p and are ahead by around 6% over the last year compared with a 7.5% gain for the FTSE All-Share index.

Since Troy Asset Management took over in 1990, NAV total return has grown at an annual compound rate of 8.6% per year compared with 8.4% for the benchmark, with considerably lower annual volatility.

Co-managers Sebastian Lyon and Charlotte Yonge commented: ‘Our aim is to protect and grow shareholders' capital over the long term. Our desire is to generate equity-like returns (high single-digits) with bond-like, or considerably lower, volatility.’

The trust ended the period trading at a narrow 0.8% discount to NAV, reflecting the company buying back shares under its discount control mechanism.

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MOVERS AND SHAKERS

The biggest positive stock contributors to performance included Visa (V:NYSE), VeriSign (VRSN:NASDAQ), American Express (AXP:NYSE) and Unilever (ULVR).

Conversely, the biggest detractors were drinks groups Diageo (DGE) and Pernod Ricard (RI:EPA), which suffered from weaker demand and pricing. The manager believes demand will ultimately recover over time and the shares will get support from valuations which are low by historic standards.

New holdings include Canadian National Railway (CNR:TSE), which the managers have followed for five years. Attractions include its natural monopoly which allows the company to generate high, sustainable profit margins.

The world’s largest property and casualty insurer Chubb (CB:NYSE) was also added to the portfolio. The managers believe there is an opportunity to ‘materially’ grow investment income from higher bond yields.

Tariff-induced share price falls allowed the trust to add to existing positions as well as two new European companies, LVMH (MC:EPA) and cosmetics giant L’Oreal (OR:EPA).

While gold remains a ‘cornerstone’ of the portfolio, the managers reduced its weighing to around 11% following price strength. Gold-related investments were the biggest contributor to performance, adding 3.8%.

Overall, the proportion invested in equities increased to 36.6% from 27.5% in April 2024. This was funded by a reduction in US inflation-protected bonds, UK index-linked bonds and US Treasuries.

The managers said they would continue to add ‘selectively’ to equities in the US, Europe and the UK during market selloffs, as they did in April, when improved valuations offer better prospective returns.

LEARN MORE ABOUT PERSONAL ASSETS

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Issue Date: 18 Jun 2025