Personal Assets Trust lags benchmark, warns of market cliff-edge

(Alliance News) - Personal Assets Trust PLC on Wednesday reported a rise in net asset value that ...

Alliance News 9 June, 2021 | 9:09AM
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(Alliance News) - Personal Assets Trust PLC on Wednesday reported a rise in net asset value that fell short of its benchmark's in the 2021 financial year, as it vowed not to take risks in a speculative market.

The FTSE 250-listed investment trust said NAV per share increased by 9.1% in the year that ended April 30, versus a 22% gain for the benchmark FTSE All-Share index. Pretax profit jumped 97% to GBP130.7 million from GBP66.4 million, as the company benefited from the market rally and a strengthening pound.

The trust said it protected shareholders' capital on the downside in the pandemic, but it may be questioned on why it didn't participate more in the upside. In financial 2020, its net asset value increased 5.3% versus a 20% drop in the FTSE All-Share.

Chair Ian Ferguson warned that increasing its risk level now would be like "pressing harder on the accelerator the closer we get to the cliff". Supply-chain bottlenecks and demand for labour suggest the economy is overheating, he added.

In financial 2021, Personal Assets Trust exited long-term holdings in Coca-Cola Co, Colgate-Palmolive Co and British American Tobacco PLC, and increased positions in Nestle SA, Philip Morris International Inc and Unilever PLC.

The trust said it will continue with its policy of paying out GBP1.40 per share in quarterly dividends, as it has done since 2011.

Shares were up 0.1% to 47,378.00 pence in London.

By Ivan Edwards;

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Personal Assets Ord 49,000.00 GBX 0.41
British American Tobacco PLC 2,680.50 GBX -1.56
Unilever PLC 4,151.00 GBX 1.07
Coca-Cola Co 57.03 USD -0.04
Nestle SA 114.80 CHF 0.97
Philip Morris International Inc 100.09 USD -0.20

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