Its stated aim is to protect and increase (in that order) the value of shareholders' funds over the long term.
In 2009 PNL engaged Sebastian Lyon as its adviser. He runs Troy Asset Management which he established in 2000 primarily to manage the affairs of the late Lord Weinstock and from whom he inherited his conservative style of investing and focus on wealth preservation. Troy have now been appointed as manager from this month.
Personal Assets Trust is unique with its commitment to the protection of shareholder wealth combined with its definition of ‘risk’ - PNLs definition is focussed on the ‘risk of losing money’ as opposed to most other trusts where risk is defined as volatility of returns relative to a benchmark index.
|Personal Assets v FTSE A/S Index YTD|
(click to enlarge)
According to the latest quarterly report, equities make up around 44% of the portfolio - largely USA and UK. The manager favours large, well-financed companies which have stable demand and low debt... preferably net cash. UK-listed holdings include Unilever, Diageo and BATS. In the US there are Coca-Cola, Microsoft, Google, Procter & Gamble and Berkshire Hathaway. Gold accounts 10% of the portfolio and the remainder consists of assorted government bonds - mainly US TIPS - so fairly defensive!
I like the look of this trust for its conservative/defensive qualities - and the fact it is different to most other investment trusts. I also like the concept of preserving capital in these uncertain times.