The principal objective of the Company is to provide shareholders with an attractive income yield and the prospect of income and capital growth through investing in a portfolio of predominantly UK equities.
FCA Share Fraud Warning
Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that turn out to be worthless or non-existent, or to buy shares at an inflated price in return for an upfront payment.
While high profits are promised, if you buy or sell shares in this way you will probably lose your money.
Please click here to access a copy of the new FCA Share Fraud Warning leaflet, published August 2013
The Company has appointed Equiniti, to offer ISA and Investment Account schemes for individuals. Application forms can be requested from Personal Assets Trust Administration Company on 0131 538 6610 or you can apply online. Please click here to be directed to the relevant website at Equiniti.
Manager's Monthly Report
During the period the Trust delivered a Net Asset Value (NAV) total return of +2.4% and share price total return of +2.9%. The FTSE All Share Index returned –0.7% in a month where volatility and investor nerves came to the fore again following the ending of additional Quantitative Easing by the US Federal Reserve Bank.
We took advantage of weaker prices to start a holding in Lancashire Holdings, the non-life insurance vehicle. After a period of softening catastrophe insurance and reinsurance rates, the stock had fallen over 30% from its 2013 peak. This represented an opportunity to buy back into a stock that we had previously sold at a higher price and valuation in April 2011.
Strong capital allocation is a trait we value very highly in the management teams of our investee companies. Lancashire has demonstrated a commitment to such capital discipline. Where Lancashire generates capital from its operations that can not be reinvested at rates of return above c.15% the company will give capital back to shareholders. The result is that the company has so far returned 194% of the capital raised at its initial public offering in late 2005. Most of this has been returned by way of special dividends. Since our purchase of the stock Lancashire has announced another 120¢ distribution representing a yield of 11% on the current share price.
This dividend track record has not come at the expense of capital growth however. During the period since the IPO the Lancashire share price return (ex-dividends) has been close to 100% compared to a rise in the FTSE All Share of just over a quarter of that.