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.
FSA 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 have now 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 month the Trust delivered a Net Asset Value total return of -2.9% and share price total return of -3.0%. This compares with a -3.1% return for the FTSE All Share Index.
After a very strong year in 2013 it is not surprising to see equity markets soften. The rapid multiple expansion experienced by much of the market in the previous 18 months had left many stocks looking expensive. Although we endeavoured to ensure this overvaluation was not mirrored in the portfolio as a whole, we had become concerned about the level of two stocks in particular. The first of these was the conglomerate Associated British Foods. Alongside the grocery, agriculture and sugar businesses ABF also owns the hugely successful Primark franchise. Although the latter still only makes up 1/3 of sales, and just under half of profits, the market has become so enthralled with the growth of this discount clothing business that today it is pricing the group’s shares at over 28x earnings - twice the long-run average of 14x. This extreme valuation led us to sell the last of our shares in this excellent business during the course of January. Valuation also prompted us to sell the Trust’s remaining holding in PayPoint, the payment systems company. When we first purchased the shares almost 4 years ago competition concerns had driven the yield up to over 5% and the shares were priced below 400p. The last of our position was sold at over £10 and on a yield of less than 2.8%.
Despite this month’s modest pull back in the overall market level, there is still some way to go before we see widespread value amongst our universe of quality income stocks.