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
Share fraud includes scams where investors are called out of the blue and offered shares that often turn out to be worthless or non-existent, or an inflated price for shares they own. These calls come from fraudsters operating in ‘boiler rooms’ that are mostly based abroad.
Please click here to access a copy of the new FSA Share Fraud Warning leaflet, published February 2012
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 +2.2% and share price total return of +2.1%. This compares with a +0.6% return for the FTSE All Share Index.
Equity markets were temporarily more subdued during April. US economic data, and the first quarter GDP figure in particular , disappointed compared to forecasts. The subsequent change in expectations put paid to nascent talk that the Federal Reserve was preparing to slow the rate of monetary easing. Any firm indication of such a change in policy would have ramifications across almost all asset classes and geographies and would represent a material change in the macro-economic environment in which investors are operating.
Specifically within the Trust’s portfolio the utility holdings would be among the stocks most affected by such a change. Record low interest rates have significantly reduced the cost of the capital required by these companies to fund the development of regulated assets as well as easing the cost of refinancing existing debt. With this sensitivity to interest rates in mind it makes sense that as the volume of hawkish commentary subsided the utility sector rallied. Utility stocks made a significant contribution to the Trust’s total return during the month and on average our investments within the sector delivered a total return of +6.4%.
It is inevitable that eventually interest rates will rise and that the cost of borrowing will revert to more normal levels. We watch carefully for warning signs that a sustained reversal may be imminent and would materially change the allocation to utilities in reflecting any such signal.