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 period the Trust delivered a Net Asset Value total return of +1.2% and share price total return of +2.8% (a small discount turned into a small premium). This compares with a +1.4% return for the FTSE All-Share Index.
Mid-way through the month Compass Group (the UK listed food and support services provider) announced a 56p per share special dividend. This distribution alone equates to a yield of 5.6% on the current share price. Such dividends, when paid out of accumulated retained earnings rather than the proceeds of an asset disposal, are a welcome enhancement to the dividend cover of the Trust.
In good periods companies aiming to deliver a progressive yet sustainable ordinary dividend policy can accumulate cash even after the payment of an ordinary dividend. Boards must then decide how to allocate this capital. They can invest in additional projects, buy back their own shares, make acquisitions or hold the cash on the balance sheet. They can also distribute it to shareholders as a special dividend. The course of action chosen should be a function of the returns available on each of these options. With asset prices currently elevated and growth in many areas still elusive, value enhancing acquisitions and projects that will deliver returns above the cost of capital are scarce. Under these circumstances a return of capital to investors via a special dividend demonstrates that the management are being disciplined in the allocation of capital. This is a trait we believe is fundamental to the generation of attractive long term returns and one we prize greatly in our investee companies.