Personal Assets Trust (PNL) has released its annual results for the year ended 30 April 2025, reporting a NAV total return of 7.5%, which it says is in line with the All-Share Index. Shareholders saw a total return of 7.4%, with the share price ending the year at 511p. Despite elevated volatility across global markets, PNL’s discount control mechanism ensured the share price continued to trade close to NAV.
It should be remembered that PNL’s investment objective is to protect and increase, in that order, the real value of shareholders’ funds over the long term. The portfolio’s structure diverges materially from equity benchmarks and short-term relative performance is not a priority for the managers. However, PNL’s long-term track record continues to demonstrate the value of this capital-preservation-first approach. Since becoming self-managed in 1990, the NAV total return has compounded at 8.6% annually, outpacing both inflation and the All-Share.
High liquidity and reduced equity exposure
In response to ongoing macroeconomic uncertainty, the trust maintained a cautious stance. Liquidity remained high at 63.3%, including 21.8% in UK Gilts, cash and net current assets, and 41.5% in non-equity risk assets, such as US TIPS, Treasuries and gold. This compares to 72.4% a year earlier. Equity exposure was kept modest, though several high-quality new holdings were added, including Canadian National Railway, Chubb, VeriSign, LVMH and L’Oréal.
Gold bullion continues to play a critical diversification role, though its weighting was trimmed slightly into price strength. The managers also began reducing the portfolio’s US dollar exposure in favour of the Japanese yen, reflecting concerns over the dollar’s safe haven reliability.
Performance drivers
The portfolio benefited from strong contributions from Visa, VeriSign, Unilever and American Express, while spirits producers Diageo and Pernod Ricard weighed on returns amid post-pandemic demand weakness. Holdings in Microsoft and other high-quality US names remain core parts of the equity portfolio.
A defensive allocation and short bond duration helped shield the trust from sharp April market drawdowns triggered by US trade tensions, with PNL’s NAV falling just 1.9% during that period versus declines of nearly 10% in the broader equity indices.
Discount control policy in action
PNL continues to operate a strict discount control mechanism, which has kept the share price aligned with NAV. During the year, the company repurchased 26.1m shares into treasury and issued 600,000 shares. Since 1999, when buybacks became permissible, PNL has traded consistently close to NAV, avoiding the sharp discount widening seen elsewhere in the sector.
Dividend and board changes
A total dividend of 7.20p per share has been declared for the year – comprising a regular dividend of 5.60p and a special dividend of 1.60p, reflecting higher income from inflation-linked bonds. This will be paid in July alongside the first interim dividend for the new financial year.
Jean Sharp will step down from the board following the AGM, with Sharon Brown appointed as her successor and chair of the audit and risk committee. The board also completed an independent performance review during the year.
Manager changes
Charlotte Yonge was formally appointed co-manager alongside Sebastian Lyon from 1 May 2025. PNL says that the change reflects a long-standing partnership in managing the portfolio and reinforces Troy’s commitment to long-term succession planning.
[QD comment MR: PNL continues to do exactly what it says on the tin – deliver steady, inflation-beating returns while shielding investors from the extremes of market volatility. In a year marked by geopolitical upheaval and erratic global policy, the trust’s cautious stance, gold weighting, and inflation-linked assets provided stability. The discount control mechanism also continues to function effectively, offering shareholders liquidity at fair value. For those seeking capital protection with meaningful long-term growth, PNL remains a compelling choice in the flexible investment sector.]
