Over the six months to 31 October 2016 Personal Assets Trust’s net asset value per share rose by 7.5% to GBP394.85. Its share price rose by GBP24.50 to GBP397.00 over the same period, being a premium of 0.5% to the Company’s NAV at that date. They are paying quarterly dividends of 140p per share. At the end of the period over half the portfolio was invested in liquid assets including US Treasury Inflation Protected securities (21.1%), UK Index-linked gilts (4.4%), UK treasury Bills (16.2%) and Gold bullion (11.5%).
The fund expanded by £35m as they issued new shares to meet demand.
Portfolio activity was minimal during the half year and liquidity remains at very high levels. They increased holdings in US Treasury Inflation Protected Securities (“TIPS”), American Express, Berkshire Hathaway and AG Barr. Barr has experienced (weather-related) weaker trading conditions and has suffered from the announcement of the introduction of a tax on soft drinks in the UK. They believe these problems will prove transitory and are reflected in the company’s valuation following recent share price falls. They also modestly reduced the holding in British American Tobacco after very strong performance following the Brexit referendum as investors anticipated the benefits of currency translation to the company’s profits.
The Board has negotiated a change to the investment advisory fee arrangement with Troy Asset Management Limited (“Troy”). The current fee, which is based on the Company’s shareholders’ funds, is: 0.5 per cent. on the first GBP100 million; 0.625 per cent. on the next GBP50 million; 0.75 per cent. between GBP150 million and GBP500 million; 0.625 per cent. between GBP500 million and GBP750 million, 0.55 per cent. between GBP750 million and GBP1 billion, and 0.5 per cent. thereafter.
Under the new fee arrangement the various bands up to GBP750 million will be consolidated into a single rate of 0.65 per cent. This represents a small decrease to the current fee paid. The existing arrangements above GBP750 million will remain in place. The new arrangements became effective from 1 November 2016.
PNL : Personal Assets keeps portfolio liquid