Personal Assets Trust lifts NAV but remains cautious on future

Investment adviser Sebastian Lyon said “all is not well with the financial world” of slashed interest rates, fallen sterling and Japanese and German sovereign 10-year bond yields turning negative.

He said that with the Brexit vote and Donald Trump’s election victory in the US, and upcoming referendums and elections in Europe, it sees that “political outcomes are likely to offer investors asymmetrical risks, skewed to the downside,” so it has taken a defensive position as portfolio activity was minimal during the period and liquidity remained high.

For the six months ended 31 October, the net asset value per share rose by 7.5% to £394.85, compared to the same period last year.

The share price rose by £24.50 to £397 over the period, a 0.5% premium to the net asset value at the end of October.

During the six months the FTSE 250 company said its shares continued to trade close to net asset value.

It continued to maintain a high level of liquidity at 53.2%, which slipped from 56% last year.

As shareholders funds climbed 12.6% to £721.7m, earnings per share fell to £3.13 from £4.78 and its dividend per share declined to £2.80 from £5.60.

Meanwhile the fund re-issued 7,890 shares from Treasury and issued 79,873 new shares, which added £35m of new capital, at a small premium. It also brought back 4,861 shares costing £1.8m.

An interim dividend of £1.40 per share will be paid on 12 January and another interim dividend of £1.40 per share will be paid in April 2017, with a total of £5.60 for the year.