Investment trust Personal Assets (LON:PNL) has revealed it shifted around 10% of its portfolio into short-dated JGBs (Japanese government bonds) last year. The move, a first for the company, adds exposure to the Yen, which is ‘the cheapest it has been for four decades’ according to the managers.
‘Winning by not losing’
The trust, which aims to protect and grow shareholders’ capital over time, says holding Yen will provide diversification. It should also provide a buffer if the US dollar weakens or stock markets become more risk averse.
Elsewhere, the trust reduced its gold position from 14% to 10% in January when the price topped $5,100. The managers remain bullish on gold but were happy to book some gains given the rapid price appreciation.
In terms of equities, the trust sold out of American Express (NYSE:AXP), Moody’s (NYSE:MCO) and LVMH (EPS:MC). New additions to the portfolio included LSE Group (LON:LSEG), Alcon (NYSE:ALC) and Hubbell (NYSE:HUBB).
The decision to buy LSE Group proved opportune as the shares have rallied strongly since February as investors overcame their fears it was an AI ‘victim’. Meanwhile, Alcon is the world’s largest eye-care company and Hubbell supplies key components to the electric utility sector.
Overall, the managers describe the year to 30 April 2026 as ‘uninspiring’ for the company, while markets were strong. The trust’s 6.3% NAV total return beat UK inflation of 2.8% but lagged the FTSE All-Share total return of 25.2%.
As the managers are keen to stress, the purpose of Personal Assets is primarily to protect investors’ capital, then to grow it. Since 1990, the NAV total return has grown at 8.1% per year and the share price total return at 9.6% per year. Over that time inflation has averaged 2.8% and the FTSE All-Share has delievered an 8.6% total return.
The decision to invest in short-dated Japanese government bonds is an interesting one and a first for the company. As of 30 April, roughly 55% of the portfolio was invested in ‘liquid’ assets such as UK Gilts and JGBs.
Another 24% is invested in non-equity risk assets, split 15% in US TIPS (Treasury inflation-protected securities) and 9% in gold. Equities, as the most risky asset class, therefore only represent around 20% of the portfolio.
Moreover, the choice of equities – Alcon being a world leader in healthcare and Hubbell a leader in kit for electric utilities – speaks volumes. No flashy chipmakers or AI stocks: these are dull but worthy compounders which will prove their mettle when markets turn risk-off.
Read the press release here:
https://www.patplc.co.uk/trust-information/
