- Personal Assets Trust performed relatively well last year because it wasn't exposed to more cyclical parts of the market
- Its managers pay particular attention to the downside risks of investments
- Its holdings include tech stocks which make consistent steady returns
Last year equity markets experienced extreme volatility, putting wealth preservation funds, which aim to limit volatility, to the test. One of those that proved its worth was Personal Assets Trust (PNL). This multi-asset fund made net asset value and share price total returns of 8.28 per cent and 7.93 per cent, respectively, at the same time as the FTSE All-Share index fell 9.82 per cent and FTSE World index delivered a 12.74 per cent total return.
“We weren’t exposed to the more cyclical parts of the market,” explains Sebastian Lyon, manager of Personal Assets Trust. “We tend to eschew businesses that are highly cyclical and reliant on debt, and those are traditionally the ones that fall most when markets fall.”