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Personal Assets Trust’s net asset value rose 20.8% over the five years to the end of August, while UK CPI inflation averaged 5% a year and totalled 27.5% over the period, according to MoneyWeek. The figures show a loss of purchasing power over that measurement window; they do not establish whether the trust will recover or how it will perform next.
Personal Assets Trust’s net asset value (NAV) rose 20.8% over the five years to the end of August, below the 27.5% cumulative rise in UK CPI inflation over the period, according to MoneyWeek. The comparison means the trust’s reported growth did not keep pace with inflation during that window, a setback for investors who chose it for wealth preservation; it does not, by itself, show what returns will be in future.
MoneyWeek says UK consumer price inflation averaged 5% a year over the five-year period, amounting to a cumulative increase of 27.5%. Personal Assets Trust, listed in London as PNL, recorded NAV growth of 20.8% through the end of August, equivalent to an annualised rate of 3.85% a year, according to the report. Comparing the total figures on the same stated period, the trust’s NAV growth was below the rise in consumer prices.
The report places that result alongside two other wealth-preservation trusts. Ruffer, ticker RICA, gained 20% in NAV, or 3.7% a year, while Capital Gearing, ticker CGT, returned 11.5%, or 2.2% a year. MoneyWeek says all three lost value after inflation over the five years. These are historical performance figures, not forecasts or guarantees of future results.
The reported comparison concerns NAV performance, rather than a full account of every investor’s outcome. The source excerpt does not give a share-price return, dividend treatment, charges, or the exact calendar dates of the five-year window. Those details can affect how an individual investor’s return compares with the headline NAV figure.
Inflation Has Eroded Real Returns
The comparison matters because wealth-preservation strategies are commonly judged not only by whether an investment’s nominal value rises, but also by whether it retains purchasing power. Over the reported period, Personal Assets Trust’s NAV growth trailed CPI. An investor looking only at the positive 20.8% increase could miss that consumer prices rose by more across the same stated span.
The shortfall is relevant to investors who selected the trust, or similar funds, expecting a measure of protection against inflation. However, five-year results describe a particular stretch of markets and price rises. They do not prove that the trust has failed in every market environment, nor that it will necessarily catch up. Whether the outcome is acceptable depends on an investor’s objectives, time horizon, income needs and the risks taken to pursue returns.
The comparison also highlights a tension for defensive funds: assets intended to limit losses may not rise quickly enough to preserve real value when inflation is elevated. The figures supplied do not identify which holdings, decisions or market conditions account for the trust’s performance, so they cannot establish the cause of the gap.
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Five-Year Trust Performance Compared
MoneyWeek’s report focuses on three London-listed investment trusts often associated with wealth preservation: Personal Assets Trust, Capital Gearing and Ruffer. It compares each trust’s reported NAV performance over five years with UK inflation measured by the consumer price index. The source gives a cumulative inflation figure of 27.5% and annualised trust returns, providing a shared broad period for comparison.
The reported figures are 20.8% for Personal Assets, 20% for Ruffer and 11.5% for Capital Gearing. Their corresponding annualised rates are 3.85%, 3.7% and 2.2%. MoneyWeek characterises all three as having lost value after inflation. This is a comparison of past returns against a consumer-price measure, not a ranking of all investment options or a statement about what each trust is designed to do in every circumstance.
The excerpt does not provide further detail on portfolio composition, benchmarks, distributions or the trusts’ most recent shorter-term performance. It also does not state the exact year of the end-August measurement date. The available evidence therefore supports a conclusion about the reported five-year comparison, rather than a broader judgement about long-term performance or management.
“UK inflation – as defined by the consumer price index (CPI) – has averaged 5% per year, or 27.5%.”
— MoneyWeek
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The Recovery Outlook Is Unresolved
Future performance cannot be determined from the historical figures in the report. The supplied source material gives no forecast, recent portfolio update, management explanation for the returns, or evidence that the trusts will recover the ground lost to inflation. It also does not specify the calendar year for the end-August cutoff or provide the precise start date.
It is also unclear from the excerpt whether the stated NAV returns include reinvested distributions, and how they compare with the trusts’ share-price performance after any premiums or discounts to NAV. No detail is given on charges or on the holdings responsible for returns. These omissions limit conclusions about an individual shareholder’s total return and about the reasons for the inflation-adjusted shortfall.
Accordingly, “can it recover?” remains an open question, not a confirmed prediction. A recovery would depend on future investment results and inflation, neither of which is established by the figures provided.
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The next useful evidence would be new NAV and share-price performance figures for Personal Assets Trust, alongside updated inflation data covering the same dates. Further reporting or trust disclosures could also clarify portfolio changes, distributions and the managers’ explanation of performance. The source material does not identify a specific forthcoming report or date.
Until comparable updated figures are available, the five-year figures should be read as a record of what happened through the end of August, not as a signal that losses relative to inflation will continue or reverse. Investors evaluating the trust would need to distinguish NAV growth from their own total return and consider their individual circumstances; the reported data alone cannot settle whether it fits their needs.
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Key Questions
Did Personal Assets Trust beat inflation over the reported five years?
No. MoneyWeek reports 20.8% NAV growth for the trust to the end of August, compared with a 27.5% cumulative rise in UK CPI over five years.
How did the other trusts perform?
MoneyWeek reports that Ruffer gained 20% in NAV and Capital Gearing returned 11.5% over the period. It says both, like Personal Assets Trust, lost value after inflation.
Does the five-year shortfall mean the trust will not recover?
No. The figures describe past performance and do not establish future returns. The source provides no forecast or confirmed recovery outlook.
Are these figures the same as an investor’s return?
Not necessarily. The report gives NAV performance; its excerpt does not specify share-price returns, distribution treatment or charges, which may affect an investor’s actual outcome.
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