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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 consumer price inflation averaged 5% a year over the same period, adding up to 27.5%. The figures show the trust did not keep pace with inflation over that period; they do not establish whether it will recover or how it will perform in future.
Personal Assets Trust gained 20.8% on a net asset value basis over the five years to the end of August, according to MoneyWeek, trailing the 27.5% cumulative rise in UK CPI reported for the period. The comparison has renewed scrutiny of whether wealth-preservation trusts have protected investors’ purchasing power, but it does not indicate how the trust will perform next.
MoneyWeek reports that UK inflation, measured by the consumer price index (CPI), averaged 5% a year across the five-year period. It gives the cumulative increase as 27.5%. Personal Assets Trust’s 20.8% gain is measured on net asset value (NAV), which reflects the value of the trust’s underlying assets per share rather than its share-market price.
The report also compares two other trusts associated with wealth preservation. Ruffer returned 20% over the period, equivalent to 3.7% a year, while Capital Gearing returned 11.5%, or 2.2% a year, according to MoneyWeek. Their reported gains also fell short of the 27.5% inflation figure.
These are historical performance figures, not forecasts or guarantees. The source provides the end point as the end of August but does not specify the year in the supplied material. It also does not provide a breakdown of returns by asset, fees, dividends, or the trusts’ share prices relative to NAV.
Inflation Has Eroded Purchasing Power
The gap matters because wealth-preservation trusts are often used by investors seeking to protect capital across difficult market conditions. When portfolio gains lag price rises, an investor’s money may buy less than it did at the start of the period, even if the investment has increased in nominal value.
However, the figures should be read as a specific five-year comparison, not as proof that the trusts failed in every respect or will continue to lag. Returns over a chosen period can be affected by market conditions and the assets held. MoneyWeek’s numbers show the reported NAV gains did not match the stated cumulative CPI increase; they do not by themselves reveal investors’ individual outcomes, which can also depend on purchase timing, charges, income and share-price movements.
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Three Trusts, One Inflation Comparison
The report groups Personal Assets Trust, Capital Gearing and Ruffer as trusts used by investors focused on preserving wealth. It compares their returns over the same five-year span with UK CPI inflation, rather than presenting a wider assessment of their strategies or a forecast.
Personal Assets Trust’s return is reported as a NAV gain to the end of August. The source gives annualised figures for Ruffer and Capital Gearing as well as their total gains, but it does not state comparable annualised figures for Personal Assets in the supplied text beyond a reported 3.85% a year. Those annualised figures are not the same measure as the cumulative inflation figure, so the clearest comparison is between the cumulative returns and the stated 27.5% CPI increase.
““With Personal Assets Trust (LSE: PNL), Capital Gearing (LSE: CGT) and Ruffer (LSE: RICA) all losing value after inflation, many investors who turned to wealth preservation trusts over the past five years will have been disappointed.””
— MoneyWeek
Recovery Depends on Future Returns
The figures do not show whether Personal Assets Trust has since made up ground against inflation, because the supplied report gives no later performance data. The year attached to the end-of-August figures is not specified in the source material provided here.
It is also unclear from the supplied information what drove the gap, how the trust’s portfolio has changed, or what its managers expect. No forecasts, recovery timetable or detailed performance attribution are provided. The comparison therefore establishes a historical shortfall against the stated CPI measure, but not its cause or the trust’s future prospects.
To judge whether the trust is recovering in real terms, readers would need updated NAV returns and inflation data covering the same period. Further reporting could also clarify the precise end date, the role of income and charges, and which holdings or market conditions contributed to returns.
Until comparable newer figures or further detail are available, the reported five-year results remain a historical record rather than a signal of what comes next. The central question—whether Personal Assets Trust can outpace inflation in a future period—remains unanswered by the figures cited.
Key Questions
How much did Personal Assets Trust gain over the period?
MoneyWeek reports a 20.8% NAV gain over the five years to the end of August. The supplied source does not specify the year for that end date.
How does that compare with inflation?
The report says UK CPI averaged 5% a year and rose by 27.5% cumulatively over the same five-year period. On those reported figures, Personal Assets Trust’s NAV gain was lower.
Did the other trusts also trail inflation?
Yes, according to the report. It lists a 20% gain for Ruffer and an 11.5% gain for Capital Gearing, both below the stated 27.5% cumulative CPI rise.
Does this mean Personal Assets Trust will keep losing ground?
No. The figures describe past performance over a defined period; they do not predict future returns or establish whether the trust will recover its position relative to inflation.
Source: rss
