Personal Assets Trust plc
You will note that the ‘Liquidity’ figure shown for Personal Assets has fallen from 44.5% at 7 March to 18.5% at 14 March. This reflects not a change in the portfolio but a redefinition of the term ‘liquidity’.
‘Liquidity’ or ‘effective liquidity’ are terms that have been used by the Board, for convenience, for many years to describe the part of the portfolio available for investment into equities. Over that time, this has drifted from cash and near cash to include other assets, including Treasury Bills in the UK and Singapore, US Treasury Inflation Protected Securities (“TIPS”), UK Index-Linked Gilts and gold bullion. While we have never wished or intended to give the impression that there was no risk in the ‘liquidity’, movements in index-linked securities and gold over recent months have demonstrated that there was considerable, if temporary, risk in these assets and we have been made aware that some shareholders were confused as to what the ‘liquidity’ or ‘effective liquidity’ figure meant, assuming that the percentages shown were accounted for entirely by cash and near cash.
In certain of our reports, such as Annual Reports, Interim Reports and Interim Management Statements, we have until recently used the term ‘effective liquidity’ to include cash, Treasury Bills in the UK and Singapore, US Treasury Inflation Protected Securities (“TIPS”), UK Index-Linked Gilts and gold bullion. In these reports each of those asset classes will from now on be shown separately, rather than being aggregated as ‘effective liquidity’.
In the figures shown at the top right hand corner of this page and in the table of data accessed by clicking the Asset Values box on the left hand side of the page, the term ‘liquidity’ formerly included not only cash and UK Treasury Bills but also Singapore Treasury Bills, US Treasury Inflation Protected Securities (“TIPS”) and UK Index-Linked Gilts (although not, as in the reports earlier referred to, gold bullion). We have now redefined the term ‘liquidity’ as used here on the website to exclude index-linked securities and Singapore Treasury Bills, both of which are classes of risk assets, and to include only cash and UK Treasury Bills. On the previous basis, our liquidity (which is now shown as 18.5%) would have been shown as 45.1%.
FCA Share Fraud Warning
BEWARE OF SHARE FRAUD
Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that turn out to be worthless or non-existent, or to buy shares at an inflated price in return for an upfront payment.
While high profits are promised, if you buy or sell shares in this way you will probably lose your money.
Please click here to access a copy of the new FCA Share Fraud Warning leaflet, published August 2013