PERSONAL

ASSETS

TRUST PLC

ANNUAL REPORT

FOR THE

YEAR ENDED 30 APRIL 2022

ABOUT PERSONAL ASSETS TRUST PLC

Personal Assets Trust is what its name implies. It is an investment trust run for private investors, who may often

have committed to it a substantial proportion of their personal wealth. Its investment policy is to protect and

increase (in that order) the value of shareholders’ funds per share over the long term. It differs from other

investment trusts in that its activities are defined not by any particular portfolio specialisation or investment

method but by a desire to satisfy the personal requirements of those who invest in it. This is reflected in the

Board’s statement that ‘our specialisation will be our shareholders’. For further details of the Investment Policy

please see the Strategic Report on pages 6 to 11.

The Company’s policy is to ensure that its shares always trade at close to net asset value through a combination of

share buybacks at a small discount to net asset value and the issue of new or Treasury shares at a small premium to

net asset value where demand exceeds supply. This discount and premium control policy is enshrined in the Articles

of Association of the Company.

SHARE PRICE PERFORMANCE VERSUS RPI SINCE 30 APRIL 1990

Share Price

UK RPI

Source: Refinitiv Datastream

1990 1995 2000 2005 2010 2015 2020

100

200

300

400

500

600

700

800

900

1,000

100

200

300

400

500

600

700

800

900

1,000

1,200

,100

1,200

,100

Page 1

2022 2021 2019 2017 2012 1990

(1)

Market Cap (£ million) 1,855.1 1,522.7 976.0 794.6 470.4 5.9

Shareholders’ Funds (£ million) 1,814.4 1,503.9 968.6 781.5 463.5 8.5

Shares Outstanding 3,688,069 3,232,929 2,392,275 1,960,127 1,380,659 149,313

Allocation of Portfolio

Equities 37.8% 45.7% 36.0% 45.7% 50.0% 88.2%

US TIPS 35.7% 32.6% 27.8% 19.3% 22.1% –

US Treasuries ––3.8% –––

UK Index-Linked Gilts ––3.3% 4.1% ––

UK T-Bills 15.7% 8.1% 18.7% 14.7% 6.3% –

Overseas Treasuries ––––6.7% –

Gold Bullion 9.5% 8.9% 8.1% 10.0% 12.4% –

Property 0.1% 0.1% ––––

UK cash 2.6% 4.7% 2.4% 4.5% 1.2% 5.7%

Overseas cash 0.0% 0.0% 0.0% –––

Net current (liabilities)/assets (1.4%) (0.1%) (0.1%) 1.7% 1.3% 6.1%

Share Price £503.00 £471.00 £408.00 £405.40 £340.70 £39.50

NAV per Share

(2)

£491.95 £465.19 £404.88 £398.70 £335.69 £56.67

FTSE All-Share Index 4,185.12 3,983.85 4,067.98 3,962.49 2,984.67 1,043.16

Premium/(discount) to NAV

(2)

2.2% 1.2% 0.8% 1.7% 1.5% (30.3%)

Revenue return per share

(2)

£8.36 £4.53 £4.97 £6.20 £7.23 £1.09

Dividend per share £7.00

(3)

£5.60 £5.60 £5.60 £5.55 £1.00

Ongoing charges

(2)

0.67% 0.73% 0.80% 0.86% 0.95% 2.00%

(1)

The Company became self-managed in 1990.

(

Alternative Performance Measure. Please see pages 49 and 50 for a glossary of terms and definitions.

(3)

A special dividend of £1.40 per Ordinary share will be paid in relation to the year ended 30 April 2022.

Percentage Changes

Since

1 Year 3 Years 5 Years 10 Years 1990

(1)

Share Price 6.8 23.3 35.0 47.6 1,173.4

NAV per Share

(2)

5.8 21.5 34.0 46.5 768.1

FTSE All-Share Index 5.1 2.9 22.3 40.2 301.2

Share Price relative to FTSE All-Share 1.6 19.8 10.4 5.3 217.4

Share Price Total Return

(2)

8.0 28.0 32.4 70.6 2,281.8

NAV per Share Total Return

(2)

7.1 26.3 31.9 69.7 1,414.2

FTSE All-Share Total Return 8.7 14.1 26.6 100.8 1,157.3

Share Price Total Return relative to

FTSE All-Share Total Return (0.6) 12.2 4.6 (15.0) 89.4

Inflation (RPI) 11.1 16.1 23.7 38.0 167.5

(1)

The Company became self-managed in 1990.

(2)

Alternative Performance Measure. Please see pages 49 and 50 for a glossary of terms and definitions.

KEY FEATURES

(ALL FIGURES AT

30 APRIL)

Page 2

We were all deeply saddened by the news that Robin Angus died on 4 May 2022. Robin served as a Director

of the Company from 1984 and Executive Director from 2002 until his retirement in September 2020.

Robin together with Ian Rushbrook was instrumental in establishing the vision for the Company and for

overseeing its success, as reflected in the growth of market capitalisation from £4.7 million to £1.3 billion

during his tenure.

Robin’s ability to articulate the Company’s investment approach and to communicate with shareholders more

generally through his Quarterlies was second to none. Indeed, at the time of his death Robin had recently

completed writing a Quarterlies Anthology which will now be published in his memory and as a record of his

wide-ranging commentary, reflections and observations from his life at the Company.

As a Board we would like to re-iterate our sincere thanks for Robin’s exemplary service and diligent

stewardship of the Company over the years. He will be sorely missed not only as a colleague but also as a close

friend to many associated with the Company and within the wider investment community. We would also

like to offer our sincere condolences to Robin’s wife Lorna and to his family. I first met Robin in 1973 and

since then he has been a true, kind and generous friend, always curious, always supportive and always guided

by his strong Christian faith; I will miss him greatly.

———— // ————

Following the success of the Covid vaccine programme and the gradual relaxation of restrictions the Board has

been pleased to be able to return to in-person meetings. We have, however, also continued to use the facility of

virtual meetings for Board briefing sessions where appropriate. The Board membership has been stable

throughout the year, and I am grateful for the continuing commitment and wise counsel of my colleagues. During

the year we appointed Board Level Partners to undertake an independent review of the performance of the

Board and the Committees. The review did not highlight any material weaknesses or concerns and concluded

that the Board and the Committees oversee the management of the Company effectively. The review did identify

some key areas for future focus including, Board member succession planning, development of shareholder

communications and monitoring our relationships with our key service providers, Troy and Juniper Partners.

Further detail on this review can be found in the Corporate Governance section on pages 35 and 36.

All our Directors are also shareholders in PAT. We share a strong alignment with and are advocates of the core

investment proposition which is to protect and increase (in that order) the value of shareholder funds per

share (known as net asset value (“NAV”) per share) over the long term.

We track the performance of the Company from 1990 and since then the NAV has grown at an annual

compound rate of 7.0% compared to 4.4% for the FTSE All-Share Index and 3.1% for RPI, the two main

comparators which we use. We also track the degree of risk experienced in achieving our financial

performance. The results are tabulated in the Key Features section on page 1 and the degree of risk experienced

is indicated on the chart on page 15. This shows that consistently over the last 22 years the Company has

been less volatile than equities in general and also less volatile than any of the investment trusts in the AIC

Global and AIC Flexible Investment Sectors. Whilst this combination of above-comparator financial

performance and below-sector volatility is the outcome of a focus on capital preservation, these metrics are

by no means a target. The Investment Manager’s focus remains on the avoidance of permanent capital loss

(our preferred definition of risk) and on growing the real value of the Company’s capital over the long run.

In his report on pages 4 and 5, Sebastian Lyon, our Investment Manager, provides further details of our

investment performance and describes the particular challenges of the last year.

The Company aims to pay as high, secure and sustainable a dividend as is compatible with protecting and

increasing the value of its shareholders’ funds and maintaining its investment flexibility. The Board remains

committed to paying an annual dividend of £5.60 in line with this policy. High levels of inflation during the

year, particularly in the United States, mean that the Company has earned significantly more income on its

holding of US TIPS than in previous years. Accordingly, in order to meet the investment trust distribution

requirements, the Board has resolved to pay an additional special dividend for the year to 30 April 2022 of

£1.40 per share. This dividend will be paid to shareholders in July 2022 alongside the first interim dividend

of £1.40 for the year to 30 April 2023.

CHAIRMAN’S STATEMENT

KEY REPORTS

Page 3

CHAIRMAN’S STATEMENT (CONTINUED)

During the year we issued 455,140 new Ordinary shares, for a net inflow of £223.9 million, our second highest

year on record. As at 30 April 2022 we had 3,688,069 Ordinary shares in issue. It is the policy of the Company

to aim to ensure that its Ordinary shares always trade at close to NAV and this policy is enshrined in the

Articles of Association. It is reassuring to report that since November 1999, when investment trusts were

empowered to use capital to buy back shares and hence control the discount to NAV at which their shares

trade, the PAT share price has closely tracked the NAV while the number of shares in issue is now

approximately eleven times higher.

Our relationship with Troy has continued to be excellent and we are increasingly benefitting from access to

the shared resources and focused support from the Troy team. We are now holding two Board meetings each

year in the Troy offices which is helping us to get to know more members of the Troy team and to deepen our

relationship on a broader base. As our shareholder funds continue to grow above £1.5 billion we are

benefitting from the revised fee structure agreed last year. Details of the fee structure are shown on page 7.

We also pay particular attention to ensuring the competitiveness of our ongoing charges ratio, which was

0.67% for the year ended 30 April 2022, having reduced from 1.18% in 2011 and from 0.73% in 2021.

Our relationship with Juniper Partners, which provides our administrative, company secretarial and discount

control services has also continued to be excellent. Juniper Partners continues to provide a first-class service

to the Company and works in close association with Troy to provide a seamless service to the PAT Board and

Shareholders. It is encouraging to note that the Juniper Partners team are continuing to develop their business,

building capacity and resilience, which benefits all their clients.

We recognise the continuing evolution of the Company’s shareholder base and the increasing number of

investors holding shares through retail platforms who may not have direct access to communications with

the Company. This is a challenge which is often discussed by the Board as we seek to improve communication

and interaction with investors. We hope that our updated website (www.patplc.co.uk), our Quarterlies, our

Annual and Interim Reports and our newly introduced Factsheet are providing investors with easy and

effective access to information about PAT and we will continue to seek innovative ways of improving our

dialogue with shareholders.

In the context of the evolving shareholder base and of our desire to make investing in the Company as efficient

as possible for both existing and future investors the Board has also reviewed the appropriateness of the

Company’s current share price of around £500 per share. After deep consideration, the Board believe that it

is appropriate to seek shareholder approval at the upcoming Annual General Meeting to split each Ordinary

share on a one hundred for one basis. Under the proposals each existing Ordinary share will be subdivided

into 100 new Ordinary shares. By way of example, if you hold 100 Ordinary shares in the Company prior to

the proposed split you will hold 10,000 Ordinary shares following the split and the aggregate value of your

holding immediately pre and post the proposed split will be unchanged. Further detail can be found on page

11 and page 29 in the Director’s Report.

In our Annual Report in 2020, we introduced the PAT Foundation. The objective of the Foundation is to

promote and advance the financial education of younger people wishing to pursue careers within or related

to the investment and finance industries. Good progress has been made on the establishment of the charity

and the Trustees of the Foundation expect to hold the formal public launch of the Foundation with further

details of their plans in Autumn 2022, to coincide with the start of the new academic year.

My colleagues and I have greatly missed the opportunity to meet with our fellow shareholders since our AGM

in 2019 as we have had to hold our last two AGMs in a virtual way. We are, therefore, very much looking forward

to being able to hold the AGM in person this year on Thursday, 14 July 2022 in Edinburgh. The Investment

Manager’s presentation will also be made available on our website following the AGM for those who cannot

attend in person. I would encourage all shareholders to submit any questions for the AGM to our Company

Secretary by email in advance of the meeting at cosec@junipartners.com by Tuesday, 12 July 2022.

In the meantime, I wish you all good health and thank you for entrusting your investment to PAT.

Iain Ferguson CBE

Page 4

Over the year to 30 April 2022 the net asset value per share (“NAV”) of Personal Assets Trust (“PAT”) rose

by 5.8% while our traditional comparator, the FTSE All-Share Index (“FTSE”), rose by 5.1%. The UK Retail

Price Index (“RPI”), which we also use as a comparator (see the inside front cover of this Report and Key

Features and Record 1990-2022 on pages 1 and 13 respectively), rose by 11.1%. Over the past three years the

NAV per share rose by 21.5% compared to FTSE All Share return of +2.9% and RPI +16.1%. The Company’s

NAV and share price (thanks to the discount control mechanism) continued to demonstrate below average

volatility compared to peers and the stock market.

These stable returns for the year under review belie high levels of volatility for capital markets. With the benefit

of hindsight, the liquidity-led stock market boom, which followed the outbreak of the pandemic, peaked over

a year ago in February 2021, with the start in the fall of ‘meme’ stocks. Profitless technology companies

reached heights of valuation not witnessed for 20 years. Over the last five months, this has morphed into a

broader bear market for US equities and bonds, which had previously been buoyed by highly accommodative

monetary policy. Central bankers are now, belatedly, attempting to remove the punch bowl by raising interest

rates from record low levels and beginning quantitative tightening. This is proving highly problematic for the

valuations of asset prices, which had been predicated on (almost) free money.

Investors are endeavouring to navigate a new regime, with the highest level of inflation in 40 years. A year ago,

we suggested that it would be hard to predict the sustainability of rising inflationary forces, which were affected

by the pandemic both in terms of demand, thanks to extreme government stimulus, and supply in relation to

interrupted supply chains. Yet the environment, in which disinflationary forces predominated, had been

waning for some time before the pandemic. While much investor focus has been on the deflationary effects

of technology, other deflationary influences also seem to be fading. Anti-globalisation sentiment has been

growing since the financial crisis. Events such as Trump’s election and his policies on China have begun to slow

four decades of globalisation. The pendulum that swung towards free trade for so long seems to be swinging

back. It is not only the trade of goods that has contributed to disinflation but the free movement of people

that has kept the price of labour down since the fall of the Berlin Wall in 1989. People crossing borders had

a material impact on globalisation as much as the movement of goods. Wage growth is now at a 40-year high

in the US; a lot of this is down to labour market tightness which, beyond the lingering effects of the pandemic,

risks being sustained if nationalism inhibits immigration. Wage growth will be key to whether current

inflationary forces become ingrained. The Governor of the Bank of England, Andrew Bailey’s recent call for

wage restraint revealed the weakness of his hand, as a policy maker, in controlling these pressures.

Supply constraints resulting from the pandemic have been more persistent than many expected. The recent

tragic events in Ukraine present a further unwelcome geopolitical shock and extend the current inflationary

backdrop, aggravating supply shortages for energy and food, in particular. There is a political acceptance

that more resilient supply chains are needed, and re-shoring may be part of the solution. We are shifting from

a ‘just in time’ to a ‘just in case’ economy. Higher domestic capital expenditure will follow in order to add

resilience to developed economies. The drive to optimise financial returns, so evident for the past two decades,

is likely to recede as companies build in a buffer for uncertainty.

Does the Federal Reserve (and other central banks) have a strong enough stomach to tackle inflation head-

on or will it pivot as it did in 2018? Debt levels, as a percentage of GDP, are as high as they were during World

War II, making positive real rates, required to check inflation, almost impossible to achieve without the risk

of a deep recession. The chance of a major policy error is rising. As Stephen King from HSBC points out, the

real Fed Funds rate is the lowest it has been in 70-80 years, which is extraordinary. Up until recent months,

central banks, through talk of inflation’s ‘transitory’ nature and through their own inaction, had been making

a huge bet that inflation would not last long and has little to do with monetary policy. This now looks like

wishful thinking as evidence picks up that inflationary pressures are not only affecting food and energy nor

are they merely pandemic and Ukraine-related. Wages and rents are rising, along with goods.

Several commentators point to the high inflation of the 1970s as a guide for today. These comparisons are too

simplistic as today’s economy differs dramatically from 50 years ago. However, there are some similarities.

Fiscal policy lost its anchor during the 1970s, as it has through the pandemic. Bounce back loans and other

INVESTMENT MANAGER’S REPORT

Page 5

KEY REPORTS

support schemes have been replaced by governments choosing to subsidise wages via transfer payments such

as offsetting rising energy bills. Politicians know that the pernicious effects of inflation fall on those with

middle and low incomes. Social unrest becomes an increased risk if this fiscal anaesthetic is not provided.

How do we invest amid these febrile conditions? We have been warning for some time that the barbell

‘balanced’ portfolio strategy of putting nominal bonds alongside equities is long past its sell-by-date. The

short-term negative correlation between the two asset classes has been of great value to asset allocators in

diversifying portfolios and producing consistent returns. Bonds have thrived on the back of low inflation and

low growth, whilst equities performed during periods of improved economic activity. Over the course of

decades however, falling interest rates supported ever-higher valuations for equities and bonds alike. Today,

the short-term negative correlation between the two asset classes seems to have broken down. In a new regime

of higher inflation, the risk is that bonds and equities fall together. For this reason we have long preferred

index-linked bonds and gold bullion, over conventional bonds, and they have held up relatively well in the

recent bond market sell off and should thrive in a negative real interest rate environment, also known as

‘financial repression’.

During the year, a majority of our equities made positive contributions to returns led by core holdings such as

Microsoft, American Express, Nestlé, Diageo and Franco Nevada. The only meaningful detractors were

Medtronic and Unilever. As markets ran up in 2021 we reduced the Company’s equity exposure amid concerns

that valuations had gone too far. Having started the financial year with 46% in equities, we ended the year with

a 38% exposure. The Shiller cyclically adjusted price earnings ratio (CAPE), a long-term valuation measure, for

the US stock market peaked at 38.6x in November 2021, not far off the level reached in December 1999.

The situation today is different to the tech bubble. In 1999 the overvaluation was concentrated in a smaller

number of stocks (Dotcoms, Cisco, Microsoft, and Juniper Networks). Value was on offer elsewhere. Thanks

to the prevalence of cheap and plentiful capital over the last decade, the overvaluation is far more evenly

spread today, giving fewer places to hide from a de-rating of equities. We are sceptical of those who advocate

equities as a good defence against inflation. Historically, stocks love disinflation, not inflation. Stock market

returns in inflationary periods have been volatile and poor in real terms, despite growing profits – such is the

corrosive effect of inflation. From current starting valuations we suspect returns will be modest and we await

lower equity valuations before putting shareholders’ savings to work.

Investors are warned that ‘past performance is no guide to the future’. The biggest mistake investors can

make is to extrapolate historic earnings, share prices, or valuations. Money illusion, the tendency for people

to view their wealth and income in nominal terms rather than recognise the real value adjusted for inflation,

is hard to resist. This is the mirage between the nominal and the real and will be the enemy of investors seeking

returns ahead of inflation. We will endeavour to continue to preserve and grow shareholders’ funds in real

terms, but we are under no illusion as to the scale of the challenge ahead.

As the Chairman mentioned in his Statement, Robin Angus will be sorely missed by all of us involved with

Personal Assets. He was the heart and soul of the Company for over 30 years. I first came across Robin as an

aspiring investor in my late twenties reading his Quarterlies and later met him along with Ian Rushbrook as

a shareholder. Robin introduced me to investing and thinking as a fiduciary of the sacred savings of others.

His reports were not only beautifully written, but provided objective information for private investors seeking

to protect and grow their assets. His writing offered refreshing honesty and was peppered with classical

witticisms. Shareholders also owe him a debt of gratitude for the introduction of the discount control

mechanism, which was trailblazing in 1999 but has now been adopted as the gold standard by many other

investment trusts. He was a wonderful, supportive and kind colleague and for me, he was always the best

school master I never had.

Sebastian Lyon

INVESTMENT MANAGER’S REPORT (CONTINUED)

Page 6

INTRODUCTION

Personal Assets Trust plc (the “Company”) is what its name implies. It is an investment trust run for private

investors, who may often have committed to it a substantial proportion of their personal wealth. The

Company’s investment policy is to protect and increase (in that order) the value of shareholders’ funds per

share over the long term. It differs from other investment trusts in that its activities are defined not by any

particular portfolio specialisation or investment method but by a desire to satisfy the personal requirements

of those who invest in it. This is reflected in the Board’s statement that ‘our specialisation will be our

shareholders’.

RINCIPAL ACTIVITIES AND STATUS

The Company is incorporated in Scotland (registered number SC074582). It is an investment company as

defined by Section 833 of the Companies Act 2006. It carries on the business of an investment trust and has

been approved as such by HM Revenue & Customs.

BUSINESS MODEL AND STRATEGY FOR ACHIEVING OBJECTIVES

The Company is run by its Board of Directors comprising six non-executive Directors. Four of the Directors

are male and two are female. The Board is responsible for the overall stewardship of the Company, including

investment objectives and strategy, dividends, corporate governance procedures and risk management.

Biographies of the Directors can be found on page 27.

The Directors have a duty to promote the success of the Company. The Directors believe that the best way of

achieving this, as well as delivering the Company’s objective, is to maintain the strong working relationship

with the Investment Manager, Troy Asset Management Limited (“Troy” or the “Investment Manager”). Troy

acted as Investment Adviser to the Company since 2009 and with effect from 1 May 2020 was appointed as

the Company’s Investment Manager. Troy operate within an investment universe, including bands and ranges,

which has been agreed by the Board.

The Board has appointed Juniper Partners Limited (“Juniper Partners”), as its AIFM. The day-to-day

management of the portfolio has been delegated by the AIFM to the Investment Manager, and is the

responsibility of Sebastian Lyon, the Founder and Chief Investment Officer of Troy, in particular. Juniper

Partners also provide company secretarial, administration and discount control services to the Company.

Troy’s investment approach is conservative, attention being paid first and foremost to the downside risk of any

investment. Troy regard risk as permanent loss of an investor’s capital rather than performance relative to a

particular benchmark.

The Investment Manager employs a long-term, long-only approach to investing and has the ability to invest

globally. Whilst asset allocation will vary, in general the investment universe comprises high quality, developed

market equities, developed market government bonds, gold bullion, cash and money market instruments

(such as treasury bills) which the Board believes aligns with its long term investment strategy. Troy judge the

safety and attractiveness of asset classes not just relative to each other but also relative to the asset classes’

histories. When allocating the Company’s assets Troy incorporate valuation measures, inflation expectations,

and monetary and fiscal conditions into their decision-making process from both a top-down perspective

and a stock-specific perspective.

NVESTMENT POLICY

The Company is an investment trust with the ability to invest globally. Its investment policy is to protect and

increase (in that order) the value of shareholders’ funds per share over the long term. While the Company

uses the FTSE All-Share Index (the ‘‘All-Share’’) as a comparator for the purpose of monitoring performance

and risk, the composition of the All-Share has no influence on investment decisions or the construction of the

portfolio. As a result, the Company’s investment performance is likely to diverge from that of the All-Share.

Our definition of ‘‘risk’’ is fundamentally different from that commonly used by other global investment trusts

and the industry at large (ours being ‘‘risk of losing money’’ rather than ‘‘volatility of returns relative to an

index’’). Taking this as our definition of risk, the Board will usually, although not invariably, prefer the

Company’s portfolio as a whole to have a lower level of risk than the All-Share.

STRATEGIC REPORT FOR THE YEAR TO 30 APRIL 2022

Page 7

KEY REPORTS

The Company will invest in equities and fixed income securities and it may also hold cash and cash equivalents

(which may, depending on circumstances, include gold). The Company may use derivatives as a way of

increasing or reducing its investment exposure and to enhance and protect investment positions. The Company

may also from time to time make use of currency hedging.

The Company has no predetermined maximum or minimum levels of exposure to asset classes, currencies or

geographic areas but these exposures are reported to, and monitored by, the Board in order to ensure that

adequate diversification is achieved. The Company’s equity portfolio is typically concentrated in a short list

of stocks and turnover tends to be low. No holding in an individual company will represent more than 10 per

cent. by value of the Company’s total assets at the time of acquisition.

The Company is prepared to make use of both gearing and liquidity, the former by using short-term borrowed

funds or derivatives such as FTSE 100 Futures. The Company’s gearing will not exceed 50 per cent. of

shareholders’ funds in aggregate. In exceptional circumstances, the Company’s liquidity could be as high as

100 per cent. of shareholders’ funds. These limits would not be exceeded without shareholder approval.

The Company may also invest in other investment trusts, especially as a way of gaining exposure to a region

or industry in which the Company preferred not to invest directly. The Company’s policy is not to invest more

than 15 per cent. of its total assets in other investment trusts and other listed investment companies.

An analysis of the investment portfolio at 30 April 2022 can be found on page 12.

NVESTMENT MANAGER

Troy provides investment management services to the Company pursuant to a delegation agreement between the

Company, the AIFM and Troy (the “Investment Management Agreement”). The Investment Management

Agreement may be terminated on six months’ notice. No compensation is payable to the Investment Manager

in the event of termination of the agreement over and above payment in respect of the required six months’

notice. The fee payable to Troy in accordance with the Investment Management Agreement, which is based on

the Company’s shareholders’ funds, is: 0.65 per cent. on the first £750 million; 0.5 per cent. between £750 million

and £1,500 million; and 0.45 per cent. thereafter, payable quarterly in arrears. The investment management fee

is reduced by the amount payable by the Company to Juniper Partners for its AIFM services, which is calculated

on the basis of 0.015 per cent. of shareholders’ funds.

During the year the Board has reviewed the appropriateness of Troy’s appointment. In carrying out its review

the Board considered the investment performance of the Company since the appointment of Troy and its

capability and resources to deliver satisfactory investment performance. It also considered the length of the

notice period of Troy and the fees payable to it.

Following this review the Directors are confident of the Investment Manager’s ability to deliver satisfactory

investment performance. It is therefore their opinion that the continuing appointment of the Investment

Manager, on the terms agreed, is in the interests of shareholders.

At 30 April 2022 Sebastian Lyon had an interest in 21,010 (2021: 20,000) shares of the Company. Charlotte

Yonge, Assistant Manager, had an interest in 350 (2021: 350) shares of the Company.

IVIDEND POLICY

The Company aims to pay as high, secure and sustainable a dividend as is compatible with protecting and

increasing the value of its shareholders’ funds and maintaining its investment flexibility.

ISCOUNT AND PREMIUM CONTROL POLICY

Investment trusts have long suffered from volatile discounts to net asset value. Sometimes, too, the shares of

individual investment trusts may sell temporarily at a significant premium to net asset value. This can put those

investing regularly at a disadvantage, because they may find themselves buying shares at a sizeable premium

which almost certainly will not be sustained and which will therefore have an adverse effect on the return

from their investment.

In view of the disadvantages to shareholders of such discount and premium fluctuations, the Company’s

policy is to ensure that its shares always trade at close to net asset value through a combination of share buy-

backs and the issue of new or Treasury shares at a small premium to net asset value where demand exceeds

supply. This discount and premium control policy is enshrined in the Articles of Association of the Company.

STRATEGIC REPORT FOR THE YEAR TO 30 APRIL 2022 (CONTINUED)

Page 8

KEY PERFORMANCE INDICATORS

The Board assesses its performance in meeting the Company’s objectives against the following Key

Performance Indicators, details of which can be found in the Key Features on page 1 or, in the case of the

volatility of the share price, on page 15 under the heading Volatility and Share Price Total Return Performance

Since 30 April 2000, being the year end closest to the peak of the great 1990s bull market:

•

volatility of the share price total return compared to that of the FTSE All-Share Index, the six trusts

included within the AIC Flexible Investment Sector and the 14 trusts included within the AIC Global

Sector which were in existence on 30 April 2000;

•

share price and net asset value per share against the FTSE All-Share Index over the long term whilst

aiming to protect and increase (in that order) the value of shareholders’ funds per share in accordance with

the Company’s investment objective; and

•

the range and volatility of the discount or premium to net asset value at which the Company’s shares trade,

in order to ensure compliance with its discount and premium control policy enshrined in the Articles of

Association of the Company.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS

The Company believes that it is in the shareholders’ interests to consider environmental, social and governance

(“ESG”) factors when selecting and retaining investments and encourages the Investment Manager to take

these issues into account. The Investment Manager does not exclude companies from its investment universe

purely on the grounds of ESG factors but adopts a positive engagement approach whereby matters are

discussed with management with the aim of improving the relevant policies and management systems and

enabling the Investment Manager to consider how ESG factors could affect long-term investment returns.

The Financial Reporting Council (“FRC”) published a revised UK Stewardship Code (the “Code”) for

institutional shareholders in October 2019 and this has applied to the Company since 1 January 2020. The

purpose of the Code is to enhance the quality of engagement between institutional investors and companies

to help improve long-term returns to shareholders and assist institutional investors with the efficient exercise

of their governance responsibilities. The FRC is encouraging institutional investors to make a statement of

their commitment to the Code. The Board delegates responsibility for selecting the portfolio of investments

within investment guidelines established by the Board, and for monitoring the performance and activities of

investee companies, to the Investment Manager. The Investment Manager carries out detailed research on

investee companies and possible future investee companies through internally generated research. The research

on a company comprises an evaluation of fundamental details such as financial strength, quality of

management, market position and product differentiation, plus an appraisal of issues relevant to it, including

policies relating to socially responsible investment.

The exercise of the Company’s voting rights in respect of investee companies is delegated to the Investment

Manager, which reports to the Board on a regular basis as to how it has voted at any general meetings. The

Investment Manager considers each case on its individual merits with the primary aim of the use of voting

rights being to ensure a satisfactory return from investments. A summary of Troy’s voting behaviour more

generally is reported every quarter in the Responsible Investment factsheet published on Troy’s website. During

the year the Investment Manager engaged with the management of several investee companies on ESG

matters. By way of an example, in July 2021 the Investment Manager identified that Agilent Technologies did

not have a net-zero target and thought that this could impact the attractiveness of Agilent as a supplier to some

companies. The Investment Manager engaged with Agilent Technologies through their investor relations team

and a meeting with their Head of Sustainability, requesting that the company published a net-zero target.

The team at Agilent Technologies said they would make a proposal to the board and in October 2021 the

company published net-zero targets as requested.

The Investment Manager’s Responsible Investment Policy and statement of compliance with the Code can be

found on its website at www.taml.co.uk. The Investment Manager’s Responsible Investment Policy has been

reviewed and endorsed by the Board.

The Company has disclosed its ESG policy on the Association of Investment Companies (“AIC”) website and

this can be viewed at www.theaic.co.uk.

STRATEGIC REPORT FOR THE YEAR TO 30 APRIL 2022 (CONTINUED)

KEY REPORTS

Page 9

COMPETITIVE AND REGULATORY ENVIRONMENT

The Company is an investment trust quoted on the London Stock Exchange and is a member of the AIC.

The Company operates so as to comply with Section 1158 of the Corporation Tax Act 2010, which allows it

to be exempted from capital gains tax on realised investment gains.

In addition to publishing annual and interim reports the Company announces net asset values per Ordinary

share daily and provides more detailed statistical information on a monthly basis to the AIC in order to enable

investors to compare its performance and other relevant information with those of its peer group, the AIC

Flexible Investment Sector.

The Company also publishes quarterly reports on subjects of investment interest to shareholders together

with portfolio information and performance statistics.

RINCIPAL RISKS AND RISK MANAGEMENT

The Board has carried out a careful assessment of the principal risks facing the Company, including the

current geopolitical risks following the Russian invasion of Ukraine and the ongoing impacts of the

COVID-19 pandemic. The Board has established and maintains, with the assistance of the Company

Secretary, a risk matrix which identifies the key risks to the Company. This register is formally reviewed on a

regular basis. Emerging risks that could impact the Company are considered and discussed at each Board

meeting, or on an ad hoc basis as required, along with any proposed mitigating actions.

The principal risks and uncertainties facing the Company, together with a summary of the mitigating action

the Board takes to manage these risks and how these risks have changed over the period, are set out below.

Emerging

Risk

The recent invasion of Ukraine brings risk to economic growth and investors’ risk appetites and consequently

can impact the valuation of companies in the portfolio. There is also an increasing awareness of the challenges

and emerging risks posed by climate change. The economic responses to the COVID-19 pandemic may also

continue to impact on the Company and its portfolio. The government support measures put in place during

the pandemic may result in significant levels of inflation in the medium term.



Increased overall emerging risks due to rising inflation and heightened global political tensions.

Mitigation

The Board seeks to mitigate these emerging risks through maintaining a broadly diversified global equity

portfolio and appropriate asset and geographical allocation. In respect of climate change risks, the investment

process considers ESG factors, as set out in the Strategic Review. Overall the specific potential effects of

climate change are difficult, if not impossible, to predict and the Board and Investment Manager will continue

to monitor developments in this area. The Board is in regular communication with the Investment Manager

on emerging matters which may impact on the portfolio.

Economic

Risk

The Board believes that the principal risk to shareholders and the Company’s investments are events or

developments which can affect the general level of share prices, including for instance, inflation or deflation,

economic recessions and movement in interest rates and currencies which could cause losses within the portfolio.



Risk has been heightened by inflationary increases and geopolitical events, including the invasion of Ukraine.

Mitigation

The Board regularly monitors the investment environment and the management of the Company’s investment

portfolio, and applies the principles detailed in the guidance provided by the Financial Reporting Council.

Further details on the Company’s financial risks are contained in the Notes to the Accounts on pages 20 to 26.

The Company’s strategy is reviewed formally on at least an annual basis considering investment performance,

market developments and shareholder communication. The Board receives regular updates on the

composition of the Company’s portfolio. Investment performance and the portfolio composition has been

monitored specifically in the light of the emerging risks noted above.

STRATEGIC REPORT FOR THE YEAR TO 30 APRIL 2022 (CONTINUED)

Page 10

Operational

Risk

The Company is reliant on service providers including Troy as Investment Manager, Juniper Partners as AIFM,

Company Secretary, Administrator and discount and premium control provider, J.P. Morgan as Depositary and

Custodian and Equiniti as Registrar. Failure of the internal control systems of these parties, including in relation

to cybersecurity measures, could result in losses to the Company.



Risk remains relatively unchanged.

Mitigation

The Board formally reviews the Company’s service providers on an annual basis, including reports on their

internal controls where available. As part of the annual review the Board considers the business continuity

plans in place with each of its key suppliers and the measures taken to mitigate cyber threats. The Company’s

internal controls are described in more detail on page 37.

Legal and Regulatory

Risk

Breach of legal and regulatory rules could lead to the suspension of the Company’s Stock Exchange listing,

financial penalties, or a qualified audit report. Breach of Section 1158 of the Corporation Tax Act 2010 could

lead to the Company being subject to tax on realised capital gains.



Risk remains relatively unchanged.

Mitigation

Compliance with the Company’s regulatory obligations is monitored on an ongoing basis by Juniper Partners,

the Investment Manager and other professional advisers as required who report to the Board regularly.

Discount and Premium Control

Risk

The share price could be impacted by a number of external factors which could cause significant discount and

premium fluctuations.



Risk remains relatively unchanged.

Mitigation

The Company’s discount and premium control policy, which is enshrined in the Articles of Association, is to

ensure that shares always trade at close to net asset value. The level of share buybacks or issuance under the

policy is reported via an RIS on an ongoing basis. The operation of the discount and premium control policy

was reviewed in the light of the COVID-19 pandemic and to date has continued throughout the period without

disruption.

UTY TO PROMOTE THE SUCCESS OF THE COMPANY

The Directors have a duty to promote the success of the Company for the benefit of its shareholders as a

whole. The Directors are required to include a report explaining how they have considered all the requirements

and discharged their duties under Section 172(1) of the Companies Act 2006, taking into account the likely

long-term consequences of decisions taken, the need to foster relationships with all stakeholders in the

Company and the impact of the Company’s operations on the environment. The report includes specific

matters the Board has considered during the year. The Company being an investment trust, the key

stakeholders comprise its shareholders, the Investment Manager and its third-party service providers

(including the Company Secretary and Adminstrator, Registrar, Depositary and Custodian).

STRATEGIC REPORT FOR THE YEAR TO 30 APRIL 2022 (CONTINUED)

KEY REPORTS

Page 11

Engagement with Stakeholders

The Board welcomes the views of shareholders and places considerable importance on communications with

them and the need to act fairly between all shareholders. The Investment Manager reports back to the Board

on meetings with shareholders and the Chairman and other Directors are available to meet shareholders if

required. The Annual General Meeting of the Company and presentations held in London in the normal

course provide a forum, both formal and informal, for shareholders to meet and discuss issues with the Board.

The Company’s primary business relationships are with its Investment Manager, Troy Asset Management

and its AIFM, Company Secretary, Administrator and discount and premium control provider, Juniper

Partners. The Board seeks to maintain high standards of business conduct within all its business relationships

and continues to work closely with the Investment Manager and Juniper Partners to ensure such standards

are met.

The Directors, Sebastian Lyon and their respective families have substantial shareholdings in the Company

(see pages 7, 27 and 32) and those who run the Company therefore have a common interest with those who

invest in it.

Juniper Partners seeks to maintain constructive relationships with the Company’s other third-party suppliers,

for example the Registrar, the Depositary and the Custodian, on behalf of the Board typically through regular

communication and provision of information.

The Board continue to be mindful of ESG matters and believes it is in shareholders’ interests to consider such

matters when selecting and retaining investments. The Board supports and encourages the Investment

Manager’s positive engagement approach with the underlying investee companies. Further details on this

approach can be found in the Strategic Report on page 8.

Specific Examples of Stakeholder Consideration

The Board incorporates the views of shareholders when making key decisions in relation to promoting the long

term success of the Company both for the benefit of existing shareholders as a whole and to continue to

attract new investors to the Company. Following such engagement with shareholders in recent years, the

Board agreed during the year to propose the share split at this year’s AGM. The Board expect a lower share

price to help make the shares more accessible to all prospective investors and existing shareholders, especially

monthly savers and those who regularly re-invest dividends as a way to grow their shareholding.

During the year the Company’s shareholders’ funds continued to grow and were £1.81 billion at 30 April

2022. In April 2021, the Board agreed a revised fee structure for the Investment Manager in the light of the

growth in shareholders’ funds and this fee structure took effect from 1 May 2021. The tiered management fee

structure in place with Troy ensures that shareholders benefit from the economies of scale under

the agreement.

During the year the Board has continued to consider ESG matters and in particular has considered the

increasing awareness placed on climate change risks on the portfolio at its quarterly Board meetings. The

Board continues to work closely with the Investment Manager to understand the ESG considerations that

impact on the portfolio. During the year, in line with the majority of investment trusts, the Company published

a public ESG policy which is now available on the AIC website.

Throughout the COVID-19 pandemic the Directors had increased interaction with the Investment Manager

and Juniper Partners to ensure the continued operation of the Company and its portfolio for the benefit of

its key stakeholders in uncertain circumstances. Throughout the year the Company has continued to function

without disruption. This includes the operation of the Company’s discount and premium control policy which

the Board considers to be essential in providing ongoing liquidity to shareholders.

By Order of the Board

Juniper Partners Limited

Company Secretary

28 Walker Street

Edinburgh EH3 7HR

8 June 2022

STRATEGIC REPORT FOR THE YEAR TO 30 APRIL 2022 (CONTINUED)

Page 12

Bought/ Gain/

Valuation (sold) (loss)

Shareholders’ 30 April in the in the

Funds 2022 period period

Security Country Equity Sector % £’000 £’000 £’000

Equities

Microsoft USA Technology 5.0 91,522 (5,148) 17,442

Alphabet USA Technology 4.7 84,961 6,745 4,065

Visa USA Financial Services 4.1 74,786 17,623 1,260

Unilever UK Food Producer 3.2 58,073 5,021 (7,579)

Nestlé Switzerland Food Producer 3.1 56,240 (8,645) 10,048

American Express USA Financial Services 3.0 54,430 – 10,961

Diageo UK Beverages 2.8 50,908 (1,848) 10,070

Franco Nevada Canada Mining 2.7 49,039 5,316 7,938

Medtronic USA Healthcare 2.4 44,447 3,364 (6,152)

Becton Dickinson USA Pharmaceuticals 1.7 30,746 2,607 3,363

Agilent Tecnology USA Healthcare 1.5 27,868 (4,971) 650

Procter & Gamble USA Household Products 1.5 26,372 – 6,437

Moody's USA Financial Services 1.0 17,522 8,883 366

Experian UK Industrial 0.6 10,749 ––

Pernod-Ricard France Beverages 0.5 8,290 – 863

Philip Morris International USA Tobacco 0.0 – (60,010) 4,726

Berkshire Hathaway USA Insurance 0.0 – (34,563) 534

Total Equities 37.8 685,953 (65,626) 64,992

US TIPS USA 35.7 647,143 118,037 38,561

UK T-Bills UK 15.7 285,784 163,538 (241)

Gold Bullion 9.5 171,934 12,312 26,585

Total Investments 98.7 1,790,814 228,261 129,897

Property 0.1 2,144 ––

UK cash 2.6 47,924 n/a n/a

Overseas cash 0.0 20 n/a n/a

Net current liabilities (1.4) (26,542) n/a n/a

TOTAL PORTFOLIO 100.0 1,814,360 n/a n/a

GEOGRAPHIC ANALYSIS OF INVESTMENTS AND CURRENCY

EXPOSURE AT 30 APRIL 2022

UK USA Canada France Switzerland Total

%%%%%%

Equities 6.6 24.9 2.7 0.5 3.1 37.8

Index-linked securities – 35.7 –––35.7

T-Bills 15.7 ––––15.7

Gold Bullion – 9.5 –––9.5

Property 0.1 ––––0.1

Cash 2.6 0.0 –––2.6

Net current liabilities (1.4)––––(1.4)

Total 23.6 70.1 2.7 0.5 3.1 100.0

Net currency exposure 54.2 39.5 2.7 0.5 3.1 100.0

PORTFOLIO AT 30 APRIL 2022

Page 13

KEY REPORTS

RECORD 1990-2022

Share- Net asset

holders’ Shares value Share FTSE Earnings Dividend Dividend Inflation

Date Funds Liquidity Out- per share Price All-Share per share

(

per share Growth (RPI)

30 April £’000 (%) standing (£) (£) Index (£) (£) (%) (%)

1990

(

8,462 11.8 149,313 56.67 39

1,043.16 1.09 1.00 n/a n/a

1991 9,006 2.6 149,313 60.32 48

1,202.75 1.45 1.50 50.0 6.4

1992 10,589 0.0 149,313 70.92 66 1,282.75 1.67 1.60 6.7 4.3

1993 11,441 2.7 152,187 75.18 81

1,388.88 2.52 1.80 12.5 1.3

1994 12,987 12.0 152,187 85.34 89

1,580.44 2.12 1.95 8.3 2.6

1995 13,939 6.2 152,187 91.59 87 1,578.67 2.00 2.00 2.6 3.3

1996 19,473 15.9 169,173 115.11 118

1,914.61 2.90 2.20 10.0 2.4

1997 27,865 24.5 208,114 133.89 141

2,135.31 3.01 2.30 4.5 2.4

1998 48,702 34.7 270,250 180.21 199

2,788.99 3.57 2.45 6.5 4.0

1999 65,200 37.8 323,966 201.26 202

3,028.40 3.67 2.55 4.1 1.6

2000 73,751 45.3 369,121 199.80 202 3,001.92 2.98 2.62

2.9 3.0

2001 78,000 47.1 376,750 207.03 208

2,869.04 3.27 2.70 2.9 1.8

2002 92,430 48.9 454,472 203.38 209

2,512.04 3.88 2.80 3.7 1.5

2003 104,324 24.5 559,925 186.32 193

1,891.50 3.40 2.90 3.6 3.1

2004 134,770 31.4 641,253 210.17 214

2,237.34 3.98 3.10 6.9 2.5

2005 149,834 35.4 677,185 221.26 224

2,397.05 3.41 3.40 9.7 3.2

2006 189,351 40.8 739,234 256.14 259

3,074.26 3.78 3.70 8.8 2.6

2007 192,416 50.7 726,921 264.70 266 3,355.60 4.95 4.10 10.8 4.5

2008 188,664 100.2 733,051 257.37 258

3,099.94 5.59 4.60 12.2 4.2

2009 171,132 29.9 745,231 229.64 233 2,173.06 5.34 5.00 8.7 (1.2)

2010 233,785 34.4 815,281 286.75 289

2,863.35 4.61 5.20 4.0 5.3

2011 310,000 45.4 984,803 314.78 318 3,155.03 5.68 5.40 3.8 5.2

2012 463,473 50.0 1,380,659 335.69 340

2,984.67 7.23 5.55 2.8 3.5

2013 593,245 56.5 1,685,901 351.89 357 3,390.18 5.69 5.60 0.9 2.9

2014 573,237 56.0 1,717,447 333.77 331

3,619.83 4.78 5.60 0.0 2.5

2015 609,745 59.9 1,742,956 349.83 350

3,760.06 3.65 5.60 0.0 0.9

2016 640,624 56.0 1,744,842 367.15 372

3,421.70 4.78 5.60 0.0 1.3

2017 781,499 54.3 1,960,127 398.70 405

3,962.49 6.20 5.60 0.0 3.5

2018 858,893 61.6 2,212,433 388.21 392 4,127.68 5.23 5.60 0.0 3.4

2019 968,579 64.0 2,392,275 404.88 408 4,067.98 4.97 5.60 0.0 3.0

2020 1,160,966 55.3 2,723,003 426.36 433 3,262.51 5.86 5.60 0.0 1.5

2021 1,503,936 54.3 3,232,929 465.19 471 3,983.85 4.53 5.60 0.0 2.9

2022 1,814,360 62.2 3,688,069 491.95 503 4,185.12 8.36 7.00

(3)

25.0 11.1

Compound growth rates per annum (%)

(4)

(%)

(4)

(%)

(4)

(%) (%) (%)

3 Years 6.7 7.2 1.0 18.9 0.0 – 5.1

5 Years 6.0 6.2 4.1 11.8 0.0 – 4.3

10 Years 3.9 4.0 3.4 4.6 0.1 – 3.3

Since 30 April 1990 7.0 8.3 4.4 6.6 5.5 – 3.1

Shares outstanding and per share values have been adjusted for the 1 for 100 consolidation of Ordinary shares

in January 1993 and exclude shares held in Treasury.

(1)

Based on the weighted average number of shares in issue during the year.

(2)

Personal Assets became self-managed in 1990.

(3)

A special dividend of £1.40 per Ordinary share will be paid in relation to the year ended 30 April 2022.

(4)

Capital only.

Page 14

Share Price versus FTSE All-Share Index (based to 100)

Share Price Total Return versus FTSE All-Share Index Total Return (based to 100)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

100

110

120

130

140

150

Share Price

FTSE All-Share Price Index

Source: Refinitiv Datastream

100

110

120

130

140

150

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

100

120

140

160

180

200

100

120

140

160

180

200

Source: Refinitiv Datastream

Personal Assets − Total Return Index

FTSE All-Share

− Total Return

Index

220 220

TEN YEAR PERFORMANCE

Page 15

Note: The first chart on this page is designed to show the share price volatility of Personal Assets compared to that of the

FTSE All-Share Index. The chart shows how, with the exception of 2013-2014 and 2017-2018, the Company’s capital

performance has tended to be less volatile than that of the All-Share but, even taking both the above periods into account,

the Company’s long-term price gain of 149.0% since April 2000 has comfortably exceeded the All-Share’s 39.4%.

Annual percentage change in Share Price and FTSE All-Share Index to 30 April

-40%

20%

40%

60%

80%

Share Price FTSE All-Share Index

2000-

2001

2001-

2002

2002-

2003

2003-

2004

2004-

2005

2005-

2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010

2010-

2011

2011-

2012

2012-

2013

2013-

2014

2015-

2016

100%

2016-

2017

-40%

-20%

40%

60%

80%

100%

2014-

2015

2000-

2022

120% 120%

140% 140%

2017-

2018

2018-

2019

2019-

2020

2020-

2021

160%

2021-

2022

ANNUAL PERFORMANCE SINCE 30 APRIL 2000

Personal Assets

FTSE All-Share Index

AIC Flexible Investment Sector Member

AIC Global Sector Member

Volatility

Performance

012345678910 11

-100

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

-100

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

VOLATILITY AND SHARE PRICE TOTAL RETURN PERFORMANCE

SINCE 30 APRIL 2000

Note: The Scatter Graph shows the share price total return performance of Personal Assets (very large blue dot) and the

FTSE All-Share Index (large black dot) compared to that of the other six trusts included within the AIC Flexible

Investment Sector and the 14 trusts included within the AIC Global Sector (within which the Company was included

between 2000 and 2016), in terms of share price (vertical axis) and monthly price volatility (horizontal axis) since 30 April

2000. Only the trusts in existence on 30 April 2000 have been included in the chart below. Personal Assets, while performing

better than the All-Share over the period, shows up as the least volatile of all the trusts.

Volatility Compared to Peer Group since 30 April 2000

KEY REPORTS

Page 16

Year ended 30 April 2022 Year ended 30 April 2021

Revenue Capital Revenue Capital

return return Total return return Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Investment income

Calculated using the effective

interest rate method 2 25,942 – 25,942 3,272 – 3,272

Other investment income 2 13,847 – 13,847 15,733 – 15,733

Other operating income 2 68 – 68 –––

Gain on disposal of asset

held for sale –––– 1,559 1,559

Gains on investments

held at fair value through

profit or loss 8 – 129,897 129,897 – 80,865 80,865

Foreign exchange (losses)/gains 8 – (49,813) (49,813) – 38,951 38,951

Total income 39,857 80,084 119,941 19,005 121,375 140,380

Expenses 3 (5,016) (6,295) (11,311) (4,423) (5,269) (9,692)

Return before taxation 34,841 73,789 108,630 14,582 116,106 130,688

Taxation 5,6 (5,931) 3,325 (2,606) (1,045) 482 (563)

Return for the year 28,910 77,114 106,024 13,537 116,588 130,125

Return per share £8.36 £22.31 £30.67 £4.53 £39.04 £43.57

The ‘‘Return for the Year’’ is also the ‘‘Total Comprehensive Income for the Year’’, as defined in IAS1 (revised), and no separate Statement

of Comprehensive Income has been presented.

The ‘‘Total’’ column of this statement represents the Company’s Income Statement, prepared in accordance with International Financial

Reporting Standards.

The Revenue return and Capital return columns are supplementary to this and are prepared under guidance published by the Association

of Investment Companies.

Return per share is calculated on 3,456,868 (2021: 2,986,288) shares, being the weighted average number in issue (excluding Treasury

shares) during the year.

All items in the above statement derive from continuing operations.

INCOME STATEMENT

The Notes to the Accounts on pages 20-26, including the accounting policies on pages 20 and 21, form part of these accounts.

Page 17

FINANCIAL STATEMENTS

30 April 30 April

2022 2021

Notes £’000 £’000

Non-current assets

Investments held at fair

value through profit or loss 8 1,790,814 1,432,656

Property 9 2,144 2,144

Total non-current assets 1,792,958 1,434,800

Current assets

Receivables 10 4,429 1,228

Cash and cash equivalents 47,944 70,907

Total current assets 52,373 72,135

Total assets 1,845,331 1,506,935

Current liabilities

Financial liabilities held at fair value through profit or loss 11 (26,585) (676)

Corporation tax payable 11 (1,486) –

Other payables 11 (2,900) (2,323)

Total liabilities (30,971) (2,999)

Net assets 1,814,360 1,503,936

Capital and reserves

Ordinary share capital 12 46,100 40,410

Share premium 1,235,636 1,017,672

Capital redemption reserve 219 219

Special reserve 22,517 22,517

Capital reserve unrealised 324,095 285,947

Distributable reserves (see page 18) 185,793 137,171

Total equity 1,814,360 1,503,936

Shares in issue at year end 12 3,688,069 3,232,929

Net asset value per

Ordinary share £491.95 £465.19

The financial statements on pages 16-26 were approved and authorised for issue by the Board of Directors and

signed on its behalf on 8 June 2022 by:

Iain Ferguson

Chairman

STATEMENT OF FINANCIAL POSITION

The Notes to the Accounts on pages 20-26, including the accounting policies on pages 20 and 21, form part of these accounts.

Page 18

The Notes to the Accounts on pages 20-26, including the accounting policies on pages 20 and 21, form part of these accounts.

Distributable reserves*

Ordinary Capital Treasury Capital Capital

share Share redemption Special share reserve reserve Revenue

For the year ended capital premium reserve reserve reserve unrealised realised reserve Total

30 April 2022 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Balance at

1 May 2021 40,410 1,017,672 219 22,517 – 285,947 137,171 – 1,503,936

Return for

the year –––––38,148 38,966 28,910 106,024

Ordinary

dividends paid

(1)

–––––––(19,254) (19,254)

Issue of

Ordinary shares

(2)

5,690 217,964 ––––––223,654

Balance at

30 April 2022 46,100 1,235,636 219 22,517 – 324,095 176,137 9,656 1,814,360

Distributable reserves*

Ordinary Capital Treasury Capital Capital

share Share redemption Special share reserve reserve Revenue

For the year ended capital premium reserve reserve reserve unrealised realised reserve Total

30 April 2021 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Balance at

1 May 2020 34,580 811,635 219 22,517 (17,622) 215,074 93,852 711 1,160,966

Return for

the year –––––70,873 45,715 13,537 130,125

Ordinary

dividends paid

(1)

––––––(2,396) (14,248) (16,644)

Issue of

Ordinary shares

(2)

5,830 206,037 ––17,622 –––229,489

Balance at

30 April 2021 40,410 1,017,672 219 22,517 – 285,947 137,171 – 1,503,936

(1)

See Note 7.

(2)

See Note 12.

* The Capital reserve realised and Revenue reserve represent distributable reserves available and intended for distribution as and when

required.

Share premium. The share premium represents the difference between the nominal value of new Ordinary

shares issued and the consideration the Company receives for these shares.

Capital redemption reserve. The capital redemption reserve represents the nominal value of Ordinary shares

bought back for cancellation since authority to do this was first obtained at a General Meeting in April 1999.

Special reserve. The cost of any shares bought back for cancellation is deducted from the special reserve,

which was created from the share premium, also following a General Meeting in April 1999.

Treasury share reserve. The net cost of any shares bought back and held in treasury.

Capital reserve unrealised. Increases and decreases in the valuation of investments held at the year end and

unrealised exchange differences of a capital nature are accounted for in this Reserve.

Capital reserve realised. Gains and losses on the realisation of investments, realised exchange differences of a

capital nature and returns of capital are accounted for in this Reserve.

Revenue reserve. Any surplus/deficit arising from the revenue return for the year is taken to/from this Reserve.

STATEMENT OF CHANGES IN EQUITY

Page 19

FINANCIAL STATEMENTS

Year ended Year ended

30 April 30 April

2022 2021

Notes £’000 £’000

Cash flows from operating activities

Return before taxation 108,630 130,688

Income calculated using the effective interest rate method (25,942) (3,272)

Gains on investments (129,897) (82,424)

Foreign exchange losses/(gains) 49,813 (38,951)

Operating cash flow before movements in working capital 2,604 6,041

(Increase)/decrease in accrued income, prepayments and other receivables (222) 733

Increase in other payables 577 276

Net cash from operating activities before taxation 2,959 7,050

Taxation (1,064) (563)

Net cash inflow from operating activities 1,895 6,487

Cash flows from investing activities

Purchase of investments – equity shares (61,064) (118,361)

Purchase of investments – fixed interest and other investments (835,033) (613,740)

Purchase of gold bullion (12,312) (25,044)

Purchase of freehold property – (445)

Disposal of investments – equity shares 126,691 59,569

Disposal of investments – fixed interest and other investments 579,399 450,077

Disposal of subsidiary – 2,793

Settled forward foreign exchange (losses)/gains (23,807) 40,230

Net cash outflow from investing activities (226,126) (204,921)

Cash flows from financing activities

Equity dividends paid 7 (19,254) (16,644)

Issue of Ordinary shares 220,618 230,576

Net cash inflow from financing activities 201,364 213,932

(Decrease)/increase in cash and cash equivalents (22,867) 15,498

Cash and cash equivalents at the start of the year 70,907 56,091

Effect of exchange rate changes (96) (682)

Cash and cash equivalents at the year end 47,944 70,907

Net cash inflow from operating activities includes the following:

Dividends received 9,474 12,702

Interest received 4,262 4,133

CASH FLOW STATEMENT

The Notes to the Accounts on pages 20-26, including the accounting policies on pages 20 and 21, form part of these accounts.

Page 20

1. AC

COUNTING

LICIES

SIS OF

COUNTING

The financial statements of the Company have been pre-

pared in accordance with UK-adopted International Ac-

counting Standards and with the requirements of the

Companies Act 2006 as applicable to companies reporting

under those standards. This change constitutes a change in

accounting framework. However, there is no impact on

recognition or disclosure in the period reported as a result of

the change in framework.

The financial statements have been prepared on a going con-

cern basis.

The financial statements are presented in Sterling and all

values are rounded to the nearest thousand pounds (£’000)

except where otherwise indicated.

The financial statements have been prepared on the his-

torical cost basis, modified by revaluation of financial as-

sets and financial liabilities held at fair value. The principal

accounting policies adopted are set out below. These have

been applied consistently, other than where new policies

have been adopted. Where the presentational guidance set

out in the Statement of Recommended Practice (the

‘‘SORP’’) for investment trusts issued by the Association of

Investment Companies (the ‘‘AIC’’) in April 2021 is con-

sistent with the requirements of IFRSs, the Directors have

sought to prepare the financial statements on a basis com-

pliant with the recommendation of the SORP.

RESENTATION OF INCOME STATEMENT

In order better to reflect the activities of an investment

trust company, and in accordance with guidance issued by

the AIC, supplementary information which analyses the

Income Statement between items of a revenue and capital

nature has been presented alongside the Income State-

ment.

NCOME

Dividends are recognised as income when the shareholders’

right to receive payment has been established, normally the

ex-dividend date.

Dividends receivable on equity shares where no ex-divi-

dend date is quoted are recognised when the Company’s

right to receive payment is established.

Where the Company has received its dividends in the form

of additional shares rather than cash, the cash equivalent

of the additional shares is recognised as income.

Dividends from overseas companies are shown gross of

withholding tax.

Special dividends are classified as either revenue or capital

depending on their nature.

Fixed interest returns on non-equity securities (fixed in-

terest securities) are recognised on a time apportionment

basis so as to reflect the effective yield on the investment,

being amortisation of premium/accretion of discount

spread over the life of the investment. For the US TIPS

holdings any US inflationary movement in the year is also

recognised.

All other interest income and other income, is accounted

for on an accruals basis.

XPENSES

All expenses are accounted for on an accruals basis. Ex-

penses are charged to revenue except those incurred in the

maintenance and enhancement of the Company’s assets

and taking account of the expected long-term returns, as

follows:

Investment management fees have been allocated 35 per

cent. to revenue and 65 per cent. to capital.

Transaction costs incurred on the acquisition or disposal of

investments are expensed to capital.

AXATION

In accordance with the SORP, the marginal rate of tax is

applied to taxable net revenue.

Deferred tax is the tax expected to be payable or recover-

able on differences between the carrying amounts of assets

and liabilities in the financial statements and the corre-

sponding tax bases used in the computation of taxable

profit, and is accounted for using the balance sheet liabil-

ity method. Deferred tax liabilities are recognised for all

taxable temporary differences and deferred tax assets are

recognised to the extent that it is probable that taxable

profits will be available against which deductible tempo-

rary differences can be utilised.

NVESTMENTS

Investments are recognised and derecognised on the trade

date where a purchase or sale is under a contract the terms

of which require delivery within a period of time estab-

lished by the market concerned, and are measured at fair

value being the consideration payable or receivable.

Investments are designated in terms of IFRSs as ‘‘invest-

ments held at fair value through profit or loss’’, and are

measured at subsequent reporting dates at fair value, which

is either the bid price or the last traded price, depending

on the convention of the exchange on which the investment

is quoted. Investments in Gold Bullion are valued using

the London Bullion Market Association gold price which

is the global benchmark price for unallocated gold deliv-

ered in London. Investments in unit trusts or OEICs are

valued at the closing price released by the relevant invest-

ment manager.

Any gain or loss arising from a movement in investments

is included as a gain or loss on investments in the income

statement as a capital item.

NOTES TO THE ACCOUNTS

Page 21

FINANCIAL STATEMENTS

1. AC

COUNTING

LICIES (CONTINUED)

ASSETS CLASSIFIED AS HELD FOR SALE

Assets classified as held for sale are measured at fair value,

being the lower of the carrying amount and fair value less

costs to sell.

OPERTY

Property is included at fair value. Any gain or loss arising

from changes in the fair value is included in the Income

Statement as a capital item. Depreciation is not charged as

it is not material.

OREIGN CURRENCY

Transactions denominated in foreign currencies are recorded

at the actual exchange rate at the date of the transaction.

Monetary assets, non-monetary assets and liabilities de-

nominated in foreign currencies at the year end are carried

at fair value by using the rate of exchange prevailing at the

balance sheet date. The currencies to which the Company

was exposed during the year to 30 April 2022 were Euros,

Swiss Francs and US Dollars. The exchange rates applying

against Sterling at 30 April were as follows:

2022 2021

Euro 1.1921 1.1491

Swiss Franc 1.2237 1.2616

US Dollar 1.2571 1.3814

Forward currency contracts are classified as financial as-

sets or liabilities held at fair value through profit or loss

and are reported at fair value at the year end by using the

forward rate of exchange prevailing at the year end. The

change in fair value is recognised in the Income Statement

as a capital item. The forward rates of exchange of the

Company’s US Dollars to Sterling contracts at 30 April

2022, were as follows:

Maturity date Rate

2022

16 May 2022 1.2571

15 June 2022 1.2572

15 July 2022 1.2576

2021

17 May 2021 1.3814

15 June 2021 1.3816

15 July 2021 1.3817

Any gain or loss arising from a movement in exchange rates

subsequent to the date of the transaction is included as an

exchange gain or loss in the Income Statement as a revenue

or capital item depending on the nature of the gain or loss.

ASH AND CASH EQUIVALENTS

Cash comprises cash in hand and demand deposits. Cash

equivalents are short-term, highly liquid investments that are

readily convertible to known amounts of cash and are sub-

ject to an insignificant risk of changes in value.

NANCIAL

ABILITIES AND

UITY

Financial liabilities and equity instruments are classified

according to the substance of the contractual arrange-

ments entered into. An equity instrument is a contract that

evidences a residual interest in the assets of the Company

after deducting all of its liabilities. Financial liabilities and

equity instruments are initially recorded at the proceeds re-

ceived, net of issue costs. Subsequently financial liabilities

are carried at either fair value through profit or loss or at

amortised cost.

UDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’s accounting policies,

the Directors are required to make judgements, estimates

and assumptions about carrying values of assets and lia-

bilities that are not always readily apparent from other

sources. The estimates and associated assumptions are

based on historical experience and any other factors that

are considered relevant. Actual results may vary from these

estimates. The Directors do not consider that there are any

such items in these financial statements.

APITAL MANAGEMENT

The Company’s capital management objectives are to en-

sure that it will be able to continue as a going concern (the

going concern analysis is detailed in the Directors’ Report

on page 28) and to protect and increase (in that order) the

value of shareholders’ funds per share over the long term.

The Company’s capital is represented by its capital and re-

serves as presented in the Statements of Financial Position

on page 17.

The capital of the Company is managed in accordance

with its investment policy, in pursuit of its business model

and strategy for achieving objectives, both of which are de-

tailed in the Strategic Report on pages 6-11 and the Board,

with the assistance of the Investment Manager, monitors

and reviews the broad structure of the Company’s capital

on an ongoing basis.

UYBACK OF SHARES INTO TREASURY AND SUBSEQUENT

RE-ISSUE

The cost of buying back shares into treasury, including the

related stamp duty and transaction costs, is accounted for

in the treasury share reserve. Share repurchase transactions

are accounted for on a trade date basis. Where shares held

in treasury are subsequently cancelled, the nominal value

of those shares is transferred out of ordinary share capital

and into capital redemption reserve.

The sales proceeds from the re-issue of treasury shares, less

any profit or loss over the cost of acquiring the shares, is

accounted for in the treasury share reserve. Any profit or

loss created from the sales proceeds over the purchase price

is transferred to share premium.

NOTES TO THE ACCOUNTS (CONTINUED)

Page 22

2. IN

COME

2022 2021

£’000 £’000

Effective interest rate

calculated interest

Indexation from fixed

interest securities 25,942 3,272

25,942 3,272

Other income from investments

Franked investment income 3,143 4,458

Fixed interest securities 4,324 3,686

Overseas dividends 6,380 7,589

13,847 15,733

Other operating income

Deposit interest 14 –

Other income 54 –

68 –

Total income 39,857 19,005

3. EXPENSES

022 2022 2022 2021 2021 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Investment

Management fee

(1)

3,389 6,295 9,684 2,837 5,269 8,106

Secretarial fees 509 – 509 481 – 481

Directors' fees 179 – 179 172 – 172

Depositary fees 157 – 157 130 – 130

Other expenses 152 – 152 169 – 169

Savings scheme

expenses 138 – 138 122 – 122

Custody fees 129 – 129 105 – 105

London Stock

Exchange and

regulatory fees 105 – 105 85 –85

Registrar's fees 81 – 81 82 –82

Office costs 65 – 65 24 – 24

Auditors’

remuneration

for audit 40 – 40 37 – 37

Printing and

postage 39 – 39 50 –50

Irrecoverable VAT 33 – 33 41 –41

Staff costs –––88 – 88

5,016 6,295 11,311 4,423 5,269 9,692

(1)

An amount of £2,520,000 was payable to Troy at the year end

(2021: £2,132,000).

Details of the Company’s ongoing charges can be found at

www.patplc.co.uk. The unaudited Ongoing Charges Ratio

for the year ended 30 April 2022 was 0.67 per cent. (2021

unaudited: 0.73 per cent.).

4. D

RECTORS’

MUNERATION

2022 2021

£’000 £’000

Directors’ fees and salaries 179 259

Employer’s national insurance 17 17

196 276

5. TAX

2022 2021

£’000 £’000

Foreign tax suffered 1,121 563

Corporate tax 1,485 –

Total tax charge 2,606 563

The Company had no deferred tax asset as at 30 April 2022

in respect of unutilised expenses (2021: £2,130,000). Dur-

ing the year the Company utilised the brought forward sur-

plus unutilised expenses balance to offset its corporation

tax liability.

Capital expenses of £17,499,217 (2021: £2,534,634) have

been used to offset the Company’s tax position.

6. F

ACTORS AFFECTING TAX CHARGE FOR YEAR

The tax charge for the year is lower (2021: lower) than the

standard rate of corporation tax in the UK. The differ-

ences are explained below:

2022 2021

£’000 £’000

Return before tax 108,630 130,688

Corporation tax at standard rate

of 19 per cent. (2021: 19 per cent.) 20,640 24,831

Effects of:

Capital gains not subject

to taxation (15,216) (23,061)

Investment income not subject

to taxation (1,809) (2,289)

Excess of expenses over chargeable

income – 519

Utilisation of prior year management

charges (2,130) –

Foreign tax suffered 1,121 563

Total tax charge (note 5) 2,606 563

NOTES TO THE ACCOUNTS (CONTINUED)

Page 23

FINANCIAL STATEMENTS

7. DI

VIDENDS

2022 2021

£’000 £’000

Amounts recognised as distributions

to equity holders per Ordinary share

in the year ended 30 April 2022:

First interim dividend of £1.40

(2021: £1.40) paid on 16 July 2021 4,599 3,895

Second interim dividend of £1.40

(2021: £1.40) paid on 8 October 2021 4,730 4,068

Third interim dividend of £1.40

(2021: £1.40) paid on 12 January 2022 4,912 4,242

Fourth interim dividend of £1.40

(2021: £1.40) paid on 13 April 2022 5,013 4,439

19,254 16,644

All dividends were paid from the Company’s distributable

reserves.

8. I

NVESTMENTS

2022 2021

£’000 £’000

Listed on a recognised investment

exchange:

Investments 1,618,880 1,299,619

Gold Bullion

(1)

171,934 133,037

1,790,814 1,432,656

2022 Listed Listed

UK Overseas Total

£’000 £’000 £’000

Opening book cost 211,860 934,173 1,146,033

Opening unrealised appreciation 24,694 261,929 286,623

Opening valuation 236,554 1,196,102 1,432,656

Movements in the year

Purchases at cost 647,896 260,513 908,409

Effective yield adjustment

(1)

248 25,694 25,942

Sales proceeds (481,434) (224,656) (706,090)

Sales – realised gains on sales 3,134 62,706 65,840

Unrealised (loss)/profit on

the fair value of investments

during the year (883) 64,940 64,057

Total movement during the year 168,961 189,197 358,158

Closing valuation 405,515 1,385,299 1,790,814

Listed Listed

UK Overseas Total

£’000 £’000 £’000

Closing book cost 381,704 1,058,430 1,440,134

Closing unrealised appreciation 23,811 326,869 350,680

405,515 1,385,299 1,790,814

2021 L

isted Listed

K Overseas Total

’000 £’000 £’000

Opening book cost 205,045 679,872 884,917

Opening unrealised appreciation 21,998 194,058 216,056

Opening valuation 227,043 873,930 1,100,973

Movements in the year

Purchases at cost 312,524 444,621 757,145

Effective yield adjustment

(

139 3,133 3,272

Sales proceeds (305,012) (204,587) (509,599)

Sales – realised (losses)/gains

on sales (836) 11,134 10,298

Unrealised profit on the fair

value of investments during

the year 2,696 67,871 70,567

Total movement during the year 9,511 322,172 331,683

Closing valuation 236,554 1,196,102 1,432,656

Listed Listed

K Overseas Total

’000 £’000 £’000

Closing book cost 211,860 934,173 1,146,033

Closing unrealised appreciation 24,694 261,929 286,623

236,554 1,196,102 1,432,656

(

See Income section of Accounting Policies for a fuller description.

2022 2021

£’000 £’000

Represented by:

Equities 685,953 686,586

US TIPS 647,143 490,545

UK T-Bills 285,784 122,488

Gold Bullion 171,934 133,037

1,790,814 1,432,656

Realised gains on sales 65,840 10,298

Unrealised gains on the fair value

of investments during the year 64,057 70,567

Realised (losses)/gains on foreign

exchange (23,904) 39,627

Unrealised losses on foreign exchange (25,909) (676)

Gains on investments 80,084 119,816

Transaction costs

During the year the Company incurred transaction costs of

£81,460 (2021: £138,596) on the purchase of investments

and £56,287 (2021: £21,874) on the sale of investments.

9. P

ROPERTY

2022 2021

£’000 £’000

Opening cost 2,144 1,699

Acquisitions – 445

Closing cost 2,144 2,144

Revaluation in year – –

Closing valuation 2,144 2,144

The property is used as the Company’s offices.

NOTES TO THE ACCOUNTS (CONTINUED)

Page 24

10. CU

RRENT

SETS

2022 2021

£’000 £’000

Receivables

Due from brokers 3,036 –

Accrued income 1,305 1,102

Tax receivable 26 83

Prepayments and other receivables 62 43

4,429 1,228

11. CURRENT LIABILITIES

2022 2021

£’000 £’000

Financial Liabilities

Fair value of forward

currency contracts 26,585 676

Payables

Corporation tax payable 1,486 –

Other payables 2,900 2,323

4,386 2,323

12. ORDINARY SHARE CAPITAL

Number £’000

Allotted, called-up and fully

paid Ordinary shares

of £12.50 each:

Balance at 1 May 2020 2,723,003 34,580

Shares issued during the year 466,380 5,830

Treasury shares re-issued 43,546 –

Balance at 1 May 2021 3,232,929 40,410

Shares issued during the year 455,140 5,690

Balance at 30 April 2022 3,688,069 46,100

As at 30 April 2022, the total number of Ordinary shares

of £12.50 of the Company in issue were 3,688,069, and no

Ordinary shares were held in Treasury.

13. B

USINESS SEGMENT

The Directors are of the opinion that the Company is en-

gaged in the single business of investing in equity shares,

fixed interest securities and other investments.

14. F

INANCIAL INSTRUMENTS

The Company holds investments in listed companies, fixed

interest securities and physical gold, holds cash balances and

has receivables and payables. It may from time to time also

invest in FTSE 100 Futures and enter into forward currency

contracts. Cash balances are held for future investment and

forward currency contracts are used to manage the exchange

risk of holding foreign investments. Further information is

given in the Strategic Report for the Year to 30 April 2022 on

pages 6-11.

The fair value of the financial assets and liabilities of the

Company at 30 April 2022 and at 30 April 2021 is not dif-

ferent from their carrying value in the financial statements.

The Company is exposed to various types of risk that are

associated with financial instruments. The most important

types are credit risk, liquidity risk, interest rate risk, mar-

ket price risk and foreign currency risk.

The Board reviews and agrees policies for managing its risk

exposures. These policies are summarised below and have

remained unchanged for the year under review.

Credit Risk

Credit risk is the risk that an issuer or counterparty will be

unable or unwilling to meet a commitment that it has en-

tered into with the Company.

The Company’s principal financial assets are investments,

cash balances and other receivables, the carrying value of

which represents the Company’s maximum exposure to

credit risk in relation to financial assets.

The Company is exposed to potential failure by counter-

parties to deliver securities for which the Company has

paid, or to pay for securities which the Company has de-

livered. A list of pre-approved counterparties used in such

transactions is maintained and regularly reviewed by the

Company, and transactions must be settled on a basis of

delivery against payment. Broker counterparties are se-

lected based on a combination of criteria, including credit

rating, balance sheet strength and membership of a rele-

vant regulatory body. Risk relating to unsettled transac-

tions is considered to be small because of the short

settlement period involved and the credit quality of the

brokers used.

All of the assets of the Company, other than cash deposits and

receivables, are held by J.P. Morgan Chase Bank N.A., the

Company’s Custodian, acting as a delegate ofJ.P. Morgan Eu-

rope Limited which has been appointed as the Company’s De-

positary.

Bankruptcy or insolvency of the Custodian might cause the

Company’s rights with respect to the securities held by the

Custodian to be delayed or limited. The Board monitors the

Company’s risk by reviewing the Custodian’s internal con-

trol reports on a regular basis.

The credit risk on cash balances and derivative financial in-

struments is limited because the counterparties are banks with

high credit ratings, rated A or higher, assigned by international

credit rating agencies. Bankruptcy or insolvency of such fi-

nancial institutions might cause the Company’s ability to ac-

cess cash placed on deposit to be delayed or limited. Credit

risk and exposure is spread between three counterparties, with

a maximum limit of 4% of the Company’s net assets to be

held at each, subject to an overall limit of 10% of the Com-

pany’s net assets.

NOTES TO THE ACCOUNTS (CONTINUED)

Page 25

FINANCIAL STATEMENTS

14. FI

NANCIAL

STRUMENTS (CONTINUED)

Market Price Risk

The fair value of equity and other financial securities held in

the Company’s portfolio fluctuates with changes in market

prices. Prices are themselves affected by movements in cur-

rencies and interest rates and by other financial issues in-

cluding the market perception of future risks. The

Company’s strategy for the management of market price risk

is driven by the Company’s investment policy as outlined

within the Strategic Report on pages 6-11. The Board sets

policies for managing this risk and meets regularly to review

full, timely and relevant information on investment per-

formance and financial results. The management of market

price risk is part of the fund management process and is fun-

damental to investment. The portfolio is managed with an

awareness of the effects of adverse price movements in mar-

kets with an objective of maximising overall returns to

shareholders. Investment and portfolio performance are dis-

cussed in more detail in the Investment Manager’s Report

and the investment portfolio is set out on page 12.

Any changes in market conditions will directly affect the

profit or loss reported through the Income Statement. For

instance, a 30 per cent. increase in the value of the invest-

ment exposure at 30 April 2022 would have increased net

return and net assets for the year by £537,244,000 (2021: a

30 per cent. increase in the value of the investment expo-

sure would have increased net return by £429,797,000). A

decrease of 30 per cent. (2021: 30 per cent.) would have had

an equal but opposite effect. These calculations are based

on investment valuations at the respective balance sheet

date and are not representative of the year as a whole.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter

in realising assets or otherwise raising funds to meet fi-

nancial commitments. The risk of the Company not having

sufficient liquidity at any time is not considered by the

Board to be significant, given the liquid nature of the port-

folio of investments and the level of cash and cash equiva-

lents ordinarily held. The Investment Manager reviews

liquidity at the time of each investment decision. The

Board reviews liquidity exposure at each meeting.

All of the Company’s financial liabilities at 30 April 2022

had a maturity period of less than three months.

Interest Rate Risk

Some of the financial instruments held by the Company

are interest bearing. As such, the Company is exposed to

interest rate risk resulting from fluctuations in the prevail-

ing market rate.

Floating Rate

When the Company holds cash balances, such balances are

held on overnight deposit accounts and call deposit ac-

counts. The benchmark rate which determines the interest

payments received on cash balances is the bank base rate,

which at 30 April 2022 was 0.75 per cent. in the UK (2021:

0.1 per cent.).

Floating interest rate exposure at 30 April:

2022 2021

£’000 £’000

Sterling 47,924 70,718

US Dollar 20 189

47,944 70,907

Considering effects on cash balances, an increase of

100 basis points (2021: 75 basis points) in interest rates

would have increased net assets and income for the period

by £480,000 (2021: £532,000). A decrease of 100 basis

points (2021: 75 basis points) would have had an equal but

opposite effect. The calculations are based on the cash bal-

ances at the balance sheet date and are not representative

of the year as a whole.

Fixed rate and zero rate

The Company may from time to time hold fixed interest

or zero interest investments.

Maturity profile

The maturity profile of the Company’s fixed interest or

zero interest investments at the Balance Sheet date was as

follows:

At 30 April 2022: More

Within Within than

1 year 1-5 years 5 years

£’000 £’000 £’000

US TIPS 49,729 415,767 181,648

UK T-Bills 285,784 ––

335,513 415,767 181,648

At 30 April 2021: More

Within Within than

1 year 1-5 years 5 years

£’000 £’000 £’000

US TIPS 57,776 299,270 133,499

UK T-Bills 122,488 ––

180,264 299,270 133,499

NOTES TO THE ACCOUNTS (CONTINUED)

Page 26

14. FI

NANCIAL

STRUMENTS (CONTINUED)

Foreign Currency Risk

The Company invests in overseas securities and holds cash

in overseas currencies.

2022 2021

Gross currency exposure at 30 April: £’000 £’000

Euros 8,290 7,428

Swiss Francs 56,240 54,837

US Dollars

(1)

1,315,789 1,134,026

(

At 30 April 2022 the Sterling cost of a portion of the US Dollar denomi-

ated assets (including US Treasury Inflation Protected Securities

(

‘‘TIPS’’) and US equities) was protected by a forward currency contract.

The fair value of minus £26,585,000 (2021: fair value of minus £676,000) on

the US$732,247,000 (2021: US$728,362,000) sold forward against

£555,802,000 (2021: £526,515,000) is included in financial liabilities (2021:

financial liabilities). All foreign exchange contracts in place at 30 April 2022

were due to mature within three months. The exposure to US Dollars as

hown above also includes Gold Bullion. At 30 April 2022 the net exposure

o US Dollars was £689,363,000 (2021: £571,050,000) including Gold Bul-

lion and £517,430,000 (2021: £438,014,000) excluding Gold Bullion.

Foreign Currency Sensitivity

The following table illustrates the sensitivity of the total re-

turn for the year and net assets in relation to the Com-

pany’s overseas monetary financial assets and financial

liabilities. It assumes a 10 per cent. depreciation of Sterling

against the Euro, Swiss Franc and US Dollar. The sensi-

tivity analysis is based on the Company’s monetary foreign

currency financial instruments held at each balance sheet

date.

If Sterling had weakened by 10 per cent. against the cur-

rencies shown, this would have had the following positive

effect:

Income Statement – return on ordinary activities after

taxation:

2022 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Euros 14 829 843 – 743 743

Swiss Francs 126 5,624 5,750 137 5,484 5,621

US Dollars 3,499 76,499 79,998 1,304 60,751 62,055

3,639 82,952 86,591 1,441 66,978 68,419

A 10 per cent. strengthening of Sterling against the above

currencies would have had an equal but opposite effect on

the return after taxation.

15. F

INANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

2022 2021

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Description £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Investments 1,790,814 ––1,790,814 1,432,656 ––1,432,656

Financial

liabilties – (26,585) – (26,585) – (676) – (676)

Total 1,790,814 (26,585) – 1,764,229 1,432,656 (676) – 1,431,980

Level 1 reflects financial instruments quoted in an active

market. The Company’s investment in Gold Bullion has

been included in this level.

Level 2 reflects financial instruments the fair value of

which is evidenced by comparison with other observable

current market transactions in the same instrument or

based on a valuation technique the variables of which in-

clude only data from observable markets. The Company’s

forward currency contract has been included in this level as

fair value is achieved using the foreign exchange spot rate

and forward points which vary depending on the duration

of the contract.

Level 3 reflects financial instruments the fair value of

which is determined in whole or in part using a valuation

technique based on assumptions that are not supported by

prices from observable market transactions in the same in-

strument and not based on available observable market

data.

There have been no changes to valuation technique over

the year.

16. R

ELATED PARTY TRANSACTIONS

Investment management services are provided by Troy Asset

Management Limited. The fee for the year ended 30 April

2022 was £9,684,000 (2021: £8,106,000). An amount of

£2,520,000 was outstanding to the Investment Manager at

30 April 2022 (2021: £2,132,000).

Directors of the Company received fees for their services. An

amount of £15,000 was outstanding to the Directors at

30 April 2022 (2021: £15,000). Further details are provided in

the Directors’ Remuneration Report on pages 32 and 33. The

Directors’ shareholdings are also detailed on pages 27 and 32.

17. A

LTERNATIVE INVESTMENT FUND MANAGERS DIREC-

TIVE (“AIFMD”)

In accordance with the AIFMD, information in relation

to the Company’s leverage and the remuneration of the

Company’s AIFM, Juniper Partners, is required to be

made available to investors. In accordance with the Direc-

tive, the AIFM’s remuneration policy and remuneration

disclosures in respect of the year ended 30 April 2022 are

available from Juniper Partners on request.

The Company’s maximum and actual leverage levels at

30 April are shown below:

Gross Commitment

Method Method

2022

Maximum limit 200% 200%

Actual 129% 132%

2021

Maximum limit 200% 200%

Actual 130% 135%

There have been minor amendments to the Company’s in-

vestor disclosure document in the year to 30 April 2022.

The investor disclosure document and all additional

periodic disclosures required in accordance with the re-

quirements of the FCA Rules implementing the AIFMD

in the UK are made available on the Company’s website

(www.patplc.co.uk).

NOTES TO THE ACCOUNTS (CONTINUED)

Page 27

ADDITIONAL REPORTS

The Directors have pleasure in presenting their Annual Re-

port together with the audited financial statements of the

Company for the year to 30 April 2022.

ESULTS

A review of the Company’s returns during the financial

year, the position of the Company at the year end and the

outlook for the coming year is contained within the Chair-

man’s Statement and Investment Manager’s Report on

pages 2 to 5.

OARD OF DIRECTORS

At the year end the Board comprised six non-executive

Directors.

Iain Ferguson CBE (Chairman)

Joined the Board as a non-executive Director in 2017.

Shares held: 3,391 Fees during year: £50,000

Chairman of Crest Nicholson Holdings plc and Genus plc.

He was previously Chairman of Berendsen plc, Stobart

Group Limited and Senior Independent Director and

Chairman of the Remuneration Committee at Balfour

Beatty plc. Until 2009 he was Chief Executive of Tate & Lyle.

Prior to joining Tate & Lyle in 2003, he spent 26 years at

Unilever in a succession of rôles culminating in his ap-

pointment as senior vice president, corporate development.

He holds a BSc (Hons) in Chemistry & Psychology from St

Andrews University and has the Harvard Business School

Advanced Management Programme.

Mandy Clements

Joined the Board as a non-executive Director in 2020.

Shares held: 100 Fees during year: £25,000

Until December 2019 Mandy Clements (nee Pike) was

CEO of legal entities responsible for £300 billion of assets

at Aberdeen Standard Investments, having worked at the

group for 19 years. She also oversaw the dealing function

globally for over 14 years and has held dealing roles at

F&C Asset Management (Foreign and Colonial), Brewin

Dolphin and BNP Capital Markets, having started her ca-

reer at Grieveson Grant Stockbrokers in 1983.

Gordon Neilly

Joined the Board as a non-executive Director in 1997.

Shares held: 1,968 Fees during year: £25,000

Executive Chairman of WhiteStar Asset Management Eu-

rope, and non-executive director of Montanaro European

Smaller Companies Trust plc. Previously Chief of Staff at

Standard Life Aberdeen. Prior to this was Head of Strategy

and Corporate Activity at Aberdeen Standard Investments,

Co-Chief Executive Officer of Cantor Fitzgerald Europe,

Chief Executive of Intelli Corporate Finance and Finance

and Business Development Director of Ivory & Sime. Com-

pany Secretary of the Company for ten years, he joined the

Board as a non-executive Director in 1997 and has consid-

erable experience and knowledge of investment trusts.

Paul Read (Senior Independent Director)

Joined the Board as a non-executive Director in 2017.

Shares held: 3,400 Fees during year: £25,000

Until his retirement in December 2021, Paul Read co-lead

Invesco’s Henley based fixed income team. He began his

investment career in 1986 in investment banking fixed in-

come sales and trading, first with UBS (Securities) Ltd and

later with Merrill Lynch International. He holds a BA in

Economics and History from the University of Toronto

and also has an MBA from INSEAD.

Robbie Robertson

Joined the Board as a non-executive Director in 2020.

Shares held: 300 Fees during year: £25,000

During a 37 year career in investment trust broking, he

gained extensive experience of investment trust sales, re-

search and corporate advisory services. He worked as an

investment trust analyst for Laurence Prust and Wood

Mackenzie, and then headed the investment companies

teams at Dresdner Kleinwort Wasserstein, and Canaccord

Genuity. He is currently a Special Adviser to Investec Bank

plc and a consultant to Genesis Investment Management

LLP. He holds an M.A. in English Literature from Edin-

burgh University and an M.Litt from Oxford University.

Jean Sharp (Chair of the Audit Committee)

Joined the Board as a non-executive Director in 2016.

Shares held: 1,102 Fees during year: £29,000

Non-executive Director and Chair of the Audit and Com-

pliance Committee of Flood Re Limited and FBD Hold-

ings plc and a director of RAC Pension Trustees Limited.

Until December 2019 she was Chief Taxation Officer of

Aviva and its predecessor companies, a role she had held

since 1998. She is a Chartered Accountant and a former

partner of EY LLP. She holds a BComm and a MAcc from

University College Dublin.

CTIVITIES

A review of the Company’s activities during the year can be

found in the Strategic Report on pages 6-11 and in the

Chairman’s Statement and Investment Manager’s Report.

ESPONSIBILITY STATEMENT

The directors are responsible for preparing the Annual Re-

port and the financial statements in accordance with ap-

plicable law and regulation.

Company law requires the directors to prepare financial

statements for each financial year. Under that law the di-

rectors have prepared the financial statements in accor-

dance with UK-adopted international accounting

standards.

DIRECTORS’ REPORT

Page 28

Under company law, Directors must not approve the fi-

nancial statements unless they are satisfied that they give a

true and fair view of the state of affairs of the Company

and of the profit or loss of the company for that period. In

preparing the financial statements, the Directors are re-

quired to:

• select suitable accounting policies and then apply them

consistently;

• state whether applicable UK-adopted international ac-

counting standards have been followed, subject to any

material departures disclosed and explained in the fi-

nancial statements;

• make judgements and accounting estimates that are

reasonable and prudent; and

• prepare the financial statements on the going concern

basis unless it is inappropriate to presume that the

Company will continue in business.

The Directors are responsible for safeguarding the assets of

the Company and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

The directors are also responsible for keeping adequate ac-

counting records that are sufficient to show and explain

the Company’s transactions and disclose with reasonable

accuracy at any time the financial position of the Company

and enable them to ensure that the financial statements

and the Directors’ Remuneration Report comply with the

Companies Act 2006.

The Directors are responsible for the maintenance and in-

tegrity of the Company’s website. Legislation in the United

Kingdom governing the preparation and dissemination of

financial statements may differ from legislation in other ju-

risdictions.

ESPONSIBILITY STATEMENTS UNDER THE DISCLOSURE

GUIDANCE AND TRANSPARENCY RULES

Each of the Directors listed on page 27 confirms that to

the best of her or his knowledge:

• the financial statements, prepared in accordance with

international accounting standards in conformity with

the requirements of the Companies Act 2006, give a

true and fair view of the assets, liabilities, financial po-

sition and profit or loss of the Company; and

• the Strategic Report includes a fair review of the de-

velopment and performance of the business and the

position of the Company together with a description

of the principal risks and uncertainties that it faces.

OING CONCERN

The Directors acknowledge that the continuing situation

surrounding the COVID-19 pandemic and heightened geo-

political tensions creates risks and uncertainties which may

impact the Company. Nevertheless, the Directors believe,

in the light of the controls and review processes reported in

the Report of the Audit Committee on page 37 and bear-

ing in mind the nature of the Company’s business and as-

sets, which are considered to be readily realisable if re-

quired, that the Company has adequate resources to con-

tinue operating for at least twelve months from the date of

approval of the financial statements. For this reason, they

continue to adopt the going concern basis in preparing the

accounts.

As part of the going concern assessment a sensitivity analy-

sis was performed. If the market dropped by 25% and no

dividend income became available the Company would be

able to continue operating for the foreseeable.

IABILITY STATEMENT

The Board considered its obligation to assess the viability

of the Company over a period longer than the twelve

months from the date of approval of the financial state-

ments required by the ‘going concern’ basis of accounting.

The Board considers the Company, with no fixed life, to

be a long term investment vehicle but, for the purposes of

this viability statement, has decided that a period of five

years is an appropriate period over which to report. The

Board considers that this period reflects a balance between

looking out to a long term horizon and the inherent un-

certainties of looking out further than five years.

When deciding on this period the Directors considered the

nature of the Company’s portfolio of liquid investments

comprising listed global equities, US TIPS, US Treasuries,

UK Index-Linked Gilts, UK T-Bills, Gold Bullion and cash

and cash equivalents. The Directors also considered the

Company’s ability to fulfil the stated dividend policy and

the operation of its discount and premium control policy.

The Directors have also carried out an exhaustive assess-

ment of the principal and emerging risks as noted in the

Strategic Report on pages 9 and 10 and discussed in note

14 to the financial statements that are facing the Company

over the period of the review, including those that would

threaten its business model, future performance, solvency

or liquidity.

Based on the results of this analysis, the Directors have a

reasonable expectation that the Company will be able to

continue in operation and meet its liabilities as they fall

due over the five year period of their assessment.

DUTY TO PROMOTE THE SUCCESS OF THE COMPANY

A summary explaining how the Directors have discharged

their duties under section 172 of the Companies Act 2006

and considered the views of the Company’s key stakehold-

ers in regard to any key decisions taken throughout the

period is contained in the Strategic Report on pages 10

and 11.

APITAL STRUCTURE

At 30 April 2022 there were 3,688,069 Ordinary shares of

£12.50 each in issue of which nil Ordinary shares are held

in Treasury.

During the year the Company issued 455,140 Ordinary

shares for proceeds of £223,946,000.

DIRECTORS’ REPORT (CONTINUED)

ADDITIONAL REPORTS

Page 29

The revenue profits of the Company (including accumu-

lated revenue reserves) and realised capital profits are avail-

able for distribution by way of dividends to the holders of

the Ordinary shares (excluding any Ordinary shares held in

Treasury, which have no entitlement to dividends).

Voting rights and deadlines for exercising voting rights can

be found in the Notes for the Annual General Meeting

(“AGM”) which can be found on pages 47 and 48.

ROPOSED SHARE SPLIT

As noted in the Chairman’s Statement, the Directors are

increasingly aware of changes in its shareholder base as

well as changes in the way in which investors hold their

shares. The Company’s shares are now held through a

broad range of wealth managers and retail platforms. The

size of the Company’s share price, which exceeded £500

during the year, can be prohibitive for smaller sharehold-

ers and for shareholders who want to reinvest their divi-

dends. The Board has listened to shareholder views and

considered the Company’s share price in the light of these

various factors and has a desire to make an investment in

the Company as efficient as possible for both existing and

future investors.

Accordingly, the Board believes that it is appropriate to

seek shareholder approval at the upcoming Annual Gen-

eral Meeting to split each Ordinary share on a 100 for one

basis. Under the proposals each existing Ordinary share of

£12.50 each (the “Existing Ordinary shares”) will be sub-

divided into 100 new Ordinary shares of 12.5 pence each

(the “New Ordinary shares”).

Following the share split, each shareholder will hold 100

New Ordinary shares for each Existing Ordinary share

they held immediately prior to the date of the share split.

Whilst the share split will increase the number of Ordinary

shares the Company has in issue, upon the share split be-

coming effective the net asset value, share price and divi-

dend per share can be expected to become one-hundredth

of their respective values immediately preceding the share

split. A holding of New Ordinary shares will represent the

same proportion of the issued ordinary share capital of the

Company as the corresponding holding of Existing Ordi-

nary shares immediately prior to the split. The share split

will not therefore affect the overall value of a shareholder’s

holding in the Company.

The New Ordinary shares will rank pari passu with each

other and will carry the same rights and be subject to the

same restrictions as the Existing Ordinary shares, includ-

ing the same rights to participate in dividends paid by the

Company. Communication preferences and mandates and

other instructions for the payment of dividends in paper

form or via CREST will, unless and until revised, continue

to apply to the New Ordinary shares.

The share split will not itself give rise to any liability to UK

income tax (or corporation tax on income) for sharehold-

ers. For the purposes of UK capital gains tax and corpo-

ration tax on chargeable gains, the receipt of the New

Ordinary shares from the share split will be a reorganisa-

tion of the share capital of the Company. Accordingly, a

shareholder’s holding of New Ordinary shares will be

treated as the same asset as the shareholder’s holding of

Existing Ordinary shares and as having been acquired at

the same time, and for the same consideration, as that

holding of Existing Ordinary shares.

The proposed share split requires the approval of share-

holders and, accordingly, Resolution 12 seeks such ap-

proval. The share split is conditional on the New Ordinary

shares being admitted to the Official List of the Financial

Conduct Authority and to trading on the London Stock

Exchange’s main market for listed securities. Applications

for such admissions will be made and, if they are accepted,

it is proposed that the last day of dealings in the Existing

Ordinary shares will be 29 July 2022 (with the record date

for the share split being 6.00pm on that date) and that deal-

ings in the New Ordinary shares will commence on 1 Au-

gust 2022. If resolution 12 is passed, the share split will

become effective on admission of the New Ordinary shares

to the Official List, which is expected to be at 8.00am on

1 August 2022.

The aggregate nominal value of the Company’s issued share

capital as at 7 June 2022 was £46,895,987.50 comprising

3,751,679 Ordinary shares. No Ordinary shares were held in

treasury. If the share split was applied to the issued share

capital as at 7 June 2022, the total aggregate nominal value

of the share capital would remain at £46,895,987.50 but will

comprise 375,167,900 Ordinary shares.

The New Ordinary shares may be held in certificated or

uncertificated form. Following the share split becoming ef-

fective, share certificates in respect of the Existing Ordi-

nary shares will cease to be valid and will be cancelled.

New certificates in respect of the New Ordinary shares will

be issued to those shareholders who hold their Existing Or-

dinary shares in certificated form and are expected to be

dispatched not later than 15 August 2022. No temporary

documents of title will be issued. Transfers of New Ordi-

nary shares between 1 August 2022 and the dispatch of

new certificates will be certified against the Company’s reg-

ister of members held by the Company’s Registrars.

It is expected that the ISIN (GB0006827546) of the Exist-

ing Ordinary shares will be disabled in CREST at the close

of business on 29 July 2022 and the New Ordinary shares

will be credited to CREST accounts on 1 August 2022.

ESULTS AND DIVIDEND

The results for the year are set out in the Income Statement

on page 16. The Company pays quarterly dividends in Jan-

uary, April, July and October. The Company paid four

quarterly interim dividends of £1.40 per share and will pay

a special dividend of £1.40 per share to shareholders in re-

spect of the year ended 30 April 2022. The special dividend

will be paid on Friday, 22 July 2022 to shareholders on the

16 June 2022.

DIRECTORS’ REPORT (CONTINUED)

Page 30

BSTANTIAL

TERESTS

At 30 April 2022 the Board are aware of the following

holdings representing (directly or indirectly) three per cent.

or more of the voting rights attaching to the issued share

capital of the Company:

Substantial Holder Held Percentage

Interactive Investor 659,847 17.92

Brewin Dolphin 448,733 12.19

Hargreaves Lansdown 385,559 10.47

Rathbones 307,472 8.35

AJ Bell 182,628 4.96

Charles Stanley 136,045 3.69

ource: RD:IR

There have been no changes notified in respect of the

above holdings, and no new holdings notified, since the

end of the year.

INANCIAL INSTRUMENTS

Information on the Company’s financial instruments can

be found in the Notes to the Accounts on pages 20-26.

RINCIPAL RISKS AND RISK MANAGEMENT

Information on the principal risks to shareholders and

management of these risks can be found in the Strategic

Report on pages 9 and 10 and in note 14 to the Accounts

on pages 24-26.

IRECTORS’ INDEMNITY

The Company’s Articles of Association entitle any Direc-

tor or Officer of the Company to be indemnified out of the

assets of the Company against any loss or liability incurred

by her or him in the execution of her or his duties in rela-

tion to the Company’s affairs to the extent permitted

by law.

Directors’ and officers’ liability insurance cover is in place

in respect of the Directors and was in place throughout the

year under review.

ODERN SLAVERY STATEMENT

The Modern Slavery Act 2015 requires certain companies

to prepare a slavery and human trafficking statement. As

the Company has no employees and does not supply goods

and services, it does not fall within the scope of The Mod-

ern Slavery Act and therefore no slavery or human traf-

ficking statement is included in the Annual Report.

Although the Company is not required to it has published

a statement on its website.

ARBON EMISSIONS

As an externally managed investment trust with no em-

ployees, the Company’s greenhouse gas emissions are neg-

ligible. Streamlined Energy and Carbon Reporting applies

to all large companies. However, as the Company did not

consume more than 40,000 kWh of energy during the past

year, it qualifies as a low energy user and is exempt from re-

porting under these regulations.

NDEPENDENT AU

DITORS

PricewaterhouseCoopers LLP (“PwC”) have indicated

their willingness to continue in office as Auditors and a res-

olution proposing their re-appointment will be proposed

at the AGM.

TATEMENT OF DISCLOSURE OF INFORMATION TO AUDITORS

As far as the Directors are aware, there is no relevant audit

information of which the Auditors are unaware, and each

Director has taken all the steps that he or she ought to have

taken as a Director in order to make herself or himself aware

of any relevant audit information and to establish that the

Auditors are aware of that information.

NNUAL GENERAL MEETING

The Annual General Meeting (‘AGM’) of the Company will

be held at The Kimpton Charlotte Square Hotel, Edinburgh

EH2 4HQ on Thursday, 14 July 2022 at 12 noon. The Board

would welcome your attendance at the AGM as it provides

shareholders with an opportunity to ask questions of both

the Board and the Investment Manager.

SOLUTIONS TO BE

OPOSED AT THE

AGM

Resolutions 1, 2 and 4 to 10 inclusive are self-explanatory

and will be proposed as Ordinary Resolutions.

Resolution 3 – Dividend Policy (Ordinary Resolution)

As a result of the timing of the payment of the Company’s

quarterly dividends in January, April, July and October the

Company’s shareholders are unable to approve a final divi-

dend each year. As an alternative the Board puts the Com-

pany’s dividend policy to shareholders for approval on an

annual basis.

Resolution 3, which will be proposed as an Ordinary Reso-

lution, relates to the approval of the Company’s dividend

policy which is as follows:

Dividends on the Ordinary shares are payable quarterly in

January, April, July and October. The Company aims to pay

as high, secure and sustainable a dividend as is compatible

with protecting and increasing the value of its shareholders’

funds and maintaining its investment flexibility. The Com-

pany has the ability in accordance with its Articles of Asso-

ciation to make distributions from capital.

Resolution 11 – Aggregate Directors’ Fees (Ordinary

Resolution)

The annual limit on Directors’ fees is set out in the Articles

of Association. The present limit is £250,000 per annum and

the approval of shareholders is required to change this limit.

Following a review of the level of Directors’ fees for the year

ended 30 April 2022 the aggregate fees payable to Directors

will increase. In order to provide the Company with suffi-

cient flexibility to appoint additional Directors as part of

the continued refreshment of the Board it is proposed the

annual limit be increased to £275,000 per annum. Resolu-

tion 11 seeks shareholder approval for the proposed increase

in the annual limit on Directors’ fees within the Articles of

Association.

DIRECTORS’ REPORT (CONTINUED)

Resolution 12 – Sub-division of Ordinary shares (Ordinary

Resolution)

Resolution 12, which will be proposed as an Ordinary Res-

olution, seeks shareholders’ approval to split each existing

Ordinary share into one hundred new Ordinary shares, fur-

ther details on the proposed sub-division can be found on

pages 11 and 29.

Resolution 13 – Authority to allot Ordinary shares (Ordinary

Resolution)

During the financial year under review the Company con-

tinued its policy of issuing shares at a small premium to net

asset value in response to demand. Resolution 13 seeks

shareholder approval to authorise the Directors to issue new

Ordinary shares up to an aggregate nominal amount of

£9,379,197.50, being 20 per cent. of the total issued shares at

7 June 2022.

Treasury Shares

Under UK company law investment trusts are able to ac-

quire their own shares to hold in Treasury for re-issue. The

Directors consider that this facility gives the Company more

flexibility in managing its share capital. At 30 April 2022

there were no Ordinary shares held in Treasury.

Resolution 14 – Dis-application or pre-emption rights

Resolution 14 seeks shareholder authority for the Company

to allot shares for cash without first offering them to exist-

ing shareholders. The Company is seeking authority to allot

up to £9,379,197.50 Ordinary shares through the issuance

of new Ordinary shares or the re-issuance of shares from

Treasury, being 20 per cent. of the total issued shares at

7 June 2022.

The Directors issue new shares or re-issue shares from Treas-

ury only when they believe it is advantageous to the Com-

pany’s shareholders to do so and for the purpose of

operating the Company’s discount and premium control

policy. Shares will be issued or re-issued at a premium to the

net asset value at the time or sale and in no circumstances

would such issue of new ordinary shares or re-issue of shares

from Treasury result in a dilution to the net asset value per

share.

Resolution 15 – Authority to repurchase Ordinary shares

The Company’s current authority to make market purchases

of up to 14.99 per cent. of the issued Ordinary shares expires

at the end of the Annual General Meeting. There were no

Ordinary shares bought back under this authority during

the year to 30 April 2022.

Resolution 15, which will be proposed as an Ordinary reso-

lution, seeks shareholder approval to renew the Company’s

power to purchase its own Ordinary shares for a further pe-

riod until the conclusion of the Company’s Annual General

Meeting in 2023 or on the expiry of 15 months from the

passing of this resolution, whichever is the earlier.

The minimum price (excluding expenses) which may be paid

for each Ordinary share on exercise of the authority will not

be less than the nominal value of each share or greater than

the higher of (a) 105 per cent. above the average middle mar-

ket quotation of those shares over the five business days be-

fore the shares are purchased and (b) the higher of the last

independent trade and the highest current independent bid

on the London Stock Exchange. The authority, which may

be used to buy back shares either for cancellation or to be

held in Treasury, will be used to purchase shares only if, in

the opinion of the Directors, a purchase would be in the best

interests of the shareholders as a whole and would result in

an increase in the net asset value per share for the remaining

shareholders. There are no outstanding options or warrants

to subscribe for equity shares in the capital of the Company.

Resolutions 14 and 15 would provide the Directors with the

authority they need to manage Treasury shares. Treasury

shares will be re-issued only at a premium to the net asset

value of the shares at the time of sale.

Resolution 16 – Notice period for General Meetings

The Company’s Articles of Association enable the Company

to call General Meetings (other than an Annual General

Meeting) on 14 clear days’ notice. In order for this to be ef-

fective, shareholders must also approve annually the calling

of meetings other than Annual General Meetings on

14 days’ notice. Resolution 16 will be proposed at the An-

nual General Meeting to seek such approval. The approval

will be effective until the Company’s next Annual General

Meeting, when it is intended that a similar resolution will

be proposed.

The Company meets the requirements for electronic voting

under the Companies Act 2006, offering facilities for all

shareholders to vote by electronic means. The Directors be-

lieve it is in the best interests of the shareholders for the

shorter notice period to be available to the Company, al-

though it is intended that this flexibility will be used only for

early renewals of the Board’s authority to issue new shares

or re-issue shares from Treasury and only where merited in

the interests of shareholders as a whole.

ECOMMENDATION

The Board considers that the resolutions to be proposed

at the AGM are in the best interests of the shareholders as

a whole and recommends that they vote in favour of such

resolutions, as the Directors intend to do in respect of their

own beneficial holdings.

By Order of the Board

Juniper Partners Limited

Company Secretary

28 Walker Street

Edinburgh EH3 7HR

8 June 2022

DIRECTORS’ REPORT (CONTINUED)

ADDITIONAL REPORTS

Page 31

ATEMENT BY THE

AIRMAN

This report has been prepared in accordance with the re-

quirements of the Companies Act 2006. An Ordinary res-

olution for the approval of this report will be put to

shareholders at the forthcoming Annual General Meeting.

The remuneration policy, which was approved by share-

holders at the Company’s AGM in September 2020 (the res-

olution received 99.84 per cent. of votes for, 0.16 per cent.

against, and 0.4 per cent. of votes cast were withheld), will

also be put to shareholders for approval at the AGM

in 2023.

Remuneration Committee

The Remuneration Committee, chaired by Paul Read and

comprising Mr Read, Mandy Clements, Robbie Roberston

and Jean Sharp, reviews the Directors’ fees and the remu-

neration paid to the Investment Manager (together with

the terms and conditions of appointment of the Investment

Manager) on an annual basis. The terms of reference of the

Remuneration Committee clearly define the Committee’s

responsibilities. These terms are reviewed annually and are

available for inspection on the Company’s website.

RECTORS’

MUNERATION

LICY

The Board’s policy is that fees should be sufficient to at-

tract and retain Directors capable of managing the Com-

pany on behalf of its shareholders. No shareholder views

were sought in setting the remuneration policy although

any comments received from shareholders are considered.

It is intended that this policy will continue until it is put to

shareholders at the AGM in 2023. Non-executive Directors

do not have service contracts but on being appointed are

provided with a letter of appointment.

Directors do not receive any pension benefits, share op-

tions, long-term incentive schemes or other benefits.

NNUAL REPORT ON REMUNERATION

The fees paid to the Directors have not been amended since

2019 and for the year ended 30 April 2022 were £50,000

for the Chairman, £29,000 for the Audit Committee Chair

and £25,000 for each of the other Directors per annum.

During the year the Remuneration Committee reviewed

the level of fees paid to the Directors. This review included

an analysis of the fees against the rate of increase in the

Retail Price Index, payments made by other investment

trusts of a similar size and structure and returns to share-

holders. The Committee also considered the independent

research conducted by Trust Associates on fees paid to

non-executive Directors in the investment company sector.

The Directors are conscious of the continued need for

Board refreshment and have a desire to attract and retain

the best candidates to fulfil such roles and represent share-

holders’ interests. Following this review it was concluded

that the fees paid to the Directors were not competitive

taking into account various factors. Accordingly, the con-

clusion of this review was that the fees payable to the Di-

rectors for the year to 30 April 2023 should increase to

£60,000 for the Chairman, £40,000 for the Audit Commit-

tee Chair and £30,000 for each of the other Directors per

annum.

The Board remains committed to ensuring that the Com-

pany is run efficiently and on a cost effective basis for

shareholders as whole. Given the increased size of the

Company the proposed increases to the Directors’ fees will

have no impact on the Company’s ongoing charges.

The annual limit on Directors’ fees is set out in the Com-

pany’s Articles of Association. The present limit is

£250,000 in aggregate per annum and the approval of

shareholders is required to change this. As noted on

page 30 it is proposed that the aggregate limit in the Com-

pany’s Articles of Association be increased to £275,000 per

annum to provide the Company with sufficient flexibility

to appoint additional Directors as part of the continued

refreshment of the Board.

Directors’ Interests (Audited)

The Directors at the end of the year and their interests in

the shares of the Company at 30 April 2022 and 30 April

2021 were as follows:

Director Interest 2022 2021

Iain Ferguson (Chairman) Beneficial 3,391 3,221

Mandy Clements Beneficial 100 50

Gordon Neilly Beneficial 1,968 1,967

Paul Read Beneficial 3,400 3,400

Robbie Robertson Beneficial 300 300

Jean Sharp Beneficial 1,102 1,102

There have been no changes in the above holdings between

1 May 2022 and 8 June 2022.

Directors’ Remuneration for the Year (Audited)

Year ended Year ended

30 April 2022 30 April 2021

Director Fees Salary Fees Salary Change

Iain Ferguson

(Chairman)

£50,000 – £42,580 ––

Mandy Clements

£25,000 – £17,529 ––

Gordon Neilly £25,000 – £25,000 ––

Paul Read £25,000 – £25,000 ––

Robbie Robertson

£25,000 – £17,529 ––

Jean Sharp £29,000 – £29,000 ––

Robin Angus

†

––– £77,260 n/a

Hamish Buchan

†

––£15,046 – n/a

Total £179,000 – £171,684 £77,260

Appointed Chairman on 18 September 2020.

†

Retired 18 September 2020.

Appointed 18 September 2020.

The rates of Directors’ fees for the year ended 30 April

2022 were set out in the Directors’ Remuneration Report

contained in the Company’s 2021 Annual Report.

DIRECTORS’ REMUNERATION REPORT

Page 32

Page 33

ADDITIONAL REPORTS

DIRECTORS’ REMUNERATION REPORT (CONTINUED)

Relative Importance of Directors’ Fees

2022 2021 %

£’000 £’000 change

Directors’ fees and salaries 179 249 -28.1

Expenses 11,311 9,692 +16.7

Dividends paid 19,254 16,644 +15.7

Directors’ fees and salaries as a percentage of:

2022 2021

% %

Expenses 1.6 2.6

Dividends paid 0.9 1.5

Further details of the Company’s expenses can be found in

notes 3 and 4 on page 22 and of dividends paid in note 7

on page 23.

Approval

Voting on the resolution to approve the Directors’ Remu-

neration Report at the Company’s AGM on 23 July 2021

was as follows:

Resolution % For % Against % Withheld

Approve Directors’

Remuneration Report 99.69 0.15 0.16

A vote ‘withheld’ is not a vote in law, which means that the votes are not

counted in the calculation of the votes for or against the resolution.

Company Performance

The graph below compares, for the ten financial years

ended 30 April 2022, the share price total return (assuming

all dividends were reinvested) to Ordinary shareholders in

each period compared to the total shareholder return on a

notional investment in the FTSE All-Share Index. This

index represents a comparable broad equity market index

and is the Company’s comparator. An explanation of the

performance of the Company for the year ended 30 April

2022 is given in the Chairman’s Statement and Investment

Manager’s Report on pages 2-5.

On behalf of the Board

Paul Read

Director

8 June 2022

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

100

120

140

160

180

200

220

100

120

140

160

180

200

220

Source: Refinitiv Datastream

FTSE All-Share

− Total Return Index

Personal Assets

−

Total Return Index

Page 34

INTRODUCTION

The Company is run by its Board, which takes all major

decisions collectively. All of the Directors regard them-

selves and one another as equal in the duties and respon-

sibilities they owe to shareholders and accordingly work

together as a unitary Board within which the Chairman

(who is elected by the Directors from among their own

number) acts as primus inter pares.

The Directors are elected by the shareholders and regard

corporate governance and accountability to shareholders

as fundamental. They therefore place considerable em-

phasis on running the Company in the way they believe to

be best suited to the successful management of an invest-

ment trust on behalf of its shareholders.

Arrangements appropriate to an investment trust in re-

spect of corporate governance have been made by the

Board. The Board has considered the principles and rec-

ommendations of the AIC’s Code of Corporate Gover-

nance (the ‘‘AIC Code’’). The AIC Code addresses all the

principles set out in the UK Corporate Governance Code

issued by the Financial Reporting Council (the ‘‘UK

Code’’), as well as setting out additional principles and rec-

ommendations which are of specific relevance to invest-

ment trusts.

The Board considers that reporting against the principles

and recommendations of the AIC Code, which has been

endorsed by the Financial Reporting Council, provides

more relevant information to shareholders than if it had

adopted the UK Code.

The AIC Code can be obtained from the AIC’s website at

www.theaic.co.uk. It includes an explanation of how the

AIC Code adapts the principles and provisions set out in

the UK Code to make them relevant for investment com-

panies.

OMPLIANCE

The Company has complied throughout the year, and con-

tinues to comply, with all of the recommendations of the

AIC Code and the relevant provisions of the UK Code.

IRECTORS

All of the Directors are considered to be independent in

character and judgement and, in the opinion of the Board,

there are no relationships or conflicts of interest which are

likely to affect the judgement of any Director. Gordon

Neilly has served for more than nine years. However, the

Board subscribes to the view expressed within the AIC

Code that long-serving Directors should not be prevented

from forming part of an independent majority, and does

not consider that a Director’s length of tenure reduces her

or his ability to act independently.

Directors’ fees are determined within the limits set out in

the Company’s Articles of Association. The approval of

shareholders in a General Meeting is required to change

this limit.

Due date for

Date of Re-election/

Director Appointment election

Iain Ferguson

(Chairman) 1 December 2017 AGM 2022

Mandy Clements 18 September 2020 AGM 2022

Gordon Neilly 30 April 1997 AGM 2022

Paul Read 1 December 2017 AGM 2022

Robbie Robertson 18 September 2020 AGM 2022

Jean Sharp 21 July 2016 AGM 2022

Any new Directors appointed during the year must stand

for election at the first Annual General Meeting following

their appointment. All Directors retire annually and, where

appropriate, stand for re-election. There is no notice pe-

riod and no provision for compensation on early termina-

tion of appointment.

Individual Directors may, after having obtained the consent

of any other Director, seek independent professional advice

at the Company’s expense on any matter that concerns the

furtherance of their duties. Details of the Directors’ author-

ity in relation to the issue and buying back by the Company

of its shares can be found in the Directors’ Report. Similarly,

details of those persons with significant holdings in the

Company are set out in the Directors’ Report.

ONFLICTS OF INTEREST

The Companies Act 2006 requires that a Director of the

Company must avoid a situation in which he or she has, or

might have, an interest that conflicts, or may conflict, with

the interests of the Company. Each Director submits a list

of potential conflicts prior to each meeting. The other Di-

rectors consider these and recommend whether or not each

potential conflict should be authorised. No situation arose

during the year whereby an interest of a Director conflicted

with the interests of the Company.

CORPORATE GOVERNANCE

Page 35

ADDITIONAL REPORTS

MEETINGS

During the year there were five formal Board meetings,

each of which was attended by all of the Directors. There

were three Audit Committee meetings, two Remuneration

Committee meetings and a Nomination Committee meet-

ing held during the year. All of these meetings were at-

tended by all of the respective committee members.

Under the terms of the contracts with the AIFM and the

Investment Manager, the following matters have been ex-

pressly reserved to the Board: (a) the introduction of gear-

ing and gearing levels thereafter; (b) matters relating to share

issues and buybacks; (c) matters relating to shareholder

communication; (d) matters relating to the property at

28 Walker Street, Edinburgh; (e) investments in any new

asset classes not already represented in the portfolio; and (f)

such other matters as the Board may reasonably intimate

from time to time. However, the Board is required to engage

in active dialogue with the Investment Manager in relation

to the matters referred to at item (c) above.

The Board holds three of its meetings in Edinburgh and two

in London each year.

CORPORATE GOVERNANCE (CONTINUED)

VOTING POLICY

As an essential part of its approach to active ownership,

the Investment Manager exercises all votes in relation to

the Company’s investments, updating the Board regularly

on how votes have been cast. Following careful analysis of

each AGM item, the Investment Manager submits votes in

the direction which it believes best reflects the interests of

shareholders. The Investment Manager invests only in a se-

lect universe of stocks and, as such, is able to take a con-

sidered decision on all items for voting at investee

company AGMs.

OMMUNICATION WITH SHAREHOLDERS

The Board welcomes the views of shareholders and places

considerable importance on communications with them.

The Investment Manager reports back to the Board on

meetings with shareholders and the Chairman and other

Directors are available to meet shareholders if required.

The Annual General Meeting of the Company and pre-

sentations held in London provide a forum, both formal

and informal, for shareholders to meet and discuss issues

with the Board.

OMINATION COMMITTEE

The Nomination Committee, chaired by Iain Ferguson

and comprising Mr Ferguson, Mandy Clements, Paul

Read, Robbie Roberston and Jean Sharp, considers the ap-

pointment of new Directors. Although the Company does

not have a formal policy on diversity, consideration of

Board diversity forms part of the responsibilities of the

Nomination Committee. The Board believes in the benefits

of having a diverse range of skills and backgrounds, in-

cluding gender and length of service, on its board of Di-

rectors. All appointments will continue to be based on

merit. The Company is mindful of the diversity targets set

by the Parker Review and the recent amendments to the

Listing Rules in this regard. The current composition of

the Board meets the targets for gender diversity set by the

Hampton-Alexander Review. The Nomination Commit-

tee meets at least annually.

New Directors appointed to the Board are given an in-

duction meeting with the Company Secretary and are pro-

vided with all relevant information regarding the Company

and their duties as a Director. Thereafter, regular briefings

are provided on changes in regulatory requirements that

could affect the Company and the Directors. Professional

advisers report from time to time and Directors will, if nec-

essary, attend seminars covering relevant issues and devel-

opments.

ERFORMANCE REVIEW OF THE BOARD AND ITS COMMITTEES

In line with the recommendations of the AIC Code, during

the year the Board appointed Board Level Partners

(“BLP”) to carry out a comprehensive review of the Board

and Audit, Remuneration and Nomination Committees.

The following diagram highlights various matters considered by the Board during the past year:

May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Annual

General

Meeting

Semi-Annual

Investment

eport

Semi-Annual

nvestment

Report

Internal

ontrols

Review

of Directors’

Fees

Review

Appointment

of Investment

Manager

Annual Review

of Risk

Registers

Consider

4th Interim

Dividend

Consider

3rd Interim

ividend

Approval

of the Interim

Report

Strategy

Session

Board and

Committee

Evaluation

Corporate

Governance

Review

Consider

2nd Interim

ividend

Approval

of the

Annual Report

Consider

1st Interim

ividend

Edinburgh Edinburgh

ondon

dinburgh

ondon

Page 36

CORPORATE GOVERNANCE (CONTINUED)

BLP is an independent external evaluator, with no other

connections with the Company or individual Directors.

The process included confidential unattributable one-to-

one interviews between the external evaluator and each Di-

rector, as well as representatives of Troy and Juniper

Partners. The findings of the external evaluation were dis-

cussed with the Chairman and were then delivered in a de-

tailed report to the Board. BLP representatives discussed

their findings with the Board at the May 2022 Board meet-

ing. In addition, BLP conducted reviews of each individual

board director, presenting these reports to the Chairman.

The appraisal of the Chairman was covered as part of this

process; BLP presented its report on the Chairman to Paul

Read as Senior Independent Director.

The detailed review of the Board and its Committees did

not highlight any material weaknesses or concerns, but it

did identify some areas for focus in 2022-2023 and beyond.

These include rebuilding board relationships after the

lengthy period of remote working, Board succession and

composition, the ongoing development of shareholder

communications, and monitoring the Company’s relation-

ships with its key service providers, Troy and Juniper Part-

ners.

The appraisal concluded that the Board and its Commit-

tees oversee the management of the Company effectively

and have the skills and expertise to safeguard shareholders’

interests. All Directors and Committee Members continue

to demonstrate commitment to their roles, and, drawing

on diverse but complementary skills and experience, pro-

vide constructive challenge to the Investment Manager. All

Directors and Committee Members provide valuable con-

tributions to the deliberations of the Board and its Com-

mittees, commensurate with their experience and

responsibilities, so contributing to the Company’s long-

term success.

DDITIONAL INFORMATION

The Company’s Articles of Association may be amended

only by a special resolution passed at a General Meeting of

shareholders.

By Order of the Board

Juniper Partners Limited

Company Secretary

28 Walker Street

Edinburgh EH3 7HR

8 June 2022

Page 37

ADDITIONAL REPORTS

REPORT OF THE AUDIT COMMITTEE

AUDIT COMMITTEE

The Audit Committee, chaired by Jean Sharp and com-

prising Ms Sharp, Mandy Clements, Paul Read and Rob-

bie Roberston, meets at least twice yearly to coincide with

the annual and interim reporting cycle. The principal rôle

of the Audit Committee is to review the annual and interim

financial statements, the Accounting Policies applied

therein and to ensure compliance with financial and regu-

latory reporting requirements. The Audit Committee dis-

cusses and agrees the scope of the audit plan for the year

ahead and the Auditors’ Report on their findings at the

conclusion of the audit. The terms of reference of the Audit

Committee clearly define the Committee’s responsibilities.

These terms are reviewed annually and are available for in-

spection on the Company’s website.

The Audit Committee also reviews the system of internal

controls, the terms of appointment of the Auditors (in-

cluding their remuneration), the objectivity of the Audi-

tors and the terms under which they are appointed to

perform non-audit services. The Audit Committee also re-

ceived a report from the Auditors identifying to its satis-

faction how their independence and objectivity is

maintained when providing these non-audit services. There

were no such fees or services for the year ended 30 April

2022 (2021: £nil). The Board considers that the provision

of such services at this level is cost effective and does not

impair the independence of PricewaterhouseCoopers

LLP (“PwC”).

The Audit Committee assessed the effectiveness of the

audit, the quality of the team and advice received from

them through reviewing interaction with the Auditors, re-

ports received from them and discussion with manage-

ment. The Audit Committee is satisfied with the

effectiveness of the work provided by PwC and that PwC

remain objective and independent.

At the request of the Board, the Audit Committee consid-

ered whether the 2022 Annual Report was fair, balanced

and understandable and whether it provided the necessary

information for shareholders to assess the Company’s per-

formance, business model and strategy. The Audit Com-

mittee is satisfied that the Annual Report is fair, balanced

and understandable. The Audit Committee reached this

conclusion based on a detailed review of the financial state-

ments and subsequent discussion on whether these are fair,

balanced and understandable by all members of the

Committee.

UDIT

The Company confirms that it complied with the provi-

sions of The Statutory Audit Services for Large Compa-

nies Market Investigation (Mandatory Use of Competitive

Tender Processes and Audit Committee Responsibilities)

Order 2014 during the financial year ended 30 April 2022.

Following a formal tender process, the Company’s external

Auditors, PwC, were appointed on 19 July 2018. The Audit

Engagement Partner rotates every five years in accordance

with ethical guidelines and 2022 is the fourth year for the

current partner.

NTERNAL CONTROLS

The Board is responsible for the Company’s system of in-

ternal controls and for reviewing its effectiveness. The

Board has therefore established an ongoing process de-

signed to meet the particular needs of the Company in

managing the risks to which it is exposed, consistent with

the internal control guidance issued by the Financial Re-

porting Council. The process relies principally on a risk-

based system of internal control whereby a test matrix is

created that identifies the key functions carried out by the

Company and other service providers, the individual ac-

tivities undertaken within those functions, the risks asso-

ciated with each activity and the controls employed to

minimise those risks.

A formal annual review of the Company’s risk-based sys-

tem of internal controls is carried out by the Board and in-

cludes consideration of internal control reports issued by

the Investment Manager and other service providers.

Such review procedures have been in place throughout the

financial year and up to the date of approval of the Annual

Report, and the Board is satisfied with their effectiveness.

These procedures are designed to manage, rather than

eliminate, risk and, by their nature, can provide only rea-

sonable, not absolute, assurance against material misstate-

ment or loss. At each Board Meeting the Board reviews

the Company’s activities since the previous Board Meet-

ing to ensure that the Investment Manager adheres to the

agreed investment policy and approved investment guide-

lines and, if necessary, the Board approves changes to the

guidelines.

Juniper Partners acts as the Company’s AIFM for the pur-

poses of the AIFM Directive and provides secretarial and

administrative services to the Company.

The Company does not have an internal audit function as

the Audit Committee believes that the Company’s straight-

forward structure does not warrant such a function. This

is reviewed by the Committee annually.

IGNIFICANT ACCOUNTING MATTERS

The significant issue considered by the Audit Committee

during the year in relation to the financial statements of

the Company was the existence and valuation of invest-

ments. The AIFM regularly reconciles the portfolio hold-

ings to confirmations from the Company’s Custodian and

carries out testing of the prices obtained from the inde-

pendent pricing source. Based on confirmation from the

AIFM that these procedures have operated correctly at

30 April 2022 and based on conversations with and written

reporting from the Depositary, the Committee is satisfied

that there is no material misstatement in the context of the

Annual Report.

Page 38

REPORT OF THE AUDIT COMMITTEE (CONTINUED)

COMMITTEE PERFORMANCE REVIEW

The activities of the Audit Committee were considered as

part of the externally facilitated board appraisal process

completed in accordance with standard governance

arrangements as summarised on pages 35 and 36. A full

evaluation was undertaken on the effectiveness, roles and

responsibilities of the Committee in accordance with the

Financial Reporting Council’s current guidance. The eval-

uation found that the Committee functioned well, with the

right balance of membership, skills and experience.

Jean Sharp

Director

8 June 2022

Page 39

ADDITIONAL REPORTS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

PERSONAL ASSETS TRUST PLC

Report on the audit of the financial statements

Opinion

In our opinion, Personal Assets Trust plc’s financial statements:

• give a true and fair view of the state of the Company’s affairs as at 30 April 2022 and of its return and cash flows for

the year then ended;

• have been properly prepared in accordance with UK-adopted international accounting standards; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report, which comprise: the Statement of Financial

Position as at 30 April 2022; the Income Statement, the Statement of Changes in Equity and the Cash Flow Statement for the

year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

Our opinion is consistent with our reporting to the Audit Committee.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.

Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial

statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

Independence

We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the

financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and

we have fulfilled our other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were

not provided.

We have provided no non-audit services to the Company in the period under audit.

Our audit approach

Overview

Audit scope

• Overall Materiality: £18.1m, based on 1% of Net Assets.

• The Company is a standalone Investment Trust Company and engages Troy Asset Management Limited (the

“Manager”) to manage its assets.

• We conducted our audit of the financial statements using information from Juniper Partners Limited (the

“Administrator”) and J.P. Morgan Chase Bank N.A. (the “Custodian”) to whom the Manager has, with the consent

of the Directors, delegated the provision of certain administrative functions.

• We tailored the scope of our audit taking into account the types of investments within the Company, the involvement of

the third parties referred to above, the accounting processes and controls, and the industry in which the Company operates.

• We obtained an understanding of the control environment in place at Juniper Partners Limited, and adopted a fully

substantive testing approach using reports obtained from the Administrator.

In planning our audit, we made enquiries of the Directors to understand the extent of the potential impact of climate

change on the Company’s financial statements.

The Directors and Investment Manager concluded that the impact on the measurement and disclosures within the

financial statements is not material because the Company's investment portfolio is largely made up of level 1 quoted

securities which are valued at fair value based on market prices. We found this to be consistent with our understanding

of the Company's investment activities.

We also considered the consistency of the climate change disclosures included in the Strategic Report with the financial

statements and our knowledge from our audit.

Key audit matters

• Valuation and existence of investments

• Income from investments

Materiality

• Overall materiality: £18.1m (2021: £15.0m) based on 1% of Net Assets.

• Performance materiality: £13.6m (2021: £11.3m).

Page 40

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

PERSONAL ASSETS TRUST PLC (CONTINUED)

The scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial

statements.

Key audit matters

Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit

of the financial statements of the current period and include the most significant assessed risks of material misstatement

(whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit

strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any

comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

This is not a complete list of all risks identified by our audit.

Consideration of the impacts of COVID-19, which was a key audit matter last year, is no longer included because of

reduced uncertainty of the impact of COVID-19 in the current year as markets and economies continue to recover.

Otherwise, the key audit matters below are consistent with last year.

Key audit matter How our audit addressed the key audit matter

Valuation and existence of investments

We tested the valuation of the equity investments,

fixed interest investments and gold bullion by

agreeing the prices used in the valuation to

independent third-party sources.

No material misstatements were identified from this

testing.

We tested the existence of the investment portfolio by

agreeing investment holdings to an independent

custodian confirmation. Additionally, we performed

a physical verification of the Gold Bullion holding

during the period.

No material misstatements were identified from this

testing.

Income from investments

We assessed the accounting policy for income

recognition for compliance with accounting

standards and the AIC SORP and performed testing

to check that income had been accounted for in

accordance with this stated accounting policy.

We found that the accounting policies implemented

were in accordance with accounting standards and

the AIC SORP, and that income from investments

has been accounted for in accordance with the stated

accounting policy.

We understood and assessed the design and

implementation of key controls surrounding income

recognition.

The gains and losses on investments held at fair value

comprise realised and unrealised gains and losses. For

unrealised gains and losses, we tested the valuation

of the portfolio at the year-end (see Valuation and

existence Key Audit Matter), together with testing the

reconciliation of opening and closing investments and

agreeing the year end holdings to independent

confirmation. For realised gains and losses, we tested

a sample of disposal proceeds by agreeing the

proceeds to bank statements and we re-performed the

calculation of a sample of realised gains and losses.

In addition, we tested dividend receipts by agreeing

the dividend rates from all investments to

independent third-party sources.

Refer to the Audit Committee Report, the Accounting Policies and

Notes to the Accounts.

ISAs (UK) presume there is a risk of fraud in income recognition. We

considered this risk to specifically relate to the risk of overstating

investment gains and the misclassification of dividend income as

capital rather than revenue due to the pressure management may feel

to achieve capital growth in line with the objective of the Company.

We focused on the valuation of investments with respect to gains on

investments and the accuracy and occurrence of dividend income

recognition and its presentation in the Income Statement as set out

in the requirements of The Association of Investment Companies’

Statement of Recommended Practice (the “AIC SORP”)

Refer to the Audit Committee Report, the Accounting Policies and

Notes to the Accounts.

The investment portfolio at the year end principally comprised equity

investments, fixed interest investments and gold bullion valued at

£1,791 million.

We focused on the valuation and existence of investments because

investments represent the principal element of the net asset value as

disclosed on the Balance Sheet in the financial statements.

Page 41

ADDITIONAL REPORTS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

PERSONAL ASSETS TRUST PLC (CONTINUED)

Key audit matter How our audit addressed the key audit matter

Income from investments (continued) We tested the allocation and presentation of dividend

income, including special dividends, between

income and capital by agreeing treatments to third-

party sources.

To test for completeness of dividend income, we

tested that the appropriate dividends had been

received in the year by reference to independent

data of dividends declared for all dividends during

the year.

To test the accuracy of the indexation recognised

during the period, we obtained a detailed

transactional breakdown and recalculated the

indexation adjustment with reference to relevant

index data obtained independently.

The amortisation recognised was tested by validating

data inputs and recalculating the expected

adjustment for a sample of holdings.

We also tested fixed interest income by recalculating

the coupon interest and amortisation, using the

opening and closing portfolios and coupon rates

and maturity dates. We also agreed a sample of

coupon rates and maturity dates to independent

third-party sources.

To test for completeness of fixed interest income, for

a sample of investment holdings in the portfolio, we

tested that all fixed interest income earned by

investment holdings had been recorded.

We tested occurrence of fixed interest income by

testing that all fixed interest income recorded in the

year had been earned and by racing a sample of fixed

interest income received to bank statements.

No material misstatements were identified from

this testing.

How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial

statements as a whole, taking into account the structure of the Company, the accounting processes and controls, and the

industry in which it operates.

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial

statements.

Materiality

The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for

materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature,

timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating

the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Overall Company materiality £18.1m (2021: £15.0m).

How we determined it 1% of Net Assets

Rationale for benchmark applied We have applied this benchmark, which is a generally accepted auditing practice

for investment trust audits.

We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected

and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the

scope of our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures,

for example in determining sample sizes. Our performance materiality was 75% (2021: 75%) of overall materiality,

amounting to £13.6m (2021: £11.3m) for the Company financial statements.

Page 42

Materiality (continued)

In determining the performance materiality, we considered a number of factors – the history of misstatements, risk

assessment and aggregation risk and the effectiveness of controls – and concluded that an amount at the upper end of our

normal range was appropriate.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above

£907,000 (2021: £752,000) as well as misstatements below that amount that, in our view, warranted reporting for qualitative

reasons.

Conclusions relating to going concern

Our evaluation of the Directors’ assessment of the Company’s ability to continue to adopt the going concern basis of

accounting included:

• evaluating the Directors’ updated risk assessment and considering whether it addressed relevant threats, including

those presented by COVID-19 and heightened geopolitical tensions;

• evaluating the Directors’ assessment of potential operational impacts, considering their consistency with other available

information and our understanding of the business and assessed the potential impact on the financial statements;

• reviewing the Directors’ assessment of the Company’s financial position in the context of its ability to meet future

expected operating expenses, their assessment of liquidity as well as their review of the operational resilience of the

Company and oversight of key third-party service providers; and

• assessing the implication of significant reductions in NAV as a result of market performance on the ongoing ability

of the Company to operate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions

that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for

a period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting

in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the

Company’s ability to continue as a going concern.

In relation to the Directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing

material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the

Directors considered it appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant

sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our

auditors’ report thereon. The Directors are responsible for the other information. Our opinion on the financial statements

does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent

otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency

or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of

the financial statements or a material misstatement of the other information. If, based on the work we have performed,

we conclude that there is a material misstatement of this other information, we are required to report that fact. We have

nothing to report based on these responsibilities.

With respect to the Strategic report and the Director’s Report, we also considered whether the disclosures required by the

UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain

opinions and matters as described below.

Strategic report and the Directors' Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and

the Director’s Report for the year ended 30 April 2022 is consistent with the financial statements and has been prepared

in accordance with applicable legal requirements.

In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we

did not identify any material misstatements in the Strategic report and the Director’s Report.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

PERSONAL ASSETS TRUST PLC (CONTINUED)

Page 43

ADDITIONAL REPORTS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

PERSONAL ASSETS TRUST PLC (CONTINUED)

Directors’ Remuneration

In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance

with the Companies Act 2006.

Corporate governance statement

The Listing Rules require us to review the Directors’ statements in relation to going concern, longer-term viability and

that part of the corporate governance statement relating to the Company’s compliance with the provisions of the UK

Corporate Governance Code specified for our review. Our additional responsibilities with respect to the corporate

governance statement as other information are described in the Reporting on other information section of this report.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate

governance statement is materially consistent with the financial statements and our knowledge obtained during the audit,

and we have nothing material to add or draw attention to in relation to:

• The Directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;

• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify

emerging risks and an explanation of how these are being managed or mitigated;

• The Directors’ statement in the financial statements about whether they considered it appropriate to adopt the going

concern basis of accounting in preparing them, and their identification of any material uncertainties to the Company’s

ability to continue to do so over a period of at least twelve months from the date of approval of the financial statements;

• The Directors’ explanation as to their assessment of the Company’s prospects, the period this assessment covers and

why the period is appropriate; and

• The Directors’ statement as to whether they have a reasonable expectation that the Company will be able to continue

in operation and meet its liabilities as they fall due over the period of its assessment, including any related disclosures

drawing attention to any necessary qualifications or assumptions.

Our review of the Directors’ statement regarding the longer-term viability of the group was substantially less in scope

than an audit and only consisted of making inquiries and considering the Directors’ process supporting their statement;

checking that the statement is in alignment with the relevant provisions of the UK Corporate Governance Code; and

considering whether the statement is consistent with the financial statements and our knowledge and understanding of

the Company and its environment obtained in the course of the audit.

In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements

of the corporate governance statement is materially consistent with the financial statements and our knowledge obtained

during the audit:

• The Directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable,

and provides the information necessary for the members to assess the Company’s position, performance, business

model and strategy;

• The section of the Annual Report that describes the review of effectiveness of risk management and internal control

systems; and

• The section of the Annual Report describing the work of the Audit Committee.

We have nothing to report in respect of our responsibility to report when the Directors’ statement relating to the

Company’s compliance with the Code does not properly disclose a departure from a relevant provision of the Code

specified under the Listing Rules for review by the auditors.

Responsibilities for the financial statements and the audit

Responsibilities of the Directors for the financial statements

As explained more fully in the Responsibility Statement, the Directors are responsible for the preparation of the financial

statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The

Directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting

unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to

do so.

Page 44

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

PERSONAL ASSETS TRUST PLC (CONTINUED)

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of

users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line

with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The

extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with

laws and regulations related to breaches of section 1158 of the Corporation Tax Act 2010, and we considered the extent

to which non-compliance might have a material effect on the financial statements. We also considered those laws and

regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated

management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of

override of controls), and determined that the principal risks were related to posting inappropriate journal entries to

increase the Company’s net asset value position. Audit procedures performed by the engagement team included:

• Discussions with the Directors, the investment manager and the administrator including consideration of known or

suspected instances of non-compliance with laws and regulations and fraud;

• understanding the controls implemented by Troy Asset Management Limited (the “Manager”), J.P. Morgan Chase

Bank N.A. (the “Custodian”), and J.P. Morgan Europe Limited (the “Depositary”) designed to prevent and detect

irregularities;

• assessment of the Company’s compliance with the requirements of section 1158 of the Corporation Tax Act 2010,

including recalculation of numerical aspects of the eligibility conditions;

• identifying and testing journal entries, in particular year end journal entries posted by the administrator during the

preparation of the financial statements;

• reviewing relevant meeting minutes, including those of the Audit Committee; and

• designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of

non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial

statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting

one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional

misrepresentations, or through collusion.

Our audit testing might include testing complete populations of certain transactions and balances, possibly using data

auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing

complete populations. We will often seek to target particular items for testing based on their size or risk characteristics.

In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample

is selected.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report. In our engagement letter, we

also agreed to describe our audit approach, including communicating key audit matters.

Use of this report

This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance

with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions,

accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose

hands it may come save where expressly agreed by our prior consent in writing.

Page 45

ADDITIONAL REPORTS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

PERSONAL ASSETS TRUST PLC (CONTINUED)

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not obtained all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been

received from branches not visited by us; or

• certain disclosures of Directors’ remuneration specified by law are not made; or

• the financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with

the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Appointment

Following the recommendation of the Audit Committee, we were appointed by the members on 19 July 2018 to audit the

financial statements for the year ended 30 April 2019 and subsequent financial periods. The period of total uninterrupted

engagement is 4 years, covering the years ended 30 April 2019 to 30 April 2022.

Allan McGrath (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

Edinburgh

8 June 2022

Page 46

Notice is hereby given that the forty-first Annual

General Meeting (‘AGM’) of Personal Assets Trust

Public Limited Company will be held at The Kimpton

Charlotte Square Hotel, Edinburgh EH2 4HQ on

Thursday, 14 July 2022 at 12 noon.

Shareholders will be asked to consider, and, if thought

fit, pass resolutions 1 to 13 which will be proposed at

ordinary resolutions, and resolutions 14 to 16 which

will be proposed as special resolutions.

Ordinary Business:

1. That the Report and Accounts for the year to

30 April 2022 be received.

2. That the Directors’ Remuneration Report for the

year to 30 April 2022 be approved.

3. That the Dividend Policy of the Company as set

out in the Annual Report be approved.

4. That Iain Ferguson, who retires from office

annually, be re-elected as a Director.

5. That Gordon Neilly, who retires from office

annually, be re-elected as a Director.

6. That Paul Read, who retires from office annually,

be re-elected as a Director.

7. That Jean Sharp, who retires from office annually,

be re-elected as a Director.

8. That Mandy Clements, who retires from office

annually, be re-elected as a Director.

9. That Robbie Robertson, who retires from office

annually, be re-elected as a Director.

10. That PricewaterhouseCoopers LLP be

reappointed as Auditors and that the Directors be

authorised to determine their remuneration.

11. That the maximum aggregate sum available for

Directors’ fees for their services in accordance with

the Articles of Association shall be £275,000 per

annum.

Special Business:

12. Sub-division of Ordinary shares

That each of the issued ordinary shares of £12.50

pence each in the capital of the Company be and

is hereby sub-divided into one hundred ordinary

shares of 12.50 pence each (the ‘New Ordinary

Shares’) having the rights and being subject to the

restrictions and obligations set out in the articles of

association of the Company, provided that such

sub-division shall be conditional on, and shall take

effect on, the New Ordinary Shares being admitted

to the Official List of the Financial Conduct

Authority and to trading on the main market of

the London Stock Exchange, which is expected to

be occur at 8.00 a.m. on 1 August 2022 (or such

other time and/or date as the Directors may in

their absolute discretion determine).

13. Authority to allot Ordinary shares

That, in substitution for any existing authority, but

without prejudice to the exercise of any such

authority prior to the date hereof, the Directors of

the Company be and they are hereby generally and

unconditionally authorised in accordance with

Section 551 of the Companies Act 2006 (the ‘Act’)

to exercise all the powers of the Company to allot

shares in the Company and to grant rights to

subscribe for or to convert any security into shares

in the Company (‘Securities’) provided that such

authority shall be limited to the allotment of

shares and the grant of rights in respect of shares

with an aggregate nominal value of up to

£9,379,197.50 (being approximately 20 per cent. of

the nominal value of the issued share capital of the

Company as at 7 June 2022), such authority to

expire at the conclusion of the next Annual

General Meeting of the Company after the passing

of this resolution or on the expiry of 15 months

from the passing of this resolution, whichever is

the earlier, unless previously revoked, varied or

extended by the Company in a general meeting,

save that the Company may at any time prior to

the expiry of this authority make an offer or enter

into an agreement which would or might require

Securities to be allotted or granted after the expiry

of such authority and the Directors shall be

entitled to allot or grant Securities in pursuance of

such an offer or agreement as if such authority had

not expired.

14. Disapplication of pre-emption rights

That, subject to the passing of Resolution 13 above

and in substitution for any existing power but

without prejudice to the exercise of any such power

prior to the date hereof, the Directors of the

Company be and they are hereby generally

empowered, pursuant to Section 570 and/or

Section 573 of the Companies Act 2006 (the ‘Act’),

to allot equity securities (within the meaning of

Section 560 of the Act), for cash pursuant to the

authority given by Resolution 13 above or by way

of a sale of treasury shares for cash as if Section

561(1) of the Act did not apply to any such

allotment of equity securities, provided that this

power:

(a) expires at the conclusion of the next Annual

General Meeting of the Company after the

passing of this resolution or on the expiry of

15 months from the passing of this resolution,

whichever is the earlier, save that the Company

may, before such expiry, make an offer or

NOTICE OF ANNUAL GENERAL MEETING

Page 47

AGM

NOTICE OF ANNUAL GENERAL MEETING (CONTINUED)

agreement which would or might require

equity securities to be allotted after such

expiry and the Directors may allot equity

securities or sell treasury shares in pursuance

of any such offer or agreement as if the power

conferred hereby had not expired; and

(b) shall be limited to the allotment of equity

securities up to an aggregate nominal value of

£9,379,197.50 (being approximately 20 per

cent. of the nominal value of the issued share

capital of the Company as at 7 June 2022).

15. Authority to repurchase Ordinary shares

That, in substitution for any existing authority but

without prejudice to the exercise of any such

authority prior to the date hereof, the Company

be and is hereby generally and unconditionally

authorised, pursuant to and in accordance with

Section 701 of the Companies Act 2006 (the ‘Act’),

to make market purchases (within the meaning of

Section 693(4) of the Act) of fully paid Ordinary

shares in the capital of the Company (‘Ordinary

shares’) (either for retention as Treasury shares for

future re-issue, resale or transfer or for

cancellation), provided that:

(a) the maximum aggregate number of Ordinary

shares hereby authorised to be purchased is

56,237,668 if Resolution 12 is approved and

becomes effective, otherwise 562,376 or if less,

the number representing 14.99 per cent. of the

issued Ordinary share capital of the Company

at the date of the passing of this resolution;

(b) the minimum price (excluding expenses)

which may be paid for each Ordinary share

shall be the nominal value of that share;

which may be paid for each Ordinary share

shall not be greater than the higher of:

(i) 105 per cent. above the average middle

market quotation on the London Stock

Exchange of an Ordinary share over the

five business days immediately preceding

the date of purchase; and

(ii) the higher of the last independent trade

and the highest current independent bid

on the London Stock Exchange; and

(d) unless previously varied, revoked or renewed

by the Company in a General Meeting, the

authority hereby conferred shall expire at the

conclusion of the Company’s next Annual

General Meeting or on the expiry of 15

months from the passing of this resolution,

whichever is the earlier, save that the Company

may, prior to such expiry, enter into a contract

to purchase Ordinary shares under such

authority which will or might be completed or

executed wholly or partly after the expiration

of such authority and may make a purchase

of Ordinary shares pursuant to any such

contract.

16. Notice of General Meetings

That a General Meeting of the Company other

than an Annual General Meeting may be called

on not less than 14 clear days’notice provided that

this authority shall expire at the conclusion of the

next Annual General Meeting of the Company.

By Order of the Board

Juniper Partners Limited

Company Secretary

28 Walker Street

Edinburgh EH3 7HR

8 June 2022

1. A shareholder who is entitled to attend, speak and vote at

the meeting is entitled to appoint one or more proxies to

attend, speak and vote on her or his behalf. Such proxy

need not also be a shareholder of the Company. If

appointing more than one proxy, each proxy must be

appointed to exercise rights attaching to different shares

held by the shareholder.

2. A proxy form for use by shareholders at the meeting is

enclosed with this document. Proxies must be lodged with

the Company’s registrar, Equiniti Limited, Aspect House,

Spencer Road, Lancing, West Sussex BN99 6DA, not less

than 48 hours (excluding non-working days) before the

time appointed for the meeting together with any power of

attorney or other authority (if any) under which it is signed.

Completion of the proxy form will not prevent a

shareholder from attending the meeting and voting in

person.

3. As an alternative to completing the hard copy proxy form

you can appoint a proxy electronically at

www.sharevote.co.uk. For an electronic proxy appointment

to be valid, your appointment must be received by the

Company’s registrar not less than 48 hours (excluding non-

working days) before the time of the meeting.

4. Only those shareholders having their names entered on the

Company’s share register not later than 6.30 pm on 12 July

2022 or, if the meeting is adjourned, 6.30 pm on the day

which is two days (excluding non-working days) prior to the

date of the adjourned meeting, shall be entitled to attend

and vote at the meeting in respect of the number of shares

registered in their name at that time. Changes to the entries

on the Company’s share register after that time shall be

disregarded in determining the rights of any shareholder to

attend, speak and vote at the meeting, notwithstanding any

provision in any enactment, the Articles of Association of

the Company or other instrument to the contrary.

Notes

Page 48

5. Any corporation which is a shareholder may appoint one

r more corporate representatives who may exercise on its

behalf all of its powers as a shareholder provided that such

corporate representatives do not do so in relation to the

same shares.

6. CREST members who wish to appoint a proxy or proxies

through the CREST electronic proxy appointment service

may do so for the meeting and any adjournment(s) thereof

by using the procedures described in the CREST Manual,

nd by logging on to the website www.euroclear.com.

CREST personal members or other CREST sponsored

members, and those CREST members who have appointed

a voting service provider(s), should refer to their CREST

ponsor or voting service provider(s), who will be able to

take the appropriate action on their behalf.

In order for a proxy appointment or instruction made using

the CREST service to be valid, the appropriate CREST

essage (a ‘‘CREST Proxy Instruction’’) must be properly

authenticated in accordance with Euroclear UK & Ireland

Limited’s specifications, and must contain the information

required for such instruction, as described in the CREST

Manual. The message, regardless of whether it constitutes

the appointment of a proxy or is an amendment to the

instruction given to a previously appointed proxy, must, in

order to be valid, be transmitted so as to be received by the

Company’s Registrar, Equiniti Limited (ID RA19), by no

later than 12 noon on 12 July 2022. No such message

received through the CREST network after this time will be

accepted. For this purpose, the time of receipt will be taken

to be the time (as determined by the timestamp applied to

the message by the CREST application host) from which

the Company’s Registrar is able to retrieve the message by

inquiry to CREST in the manner prescribed by CREST.

After this time any change of instructions to proxies

appointed through CREST should be communicated to the

appointee through other means.

CREST members and, where applicable, their CREST

sponsors or voting service providers should note that

Euroclear UK & Ireland Limited does not make available

special procedures in CREST for any particular messages.

Normal system timings and limitations will therefore apply

in relation to the input of CREST Proxy Instructions. It is

the responsibility of the CREST member concerned to take

(or, if the CREST member is a CREST personal member,

or sponsored member, or has appointed a voting service

provider(s), to procure that her or his CREST sponsor or

voting service provider(s) take(s)) such action as shall be

necessary to ensure that a message is transmitted by means

of the CREST system by any particular time. In this

connection, CREST members and, where applicable, their

CREST sponsors or voting system providers are referred,

in particular, to those sections of the CREST Manual

concerning practical limitations of the CREST system and

timings.

The Company may treat as invalid a CREST Proxy

Instruction in the circumstances set out in Regulation

35(5)(a) of the Uncertificated Securities Regulations 2001.

7. The right to appoint a proxy does not apply to persons

whose shares are held on their behalf by another person

and who have been nominated to receive communications

from the Company in accordance with Section 146 of the

Companies Act 2006 (‘‘Nominated Persons’’). Nominated

Persons may have a right under an agreement with the

member who holds the shares on their behalf to be

appointed (or to have someone else appointed) as a proxy.

Alternatively, if Nominated Persons do not have such a

right, or do not wish to exercise it, they may have a right

under such an agreement to give instructions to the person

holding the shares as to the exercise of voting rights. The

statement of the rights of members in relation to the

appointment of proxies in notes 1 and 2 above does not

apply to Nominated Persons. The rights described in these

notes can be exercised only by members of the Company.

8. If you are an institutional investor you may be able to

appoint a proxy electronically via the Proxymity platform,

a process which has been agreed by the Company and

pproved by the Registrar. For further information

regarding Proxymity, please go to www.proxymity.io. Your

proxy must be lodged by 12.00 noon on 12 July 2022 in

order to be considered valid. Before you can appoint a

roxy via this process you will need to have agreed to

Proxymity’s associated terms and conditions. It is

important that you read these carefully as you will be

bound by them and they will govern the electronic

ppointment of your proxy.

9. At 7 June 2022, the latest practicable date prior to

publication of this document, the Company’s issued share

capital comprised 3,751,679 Ordinary shares of £12.50 each

f which no Ordinary shares are held in Treasury.

Therefore, the total number of shares with voting rights in

the Company is 3,751,679.

10. Any person holding three per cent. of the total voting rights

n the Company who appoints a person other than the

Chairman as her or his proxy must ensure that both he or

she and such third party comply with their respective

disclosure obligations under the Disclosure Guidance and

Transparency Rules.

11. Information regarding the meeting, including information

required by Section 311A of the Companies Act 2006, is

available from the Company’s website, www.patplc.co.uk.

12. Under Section 319A of the Companies Act 2006, the

Company must answer any question relating to the

business being dealt with at the meeting put by a member

attending the meeting unless:

(a) answering the question would interfere unduly with

the preparation for the meeting or involve the

disclosure of confidential information;

(b) the answer has already been given on a website in

the form of an answer to a question; or

the good order of the meeting that the question be

answered.

13. Shareholders are advised that, unless otherwise stated, any

telephone number, website or e-mail address which may be

set out in this notice of meeting or in any related documents

(including the proxy form) is not to be used for the

purposes of serving information or documents on, or

otherwise communicating with, the Company for any

purposes other than those expressly stated.

14. The members of the Company may require the Company

(without payment) to publish, on its website, a statement

(which is also to be passed to the Auditors) setting out any

matter relating to the audit of the Company’s accounts,

including the Auditors’ report and the conduct of the audit.

The Company will be required to do so once it has received

such requests from either members representing at least five

per cent. of the total voting rights of the Company or at

least 100 members who have a relevant right to vote and

hold shares in the Company on which there has been paid

up an average sum per member of at least £100. Such

requests must be made in writing and must state the

sender’s full name and address and be sent to the

Company’s registered address at 28 Walker Street,

Edinburgh EH3 7HR.

15. The letters of appointment of the Directors will be available

for inspection at the registered office of the Company

during normal business hours on any weekday (Saturdays,

Sundays and public holidays excepted) from the date of this

notice and at the location of the meeting for at least 15

minutes prior to the meeting and during the meeting.

16. Members meeting the threshold requirements set out in the

Companies Act 2006 have the right (a) to require the

Company to give notice of any resolution which can

properly be, and is to be, moved at the meeting pursuant

to section 338 of the Companies Act 2006; and/or (b) to

require the Company to include a matter in the business to

be dealt with at the meeting, pursuant to section 338A of

the Companies Act 2006.

NOTICE OF ANNUAL GENERAL MEETING (CONTINUED)

Page 49

GLOSSARY

GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES

The European Securities and Markets Authority (‘ESMA’) has published guidelines on Alternative Performance

Measures (‘APM’). APMs are defined as being a ‘financial measure of historical or future financial performance,

financial position, or cash flows, other than a financial measure defined or specified in the applicable accounting

framework.’

The APMs where detailed below are used by the Board to assess the Company’s performance against a range

of criteria and are viewed as particularly relevant for an investment trust.

Alternative Investment Fund

An Alternative Investment Fund (‘AIF’) is a collective investment undertaking, including investment

compartments thereof, which (a) raises capital from a number of investors, with a view to investing it in

accordance with a defined investment policy for the benefit of those investors; and (b) does not require

authorisation under the UCITS regime. The Company is an AIF.

Alternative Investment Fund Manager

An Alternative Investment Fund Manager (‘AIFM’) is an entity that provides certain investment services,

including portfolio and risk management services. The Company has appointed Juniper Partners Limited as its

AIFM.

Benchmark Index

A Benchmark Index is a standard against which the performance of a security, investment company, or

investment manager can be measured. The Company’s uses the FTSE All-Share Index as a comparator for the

purpose of monitoring performance and risk, the composition of the FTSE All-Share Index has no influence

on investment decisions or the construction of the portfolio.

Discount or Premium (APM)

The amount, expressed as a percentage, by which the Company’s share price is less than (discount) or greater

than (premium) the net asset value per share of the Company.

30 April 2022 30 April 2021

Closing NAV per share (a) £491.95 £465.19

Closing share price (b) £503.00 £471.00

Premium c = (b – a) ÷ a (c) 2.2% 1.2%

Earnings per share

Earnings per share are calculated by dividing the net income return attributable to equity shareholders by the

weighted average number of shares in issue (excluding shares held in Treasury) during the year.

Middle Market Price

The middle market price is the mid-point between the buy and the sell prices of the Company’s shares.

Net Asset Value (‘NAV’) per share (APM)

The value of the Company’s net assets (total assets less total liabilities) divided by the number of shares in issue

(excluding shares held in Treasury).

Page 50

NAV/Share Price Total Return (APM)

NAV/Share price total return measures the increase/(decrease) in NAV per share/share price including any

dividends paid in the period, which are assumed to be reinvested at the time that the share price is quoted ex-

dividend.

2022 2021

Share Share

NAV price NAV price

Closing NAV per share/share price (a) £491.95 £503.00 £465.19 £471.00

Dividend adjustment factor

†

(b) 1.01274 1.01129 1.00910 1.01585

Adjusted closing NAV per share/share price (c=a x b) £498.22 £508.68 £469.42 £478.47

Opening NAV per share/share price (d) £465.19 £471.00 £426.36 £433.00

Total Return (c ÷ d) -1 7.1% 8.0% 10.1% 10.5%

†

Based on total dividends paid for the year ended 30 April 2022 of £5.60 per share (2021: £5.60).

Ongoing Charges Ratio (APM)

The sum of the management fee and all other administrative expenses expressed as a percentage of the average

daily net assets during the year.

30 April 2022 30 April 2021

£’000 £’000

Management fee 9,684 8,106

Other administrative expenses 1,627 1,586

Total (a) 11,311 9,692

Average daily net assets (b) 1,678,569 1,320,258

Ongoing charges c = (a ÷ b) x 100 (c) 0.67% 0.73%

Treasury shares

Ordinary shares of the Company that have been repurchased by the Company and not cancelled but held in

Treasury. These shares do not pay dividends, have no voting rights, and are excluded from the NAV per share

calculation.

GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES

(CONTINUED)

CORPORATE INFORMATION

BOARD OF DIRECTORS

Iain Ferguson CBE (Chairman)

Mandy Clements

Gordon Neilly

Paul Read

Robbie Robertson

Jean Sharp

REGISTERED OFFICE

28 Walker Street

Edinburgh EH3 7HR

Telephone: 0131 378 0500

COMPANY SECRETARY

Juniper Partners Limited

28 Walker Street

Edinburgh EH3 7HR

Telephone: 0131 378 0500

ALTERNATIVE INVESTMENT FUND MANAGER

Juniper Partners Limited

28 Walker Street

Edinburgh EH3 7HR

INVESTMENT MANAGER

Troy Asset Management Limited

33 Davies Street

London W1K 4BP

www.taml.co.uk

CUSTODIAN

J.P. Morgan Chase Bank N.A.

25 Bank Street

Canary Wharf

London E14 5JP

DEPOSITARY

J.P. Morgan Europe Limited

25 Bank Street

Canary Wharf

London E14 5JP

OLICITOR

Dickson Minto WS

16 Charlotte Square

Edinburgh EH2 4DF

DATA PROTECTION

The Company is committed to ensuring the

privacy of any personal data provided to it.

Further details of the Company’s privacy

policy can be found on the Company’s

website www.patplc.co.uk

SHAREHOLDER INFORMATION

Website: www.patplc.co.uk

Telephone: 0131 378 0500

REGISTRAR

Equiniti Limited

Aspect House

Spencer Road

Lancing

West Sussex BN99 6DA

Telephone: 0371 384 2459

STOCKBROKER

J.P. Morgan Cazenove

25 Bank Street

Canary Wharf

London E14 5JP

INDEPENDENT AUDITOR

PricewaterhouseCoopers LLP

Atria One

144 Morrison Street

Edinburgh EH3 8EX

IDENTIFICATION CODES

SEDOL: 0682754

ISIN: GB0006827546

Bloomberg: PNL LN

EPIC: PNL

GLOBAL INTERMEDIARY IDENTIFICATION

NUMBER (GIIN)

2W8KH5.99999.SL.826

EGAL ENTITY IDENTIFIER (LEI)

213800Z7ABM7RLQ41516

* Lines open 8:30am to 5:30pm, Monday to Friday. The overseas

helpline number is +44 (0)121 415 7047.

CORPORATE INFORMATION

Page 51

Personal Assets Trust plc, 28 Walker Street, Edinburgh EH3 7HR.

Shareholder Telephone: 0131 378 0500. Website: www.patplc.co.uk