Personal Assets not now so personal

I came across Personal Assets (PNL), an Edinburgh-based investment trust, about forty years ago. It was then managed by its founder a chartered accountant Ian Rushbrook who was also a successful horserace gambler. (But I have always regarded stock market investment as gambling and the racecourse is a terrific training ground.) Ian died about thirty years ago and as a result the management of this considerably expanded trust was taken over by Sebastian Lyon of Troy Asset Management, named after Lord Weinstock's Troy which won the Derby.

Sebastian was asked why the fee charged by Troy for management of PNL was so high given that Troy hardly ever dealt. To which Sebastian replied that he was paid to worry. The evidence has accumulated over the years that Sebastian has proved a wise worrier.

The difficulty is that the private investor should now be looking at investment trusts which are quoted at a substantial discount to their underlying net asset value. PNL does not qualify.

Two brokers in London, neither of whom are known to me personally, take investment trusts seriously, and are Stifel and Peel Hunt. However, it would be a mistake to approach either of these firms with less than £250,000 cash. Do not expect fireworks. Any of the latter would be a cause for worry.