# Personal Assets Trust Lags Inflation

> Personal Assets Trust's recent returns trail inflation amid market shifts.
- Title: Personal Assets Trust Lags Inflation · MoneyWeek | Shortify
- Summary: Personal Assets Trust's recent returns trail inflation amid market shifts. Personal Assets Trust's annual returns have fallen below inflation after five…
- Keywords: personal assets trust, inflation, lse, troy asset management, capital gearing, ruffer, nav, bond market, stock market, us s&p 500, jpmorgan, interest rates
- Source: MoneyWeek — https://moneyweek.com/investments/funds/personal-assets-trust-is-being-outstripped-by-inflation-can-it-make-a-comeback
- Published: 2026-10-04T07:00:00+00:00
- Read time: 1 min
- Topics: personal assets trust, inflation, lse, troy asset management, capital gearing, ruffer, nav, bond market, stock market, us s&p 500, jpmorgan, interest rates
## Personal Assets Trust Returns
Personal Assets Trust has returned 20.8% on a net asset value basis to the end of August, or 3.85% per year.
## Inflation Comparison
UK inflation has averaged 5% per year, or 27.5% over five years, while Personal Assets Trust's returns trail inflation.
## Trust Performance History
Personal Assets Trust has returned 62.7% on a net asset value basis over ten years, versus 41.7% inflation.
## Equity Allocation Shift
Personal Assets Trust's stock allocation has been relatively low during a booming stock market, with stocks making up about 40% of the portfolio.
## Tech Market Dominance
Big tech stocks account for 53% of the market's return in 2025, making it hard for Personal Assets Trust to keep up.
## Interest Rate Impact
Personal Assets Trust holds very short-dated bonds with an average duration of 2.5 years, but higher interest rates make bond returns difficult.
## Future Outlook
Investors need to watch Personal Assets Trust to see if it can recover its wealth protection promise amid rising inflation and interest rates.
## Key takeaway

Personal Assets Trust's annual returns have fallen below inflation after five years of strong performance, raising questions about its ability to protect wealth in rising interest rate environments.