Troy's Lyon warns valuations are near pre-crisis peaks

Troy's Sebastian Lyon, manager of the £600m Personal Assets investment trust, has warned equity and bond valuations are approaching pre-crisis peaks, and bullish investors could get caught out if they fail to brace their portfolios for a market correction.

Writing to shareholders as Personal Assets reported its annual results for the year to 30 April, Lyon (pictured) said investors have become complacent if they believe equity markets can continue to build on their strong performance year-to-date. The trust reported an NAV return of 4.8% for the year, well below the FTSE All Share's 13.6% return, as Lyon's focus on preserving investor capital through downside protection proved out of favour in steep rising markets. "Financial memories are short. Valuations are now not dissimilar to those that prevailed at the previous peak, in the sum...