REG - Athelney Trust plc - Net Asset Value(s)

Athelney TrustAnnouncement

02/03/2022 11:45

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RNS Number : 3830D  Athelney Trust PLC  02 March 2022

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 270.1p at 28 February
2022.

Fund Manager's comment for February 2022

Russia's invasion of Ukraine this week rocked financial markets and it is
interesting to note that while Treasury yields plunged across the entire
curve, they recovered swiftly with the yields on the two-year and 10-year US
Treasury notes actually higher today than they were before the conflict
started. This would seem to indicate that since the United States and Western
allies are unlikely to deploy troops into the Ukraine, resorting instead to
applying sanctions on state-owned financial institutions, high net-worth
Russian individuals as well as Russian sovereign debt, the Federal Reserve's
and other central banker's policy tightening plans are unlikely to be changed
by these geopolitical developments.  While Russian equity prices have
collapsed by over 50%, the economic fallout on the global economy is likely to
be minimal.  The nominal GDP of the Ukraine was approximately $154 billion
and while the Russian economy is significantly larger at $1.7 trillion, it
accounts for less than 2% of global GDP.  U.S. exports to Ukraine and Russia
total only $2 billion and $6 billion respectively and EU exports to the two
countries is less than 1% of the total EU's GDP. The picture is very different
in terms of its inflationary impact since Russian production of crude oil
amounts to 10 million barrels per day or roughly 10% of global oil production
and it is the major supplier of natural gas to many countries in Western
Europe.

For the most part, CPI inflation across the major developed economies remains
elevated due to COVID as evidenced in recent data.  Here in the UK, the
January CPI report surprised to the upside with the Headline CPI edging up to
5.5% year-over-year and with core CPI at 4.4%.  Given this and the now
elevated inflationary expectations, we anticipate further, but gradual Bank of
England tightening with its concomitant impact on asset prices which is to put
pressure on the high PE valuations of the market and growth stocks in
particular.  This is evidenced in the MSCI declining by 2.7% during the
month, largely driven by similar declines in the broader US market where the
S&P500 index reported an overall decline of 3.1% and the tech heavy NASDAQ
declined by 3.4%. The UK markets responded similarly with the broad indicator,
the FTSE 250 Index closing down by 3.9% over the month as compared to the FTSE
100 which was down by 0.1%.  As mentioned previously, the FTSE 100 is home to
many larger, older and more traditional companies including BP, Royal Dutch
Shell and various utility companies.  The Fledgling Index was down by 3.8%
during the month with the Small Cap Index declining by 3.9%.  Of the various
indices, the AIM All Share Index showed the biggest decline of 5.0%.

During the month we sold our holding in Forterra and increased our exposure to
Paypoint and Fevertree following recent announcements by these companies.
Our portfolio declined by 4.0% during the month, in line with the overall
market.  This resulted in a 4.2% decline in the NAV after providing for the
expenses which remain under strict control.  Cash currently comprises 3.9% of
the portfolio at month end.

 

Fact Sheet

An accompanying fact sheet which includes the information above as well as
wider details on the portfolio can be found on the Fund's website
www.athelneytrust.co.uk (http://www.athelneytrust.co.uk) under "About" then
select "Latest Monthly Fact Sheet".

Background Information

Dr. Emmanuel (Manny) Pohl AM

Manny is Chairman and Chief Investment Officer of E C Pohl & Co ("ECP"),
an investment management company and has been a major shareholder in Athelney
trust for many years.

E C Pohl & co is licensed by the Australian Financial services (licence
no.421704).

www.ecpohl.com (http://www.ecpohl.com)

www.ecpam.com (http://ecpam.com/)

Manny Pohl and the ECP group has AUD2.7bn (£1.5 billion) under its management
including four listed investment companies, three listed in Australia and one
in the UK:

·    Flagship Investments (ASX code:FSI)

AUD95m https://flagshipinvestments.com.au (https://flagshipinvestments.com.au)

·    Barrack St Investments (ASX code: BST)

AUD37m www.barrackst.com (https://www.barrackst.com/)

·    Global Masters Fund Limited (ASX code: GFL)

AUD33m www.globalmastersfund.com.au (http://www.globalmastersfund.com.au)

·    Athelney Trust plc (LSE code: ATY)

GBP6m www.athelneytrust.co.uk (http://www.athelneytrust.co.uk)
 

Athelney Trust plc Investment Policy

 The investment objective of the Trust is to provide shareholders with
prospects of long-term capital growth with the risks inherent in small cap
investment minimised through a spread of holdings in quality small cap
companies that operate in various industries and sectors. The Fund Manager
also considers that it is important to maintain a progressive dividend record.

The assets of the Trust are allocated predominantly to companies with either a
full listing on the London Stock Exchange or a trading facility on AIM or
ISDX. The assets of the Trust have been allocated in two main ways: first, to
the shares of those companies which have grown steadily over the years in
terms of profits and dividends but, despite this progress, the market rating
is favourable when compared to future earnings and dividends; second, to those
companies whose shares are standing at a favourable level compared with the
value of land, buildings or cash in the balance sheet.

Athelney Trust was founded in 1994. In 1996 it was one of the ten pioneer
members of the Alternative Investment Market ("AIM"). In 2008 the shares
became fully listed on the main market of the London Stock Exchange. Athelney
Trust has a successful progressive dividend growth record and the dividend has
grown every year since 2004. According to the Association of Investment
Companies (AIC) Athelney Trust is one of only "22 investment companies that
have increased their dividend every year between 10 and 20 years - the next
generation of dividend heroes" (as at 20/03/2018). See link

https://www.theaic.co.uk/aic/news/press-releases/seven-investment-companies-join-the-next-generation-of-dividend-heroes
(https://www.theaic.co.uk/aic/news/press-releases/seven-investment-companies-join-the-next-generation-of-dividend-heroes)

Website

www.athelneytrust.co.uk (http://www.athelneytrust.co.uk)
 

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