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

Athelney TrustAnnouncement

06/06/2022 09:45

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RNS Number : 8201N  Athelney Trust PLC  06 June 2022

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 253.3p at 31 May 2022.

Fund Manager's comment for May 2022

Our portfolio declined by 2.47% over the month which was in line with the
decline in the small and mid-cap market. After providing for the expenses the
NAV declined by 2.58%.   This compares with the FTSE 100 which was up by
0.84%, while the broader FTSE 250 Index was down, declining by 1.40%. The AIM
All Share Index declined by 4.55% with the Small Cap Index performing slightly
better, declining by only 2.35%. The Fledgling Index was down by 1.58%.  As
mentioned in previous monthly comments, the FTSE 100 Index contains many
larger, older and more traditional commodity and energy-related stocks
including BP and Royal Dutch Shell which have been benefiting from firm prices
for oil and metals as a result of the ongoing war in Ukraine.

By comparison, the Global markets were also subdued, with the MSCI declining
by 0.16% over the month, while the S&P500 index showed a slight
improvement, up by 0.01%. After the massive decline in the US Mega Cap stocks
in April, the trend continued, with the tech heavy NASDAQ down by a further
2.05% during the month.

It is evident that the central banks have all come on board with the new
narrative that one should be swift when dealing with inflation, so as to avoid
the potential of a wage-price spiral developing. What should be remembered is
that central bank commentary guiding interest rate expectations higher is an
effective way to utilise a declining stock market to tighten financial
conditions, reduce wealth and lower consumer sentiment to dampen an overheated
situation.  This is evidenced by the bond markets pricing in higher future
interest rates, potentially reducing the need for as many actual interest rate
rises down the track.

 

The recent decline in equity prices has been almost entirely due to lower
price-to-earnings valuation multiples which have tracked the move in bond
yields, particularly real bond yields which exclude expected inflation.
Meanwhile, corporate earnings have generally also remained resilient, with the
exception of some consumer discretionary companies which are most sensitive to
rising cost pressures.  This is also evident in recent data where recent US
employment was solid with nonfarm payrolls rising 390,000 during the month.
Job gains were broad-based with the unemployment rate unchanged at 3.6%.

During the month we top sliced our holding in LXI Reit, using the proceeds to
add to our holding in Close Bros, Fevertree Drinks, Gamma Communications and
Treatt.  Cash currently comprises 8.5% 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/income-finder/dividend-heroes
(https://www.theaic.co.uk/income-finder/dividend-heroes)

Website

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

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