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

Athelney TrustAnnouncement

02/08/2022 12:00

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RNS Number : 6430U  Athelney Trust PLC  02 August 2022

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 244.3p at 31 July 2022.

Fund Manager's comment for July 2022

Predications of a global recession have become more widespread as central
banks raise interest rates to curb rising inflation.  While most economists
are downgrading their estimates for global GDP growth, the eurozone economy
expanded by 0.7% in the quarter to June 2022, beating most market forecasts.
This represents the strongest growth in three quarters, prompted by the easing
of Covid restrictions and the commencement of the summer tourism season. The
energy crisis in Europe is far from over with Russia threatening to cut gas
supplies in the winter which could result in an overall decline in economic
output. Global inflation continues to rise with Eurozone CPI data for July
showing that inflation accelerated to yet another all-time high, and now sits
at 8.9% year-on-year.

In the U.K. inflation is currently at a 40-year high with price pressure
weighing on real incomes, consumer spending and overall growth, with the BoE
likely to continue hiking rates to tame inflation. Furthermore, in a recent
survey it was reported that a total of 113,700 businesses closed in the UK in
the most recent quarter (April to June 2022), with the most significant
increases in closures among retail businesses where closures rose by 40%. This
total figure was 8% higher than in the same period in 2021 and this figure is
the fifth quarter in a row where there have been more business closures than
creations.

 

However, the recent 7.9% improvement in the MSCI Index in July indicates that
the equity markets, which usually are a leading economic indicator, are
suggest that in 2023 the central banks are likely to begin lowering their
policy rates as inflation comes down and economic growth falters.  In the US,
the S&P 500 Index was up by 9.1%, reversing the massive decline in June.
The Dow Jones Industrial Average was only up by 6.7% with the major reversal
occurring in the technology stocks with the Nasdaq Composite up by a mammoth
12.4%.

 

The UK markets reflected this global trend with the FTSE 250 up by 8.03% while
at the other end of the spectrum, the Fledging Index was up by only 0.79%.
Our NAV was up by 4.54% which compares favourably with the Small Cap Index
which was up by 4.05%, the FTSE 100 which was up by 3.54% and the AIM All
Share Index which increased by 5.20%.

 

During the month we sold our position in LXI REIT following their merger with
Secure Income REIT which accords with our investment policy as it pertains to
major mergers and acquisitions. We added to our positions in Tritax BigBox and
AEW UK Reit.  Cash comprised 11.9% 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/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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