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

Athelney TrustAnnouncement

02/11/2022 08:00

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RNS Number : 0511F  Athelney Trust PLC  02 November 2022

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 207.0p at 31 October 2022.

Fund Manager's comment for October 2022

The broad UK market rose this month with the FTSE 250 index increasing by 4.2%
and the large cap FTSE 100 Index gaining 2.91% after investors reacted
positively to Mr Sunak's confirmation as the UK's new Prime Minister. The AIM
All-Share Index and the Small Cap Index did not respond in the same way,
declining by 0.03% and 0.43% respectively while the Fledgling Index declined
by 0.71%.  Long-term bonds, which were at the centre of a chaotic sell-off
last month that prompted emergency intervention from the Bank of England, have
recovered with the UK 30-year gilt yield at the time of writing at 3.57%.

The release of the Governments revised fiscal plans has been delayed by more
than two weeks to November 17th amid reports that officials are considering
bigger spending cuts and tax hikes to fill a massive fiscal hole threatening
the country's economic growth.

Recent manufacturing and services PMI survey data reflected a larger than
expected fall in October, with the manufacturing PMI dropping to 45.8 and the
services PMI to 47.5. Average prices charged by private sector firms rose,
while the index reflecting business expectations for the year ahead, fell by
over six points, the largest decline in growth expectations since March 2020.
Optimism in both sectors hit a 2.5-year low, negatively affected by political
uncertainties, rising interest rates and persistently high inflation. However,
in the US, real GDP expanded by an annualized 2.6% during the third quarter
even though consumer confidence fell to 102.5 in October.

In an attempt to bring inflation back down to its 2% target, the European
Central Bank raised its key interest rate by 75 basis points to 1.75%,
bringing borrowing costs to their highest levels since 2009. Conversely, other
central bankers have decided to adopt a less harsh approach to interest rate
increases as there is evidence that the underlying drivers of inflation are
starting to ease.

This resulted in a 7.99% increase in the S&P 500 Index in October, while
the Dow Jones Industrial Average increased by a larger amount, up by a notable
13.95%.  The tech heavy Nasdaq Composite was up by a meagre 3.9% all of which
led to a 7.11% increase in the MSCI Index over the month

The Athelney portfolio, when compared to the UK indices performed well, up by
4.5% during the month and, after providing for expenses, the NAV reflected an
increase of 4.07%.  We made no changes to the portfolio, choosing to sit on
the sidelines during this period of extreme political instability with cash
comprised 11.6% 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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