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

Athelney TrustAnnouncement

09/01/2023 10:15

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RNS Number : 0912M  Athelney Trust PLC  09 January 2023

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 219.4p at 31 December
2022.

Fund Manager's comment for December 2022

After strong gains in October and November, equity markets closed off a tough
year by declining in December with the Nasdaq Composite down by 8.73%, the
S&P500 posting a decline of 5.9% and the MSCI down by 4.34%.

 

On the economic front, the US housing market generally showed further signs of
deterioration and data on durable goods orders were generally weaker than
expected after backward revisions to previously released data are taken into
account. Nevertheless, data on consumer confidence shows that consumers are
less downbeat at present than they were a few months ago.  While many central
banks around the world have tightened monetary policy aggressively to fight
inflation, investors continued to balance the Central Banks' cautious stance
with the expectation that the pace of tightening would slow. However, the
speed of transmission of these rises through the economy depend upon the level
of indebtedness and the structural elements of the debt and mortgage rates. In
the U.K., household debt-to-income at 135% is higher than in the United States
and Eurozone with debt-to-income ratios at 100% and 97%, respectively.
However, when compared to Canada (7.2%), Australia (6.9%), U.S. (4.6%) and the
Eurozone (0.5%), household interest costs as a percent of disposable income
suggest that the, U.K. at 2.5%, may be slightly less vulnerable to rising
rates. Thus, even though the Halifax house price index in the UK increased 2%
year-on-year in December of 2022, easing from a 4.6% gain a month earlier and
the unseasonably warm weather across the UK and Europe in recent months curbed
demand and eased the stress of the country's energy systems, it could take
longer for monetary policy tightening in the U.K. to have a more meaningful
influence on inflation, as indicated in the wording associated with the recent
increase by the BOE of its Bank Rate by 50bps to 3.50%.

 

In the UK, the broad market performed better than its overseas counterparts
with the FTSE 250 Index declining by only 1.62%, the large cap FTSE 100 Index
down by 1.60% and the AIM All-Share Index also lower, declining by 2.03%.
The Fledgling Index was up by 0.08% and the Small Cap Index performed
similarly well, up by 0.22%.  By comparison, the Athelney portfolio declined
by only 0.25% during the month and, after providing for expenses, the NAV was
down by 0.68%.

We sold our holding in Abcam following the company's decision to move its
listing to the US and added Cerillion Plc to the portfolio.  We increased our
holding in Impax Asset Management, maintaining our cash at 11.5% 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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