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

Athelney TrustAnnouncement

04/04/2023 12:15

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RNS Number : 3475V  Athelney Trust PLC  04 April 2023

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 211.7p at 31 March 2023.

Fund Manager's comment for March 2023

The US economy expanded by an annualised rate of 2.6% in the final quarter in
2022, slightly below the initial estimates of 2.7%, which represents an
overall increase of 2.1% for year. The UK economy on the other hand only
managed a slight improvement of 0.1% in the fourth quarter of 2022 which was
also a stronger performance than previously anticipated and which meant that
the UK had avoided a recession.  While global economic activity has been
curbed to some extend by the central bank interest rate increases, the real
impact has been on regional banks in the US where inappropriate balance sheet
management has led to a renewed round of bank collapses. Fortunately for the
financial markets, wider contagion was prevented by the swift action on the
part of the Federal Reserve to ensure that the banking system remained stable
and it is unlikely that there will be a repeat of the global financial crisis
which followed the collapse of Lehman Brothers in 2008.

Earlier in the month, in his first full budget speech, the UK Chancellor set
out what was described as a budget for growth, aimed at achieving long-term,
sustainable economic growth for the UK. Its main objectives were to remove
barriers to employment, encourage business investment, and address labour
shortages in some industries.  Subsequent economic data that was
released, showed an unexpected increase in inflation for February, from 10.1%
to 10.4% which prompted the BoE to raise its baseline interest rate for the
11th consecutive time, from 4.0% to 4.25%. Clearly the elephant in the room
remains the eventual impact that the interest rate increases will have on the
property market where post COVID office occupancy rates still have not picked
up to any material extent, mortgage rates for homeowners that have remained
elevated and global credit markets which remain tight.

Equity markets on the other hand were volatile during the month, initially
declining in response to the regional bank failures in the US and then
recovering as the situation was ameliorated by the Federal Reserve. The net
result was that the Nasdaq Composite was up by 6.7%, the S&P500 improved
by 3.5% and the MSCI increased by 2.8%.  In the UK, the large cap segment of
the market bucked the global trend with the FTSE 100 down by 3.1% over the
month while the broader FTSE 250 Index declined even further, by 4.9%.
Smaller company valuations were under even more pressure with the AIM
All-Share Index declining by 5.8% and the Small Cap Index down by a slightly
lesser 5.3%.  By comparison, the Athelney portfolio with its focus on quality
growth companies was more resilient, declining by only 2.9% during the month
and, after providing for the 7.5p dividend and ongoing expenses, the NAV
declined by 6.5% to end the month at 211.7p.

During the month we reduced our exposure to the Target Healthcare REIT and
Liontrust Asset Management and used the cash to increase our holdings in
Paypoint, NWF and LondonMetric.  Our cash holding at month end comprised 2.7%
of the portfolio.

 

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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