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

Athelney TrustAnnouncement

06/11/2023 07:00

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RNS Number : 4101S  Athelney Trust PLC  04 November 2023

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 186.2p at 31 October 2023.

Fund Manager's comment for October 2023

In spite of the fact that the US economy expanded faster than expected in the
third quarter, the equity risk premium increased materially in October.  This
was driven by fears that the Israel-Gaza war could involve more countries in
the Middle East conflict and also disrupt the supply of oil as voluntary cuts
by Saudi Arabia and Russia are still in place until the end of the year.

 

Furthermore, this week's confidence surveys confirmed a soft growth
environment for Europe's major economies with the manufacturing PMI in
contraction territory for the 16th straight month and the new orders component
suggesting continued manufacturing weakness going forward. The news in the
United Kingdom was only marginally better with the October services PMI easing
further in September. This economic weakness and a substantial decline in
Eurozone inflation prompted the European Central Bank to hold interest rates
at 4%, bringing an end to its streak of 10 consecutive increases in borrowing
costs. Whilst UK inflation cooled more than expected last month, June's 7.9%
reading remains far higher than the Bank of England's 2% target and UK
business activity contracted in October for the third consecutive month.

 

In a recently published survey by Stifel, it was shown that there are
currently 35 investment trusts, investing primarily in shares, with a dividend
yield of 4% or higher. Of these, the survey highlights those investment
trusts, including Athelney, that have increased their annual dividend payout
for at least 20 years in a row. Most funds comprise investments in the
large-cap universe as they satisfy requirements for yield.  However, there
are three UK smaller companies' funds which have made the list this year with
Athelney having the highest dividend yield of 4.9 per cent.  The BlackRock
Smaller Companies trust is on a yield of 3.1 per cent and the Henderson trust
on 3.9 per cent with their current higher than normal yields resulting from
poor share price performance over the past year.

 

During the month the NASDAQ was down by 2.78% with the S&P500 faring
slightly better, declining by only 2.2%. In fact, markets globally were under
pressure with the MSCI declining during the month by 2.97%. After a positive
month in September, the FTSE100 was down, declining by 3.76% with the
remainder of the market and in particular, the mid-cap companies substantially
down.  The FTSE 250 declined by 6.54%, with the AIM All-Share Index declining
by 6.38%.  The Small Cap Index was down by 6.13% and the Fledgling Index
performed slightly better, down by 5.24%.

 

In periods when there is an increase in the equity risk premium, as occurred
in October, the share prices of growth companies are affected the most as long
dated earnings are discounted.  This is the case for Athelney where in spite
of the fact that investment income is the highest it has been since 2019, the
value of the Athelney portfolio has declined by 6.77% during the month.
After allowing for expenses, including a substantial increase in audit fees,
the NAV reflected a decline of 7.78%.

 

There were no changes to the portfolio during the month.  Our cash holding at
month end was unchanged, comprising 3.2% 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 (license
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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