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

Athelney TrustAnnouncement

05/02/2024 10:30

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RNS Number : 0353C  Athelney Trust PLC  05 February 2024

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 204.7p at 31 January 2024.

Fund Manager's comment for January 2024

The US consumer continues to drive the US Economy, with consumer spending
growing at an annualised rate of 2.8% during the last quarter of 2023, after
increasing by 3.1% in the previous quarter. The net result was that the US
economy grew at an annualised rate of a 3.3% during the final quarter of last
year. Separately, in spite of consumer prices rising at an annual rate of 1.7%
in the fourth quarter, down from 2.6% three months earlier and with inflation
heading towards its 2% target, the Federal Reserve held the benchmark federal
funds rate at a 23 year high of between 5.25% and 5.5%.  A similar approach
was adopted by the European Central Bank which indicated it would hold
Eurozone rates steady at a record high of 4% but it did note that inflation
was declining as expected.

In the UK, headline inflation is now at 4%, compared with its 2022 peak of
more than 11%.  The January Purchasing Managers Indices (PMIs) showed some
improvement, with the composite improving to 52.5 and, according to mortgage
provider Nationwide, UK house prices rose more than expected, increasing by
0.7% between December and January. A positive view shared by the Bank of
England which upgraded its growth forecast for 2024 to +0.25% from zero.
Nevertheless, the BOE held interest rates steady at 5.25%.

Globally the stock markets continued their positive performance for the third
month in a row as they responded positively to the improved inflationary and
interest rate outlook for the world economy with the tech heavy NASDAQ up by
1.02%.  The S&P500 also benefited from the positive sentiment in the
equity markets, reporting an 1.59% improvement over the month as did the MSCI
which was up by 1.14%.  However, after an excellent performance in December,
investors in the UK were not as optimistic with the major indices softening
over the month. The FTSE250 declined by 1.68% while the FTSE100 was down by
1.33%.  The smaller end of the market was mixed with the Small Cap Index down
by 2.0%, the AIM All-Share Index down by 1.12% and the Fledgling Index also
down but by only 0.51%.

The Athelney portfolio performed similarly to the major UK index, declining by
1.68% during the month.  After allowing for expenses, including a substantial
increase in audit and related fees, the NAV reflected a decline of 2.1%.

UK small to mid-cap stocks remain under-valued in a global context and we
expect further mergers and take overs during the year, similar to the recent
bid to take over Smart Metering.  Our cash holding at month end declined
slightly to 2.9% 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 a "Dividend Hero" being one of only a few
investment companies that have increased their dividend every year for 20
years or more. 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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