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

Athelney TrustAnnouncement

02/07/2024 12:00

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RNS Number : 8234U  Athelney Trust PLC  02 July 2024

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 188.1p at 30 June 2024.

Fund Manager's comment for June 2024

Final revisions to the US first quarter annualised GDP figures were in line
with expectations, rising 0.1% to 1.4%. According to the Federal Reserve, core
inflation reduced in May to its lowest level in more than three years against
a backdrop of measured consumer spending and strong personal income. This once
again fuelled speculation that the Federal Reserve will begin cutting rates at
the September FOMC meeting.

The Bank of England (BoE) met in June and maintained the policy rate at 5.25%,
albeit leaning towards a reduction in rates as the May headline CPI inflation
rate eased to 2.0% year-on-year. The UK Manufacturing PMI was revised lower to
50.9 in June 2024 from a preliminary estimate of 51.4. However, the data
continued to point to an upturn in the manufacturing sector as output and new
orders both expanded for the second successive month, with rates of expansion
remaining close to the highs reached in May. The Eurozone manufacturing PMI
showed signs of weakness at the end of the second quarter as the contraction
in output accelerated. New orders, purchasing activity and employment also
decreased at faster rates, but the 12-month outlook for output remained
positive.

Stock markets globally continued to reach new highs.  While the MSCI World
Index only increased by 1.9%, the S&P 500 rose by 3.5% and the NASDAQ
index reported a 6.0% gain, adding to the previous month's 6.9% rise. One
should be mindful that a handful of Big Tech stocks have fuelled the S&P
500's rally so far this year, with shares of Nvidia Corp. (NVDA) surging
around 150% in 2024 alone.  This was highlighted in a recent Forbes
article on the S&P performance over the past two years which showed that
while the S&P 500 Growth Index returned 6.9%, the average stock had a
negative return of 1.6%. Analysing the index performance in terms of market
capitalisation by decile, the group comprising the largest 10%, with an
average market capitalisation of more than $1 trillion, drove all the returns
of the Index.

UK markets by comparison did not fare as well, with the FTSE 100 Index
decreasing by 1.3% and the FTSE 250 falling by 2.1% as investors waited on the
sidelines ahead of the upcoming general elections. Smaller companies did not
fare any better, with the Small Cap Index down by 0.8% and the AIM All-Share
index decreasing by 5.1%. The Athelney portfolio declined by 3.6% driven by
the most part by a substantial decline in YouGov after the company announced a
poor result in its data products division, despite increased demand for its
customised research. The net result for June was that the portfolio declined
by 2.8% and after accounting for expenses, there was a decrease in the
Athelney NAV of 3.6% for the month.

In June we introduced Raspberry Pi Holdings to the portfolio, reducing our
cash on hand to 1.9%.  Raspberry Pi is a high-growth, high-margin,
founder-led tech company dedicated to revolutionising the accessibility and
affordability of computing and digital education in a traditional computing
market characterised by high barriers to entry, expensive hardware and
software costs. Raspberry Pi disrupts this paradigm by offering compact,
versatile, and powerful computing devices at a fraction of the cost and ads to
our expanding suite of quality growth companies.

 

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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