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

Athelney TrustAnnouncement

06/01/2025 10:30

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RNS Number : 2576S  Athelney Trust PLC  06 January 2025

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 186.1p at 31 December
2024.

Fund Manager's comment for December 2024

The U.S. Federal Reserve announced a 25-basis point cut to the federal funds
rate in December, marking it the third consecutive reduction in 2024 and which
brought borrowing costs down to a range of 4.25% - 4.5%, in line with market
expectations. The Fed also revised its GDP growth projections upward, now
expecting 2.5% growth in 2024 (up from 2%) and 2.1% in 2025 (up from 2%),
while maintaining a 2% outlook for 2026.

The U.S. economy grew at an annualised rate of 3.1% in Q3 2024, an improvement
over the estimate of 2.8%. Consumer spending accelerated at its fastest pace
since Q1 2023, fuelled by a 5.6% rise in goods consumption and robust spending
on services. Fixed investment also exceeded expectations, increasing by 2.1%
versus a forecasted 1.7%.

However, the manufacturing sector face numerous headwinds with the U.S.
Manufacturing PMI dropping to 48.3 from 49.7 in November, well short of market
expectations and signalling persistent contraction. New orders continued to
decline, pushing production to its lowest level since August 2009, excluding
the pandemic disruptions of Q2 2020. In contrast, the U.S. Services sector
delivered a positive surprise with the Services PMI climbing to 58.5 from 56.1
in November, reflecting the strongest growth in over two years.  This was
driven by rising new orders and improved confidence tied to expectations of
business-friendly policies under the Trump administration.

In the Eurozone, Q3 2024 GDP expanded by 0.4% compared to the previous
quarter. However, the manufacturing sector continued to struggle, with the
Manufacturing PMI remaining unchanged in December. This marks two years of
consecutive monthly contractions, driven by a sustained decline in new orders
and the steepest output reductions since 2023.

On a positive note, the Eurozone services sector also showed resilience, with
the Services PMI rising to 51.4 in December from 49.5 in November. This
unexpected recovery marked a return to expansion, supported by improving
optimism about the 12-month outlook for output.

In the UK. the economy remained subdued, with GDP growth stalling in Q3 2024.
Revised data showed no growth, down from an initial estimate of 0.1%. The UK
Services PMI improved to 51.4 in December from a 13-month low of 50.8 in
November, exceeding expectations. This reflected modest growth driven by
increased business activity and reduced backlogs. However, service providers
expressed concerns about rising costs, including higher National Insurance
contributions, which weighed on sentiment and expansion plans.

The UK manufacturing sector saw further decline, with the Manufacturing PMI
falling to 47.3 from 48 in November, marking the sharpest contraction in 11
months. Production dropped for the second consecutive month as new orders
declined at an accelerated rate.

In December, global equity markets saw a mixed performance. The MSCI World
Index fell by 2.69%, as did the S&P 500, declining by 2.50%. The Nasdaq
bucked the trend, increasing by 0.48%. In the UK, the FTSE 100 fell by 1.38%
while the broader market as represented by the FTSE250 declining by 0.57%. The
smaller companies were mixed with the Small Cap Index rising 0.61%, the
Fledgling Index up 1.87% while the AIM All-Share Index struggled and was down
by 1.76%.

Our portfolio's net asset value (NAV) decreased by 0.75%. Notable contributors
to performance included Raspberry Pi, Treatt, Wise, and Alpha Group, each
gaining over 5% during the month. Impax Asset Management was the largest
detractor to performance, impacted by the loss of a large mandate. We reduced
our holdings in Gamma Communications and increased our position in AJ Bell. At
month-end, cash holdings comprised 2.5% 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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