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

Athelney TrustAnnouncement

04/03/2025 12:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250304:nRSD3123Za&default-theme=true

RNS Number : 3123Z  Athelney Trust PLC  04 March 2025

 

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 182.5p at 28 February
2025.

Fund Manager's comment for February 2025

In the US, the Federal Reserve maintained a cautious stance on monetary
policy, keeping interest rates at 4.25%-4.5% in January. Policymakers noted
that rates could remain restrictive if inflation stays elevated but might be
eased if economic conditions weaken. Inflation edged up to 3% in January,
slightly above expectations, with energy costs rising for the first time in
six months. Meanwhile, consumer sentiment fell sharply in February, reaching
its lowest level since November 2023, as concerns over tariffs and the
economic outlook weighed on expectations.

The manufacturing sector showed modest expansion in February, with the PMI
rising, signalling continued recovery despite slowing new orders and cautious
hiring. In contrast, the services sector contracted for the first time in over
two years, with the PMI falling below expectations. Businesses cited political
uncertainty, spending cuts, and rising tariffs as key challenges. Input cost
inflation increased due to higher food and wage costs, though heightened
competition kept selling prices in check. The data suggests a mixed economic
picture, with manufacturing rebounding but services under pressure.

In the Eurozone, business confidence dipped and the ECB responded by cutting
interest rates by 25 basis points, aiming to ease borrowing costs while
maintaining a cautious, data-driven approach. In February, manufacturing
showed signs of improvement, with the PMI indicating the slowest contraction
in nine months. However, new business and employment continued to decline, and
input costs rose. The services sector expanded for a third consecutive month,
albeit at a slower pace, with weakening business sentiment and persistent cost
pressures. Despite some stabilisation, challenges remain.

In the UK, manufacturing sentiment dropped in January to its lowest level in
over two years, with output and new orders, especially exports, declining
sharply. Rising costs and inflation, led to reduced investment and the
Manufacturing PMI fell further in February, indicating the sharpest
contraction since December 2023.

The UK services sector saw modest growth in February, but new work declined at
its fastest pace since late 2022, while rising costs fuelled inflation
pressures and employment weakened. Despite this, business activity
expectations improved. In response to slowing growth, the Bank of England cut
interest rates by 25 basis points to 4.5% in February, marking its third cut
since August 2024, while signalling a cautious easing approach.

Global equity markets were under pressure in February, with heightened
volatility. The S&P 500 and Nasdaq posted their worst monthly declines
since April 2024 and September 2023, falling 1.4% and 4.0% respectively. The
MSCI World Index declined by 1.3% while in the UK, the FTSE 100 rose by 1.6%.
In stark contrast, the FTSE 250 fell by 3.0%, the Small Cap Index dropped
3.3%, and the AIM All-Share Index declined by 2.0%. The Fledgling Index bucked
this trend, rising 0.6%.

Our portfolio was also under pressure in February with the NAV decreasing by
3.6%. We sold our holding in GAMA Communications, reduced our position in
Cakebox and Tritax Big Box while adding to our holdings in Impax Asset
Management, PayPoint, and S&U. Additionally, we initiated a new position
in Dunelm Group, a UK-based home furnishings retailer specialising in
furniture, décor, textiles, and homeware. Notable contributors to performance
included Alpha Group and NWF Group. The largest detractors from our
performance were Impax Asset Management and PayPoint.

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)
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NAVBDGDXXGGDGUS