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

Athelney TrustAnnouncement

02/04/2025 09:45

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RNS Number : 3311D  Athelney Trust PLC  02 April 2025

 

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 176.6p at 31 March 2025.

Fund Manager's comment for March 2025

The US economy expanded at an annualized 2.4% in Q4 2024, slightly exceeding
expectations, with growth driven by resilient consumer spending. Inflation
continued to ease, with CPI falling to 2.8% in February and core inflation
reaching a near three-year low of 3.1%. The Federal Reserve maintained
interest rates at 4.25%-4.5% in March, signalling a measured approach to
potential cuts while lowering GDP growth forecasts. Labour market conditions
softened, as unemployment rose to 4.1% and job growth slowed to 151,000 in
February. Manufacturing weakened due to tariff-related disruptions, while the
services sector rebounded on stronger demand, reflected in a rising S&P
Global Services PMI.

The European economy stagnated in Q4 2024, reflecting weak growth momentum.
Inflation fell to 2.3% in February, slightly below initial estimates but still
above the ECB's 2% target. Core inflation eased to 2.6%, its lowest since
early 2022, prompting the ECB to cut interest rates by 25bps to 2.50%.
Manufacturing showed signs of stabilization, with output expanding and job
cuts slowing, while the services sector lost momentum as new business growth
weakened. Wage pressures eased, leading to a slower rise in input costs and
selling prices.

The UK economy grew by 0.1% in Q4 2024, in line with previous estimates,
following stagnation in Q3. Growth was supported by modest gains in services
and construction, while manufacturing weakened, particularly in metals and
transport equipment. Inflation eased to 2.8% in February, but the Bank of
England held interest rates at 4.5% in March, citing persistent inflation
risks and geopolitical uncertainties. Unemployment remained steady at 4.4%,
though manufacturing sentiment deteriorated to a two-year low amid weak demand
and rising costs. Meanwhile, the services sector showed resilience, with the
Services PMI rising to its highest level since August 2024, as new business
improved, and firms remained cautiously optimistic despite ongoing cost
pressures.

Global equity markets faced renewed pressure in March, as concerns over
tariffs and economic uncertainty led to the worst quarterly performance for
the S&P 500 and Nasdaq Composite since 2022. During the month the S&P
500 declined by 5.8%, the Nasdaq Composite by 8.2%, the MSCI World Index by
4.6%, while in the UK, the FTSE 100 fell 2.6% and the FTSE 250 by 4.2%. The
Small Cap Index and AIM All-Share Index declined by 1.7% and 3.1%,
respectively, while the Fledgling Index posted a modest decline of 0.3%.

The Association of Investment Companies (AIC) recently identified 26
investment trusts that consistently deliver the highest yields. To qualify,
trusts required a minimum yield of 5%, a decade-long track record without
year-on-year dividend cuts, and a positive total return over the past 10
years. Notably, Athelney was included in this select group and stands out as
the only trust dedicated to UK smaller companies.

When compared to the market, our portfolio faced the same headwinds in March,
with the NAV decreasing by 3.2%.  During the month, we initiated a holding in
Mony Group plc, a leading UK-based price comparison website, helping consumers
save on financial products, insurance, energy, and broadband services. We
trimmed our holdings in AEW Reit, Tritax Big Box, Cake Box, Impax Asset
Management, NWF Group and PayPoint and sold our remaining holding in
Cerillion. We added to our holding in 4Imprint after they announced a special
dividend. Notable contributors to performance included Fever-Tree, AEW REIT
and Begbies Traynor Group. The largest detractors from our performance were
4Imprint, Treatt and Liontrust Asset Management.

 

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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