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

Athelney TrustAnnouncement

06/06/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240606:nRSF3865Ra&default-theme=true

RNS Number : 3865R  Athelney Trust PLC  06 June 2024

Athelney Trust PLC

 

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 195.1p at 31 May 2024.

Fund Manager's comment for May 2024

The US economy expanded at an annualized rate of only 1.3% in the first
quarter of 2024, on the back of slowing consumer spending on both goods and
services in response to the high interest rates. By comparison, the British
economy grew by 0.6% in the first three months of 2024, ending the recession
it entered last year which marks the strongest expansion in over two years. In
expenditure terms, household consumption went up 0.2%, led by spending on
housing, water and fuels, recreation and culture, restaurants and hotels.
Retail sales fell 2.3% between March and April, with fewer purchases in
clothing and furniture stores.

Recent US inflation data did not show any "meaningful progress" but it is at
least consistent with cooling price growth and leaves the door open for cuts
later in the year. In the UK, core inflation at 3.9% was down from 4.2% the
previous month.  The picture was much the same in Europe with a 4.9% increase
in the pace of labor costs. However, what is evident is that global inflation
is coming down from the 2022 peak.

In terms of the international economic outlook, May PMI surveys for the
Eurozone and United Kingdom pointed to a continuing recovery for those key
European economies. In the UK, the manufacturing PMI rose to the highest level
since July 2022, while the services PMI remained in expansion territory for
the seventh month in a row.

The stock market declines that were reported in April were for the most part
reversed in May.  The S&P500 increased by 4.8% following a 4.2% decline
in April as did the NASDAQ, increasing by 6.9% after a 4.4% decline with the
MSCI up by 4.2% after being down by 3.9% in the previous month.

The UK markets continued their positive performance this year with the FTSE
100 up by 1.61% and the broad index, the FTSE 250 up by 3.83%.  The Small Cap
Index was up by 4.08%, the AIM All-Share index up by 5.92% and the Fledgling
Index up by 3.96%.

With the exception of Impax Asset Management, the Athelney portfolio of stocks
performed well during the month with the portfolio value increasing by
3.38%.  Impax is one of our largest positions, declining by 14.7% on the day
when the company announced that there had been a material outflow from the BNP
Paribas mandate.  This decision by BNP Paribas to withdraw the funds reflects
a decision made by them to meet their own business requirements, asset
allocation targets or outflows from their distribution network and is in no
way is a reflection on the Impax business.  In fact, Impax AUM was up by
£2.2bn or 6% during the past six months, reaching £39.6bn on 31 Mar 24 (30
Sep 23: £37.4bn) and exceeding that of two thirds of the London-listed peer
group.  We expect that the value of this quality business will once again be
reflected in the market price.

After TClarke went ex-dividend, we sold our entire holding into the take-over
bid and added to our holding in Liontrust and Paypoint.  The net result was
that after accounting for expenses, there was an increase in the Athelney NAV
of 2.79% for the month while our cash holding declined slightly to 2.7%.

 

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  NAVGUGDLXXGDGSL