Athelney Trust PLC Net Asset Value(s) (0569I)

TIDMATY

RNS Number : 0569I

Athelney Trust PLC

02 August 2023

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 215.6p at 31 July 2023.

Fund Manager's comment for July 2023

US economic data has continued to beat expectations with the advance estimate of real GDP increasing by 2.4% in the second quarter, exceeding expectations. While there was a continued decline in residential investment due to elevated mortgage rates, overall business spending was strong with spending on equipment up by 10.8%, structures by 9.7% and intellectual property products up by 3.9% on an annualized basis. As highlighted in last month's commentary, China's economy has continued to lose momentum with second quarter GDP increasing by 0.8% over the previous quarter but well down from the 2.2% growth seen in Q1. On an annualised basis, Q2 GDP at 6.3% was well below consensus of 7.1%.

Similar to China, both the Eurozone and the United Kingdom have continued to lose momentum. In the Eurozone, both the July manufacturing PMI and the services PMI fell more than expected with the composite PMI down at 48.9. The European Central Bank raised its Deposit Rate by 25 bps to 3.75% but was cautious in offering any guidance about policy beyond this July meeting. In the United Kingdom the July manufacturing PMI declined further to 45.0, while the services PMI fell quite sharply to 51.5. However, even though the decline in core inflation to 6.9% was a pleasant surprise, inflation trends remain well above the central bank's target and wage growth has not shown any signs of slowing.

A number of other central banks have reported seeing not only a reduction in inflationary pressures but also a slowing down of economic performance in response to the higher interest rate environment. Interest rate increases have been put on hold as a result, which has led to the MSCI increasing by 3.3%, driven again in large part by the technology stocks in the US. The NASDAQ had another excellent month, up by 4.1% with the S&P500 up by a slightly lower 3.1%. In t he UK, while the broad market as represented by the FTSE 250 Index was up by 4.0%, the larger companies did not perform as well which is evidenced by the FTSE 100 increasing by only 2.2%. Smaller companies performed slightly better with the Small Cap Index up by 3.2% while the AIM All-Share Index was up by 1.5%. The Fledgling Index fared the worst and was up by only 1.0%. By comparison, the Athelney portfolio was up by 3.6% and, after providing for the expenses, the NAV was up by 3.3%.

During the month we continued to reduce our exposure to the property sector, selling down some of our holding in the Target Healthcare REIT and T Clarke. Cash was used to increase further our exposure to the AEW UK REIT and Cake Box with our cash holding at month end comprised 4.8% 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 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

www.ecpam.com

Manny Pohl and the ECP group has AUD2.7bn (GBP1.5 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

   --    Barrack St Investments (ASX code: BST)

AUD37m www.barrackst.com

   --    Global Masters Fund Limited (ASX code: GFL)

AUD33m www.globalmastersfund.com.au

   --    Athelney Trust plc (LSE code: ATY)

GBP6m 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 one of only "22 investment companies that have increased their dividend every year between 10 and 20 years - the next generation of dividend heroes" (as at 20/03/2018). See link

https://www.theaic.co.uk/income-finder/dividend-heroes

Website

www.athelneytrust.co.uk

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