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 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 (£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
·
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 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
Website
www.athelneytrust.co.uk