Net Asset Value(s)

Athelney Trust PLC

07 May 2024

 

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 189.8p at 30 April 2024.

Fund Manager's comment for April 2024

In the US, the Federal Reserve maintained the interest rate in the range of between 5.25% and 5.5% and indicated that it is likely to remain at this level for a while longer as there had been "a lack of further progress" towards their 3% inflation goal in recent months. However, on the flip side the Federal Reserve did indicate that it was unlikely that interest rates would rise to counter the recent uptick in inflation as the economy was moving towards full employment in an environment of subdued price pressure. In the 4^th quarter, US GDP increased by 3.4% with a further 175,000 jobs added in April, albeit below estimates of a 241,000 rise, with unemployment rising slightly to 3.9%, compared with estimates of 3.8%. 

Eurozone Q1 GDP growth came in stronger than expected this week and the April CPI showed further disinflation progress as the core CPI slowed to 2.7% year-on-year. The gain in the Eurozone Q1 GDP was widespread, even if the strength of the rebound varied across the region's major economies. German and French GDP both rose in Q1, albeit by a modest 0.2% over the previous quarter. Italy's GDP increased by a slightly stronger 0.3%, and Spain's GDP rose by a solid 0.7%.

By comparison, the Organisation for Economic Co-operation and Development (OECD) has forecast that the UK GDP will increase by a mere 0.4% in 2024, a softer expansion than any other G7 economy apart from Germany, combined with a higher rate of inflation of 2.7%. UK mortgage approvals hit an 18-month high in March, rising to a more normal level of 61,300 after falling to a low of 39,800 in January 2023 when higher interest rates curbed demand.

The slight uptick in inflation and the perceived delay in the easing of interest rates put pressure on share prices with the S&P500 declining by 4.2% for the month.  The NASDAQ reported a similar decline of 4.4% as did the MSCI which was down by 3.9% over the month. 

Notwithstanding the negative economic news, the UK markets performed strongly with the FTSE 100 up by 2.41%, the Small Cap Index up by 2.02%, the AIM All-Share index up by 2.35% and the Fledgling Index up by 4.15%.  The broad index did not fare quite as well with the FTSE 250 up by only 0.41%. 

The Athelney portfolio was unchanged for the month and, after allowing for expenses, the NAV reflected a decline of 0.42%.

During April, we established a position in Relx, added to our holding in Begbies Traynor while selling our entire holding in Spirax-Sarco Engineering and reducing our holding in London Metric.  This resulted in our cash holding increasing slightly to 2.8%.

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           

 

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