Net Asset Value(s)

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 188.1p at 30 June 2024.

Fund Manager's comment for June 2024

Final revisions to the US first quarter annualised GDP figures were in line with expectations, rising 0.1% to 1.4%. According to the Federal Reserve, core inflation reduced in May to its lowest level in more than three years against a backdrop of measured consumer spending and strong personal income. This once again fuelled speculation that the Federal Reserve will begin cutting rates at the September FOMC meeting.

The Bank of England (BoE) met in June and maintained the policy rate at 5.25%, albeit leaning towards a reduction in rates as the May headline CPI inflation rate eased to 2.0% year-on-year. The UK Manufacturing PMI was revised lower to 50.9 in June 2024 from a preliminary estimate of 51.4. However, the data continued to point to an upturn in the manufacturing sector as output and new orders both expanded for the second successive month, with rates of expansion remaining close to the highs reached in May. The Eurozone manufacturing PMI showed signs of weakness at the end of the second quarter as the contraction in output accelerated. New orders, purchasing activity and employment also decreased at faster rates, but the 12-month outlook for output remained positive. 

Stock markets globally continued to reach new highs.  While the MSCI World Index only increased by 1.9%, the S&P 500 rose by 3.5% and the NASDAQ index reported a 6.0% gain, adding to the previous month's 6.9% rise. One should be mindful that a handful of Big Tech stocks have fuelled the S&P 500's rally so far this year, with shares of Nvidia Corp. (NVDA) surging around 150% in 2024 alone.  This was highlighted in a recent Forbes article on the S&P performance over the past two years which showed that while the S&P 500 Growth Index returned 6.9%, the average stock had a negative return of 1.6%. Analysing the index performance in terms of market capitalisation by decile, the group comprising the largest 10%, with an average market capitalisation of more than $1 trillion, drove all the returns of the Index.

UK markets by comparison did not fare as well, with the FTSE 100 Index decreasing by 1.3% and the FTSE 250 falling by 2.1% as investors waited on the sidelines ahead of the upcoming general elections. Smaller companies did not fare any better, with the Small Cap Index down by 0.8% and the AIM All-Share index decreasing by 5.1%. The Athelney portfolio declined by 3.6% driven by the most part by a substantial decline in YouGov after the company announced a poor result in its data products division, despite increased demand for its customised research. The net result for June was that the portfolio declined by 2.8% and after accounting for expenses, there was a decrease in the Athelney NAV of 3.6% for the month.

In June we introduced Raspberry Pi Holdings to the portfolio, reducing our cash on hand to 1.9%.  Raspberry Pi is a high-growth, high-margin, founder-led tech company dedicated to revolutionising the accessibility and affordability of computing and digital education in a traditional computing market characterised by high barriers to entry, expensive hardware and software costs. Raspberry Pi disrupts this paradigm by offering compact, versatile, and powerful computing devices at a fraction of the cost and ads to our expanding suite of quality growth companies.

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