Net Asset Value(s)

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 195.3p at 31 July 2024.

Fund Manager's comment for July 2024

The U.S. economy surprised many by growing at a 2.8% annualised rate in the second quarter, an acceleration from 1.4% in Q1, driven largely by increased household spending. Despite this positive overall growth, signs of economic slowdown are evident, reinforcing the likelihood of near-term monetary easing as inflation is expected to soften. Evidence of this slowing can be seen in the Interest-rate sensitive sectors such as property sales and manufacturing which are showing signs of strain despite a resilient broader economy. High financing costs and election-related uncertainties may limit a manufacturing rebound before November.

July PMI surveys showed mixed economic trends in Europe. The Eurozone's manufacturing PMI fell to 45.6, services from 51.9, and the composite to 50.1, aligning with expectations of slower GDP growth. In contrast, the U.K.'s manufacturing PMI rose from 51.8, services to 52.4, and new business to 55.3, indicating stronger economic momentum and leading to an increased 2024 GDP forecast of 1.0%.

The upcoming Eurozone CPI will provide insight into inflation as the ECB considers a potential rate cut in September, with a slight decrease to 2.4% year-on-year expected in July. Separately, the Bank of England (BoE) has reduced its interest rate by 0.25% to 5.00% despite mixed economic data and persistent inflation.

President Biden announced he will not seek re-election this November and endorsed Vice President Kamala Harris for the Democratic Party nomination. Limited polling data suggests a Harris vs. Trump matchup similar to the previous Biden vs. Trump race, though it may take time for polls to reflect public sentiment accurately.

Global stock markets saw gains in July, with the MSCI World Index rising 1.7% and the S&P 500 up by 1.1% with the exception being the Nasdaq which fell by 0.75% due to a shift by investors away from some of the largest technology companies. Small Caps continued their upward trend, with the Russell 2000 index rising 11%.

In the U.K., markets recovered in July, with the FTSE100 increasing by 2.5% while the broader index, the FTSE 250, was up by 6.5%. Smaller companies did not perform as well with the Small Cap Index up by 3.89%, the AIM All-Share Index up by 2.96% and the Fledgeling index only up 1.23%. Our portfolio performed extremely well, increasing by 4.4% and after accounting for expenses the NAV was up by 3.8% for the month.

In July, the largest contributors to performance came from our holdings in AEW and Tritax Big Box followed by PayPoint and Impax Asset Management. We top sliced our holdings in Cerillion and Gamma, added to our holding in Relx and introduced Auto Trader to the portfolio which resulted in our cash on hand comprising 2.7% of the portfolio.  Auto Trader is the UK's largest digital automotive marketplace where used and new car buyers can conduct their research and complete the transaction. It has the technology to be able to grow its economic footprint over time by delivering better online buying and selling experiences to its extensive customer base.

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