Net Asset Value(s)

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 193.3p at 31 August 2024.

Fund Manager's comment for August 2024

Even though global stock markets were up in August, with the MSCI World Index up 2.5%, the S&P 500 rising 2.3%, and the Nasdaq increasing 0.7%, this was after significant declines and volatility early in the month reminiscent of the global financial crisis.  The initial decline was triggered by a modest gain of 114,000 jobs in the US commensurate with downward revisions to prior data. The markets picked up again after Federal Reserve Chair Jerome Powell's speech at the Jackson Hole conference where he suggested upcoming policy changes now that the labour market had "cooled".

In the Eurozone, the Manufacturing PMI fell to 45.6, its lowest level in eight months and below the expected 45.8. Production continued to contract sharply, maintaining the severe pace observed in July, one of the steepest declines of 2024. New orders saw their largest drop since last year, and manufacturing workforce numbers also decreased. Input purchases plummeted, reaching their lowest point in four months, while stocks of purchases and finished goods notably declined. Headline inflation reached 2.2% in July, close to its 2% target, primarily due to lower goods sector inflation.

The U.K.'s Manufacturing PMI rose to 52.5 from 52.1 the previous month, surpassing the market expectation of 52.1. This marked the fourth consecutive month of expansion in U.K. factory activity and at its fastest pace in over two years. This positive trend in the U.K. manufacturing sector starkly contrasts with the declining activity seen in the Eurozone. The increase in new orders, the highest this year, was attributed to an improved sales pipeline and greater client risk-taking, despite weaker demand from abroad. July inflation eased to 2.2% year-on-year, with core inflation at 3.3% and services inflation unexpectedly rising to 5.2%. Mixed labour market data showed slightly weaker wage growth but solid employment figures. In Q2, GDP grew by 0.6% quarter-on-quarter, supported by government and consumer spending. Despite a flat June and varied sector performances, the U.K. economy seems poised for steady growth.

In the U.K., the broader market as reflected in FTSE 250 was down by 2.38% while the large cap FTSE 100 fared slightly better, edging up by 0.11%.  The smaller companies index declined by 0.66%, the AIM All-Share Index was down by 1.84% and the Fledgling index was down by 1.01%. Our portfolio performed better than the broader and smaller indices, declining by 0.71% and after allowing for expenses there was a decrease in the NAV of 1.13% for the month. Key contributors to performance included XP Power, Cerillion, Gama, and Games Workshop. We increased our position in Auto Trader and reduced our holding in 4Imprint, resulting in cash comprising 2.6% of the portfolio at the end of the month.

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