Net Asset Value(s)

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 187.2p at 31 October 2024.

Fund Manager's comment for October 2024

The US economy grew at an annualised rate of 2.8% in Q3 2024, down from 3% in Q2 and below forecasts. Personal spending surged by 3.7%, driven by a 6% increase in goods consumption and steady growth in services and while government spending rose by 5%, net trade showed only a slight improvement.

In October, the US added only 12,000 jobs, far below expectations and the lowest growth since December 2020, likely impacted by hurricanes in Florida and labour strikes at Boeing. Job gains occurred in healthcare and government, but manufacturing and temporary help services lost jobs. The unemployment rate held steady at 4.1%.

Annual inflation slowed to 2.4% in September, slightly above forecasts. In September, the Federal Reserve cut the federal funds rate by 50 basis points to a target range of 4.75%-5%, signalling a cautious approach to managing inflation while supporting economic growth.

In the Eurozone, GDP grew by 0.4% in Q3 2024, the strongest growth in two years, up from 0.2% in Q2 and surpassing forecasts. Germany's economy expanded by 0.2%, avoiding recession, while France (0.4%), Spain (0.8%), and Ireland (2%) experienced solid growth. However, Italy stalled, and Latvia continued to contract. Year-on-year, GDP rose 0.9%, the highest since Q1 2023.

The European Central Bank (ECB) cut its key interest rate by 25 basis points to 3.25% in October to support the economy, amid ongoing disinflation, as inflation fell below the 2% target for the first time in over three years in September.  Employment continued to decline, especially in manufacturing, with significant job cuts in Germany.

In the UK, the economy grew by 0.5% in Q2 2024, slightly down from initial estimates. Government spending and exports were revised lower, while investment exceeded expectations. Manufacturing activity represented by the Manufacturing PMI fell to 49.9, indicating contraction in factory activity, as new orders decreased, and businesses hesitated ahead of the budget.

On the services side, the UK Services PMI fell to 51.8 in October, below expectations, marking the slowest growth in the services sector since June. Despite resilient new business intake and a rise in export sales, firms reduced backlogs and laid off staff at the fastest rate in 13 months, while cost pressures from salaries and technology services increased. This is likely due to broad concerns over government policy, the economic outlook, excess capacity and cost-cutting pressures.

Global stock markets experienced declines in October, with the MSCI World Index dropping by 2.04%, the S&P 500 down 0.99%, and the Nasdaq falling 0.52%. In the UK, the FTSE 100 fell by 1.54%, while smaller companies fared similarly with the Small Cap Index down by 1.51%, the AIM All-Share Index down by 0.45% and the Fledgling Index declining by 2.8%.

Our portfolio declined by 1.0% during the month with the net asset value (NAV) down by 1.2% for the month after accounting for all expenses. Notable contributors to our performance included Treatt, Cake Box, and PayPoint, each of which saw share price gains of over 8% in October. We reduced our positions in Games Workshop, Londonmetric, PayPoint and Rightmove while increasing our stake in NWF. Cash holdings made up 1.9% of the portfolio at month end.

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