RNS Number : 8201N

Athelney Trust PLC

06 June 2022

Athelney Trust PLC

Legal Entity Identifier:


The unaudited net asset value of Athelney Trust was 253.3p at 31 May 2022.

Fund Manager's comment for May 2022

Our portfolio declined by 2.47% over the month which was in line with the decline in the small and mid-cap market. After providing for the expenses the NAV declined by 2.58%. This compares with the FTSE 100 which was up by 0.84%, while the broader FTSE 250 Index was down, declining by 1.40%. The AIM All Share Index declined by 4.55% with the Small Cap Index performing slightly better, declining by only 2.35%. T he Fledgling Index was down by 1.58%. As mentioned in previous monthly comments, the FTSE 100 Index contains many larger, older and more traditional commodity and energy-related stocks including BP and Royal Dutch Shell which have been benefiting from firm prices for oil and metals as a result of the ongoing war in Ukraine.

By comparison, the Global markets were also subdued, with the MSCI declining by 0.16% over the month, while the S&P500 index showed a slight improvement, up by 0.01%. After the massive decline in the US Mega Cap stocks in April, the trend continued, with the tech heavy NASDAQ down by a further 2.05% during the month.

It is evident that the central banks have all come on board with the new narrative that one should be swift when dealing with inflation, so as to avoid the potential of a wage-price spiral developing. What should be remembered is that central bank commentary guiding interest rate expectations higher is an effective way to utilise a declining stock market to tighten financial conditions, reduce wealth and lower consumer sentiment to dampen an overheated situation. This is evidenced by the bond markets pricing in higher future interest rates, potentially reducing the need for as many actual interest rate rises down the track.

The recent decline in equity prices has been almost entirely due to lower price-to-earnings valuation multiples which have tracked the move in bond yields, particularly real bond yields which exclude expected inflation. Meanwhile, corporate earnings have generally also remained resilient, with the exception of some consumer discretionary companies which are most sensitive to rising cost pressures. This is also evident in recent data where recent US employment was solid with nonfarm payrolls rising 390,000 during the month. Job gains were broad-based with the unemployment rate unchanged at 3.6%.

During the month we top sliced our holding in LXI Reit, using the proceeds to add to our holding in Close Bros, Fevertree Drinks, Gamma Communications and Treatt. Cash currently comprises 8.5% 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 (licence no.421704).



Manny Pohl and the ECP group has AUD2.7bn (GBP1.5 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 one of only "22 investment companies that have increased their dividend every year between 10 and 20 years - the next generation of dividend heroes" (as at 20/03/2018). See link




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(END) Dow Jones Newswires

June 06, 2022 04:36 ET (08:36 GMT)

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