TIDMATY

RNS Number : 2420Y

Athelney Trust PLC

05 September 2022

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 227.2p at 31 August 2022.

Fund Manager's comment for August 2022

The US Federal Reserve has made it clear that it is determined to ensure that the inflation rate is reduced to its two percent goal by bringing supply and demand back into balance and that it will take whatever steps necessary to achieve this, including further increases in interest rates. The Bank of England has adopted a similar approach and raised its interest rate to 1.75% in August in spite of the expectation that the UK economy would go into recession later this year. PMI data for August reflected a larger than expected decline in the manufacturing component of the PMI, while the services PMI was relatively stable at levels consistent with moderately positive growth. This decline in manufacturing output for the first time since May 2020, flowed through to the overall UK economy which shrank between April and June as businesses and households felt the impact of component shortages and rising prices.

In spite of the negative outlook at a macro level, recent results from companies in our portfolio and associated industries have indicated that they have been able to partially withstand these inflationary pressures by implementing appropriate business strategies. However, companies reliant on imports have had a material headwind caused by the 4.8% decline in August of the pound against the US dollar. The last time the pound had a similar decline against the dollar was in October 2016, in the aftermath of the Brexit vote.

Global equity markets were under pressure as a consequence of the rise in interest rates by the BOE and other central banks. This was evident in the 4.3% decline in the MSCI Index in August. In the US, t he S&P 500 Index declined by a similar amount, down by 4.2%, wiping out some of the gains made in July. The Dow Jones Industrial Average was down by 4.1% with the tech heavy Nasdaq Composite declining by a slightly larger 4.6%.

The UK markets responded in a similar manner with the FTSE 250 index declining by 5.5%, while the AIM All-Share Index declined by 4.2%. The FTSE100 held up reasonably well, declining by only 1.9% as did the Fledgling Index which declined by 0.2%. The market value of our investment portfolio declined by 6.7% and, after paying expenses, the NAV per share was down by 7%.

During the month we acquired shares in Impax Asset Management. Cash comprised 11.6% 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).

www.ecpohl.com

www.ecpam.com

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

https://www.theaic.co.uk/income-finder/dividend-heroes

Website

www.athelneytrust.co.uk

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September 05, 2022 02:09 ET (06:09 GMT)

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