Athelney Trust PLC Net Asset Value(s) (7014B)
04 October 2022 - 7:02PM
UK Regulatory
TIDMATY
RNS Number : 7014B
Athelney Trust PLC
04 October 2022
Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of Athelney Trust was 198.9p at 30
September 2022.
Fund Manager's comment for September 2022
The fiscal stimulus plan and series of tax cuts and regulatory
reforms announced in the mini budget sent financial markets into a
tailspin with the pound reaching a record low and short-term
interest rates and bond yields moving sharply higher upon the news
that the IMF viewed the strategy as likely to increase inequality,
and the rating agency, Moody, warning that unfunded tax cuts were
credit negative. The yields on five-year government bonds are now
at levels similar to those of more heavily-indebted European
economies such as Italy and Greece. Commensurate with this rise in
short and medium-term interest rates, the quoted prices for income
generating assets and REITs in particular, declined materially.
In response to what it referred to as recent "dysfunction", the
Bank of England (BoE) announced an emergency intervention in the
government bond market to "restore orderly market conditions" but
reiterated that it would not hesitate to change rates by as much as
is needed to ensure inflation returns to the 2% target over the
medium term. As a result, yields on 10-year UK government bonds
started to decline from recent highs and continued this trend when
the PM and Chancellor reversed their decision to implement various
tax cuts, especially that for high income earners.
For most businesses the damage has already been done with a
substantial increase in US$ denominated input costs and a steep
rise in borrowing costs. However, as mentioned in last month's
note, in spite of the negative outlook at a macro level, recent
results from companies in our portfolio and associated industries
other than REITs (which are included for their yield) indicate that
they have been able to partially withstand these inflationary
pressures by implementing appropriate business strategies. During
the past month o ur portfolio declined by 11.6% and, after
providing for expenses and the interim dividend, the NAV was down
by 12.46%, notwithstanding that the property related stocks
comprising almost 30% of the portfolio were down on average by 18%.
This compares with the broad market index, the FTSE 250 index which
declined by 11.92%. The AIM All-Share Index fared slightly better,
declining by 9.55%, while the FTSE100 declined by a lesser 5.53%.
The Small Cap Index and the Fledgling Index declined by 7.51% and
7.62% respectively.
Viewed against a global backdrop, the broad UK market was
clearly the worst hit. The MSCI Index declined by 9.46% during
September, while in the US, t he S&P 500 Index declined by a
similar amount, down by 9.34%. The Dow Jones Industrial Average was
down by 8.84% with the tech heavy Nasdaq Composite declining by
10.5%.
During the month we sold our holding in Jarvis after it
announced a review of the systems and controls in its subsidiary,
Jarvis Investment Management, pursuant to a s166 notice. The
proceeds from the sale were used to acquire additional shares in
Impax Asset Management. Cash comprised 12.3% 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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