Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of Athelney Trust was
195.3p at 31 July 2024.
Fund Manager's
comment for July 2024
The U.S. economy surprised many by growing at a
2.8% annualised rate in the second quarter, an acceleration from
1.4% in Q1, driven largely by increased household spending. Despite
this positive overall growth, signs of economic slowdown are
evident, reinforcing the likelihood of near-term monetary easing as
inflation is expected to soften. Evidence of this slowing can be
seen in the Interest-rate sensitive sectors such as property sales
and manufacturing which are showing signs of strain despite a
resilient broader economy. High financing costs and
election-related uncertainties may limit a manufacturing rebound
before November.
July PMI surveys showed mixed economic trends
in Europe. The Eurozone's manufacturing PMI fell to 45.6, services
from 51.9, and the composite to 50.1, aligning with expectations of
slower GDP growth. In contrast, the U.K.'s manufacturing PMI rose
from 51.8, services to 52.4, and new business to 55.3, indicating
stronger economic momentum and leading to an increased 2024 GDP
forecast of 1.0%.
The upcoming Eurozone CPI will provide insight
into inflation as the ECB considers a potential rate cut in
September, with a slight decrease to 2.4% year-on-year expected in
July. Separately, the Bank of England (BoE) has reduced its
interest rate by 0.25% to 5.00% despite mixed economic data and
persistent inflation.
President Biden announced he will not seek
re-election this November and endorsed Vice President Kamala Harris
for the Democratic Party nomination. Limited polling data suggests
a Harris vs. Trump matchup similar to the previous Biden vs. Trump
race, though it may take time for polls to reflect public sentiment
accurately.
Global stock markets saw gains in July, with
the MSCI World Index rising 1.7% and the S&P 500 up by 1.1%
with the exception being the Nasdaq which fell by 0.75% due to a
shift by investors away from some of the largest technology
companies. Small Caps continued their upward trend, with the
Russell 2000 index rising 11%.
In the U.K., markets recovered in July, with
the FTSE100 increasing by 2.5% while the broader index, the FTSE
250, was up by 6.5%. Smaller companies did not perform as well with
the Small Cap Index up by 3.89%, the AIM All-Share Index up by
2.96% and the Fledgeling index only up 1.23%. Our portfolio
performed extremely well, increasing by 4.4% and after accounting
for expenses the NAV was up by 3.8% for the month.
In July, the largest contributors to
performance came from our holdings in AEW and Tritax Big Box
followed by PayPoint and Impax Asset Management. We top sliced our
holdings in Cerillion and Gamma, added to our holding in Relx and
introduced Auto Trader to the portfolio which resulted in our cash
on hand comprising 2.7% of the portfolio. Auto Trader is the
UK's largest digital automotive marketplace where used and new car
buyers can conduct their research and complete the transaction. It
has the technology to be able to grow its economic footprint over
time by delivering better online buying and selling experiences to
its extensive customer base.
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