Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of
Athelney Trust was 182.5p at 28 February 2025.
Fund Manager's
comment for February 2025
In the US, the Federal Reserve
maintained a cautious stance on monetary policy, keeping interest
rates at 4.25%-4.5% in January. Policymakers noted that rates could
remain restrictive if inflation stays elevated but might be eased
if economic conditions weaken. Inflation edged up to 3% in January,
slightly above expectations, with energy costs rising for the first
time in six months. Meanwhile, consumer sentiment fell sharply in
February, reaching its lowest level since November 2023, as
concerns over tariffs and the economic outlook weighed on
expectations.
The manufacturing sector showed
modest expansion in February, with the PMI rising, signalling
continued recovery despite slowing new orders and cautious hiring.
In contrast, the services sector contracted for the first time in
over two years, with the PMI falling below expectations. Businesses
cited political uncertainty, spending cuts, and rising tariffs as
key challenges. Input cost inflation increased due to higher food
and wage costs, though heightened competition kept selling prices
in check. The data suggests a mixed economic picture, with
manufacturing rebounding but services under pressure.
In the Eurozone, business confidence
dipped and the ECB responded by cutting interest rates by 25 basis
points, aiming to ease borrowing costs while maintaining a
cautious, data-driven approach. In February, manufacturing showed
signs of improvement, with the PMI indicating the slowest
contraction in nine months. However, new business and employment
continued to decline, and input costs rose. The services sector
expanded for a third consecutive month, albeit at a slower pace,
with weakening business sentiment and persistent cost pressures.
Despite some stabilisation, challenges remain.
In the UK, manufacturing sentiment
dropped in January to its lowest level in over two years, with
output and new orders, especially exports, declining sharply.
Rising costs and inflation, led to reduced investment and the
Manufacturing PMI fell further in February, indicating the sharpest
contraction since December 2023.
The UK services sector saw modest
growth in February, but new work declined at its fastest pace since
late 2022, while rising costs fuelled inflation pressures and
employment weakened. Despite this, business activity expectations
improved. In response to slowing growth, the Bank of England cut
interest rates by 25 basis points to 4.5% in February, marking its
third cut since August 2024, while signalling a cautious easing
approach.
Global equity markets were under
pressure in February, with heightened volatility. The S&P 500
and Nasdaq posted their worst monthly declines since April 2024 and
September 2023, falling 1.4% and 4.0% respectively. The MSCI World
Index declined by 1.3% while in the UK, the FTSE 100 rose by 1.6%.
In stark contrast, the FTSE 250 fell by 3.0%, the Small Cap Index
dropped 3.3%, and the AIM All-Share Index declined by 2.0%. The
Fledgling Index bucked this trend, rising 0.6%.
Our portfolio was also under
pressure in February with the NAV decreasing by 3.6%. We sold our
holding in GAMA Communications, reduced our position in Cakebox and
Tritax Big Box while adding to our holdings in Impax Asset
Management, PayPoint, and S&U. Additionally, we initiated a new
position in Dunelm Group, a UK-based home furnishings retailer
specialising in furniture, décor, textiles, and homeware. Notable
contributors to performance included Alpha Group and NWF Group. The
largest detractors from our performance were Impax Asset Management
and PayPoint.
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
