Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of Athelney Trust was
193.3p at 31 August 2024.
Fund Manager's
comment for August 2024
Even though global stock markets were up in
August, with the MSCI World Index up 2.5%, the S&P 500 rising
2.3%, and the Nasdaq increasing 0.7%, this was after significant
declines and volatility early in the month reminiscent of the
global financial crisis. The initial decline was triggered by
a modest gain of 114,000 jobs in the US commensurate with downward
revisions to prior data. The markets picked up again after Federal
Reserve Chair Jerome Powell's speech at the Jackson Hole conference
where he suggested upcoming policy changes now that the labour
market had "cooled".
In the Eurozone, the Manufacturing PMI fell to
45.6, its lowest level in eight months and below the expected 45.8.
Production continued to contract sharply, maintaining the severe
pace observed in July, one of the steepest declines of 2024. New
orders saw their largest drop since last year, and manufacturing
workforce numbers also decreased. Input purchases plummeted,
reaching their lowest point in four months, while stocks of
purchases and finished goods notably declined. Headline inflation
reached 2.2% in July, close to its 2% target, primarily due to
lower goods sector inflation.
The U.K.'s Manufacturing PMI rose to 52.5 from
52.1 the previous month, surpassing the market expectation of 52.1.
This marked the fourth consecutive month of expansion in U.K.
factory activity and at its fastest pace in over two
years. This positive trend in the U.K. manufacturing
sector starkly contrasts with the declining activity seen in the
Eurozone. The increase in new orders, the highest this year, was
attributed to an improved sales pipeline and greater client
risk-taking, despite weaker demand from abroad. July inflation
eased to 2.2% year-on-year, with core inflation at 3.3% and
services inflation unexpectedly rising to 5.2%. Mixed labour market
data showed slightly weaker wage growth but solid employment
figures. In Q2, GDP grew by 0.6% quarter-on-quarter, supported by
government and consumer spending. Despite a flat June and varied
sector performances, the U.K. economy seems poised for steady
growth.
In the U.K., the broader market as reflected in
FTSE 250 was down by 2.38% while the large cap FTSE 100 fared
slightly better, edging up by 0.11%. The smaller companies
index declined by 0.66%, the AIM All-Share Index was down by 1.84%
and the Fledgling index was down by 1.01%. Our portfolio performed
better than the broader and smaller indices, declining by
0.71% and after allowing for expenses there was a decrease in
the NAV of 1.13% for the month. Key contributors to performance
included XP Power, Cerillion, Gama, and Games Workshop. We
increased our position in Auto Trader and reduced our holding in
4Imprint, resulting in cash comprising 2.6% of the portfolio at the
end of the month.
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
