Net Asset Value(s)

RNS Number : 1248H

Athelney Trust PLC

04 April 2022

 

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 263.9p at 31 March 2022.

Fund Manager's comment for March 2022

Our portfolio performed in line with the UK market and ended the month on a positive note.  However, after providing for the expenses and the dividend the NAV declined by 2.3%.  The portfolio was up by 0.72% for the month as compared to the FTSE 100 which was up by 0.77%, the FTSE 250 Index which increased by 0.37%, the AIM All Share Index up by 0.19% and the Small Cap Index increasing by 1.14%.  The FTSE 100 Index closed the end of the first quarter up by 1.78%, outperforming its European peers largely thanks to the many larger, older and more traditional commodity and energy-related stocks including BP and Royal Dutch Shell which have been benefiting from soaring global oil and metal prices as a result of the war in Ukraine.

The Global markets were also stronger, regaining some of the huge losses reported in previous months with the S&P500 index increasing by 3.58% while the tech heavy NASDAQ increased by 3.41% during the month. While the UK market was up, these indices were down over the quarter by 4.95% and 9.10% respectively. The MSCI was also down for the quarter by 5.53% in spite of recording an increase for the month of 2.52%.  Treasury yields inverted this month for the first time in years, signalling a possible recession while the roller coaster ride for U.S. interest rates continued with interest rate volatility currently well above its average over the past decade and nearing the highs reached during the peak of the COVID crisis in March 2020.

Despite the spread of the omicron coronavirus variant, the British economy grew 6.6% year-on-year in the final quarter of 2021, slightly more than initial estimates of a 6.5% increase and following a downwardly revised growth rate of 6.9% in the third quarter.  The major impetus came from public expenditure which recorded the biggest increase of 10.5%, followed by household spending of 8.1% and then business investment. At the end of 2021, the economy was just 0.1% below its pre-pandemic peak.

 In the commodity markets, Brent crude futures declined from recent highs of around $120 per barrel as International Energy Agency member countries met to discuss a further release of emergency oil reserves.  They had previously agreed on March 1^st to release around 60 million barrels and US president Joe Biden announced a release of 1 million barrels per day for six months starting in May, the largest release ever from the US Strategic Petroleum Reserve.

During the month we sold our holding in JD Sports, continuing to reduce and consolidate the holdings in the portfolio.  Cash currently comprises 5.2% 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 (£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 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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