Athelney Trust PLC Net Asset Value(s) (3067V)

TIDMATY

RNS Number : 3067V

Athelney Trust PLC

05 April 2019

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 224.5p at 31 March 2019.

Fund Manager's comment for March 2019

Global markets continued their strong start to the year with most regions up during the month of March. There has been a shift towards defensive and yield-related sectors while cyclicals and financials have come under pressure. The US continued its strong run with the S&P 500 index up 1.8% and the Nasdaq Composite up 2.6%. While equity markets were relatively strong, most of the action was in the debt markets. On 19 March, the US 10-year Treasury note fell below the 3-month Treasury yield. 10-year yields fell to their lowest levels since January 2018 to 2.4%. Dovish comments from the Fed and a moderation in global activity helped drive a fall in longer-term yields.

Other global markets were up but not to the same extent reflecting medium to longer-term concerns about European economic growth. The FTSE was up 2.9% which was reasonable given the uncertainty related to Brexit and the inability of the UK parliament to come up with an agreed solution to leave the EU. Asian markets were strong with China leading the way with one of the strongest performances recorded in March. The Shanghai Comp was up 4.8% in USD terms and the Hang Seng was up 1.5%.

While the investment portfolio declined only slightly (by 0.1%) during the month, Athelney shares went ex-div on 21 March which resulted in the NAV declining by 4.8% as compared with the Small Cap Index which increased by 0.8%, the AIM All Share Index which increased by 0.6% and the Fledging Index which declined by 11.3%.

Dividends received in the month continue to be as expected. Our focus remains on retaining and consolidating our holdings into those quality companies in the portfolio which are unlikely to be disintermediated by technological change and able to maintain or increase their dividend, as well as adding companies which have an acceptable level of predictable growth in the business's medium-term economic performance. To this end we have continued to sell our holdings in companies where there has been a change to the industry structure, the business model, the senior management team or the product/service offering, the occurrence of which will result, in our view, in a deterioration in future profitability and hence dividends. Our positions in XLMedia, Quarto and Hansard Global were sold. No new positions were added.

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 "Portfolio Details".

Background Information

Dr. Emmanuel (Manny) Pohl

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 over AU$1000m under its management including four listed investment companies, three listed in Australia and one in the UK:

   --    Flagship Investments (ASX code:FSI) 

AUD50m https://flagshipinvestments.com.au

   --    Barrack St Investments (ASX code: BST) 

AUD23m www.barrackst.com

   --    Global Masters Fund Limited (ASX code: GFL) 

AUD26m www.globalmastersfund.com.au

   --    Athelney Trust plc (LSE code: ATY) 

GBP5m 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

www.theaic.co.uk/aic/news/press-releases/next-generation-of-dividend-heroes

Website

www.athelneytrust.co.uk

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(END) Dow Jones Newswires

April 05, 2019 06:16 ET (10:16 GMT)