Athelney Trust PLC Net Asset Value(s) (2519B)

TIDMATY

RNS Number : 2519B

Athelney Trust PLC

05 June 2019

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 236.3p at 31 May 2019.

Fund Manager's comment for May 2019

The strong start to the year came to an end as the US announced that it would be moving ahead with tariff increases on US imports from China. China responded in like fashion which caused world equity markets to soften during the month. The MSCI World Index, Asia ex-Japan, emerging markets and the S&P 500 all losing more than 6% in USD. US Treasury yields fell, with the markets now pricing in more than three US Federal Reserve (Fed) rate cuts by the end of 2020.

The portfolio performed well during the month in spite of the international and domestic political turmoil with the Prime Minister announcing that she is stepping down on 7 June and the various factions in parliament refusing to back her BREXIT deal. After accounting for expenses, the net affect was an increase in the NAV, up by 0.04% as compared to the FTSE Index which declined by 3.5%, the Small Cap Index which was down by 2.1%, the AIM All Share Index down by 1.7% and the Fledging Index down by 0.4%.

During the month we continued to consolidate our exposure in the Property sector, which is now down to eleven names. Dividends received in the month continue to be as expected and, in some cases, better than expected. We have turned our attention to the other sectors in the portfolio where our focus will be to retain and consolidate 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 over the next five years. To this end, we will continue 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, as well as adding companies which have an acceptable level of predictable growth in the business's medium-term economic performance.

Our position in Samuel Heath was lightened while Air Partner, Charles Taylor, Epwin, James Fisher, Goodwin, Hostelworld, Harworth, Ibstock, Ocean Wilsons, River and Mercantile, Schroder Real Estate and Town Centre were sold. We added to our position in Hill & Smith, Custodian Reit, Londonmetric, Regional Reit and Tritax Big Box, with Gamma Communications, Liontrust Asset Management and National Grid included for the first time.

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

June 05, 2019 06:57 ET (10:57 GMT)