TIDMATY

RNS Number : 7095N

Athelney Trust PLC

02 February 2021

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 256.2p at 31 January 2021.

Fund Manager's comment for January 2021

The renewed optimism at the beginning of the financial year was tempered by the announcement by the Prime Minister of a new nationwide lockdown that would once again have a negative impact on the economy which had been struggling to gather momentum in recent months. The impact of previous COVID lockdowns on the economy was clearly evident in recent economic data where December retail sales were only marginally up by 0.3% month-on-month after declining by 4.1% in November and November GDP fell 2.6% month-on-month, primarily due to a fall in service output of 3.4% and industrial output of 0.1%.

The MSCI declined by 1.1% during the month largely due to a weaker US market where the S&P500 also declined by 1.1% on the back of a loss of momentum toward the end of the quarter as economists forecast weaker trading conditions in the first quarter of this year. The FOMC left policy unchanged at its January meeting, keeping the federal funds rate unchanged at near zero while continuing to purchase Treasury securities and mortgage-backed securities. The other major markets performed poorly with the CAC down 2.9% and the DAX declining by 2.1%.

In the UK, markets reflected the sombre outlook for the economy with the FTSE 250 Index closing down by 1.3% over the month. The small cap stocks again performed better than large cap stocks with the Small Cap Index increasing by 0.2% as compared to the FTSE 100 Index which declined by 0.8%. The AIM All Share Index increased by 0.3% while the Fledgling Index was the best performer, increasing by 1.7% during the month.

In spite of a continuing sector rotation between growth and value, our growth-oriented portfolio increased by 0.6%. After allowing for expenses, the NAV increased by 0.4% over the month, an excellent result given current circumstances and market conditions. As we await company announcements on current trading, we have decided to remain fully invested, making no changes to our existing positions during January with cash comprising 3.5% 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 "Portfolio Details".

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 over AU$1500m 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) 

AUD25m www.barrackst.com

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

AUD25m 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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February 02, 2021 04:56 ET (09:56 GMT)