TIDMATY
RNS Number : 4101S
Athelney Trust PLC
04 November 2023
Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of Athelney Trust was 186.2p at 31
October 2023.
Fund Manager's comment for October 2023
In spite of the fact that the US economy expanded faster than
expected in the third quarter, the equity risk premium increased
materially in October. This was driven by fears that the
Israel-Gaza war could involve more countries in the Middle East
conflict and also disrupt the supply of oil as voluntary cuts by
Saudi Arabia and Russia are still in place until the end of the
year.
Furthermore, this week's confidence surveys confirmed a soft
growth environment for Europe's major economies with the
manufacturing PMI in contraction territory for the 16th straight
month and the new orders component suggesting continued
manufacturing weakness going forward. The news in the United
Kingdom was only marginally better with the October services PMI
easing further in September. This economic weakness and a
substantial decline in Eurozone inflation prompted the European
Central Bank to hold interest rates at 4%, bringing an end to its
streak of 10 consecutive increases in borrowing costs. Whilst UK
inflation cooled more than expected last month, June's 7.9% reading
remains far higher than the Bank of England's 2% target and UK
business activity contracted in October for the third consecutive
month.
In a recently published survey by Stifel, it was shown that
there are currently 35 investment trusts, investing primarily in
shares, with a dividend yield of 4% or higher. Of these, the survey
highlights those investment trusts, including Athelney, that have
increased their annual dividend payout for at least 20 years in a
row. Most funds comprise investments in the large-cap universe as
they satisfy requirements for yield. However, there are three UK
smaller companies' funds which have made the list this year with
Athelney having the highest dividend yield of 4.9 per cent. The
BlackRock Smaller Companies trust is on a yield of 3.1 per cent and
the Henderson trust on 3.9 per cent with their current higher than
normal yields resulting from poor share price performance over the
past year.
During the month the NASDAQ was down by 2.78% with the
S&P500 faring slightly better, declining by only 2.2%. In fact,
markets globally were under pressure with the MSCI declining during
the month by 2.97%. After a positive month in September, the
FTSE100 was down, declining by 3.76% with the remainder of the
market and in particular, the mid-cap companies substantially down.
The FTSE 250 declined by 6.54%, with the AIM All-Share Index
declining by 6.38%. The Small Cap Index was down by 6.13% and the
Fledgling Index performed slightly better, down by 5.24%.
In periods when there is an increase in the equity risk premium,
as occurred in October, the share prices of growth companies are
affected the most as long dated earnings are discounted. This is
the case for Athelney where in spite of the fact that investment
income is the highest it has been since 2019, the value of the
Athelney portfolio has declined by 6.77% during the month. After
allowing for expenses, including a substantial increase in audit
fees, the NAV reflected a decline of 7.78%.
There were no changes to the portfolio during the month. Our
cash holding at month end was unchanged, comprising 3.2% of the
portfolio.
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 (GBP1.5 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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END
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November 06, 2023 02:00 ET (07:00 GMT)
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