Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of Athelney Trust was
189.4p at 30 September 2024.
Fund Manager's
comment for September 2024
In the United States, the Federal Open Market
Committee (FOMC) announced a 50-basis point cut in the federal
funds rate, bringing the target range to 4.75%-5.00%. This marks
the beginning of a monetary easing cycle, despite robust economic
growth fuelled by strong retail sales and industrial production.
However, indications of weakness in the labour market influenced
the Committee's decision for a more aggressive cut. Chairman Powell
emphasised the necessity to recalibrate policy in light of current
conditions, suggesting that future cuts may be more modest in
magnitude.
In the Eurozone, September's manufacturing and
services PMIs were underwhelming, with both output and new orders
showing signs of weakness. The manufacturing PMI dropped to 44.8,
the lowest level since December 2023, indicating continued
contraction in the industrial sector. This decline was
characterized by reduced new orders and order backlogs. Among major
economies, German manufacturing was particularly weak, while
France's manufacturing PMI showed relative stability.
On the services front, the Eurozone PMI fell to
50.5 in September, marking the eighth consecutive month in
expansion territory, yet still the lowest reading since February
2024. Here too, new business slowed, with Germany's services PMI
declining and France's services PMI losing some of the momentum
gained during the Olympics in August. Overall, the composite
Eurozone PMI fell to 48.9 in September from 51.0 in August,
representing the first contraction since February.
The European Central Bank (ECB) responded by
cutting its Deposit Rate to 3.50%, acknowledging moderating
inflationary pressures while maintaining a data-dependent approach
for future decisions. The ECB revised its GDP growth forecasts
downward, projecting growth of 0.8% for 2024 and 1.3% for 2025,
while slightly increasing core inflation expectations.
In the U.K., July's GDP figures indicated
stagnation, with declines in both industrial and manufacturing
production. Wage growth also slowed, which may pave the way for
future Bank of England rate cuts, although current wage growth
levels remain elevated. The U.K. economy recorded its second
consecutive month of 0.0% growth in July. Industrial production
surprised on the downside, falling 0.8%, while manufacturing
production dropped 1.0%, nearly reversing June's gains.
The September PMIs in the U.K. also showed a
decline, signalling a more orderly moderation in economic activity.
The manufacturing PMI decreased to 51.5, and the services PMI fell
to 52.8, remaining in expansion territory for the 11th consecutive
month. While new orders and business components saw only slight
declines, price trends were mixed, with service providers' prices
softening and manufacturers' prices rising. This suggests a
continued gradual approach to rate cuts by the Bank of
England.
Global stock markets saw gains in September,
with the MSCI World Index up 1.7%, the S&P 500 rising by 2.3%,
and the Nasdaq increasing 2.7%. In the U.K., the FTSE 100 fell by
1.7% while smaller companies struggled with the AIM All-Share Index
down by 4.2%, the Fledgling index down by 5.0% and the Small Cap
Index down slightly, by 0.04%, Our portfolio declined by 0.5%
during the month and after accounting for expenses and paying our
interim dividend of 2.3p per share, the NAV decreased by 1.9%. Key
contributors to performance included AEW, Gama, Rightmove and Games
Workshop. We sold our position in XP Power and increased our
holding in Alpha Group during the month with cash comprising 1.3%
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 (license 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 a "Dividend Hero" being one of
only a few investment companies that have increased their dividend
every year for 20 years or more. See link
https://www.theaic.co.uk/income-finder/dividend-heroes
Website
www.athelneytrust.co.uk