Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of
Athelney Trust was 189.4p at 31 January 2025.
Fund Manager's
comment for January 2025
In the US, the Federal Reserve kept
the fed funds rate steady at the 4.25%-4.5% range during its
January 2025 meeting, in line with expectations. Policymakers noted
that recent indicators suggest that economic activity has continued
to expand at a solid pace. The unemployment rate has stabilized at
4.1%, and labour market conditions remain solid. The U.S. economy
expanded at a 2.3% annualized rate in Q4, bringing the annual
growth rate to 2.8% in 2024. Growth was held back by a slower
stockpiling in inventories, but boosted by solid consumer spending,
both of which may partially reflect a pull forward in demand ahead
of potential tariffs.
The US Manufacturing PMI edged up in
January and signalled a slight improvement in manufacturing
conditions after six months of decline. Factory production rose
marginally for the first time in 6 months, with new orders also
returning to modest growth. The Services PMI fell in January
missing market expectations to mark the softest pace of expansion
in US manufacturing activity since April of last year.
In the Eurozone, the economy
unexpectedly stagnated in Q4, marking its weakest performance of
the year after 0.4% growth in Q3. Unemployment rose slightly to
6.3% in December. The ECB cut interest rates by 25 bps in January
as expected, reflecting easing inflation pressures. This move
reflects the ECB's updated inflation outlook, with price pressures
easing in line with projections. The Services PMI declined
slightly, missing expectations, though activity remained in
expansion. Meanwhile, the Manufacturing PMI surpassed forecasts,
with optimism reaching a seven-month high.
In the UK, the Bank of England kept
interest rates at 4.75% in December, citing inflation risks from
rising wages and price pressures. The UK economy stalled in Q3
2024, with growth revised down from earlier estimates with
unemployment rising to 4.4% between September and November. The
Services PMI edged higher in January but showed only slight
business activity growth, while new orders declined for the first
time in 15 months. Employment continued to fall due to rising staff
costs, and inflationary pressures persisted, driven by wages and
energy costs. Business sentiment remained pessimistic.
The UK Manufacturing PMI rose
slightly in January from December's 11-month low but continued to
indicate worsening conditions. Output contracted for the third
consecutive month, and new orders declined, reflecting weak
domestic and overseas demand. Employment in Manufacturing fell in
January, with job losses accelerating. Inflationary pressures
intensified, with input costs and output charges rising at the
fastest pace in two years.
Global equity markets remained
strong in January. The MSCI World Index gained 3.93%, the S&P
500 rose by 2.7% and the Nasdaq gained 1.64%. In the UK, the FTSE
100 reached a new all-time high rising 6.13%, the best month in
more than two years. Smaller companies were mixed with the FTSE 250
rising 1.59%, the Small Cap Index rising 0.07% and the Fledgling
Index up 1.11%. The AIM All-Share Index struggled however and was
down by 0.21%.
Our portfolio performed well during
the month, up by 2.59% with the net asset value (NAV) increasing by
1.77% after accounting for all expenses. Notable contributors to
performance included 4Imprint, Raspberry Pi, S&U Plc and Alpha
Group, each gaining over 10% during the month. We reduced our
holdings in Cerillion Plc and at month-end cash holdings
comprised 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 (£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
