TIDMATY

RNS Number : 2391M

Athelney Trust PLC

04 January 2019

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 226p at 31 December 2018.

Fund Manager's comment for December 2018

The Athelney Trust unaudited NAV continued to decline during December, the seventh month in a row, to 226p, a decline of 5.24% which compares with a 3.61% decline in the FTSE Index, a 7.66% decline in the AIM All Share index and a 4.41% decline in the Small Cap Index. Most other major stock markets around the world declined during the month. The Dow Jones Index declined in US$ by 8.66% and there was a 7.71% decline in the MSCI World Index during the month.

As mentioned in last month commentary, the portfolio continues to be affected by world politics and macro-economic events rather than specific business-related factors. Interest rates have been rising gradually in the US for the last three years with the Fed Funds rate increasing from essentially zero three years ago to almost 2.5% today. While it is not clear how the trade tensions between China and the US will be resolved, it seems inevitable that some concessions will be made but, of course, what happens in Washington now that the Democrats control the House of Representatives makes the eventual outcome totally unpredictable. However, experience has shown that during these trying times one should ensure that the companies in the portfolio are of high quality. Our focus should be on the level of predictability of a business's medium-term future economic performance because the more predictable the future cash flows, the more confident we can be that our forecast investment outcome will be achieved.

To this end we have commenced a program of selling 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, the occurrence of which will result in our view in a deterioration in future profitability and hence dividends. Our positions in Bonmarche Holdings, Communisis, Standard Life and UK Commercial Property were sold. We added to our position in Belvoir Lettings.

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 Objective

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.

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 on 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

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January 04, 2019 05:26 ET (10:26 GMT)

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