Athelney Trust PLC EGM Shareholder Statement (8982M)
January 11 2019 - 10:00AM
UK Regulatory
TIDMATY
RNS Number : 8982M
Athelney Trust PLC
11 January 2019
11 January 2019
Dear Shareholder
Athelney Trust Plc - EGM 22 January 2019
Please find enclosed Robin Boyle's statement ahead of the EGM to
be held on 22 January 2019.
By way of additional background information, the Board also
enclose a copy of the Citywire Interview completed by Robin Boyle
on the 7 January.
https://citywire.co.uk/investment-trust-insider/news/small-cap-veteran-boyle-seeks-to-oust-board-of-athelney-trust/a1188425
Yours faithfully
John Girdlestone
Company Secretary
Dear Fellow Shareholders
I am writing to you ahead of the General Meeting on 22 January
2019 when we will all be voting on certain resolutions that I have
proposed. The purpose of this letter is to explain my reasons for
calling the GM, and to ask you for your voting support so that we
can maximise value for all shareholders from now on.
I am greatly excited about the proposals and longer term future
for Athelney, which will allow the opportunity to maintain its
shareholder return objectives, including income yield, increase the
size of the Company and reduce the total expense ratio through the
support of an established specialist asset management group,
London-based Gresham House. In addition, the proposals allow a
succession plan to be implemented with my oversight over the next
two years.
As a result of the attractive potential for maximising
shareholder value through growing the trust to a larger size,
maintaining the investment approach, reducing the expense ratio and
overseeing a managed succession, all with the support of Gresham
House, I request that:
- You vote AGAINST Agenda item one (Box 1 on the proxy form supplied by the Company)
- You vote FOR Ordinary Resolutions 1-8 (Boxes 2-9 on the proxy form)
Ahead of the GM, a number of shareholders have irrevocably
undertaken to support my proposals which, together with my
shareholding of 20.5%, represent approximately 31.8 % of total
shareholder votes.
Current Position
I believe that the appointment of Emmanuel Pohl as Athelney's
fund manager is inappropriate and is not in the best interests of
all shareholders. Emmanuel Pohl is based in Australia and lacks the
relevant experience with no long-term successful performance track
record in UK equities. His Australian investment company has only
ever managed a very small portfolio of UK growth shares during a
period when it has been relatively easy to do so, whilst Athelney
is an income yield and value portfolio - very different indeed.
Emmanuel Pohl has also appointed his son, Jason (aged 29), as
his alternate director and is involving him within Athelney's
investment process, which prompts wider questions around corporate
governance and company culture.
As an example, the first new purchase made was Rightmove, a GBP4
bn FTSE 100 company with a dividend yield of 1.5 per cent and a P/E
ratio over twenty - an entirely inappropriate investment for
Athelney's mandate. The current board has allowed such
inappropriate process and oversight to occur and this is not in the
interests of shareholder value.
I highlight that contrary to certain recent assertions made by
the current board:
-- I did not resign from the board - I stood down as MD and Fund
Manager but was willing to stay on the Board as a non-executive
director.
-- Put option (i.e. the ability to sell my Athelney shares to
Global Masters Fund who have first refusal on any sale ) - I have
this option, but have absolutely no intention of doing so. On the
contrary, I am extremely excited about Athelney's potential
alongside Gresham House (further detail of which is set out below)
and have every intention of remaining a significant
shareholder.
The Future
I have successfully managed Athelney for 24 years and firmly
believe "value" as a philosophy has proven to be an approach which
generates longer term superior performance.
Following the recent developments I was pointed in the direction
of Gresham House, a quoted specialist asset management group with a
credible management team. Gresham House has substantial financial
resources and a track record of investing its own balance sheet in
its funds. Gresham House is based in London and has administration,
compliance, accounting and distribution capabilities.
It has become clear the potential value-add they could bring to
Athelney. We have the joint ambition to build Athelney into a
larger investment trust which would continue with its present
investment strategy of investing in small caps and retaining its
progressive dividend policy (15 consecutive dividend increases).
Raising new capital and outsourcing some administration matters
would drive down costs, and be in the long-term interests of all
shareholders. Gresham House has the ability to support a management
transition over the next two years.
Athelney needs a refreshed board to provide the required
stewardship, and as such I propose the following individuals be
appointed at the GM. They both have extremely relevant experience
and I believe they will make excellent directors of Athelney:
-- David Lawman (aged 70) - David is Head of Corporate Broking
at Daniel Stewart & Company, a London based corporate finance
and stockbroking firm.
-- Paul Coffin (aged 41) - Paul is Managing Director and the
largest shareholder of Capital Financial Markets, a private client
investment management firm.
Accordingly please vote:
- FOR Ordinary Resolutions 1-8 (Boxes 2-9 on the proxy form supplied by the Company)
- AGAINST Agenda item one (Box 1 on the proxy form)
-
for the benefit of ALL shareholders.
Robin Boyle Chartered FCSI
8 January 2019
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END
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