Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of Athelney Trust was
187.2p at 31 October 2024.
Fund Manager's
comment for October 2024
The US economy grew at an annualised
rate of 2.8% in Q3 2024, down from 3% in Q2 and below forecasts.
Personal spending surged by 3.7%, driven by a 6% increase in goods
consumption and steady growth in services and while government
spending rose by 5%, net trade showed only a slight
improvement.
In October, the US added only 12,000
jobs, far below expectations and the lowest growth since December
2020, likely impacted by hurricanes in Florida and labour strikes
at Boeing. Job gains occurred in healthcare and government, but
manufacturing and temporary help services lost jobs. The
unemployment rate held steady at 4.1%.
Annual inflation slowed to 2.4% in
September, slightly above forecasts. In September, the Federal
Reserve cut the federal funds rate by 50 basis points to a target
range of 4.75%-5%, signalling a cautious approach to managing
inflation while supporting economic growth.
In the Eurozone, GDP grew by 0.4% in
Q3 2024, the strongest growth in two years, up from 0.2% in Q2 and
surpassing forecasts. Germany's economy expanded by 0.2%, avoiding
recession, while France (0.4%), Spain (0.8%), and Ireland (2%)
experienced solid growth. However, Italy stalled, and Latvia
continued to contract. Year-on-year, GDP rose 0.9%, the highest
since Q1 2023.
The European Central Bank (ECB) cut
its key interest rate by 25 basis points to 3.25% in October to
support the economy, amid ongoing disinflation, as inflation fell
below the 2% target for the first time in over three years in
September. Employment continued to decline, especially in
manufacturing, with significant job cuts in Germany.
In the UK, the economy grew by 0.5%
in Q2 2024, slightly down from initial estimates. Government
spending and exports were revised lower, while investment exceeded
expectations. Manufacturing activity represented by the
Manufacturing PMI fell to 49.9, indicating contraction in factory
activity, as new orders decreased, and businesses hesitated ahead
of the budget.
On the services side, the UK
Services PMI fell to 51.8 in October, below expectations, marking
the slowest growth in the services sector since June. Despite
resilient new business intake and a rise in export sales, firms
reduced backlogs and laid off staff at the fastest rate in 13
months, while cost pressures from salaries and technology services
increased. This is likely due to broad concerns over government
policy, the economic outlook, excess capacity and cost-cutting
pressures.
Global stock markets experienced
declines in October, with the MSCI World Index dropping by 2.04%,
the S&P 500 down 0.99%, and the Nasdaq falling 0.52%. In the
UK, the FTSE 100 fell by 1.54%, while smaller companies fared
similarly with the Small Cap Index down by 1.51%, the AIM All-Share
Index down by 0.45% and the Fledgling Index declining by
2.8%.
Our portfolio declined by 1.0%
during the month with the net asset value (NAV) down by 1.2% for
the month after accounting for all expenses. Notable contributors
to our performance included Treatt, Cake Box, and PayPoint, each of
which saw share price gains of over 8% in October. We reduced our
positions in Games Workshop, Londonmetric, PayPoint and Rightmove
while increasing our stake in NWF. Cash holdings made up 1.9% of
the portfolio 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