Net Asset Value(s).

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 170.3p at 30 April 2025.

Fund Manager's comment for April 2025

The US economy contracted by 0.3% in Q1 2025, its first decline since early 2022 and below market expectations for modest growth. The downturn was driven by weaker consumer spending and a sharp drop in federal expenditure, though fixed investment remained robust. Export demand deteriorated due to tariff pressures, and business confidence hit a near one-year low. The services sector also slowed amid weaker new orders and a spike in job cuts, mainly due to government downsizing. Inflation continued to ease in March, with headline CPI falling to 2.4%. The Federal Reserve held rates at 4.25%-4.5%, citing tariff-related inflation risks but maintained guidance for 50bps of rate cuts in 2025.

Eurozone GDP grew by 0.4% in Q1 2025, a modest acceleration marking continued economic recovery and unemployment dipped to a record low of 6.1% in February. The ECB cut key interest rates by 25bps in a widely anticipated move, citing progress in bringing inflation sustainably back towards its 2% target. The Manufacturing PMI rose slightly in April, its highest in over two years, while the Services PMI slipped, marking the first contraction since late 2024. Business sentiment also declined sharply, reaching a near five-year low.

In the UK, the Bank of England kept the Bank Rate unchanged at 4.5% in March, but stressed that any easing would be gradual, especially with inflation expected to rise to 3.75% by Q3 despite lower energy prices. The Monetary Policy Committee highlighted trade tensions and geopolitical risks as key threats. Manufacturing remained under pressure, particularly in metals and transport, while services growth was modest. Consumption and public spending offered limited support, offset by declines in trade and investment. April PMI data echoed this sluggish outlook with falling manufacturing output and rising job losses and a decline in the services PMI. Global uncertainty and weak domestic demand further dampened business confidence and hiring.

The global equity markets rebounded in late April when President Trump announced a 90 day pause on reciprocal tariffs. The MSCI World and Nasdaq were up in the month by 0.7% and 0.9% respectively, while the S&P 500 declined by 0.8%. In the UK, the FTSE 100 fell 1%, the FTSE250 rose 2.1%, and the Small Cap Index and AIM All-Share rose 0.6% and 1.3% respectively. The Fledgling index underperformed and was down 1.3% for the month.

Our portfolio rebounded in April, with the portfolio up by 1.3%.  After providing for all the expenses and the payment of a 7.6p dividend, the NAV declined by 3.6%.  During the month, we reduced our holdings in Rightmove, Games Workshop and Tritax Big Box. The largest contributors to performance were Games Workshop, Dunelm and PayPoint all rising by over 5%. The largest detractors from performance were 4Imprint, Impax Asset Management and Treatt.

The board announced a significant change to the fee model, aligning asset manager compensation entirely with fund performance. Under the revised arrangement, no annual management fee will be charged unless the portfolio produces positive absolute returns over the year, reinforcing confidence in the fund's investment strategy.

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