Net Asset Value(s).

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 178.5p at 31 May 2025.

Fund Manager's comment for May 2025

In the U.S, the economy contracted by 0.2% (annualized) in Q1 2025, marking it the first GDP decline in three years. The slight upward revision from the initial 0.3% drop was supported by a 7.8% surge in fixed investment, the strongest since the middle of 2023. However, consumer spending slowed to 1.2%, its weakest pace since the middle of 2023 as did federal spending which declined by 4.6%. Imports rose 42.6%, driven by businesses and consumers stockpiling ahead of new Trump administration tariffs. The Federal Reserve held rates steady at 4.25%-4.50% in May for the third consecutive meeting, as expected. The Manufacturing PMI dipped in April, indicating a contraction in manufacturing while the Services PMI rose in May, reflecting moderate expansion.

In the Eurozone, GDP rose 0.3% in Q1, the fifth straight quarter of growth, though slightly below the 0.4% preliminary estimate. The expansion was driven by stronger domestic demand, aided by easing inflation, lower borrowing costs, and fiscal loosening in Germany. Input costs rose moderately, and overall business sentiment was at its lowest level since September 2022.

In the UK, the economy expanded by 0.7% in Q1, its best quarterly performance in three quarters and ahead of the 0.6% forecast. Growth was led by the services sector, especially administrative support (+3.3%) and retail trade (+1.5%). Industrial production rose 1.1%, while construction remained flat. Net trade contributed positively with household consumption edging up by 0.2%. Despite the strong headline figure, manufacturing sentiment remained weak, with the CBI survey showing further declines in output and new orders coupled with rising input cost pressures. The Services PMI inched up in May, signalling modest growth, though demand remains fragile and cost pressures persist. Business confidence showed a slight improvement.

Global equity markets rebounded strongly in May following April's tariff-related uncertainty. Major indices posted solid gains, with the MSCI World up 5.7%, the S&P 500 rising 6.2%, and the Nasdaq surging 9.0%. In the UK, the FTSE 100 gained 3.3%, the FTSE 250 rose 5.8% while the Small Cap and AIM indices advanced 6.0% and 8.1%, respectively. The Fledgling index outperformed, climbing 8.2% over the month.

Our portfolio performed well in May, with a Total return of 5.5%. After allowing for expenses the Portfolio NAV increased by 4.8%. During the month we sold our remaining holding in Tritax Big Box, reduced our holdings in Begbies Traynor, Fevertree Drinks, RELX and Games Workshop. We started a new position in Keystone Law Group which is a UK based law firm with a tech enabled platform model, allowing self-employed lawyers to deliver flexible, high-quality legal services. The largest contributors to performance were Impax Asset Management, Alpha Group and AJ Bell all rising over 10%. The largest detractors from performance were Auto Trader, National Grid and NWF Group.

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

·     ECP Emerging Growth (ASX code: ECP)

AUD37m https://ecpam.com/emerging

·     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