Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of
Athelney Trust was 186.1p at 31 December 2024.
Fund Manager's
comment for December 2024
The U.S. Federal Reserve announced a
25-basis point cut to the federal funds rate in December, marking
it the third consecutive reduction in 2024 and which brought
borrowing costs down to a range of 4.25% - 4.5%, in line with
market expectations. The Fed also revised its GDP growth
projections upward, now expecting 2.5% growth in 2024 (up from 2%)
and 2.1% in 2025 (up from 2%), while maintaining a 2% outlook for
2026.
The U.S. economy grew at an
annualised rate of 3.1% in Q3 2024, an improvement over the
estimate of 2.8%. Consumer spending accelerated at its fastest pace
since Q1 2023, fuelled by a 5.6% rise in goods consumption and
robust spending on services. Fixed investment also exceeded
expectations, increasing by 2.1% versus a forecasted
1.7%.
However, the manufacturing sector
face numerous headwinds with the U.S. Manufacturing PMI dropping to
48.3 from 49.7 in November, well short of market expectations and
signalling persistent contraction. New orders continued to decline,
pushing production to its lowest level since August 2009, excluding
the pandemic disruptions of Q2 2020. In contrast, the U.S. Services
sector delivered a positive surprise with the Services PMI climbing
to 58.5 from 56.1 in November, reflecting the strongest growth in
over two years. This was driven by rising new orders and
improved confidence tied to expectations of business-friendly
policies under the Trump administration.
In the Eurozone, Q3 2024 GDP
expanded by 0.4% compared to the previous quarter. However, the
manufacturing sector continued to struggle, with the Manufacturing
PMI remaining unchanged in December. This marks two years of
consecutive monthly contractions, driven by a sustained decline in
new orders and the steepest output reductions since
2023.
On a positive note, the Eurozone
services sector also showed resilience, with the Services PMI
rising to 51.4 in December from 49.5 in November. This unexpected
recovery marked a return to expansion, supported by improving
optimism about the 12-month outlook for output.
In the UK. the economy remained
subdued, with GDP growth stalling in Q3 2024. Revised data showed
no growth, down from an initial estimate of 0.1%. The UK Services
PMI improved to 51.4 in December from a 13-month low of 50.8 in
November, exceeding expectations. This reflected modest growth
driven by increased business activity and reduced backlogs.
However, service providers expressed concerns about rising costs,
including higher National Insurance contributions, which weighed on
sentiment and expansion plans.
The UK manufacturing sector saw
further decline, with the Manufacturing PMI falling to 47.3 from 48
in November, marking the sharpest contraction in 11 months.
Production dropped for the second consecutive month as new orders
declined at an accelerated rate.
In December, global equity markets
saw a mixed performance. The MSCI World Index fell by 2.69%, as did
the S&P 500, declining by 2.50%. The Nasdaq bucked the trend,
increasing by 0.48%. In the UK, the FTSE 100 fell by 1.38% while
the broader market as represented by the FTSE250 declining by
0.57%. The smaller companies were mixed with the Small Cap Index
rising 0.61%, the Fledgling Index up 1.87% while the AIM All-Share
Index struggled and was down by 1.76%.
Our portfolio's net asset value
(NAV) decreased by 0.75%. Notable contributors to performance
included Raspberry Pi, Treatt, Wise, and Alpha Group, each gaining
over 5% during the month. Impax Asset Management was the largest
detractor to performance, impacted by the loss of a large mandate.
We reduced our holdings in Gamma Communications and increased our
position in AJ Bell. At month-end, cash holdings comprised 2.5% of
the portfolio.
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