Athelney Trust PLC
Legal Entity Identifier:
213800ON67TJC7F4DL05
The unaudited net asset value of Athelney Trust was 183.6p at 31 August 2025.
Fund Manager's comment for August 2025
In the US, growth rebounded in August with Q2 GDP rising 3.3% annualised after a 0.5% Q1 contraction. The upgrade from 3.0% reflected stronger investment and consumer spending, partly offset by softer government outlays and higher imports. Headline CPI held steady at 2.7% in July, while core inflation rose to 3.1% which resulted in the Fed keeping rates at 4.25-4.50% for a fifth meeting.
Europe grew slower in Q2, with GDP rising just 0.1% quarter-on-quarter after increasing by 0.6% in Q1, its weakest pace since late 2023. The moderation reflects earlier activity pulled forward by tariff concerns and lingering uncertainty around US trade policy. Performance varied with Germany and Italy contracting with France, Spain and several smaller economies improving. Inflation remained on target at 2.0% in July, with core inflation at 2.3%. Against this backdrop, the ECB kept its policy rates unchanged, signalling a wait-and-see approach after eight rate cuts.
UK growth moderated but beat forecasts in Q2 2025, with GDP up 0.3% in Q2 after a 0.7% rise in Q1. The BoE delivered a 25bp cut to 4.0%, signalling gradual, data-dependent easing. August PMIs underlined a two-speed UK economy. On the one hand, manufacturing output fell as weak new orders met subdued global demand amid tariff uncertainty with firms reporting faster input cost growth and logistics bottlenecks. Services told a different story with the PMI rising for the fourth straight month and the fastest in a year, fuelled by renewed new orders at home and abroad. Investors, however, are concerned about the UK's fiscal outlook, and this is reflected in the 30-year gilt yield reaching 5.6%, the highest since the late 1990s.
Global equity markets continued to demonstrate resilience in August, with steady gains. The MSCI World Index rose 2.49%, supported by broad based strength across developed markets. In the US, the S&P 500 advanced 1.91% and the Nasdaq up by 1.58%, reflecting sustained investor interest in technology and growth-oriented sectors. Closer to home, large-cap UK equities also delivered positive returns, with the FTSE 100 rising 0.60%. The impact of the recent surge in 30-year gilt yields, which tends to compress equity multiples, especially for smaller companies, was felt by the FTSE 250 and Small Cap indices, which posted negative returns of −1.63% and −2.34% respectively.
In line with broader UK small caps, our NAV total return fell by 2.81% net of fees and expenses. We added to our positions in Auto Trader, Cake Box Holdings, PayPoint and Spectra Systems, businesses we believe combine good economics with sensible prices. We reduced our holding in S&U and exited Alpha Group after it received a takeover offer from US-based Corpay.
During the month, YouGov issued a full year trading update indicating FY25 performance was in line with expectations, with Data Products supported by stable renewals and new customer wins. Other portfolio holdings, including FeverTree, Impax, PayPoint and Rightmove, continued share repurchases which, when done below intrinsic value raise our share of future earnings. The largest contributors to performance were S&U plc, Treatt plc and YouGov, all rising over 5%. Detractors from performance included AEWU REIT, Fever-Tree Drinks and Games Workshop.
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).
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)
https://flagshipinvestments.com.au
· ECP Emerging Growth (ASX code: ECP)
· Global Masters Fund Limited (ASX code: GFL)
· Athelney Trust plc (LSE code: ATY)
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
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