Athelney Tst. Regulatory News (ATY)

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 236.3p at 31 July 2019.

Fund Manager's comment for July 2019

The ongoing spat between the US and China is clearly affecting the global economy which by all accounts continues to slow faster than expected. In the UK, the Bank of England left interest rates unchanged at 0.75% against a backdrop of this weaker global growth, ongoing trade tensions and an expectation that the UK economy would grow by 1.3% this year, down from a previous projection of 1.5% in May. Furthermore, the Bank's Monetary Policy Committee (MPC), that sets interest rates, indicated that the UK economy was likely to have stagnated in the three months to June. It also warned that a no-deal Brexit would have a negative effect on the economy and trigger a further drop in the value of the pound. The Bank also reduced its outlook for growth in 2020 to 1.3%, from a previous projection of 1.6%.

US Treasury yields continued to soften and the major world markets as represented by the MSCI World Index and the S&P 500 continued to improve, increasing by 0.4% and 1.3% respectively. Once again, performance in the UK market was dominated by large caps, with the FTSE 100 Index increasing by 2.2% while the Small Cap Index declined by 1.0%. The Fledgling Index and the AIM All Share Index both increased by 1.1%. Our portfolio which declined by 0.96% during the month had the effect of causing a 1.1% decline in the NAV.

As previously mentioned, the review of the REITS has been completed and we have commenced consolidating our holdings into those quality companies in the portfolio which are unlikely to be disintermediated by technological change and able to maintain or increase their dividend over the next five years. Furthermore, we have added a few names that have attracted our attention and to this end, we favour quality companies with an acceptable level of predictable growth in the business's medium-term economic performance.

Our position in Cineworld, Record, Jupiter Fund Management and Heath Samuel were sold while we increased our exposure to LXI REIT and Treatt, adding Churchill China, Homeserve and Fevertree Drinks to 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 "Portfolio Details".

Background Information

Dr. Emmanuel (Manny) Pohl

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 (licence no.421704).

www.ecpohl.com

www.ecpam.com

Manny Pohl and the ECP group has over AU$1000m under its management including four listed investment companies, three listed in Australia and one in the UK:

·; Flagship Investments (ASX code:FSI)

AUD50m https://flagshipinvestments.com.au

·; Barrack St Investments (ASX code: BST)

AUD23m www.barrackst.com

·; Global Masters Fund Limited (ASX code: GFL)

AUD26m www.globalmastersfund.com.au

·; Athelney Trust plc (LSE code: ATY)

GBP5m 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 one of only "22 investment companies that have increased their dividend every year between 10 and 20 years - the next generation of dividend heroes" (as at 20/03/2018). See link

www.theaic.co.uk/aic/news/press-releases/next-generation-of-dividend-heroes

Website

www.athelneytrust.co.uk