2nd Mar 2020 11:48
(Alliance News) - Athelney Trust PLC said Monday its net asset value rose over 2019, as the market environment was substantially improved following the UK general election outcome, and a strong performance from its portfolio.
Athelney's net asset value per share as at December 31 was 266.9 pence, up 18% from 225.9p the same date the year before.
The trust - which mainly invests in small-cap stocks - posted a GBP824,374 increase in unrealised appreciation from a decrease of GBP1.2 million, bringing the total valuation of its investments to GBP5.5 million, up from GBP4.6 million the prior year.
Athelney said that within the company itself, several elements of uncertainty were resolved, including major shareholder Robin Boyle selling all his shares ahead of the planned timetable, removing the conditions that could lead to extra costs being incurred.
As a shareholder, Boyle was replaced by BIP Worldwide Flexible Fund, from which Athelney expects a more normal cost run-rate.
Athelney produced a portfolio return of 29% for the year, driven by outstanding performances from stocks such as Games Workshop PLC, Liontrust Asset Management PLC and Lok'n Store PLC.
Athelney Trust declared an annual dividend of 9.3 pence per share, up 2.2% from 9.1p the year before.
"Externally, uncertainties have reduced for a UK small-cap fund, particularly around Brexit. Much remains to play out during the next 12-18 months on new trade deals between UK/Europe and UK/US. These can impact sterling, the UK economy, general investor sentiment and so the fortunes of companies in our sector. Time will tell, as it will for the overall impact of the coronavirus which remains hard to assess," said Non-Executive Chair Frank Ashton.
"I emphasise in the meantime that we invest for the long term and strongly believe our UK Smaller Companies focus allied to the fund manager's leading stock evaluation process will return very good to excellent performance in the future. Many have commented that such stocks are underweighted - we expect we will now see further investments in this sector if uncertainty continues to recede," Ashton added.
Shares in Athelney Trust were down 7.5% at 180.30 pence on Monday in London.
By Dayo Laniyan; [email protected]
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