4th Mar 2016 11:44
LONDON (Alliance News) - Athelney Trust PLC reported a rise in its net asset value in 2015, along with a hike to its dividend payout, in what it called "a year of shocks and surprises".
The trust, which invests in small companies and junior markets, said its net asset value rose to 245 pence per share as at December 31 from 228 pence at the end of 2014.
The group hiked its full year dividend by 18% to 7.9 pence per share from the 6.7p paid out a year earlier.
Athelney Trust said the dividend and net asset value combined gave a total return of 10%, up from 6.5% the previous year, after "shocks and surprises" over the year, the upshot of which in stock market terms was "surprisingly good with one major exception - London".
"Three of the most obvious risks to 2016 are, first: low interest rates have created credit bubbles in emerging markets that could now deflate; second, asset managers have been buying longer-term bonds with greater credit risk to increase income. Rising interest rates could cause substantial losses for such managers and their clients," Chairman Manny Pohl said.
"Third, before the crisis, asset managers and banks placed spare cash in money market funds but, recently, this money has flooded onto the balance sheets of banks and the Fed itself. Rising interest rates could cause this flood to reverse with completely unpredictable results. As far as equities are concerned, it would be no great surprise to see small caps outperforming blue-chips again and, in doing so, register another unspectacular but acceptable rise," Pohl added.
Shares in Athelney Trust were up 2.2% at 230.00 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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