Net Asset Value(s)

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 178.8p at 31 October 2025.

Fund Manager's comment for October 2025

The US economy expanded at a 3.8% annualised pace in Q2 2025, its strongest run since 2023. Growth was lifted by robust consumer spending and higher business investment. Inflation edged up to 3.0%, mainly due to firmer energy prices, while underlying price pressures continued to ease. The Federal Reserve trimmed rates by 25 bps to a range of 3.75-4.00%, responding to a softer jobs market. Overall, the US remains on solid footing, though the Fed is expected to ease policy gradually to keep both growth and inflation in balance.

In the Eurozone, annual GDP rose 1.3%, showing resilience despite weak trade. Inflation eased to 2.1%, near the ECB's target, as energy prices fell and core inflation held at 2.4%. Manufacturing activity stabilised, and services recorded the fastest growth since August 2024, supported by rising new orders and job creation. Overall, growth remains modest yet stable, giving the ECB room to delay rate cuts.

The UK economy grew by 0.3% in Q2 2025 over the previous quarter, supported by services and construction, while manufacturing output contracted. Consumer and government spending rose modestly, though business investment fell 1.1%. Exports weakened slightly, leaving annual GDP up 1.4%. Inflation held steady at 3.8% in September, with higher transport and hospitality costs offset by easing food and energy prices, core inflation eased to 3.5%. Recent business surveys indicated signs of stabilisation in the industrial sector and modest growth in services. Companies reported improving order pipelines, better cost control, and early signs of renewed confidence ahead of the November Budget, suggesting that economic momentum may be starting to firm into year-end.

Global equities rose in October, albeit at a slower pace than in the previous month, led once again by mega-cap, AI-related names such as NVIDIA, Microsoft and Amazon. The MSCI advanced by 1.7% on broad developed-market strength. In the United States, the S&P 500 gained 2.3% and the Nasdaq Composite climbed 4.8%. In the UK, large caps rose strongly on higher oil prices and a weaker pound, with the FTSE 100 up 3.9%. The FTSE 250 and FTSE Small Cap added 0.7% and 2.2%, respectively, while AIM stocks underperformed, declining by 1.8%.

Our portfolio declined by 1.17% and after providing for fees and expenses the Net Asset Value (NAV) declined by 1.8%. During the month, we initiated a new position in Boku (LSE: BOKU), a global mobile and online payments platform providing direct carrier billing and digital wallets in over 90 countries. The company's capital-light model, network effects, recurring revenues, and disciplined management align well with our investment philosophy. We added to our holdings in Begbies Traynor and Dunelm, while reducing positions in Auto Trader and Treatt.

In October 2025, RELX reported 7% underlying revenue growth for the first nine months, reaffirming guidance and highlighting strong demand across its data and analytics divisions. Dunelm delivered a robust Q1 update, maintaining sales momentum and healthy gross margins. Liontrust Asset Management recorded £1.2 billion in net outflows, with AUM declining to £22 billion, though management noted improving sentiment. S&U posted a 22% profit increase, driven by better credit quality and strong growth in bridging finance. The largest contributors to portfolio performance were Games Workshop, Cake Box, and S&U, each gaining over 5%, while PayPoint, Liontrust, and Spectra Systems were the main detractors.

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)

 https://flagshipinvestments.com.au

· ECP Emerging Growth (ASX code: ECP)

 https://ecpam.com/emerging

· Global Masters Fund Limited (ASX code: GFL)

 www.globalmastersfund.com.au

· Athelney Trust plc (LSE code: ATY)

 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