Net Asset Value(s)

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 188.9p at 31 July 2025.

Fund Manager's comment for July 2025

In the United States, the economic picture took another turn. After contracting in Q1, the US economy rebounded with an annualised 3% GDP growth in the June quarter. While this headline figure looks impressive, the quality of the growth is more nuanced as a large part of the rebound came from a sharp drop in imports as businesses and households had front-loaded purchases earlier in the year in anticipation of further tariffs. The Federal Reserve opted to hold rates steady for a fifth consecutive meeting.

The Eurozone posted modest growth of just 0.1% in Q2, reflecting a hesitant recovery amid persistent trade friction and fragmented performance among member states. Germany and Italy contracted slightly, while Spain and France saw modest expansions. The ECB kept interest rates unchanged, effectively pausing its easing cycle, having delivered eight rate cuts over the past year.

Taking the same stance as other central bankers, the Bank of England maintained the Bank Rate at 4.25%. This was against an economic backdrop that remains fragile, headline inflation is stubborn, energy markets remain volatile due to ongoing tensions in the Middle East, and GDP growth, while positive in Q1, lacks broad momentum. Business surveys confirmed this, with both services and manufacturing PMIs softening in July, and confidence subdued across most sectors.

Global equity markets continued to demonstrate resilience in July, navigating ongoing macroeconomic uncertainty with steady gains. The MSCI World Index rose 1.23%, supported by broad-based strength across developed markets. In the US, the S&P 500 advanced 2.17% and the Nasdaq climbed by 3.7%, reflecting sustained investor interest in technology and growth-oriented sectors. Closer to home, UK equities also delivered positive returns, with the FTSE 100 rising 4.24%, while the FTSE 250 and Small Cap indices gained 1.56% and 0.24% respectively.

Turning to our portfolio, we delivered a solid return in July with the portfolio up by 1.1% and the NAV increasing by 0.91% after providing for expenses. During the month we lightened our holding in National Grid and added to our positions in S&U and the Mony Group. Notably, Alpha Group received a takeover offer from US-based Corpay, valuing the company at £1.81 billion, a 55% premium that we view as a strong validation of Alpha's strategic positioning. Cake Box impressed with double digit earnings growth and the acquisition of Ambala Foods, while Auto Trader performed well amid economic uncertainties, bolstered by strong demand, innovative product launches, and a solid competitive position.

In a similar vein, AJ Bell reported strong growth with record net inflows and continued investments in their platform offerings, and AEWU reaffirmed its income strength with a solid NAV and dividend update.

During the month, the largest contributors to performance were Alpha Group, Cake Box, and Begbies Traynor, all rising over 10% during the month. Detractors included PayPoint, Treatt, and Money Supermarket, which faced modest headwinds.

We continue to prioritise companies with strong pricing power, robust balance sheets, and compelling long-term fundamentals. While short-term volatility can be disconcerting, it often creates opportunities for long-term investors with a disciplined mindset.

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