Net Asset Value(s)

Athelney Trust PLC

Legal Entity Identifier:

213800ON67TJC7F4DL05

The unaudited net asset value of Athelney Trust was 187.2p at 30 June 2025.

Fund Manager's comment for June 2025

The US economy contracted by 0.5% in Q1, marking its first quarterly decline in three years. The downturn was primarily driven by a slowdown in consumer spending and weaker export activity, partially offset by a decline in imports. Government expenditure also fell sharply, while fixed investment remained resilient. The Federal Reserve kept interest rates unchanged at 4.25%-4.50% for a fourth consecutive meeting. Manufacturing activity rebounded in June, with the PMI rising to 52.9, the highest in over three years, supported by improved output and export orders. The services sector remained robust, although export weakness and rising input costs persisted. Business sentiment dipped, reflecting uncertainty surrounding tariffs and trade policy.

The Eurozone economy expanded by 0.6% in Q1, its strongest growth rate since late 2022. Growth was led by Ireland's sharp 9.7% rebound, alongside stronger than expected contributions from Germany and Spain. Investment activity improved, while consumption slowed and government spending remained broadly flat. Net trade made a modest positive contribution. The ECB cut rates by 25 basis points in June, citing improving inflation dynamics, with headline inflation projected to fall to 2.0% in 2025. While growth forecasts were marginally revised down, they remain positive, underpinned by robust labour markets and continued public investment. Manufacturing remained weak, with the PMI at 40.5 in June, marking a 35-month contraction streak, although the pace of decline is easing.

The UK economy grew by 0.7% in Q1, the fastest pace in a year, supported by strength in the services and manufacturing sectors, particularly in transport equipment and ICT related output. Business investment rose strongly by 3.9%, and exports outpaced imports, contributing positively to GDP. However, household consumption rose only modestly, and government spending contracted. Year-on-year growth stood at 1.3%. The Bank of England maintained rates at 4.25%, noting persistent inflation risks and geopolitical uncertainty, particularly around energy prices. Manufacturing activity contracted for a ninth consecutive month, albeit at a slower pace (PMI at 47.7), with weak demand and rising input costs prompting further job cuts. The services sector remained in expansion, with a PMI of 51.3, reflecting modest growth in new business.

Global equity markets continued their upward momentum in June, building on May's strong rebound. Major indices posted further gains, with the MSCI World rising 4.22%, the S&P 500 advancing 4.96%, and the Nasdaq rising 6.57%. In the UK, the FTSE 100 fell -0.14%, while the FTSE 250 increased by 2.85%. The Small Cap and AIM indices gained 3.68% and 3.21%, respectively, with the Fledgling index continuing to outperform, rising 5.13% over the month.

Our portfolio performed well during the month, increasing by 5.10% in June. After providing for expenses, the Portfolio NAV increased by 4.87%. During the month, we added a new holding in Spectra Systems. Spectra Systems is a leader in optical and sensor-based security technology, offering end-to-end systems from specialized materials and sensors to software platforms and fully printed secure products for use in currency, documents, goods, and gaming integrity. The largest contributors to performance were S & U, Begbies and Paypoint, all rising over 10%. The largest detractors from performance were Treatt, Raspberry Pi and Dunelm.

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