| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 608.30 | 368 |
| Intrinsic value (DCF) | 69.96 | -46 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 16.50 | -87 |
Athelney Trust plc (ATY.L) is a UK-based close-ended equity mutual fund managed by Chelverton Asset Management Limited, focusing on small-cap investments in the UK market. The fund targets companies with market capitalizations below £300 million, listed on the London Stock Exchange (LSE) or trading on AIM/ISDX. Athelney Trust employs a dual investment strategy: investing in undervalued companies with steady profit and dividend growth but low market ratings, and companies trading below their net asset value (e.g., land, buildings, or cash holdings). The fund benchmarks its performance against the FTSE Small Cap Index, emphasizing long-term value creation. Established in 1994, Athelney Trust operates in the competitive UK asset management sector, catering to investors seeking exposure to overlooked small-cap opportunities. Its niche focus on undervalued assets and disciplined investment approach positions it uniquely within the financial services industry.
Athelney Trust plc presents a high-risk, high-reward proposition for investors targeting UK small-cap equities. The fund’s focus on undervalued companies with strong fundamentals or asset-backed balance sheets could yield significant returns if market inefficiencies correct. However, its FY 2024 financials show negative revenue (£-168,748) and net income (£-283,144), reflecting the volatility inherent in small-cap investing. The fund’s low beta (0.28) suggests relative insulation from broader market swings, but its concentrated strategy may limit diversification benefits. A dividend yield of 9.9 GBp per share offers income appeal, though sustainability depends on portfolio performance. Investors should weigh the potential for capital appreciation against liquidity risks and the fund’s reliance on UK economic conditions.
Athelney Trust’s competitive edge lies in its specialized focus on UK small-caps, a segment often overlooked by larger asset managers. Its dual strategy—targeting both steady growers trading at low multiples and deeply discounted asset-rich companies—differentiates it from passive small-cap index trackers. The fund’s active management by Chelverton provides hands-on stock selection, though its performance is highly dependent on the team’s ability to identify mispriced assets. Athelney’s small size (£3.56M market cap) allows agility but limits economies of scale, potentially resulting in higher expense ratios than larger peers. The fund’s benchmark-agnostic approach may appeal to contrarian investors but could underperform during small-cap bull markets. Competitive threats include broader market trends favoring passive investing and larger small-cap funds with more resources for research and liquidity management.