Athelney Trust plc - Statement re Corporate Action

Directors and their advisers will be contacting shareholders directly. Any shareholder wishing to discuss this is invited to contact the Company Secretary - Secretary@AthelneyTrust.co.uk.

The end result should be an enlarged trust with supportive shareholders. One of the benefits of a larger size should mean a reduced ongoing charge figure as fixed costs would be spread over a larger asset base.

A further announcement will be made at the end of this consultation process.

Manny Pohl, Managing Director, Athelney Trust, said "Following the departure of Robin Boyle, who had managed the company since launch, we want to help those investors who wish to exit their holding. At the same time, we will be looking to raise additional funds to invest in line with our stated investment policy. This policy remains to provide shareholders with prospects for long term capital growth, with the risks inherent in small cap investment minimised through a spread of holdings across various industries and sectors, whilst aiming to maintain a progressive dividend yield. The end result should be a fund larger in size than it is at the moment, which should reduce our ongoing charge figure and improve liquidity, without incurring significant issue costs."

 Dr. Emmanuel (Manny) Pohl

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.

Manny Pohl and the ECP group has in excess of AUD1000m under its management including four listed investment companies, three listed in Australia and one in the UK:

·     Flagship Investments (ASX code:FSI)

AUD50m https://flagshipinvestments.co.au

·     Barrack St Investments (ASX code: BST)

AUD23m www.barrackst.com

·     Global Masters Fund Limited (ASX code: GFL)

AUD26m www.globalmastersfund.co.au

·     Athelney Trust plc (LSE code: ATY)

GBP5m 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 on 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 one of only "22 investment companies that have increased their dividend every year between 10 and 20 years - the next generation of dividend heroes" (as at 20/03/2018).