Legal Entity Identifier: 213800ON67TJC7F4DL05
The unaudited net asset value of Athelney Trust was 182.1p at 30 September 2025.
Fund Manager’s comment for September 2025
US growth firmed in Q2, with annualised GDP revised up to 3.8% from 3.3%, driven by stronger consumer spending and business investment. The Federal Reserve cut rates by 0.25 percentage points to 4.00–4.25% and signalled only gradual further easing (likely modest cuts through 2025–26) as services-side inflation remains sticky. Business surveys point to continued expansion but at a slower pace. Order growth has cooled, and firms have less room to lift prices despite higher costs.
Europe edged forward in Q2, with GDP up 0.1% quarter-on-quarter, well below trend. With inflation near the 2% medium-term target, the European Central Bank kept rates on hold and maintained a cautious, meeting-by-meeting approach. Leading indicators were mixed, with manufacturing slipping back into contraction as new orders fell and employment contracted while services expanded on the back of firmer orders and easing cost pressures.
The UK economy grew 0.3% in Q2, slower than 0.7% in Q1. Services remained the main driver, especially IT consulting. Construction also rose, while overall production fell 0.8%, led by a 7.2% decline in electricity and gas supply. Household spending was broadly flat, government spending increased, and overall investment edged higher even as business investment declined. Exports slipped and imports were unchanged. Year-on-year GDP growth was 1.4%. The Bank of England kept rates at 4.0% and slowed bond sales as inflation eased to 3.8% in August. Business surveys indicate manufacturing remains weak and services are growing more slowly amid higher costs and softer confidence.
Global equities rose again in September, led by gains in mega-cap, artificial intelligence (AI) related names, notably NVIDIA, Alphabet (Google) and Tesla. The MSCI World Index advanced by 3.09% on broad developed-market strength. In the United States, the S&P 500 gained 3.53% and the Nasdaq Composite climbed 5.61%. In the UK, large caps also rose, with the FTSE 100 up 1.78%. The FTSE 250 and FTSE Small Cap added 1.90% and 2.97%, respectively. Smaller companies on the Alternative Investment Market (AIM) outperformed, rising 2.50%.
In line with the broader market, our portfolio was up by 0.95% in September. After fees and expenses and paying the interim dividend of 2.4p per share, the Net Asset Value (NAV) declined by 0.82%. We added to our holdings in Fevertree and Rightmove and trimmed our position in Keystone Law Group.
During the month, Treatt received a cash offer of 260p per share from Natara Global (backed by Exponent Private Equity). Among our other portfolio company results, Games Workshop met expectations and raised its dividend. Fevertree reported first-half revenue broadly flat (+2% constant currency) with higher earnings before interest, tax, depreciation and amortisation (EBITDA) supporting a £30m buyback as US distribution normalises. Begbies Traynor reiterated momentum and guided to higher FY26 revenue. Spectra Systems delivered strong first-half growth under its central-bank sensor contract. Dunelm reported steady growth, robust cash generation and cautious optimism for FY26. The largest contributors to performance were AEW UK REIT, Keystone Law Group, and PayPoint, each up more than 5%. Detractors from performance included Spectra Systems, 4imprint, and Games Workshop.
