BlackRock Throgmorton Trust Plc - Portfolio Update
PR Newswire
London, December 14
The information contained in this release was correct as at 30 November 2021. Information on the Company's up to date net asset values can be found on the London Stock Exchange Website at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)
All information is at 30 November 2021 and unaudited.
Performance at month end is calculated on a cum income basis
| One Month % | Three months % | One year % | Three years % | Five years % | |
| Net asset value | -3.6 | -8.3 | 37.0 | 86.0 | 142.4 |
| Share price | -3.2 | -8.9 | 38.8 | 114.4 | 213.8 |
| Benchmark* | -3.6 | -6.4 | 24.5 | 39.6 | 54.0 |
Sources: BlackRock and Datastream
*With effect from 22 March 2018 the Numis Smaller Companies plus AIM (excluding Investment Companies) Index replaced the Numis Smaller Companies excluding AIM (excluding Investment Companies) Index as the Company's benchmark. The performance of the indices have been blended to reflect this.
| At month end | |
| Net asset value capital only: | 913.08p |
| Net asset value incl. income: | 921.91p |
| Share price | 935.00p |
| Premium to cum income NAV | 1.4% |
| Net yield1: | 1.1% |
| Total Gross assets2: | £935.1m |
| Net market exposure as a % of net asset value3: | 118.6% |
| Ordinary shares in issue4: | 101,435,964 |
| 2020 ongoing charges (excluding performance fees)5,6: | 0.60% |
| 2020 ongoing charges ratio (including performance fees)5,6,7: | 1.60% |
1. Calculated using the 2021 interim dividend declared on 26 July 2021 and paid on 27 August 2021, together with the 2020 final dividend declared on 10 February 2021 and paid on 1 April 2021.
2. Includes current year revenue and excludes gross exposure through contracts for difference.
3. Long exposure less short exposure as a percentage of net asset value.
4. Excluding 0 shares held in treasury.
5. Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 November 2020.
6. With effect from 1 August 2017 the base management fee was reduced from 0.70% to 0.35% of gross assets per annum.
7. Effective 1st December 2017 the annual performance fee is calculated using performance data on an annualised rolling two-year basis (previously, one year) and the maximum annual performance fee payable is effectively reduced to 0.90% of two year rolling average month end gross assets (from 1% of average annual gross assets over one year). Additionally, the Company now accrues this fee at a rate of 15% of outperformance (previously 10%). The maximum annual total management fees (comprising the base management fee of 0.35% and a potential performance fee of 0.90%) are therefore 1.25% of average month end gross assets on a two-year rolling basis (from 1.70% of average annual gross assets).
| Sector Weightings | % of Total Assets |
| Industrials | 28.8 |
| Consumer Discretionary | 23.5 |
| Financials | 19.1 |
| Technology | 8.0 |
| Consumer Staples | 6.2 |
| Health Care | 6.2 |
| Telecommunications | 3.3 |
| Basic Materials | 2.5 |
| Net current assets | 2.4 |
| ----- | |
| Total | 100.0 |
| ===== | |
| Country Weightings | % of Total Assets |
| United Kingdom | 92.1 |
| United States | 5.6 |
| France | 1.1 |
| Sweden | 0.9 |
| Australia | 0.7 |
| Israel | -0.1 |
| Germany | -0.3 |
| ----- | |
| Total | 100.0 |
| ===== |
| Market Exposure (Quarterly) | ||||
| 28.02.21 % | 31.05.21 % | 31.08.21 % | 30.11.21 % | |
| Long | 126.8 | 121.3 | 119.4 | 121.3 |
| Short | 1.5 | 1.5 | 2.4 | 2.7 |
| Gross exposure | 128.3 | 122.8 | 121.8 | 123.9 |
| Net exposure | 125.3 | 119.8 | 117.0 | 118.6 |
| Ten Largest Investments | |
| Company | % of Total Gross Assets |
| Electrocomponents | 3.4 |
| Watches of Switzerland | 3.3 |
| Gamma Communications | 3.1 |
| Impax Asset Management | 2.9 |
| IntegraFin | 2.7 |
| Oxford Instruments | 2.7 |
| Auction Technology | 2.6 |
| Dechra Pharmaceuticals | 2.5 |
| Games Workshop | 2.4 |
| YouGov | 2.3 |
Commenting on the markets, Dan Whitestone, representing the Investment Manager noted:
The Company returned -3.6%1 in November, equal to the return of its benchmark, the Numis Smaller Companies +AIM ex Investment Trusts Index, which returned
-3.6%1. November marked the end of the Company's financial year end, a year in which the portfolio delivered a net return of +37%1, significantly outperforming its benchmark by +12.5%1 (net of fees).
The stock market continues to be skittish, oscillating between periods of optimism about recovery, then fear of new covid variants and the macro economy. In November the emergence of the Omicron variant and worries about persistent inflation caused a sell-off in markets globally. Considering the portfolio's net exposure we think the performance this month is a positive outcome, and was aided by some strong stock specific outcomes.
The largest positive contributor to performance was Impax Asset Management, which continued to rise after its positive update in October despite wider market falls. Shares in Electrocomponents (ECM) rose after the group reported strong like-for-like sales growth for the 6 months to September with upgrades to full year guidance despite the current supply chain challenges that are being felt across many industries. The recent success in new customer wins, as peers have struggled with covid disruption and more recently supply challenges, strengthens ECM's market position. Shares in Watches of Switzerland rose after the company delivered another very strong quarterly update, raising their full year estimates for both 2022 and 2023 significantly.
The largest stock specific detractor during the month was Chegg, which fell sharply after announcing that the current school year sign-ups to its service had deteriorated and therefore profits look lower and less dependable. We are disappointed by this and the position is under review as we assess whether this problem is one-off in nature. Many detractors were more about market dynamics than company specifics, for instance Auction Technology Group, although this subsequently reported strong results at the very start of December. Shares in WH Smith fell back on broader concerns around rising Covid cases and the impact on UK consumer spending.
Overall, 2021 is a year characterised by multiple stock market gyrations and rotations, and November delivered yet another one. This type of environment is tricky to explain let alone predict. However, we also think that ultimately it favours those who stick to their core beliefs and don't get too swayed by the constant swings in news-flow and sentiment. That is how we have tried to act through 2021. This proves to us at least that despite the ebb and flow of macro-economics, the Company was able to benefit from holdings in several differentiated companies which continue to deliver on their long-term strategies. Furthermore, we are now beginning to see more dispersion in financial performance and share prices, of companies that are successfully navigating the current environment and those that are beginning to face real problems. We therefore remain confident in the investment cases of our long holdings and are seeing more opportunities to add new short positions to capitalise on dispersion between winners and losers. We thank shareholders for their ongoing support.
1Source: BlackRock as at 30 November 2021
15 December 2021
ENDS
Latest information is available by typing www.blackrock.com/uk/thrg on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager's website nor the contents of any website accessible from hyperlinks on the Manager's website (or any other website) is incorporated into, or forms part of, this announcement.
