BlackRock Throgmorton Trust Plc - Portfolio Update
PR Newswire
LONDON, United Kingdom, June 25
The information contained in this release was correct as at 31 May 2025. 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 31 May 2025 and unaudited.
Performance at month end is calculated on a cum income basis
| One | Three | One | Three | Five |
Net asset value | 7.0 | 5.5 | -4.6 | 3.9 | 30.1 |
Share price | 6.8 | 4.1 | -6.7 | -2.0 | 15.3 |
Benchmark* | 7.3 | 6.4 | 1.1 | 1.1 | 38.9 |
Sources: BlackRock and Deutsche Numis
*With effect from 15 January 2024 the Numis Smaller Companies plus AIM (excluding Investment Companies) Index to Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies).
At month end | |
Net asset value capital only: | 643.57p |
Net asset value incl. income: | 652.57p |
Share price | 578.00p |
Discount to cum income NAV | 11.4% |
Net yield1: | 3.1% |
Total Gross assets2: | £505.9m |
Net market exposure as a % of net asset value3: | 105.6% |
Ordinary shares in issue4: | 77,531,864 |
2024 ongoing charges (excluding performance fees)5,6: | 0.56% |
2024 ongoing charges ratio (including performance | 0.82% |
1. Calculated using the Final Dividend declared on 20 February 2025 payable on 11 April 2025, together with the Interim Dividend declared on 24 July 2024 paid on 21 August 2024.
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 25,678,000 shares held in treasury.
5. The Company's ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding performance fees, finance costs, direct transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended 30 November 2024.
6. With effect from 1 August 2017 the base management fee was reduced from 0.70% to 0.35% of gross assets per annum. The Company's ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, including performance fees, but excluding finance costs, direct transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended 30 November 2023.
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 | 34.6 |
Financials | 23.4 |
Consumer Discretionary | 9.1 |
Basic Materials | 7.6 |
Technology | 6.7 |
Consumer Staples | 4.5 |
Real Estate | 3.8 |
Health Care | 2.2 |
Communication Services | 1.1 |
Energy | 0.6 |
Telecommunications | 0.3 |
|
|
Net Current Assets | 6.1 |
| ----- |
Total | 100.0 |
| ===== |
|
|
Country Weightings | % of Total Assets |
|
|
United Kingdom | 95.0 |
United States | 3.8 |
Australia | 0.8 |
Canada | 0.4 |
|
|
| ----- |
Total | 100.0 |
Market Exposure (Quarterly) | ||||
| ||||
| 31.08.24 | 30.11.24 | 28.02.25 | 31.05.25 |
Long | 111.7 | 111.9 | 117.8 | 108.4 |
Short | 2.7 | 3.4 | 4.9 | 2.8 |
Gross exposure | 114.4 | 115.3 | 122.7 | 111.1 |
Net exposure | 109.0 | 108.5 | 112.9 | 105.6 |
Ten Largest Investments | |
| |
Company | % of Total Gross Assets |
|
|
GPE | 3.2 |
Grafton Group | 3.0 |
Rotork | 2.9 |
Tatton Asset Management | 2.9 |
Bellway | 2.8 |
Breedon | 2.8 |
XPS Pensions Group | 2.8 |
IntegraFin | 2.7 |
Ibstock | 2.7 |
Morgan Sindall | 2.6 |
Commenting on the markets, Dan Whitestone, representing the Investment Manager noted:
The Company returned 7.0% in May, underperforming its benchmark the Deutsche Numis Smaller Companies +AIM (excluding Investment Companies) Index, which returned 7.3%.
May proved a strong month for most financial assets on the back of better economic data (e.g. US jobs data and CPI), strong company reporting, and of course positive developments on the trade front (US and China slashing their proposed tariffs for 90 days) as Liberation Day chaos has given way to the TACO trade on the belief that tariff impact will be less than initially envisaged. Equity markets responded positively, effectively reversing much of the "Liberation Day" tariff turmoil. Bond markets had a tougher time, with US Treasury yields continuing to widen amidst growing fears over the US fiscal situation alongside a broader global sell-off in long-end bonds. It remains too early to tell what the exact impact of the tariff proposals will be, or where the current US-China 90 day will end. Indeed, is it now simply that tariffs have effectively been bracketed between 10% and 30%? However, as it stands most companies continue to report positively across tech and consumer with little to any impact from the macro and political noise.
The largest positive contributor during the month was Chemring. The shares benefitted from continued outperformance of the Aerospace & Defence sector through the month, driven higher by expectations for the upcoming NATO summit in June. The company has since reported a sharp rise in interim profits with a record order book, reiterating full year guidance. Jet2 continued to rally following strong results at the end of April, signalling an unchanged outlook and announcing a new and substantial share buyback utilising their strong balance sheet. Europe to US passenger data also rebounded to +2% in April after a steep March decline, which helped the shares. Other notable contributors included mobile payments business, Boku and UK domestics Grafton and Great Portland.
The largest detractor during the month was Victorian Plumbing. The company reported solid first half results, but the shares fell significantly on the news that the company is investing in re-launching the MFI homewares brand as a standalone business, as well as downgrades on higher costs in the underlying business. This investment will depress group profits, and while homewares is a much larger addressable market, it is highly competitive with well-established peers. We appreciate Management's long-term vision, but this was a step too far in terms of investment thesis deviation so in line with our process we have exited the position. Against the backdrop of a market up 7% in the month, many other relative detractors were simply shares that failed to keep pace with the strength in the broader market. For example, Tatton Asset Management was the second largest detractor, despite no stock specific news flow, as they remained flat on the month. Similarly, shares in housebuilder Bellway rose a mere 2%, so this was the third biggest detractor to relative performance. Clearly, with no deterioration in the investment case for either of these names we retain our holdings.
We have been surprised by the speed and quantum of the stock market recovery in recent weeks and in hindsight it would have been beneficial to performance to have increased the net during the initial sell-off in March & April. On a more positive note, we are pleased with the trading patterns that many of our longs (and in several cases our shorts) are reporting, which bodes well for longer term returns. Our companies are delivering, and as often is the case it is the times of uncertainty such as these that present the best opportunities for management teams to distinguish themselves and for fundamental analysis to add value. The opportunity set remains rich and compelling, we think we are very much in game, and we look forward to updating you in due course.
The gross and net remain around 111% and 105% respectively reflecting the challenging backdrop facing the market, in particular UK small and mid-caps. However, we continue to believe the valuation opportunity remains compelling and we believe in time, investors patience will be rewarded.
We thank shareholders for your ongoing support.
25 June 2025
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.
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