BlackRock Throgmorton Trust Plc - Portfolio Update
PR Newswire
LONDON, United Kingdom, August 12
The information contained in this release was correct as at 31 July 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 July 2025 and unaudited.
Performance at month end is calculated on a cum income basis
| One | Three | One | Three | Five |
Net asset value | 0.2 | 9.2 | -5.5 | 9.4 | 27.5 |
Share price | 0.7 | 11.1 | -8.3 | 1.4 | 16.0 |
Benchmark* | 0.7 | 11.6 | 2.5 | 10.7 | 39.9 |
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: | 653.85p |
Net asset value incl. income: | 665.72p |
Share price | 601.00p |
Discount to cum income NAV | 9.7% |
Net yield1: | 3.0% |
Total Gross assets2: | £509.3m |
Net market exposure as a % of net asset value3: | 108.0% |
Ordinary shares in issue4: | 76,506,864 |
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 paid on 11 April 2025, together with the Interim Dividend declared on 01 August 2025 payable on 05 September 2025.
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 26,703,000 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 | 33.1 |
Financials | 29.1 |
Consumer Discretionary | 6.0 |
Basic Materials | 5.8 |
Consumer Staples | 5.5 |
Technology | 5.4 |
Health Care | 3.4 |
Real Estate | 2.6 |
Energy | 1.5 |
Communication Services | 1.2 |
|
|
Net Current Assets | 6.4 |
| ----- |
Total | 100.0 |
| ===== |
|
|
Country Weightings | % of Total Assets |
|
|
United Kingdom | 86.8 |
United States | 9.6 |
Germany | 1.5 |
France | 0.7 |
Australia | 0.7 |
Italy | 0.7 |
|
|
| ----- |
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 |
|
|
Boku | 3.4 |
XPS Pensions Group | 3.2 |
Tatton Asset Management | 3.1 |
Morgan Sindall | 2.9 |
Rosebank Industries | 2.9 |
IntegraFin | 2.8 |
GPE | 2.7 |
Genuit | 2.4 |
Rotork | 2.2 |
Chemring Group | 2.2 |
|
|
Commenting on the markets, Dan Whitestone, representing the Investment Manager noted:
The Company returned 0.2% in July, underperforming its benchmark, the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies Index, which returned 0.7%.1
Markets were strong overall in the month with most major indices registering positive returns. Economic data was broadly supportive of continued tepid growth and gradually falling inflation. In the US, President Trump continues to pressure the Federal Reserve (the Fed) to lower rates, while Chairman Powell continues to resist and make the case for central bank independence. Recent revisions to BLS (the Bureau of Labor Statistics) employment numbers in early August may force Powell's hand at the next Fed meeting in September. In the UK, the Government's failure to pass their welfare reforms highlighted their relative weakness and made the path of public finances that much more precarious. As discussed in the June month-end update, this, along with some weaker data and softer company statements has prompted us to change our view on UK domestic cyclicals.
At the risk of sounding like a broken record, M&A (mergers and acquisitions) was once again a headwind during the month, this time it was financial services business, Just Group, which received an offer from Brookfield Wealth Solutions at a 75% premium. Not owning this stock significantly impacted relative performance, and the irony is that a business which cost us 52 basis points of relative performance in July, has subsequently issued a profit warning in August for the precise reason that we chose to avoid buying these shares. Scant consolation, but excluding this impact, the Company performed in-line with the benchmark. Bellway was the second largest detractor, falling in sympathy with other housebuilders on a raft of negative macro and industry data, though a short in another housebuilder mitigated some of this impact. We have moderated our position in housebuilders reflecting the risk that volume recovery will be pushed to the right (again). Similarly, Grafton was caught up in fears on UK macro, but also did issue a trading statement which showed slower trading in the last couple of months in the UK after a positive start to the year. We retain a position in Grafton but at circa half the pervious target weight as whilst we see softer trading near term, we do think the shares offer compelling value on a recovery earnings basis.
Turning to positives, the portfolio did benefit from one of our holdings being a recipient of M&A activity, as Alpha Group International, the FX solutions business, received a bid from US listed digital payments business Corpay. The second largest contributor was localised payments solutions provider, Boku, which upgraded full year guidance as a result of the ongoing shift from traditional card based transactions to Local Payment Methods, which has seen Boku's total payment volume increase to over US$7 billion. Shares in Tatton Asset Management continued to rise during the month following strong results in June and benefiting from strength in equity markets.
July was another busy month for the Company. As discussed, we have changed our view on UK domestic cyclicals and reflected this in positioning in the month. We have reduced our long exposure and added additional shorts across a range of names and industries. We have significantly reduced exposure to housebuilders, suppliers to housebuilding as well as RMI (repair, maintenance and improvements) exposed companies, as we see too much forecast risk on a 6-12 month view. We are still finding many compelling opportunities, just outside of the domestic cyclical bucket.
Outside the UK we have seen a strong results season for the positioning of the portfolio, and we have seen several key investment themes and positions validated through company reporting. As mentioned in the June update, this is an area we have been adding to in recent weeks and non-UK exposures is now c.12%.
We ended the month with the gross at c.117% and the net at c.108%.
We thank shareholders for your ongoing support.
1Source: BlackRock as at 31 July 2025
12 August 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.
