BlackRock Throgmorton Trust Plc - Portfolio Update
PR Newswire
LONDON, United Kingdom, September 22
The information contained in this release was correct as at 31 August 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 August 2025 and unaudited.
Performance at month end is calculated on a cum income basis
| One | Three | One | Three | Five |
Net asset value | -2.3 | -0.3 | -5.9 | 14.3 | 17.0 |
Share price | -1.2 | 2.7 | -4.1 | 12.6 | 5.6 |
Benchmark* | -0.7 | 3.3 | 3.0 | 14.4 | 30.6 |
Sources: BlackRock and Deutsche Numis
*With effect from 15 January 2024 the Numis Smaller Companies plus AIM (excluding Investment Companies) Index changed to Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies).
At month end | |
Net asset value capital only: | 637.16p |
Net asset value incl. income: | 646.89p |
Share price | 590.00p |
Discount to cum income NAV | 8.8% |
Net yield1: | 3.1% |
Total Gross assets2: | £493.1m |
Net market exposure as a % of net asset value3: | 107.1% |
Ordinary shares in issue4: | 76,231,864 |
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 26,978,000 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 | 32.2 |
Financials | 27.3 |
Basic Materials | 6.4 |
Technology | 5.5 |
Consumer Staples | 5.4 |
Consumer Discretionary | 3.8 |
Health Care | 3.4 |
Real Estate | 2.4 |
Energy | 1.9 |
Communication Services | 1.3 |
Utilities | 1.0 |
Telecommunications | 0.7 |
Net Current Assets | 8.7 |
| ----- |
Total | 100.0 |
| ===== |
|
|
Country Weightings | % of Total Assets |
|
|
United Kingdom | 86.6 |
United States | 9.9 |
Germany | 1.4 |
France | 0.7 |
Australia | 0.7 |
Italy | 0.7 |
|
|
| ----- |
Total | 100.0 |
| ===== |
Market Exposure (Quarterly) | ||||
| ||||
| 30.11.24 | 28.02.25 | 31.05.25 | 31.08.25 |
Long | 111.9 | 117.8 | 108.4 | 113.2 |
Short | 3.4 | 4.9 | 2.8 | 6.1 |
Gross exposure | 115.3 | 122.7 | 111.1 | 119.3 |
Net exposure | 108.5 | 112.9 | 105.6 | 107.1 |
Ten Largest Investments | |
| |
Company | % of Total Gross Assets |
|
|
XPS Pensions Group | 3.3 |
Boku | 3.3 |
Rosebank Industries | 3.1 |
Tatton Asset Management | 2.9 |
Rotork | 2.9 |
Morgan Sindall | 2.8 |
IntegraFin | 2.8 |
Serco Group | 2.7 |
GPE | 2.5 |
Ig Group Holdings | 2.2 |
|
|
Commenting on the markets, Dan Whitestone, representing the Investment Manager noted:
The Company returned -2.3% in August, underperforming its benchmark, the Deutsche Numis Smaller Companies +AIM (excluding Investment Companies) Index, which returned -0.7%.1
Markets across the globe made positive progress in August, supported by solid company reporting and Chairman Powell's remarks at the Jackson Hole symposium suggested an easing of Fed (Federal Reserve) policy and higher chances of rate cuts at the September meeting. Large-caps in the UK lagged broader global developed market equities, albeit still recording a positive month in August. However, UK small & mid-caps ending the month in negative territory amidst a depressing UK economic backdrop and persistent sector outflows.
The largest contributor during the month was Zotefoams. This is a differentiated small-cap UK industrial which specialises in high performance foams, most notably in Nike's high-end running shoes. We have owned Zotefoams for a number of years, and despite ongoing impressive results the shares have fallen materially in the last 18 months or so. Pleasingly, the shares rallied c.50% in August post record results which demonstrated impressive revenue growth and margin strength. The new CEO has put forward a refreshed strategy to accelerate growth and this has started well. Even with the recent rally, the shares only trade on a low teens PE (price to earnings) multiple for a company we think can deliver multiple years of double-digit profit growth from here in our view. Rotork was the second largest contributor. The company released good results in the month, demonstrating accelerating order growth and stronger growth in its target segments. The order strength gives confidence in the continuation of mid-single digit revenue growth for the foreseeable future, impressive given the broader global industrial malaise. The company continues to run with a very conservative net cash balance sheet, continues to buyback shares and trades on a high teens multiple which we think is very attractive given the growth, margin and return profile of the business. It remains a key holding. Oxford Biomedica rallied after the company raised £60 million in a successful placing. The proceeds will be used for investment into strengthening its global CDMO (Contract Development and Manufacturing Organization) network and grow its operations in the US, accelerating medium term growth and improving margins.
Turning to the detractors, shares in Great Portland fell along with other UK domestic assets over fears for the upcoming UK budget amidst weaker macro economic data (weaker growth, higher inflation). It's incredibly frustrating as we think Great Portland continues to demonstrate strong operational progress with rental growth and occupancy. We only heard from the Management team in August, where they raised their rental growth guidance, and it was the most positive message and outlook statement I can recall from this highly regarded Management team. With the shares now trading close to 50% discount to book value, we think there is outstanding value on offer so retain a position. The second largest detractor was Genuit, a leading building products supplier with strong market positions in attractive niches with large regulatory drivers. Despite reporting solid earnings growth year-on-year and upgrading their full year forecasts the shares fell as the company spoke of slight margin dilution despite an impressive volume performance in a flat market volume which really speaks to a tougher environment for costs and pricing. Shares in Morgan Sindall drifted lower during the month, which we can only attribute to profit taking after recent strong share price performance and ongoing concerns around the outlook for the UK, in particular cyclicals and RMI (repair, maintenance and improvement)/construction related businesses. As a reminder, the company recently upgraded guidance, which is underpinned by their high-quality and growing order book.
As stated at the beginning of this update the backdrop remains frustrating with persistent sector outflows which continue to depress valuations. The broader UK economic backdrop offers scant relief with softer growth and higher inflation, as the effects of the Labour tax squeeze on jobs takes more effect. With a rising fiscal black hole and delayed November budget we are left with the depressing prospect of a new potential tax raising initiative on an almost daily or weekly basis which only leads to more uncertainty which will likely weigh on domestic consumption, business confidence and investment. We remain of the view that there is compelling value on offer in the UK small and mid-cap complex but concede there are limited positive catalysts in the near term to stem the sector outflows. M&A (merger and acquisitions) activity is likely to continue at pace as Private Equity and Corporates take advantage of this backdrop, whilst the broader de-equitisation from company share buyback programmes continues.
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 August 2025
22 September 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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