BLACKROCK THROGMORTON TRUST PLC (LEI:
5493003B7ETS1JEDPF59)
All information is at 30 September
2017 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 |
-0.3 |
5.7 |
31.3 |
73.4 |
145.5 |
Share price |
-0.3 |
4.3 |
34.8 |
68.5 |
156.6 |
Benchmark* |
1.0 |
4.7 |
20.2 |
43.5 |
91.4 |
Sources: BlackRock and Datastream
*With effect from 1 December 2013
the Numis Smaller Companies excluding AIM (excluding Investment
Companies) Index replaced the Numis Smaller Companies plus AIM
(excluding Investment Companies) Index as the Company’s benchmark.
The five year period indices have been blended to reflect this.
At month end |
Net asset value capital
only: |
523.23p |
Net asset value incl.
income: |
529.93p |
Share price |
441.25p |
Discount to cum income
NAV |
16.7% |
Net
yield1: |
1.9% |
Total Gross
assets2: |
£387.5m |
Net market exposure as
a % of net asset value3: |
109.2% |
Ordinary shares in
issue4: |
73,130,326 |
2016 ongoing charges*
(excluding performance fees5,6: |
1.1% |
2016
ongoing charges* ratio (including performance
fees)5,6,7: |
1.3% |
*Ongoing Charges: The recently announced management fee rate
reductions, as detailed in the notes below, will impact management
fees in 2017 and onwards. As a result, the 2016 Ongoing
Charge figures above should not be used as a guide to future
costs. The impact of the new fee arrangements, assuming the
same level of performance from the manager and assuming all other
charges remain the same, would be to reduce the level of Ongoing
Charges borne by the trust.
1. Calculated using 2017 interim dividend declared on 24 July 2017 and 2016 final dividend declared on
6 February 2017.
2. Includes current year revenue and excludes gross exposure
through contracts for difference.
3. Long positions less short positions as a percentage of net
asset value.
4. Excluding 7,400,000 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 2016.
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 arrangements for the Company will
change. The annual performance fee will be calculated using
performance data on an annualised rolling two year basis
(previously, one year) and the cap on annual performance fees will
be reduced to 0.9% of two year rolling average month end gross
assets (from 1% of average annual gross assets over one year).
Additionally, the Company will accrue this fee at a rate of 15% of
outperformance (from 10%). The maximum annual total fee
(comprising the base management fee and the performance fee) will
therefore fall to 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 |
32.3 |
Financials |
19.0 |
Consumer Services |
17.4 |
Consumer Goods |
10.9 |
Basic Materials |
7.2 |
Health Care |
5.3 |
Technology |
4.3 |
Oil & Gas |
2.7 |
Net current assets |
0.9 |
|
----- |
Total |
100.0 |
|
===== |
Market Exposure (Quarterly)
|
30.11.16
% |
28.02.17
% |
31.05.17
% |
31.08.17
% |
Long |
116.9 |
121.4 |
117.3 |
115.3 |
Short |
8.5 |
6.7 |
6.1 |
5.8 |
Gross exposure |
125.4 |
128.1 |
123.4 |
121.1 |
Net exposure |
108.4 |
114.7 |
111.2 |
109.5 |
Ten Largest
Investments |
|
Company |
% of
Total Gross Assets |
|
|
CVS Group |
3.4 |
Dechra
Pharmaceuticals |
2.9 |
4imprint Group |
2.7 |
Ibstock |
2.2 |
Hill & Smith |
2.1 |
Johnson Service
Group |
2.1 |
Melrose Industries |
2.1 |
Big Yellow |
2.0 |
Accesso Technology |
2.0 |
Ascential |
2.0 |
Commenting on the markets,
Mike Prentis and Dan Whitestone, representing the Investment
Manager noted:
During September the Company’s NAV per share fell by 0.3% to
529.93p on a cum income basis, whilst our benchmark (the Numis
Smaller Companies excluding AIM (excluding Investment Companies)
Index) rose by 1.0%; the FTSE 100 Index fell by 0.8% (all
performance figures are with income reinvested and net of ongoing
charges and any applicable performance fees).
Stock selection was the primary driver of underperformance
during the month, while sector allocation also detracted
modestly.
The underperformance during the month was predominantly driven
by a reversal in the share prices of a number of our recent strong
performing holdings. A change in market sentiment towards value
over growth, coupled with foreign exchange moves saw our holdings
in 4imprint, Fever-Tree and Advanced Medical Solutions all detract
during the month, despite no stock specific newsflow. The largest
single stock detractor during the month was UP Global Sourcing
which fell after the company issued a trading statement warning of
a tougher outlook for retailers and therefore revenue growth for
the full year being unlikely as retailers are exercising caution
with regard to non-food buying.
Short positions were a modest detractor in September, with a
number of our shorts rising on the back of the market rise.
Ticketing technology solutions provider Accesso was the largest
contributor during the month. The company reported solid interim
results showing continued momentum in the business, growing
revenues organically while recent acquisition Ingresso also showed
strong growth. Veterinary surgery operator CVS Group reported
strong full year results, delivering profit and revenue growth
ahead of expectations, with a number of brokers putting through
upgrades on the back of this continued delivery. Johnson Service
Group’s interim results showed continued strong organic revenue
growth, while the successful integration of recent acquisitions
resulted in brokers to upgrade Earnings Per Share forecasts. Chief
Executive Officer Chris Sander
announced his decision to retire in the first half of 2018, after
33 years with the group, however he leaves at a time when the
business is in good shape, with a strong balance sheet to support
the current strategy.
Activity during September included a purchase in SuperGroup, the
distinctive fashion retailer behind the Superdry brand. We further
reduced some of our domestic exposed holdings and added to Melrose
Industries and Hill & Smith.
16 October 2017
ENDS
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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.