BLACKROCK THROGMORTON TRUST PLC (LEI:
5493003B7ETS1JEDPF59)
All information is at 31 August
2018 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 |
-0.1 |
3.0 |
17.5 |
69.1 |
120.9 |
Share price |
-1.7 |
1.6 |
25.2 |
73.2 |
124.0 |
Benchmark* |
-0.3 |
-0.4 |
3.5 |
30.4 |
58.0 |
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 five year period indices have been blended to reflect this.
At month end |
Net asset value capital
only: |
607.08p |
Net asset value incl.
income: |
613.88p |
Share price |
544.00p |
Discount to cum income
NAV |
11.4% |
Net
yield1: |
1.7% |
Total Gross
assets2: |
£448.9m |
Net market exposure as
a % of net asset value3: |
109.8% |
Ordinary shares in
issue4: |
73,130,326 |
2017 ongoing charges*
(excluding performance fees)5,6: |
0.9% |
2017 ongoing charges*
ratio (including performance
fees)5,6,7: |
2.2% |
*Ongoing Charges: The management fee rate reductions, as
detailed in the notes below impact management fees in 2017 and
onwards. 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 Company.
1. Calculated using the 2018 interim dividend declared on
26 July 2018 and paid on 29 August 2018, together with the 2017 final
dividend declared on 12 February 2018
and paid on 29 March 2018.
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 2017.
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 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 |
31.1 |
Financials |
21.5 |
Consumer Services |
17.9 |
Technology |
9.5 |
Health Care |
7.9 |
Consumer Goods |
7.7 |
Basic
Materials |
3.2 |
Oil & Gas |
1.0 |
Net current assets |
0.2 |
|
----- |
Total |
100.0 |
|
===== |
Market Exposure
(Quarterly) |
|
|
30.11.17
% |
28.02.18
% |
31.05.18
% |
31.08.18
% |
Long |
116.9 |
119.6 |
115.9 |
119.4 |
Short |
6.3 |
8.4 |
10.0 |
9.6 |
Gross exposure |
123.2 |
128.0 |
125.9 |
129.0 |
Net exposure |
110.6 |
111.2 |
105.9 |
109.8 |
Ten Largest
Investments |
|
Company |
% of
Total Gross Assets |
|
|
Ascential |
3.2 |
Dechra
Pharmaceuticals |
3.0 |
Fever-Tree Drinks |
2.9 |
Bodycote |
2.8 |
Hiscox |
2.7 |
SSP |
2.5 |
4imprint Group |
2.4 |
Robert Walters |
2.4 |
Workspace Group |
2.3 |
YouGov |
2.2 |
Commenting on the markets,
Dan Whitestone, representing the
Investment Manager noted:
During August the Company’s NAV per share fell by 0.1%* to
613.88p, outperforming our benchmark, the Numis Smaller Companies
plus AIM (excluding Investment Companies) Index, which fell by
0.3%*; the large cap FTSE 100 Index fell by 3.3%* (all performance
figures are in sterling terms with income reinvested).
August was a challenging month for UK equities with Brexit
fears, escalating trade tensions and disorder in Emerging Markets
clouding the outlook for global growth. This was also a month where
the Company was on the wrong end of a couple of disappointing
updates, notably CVS Group and Hill & Smith. Despite these
stock specific “set backs” and a negative market backdrop, the
Company was still able to outperform the benchmark during August
due to some strong stock specific updates elsewhere in the
portfolio, as discussed below.
Performance during the month was driven by the long book whilst
short positions in aggregate were a modest detractor.
Shares in small-cap wine producer Chapel Down rose on
expectations of a good harvest given exceptional weather conditions
this year, and also on news that respected wine industry players
are buying into the company. Insurance provider Hiscox delivered
positive interim results, beating expectations and provided a
positive outlook statement, reinforcing our conviction in the long
term investment case. 4imprint Group continued to rise following
strong results announced in July, while the strength of the US
dollar provides a further benefit to a business which generates
almost all of its revenues in the US. We also saw a very strong
performance from Xero, an Australian listed accounting software
business which we’ve discussed in previous communications. Other
notable contributors included premium mixer supplier Fever-Tree
which continued to be in demand during the month and e-learning
provider Learning Technologies.
The Company suffered two stock specific disappointments during
the month. First, Hill & Smith fell after the company reported
a fall in first half profits as a result of short-term project
delays in the UK’s road programme. The second was CVS Group, a UK
veterinary practice business, which fell in response to reporting a
small miss against full year expectations on the back of severe
weather earlier in the year, but more importantly some recently
acquired practices performing below expectations. The second point
is the one that matters and the most undermining to our investment
case built in part on CVS’s management’s continued ability to
leverage their network to acquire strategically. We spoke with
CVS’s management on the day to gain a better understanding of the
issues, and they believe these issues have been resolved with
application of tighter controls. Whilst disappointing, we still
believe CVS remain well placed to further consolidate the highly
fragmented UK veterinary market whilst also benefiting from
structural growth in veterinary spending.
In terms of portfolio activity, we’ve added new positions in
Boku and Craneware, whilst increasing our exposure to existing
holdings in Howden joinery, Impax Asset Management, Bodycote and
Robert Walters. Overall, no real
change to portfolio positioning.
*Source: BlackRock as at 31 August
2018
18 September 2018
ENDS
Latest information is available by typing
www.blackrock.co.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.