The
information contained in this release was correct as at
30 June 2024.
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
30 June
2024 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
|
-4.0
|
3.3
|
12.9
|
-21.5
|
26.6
|
Share
price
|
-5.9
|
2.4
|
7.0
|
-31.4
|
15.5
|
Benchmark*
|
-3.2
|
5.0
|
10.0
|
-13.5
|
17.6
|
Sources:
BlackRock and Deutsche Numis
*With
effect from 15 January 2024 the Numis
Smaller Companies plus AIM (excluding Investment Companies) Index
changed to the Deutsche Numis Smaller Companies plus AIM (excluding
Investment Companies).
At month
end
|
Net
asset value capital only:
|
663.98p
|
Net
asset value incl. income:
|
675.31p
|
Share
price
|
601.00p
|
Discount to cum
income NAV
|
11.0%
|
Net
yield1:
|
2.5%
|
Total
Gross assets2:
|
£615.0m
|
Net
market exposure as a % of net asset value3:
|
114.1%
|
Ordinary shares
in issue4:
|
91,071,864
|
2023
ongoing charges (excluding performance fees)5,6:
|
0.54%
|
2023
ongoing charges ratio (including performance
fees)5,6,7:
|
0.87%
|
1.
Calculated using the Interim Dividend declared on 07 July 2023 paid on 29
August 2023, together with the Final Dividend declared on
05 February 2024 paid on 28 March 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 12,138,000 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 2023.
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
|
35.2
|
Financials
|
17.6
|
Consumer
Discretionary
|
16.8
|
Basic
Materials
|
7.4
|
Technology
|
7.2
|
Telecommunications
|
3.8
|
Consumer
Staples
|
2.2
|
Real
Estate
|
2.1
|
Health
Care
|
1.7
|
Energy
|
1.1
|
Communication
Services
|
0.9
|
Net
Current Assets
|
4.0
|
|
-----
|
Total
|
100.0
|
|
=====
|
|
|
Country Weightings
|
% of Total Assets
|
|
|
United
Kingdom
|
91.4
|
United
States
|
4.0
|
Ireland
|
1.7
|
Australia
|
0.9
|
France
|
0.8
|
Netherlands
|
0.5
|
Switzerland
|
0.5
|
Canada
|
0.5
|
Sweden
|
-0.3
|
|
-----
|
Total
|
100.0
|
|
=====
|
Market Exposure (Quarterly)
|
|
|
31.08.23
%
|
30.11.23
%
|
29.02.24
%
|
31.05.24
%
|
Long
|
112.7
|
111.3
|
117.9
|
114.9
|
Short
|
4.5
|
3.8
|
3.2
|
2.3
|
Gross
exposure
|
117.2
|
115.1
|
121.1
|
117.2
|
Net
exposure
|
108.2
|
107.5
|
114.7
|
112.6
|
Ten Largest Investments
|
|
Company
|
% of Total Gross Assets
|
|
|
Oxford
Instruments
|
3.1
|
Breedon
|
3.1
|
Gamma
Communications
|
2.9
|
IntegraFin
|
2.7
|
Grafton
Group
|
2.6
|
Rotork
|
2.6
|
Tatton Asset
Management
|
2.6
|
Hill
& Smith Holdings
|
2.6
|
WH
Smith
|
2.4
|
Workspace
Group
|
2.3
|
Commenting
on the markets, Dan Whitestone,
representing the Investment Manager noted:
The
Company returned -4.0% in June, while its benchmark, the Deutsche
Numis Smaller Companies +AIM (excluding Investment Companies) Index
returned -3.2%.1
Markets were
mixed in June, with US indices, on the face of it making positive
returns, but this belies another period of narrowing stock market
leadership. Indeed, the S&P 500 Equal Weighted Index fell by
0.7%, the Russell 2000 fell by over 1%, and both the UK large cap
and mid-cap indices fell between 1% and 2%.
The
macro environment remained volatile, with several mixed data points
to digest coming out of the US. However, the economic backdrop in
the UK continues to improve, with further increases in consumer
confidence (multi-year highs), ASDA Income tracker at 3-year high,
and with elevated savings rates the consumer has money to spend
should they wish. The small retracement in the UK doesn’t seem to
us to be data driven, and therefore more likely to reflect
something of a holding pattern in the weeks leading into the
General Election. The subsequent Labour victory we see as broadly
supportive for the UK, particularly for small and
mid-caps.
Contributors
during the month were spread across a range of companies in various
industries, which demonstrates the breadth of positioning within
the portfolio. Tatton
Asset Management was the largest
positive contributor in June. The company reported strong full-year
results in June, showing double digit growth in net inflows, as
well as growth in clients and IFAs resulting in record AUM for
their financial year. Flexible office space provider
Workspace
rose
after reporting stable occupancy at 90% across its estate along
with continued rental growth of 8%. The group’s portfolio NAV fell
slightly as macro uncertainty and elevated interest rates continued
to weigh on property values. However, with the shares trading at
circa 30% discount to net asset value and the prospect of falling
interest rates amidst an improving economic backdrop we think the
potential for NAV growth and re-rating is significant. Another
notable contributor was from the recent IPO of Raspberry
Pi, a low-cost
manufacturer of single board computers which we think has an
interesting growth opportunity in industrial end markets driven by
IoT (Internet of Things).
The
most disappointing detractor was from YouGov,
the data products, analytics and marketing business, which
delivered a large profit warning citing numerous issues. This is an
incredibly disappointing update from a company we have owned for
over 10 years. To come so soon after a large US acquisition and
management change will always elevate fears, but what we found
particularly unsettling was just how quickly (and sharply) trading
had deteriorated, only a few weeks after management told us it was
improving and their high confidence in their visibility for the
full year. In keeping with our disciplines regarding the severity
of changes in investment thesis we have sold our position entirely.
The only consolation was we had reduced the position ahead of this
warning, but a frustrating development nonetheless. Our holding
in Zotefoams
fell
on no stock specific news, just giving back a little of its recent
strong gains. Shares in Next
15 also fell after
warning of a challenging trading environment impacting the first
four months of the year.
Despite the
modest underperformance in the month, we remained reassured with
the performance of the portfolio during the difficult period, with
June proving a very different month to navigate than May. As
mentioned above, we see Labour’s victory in the General Election as
a positive for our universe. Despite nothing radical in Labour’s
plans, what we should get as a minimum is a period of political
stability, which on a relative basis could be crucial when the rest
of the world is becoming more uncertain, and particularly given the
discounted valuations that many UK small & mid-caps trade on.
One area that we would call out is Labour’s housing framework which
we think is the most comprehensive and supportive for addressing
the long-term issues of supply and planning, so could be a material
positive for our positioning in housebuilders and brick
manufacturers, both areas we have been adding to. The net of the
portfolio is around 112% while the gross is around 116%.
We
thank shareholders for your ongoing support.
1Source: BlackRock
as at 30 June 2024
22 July 2024
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.