The
information contained in this release was correct as at
30 November 2023.
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 November
2023 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
|
6.4
|
-1.2
|
-2.3
|
-7.7
|
25.3
|
Share
price
|
11.3
|
3.6
|
-0.8
|
-11.1
|
37.3
|
Benchmark*
|
5.9
|
-3.1
|
-6.0
|
-3.4
|
8.3
|
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
performance of the indices have been blended to reflect
this.
At month
end
|
Net
asset value capital only:
|
586.91p
|
Net
asset value incl. income:
|
600.72p
|
Share
price
|
579.00p
|
Discount to cum
income NAV
|
3.6%
|
Net
yield1:
|
2.0%
|
Total
Gross assets2:
|
£575.9m
|
Net
market exposure as a % of net asset value3:
|
107.5%
|
Ordinary shares
in issue4:
|
95,872,161
|
2022
ongoing charges (excluding performance fees)5,6:
|
0.54%
|
2022
ongoing charges ratio (including performance
fees)5,6,7:
|
0.54%
|
1.
Calculated using the 2022 final dividend declared on 10 February 2023 and paid on 31 March 2023, together with the Interim Dividend
declared on 07 July 2023 paid on
29 August 2023.
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 7,337,703 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 2022.
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 2022.
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
|
31.6
|
Consumer
Discretionary
|
23.4
|
Financials
|
14.7
|
Technology
|
8.3
|
Basic
Materials
|
5.8
|
Consumer
Staples
|
3.1
|
Telecommunications
|
3.0
|
Communication
Services
|
2.4
|
Health
Care
|
2.1
|
Energy
|
1.3
|
Real
Estate
|
1.0
|
Net
Current Assets
|
3.3
|
|
-----
|
Total
|
100.0
|
|
=====
|
|
|
Country Weightings
|
% of Total Assets
|
|
|
United
Kingdom
|
94.6
|
United
States
|
3.5
|
France
|
0.9
|
Australia
|
0.8
|
Ireland
|
0.6
|
Sweden
|
-0.4
|
|
-----
|
Total
|
100.0
|
|
=====
|
Market Exposure (Quarterly)
|
|
|
28.02.23
%
|
31.05.23
%
|
31.08.23
%
|
30.11.23
%
|
Long
|
110.3
|
111.7
|
112.7
|
111.3
|
Short
|
2.3
|
3.6
|
4.5
|
3.8
|
Gross
exposure
|
112.6
|
115.3
|
117.2
|
115.1
|
Net
exposure
|
108.0
|
108.1
|
108.2
|
107.5
|
Ten Largest Investments
|
|
Company
|
% of Total Gross Assets
|
|
|
Breedon
|
3.3
|
Gamma
Communications
|
3.0
|
Oxford
Instruments
|
2.8
|
Grafton
Group
|
2.8
|
YouGov
|
2.7
|
4imprint
Group
|
2.7
|
Rotork
|
2.5
|
WH
Smith
|
2.5
|
Computacenter
|
2.4
|
CVS
Group
|
2.4
|
Commenting
on the markets, Dan Whitestone,
representing the Investment Manager noted:
The
Company returned 6.4% in November, outperforming the Company’s
benchmark, the Numis Smaller Companies + AIM (excluding Investment
Companies) Index, which returned 5.9%.
November proved a
strong market for global equity indices. Continued falls in
inflation, combined with further normalisation in the jobs market,
has resulted in a rapid and stark change in narrative from higher
for longer to peak rates and imminent central bank pivot. This has
manifested itself in a sharp fall in the US 10-year, and a broad
rally for equities. Whilst this has worked for us in this most
recent period, it does continue a trend of heightened volatility
within markets as only a few weeks ago it seemed that a hard
recession was inevitable and now the debate is how many interest
rate cuts are priced into 2024! Against this backdrop, the long
book drove performance whilst the short book detracted.
The
largest contributor during the month was Watches of Switzerland. The shares have been very much
front and centre over the last year over concerns around
deteriorating demand and more recently, Rolex’s acquisition of
Bucherer. However, these fears appeared to abate after the company
reported a robust first half and reiterated its long-term growth
plans to more than double sales and profits by 2028, which provided
confidence in the long-term partnership with Rolex. YouGov
continued to rise in November, having reported in-line results in
October without the profit warning which the market had been
expecting, and reiterating full year guidance. While the short book
in aggregate detracted, very much driven by beta (a rising tide
lifting all boats), the third largest positive contributor from
performance came from a short position in a risk and compliance
software business which issued a profit warning, reporting a loss
in the first half of 2023 and increase in working capital outflows,
cash exceptional charges and net debt.
The
biggest detractor was 4imprint, which despite confirming another
upgrade to FY23 (albeit a modest one compared to the usual
double-digit upgrades) the shares fell on commentary that the
company had noticed more volatility in order patterns in recent
weeks. We’ve owned 4imprint for over 10 years as a team and we
believe the market share opportunity remains very compelling.
Shares in Qinetiq fell in response to interim results which showed
profits in-line with expectations, however, the company reported a
slowdown in its recently acquired US business. The third biggest
detractor was from our long position in Indivior, which fell
despite increasing its full year guidance on the back of strong
sales for its key drug Sublocade (monthly injectable to treat
opioid addiction).
November brings
another financial year for the Company to a close. Whilst always
disappointing to report an absolute loss for the period, the
Company was able to outperform the benchmark by +3.7% (net of
fees), generating alpha from both the long and short book, which
reflects continued delivery from our portfolio holdings in
aggregate. The second consecutive year of falls for our benchmark
reflects the extreme negative sentiment towards UK small and medium
sized companies that has resulted in a prolonged period of
outflows. We think our current positioning remains balanced but
constructive and despite the macro driven volatility, stock
specifics are playing an increasingly important role as a driver of
returns which should favour our Investment team and the Company.
Despite a rally in November, mid-cap stocks remain anchored around
12-year low valuations, despite generally robust earnings and
strong balance sheets and indeed exciting long-term growth
prospects. The net of the portfolio is around 106% and the gross is
around 114%.
We
thank shareholders for your ongoing support and look forward to
updating you all in the New Year.
1Source: BlackRock
as at 30 November 2023
21 December 2023
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.