BLACKROCK THROGMORTON TRUST PLC (LEI:
5493003B7ETS1JEDPF59)
All information is at 31 July
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 |
3.5 |
3.9 |
39.0 |
68.4 |
157.3 |
Share price |
3.3 |
8.4 |
43.0 |
68.8 |
174.1 |
Benchmark* |
2.9 |
2.7 |
23.8 |
38.5 |
101.6 |
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: |
513.88p |
Net asset value incl.
income: |
521.13p |
Share price |
439.00p |
Discount to cum income
NAV |
15.8% |
Net
yield1: |
1.7% |
Total Gross
assets2: |
£381.1m |
Net market exposure as
a % of net asset value3: |
112.8% |
Ordinary shares in
issue4: |
73,130,326 |
2016 ongoing charges
(excluding performance fees5: |
1.1% |
2016 ongoing charges
ratio (including performance fees): |
1.3% |
1. Calculated using 2016 interim dividend paid on 19 August 2016 and 2016 final dividend paid on
29 March 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.
Sector
Weightings |
% of Total Assets |
|
|
Industrials |
30.4 |
Consumer
Services |
20.3 |
Financials |
18.1 |
Consumer
Goods |
13.0 |
Basic
Materials |
8.0 |
Health
Care |
4.7 |
Technology |
4.2 |
Oil &
Gas |
2.4 |
Net current
liabilities |
-1.1 |
|
----- |
Total |
100.0 |
|
==== |
Market Exposure
(Quarterly) |
|
|
31.08.16
% |
30.11.16
% |
28.02.17
% |
31.05.17
% |
Long |
114.3 |
116.9 |
121.4 |
117.3 |
Short |
8.3 |
8.5 |
6.7 |
6.1 |
Gross exposure |
122.6 |
125.4 |
128.1 |
123.4 |
Net exposure |
106.0 |
108.4 |
114.7 |
111.2 |
Ten Largest
Investments |
|
Company |
% of
Total Gross Assets |
|
|
CVS Group |
3.0 |
Dechra
Pharmaceuticals |
2.5 |
4imprint Group |
2.4 |
Ascential |
2.1 |
Berkeley Group
Holdings |
2.0 |
Bodycote |
2.0 |
Ibstock |
1.9 |
Big Yellow |
1.9 |
Hill & Smith |
1.9 |
Bellway |
1.9 |
Commenting on the markets,
Mike Prentis and Dan Whitestone, representing the Investment
Manager noted:
During July the Company’s NAV per share rose by 3.5% to 521.1p
on a cum income basis whilst our benchmark (the Numis Smaller
Companies excluding AIM (excluding Investment Companies) Index)
rose by 2.9%; the FTSE 100 Index returned 0.9% (all performance
figures are with income reinvested and net of ongoing charges and
any applicable performance fees).
Stock selection was the primary driver of outperformance during
the month while sector allocation was broadly flat.
Kaz Minerals has benefited from the strength in the copper
price, which it is particularly geared into, but also company
specific factors as their recent statement showed production
running ahead of 2017 guidance. Keywords Studios reported
preliminary results showing strong growth in revenues and profits
driven by continued organic growth as well as positive
contributions from acquisitions. Fever-Tree Drinks rose after the
company reported another strong set of interim results, led by the
UK, which saw sales more than double. The brand’s expansion
overseas, which is key for the company to maintain momentum, has
also been progressing well, particularly in Western Europe and management commented that
the full year results are expected to be “materially ahead of
expectations”.
Safestyle, a company engaged in the sale and manufacture of PVCu
windows and doors, issued its half year trading update warning that
revenue growth for the second half is expected to be modest given
the weaker consumer backdrop. As a result profits for the full year
will be less than previously anticipated and broadly in-line with
2016. Despite the challenging backdrop, with Safestyle’s end market
seeing falling volumes in excess of 10%, the company continues to
grow and take market share.
Activity during July included adding to our holdings in Ultra
Electronics and Accesso, both of which are very international,
while also further reducing some of our domestically exposed
companies.
The long/short portfolio rose 0.6% during the month, with long
positions contributing positively to performance, whilst shorts
were a modest detractor. Within the long book a number of our
holdings provided solid trading updates, including RPC, Ascential,
and Fever-Tree. RPC issued a reassuring statement showing strong
organic growth, M&A (Mergers & Acquisitions) synergies
whilst also benefiting from FX (Foreign Exchange) tailwinds. Media
business Ascential reported strong half year results and increased
the dividend by 20% resulting in broker upgrades. The short book
continued to deliver stock specific successes with one of the
month’s top contributors coming from a UK construction company that
fell more than 70% on the back of reduced financial guidance,
increased contract provisions and rising net debt. Ongoing weakness
in an online pizza delivery company where sales growth continues to
slow, was another example of a short position where weakening
demand, increased supply, and increased cost pressures continue to
weigh on the share price.
15 August 2017
ENDS
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