BLACKROCK THROGMORTON TRUST PLC
(LEI: 5493003B7ETS1JEDPF59)
All information is at 30 November
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 |
-1.8 |
2.1 |
33.9 |
77.0 |
145.4 |
Share price |
-0.8 |
3.3 |
43.8 |
79.7 |
158.2 |
Benchmark* |
-1.6 |
1.5 |
21.3 |
44.2 |
88.6 |
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: |
534.54p |
Net asset value incl.
income: |
542.68p |
Share price |
457.50p |
Discount to cum income
NAV |
15.7% |
Net
yield1: |
1.8% |
Total Gross
assets2: |
£396.9m |
Net market exposure as
a % of net asset value3: |
110.6% |
Ordinary shares in
issue4: |
73,130,326 |
2016 ongoing charges*
(excluding performance fees4: |
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 have
changed. The annual performance fee will be calculated using
performance data on an annualised rolling two year basis
(previously, one year) and the maximum annual performance fee
payable will effectively be 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 will accrue 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%) 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 |
34.4 |
Financials |
19.3 |
Consumer Services |
14.4 |
Consumer Goods |
11.4 |
Basic Materials |
7.9 |
Health Care |
5.7 |
Technology |
5.1 |
Oil & Gas |
2.3 |
Net current
liabilities |
(0.5) |
|
----- |
Total |
100.0 |
|
===== |
Market Exposure (Quarterly)
|
28.02.17
% |
31.05.17
% |
31.08.17
% |
30.11.17
% |
Long |
121.4 |
117.3 |
115.3 |
116.9 |
Short |
6.7 |
6.1 |
5.8 |
6.3 |
Gross exposure |
128.1 |
123.4 |
121.1 |
123.2 |
Net exposure |
114.7 |
111.2 |
109.5 |
110.6 |
Ten Largest
Investments |
|
Company |
% of
Total Gross Assets |
|
|
Dechra
Pharmaceuticals |
3.0 |
4imprint Group |
2.6 |
Ibstock |
2.3 |
Hill & Smith |
2.2 |
Big Yellow |
2.2 |
Accesso Technology |
2.1 |
Robert Walters |
2.1 |
CVS Group |
2.1 |
Ascential |
2.0 |
Avon Rubber |
2.0 |
Commenting on the markets,
Mike Prentis and Dan Whitestone, representing the Investment
Manager noted:
During November the Company’s NAV per share fell by 1.8% to
542.68p on a cum income basis whilst our benchmark (the Numis
Smaller Companies excluding AIM (excluding Investment Companies)
Index) fell by 1.6%; the FTSE 100 Index fell 1.8% (all performance
figures are with income reinvested and net of ongoing charges and
any applicable performance fees).
Stock selection contributed positively during the month, however
the market rotation out of growth stocks and one stock specific
event drove underperformance.
The largest stock specific detractor during the month was the
UK’s leading veterinary practitioner CVS Group. The shares fell
sharply on the last day of the month after the company released a
trading statement flagging that like for like sales grew at only
1.5% (versus last year’s growth of over 6%) and that recent sales
patterns had been more volatile. The fall in the share price (which
was in excess of 20%) appears to be an overreaction to the 3%
earnings downgrade for a quality business that we believe has a
long runway of growth as they continue to consolidate the
veterinary market.
The largest positive contributor during the month was Avon
Rubber after the company’s full year results were slightly ahead of
expectations, showing both divisions, Protection & Defence and
Dairy trading well. Most importantly, the results provided the
market with confidence in the outlook for the company, with the
order book across both divisions looking strong heading into 2018,
while the excellent cash generation provides management further
firepower to pursue value enhancing acquisitions. Trifast, which is
involved in the manufacture of industrial fastenings and
components, reported half year results to September 2017 showing strong organic sales
growth resulting in broker upgrades to the full year estimates.
Short positions continued to deliver stock specific success
during the month, with one of the top contributors to performance
being a short position in an Industrial which fell heavily in
response to a significant profit warning relating to issues with
new product launches. We remain short as we see further earnings
risk to this business.
Activity during November included a new purchase in Smart
Metering Systems, which connects, owns, operates and maintains
metering systems. We further reduced some of our domestic exposed
holdings and added to holdings which generate earnings from
overseas.
14 December 2017
ENDS
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any other website) is incorporated into, or forms part of, this
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