BLACKROCK THROGMORTON TRUST PLC The information contained in this release was correct as at 31 August 2021. 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 31 August 2021 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 | 6.0 | 14.1 | 67.3 | 71.6 | 174.8 |
| Share price | 6.5 | 15.4 | 67.8 | 97.6 | 241.2 |
| Benchmark* | 4.4 | 4.2 | 47.6 | 33.1 | 67.4 |
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: | 1,000.57p |
| Net asset value incl. income: | 1,005.80p |
| Share price | 1,026.00p |
| Premium to cum income NAV | 2.0% |
| Net yield1: | 1.0% |
| Total Gross assets2: | £988.6m |
| Net market exposure as a % of net asset value3: | 117.0% |
| Ordinary shares in issue4: | 98,289,818 |
| 2020 ongoing charges (excluding performance fees)5,6: | 0.60% |
|
2020 ongoing charges ratio (including performance fees)5,6,7: | 1.60% |
1. Calculated using the 2021 interim dividend declared on 26 July 2021 and paid on 27 August 2021, together with the 2020 final dividend declared on 10 February 2021 and paid on 1 April 2021.
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 0 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 2020.
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 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 | 31.7 |
| Consumer Discretionary | 21.8 |
| Financials | 18.5 |
| Technology | 8.4 |
| Consumer Staples | 7.3 |
| Health Care | 5.4 |
| Telecommunications | 3.5 |
| Basic Materials | 1.7 |
| Net current assets | 1.7 |
| ----- | |
| Total | 100.0 |
| ===== | |
| Country Weightings | % of Total Assets |
| United Kingdom | 91.1 |
| United States | 7.0 |
| France | 0.9 |
| Australia | 0.7 |
| Sweden | 0.7 |
| Israel | -0.1 |
| Germany | -0.3 |
| ----- | |
| Total | 100.0 |
| ===== |
| Market Exposure (Quarterly) | ||||
| 30.11.20 % | 28.02.21 % | 31.05.21 % | 31.08.21 % | |
| Long | 120.4 | 126.8 | 121.3 | 119.4 |
| Short | 1.9 | 1.5 | 1.5 | 2.4 |
| Gross exposure | 122.3 | 128.3 | 122.8 | 121.8 |
| Net exposure | 118.6 | 125.3 | 119.8 | 117.0 |
| Ten Largest Investments | |
| Company | % of Total Gross Assets |
| Gamma Communications | 3.2 |
| Electrocomponents | 3.1 |
| Watches of Switzerland | 2.7 |
| Oxford Instruments | 2.6 |
| Impax Asset Management | 2.5 |
| YouGov | 2.2 |
| Auction Technology | 2.2 |
| Sigmaroc | 2.2 |
| IntegraFin | 2.0 |
| Pets at Home | 2.0 |
Commenting on the markets, Dan Whitestone, representing the Investment Manager noted:
The Company returned 6.0%1 in August, outperforming its benchmark, the Numis Smaller Companies +AIM ex Investment Companies, which returned 4.4%1. The long book continued to be the key driver of outperformance during the month.
Equity markets continued to rise in August as central banks around the world, led by the Federal Reserve, provided reassurance that current supportive monetary policy will continue, which curbed concerns around inflation and a possible taper tantrum. Growing concerns around rising Delta variant cases were more than offset by ongoing positive corporate earnings newsflow, and M&A (Merger & Acquisition) activity remained a key feature of the UK market, with interest from corporate buyers being a key driver of the outperformance of small & mid-caps.
The largest contributor during the period was SigmaRoc, a new purchase for us when we backed a large equity raise for a transformational deal to acquire Nordalk, a privately owned Scandinavian based limestone business. This strategic and highly accretive acquisition transforms SigmaRoc by significantly increasing their European footprint whilst diversifying their end market exposure away from construction. The management team of SigmaRoc have developed a strong track record in acquiring and improving the financial performance of UK and European based heavy side material assets, and we see strong potential for underlying improvements in revenues, profits and cash generation from Nordalk. We are very excited about the future prospects for this company on an organic and inorganic basis. Shares in Auction Technology Group continued to appreciate post the strategic acquisition of Live Auctioneers, announced in July, which we discussed in last month’s update. Specialist pharmaceuticals services business, Ergomed, rose following a good trading update at the end of July, which highlighted positive momentum and trading in-line with recently upgraded guidance.
The largest detractor to performance during the month was Avon Protection which fell after a large profit warning on order delays which the management attribute to a combination of COVID-19 and supply chain disruptions. This is the second negative development in the last twelve months, so whilst disappointing, we think the issues are transitory as opposed to structural. Our view is that the longer-term revenue opportunity for Avon is significant and there is no change in the competitive landscape, therefore Avon will return to revenue and profit growth as they mobilise the contracts that have been delayed and continue to win new ones.
Overall, a reassuring month from a company update perspective, with strong trading patterns reported and we continue to engage with management teams that exude confidence in their growth prospects. There remains an abundance of investment opportunities for us on both sides of the book and several new long and short ideas have entered the portfolio during the month. More recently it seems company and industry fundamental analysis and the subsequent dispersion in financial outcomes reported in company updates is having a greater impact on share prices, a trend we believe will continue. To conclude, we retain our high conviction in the fundamental strength of many of our differentiated investments and the power and enduring nature of many secular trends we are witnessing right now.
1Source: BlackRock as at 31 August 2021
24 September 2021
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.
