BLACKROCK THROGMORTON TRUST PLC (LEI:
5493003B7ETS1JEDPF59)
All information is at 31 January
2018 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 |
0.2 |
2.7 |
31.0 |
76.8 |
137.7 |
Share price |
2.3 |
5.9 |
38.6 |
82.9 |
149.6 |
Benchmark* |
-3.1 |
-1.3 |
15.1 |
41.7 |
75.0 |
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: |
558.15p |
Net asset value incl.
income: |
567.43p |
Share price |
488.00p |
Discount to cum income
NAV |
14.0% |
Net
yield1: |
1.7% |
Total Gross
assets2: |
£415.0m |
Net market exposure as
a % of net asset value3: |
111.2% |
Ordinary shares in
issue4: |
73,130,326 |
2016 ongoing charges*
(excluding performance fees5,6: |
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 is now 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 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 |
34.1 |
Financials |
19.9 |
Consumer Services |
14.2 |
Consumer Goods |
9.6 |
Basic Materials |
7.0 |
Health Care |
5.8 |
Technology |
5.8 |
Oil & Gas |
2.3 |
Net current assets |
1.3 |
|
----- |
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 |
3.1 |
4imprint Group |
2.8 |
CVS Group |
2.7 |
Melrose Industries |
2.2 |
Ibstock |
2.2 |
Robert Walters |
2.2 |
Big Yellow |
2.1 |
Bodycote |
2.1 |
Johnson Service
Group |
1.9 |
Ascential |
1.9 |
Commenting on the markets,
Dan Whitestone, representing the
Investment Manager noted:
During January the Company’s NAV per share rose by 0.2% to
567.43p on a cum income basis whilst our benchmark (the Numis
Smaller Companies excluding AIM (excluding Investment Companies)
Index) fell by 3.1%; the FTSE 100 Index fell by 2.0%(all
performance figures are with income reinvested and net of ongoing
charges and any applicable performance fees).
Stock selection in both long and short positions drove
outperformance during the month.
Dechra Pharmaceuticals was the largest positive contributor
during the month following a positive trading update, reporting
revenues ahead of consensus, benefiting from strong performance in
North America. The company also
announced the Euro 340m acquisition
of a Dutch based veterinary pharmaceuticals company focused on
generic products. Shares in veterinary practitioner CVS Group
rallied after the company reported better than expected like for
like sales growth in H1. The result was particularly welcome as CVS
had been a large detractor in the fourth quarter of 2017 following
a trading update flagging slower and more volatile sales growth.
These results provided us with confirmation that our investment
thesis remains on track and we were right to add to the shares on
weakness last year. On the short side we benefitted from our short
in a UK roadside assistance company where shares fell during the
month on growing fears about its balance sheet.
The largest stock specific detractor came from a short position
in an online electrical retailer which bounced after reporting an
in-line trading update, although the house broker reduced their
future year profit forecasts significantly. Our long positions in
Restore and Hill & Smith underperformed despite no stock
specific newsflow.
Activity during January included adding to RWS and Liontrust
Asset Management and purchasing a new holding in Computacenter. We
continue to use market volatility to add to existing holdings where
we feel the valuation does not reflect the true earnings potential
of these companies.
14 February 2018
ENDS
Latest information is available by typing
www.blackrock.co.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.