The
information contained in this release was correct as at
29 February 2024.
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
29 February
2024 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
|
-1.6
|
7.1
|
1.0
|
-12.2
|
31.0
|
Share
price
|
-4.2
|
1.6
|
-6.4
|
-20.3
|
28.1
|
Benchmark*
|
-2.2
|
4.5
|
-5.8
|
-11.6
|
11.9
|
Sources:
BlackRock and Deutsche Numis
*With
effect from 15 January 2024 the Numis
Smaller Companies plus AIM (excluding Investment Companies) Index
changed to Deutsche Numis Smaller Companies plus AIM (excluding
Investment Companies).
At month
end
|
Net
asset value capital only:
|
630.15p
|
Net
asset value incl. income:
|
632.03p
|
Share
price
|
577.00p
|
Discount to cum
income NAV
|
8.7%
|
Net
yield1:
|
2.6%
|
Total
Gross assets2:
|
£597.5m
|
Net
market exposure as a % of net asset value3:
|
114.7%
|
Ordinary shares
in issue4:
|
94,534,864
|
2023
ongoing charges (excluding performance fees)5,6:
|
0.54%
|
2023
ongoing charges ratio (including performance
fees)5,6,7:
|
0.87%
|
1.
Calculated using the Interim Dividend declared on 07 July 2023 paid on 29
August 2023, together with the Final Dividend declared on
05 February 2024 to be paid on
28 March 2024
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 8,675,000 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 2023.
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 2023.
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
|
35.4
|
Consumer
Discretionary
|
24.0
|
Financials
|
16.9
|
Technology
|
7.7
|
Basic
Materials
|
6.1
|
Telecommunications
|
3.8
|
Health
Care
|
2.3
|
Consumer
Staples
|
2.0
|
Communication
Services
|
1.3
|
Energy
|
1.2
|
Real
Estate
|
0.9
|
Net
Current Liabilities
|
-1.6
|
|
-----
|
Total
|
100.0
|
|
=====
|
|
|
Country Weightings
|
% of Total Assets
|
|
|
United
Kingdom
|
94.0
|
United
States
|
4.1
|
France
|
0.9
|
Australia
|
0.8
|
Ireland
|
0.5
|
Sweden
|
-0.3
|
|
-----
|
Total
|
100.0
|
|
=====
|
Market Exposure (Quarterly)
|
|
|
31.05.23
%
|
31.08.23
%
|
30.11.23
%
|
29.02.24
%
|
Long
|
111.7
|
112.7
|
111.3
|
117.9
|
Short
|
3.6
|
4.5
|
3.8
|
3.2
|
Gross
exposure
|
115.3
|
117.2
|
115.1
|
121.1
|
Net
exposure
|
108.1
|
108.2
|
107.5
|
114.7
|
Ten Largest Investments
|
|
Company
|
% of Total Gross Assets
|
|
|
4imprint
Group
|
3.2
|
Gamma
Communications
|
3.1
|
Breedon
|
3.1
|
Oxford
Instruments
|
2.9
|
Grafton
Group
|
2.9
|
WH
Smith
|
2.8
|
YouGov
|
2.5
|
Rotork
|
2.4
|
Computacenter
|
2.3
|
FTSE
250
|
2.3
|
Commenting
on the markets, Dan Whitestone,
representing the Investment Manager noted:
The
Company returned -1.6% in February, outperforming its benchmark,
the Deutsche Numis Smaller Companies plus AIM (excluding Investment
Companies) Index, which returned -2.2.1
Markets continued
where they left off in January, with global markets led by the
Nasdaq and large cap shares. Mid-cap markets broadly
underperformed, still bumping along the bottom of a protracted
drawdown. Specifically, within the UK, small & mid-cap stocks
continued to underperform their larger peers, but the portfolio was
able to outperform the benchmark reflecting some significant stock
specific wins across a broad range of longs, shorts, and overseas
holdings.
The
largest positive contributor during the month was
a short
in an animal genetics company which issued a
large profit warning, highlighting falling volumes in China, where trading conditions in its beef
and dairy segments remains challenging. The second largest
contributor was Medpace,
a US pharmaceutical services company that manages clinical trials
for small and mid-sized biotech companies. Despite a 2-year long
winter in biotech funding, Medpace has continued to grow 20% and
take market share. Their best-in-class service, offering and
ability to pick the best clients and programmes, means they have
avoided the crunch that has affected many in the sector and deliver
record levels of new business in all but two quarters. Biotech
funding is now showing signs of inflecting and in their most recent
results Medpace said they were confident that after a relatively
pedestrian 2024 (15% revenue growth, 20% EBITDA margins), 2025
should see revenue growth accelerate as the industry recovers. The
shares rose 36% in the month on the back of the strong results. The
third largest contributor was UK investment manager,
Tatton
Asset Management,
which rose in absence if any specific news.
Two
of the largest three detractors during the month were from short
positions. The largest was a short
in a UK listed semiconductor company which continued
to rise following better than expected results in January, plus a
rising tide of AI related euphoria. The second detractor was a
short in a UK listed
support services company. The company
received a bid for one division from Private Equity which
simultaneously resolved the balance sheet issues and provided a
valuation underpin for the group. The third largest detractor was
XP Power, who make power supply units for various industrial
applications including semi-conductor capital equipment. The
company had seen weak order trends through 2023, but we were
hopeful they would turn as we entered 2024. Unfortunately
de-stocking has continued for longer than expected, resulting in
weak performance in Q1 and material downgrades to earnings. We do
not believe that this changes the medium-term earnings power of the
company, but it certainly pushes recovery out from 2024 and into
2025.
February was a
positive month from a relative perspective, as we continue to try
and navigate this “holding pattern” that UK small and medium size
companies have found themselves in. We still retain a strong view
that as inflation falls and fears of recession recede, the market
will broaden out and the small & mid-cap market will witness a
period of strong returns. This scenario could be very additive to
performance. Despite the continued headwind of small and mid-cap
underperformance year-to-date, we remain encouraged by the
increasing role of stock specifics and the fact that the underlying
strength in trading from our holdings is now being better reflected
in share prices. The net of the portfolio remains around 109% while
the gross is around 115%.
We
thank shareholders for your ongoing support.
1Source: BlackRock
as at 29 February 2024
27 March 2024
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.