The
information contained in this release was correct as at
31 May 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
31 May 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
|
7.6
|
11.3
|
16.4
|
-16.0
|
33.0
|
Share
price
|
8.5
|
10.7
|
11.6
|
-24.2
|
30.7
|
Benchmark*
|
6.4
|
11.8
|
12.5
|
-11.7
|
20.8
|
Sources:
BlackRock and Deutsche Numis
*With
effect from 15 January 2024 the Numis
Smaller Companies plus AIM (excluding Investment Companies) Index
changed to the Deutsche Numis Smaller Companies plus AIM (excluding
Investment Companies).
At month
end
|
Net
asset value capital only:
|
693.81p
|
Net
asset value incl. income:
|
703.55p
|
Share
price
|
639.00p
|
Discount to cum
income NAV
|
9.2%
|
Net
yield1:
|
2.3%
|
Total
Gross assets2:
|
£644.5m
|
Net
market exposure as a % of net asset value3:
|
112.6%
|
Ordinary shares
in issue4:
|
91,606,927
|
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 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 11,602,937 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
|
35.5
|
Consumer
Discretionary
|
18.6
|
Financials
|
16.9
|
Basic
Materials
|
6.8
|
Technology
|
6.3
|
Telecommunications
|
3.7
|
Health
Care
|
1.9
|
Consumer
Staples
|
1.9
|
Real
Estate
|
1.6
|
Energy
|
1.1
|
Communication
Services
|
0.7
|
Other
|
0.1
|
Net
Current Assets
|
4.9
|
|
-----
|
Total
|
100.0
|
|
=====
|
|
|
Country Weightings
|
% of Total Assets
|
|
|
United
Kingdom
|
91.1
|
United
States
|
4.3
|
Ireland
|
1.8
|
Australia
|
0.8
|
France
|
0.8
|
Canada
|
0.6
|
Switzerland
|
0.5
|
Netherlands
|
0.4
|
Sweden
|
-0.3
|
|
-----
|
Total
|
100.0
|
|
=====
|
Market Exposure (Quarterly)
|
|
|
31.08.23
%
|
30.11.23
%
|
29.02.24
%
|
31.05.24
%
|
Long
|
112.7
|
111.3
|
117.9
|
114.9
|
Short
|
4.5
|
3.8
|
3.2
|
2.3
|
Gross
exposure
|
117.2
|
115.1
|
121.1
|
117.2
|
Net
exposure
|
108.2
|
107.5
|
114.7
|
112.6
|
Ten Largest Investments
|
|
Company
|
% of Total Gross Assets
|
|
|
Oxford
Instruments
|
3.1
|
Breedon
|
3.0
|
Gamma
Communications
|
2.9
|
Grafton
Group
|
2.7
|
IntegraFin
|
2.6
|
Hill
& Smith Holdings
|
2.5
|
Rotork
|
2.5
|
WH
Smith
|
2.4
|
Tatton Asset
Management
|
2.3
|
4imprint
Group
|
2.3
|
|
|
|
|
Commenting
on the markets, Dan Whitestone,
representing the Investment Manager noted:
The
Company returned 7.6% in May, outperforming its benchmark the
Deutsche Numis Smaller Companies + AIM (excluding Investment
Companies) Index, which returned 6.4%.1
Despite a bout of
volatility in the last few days of May, it was a strong month for
risk assets broadly, with most developed markets delivering a
positive return. As for the macro, May did see some softer global
growth data points while US and UK inflation prints revealed
ongoing falls albeit perhaps not at the rate hoped for, with
Services still a laggard. On the UK specifically, the economic
backdrop is steadily improving; growth is up, inflation is falling,
and consumer confidence is rising alongside real wage growth (ASDA
Income tracker is now at 3-year high). We think the news of a snap
election in the UK is a positive overall as it removes a prolonged
period of uncertainty and could indeed herald a period of political
stability (just reflect on how many cabinet posts have changed in
recent years) with drives investment. Combine this with an
improving backdrop and potential for rate cuts we think the UK
recovery is only in the foothills and the valuation anomaly
extreme. M&A activity in the UK remains high, highlighting the
value on offer. Interestingly, the UK small and mid-caps saw the
first monthly net inflow after 35 consecutive months of outflows!
Maybe an anomaly, maybe the start of a trend? As ever, there was
lots going on at the company level, and this was a month of lots of
stock specific developments, both positive and negative, though
thankfully we got more of the former than the latter.
The
largest contributor during the month was from Zotefoams, which
rallied sharply in response to a positive trading statement. The
company reported positive growth across a number of its
High-Performance Products (HPP) including footwear, aviation and
insultation products, while also updating investors on its ReZorce
mono-material barrier packaging product, which is currently
entering late-stage quality and technical validation in preparation
for market trials with a European retailer. IntegraFin, the
operator of the Transact investment platform, reported a 13%
year-on-year increase in funds under direction, which rose to £61bn
as at the end of March 2024. Net
inflows onto the platform rose by 4% during the year, with advisors
using the platform also growing at the same rate to 7,900. Bathroom
retailer Victorian Plumbing shares rose on the announced
acquisition of an online competitor which should be significantly
accretive to earnings.
Elevated levels
of M&A activity remained an ongoing feature in the UK small and
mid-cap market, but remains a double edged sword. Do we own the
companies that are bid for, thereby generating a fillip to
short-term performance, and if so, is the price commensurate with
the long-term value we think they are capable of generating? As for
May, we saw a large cash bid (+70% premium) for a company we don’t
own – Keywords Studios – itself a large constituent of the
benchmark so that was the biggest drag on relative performance in
the month (costing around 38bps). Consumer electronics business, TT
Electronics, fell after reporting ongoing destocking in its
shorter-cycle components products in North America. Management felt confident
enough to reiterate their full year guidance but it will be more H2
weighted than previously thought. However, overall, the
book-to-bill ratio has moved above 1x for the first time in over 12
months, with Q124 orders sequentially higher than Q423 and comps
ease through the year. The shares trade on just over 7x current
year earnings, so one might think quite a lot of negativity is
already priced in. Shares in travel operator Jet2 drifted lower
during the month despite no stock specific news flow.
Overall, a lot to
contend with in May. Indeed, there are many stocks worth talking to
clients about this month, both good and bad. As discussed earlier,
we think the outlook for the UK is improving, share buy backs and
M&A activity continue to provide a valuation underpin, so H2
2024 could be exciting with an election out the way, improving
macro and sentiment and maybe even an improving flow backdrop. We
remain reassured with the breadth of returns in the portfolio, with
positive contributions across a broad spread of businesses both
this month and year to date. We are also reassured that the returns
are primarily driven by stock specifics rather than any one factor
or macro bet. The net of the portfolio is around 110% while the
gross is around 115%.
We
thank shareholders for your ongoing support.
1Source: BlackRock
as at 31 May 2024
21 June 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.