BLACKROCK THROGMORTON TRUST PLC 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 | Three | One | Three | Five |
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 | 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 AssetManagement, 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.
