BlackRock Throg Tst Portfolio Update

 
TIDMTHRG 
 
BLACKROCK THROGMORTON TRUST PLC 
(LEI: 5493003B7ETS1JEDPF59) 
 
All information is at 30 November 2017 and unaudited. 
 
Performance at month end is calculated on a cum income basis 
 
                                      One    Three      One     Three      Five 
                                    Month   months     year     years     years 
                                        %        %        %         %         % 
 
Net asset value                      -1.8      2.1     33.9      77.0     145.4 
 
Share price                          -0.8      3.3     43.8      79.7     158.2 
 
Benchmark*                           -1.6      1.5     21.3      44.2      88.6 
 
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:                                         534.54p 
 
Net asset value incl. income:                                         542.68p 
 
Share price                                                           457.50p 
 
Discount to cum income NAV                                              15.7% 
 
Net yield1:                                                              1.8% 
 
Total Gross assets2:                                                  GBP396.9m 
 
Net market exposure as a % of net asset value3:                        110.6% 
 
Ordinary shares in issue4:                                         73,130,326 
 
2016 ongoing charges* (excluding performance fees4:                      1.1% 
 
2016 ongoing charges* ratio (including performance                       1.3% 
fees)5,6,7: 
 
*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 will be calculated using 
performance data on an annualised rolling two year basis (previously, one year) 
and the maximum annual performance fee payable will effectively be 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 will accrue 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                                                              34.4 
 
Financials                                                               19.3 
 
Consumer Services                                                        14.4 
 
Consumer Goods                                                           11.4 
 
Basic Materials                                                           7.9 
 
Health Care                                                               5.7 
 
Technology                                                                5.1 
 
Oil & Gas                                                                 2.3 
 
Net current liabilities                                                 (0.5) 
 
                                                                        ----- 
 
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                                                    3.0 
 
4imprint Group                                                            2.6 
 
Ibstock                                                                   2.3 
 
Hill & Smith                                                              2.2 
 
Big Yellow                                                                2.2 
 
Accesso Technology                                                        2.1 
 
Robert Walters                                                            2.1 
 
CVS Group                                                                 2.1 
 
Ascential                                                                 2.0 
 
Avon Rubber                                                               2.0 
 
Commenting on the markets, Mike Prentis and Dan Whitestone, representing the 
Investment Manager noted: 
 
During November the Company's NAV per share fell by 1.8% to 542.68p on a cum 
income basis whilst our benchmark (the Numis Smaller Companies excluding AIM 
(excluding Investment Companies) Index) fell by 1.6%; the FTSE 100 Index fell 
1.8% (all performance figures are with income reinvested and net of ongoing 
charges and any applicable performance fees). 
 
Stock selection contributed positively during the month, however the market 
rotation out of growth stocks and one stock specific event drove 
underperformance. 
 
The largest stock specific detractor during the month was the UK's leading 
veterinary practitioner CVS Group. The shares fell sharply on the last day of 
the month after the company released a trading statement flagging that like for 
like sales grew at only 1.5% (versus last year's growth of over 6%) and that 
recent sales patterns had been more volatile. The fall in the share price 
(which was in excess of 20%) appears to be an overreaction to the 3% earnings 
downgrade for a quality business that we believe has a long runway of growth as 
they continue to consolidate the veterinary market. 
 
The largest positive contributor during the month was Avon Rubber after the 
company's full year results were slightly ahead of expectations, showing both 
divisions, Protection & Defence and Dairy trading well. Most importantly, the 
results provided the market with confidence in the outlook for the company, 
with the order book across both divisions looking strong heading into 2018, 
while the excellent cash generation provides management further firepower to 
pursue value enhancing acquisitions. Trifast, which is involved in the 
manufacture of industrial fastenings and components, reported half year results 
to September 2017 showing strong organic sales growth resulting in broker 
upgrades to the full year estimates. 
 
Short positions continued to deliver stock specific success during the month, 
with one of the top contributors to performance being a short position in an 
Industrial which fell heavily in response to a significant profit warning 
relating to issues with new product launches. We remain short as we see further 
earnings risk to this business. 
 
Activity during November included a new purchase in Smart Metering Systems, 
which connects, owns, operates and maintains metering systems. We further 
reduced some of our domestic exposed holdings and added to holdings which 
generate earnings from overseas. 
 
14 December 2017 
 
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. 
 
 
 
END 
 

(END) Dow Jones Newswires

December 14, 2017 11:28 ET (16:28 GMT)