BlackRock Throg Tst Portfolio Update

 
TIDMTHRG 
 
BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59) 
 
 
All information is at 30 September 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                      -0.3      5.7     31.3      73.4     145.5 
 
Share price                          -0.3      4.3     34.8      68.5     156.6 
 
Benchmark*                            1.0      4.7     20.2      43.5      91.4 
 
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:                                         523.23p 
 
Net asset value incl. income:                                         529.93p 
 
Share price                                                           441.25p 
 
Discount to cum income NAV                                              16.7% 
 
Net yield1:                                                              1.9% 
 
Total Gross assets2:                                                  GBP387.5m 
 
Net market exposure as a % of net asset value3:                        109.2% 
 
Ordinary shares in issue4:                                         73,130,326 
 
2016 ongoing charges* (excluding performance fees5,6:                    1.1% 
 
2016 ongoing charges* ratio (including performance fees)                 1.3% 
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 will change.  The annual performance fee will be calculated using 
performance data on an annualised rolling two year basis (previously, one year) 
and the cap on annual performance fees will be reduced to 0.9% 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 (from 10%). The maximum annual total fee (comprising the base 
management fee and the performance fee) 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                                                              32.3 
 
Financials                                                               19.0 
 
Consumer Services                                                        17.4 
 
Consumer Goods                                                           10.9 
 
Basic Materials                                                           7.2 
 
Health Care                                                               5.3 
 
Technology                                                                4.3 
 
Oil & Gas                                                                 2.7 
 
Net current assets                                                        0.9 
 
                                                                        ----- 
 
Total                                                                   100.0 
 
                                                                        ===== 
 
 
Market Exposure (Quarterly) 
 
 
                        30.11.16       28.02.17        31.05.17        31.08.17 
                               %              %               %               % 
 
Long                       116.9          121.4           117.3           115.3 
 
Short                        8.5            6.7             6.1             5.8 
 
Gross exposure             125.4          128.1           123.4           121.1 
 
Net exposure               108.4          114.7           111.2           109.5 
 
 
 
Ten Largest Investments 
 
Company                                               % of Total Gross Assets 
 
CVS Group                                                                 3.4 
 
Dechra Pharmaceuticals                                                    2.9 
 
4imprint Group                                                            2.7 
 
Ibstock                                                                   2.2 
 
Hill & Smith                                                              2.1 
 
Johnson Service Group                                                     2.1 
 
Melrose Industries                                                        2.1 
 
Big Yellow                                                                2.0 
 
Accesso Technology                                                        2.0 
 
Ascential                                                                 2.0 
 
Commenting on the markets, Mike Prentis and Dan Whitestone, representing the 
Investment Manager noted: 
 
During September the Company's NAV per share fell by 0.3% to 529.93p on a cum 
income basis, whilst our benchmark (the Numis Smaller Companies excluding AIM 
(excluding Investment Companies) Index) rose by 1.0%; the FTSE 100 Index fell 
by 0.8% (all performance figures are with income reinvested and net of ongoing 
charges and any applicable performance fees). 
 
Stock selection was the primary driver of underperformance during the month, 
while sector allocation also detracted modestly. 
 
The underperformance during the month was predominantly driven by a reversal in 
the share prices of a number of our recent strong performing holdings. A change 
in market sentiment towards value over growth, coupled with foreign exchange 
moves saw our holdings in 4imprint, Fever-Tree and Advanced Medical Solutions 
all detract during the month, despite no stock specific newsflow. The largest 
single stock detractor during the month was UP Global Sourcing which fell after 
the company issued a trading statement warning of a tougher outlook for 
retailers and therefore revenue growth for the full year being unlikely as 
retailers are exercising caution with regard to non-food buying. 
 
Short positions were a modest detractor in September, with a number of our 
shorts rising on the back of the market rise. 
 
Ticketing technology solutions provider Accesso was the largest contributor 
during the month. The company reported solid interim results showing continued 
momentum in the business, growing revenues organically while recent acquisition 
Ingresso also showed strong growth. Veterinary surgery operator CVS Group 
reported strong full year results, delivering profit and revenue growth ahead 
of expectations, with a number of brokers putting through upgrades on the back 
of this continued delivery. Johnson Service Group's interim results showed 
continued strong organic revenue growth, while the successful integration of 
recent acquisitions resulted in brokers to upgrade Earnings Per Share 
forecasts. Chief Executive Officer Chris Sander announced his decision to 
retire in the first half of 2018, after 33 years with the group, however he 
leaves at a time when the business is in good shape, with a strong balance 
sheet to support the current strategy. 
 
Activity during September included a purchase in SuperGroup, the distinctive 
fashion retailer behind the Superdry brand. We further reduced some of our 
domestic exposed holdings and added to Melrose Industries and Hill & Smith. 
 
16 October 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

October 16, 2017 12:07 ET (16:07 GMT)