BlackRock Throg Tst Portfolio Update

 
TIDMTHRG 
 
The information contained in this release was correct as at 31 May 2021. 
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 2021 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                       1.0     16.4     62.4      54.9     143.9 
 
Share price                           0.6     16.5     63.1      73.9     193.1 
 
Benchmark*                            1.2     11.8     55.6      27.2      64.9 
 
Sources: BlackRock and Datastream 
 
*With effect from 22 March 2018 the Numis Smaller Companies plus AIM (excluding 
Investment Companies) Index replaced the Numis Smaller Companies excluding AIM 
(excluding Investment Companies) Index as the Company's benchmark. The 
performance of the indices have been blended to reflect this. 
 
At month end 
 
Net asset value capital only:                                         878.40p 
 
Net asset value incl. income:                                         883.41p 
 
Share price                                                           891.00p 
 
Premium to cum income NAV                                                0.9% 
 
Net yield1:                                                              1.1% 
 
Total Gross assets2:                                                  £826.3m 
 
Net market exposure as a % of net asset value3:                        119.2% 
 
Ordinary shares in issue4:                                         93,539,037 
 
2020 ongoing charges (excluding performance fees)5,6:                   0.60% 
 
2020 ongoing charges ratio (including performance                       1.60% 
fees)5,6,7: 
 
 
1. Calculated using the 2020 interim dividend declared on 23 July 2020 and paid 
on 26 August 2020, together with the 2020 final dividend declared on 10 
February 2021 and paid on 31 March 2021. 
 
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 0 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 
2020. 
 
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 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                                                              30.3 
 
Consumer Discretionary                                                   23.0 
 
Financials                                                               17.1 
 
Consumer Staples                                                          9.4 
 
Technology                                                                7.5 
 
Health Care                                                               4.6 
 
Telecommunications                                                        3.6 
 
Basic Materials                                                           2.5 
 
Net current assets                                                        2.0 
 
                                                                        ----- 
 
Total                                                                   100.0 
 
                                                                        ===== 
 
Country Weightings                                          % of Total Assets 
 
United Kingdom                                                           90.7 
 
United States                                                             6.4 
 
France                                                                    1.1 
 
Australia                                                                 0.7 
 
Denmark                                                                   0.6 
 
Netherlands                                                               0.4 
 
Israel                                                                    0.1 
 
                                                                        ----- 
 
Total                                                                   100.0 
 
                                                                        ===== 
 
 
 
Market Exposure (Quarterly) 
 
                        31.08.20       30.11.20        28.02.21        31.05.21 
                               %              %               %               % 
 
Long                       121.0          120.4           126.8           121.3 
 
Short                        2.4            1.9             1.5             1.5 
 
Gross exposure             123.4          122.3           128.3           122.8 
 
Net exposure               118.6          118.6           125.3           119.8 
 
 
 
Ten Largest Investments 
 
Company                                               % of Total Gross Assets 
 
Gamma Communications                                                      3.2 
 
Impax Asset Management                                                    2.8 
 
Electrocomponents                                                         2.7 
 
YouGov                                                                    2.6 
 
Watches of Switzerland                                                    2.6 
 
Moonpig Group                                                             2.4 
 
Oxford Instruments                                                        2.2 
 
Pets At Home                                                              2.1 
 
Breedon                                                                   2.0 
 
Games Workshop                                                            2.0 
 
Commenting on the markets, Dan Whitestone, representing the Investment Manager 
noted: 
 
The Company returned 1.0%1 in May, marginally trailing its benchmark, the Numis 
Smaller Companies +AIM ex Investment Trusts, which returned 1.2%1. Performance 
during the month was driven by the long book, while the short book was flat. 
 
There remains an ongoing debate about 'value vs growth' and while April 
favoured growth, May reversed some of this trend. As mentioned in the past, and 
perhaps surprisingly, we really do not see the 'value vs growth' discussion as 
a critical issue in investment returns. But rather we see the high level of 
ongoing industrial change as creating many more opportunities for alpha, and 
far more important in delivering good returns to our investors. It is, however, 
true that May favoured value over growth, and that statement would also be true 
on average for the past 7 months since November 2020 when a vaccine was first 
announced. It's worth highlighting however, that despite this backdrop, the 
Company has delivered a positive result in the first half of our financial 
year, returning 31.0%1 and outperforming the benchmark by +3.3%1. This, we 
believe is very credible and an indicator of just how much opportunity we are 
seeing even in an environment that is deemed unfavourable for differentiated 
growth companies. We remain very positive on the investments we have made and 
expect great things over the coming periods as they deliver on their promise. 
We also believe ongoing industry pressures and business model frailties will be 
exposed for the struggling companies in our short book as normality returns. 
 
To that end we have experienced another month with strong updates from our long 
positions where the share prices of some have appreciated materially, whilst 
other shares without updates have drifted. This effect actually gives us some 
confidence. We are seeing shares drift only to report strong earnings, which 
focuses attention on improved profits, and the shares rise. We see the drifting 
as the transitory phase and the value demonstrated by the results as the real 
alpha gained over time. The recovery trade continued during May, but in the 
most recent days we have seen some of the beneficiaries fall on weak updates 
and equity raising as the COVID-19 crisis lingers and ongoing industry 
challenges persist. On that basis there may be emerging signs of the end to the 
recovery trade, but as mentioned above this is not actually key to our 
investment theses or the returns that can be delivered by the portfolio. 
 
The largest contributor was Gamma Communications, where the shares rose to new 
highs on the back of another upgrade to forecasts accompanying their strong 
trading update. At its core this reflects the strength of demand and operating 
momentum in the business as customers upgrade their corporate communications 
and embrace the cloud. Shares in Games Workshop rose after the company forecast 
that profits for the year ending May 2021 would at least £150m, representing 
almost a 70% increase compared to the previous year. Auction Technology Group, 
a market leader in digital auction marketplaces, delivered very strong results 

in May and has now doubled since we purchased at IPO (Initial Public Offering) 
earlier this year. 
 
The largest detractor during the month was speciality pharmaceuticals business, 
Ergomed, which gave back some of last month's gains following its announced 
expansion into Japan. Our holding in Electrocomponents delivered strong results 
in the period but fell back in absence of a material upgrade. The company is 
growing organic revenues at double digits as they win market share and we think 
its growth has the potential to accelerate further as they solidify their 
market position through M&A (Mergers & Acquisitions). Chegg, one of our US 
positions, reported a strong update in our opinion but fell back after some 
great share price performance in the last year. Of course, in our mind, the 
company is so much more than a "Covid trade", having delivered growth that has 
exceeded analyst forecasts for several years pre-dating the pandemic given the 
strength of its offering and the huge changes happening in the education 
market. Chegg clearly saw an acceleration during the pandemic, but we believe 
it has the potential for many more years of growth when COVID-19 is firmly in 
the rear view mirror. 
 
Overall, we see May as period of consolidation after a very strong April and 
another stepping stone. The bigger picture is unchanged as is our optimism and 
conviction. The reporting season continues to validate our long book holdings 
which gives confidence that they are doing the right things and over time we 
expect higher revenues, profits and share prices. Whilst we've outlined three 
key contributors, there are many other shares that we could discuss that have 
driven performance this month on the back of positive updates such as 4Imprint, 
or Impax Asset Management. Our outlook for 2021 remains very positive and we 
expect to see continued rapid industry change that will deliver huge 
opportunities in emerging companies. We are therefore making sure we work hard 
to capture new opportunities and to monetise our existing ideas. We continue to 
operate a net position of around 120%, which is the highest that it has been 
under my management, reflecting the vast opportunity we see for differentiated 
growth companies. We thank shareholders for their ongoing support. 
 
1Source: BlackRock as at 31 May 2021 
 
18 June 2021 
 
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. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

June 18, 2021 12:15 ET (16:15 GMT)