BlackRock Throg Tst Portfolio Update

 
TIDMTHRG 
 
The information contained in this release was correct as at 30 June 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 30 June 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                       2.7     15.0     64.9      55.1     179.1 
 
Share price                           3.9     15.8     67.7      73.6     242.3 
 
Benchmark*                           -1.1      6.0     52.3      26.1      74.9 
 
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:                                         900.55p 
 
Net asset value incl. income:                                         906.89p 
 
Share price                                                           926.00p 
 
Premium to cum income NAV                                                2.1% 
 
Net yield1:                                                              1.1% 
 
Total Gross assets2:                                                  £857.0m 
 
Net market exposure as a % of net asset value3:                        120.1% 
 
Ordinary shares in issue4:                                         94,500,391 
 
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 1 April 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                                                              30.6 
 
Consumer Discretionary                                                   22.9 
 
Financials                                                               18.4 
 
Technology                                                                7.8 
 
Consumer Staples                                                          7.6 
 
Health Care                                                               4.6 
 
Telecommunications                                                        3.4 
 
Basic Materials                                                           2.3 
 
Net current assets                                                        2.4 
 
                                                                        ----- 
 
Total                                                                   100.0 
 
                                                                        ===== 
 
Country Weightings                                          % of Total Assets 
 
United Kingdom                                                           89.0 
 
United States                                                             7.4 
 
France                                                                    1.1 
 
Australia                                                                 0.7 
 
Sweden                                                                    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 
 
Electrocomponents                                                         3.2 
 
Gamma Communications                                                      3.1 
 
Impax Asset Management                                                    2.7 
 
Oxford Instruments                                                        2.6 
 
Watches of Switzerland                                                    2.4 
 
YouGov                                                                    2.3 
 
Breedon                                                                   2.2 
 
Moonpig                                                                   2.1 
 
Pets at Home                                                              2.1 
 
CVS Group                                                                 2.0 
 
Commenting on the markets, Dan Whitestone, representing the Investment Manager 
noted: 
 
The Company returned 2.7% in June, outperforming its benchmark, the Numis 
Smaller Companies +AIM (excluding Investment Companies) Index, which fell 
-1.1%. The long book was the key driver of outperformance during the month 
though we did have a strong contribution from one of our individual short 
positions. 
 
June was a strong month for the Company, particularly considering the 
nervousness and skittishness of the UK stock market. The immediate flattening 
of the yield curve post the recent FOMC (Federal Open Market Committee) meeting 
catalysed losses for many positioned for ongoing steepening and we saw a marked 
retracement in poor quality value and "recovery" shares that had been bid up in 
recent months. Meanwhile, June saw a resurgence in COVID-19 cases and global 
lockdowns, whilst M&A (Merger & Acquisitions) in the UK market remains very 
active. 
 
As ever we have tried not to be too distracted by the macro news. Instead we 
have stuck to our process of identifying good opportunities in changing 
industries, and among structurally advantaged companies. In line with our 
message from last month we are seeing rapid and large industry change at 
present, which gives us some great opportunities and makes us optimistic about 
the outlook for the Company's returns. This month was a great example as many 
long positions continued to deliver good results given their structural 
advantages and regardless of the changeable macro environment. 
 
We've also seen further evidence of weaker companies delivering poor updates 
and downgrading expectations to this and outer years. Whilst the short book has 
been a headwind for a year now, there really are emerging signs that this could 
start to become a valuable source of alpha.  On this very point, we've been 
surprised at the volume of unattractive companies looking to IPO (Initial 
Public Offering) recently which we think is indicative of 1) stretched 
valuations in unattractive industries, and 2) a much more challenged earnings 
outlook going forward.  This will in turn lead to greater dispersion between 
winners and losers going forward as fundamentals reassert themselves as the 
driving force of alpha. 
 
Looking at the largest contributors to performance, we saw strong share price 
moves from several our long holdings that have continued to deliver impressive 
updates. The largest contributor was DiscoverIE which rose after posting 
results ahead of expectations for FY21 and confirming a strong start to FY22 
prompting upgrades to consensus forecasts. DiscoverIE has proved more resilient 
during the pandemic than expected but has also demonstrated a faster recovery 
subsequently. They start FY22 in a solid position with a record order book and 
an active M&A pipeline to pursue. The second largest contributor was Oxford 
Instruments which delivered very strong results in the period. This is a 
company that we've been busily adding to in recent months taking advantage of 
share price volatility despite the ongoing positive momentum in the underlying 

business. Liontrust Asset Management reported impressive growth in assets under 
management, benefiting from the structural growth/interest in sustainable 
investment strategies. The fourth largest contributor was in fact a short 
position in an indebted pharmaceuticals business that saw its fall sharply 
after the company issued a large profit warning. 
 
The largest detractor during the month was our holding in Moonpig, which fell 
despite no stock specific information. Holiday operator Jet2 fell back on the 
longer COVID-19 restrictions and their decision to issue a convertible to 
strengthen their balance sheet to take market share in a recovery. The third 
largest detractor during the month was Vistry, which fell along with the 
broader housebuilding sector on the back of renewed concerns around the Delta 
variant and the potential impact on UK economic activity. 
 
We invested in several new companies this month such as Baltic Classifieds 
Group, owner of locally dominant online advertising websites. The margins and 
growth prospects here are appealing as is the prospect of expansion through 
acquisitions. Meanwhile we met with, but rejected, many more companies this 
month that were showing good recent trading, but we feel are unlikely to 
deliver in future. We've also started introducing a few new single stock shorts 
into the portfolio recently reflecting our earlier comments on toughening 
trading conditions for some, particularly as markets normalise and taking 
advantage of their recent elevated (and unsustainable) valuation multiples. 
 
Overall, June was a good month for the portfolio with plenty of industry change 
driving returns. We remain very positive on the opportunities that we are 
seeing. We now look forward to the corporate reporting season which will begin 
in earnest towards the end of July and into August. We will of course update 
shareholders on this in due course, but from our checks we believe that 
corporate earnings will continue to validate our research and this should 
support positioning on both the long and short sides of the book. As mentioned 
above we have seen plenty of opportunities and this is reflected on the long 
side with our net currently around 120%, however as stated above we are 
beginning to see opportunities to introduce new short positions to the 
portfolio. We thank shareholders for their ongoing support. 
 
1Source: BlackRock as at 30 June 2021 
 
23 July 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

July 23, 2021 11:57 ET (15:57 GMT)