REG-BlackRock Throg Tst: Portfolio Update

Blackrock Throgmorton TrustAnnouncement

18/02/2021 14:10

The information contained in this release was correct as at 31 January 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 January 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      -0.1      20.7    11.8     38.3    115.4 
 Share price          -1.2      21.2    10.9     63.4    155.0 
 Benchmark*            0.7      21.3     7.9     10.9     51.4 

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:                                         739.05p 
 Net asset value incl. income:                                         746.13p 
 Share price                                                           756.00p 
 Premium to cum income NAV                                                1.3% 
 Net yield (1):                                                           1.4% 
 Total Gross assets (2):                                               £666.4m 
 Net market exposure as a % of net asset value (3):                     119.7% 
 Ordinary shares in issue (4):                                      89,310,400 
 2020 ongoing charges (excluding performance fees) (5,6):                0.60% 
 2020 ongoing charges ratio (including performance fees) (5,6,7):        1.60% 

1. Calculated using the 2020 interim dividend declared on 23 July 2020 and
paid on 26 August 2020, together with the 2019 final dividend declared on 06
February 2020 and paid on 27 March 2020.

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
2019.

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                       33.2 
 Consumer Services                 18.3 
 Financials                        17.2 
 Consumer Goods                    10.1 
 Health Care                        6.6 
 Technology                         6.1 
 Telecommunications                 3.5 
 Basic Materials                    1.8 
 Net current assets                 3.2 
                                  ----- 
 Total                            100.0 
                                  ===== 
                                        
 Country Weightings   % of Total Assets 
                                        
 United Kingdom                    88.0 
 United States                      7.2 
 France                             2.4 
 Australia                          0.7 
 Switzerland                        0.6 
 Denmark                            0.6 
 Netherlands                        0.4 
 Israel                             0.1 
                                  ----- 
 Total                            100.0 
                                  ===== 

   

 Market Exposure (Quarterly)                                 
                                                             
                  29.02.20   31.05.20   31.08.20   30.11.20  
                          %          %          %          % 
 Long                 119.3      118.6      121.0      120.4 
 Short                  8.9        2.1        2.4        1.9 
 Gross exposure       128.2      120.7      123.4      122.3 
 Net exposure         110.4      116.6      118.6      118.6 

   

 Ten Largest Investments                              
                                                      
 Company                  % of Total Gross Assets (1) 
                                                      
 Games Workshop                                   3.3 
 YouGov                                           3.1 
 Electrocomponents*                               3.0 
 Gamma Communications                             2.8 
 Watches of Switzerland                           2.8 
 Impax Asset Management                           2.5 
 Breedon*                                         2.2 
 IntegraFin*                                      2.1 
 Chegg*                                           2.0 
 Pets at Home*                                    2.0 

(1) These percentages reflect portfolio exposure gained from both the equity
holdings and exposure through contracts for differences where relevant

Commenting on the markets, Dan Whitestone, representing the Investment Manager
noted:

During January the Company returned -0.1%, while its benchmark, the Numis
Smaller Companies plus AIM (excluding Investment Companies) Index, returned
0.7%. The long book contributed positively during the month, while the short
book modestly detracted (both on a gross basis).

Despite a positive and optimistic start to January, global stock markets
subsequently retreated as the rates of COVID-19 infections continued to
worsen, while lockdowns were tightened and extended. UK small & mid-caps,
however, were able to buck the trend and deliver a positive return through
January as the removal of the risk associated with a no-deal Brexit saw
continued interest in this end of the market.

January has seen many businesses continue to trade strongly, and in the early
reporting season most of our long holdings that have reported have beaten
estimates and raised guidance, often on both revenues and profits. This
reaffirms our faith in their differentiation and gives us confidence in the
outlook for the Company’s returns going forward. It also meant that January
was a month where we saw great opportunities and made several new purchases as
well as increasing our positions in companies that reported good results.

The largest contributor came from the purchase of Dr Martens which we had been
working on for several months and where we were able to cornerstone the IPO
(Initial Public Offering). The nature of retail is changing, and Dr Martens
has global brand recognition and a global retail presence supported by a
strong online offer. Watches of Switzerland, once again contributed positively
to performance, is a retailer that has continued to trade extremely well
during the lockdowns as the company has innovated and adapted to meet consumer
demand through online channels. Specialist sustainable investing fund manager,
Impax Asset Management, reported a 24.8% increase in assets under management,
as the trend of increasing investor demand for sustainable products continued
through the quarter.

Many of the larger detractors during January were shares that rallied which
the Company does not own. However, our holding in Games Workshop detracted
this month as it simply fell back from last month’s strong gains, something
we see as temporary and we believe it remains a good long-term investment. Our
position in Spirent was also a detractor after the shares weakened post an
in-line full-year trading update.

Despite the nervous sentiment of January and the headlines of a difficult
market environment, our main takeaway has been that we have seen a very robust
early reporting season with many companies beating estimates at both the
revenue and profit lines. We believe this is a solid underpin for long-term
share price returns and gives us reassurance that we are on the right track.
The IPO market remains strong and has presented us with the opportunity to
invest in several exciting new businesses, and the pipeline for upcoming IPOs
looks encouraging. As such, we have seen January as a great source of
opportunity and look forward with confidence to the rest of the year. The
overall net exposure is now c.120%, reflecting conviction in our long
positions, an increase in exciting investment opportunities and our
constructive view on UK small and mid-caps for 2021.

We thank shareholders for their support and look forward to the rest of 2021.

(1)Source: BlackRock as at 31 January 2021

18 February 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.



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