REG-BlackRock Throg Tst: Portfolio Update

Blackrock Throgmorton TrustAnnouncement

11/05/2021 11:10

The information contained in this release was correct as at 30 April 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 April 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      10.9      18.4    71.6     60.2    149.8 
 Share price          10.8      18.4    70.9     76.2    196.9 
 Benchmark*            5.9      15.6    60.3     27.1     64.8 

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:                                         870.41p 
 Net asset value incl. income:                                         874.46p 
 Share price                                                           886.00p 
 Premium to cum income NAV                                                1.3% 
 Net yield (1):                                                           1.2% 
 Total Gross assets (2):                                               £811.5m 
 Net market exposure as a % of net asset value (3):                     119.2% 
 Ordinary shares in issue (4):                                      92,795,389 
 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 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 Services                     21.5 
 Financials                            16.3 
 Consumer Goods                        10.6 
 Technology                             7.5 
 Health Care                            4.9 
 Telecommunications                     3.3 
 Basic Materials                        2.3 
 Consumer Discretionary                 0.2 
 Net current assets                     3.1 
                                      ----- 
 Total                                100.0 
                                      ===== 
                                            
 Country Weightings       % of Total Assets 
                                            
 United Kingdom                        90.1 
 United States                          6.9 
 France                                 0.9 
 Australia                              0.8 
 Denmark                                0.6 
 Netherlands                            0.5 
 Israel                                 0.2 
                                      ----- 
 Total                                100.0 
                                      ===== 

   

 Market Exposure (Quarterly)                                 
                                                             
                  31.05.20   31.08.20   30.11.20   28.02.21  
                          %          %          %          % 
 Long                 118.6      121.0      120.4      126.8 
 Short                  2.1        2.4        1.9        1.5 
 Gross exposure       120.7      123.4      122.3      128.3 
 Net exposure         116.6      118.6      118.6      125.3 

   

 Ten Largest Investments                          
                                                  
 Company                  % of Total Gross Assets 
                                                  
 Gamma Communications                         3.0 
 Electrocomponents                            2.9 
 Games Workshop                               2.6 
 Impax Asset Management                       2.6 
 YouGov                                       2.5 
 Watches of Switzerland                       2.4 
 Moonpig Group                                2.3 
 Ergomed                                      2.1 
 CVS Group                                    2.1 
 Pets at Home                                 2.1 

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

The Company returned 10.9%(1) in April, outperforming its benchmark the Numis
Smaller Companies plus AIM (excluding Investment Companies) Index, which
returned 5.9%(1), with outperformance during the month being driven by the
long book.  

Stock markets rose again in April and the major thematic issue in the month
was the ongoing debate about rising inflation and the impact on interest
rates. There were various verbal interventions by national monetary policy
figures on topics of exchange rates and the need (or not) for rate rises soon,
but there has been no clear statement to change the consensus view that rates
will not rise soon. April also saw the start of the quarterly reporting season
which provided some clarity over trading conditions for many industries.
Judged by corporate earnings, the economic recovery is doing well, and the
majority of results were strong across a broad array of industries. Most of
the top contributors in the month were from holdings that reported strong
results with upgrades to outer year forecasts reflecting a more positive
outlook, and the shares subsequently moved higher. Overall though the general
pattern was of strong trading with good growth even for those who grew very
fast in 2020, and so the higher share prices now are justified by the higher
profits than had been expected a year ago.

The largest positive contributor during the month was sustainable focused fund
manager, Impax Asset Management, which rose after the company reported another
quarter of strong growth in assets under management. The company’s AUM grew
to £30bn as at the end of March, an increase of 19% during the quarter, and
this growth looks well set to continue given the strength of their franchise,
market leading investment performance and the structural growth and interest
in sustainability which underpins the company’s investment philosophy.
Shares in Ergomed moved higher after the company announced its expansion into
Japan, the fourth largest pharmaceuticals market in the world, a positive step
in their expansion into a global leading international pharmaceutical services
specialist. Grafton, the building materials and DIY retailer, reported an
impressive start to the year with growth ahead of consensus, driving 15-20%
upgrades to profit forecasts.

Detractors during the month were limited, and of the largest five detractors
only one was a share that we own, with the others being companies not held
within the portfolio that rebounded from recent weakness. The largest
detractor the we hold was Spectris, which reported a strong first quarter
update, but saw its shares weaken on profit taking.

Ultimately, April was a very strong month for the Company, and a month that
we’ve felt for some time was coming. The reporting season has generally been
very strong for 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 the top three contributors to
performance, there are many shares that we could discuss that have driven
performance this month on the back of positive updates such as Oxford
Instruments, CVS Group, and Electrocomponents.

Our outlook is still very positive that 2021 is the first full year of a new
economic cycle that will see rapid industry change and that there are huge
opportunities in emerging companies. We therefore continue to operate a net
exposure of around 120% and we are making sure we work hard to capture any new
opportunities and monetise our existing ideas. We thank shareholders for their
support.

(1)Source: BlackRock as at 30 April 2021

11 May 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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