REG-BlackRock Throgmorton Trust Plc: Portfolio Update

Blackrock Throgmorton TrustAnnouncement

25/06/2025 11:45

The information contained in this release was correct as at 31 May 2025. 
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 2025 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  7.0       5.5        -4.6     3.9       30.1      
 Share price      6.8       4.1        -6.7     -2.0      15.3      
 Benchmark*       7.3       6.4        1.1      1.1       38.9      

 

Sources: BlackRock and Deutsche Numis

*With effect from 15 January 2024 the Numis Smaller Companies plus AIM
(excluding Investment Companies) Index to Deutsche Numis Smaller Companies
plus AIM (excluding Investment Companies).

 

 At month end                                                         
 Net asset value capital only:                            643.57p     
 Net asset value incl. income:                            652.57p     
 Share price                                              578.00p     
 Discount to cum income NAV                               11.4%       
 Net yield 1 :                                            3.1%        
 Total Gross assets 2 :                                   £505.9m     
 Net market exposure as a % of net asset value 3 :        105.6%      
 Ordinary shares in issue 4 :                             77,531,864  
 2024 ongoing charges (excluding performance fees) 5,6 :  0.56%       
 2024 ongoing charges ratio (including performance        0.82%       
  fees) 5,6,7 :                                                       

1. Calculated using the Final Dividend declared on 20 February 2025 payable on
11 April 2025, together with the Interim Dividend declared on 24 July 2024
paid on 21 August 2024.

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 25,678,000 shares held in treasury.

5. The Company’s ongoing charges are calculated as a percentage of average
daily net assets and using the management fee and all other operating
expenses, excluding performance fees, finance costs, direct transaction
charges, VAT recovered, taxation and certain other non-recurring items for the
year ended 30 November 2024.

6. With effect from 1 August 2017 the base management fee was reduced from
0.70% to 0.35% of gross assets per annum. The Company’s ongoing charges are
calculated as a percentage of average daily net assets and using the
management fee and all other operating expenses, including performance fees,
but excluding finance costs, direct transaction charges, VAT recovered,
taxation and certain other non-recurring items for the year ended 30 November
2023.

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             34.6               
 Financials              23.4               
 Consumer Discretionary  9.1                
 Basic Materials         7.6                
 Technology              6.7                
 Consumer Staples        4.5                
 Real Estate             3.8                
 Health Care             2.2                
 Communication Services  1.1                
 Energy                  0.6                
 Telecommunications      0.3                
                                            
 Net Current Assets      6.1                
                         -----              
 Total                   100.0              
                         =====              
                                            
 Country Weightings      % of Total Assets  
                                            
 United Kingdom          95.0               
 United States           3.8                
 Australia               0.8                
 Canada                  0.4                
                                            
                         -----              
 Total                   100.0              

 

 Market Exposure (Quarterly)                                 
                                                             
                 31.08.24   30.11.24   28.02.25   31.05.25   
                  %          %          %          %         
 Long            111.7      111.9      117.8      108.4      
 Short           2.7        3.4        4.9        2.8        
 Gross exposure  114.4      115.3      122.7      111.1      
 Net exposure    109.0      108.5      112.9      105.6      

 

 Ten Largest Investments                           
                                                   
 Company                  % of Total Gross Assets  
                                                   
 GPE                      3.2                      
 Grafton Group            3.0                      
 Rotork                   2.9                      
 Tatton Asset Management  2.9                      
 Bellway                  2.8                      
 Breedon                  2.8                      
 XPS Pensions Group       2.8                      
 IntegraFin               2.7                      
 Ibstock                  2.7                      
 Morgan Sindall           2.6                      

 

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

 

The Company returned 7.0% in May, underperforming its benchmark the Deutsche
Numis Smaller Companies +AIM (excluding Investment Companies) Index, which
returned 7.3%.

 

May proved a strong month for most financial assets on the back of better
economic data (e.g. US jobs data and CPI), strong company reporting, and of
course positive developments on the trade front (US and China slashing their
proposed tariffs for 90 days) as Liberation Day chaos has given way to the
TACO trade on the belief that tariff impact will be less than initially
envisaged. Equity markets responded positively, effectively reversing much of
the “Liberation Day” tariff turmoil.  Bond markets had a tougher time,
with US Treasury yields continuing to widen amidst growing fears over the US
fiscal situation alongside a broader global sell-off in long-end bonds. It
remains too early to tell what the exact impact of the tariff proposals will
be, or where the current US-China 90 day will end. Indeed, is it now simply
that tariffs have effectively been bracketed between 10% and 30%?  However,
as it stands most companies continue to report positively across tech and
consumer with little to any impact from the macro and political noise.

 

The largest positive contributor during the month was Chemring. The shares
benefitted from continued outperformance of the Aerospace & Defence sector
through the month, driven higher by expectations for the upcoming NATO summit
in June. The company has since reported a sharp rise in interim profits with a
record order book, reiterating full year guidance. Jet2 continued to rally
following strong results at the end of April, signalling an unchanged outlook
and announcing a new and substantial share buyback utilising their strong
balance sheet. Europe to US passenger data also rebounded to +2% in April
after a steep March decline, which helped the shares. Other notable
contributors included mobile payments business, Boku and UK domestics Grafton
and Great Portland.

 

The largest detractor during the month was Victorian Plumbing. The company
reported solid first half results, but the shares fell significantly on the
news that the company is investing in re-launching the MFI homewares brand as
a standalone business, as well as downgrades on higher costs in the underlying
business. This investment will depress group profits, and while homewares is a
much larger addressable market, it is highly competitive with well-established
peers. We appreciate Management’s long-term vision, but this was a step too
far in terms of investment thesis deviation so in line with our process we
have exited the position. Against the backdrop of a market up 7% in the month,
many other relative detractors were simply shares that failed to keep pace
with the strength in the broader market. For example, Tatton Asset Management
was the second largest detractor, despite no stock specific news flow, as they
remained flat on the month. Similarly, shares in housebuilder Bellway rose a
mere 2%, so this was the third biggest detractor to relative performance.
Clearly, with no deterioration in the investment case for either of these
names we retain our holdings.

 

We have been surprised by the speed and quantum of the stock market recovery
in recent weeks and in hindsight it would have been beneficial to performance
to have increased the net during the initial sell-off in March & April.  On a
more positive note, we are pleased with the trading patterns that many of our
longs (and in several cases our shorts) are reporting, which bodes well for
longer term returns. Our companies are delivering, and as often is the case it
is the times of uncertainty such as these that present the best opportunities
for management teams to distinguish themselves and for fundamental analysis to
add value. The opportunity set remains rich and compelling, we think we are
very much in game, and we look forward to updating you in due course. 

 

The gross and net remain around 111% and 105% respectively reflecting the
challenging backdrop facing the market, in particular UK small and mid-caps.
However, we continue to believe the valuation opportunity remains compelling
and we believe in time, investors patience will be rewarded.

 

We thank shareholders for your ongoing support.

 

 

25 June 2025

 

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.

 

 

 Release (https://mb.cision.com/Main/22398/4168573/3523457.pdf)  



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