REG-BlackRock Throgmorton Trust Plc: Portfolio Update

Blackrock Throgmorton TrustAnnouncement

12/08/2025 15:30

The information contained in this release was correct as at 31 July 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 July 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  0.2       9.2        -5.5     9.4       27.5      
 Share price      0.7       11.1       -8.3     1.4       16.0      
 Benchmark*       0.7       11.6       2.5      10.7      39.9      

  

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:                            653.85p     
 Net asset value incl. income:                            665.72p     
 Share price                                              601.00p     
 Discount to cum income NAV                               9.7%        
 Net yield 1 :                                            3.0%        
 Total Gross assets 2 :                                   £509.3m     
 Net market exposure as a % of net asset value 3 :        108.0%      
 Ordinary shares in issue 4 :                             76,506,864  
 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 paid on 11
April 2025, together with the Interim Dividend declared on 01 August 2025
payable on 05 September 2025.

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 26,703,000 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             33.1               
 Financials              29.1               
 Consumer Discretionary  6.0                
 Basic Materials         5.8                
 Consumer Staples        5.5                
 Technology              5.4                
 Health Care             3.4                
 Real Estate             2.6                
 Energy                  1.5                
 Communication Services  1.2                
                                            
 Net Current Assets      6.4                
                         -----              
 Total                   100.0              
                         =====              
                                            
 Country Weightings      % of Total Assets  
                                            
 United Kingdom          86.8               
 United States           9.6                
 Germany                 1.5                
 France                  0.7                
 Australia               0.7                
 Italy                   0.7                
                                            
                         -----              
 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  
                                                   
 Boku                     3.4                      
 XPS Pensions Group       3.2                      
 Tatton Asset Management  3.1                      
 Morgan Sindall           2.9                      
 Rosebank Industries      2.9                      
 IntegraFin               2.8                      
 GPE                      2.7                      
 Genuit                   2.4                      
 Rotork                   2.2                      
 Chemring Group           2.2                      
                                                   

 

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

 

The Company returned 0.2% in July, underperforming its benchmark, the Deutsche
Numis Smaller Companies plus AIM (excluding Investment Companies Index, which
returned 0.7%.1

 

Markets were strong overall in the month with most major indices registering
positive returns. Economic data was broadly supportive of continued tepid
growth and gradually falling inflation. In the US, President Trump continues
to pressure the Federal Reserve (the Fed) to lower rates, while Chairman
Powell continues to resist and make the case for central bank independence.
Recent revisions to BLS (the Bureau of Labor Statistics) employment numbers in
early August may force Powell’s hand at the next Fed meeting in September.
In the UK, the Government’s failure to pass their welfare reforms
highlighted their relative weakness and made the path of public finances that
much more precarious. As discussed in the June month-end update, this, along
with some weaker data and softer company statements has prompted us to change
our view on UK domestic cyclicals.

 

At the risk of sounding like a broken record, M&A (mergers and acquisitions)
was once again a headwind during the month, this time it was financial
services business, Just Group, which received an offer from Brookfield Wealth
Solutions at a 75% premium. Not owning this stock significantly impacted
relative performance, and the irony is that a business which cost us 52 basis
points of relative performance in July, has subsequently issued a profit
warning in August for the precise reason that we chose to avoid buying these
shares. Scant consolation, but excluding this impact, the Company performed
in-line with the benchmark. Bellway was the second largest detractor, falling
in sympathy with other housebuilders on a raft of negative macro and industry
data, though a short in another housebuilder mitigated some of this impact. We
have moderated our position in housebuilders reflecting the risk that volume
recovery will be pushed to the right (again). Similarly, Grafton was caught up
in fears on UK macro, but also did issue a trading statement which showed
slower trading in the last couple of months in the UK after a positive start
to the year. We retain a position in Grafton but at circa half the pervious
target weight as whilst we see softer trading near term, we do think the
shares offer compelling value on a recovery earnings basis.

 

Turning to positives, the portfolio did benefit from one of our holdings being
a recipient of M&A activity, as Alpha Group International, the FX solutions
business, received a bid from US listed digital payments business Corpay. The
second largest contributor was localised payments solutions provider, Boku,
which upgraded full year guidance as a result of the ongoing shift from
traditional card based transactions to Local Payment Methods, which has seen
Boku’s total payment volume increase to over US$7 billion. Shares in Tatton
Asset Management continued to rise during the month following strong results
in June and benefiting from strength in equity markets.

 

July was another busy month for the Company. As discussed, we have changed our
view on UK domestic cyclicals and reflected this in positioning in the month.
We have reduced our long exposure and added additional shorts across a range
of names and industries. We have significantly reduced exposure to
housebuilders, suppliers to housebuilding as well as RMI (repair, maintenance
and improvements) exposed companies, as we see too much forecast risk on a
6-12 month view. We are still finding many compelling opportunities, just
outside of the domestic cyclical bucket.

 

Outside the UK we have seen a strong results season for the positioning of the
portfolio, and we have seen several key investment themes and positions
validated through company reporting. As mentioned in the June update, this is
an area we have been adding to in recent weeks and non-UK exposures is now
c.12%. 

 

We ended the month with the gross at c.117% and the net at c.108%.

 

We thank shareholders for your ongoing support.

 

1Source: BlackRock as at 31 July 2025

 

12 August 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.

 

 



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