Last checked at 20 Dec 2018 11:11
BlackRock Smaller Companies Trust Plc - Correction : Portfolio UpdateBlackRock Smaller Companies Trust Plc - Correction : Portfolio Update
PR Newswire
London, December 20
The line beginning - "During October the Company’s NAV per share fell by 2.1%to 1,360.24p on a capital only basis,...." has been changed to - "DuringNovember the Company’s NAV per share fell by 2.1% to 1,360.24p on a capitalonly basis,...", to clarify that it is November NAV data. No other change hasbeen made to the rest of the announcement.
BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
All information is at 30 November 2018 and unaudited.Performance at month end is calculated on a capital only basis
| One month % | Three months % | One year % | Three years % | Five years % | |
| Net asset value* | -2.1 | -15.1 | -6.1 | 30.9 | 52.8 |
| Share price* | -6.9 | -17.8 | -4.8 | 26.8 | 45.6 |
| Numis ex Inv Companies + AIM Index | -2.1 | -11.5 | -11.0 | 12.4 | 12.7 |
*performance calculations based on a capital only NAV with debt at par, without income reinvested. Share price performance calculations exclude income reinvestment.Sources: BlackRock and Datastream
| At month end | |
| Net asset value Capital only(debt at par value): | 1,360.24p |
| Net asset value Capital only(debt at fair value): | 1,354.07p |
| Net asset value incl. Income(debt at par value)1: | 1,375.92p |
| Net asset value incl. Income(debt at fair value)1: | 1,369.75p |
| Share price | 1,220.00p |
| Discount to Cum Income NAV (debt at par value): | 11.3% |
| Discount to Cum Income NAV (debt at fair value): | 10.9% |
| Net yield4: | 2.3% |
| Gross assets2: | £723.5m |
| Gearing range as a % of net assets: | 0-15% |
| Net gearing including income (debt at par): | 3.8% |
| 2018 Ongoing charges ratio (actual)3 | 0.7% |
| 2018 Ongoing charges ratio (restated)3: | 0.8% |
| 2018 Ongoing charges ratio (including performance fees)3 | 1.0% |
| Ordinary shares in issue5: | 47,879,792 |
includes net revenue of 15.68p
includes current year revenue
As reported in the Annual Financial Report for the year ended 28 February 2018, the ongoing charges ratio is calculated as a percentage of net assets and using operating expenses, excluding performance fees, finance costs and taxation. As announced on 17 April 2018, with effect from 1 March 2018 the Company’s management fee arrangements have changed. Under the new fee basis BlackRock receives an annual fee which is calculated based on 0.60% in respect of the first GBP 750 million of the Company's total assets less current liabilities, reducing to 0.50% thereafter. The performance fee has been removed. This will impact the Ongoing Charges ratio for the Company. The restated Ongoing Charges Ratio for the year to 28 February 2018 had the new fee arrangements been in place for the full year is estimated to have been 0.77% on this basis.
Yield calculations are based on dividends announced in the last 12 months as at the date of release of this announcement, and comprise of the final dividend of 16.00 pence per share, (announced on 27 April 2018, ex-dividend on 17 May 2018) and the interim dividend of 12.00 pence per share (announced on 29 October 2018 and gone ex-dividend on 8 November 2018)
excludes 2,113,731 shares held in treasury.
| Sector Weightings | % of portfolio |
| Industrials | 31.0 |
| Financials | 22.0 |
| Consumer Services | 13.3 |
| Health Care | 7.6 |
| Consumer Goods | 7.0 |
| Basic Materials | 6.9 |
| Oil & Gas | 5.9 |
| Technology | 5.8 |
| Utilities | 0.5 |
| ----- | |
| Total | 100.0 |
| ===== | |
| Ten Largest Equity Investments | |
| Company | % of portfolio |
| 4imprint Group | 2.3 |
| YouGov | 2.0 |
| IntegraFin | 1.8 |
| Robert Walters | 1.8 |
| Big Yellow | 1.8 |
| Central Asia Metals | 1.7 |
| Zotefoams | 1.7 |
| Liontrust Asset Management | 1.7 |
| Advanced Medical Solutions | 1.6 |
| Polar Capital Holdings | 1.5 |
Commenting on the markets, Mike Prentis and Roland Arnold, representing the Investment Manager noted:During November the Company’s NAV per share fell by 2.1% to 1,360.24p on a capital only basis, performing in line with our benchmark index which also fell 2.1%; the FTSE 100 Index also fell by 2.1% on a capital only basis.
The rotation that began in October continued in November, with highly rated shares and higher momentum shares (those that have previously performed well) continuing to be the biggest victims. As a result, quality and growth shares continued to underperform value, which is a difficult backdrop given our quality growth style bias. Despite the challenging environment, positive stock specifics enabled the company to perform in-line with our benchmark.
Marketer of promotional products, 4imprint, was the largest positive contributor to performance. The shares rallied after the company said that full year revenues and profits would be towards the upper end of consensus guidance. Momentum in the business has continued into the second half of the year, consistent with growth experienced in the first half and good progress has been made towards the strategic goal of $1bn revenue in 2022. AB Dynamics reported record full year revenue and adjusted profits, which grew 51% and 78% respectively year on year, and commented on the positive outlook for the new financial year. Shares in Hill & Smith responded well to an in-line Q3 trading statement, confirming that all UK road projects that had previously been delayed have now been resumed and the outlook out to 2025 looks encouraging on the back of confirmed funding for the Government’s Road Investment Strategy.
Negative news flow directly linked to any of our holdings was limited during the month. The largest detractors were predominantly companies that continued to be caught up in the sell-off in growth shares. Robert Walters and Premier Asset Management were impacted by the continued rotation, while shares in Premier Oil have been impacted by the falling oil price.
Since the beginning of October, the stock market has seen dramatic share price reactions in a wide range of companies, particularly those that have done well recently. While we continue to believe that recent events have been more of a correction rather than the start of a bear market, we are cognisant of the fact that increasing global economic and political uncertainty, and possible trade wars, will continue to add to market volatility. We have therefore been reducing the Company’s gearing.
20 December 2018ENDS
Latest information is available by typing www.blackrock.co.uk/brsc 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.