Last checked at 21 Oct 2016 18:30
BLACKROCK THROGMORTON TRUST PLC - Portfolio UpdateBLACKROCK THROGMORTON TRUST PLC - Portfolio Update
PR Newswire
London, October 21
| BLACKROCK THROGMORTON TRUST PLC All information is at 30 September 2016 and unaudited. | |||||||||||
| Performance at month end is calculated on a cum income basis | |||||||||||
| One Month % | Three months % | One year % | Three years % | Five years % | |||||||
| Net asset value (undiluted)# | 3.5 | 16.9 | 10.4 | 39.6 | 125.8 | ||||||
| Net asset value (fully diluted) | 3.5 | 16.9 | 10.4 | 39.6 | 119.7 | ||||||
| Share price | 1.9 | 13.6 | 4.0 | 25.0 | 120.7 | ||||||
| Benchmark* | 2.2 | 12.5 | 8.6 | 24.5 | 86.6 | ||||||
| Sources: BlackRock and Datastream #Prior to dilution arising on conversion of subscription shares. *With effect from 1 December 2013 the Numis Smaller Companies excluding AIM (excluding investment companies) Index replaced the Numis Smaller Companies plus AIM (excluding investment companies) Index as the Company’s benchmark. The three and five year period indices have been blended to reflect this. | |||||||||||
| At month end | |||||||||||
| Net asset value capital only: | 405.35p | ||||||||||
| Net asset value incl. income: | 410.72p | ||||||||||
| Share price | 334.38p | ||||||||||
| Discount to cum income NAV | 18.6% | ||||||||||
| Net yield | 2.0%* | ||||||||||
| Total Gross assets | £300.4m** | ||||||||||
| Net market exposure as a % of net asset value^ | 109.4% | ||||||||||
| Ordinary shares in issue: | 73,130,326*** | ||||||||||
| 2015 ongoing charges (excluding performance fees): | 1.1%**** | ||||||||||
| 2015 ongoing charges (including performance fees): | 2.3% | ||||||||||
| * Calculated using current year interim dividend paid on 19 August 2016 and prior year final dividend. ** Includes current year revenue and excludes the gross exposure through contracts for difference. *** Excluding 7,400,000 shares held in treasury. **** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 November 2015. ^Long positions less short positions as a percentage of net asset value. | |||||||||||
| Sector Weightings | % of Total Assets | ||||||||||
| Industrials | 32.1 | ||||||||||
| Consumer Services | 22.0 | ||||||||||
| Financials | 14.0 | ||||||||||
| Consumer Goods | 8.6 | ||||||||||
| Technology | 7.2 | ||||||||||
| Basic Materials | 7.0 | ||||||||||
| Health Care | 6.9 | ||||||||||
| Oil & Gas | 2.0 | ||||||||||
| Net current assets | 0.2 | ||||||||||
| ------ | |||||||||||
| Total | 100.0 | ||||||||||
| ==== | |||||||||||
| Market Exposure (Quarterly) | |||||||||||
| 30.11.15 % | 29.02.16 % | 31.05.16 % | 31.08.16 % | ||||||||
| Long | 115.2 | 118.2 | 114.4 | 114.3 | |||||||
| Short | 9.2 | 11.2 | 8.3 | 8.3 | |||||||
| Gross exposure | 124.4 | 129.4 | 122.7 | 122.6 | |||||||
| Net exposure | 106.0 | 107.0 | 106.1 | 106.0 | |||||||
| Ten Largest Investments | |
| Company | % of Total Gross Assets |
| 4imprint Group | 3.5 |
| CVS Group | 2.9 |
| Dechra Pharmaceuticals | 2.7 |
| JD Sports | 2.6 |
| Hill & Smith | 2.0 |
| Avon Rubber | 1.9 |
| Fevertree Drinks | 1.7 |
| Workspace Group | 1.7 |
| Cineworld Group | 1.7 |
| Advanced Medical Solutions | 1.7 |
Commenting on the markets, Mike Prentis and Dan Whitestone, representing the Investment Manager noted:During September the Company’s NAV per share rose by 3.5% on a cum income basis whilst our benchmark index rose by 2.2%; the FTSE 100 Index rose by 1.8%.
The long only portfolio increased in value by 3.0%, outperforming the benchmark by 0.8%. The CFD portfolio added 0.74% to performance. Long CFDs added 0.7% and the short added 0.03% to NAV. These figures are before costs.
Outperformance in the long only portfolio was largely driven by stock selection with our large holdings in Avon Rubber, 4imprint and JD Sports contributing well. Avon Rubber’s September trading update confirmed it was trading in line with market expectations helped by demand from the US. Avon is a major exporter to the US, China and other countries. 4imprint’s recent half year results indicated a 19% increase in earnings per share; almost all of its revenue is generated in the USA. JD Sports’ interims showed revenues up 20% and earnings per share up 69%; net cash was £231 million. JD Sports continues to benefit from its strong association with the major sports brands and is gradually expanding its footprint throughout Europe.
There were no holdings which were significant detractors from relative performance from a stock specific point of view during the month.
Sector allocation detracted from relative contribution in the long only portfolio during the month. Whilst we benefitted from our overweight position in housing related stocks, our underweight position in mining stocks continued to detract from relative performance.
Activity during the month was fairly modest within the long only portfolio, although we continued to selectively reduce UK exposure in favour of more US and emerging market exposed companies.
Turning to the CFD portfolio, September was a positive month, with both the long and short book generating a positive return.
When looking at the top 5 contributors, 4 of them were long positions (MicroFocus, JD Sports, Melrose, and RPC Group) and 1 a short position (UK government outsourcer). MicroFocus was the biggest performer, adding 0.15% to performance as the shares rose in response to the news of a transformational acquisition. Unfortunately, we have had to sell MicroFocus from the fund as it is now a FTSE100 company. The good news is the other top contributors mentioned are core holdings within the CFD portfolio, are trading well, and we hope will continue to do so for some time to come. The 3rd biggest contributor was from a short position in a UK government outsourcing business, where the shares collapsed in response to a profit warning. A reminder of the potential for strong returns for both the long and short book in the universe of small and medium sized companies. In terms of the detractors, not much to draw out, a mixture of short and long positions, but the losses were small in each. Overall, decent month, the CFD portfolio is in good shape, and we think the portfolio is well positioned for the current environment.
21 October 2016
ENDS
Latest information is available by typing www.blackrock.co.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.