Blackrock Throgmorton Investment Trust PLC — Net Asset Value 2014

Jul 16, 2014

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

BLACKROCK THROGMORTON TRUST PLC - Portfolio Update

PR Newswire

London, July 15

BLACKROCK THROGMORTON TRUST PLCAll information is at 30 June 2014 and unaudited.Performance at month end is calculated on a cum income basis One Three One Three Month Months Year YearsNet asset value* -2.4% -6.2% 19.1% 44.1%Net asset value -2.4% -6.2% 19.1% 38.3%Share price -4.2% -10.3% 20.0% 50.9%Benchmark** -1.8% -3.9% 19.7% 35.6%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 Companiesplus AIM (excluding investment companies) Index as the Company's benchmark.For the one year and three year periods the indices have been blended toreflect this.At month endNet asset value capital only: 323.76pNet asset value incl. income: 326.98pShare price: 279.00pDiscount to cum income NAV 14.7%Net yield: 1.4%*Total Gross assets: £239.1m**Net market exposure asa % of net asset value^: 104.8%Ordinary shares in issue: 73,130,326****Calculated using prior year interim and final dividends paid.**Includes current year revenue and excludes the gross exposure throughcontracts for difference.***Excluding 7,400,000 shares held in treasury.^Long positions less short positions as a percentage of net asset value.Sector Weightings % of total assetsIndustrials 29.3Consumer Services 18.2Financials 17.9Technology 8.4Basic Materials 7.6Health Care 6.5Consumer Goods 5.6Oil & Gas 4.0Telecommunications 1.8Net current liabilities 0.7 -----Total 100.0 =====Market Exposure (Quarterly) 31.08.13 30.11.13 28.02.14 31.05.14Long 117.5% 118.4% 118.8% 116.9%Short 12.0% 11.2% 10.7% 12.4%Gross exposure 129.5% 129.6% 129.5% 129.3%Net exposure 105.5% 107.2% 108.1% 104.5%Ten Largest InvestmentsCompany % of total assetsSenior Engineering 2.6Workspace Group 2.4Restaurant Group 2.0Optimal Payments 1.8Elementis 1.8Victrex 1.8Dunelm Group 1.8Bodycote 1.8Polar Capital Holdings 1.7Rathbone Brothers 1.7Commenting on the markets, Mike Prentis and Ralph Cox*, representing theInvestment Manager noted:During June the Company's NAV per share fell by 2.4% on a cum income basiswhilst the benchmark index fell by 1.8%. By contrast the FTSE 100 Index fellby 1.2% (all on a total return basis).Slight underperformance was driven by stock selection, sector allocation wasslightly positive. The CFD portfolio incurred a loss with losses on the longportfolio exceeding gains on the short portfolio.The only individual stock which materially impacted on relative performanceduring the month was Xaar, which is held in the long only portfolio and also asa long CFD. Following a strong operational and share price performance in2013, Xaar had already indicated that 2014 was likely to be a dull year, and theshares gave up some of the gains of 2013. In June, Xaar released a furtherupdate which indicated 2014 revenues are expected to be 3% lower than in 2013,and that it had seen a higher level of competition in the ceramics market withsome price pressure. New product launches are still a way off, but indicationsfrom potential customers to date have been encouraging. The shares fell by afurther 39% during the month and have more than halved from their highs at theturn of the calendar year. We decided to reduce our holding for now, taking itdown to approximately 0.7% of the gross portfolio.We further reduced our exposure to the UK housing market, an exposure which hasserved us well over the last 18 months or so. We completed the disposal ofour holdings in Bellway and Countrywide and used the proceeds to start aholding in Hellermann Tyton, a global supplier of cable fasteners, mainly to theautomotive market. We see the company doing well as a consequence of increasingcar production, especially in Europe. Its products are designed in for car modellife spans, so revenues are relatively predictable and the shares areattractively valued.We have continued to be wary of most IPOs. However we did make an investment inFDM during the month. FDM Group is an international professional servicesprovider specialising in the recruitment, training and deployment of its ownpermanent IT Consultants. FDM employs high-calibre graduates, typically withscience, technology, engineering and maths degrees, as well as ex-militarypersonnel, providing them with high quality training to qualify them to becomeFDM Consultants. On completion of their training, FDM Consultants are deployedon client sites, as full-time employees of the Group. FDM's track record isgood and the shares were offered at a sensible price at IPO.*From 1 April 2014, Richard Plackett is on a six-month sabbatical. During thisperiod the BlackRock Throgmorton Trust plc is being co-managed by Ralph Cox.16 July 2014ENDSLatest information is available by typing www.blackrock.co.uk/thrg on theinternet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICVterminal). Neither the contents of the Manager's website nor the contents ofany website accessible from hyperlinks on the Manager's website (or any otherwebsite) is incorporated into, or forms part of, this announcement.