News Column

BLACKROCK THROGMORTON TRUST PLC - Portfolio Update

May 16, 2014



BLACKROCK THROGMORTON TRUST PLC All information is at 30 April 2014 and unaudited. Performance at month end is calculated on a cum income basis One Three One Three Month Months Year Years Net asset value* -3.1% -1.5% 24.9% 39.4% Net asset value -3.1% -1.5% 24.9% 47.3% Share price -2.1% -2.2% 33.6% 63.6% Benchmark** -2.7% -0.5% 21.3% 34.3% 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. For the one year and three year periods the indices have been blended to reflect this. At month end Net asset value capital only: 336.25p Net asset value incl. income: 338.10p Share price: 304.50p Discount to cum income NAV 9.9% Net yield: 1.3%* Total assets: 247.3m** Net market exposure as a % of net asset value^: 106.1% 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 through contracts 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 assets Industrials 28.1 Financials 19.0 Consumer Services 19.0 Technology 8.0 Consumer Goods 7.1 Basic Materials 6.9 Health Care 6.8 Oil & Gas 4.0 Telecommunications 1.7 Net current liabilities -0.6 ----- Total 100.0 ===== Market Exposure (Quarterly) 31.05.13 31.08.13 30.11.13 28.02.14 Long 117.3% 117.5% 118.4% 118.8% Short 10.2% 12.0% 11.2% 10.7% Gross exposure 127.5% 129.5% 129.6% 129.5% Net exposure 107.1% 105.4% 107.2% 108.1% Ten Largest Equity Investments Company % of total assets Workspace Group 1.8 Senior Engineering 1.8 Optimal Payments 1.7 Elementis 1.7 Avon Rubber 1.7 Headlam Group 1.7 Polar Capital Holdings 1.6 Restaurant Group 1.6 Dunelm Group 1.4 Paragon Group 1.4 Commenting on the markets, Mike Prentis and Ralph Cox*, representing the Investment Manager noted: During April the Company's NAV per share fell by 3.1% whilst the benchmark index fell by 2.7%; by contrast the FTSE 100 Index rose by 3.1%, helped by the bid approach for AstraZeneca (all figures on a total return basis). April was a difficult month for midcaps and AIM with a reversal of the recent momentum trend. It seems hedge funds were reducing their market exposures, and this often meant taking profit in the generally higher quality stocks which have performed well and buying back shorts in some lower quality companies. In such phases it is clearly more difficult to hold good companies and also outperform. We think this phase is now largely over. The relative contribution from long only portfolio stock selection was slightly positive during April. There was no overall contribution from sector allocation but the contribution from the CFD portfolio was negative. With markets falling and the CFD portfolio net long we experienced losses on the long CFD portfolio which exceeded the gains on the short CFDs. Looking at stock selection the best relative contribution from holdings in the month came from Faroe Petroleum and ITE Group. Faroe had a discovery in the Norwegian Sea which tested well; increased acquisition activity in the sector probably also helped. ITE shares partly recovered from the large fall in March. The largest negative contributor to stock selection in the month came from Blinkx. Blinkx shares continued to come under pressure despite a positive capital markets day and trading update. Sector allocation was impacted negatively by our overweight position in housebuilders which were sold off in April. Investors are worried that the housing market is too hot and measures will be taken to calm it. We do not see this as necessarily being bad for either the housebuilders or the estate agents. However, our overweight position in general financials was helpful and this counterbalanced the negative contribution from housebuilders. We continued to reduce some of our holdings in larger midcaps and used the proceeds to gain greater exposure to companies benefitting from the gradual improvement in the economies of Continental Europe. We also added a small holding in Skyepharma, a drug delivery company, which completed a large placing. Skyepharma uses its know-how, capabilities and proprietary drug delivery technologies to develop new formulations of existing products as well as new chemical entities. Their best selling product is Flutiform, a treatment for asthma. Flutiform is approved for sale in many European countries and Japan; the first sales were achieved in September 2012 and are growing strongly. *From 1 April 2014, Richard Plackett is on a six-month sabbatical. During this period the BlackRock Throgmorton Trust plc is being co-managed by Ralph Cox. 15 May 2014 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.




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Source: PR Newswire (UK Disclosure)