BlackRock Throgmorton Trust plc

UK Smaller Companies

Rated Fund 2017-2018. Adds value in falling and rising markets

Winner of Money Observer's Best UK Smaller Companies Trust award in 2016, BlackRock Throgmorton stands out due to its use of derivatives. It can invest up to 30 per cent of its assets in contracts for difference (CFDs), making this both a more interesting and perhaps a more risky proposition than the average trust in this sector.

Mike Prentis has run the trust since BlackRock took it over in 2008, with Dan Whitestone joining him in 2015 to manage the CFD portfolio. CFDs are used to add to the trust's exposure to companies it already holds or to short-sell shares in companies its managers expect to fall. They can therefore add value in falling and rising markets.

The trust derives most of its returns from its conventional 'long-only' portfolio. Here Prentis's aim is to hold a portfolio largely comprised of high-quality growth stocks capable of becoming much larger over the medium term. He looks for companies that are delivering strong organic growth, in some cases supplemented by sensible strategic acquisitions. He favours those with fairly predictable revenues, good operating margins and strong cash generators. They include companies that are international in terms of sales, and others that are more UK-focused with strong market positions.In terms of size, the trust's last report shows that it had 45 per cent invested in FTSE 250 companies, 30 per cent in Aim-listed companies and 22 per cent in FTSE Small Cap.Shares in the trust have traded at a discount to net asset value of between 10 and 20 per cent over the past three years.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
BlackRock Throgmorton Trust plc
Manager
BlackRock Fund Managers Limited
Type
Closed Ended Investment Company
ISIN
GB0008910555
Sector
UK Smaller Companies
Launched
01/12/1962
OCF
0.87 %
Risk Rating
4
3 Year Sharpe
1.18
3 Year Alpha
8.69
Yield
1.5 %
Benchmark
Numis SC Plus AIM Ex Invt Com TR GBP
Fund Size
£ 409.78 million
NAV
611
Gearing
128
Discount Premium
-8
To provide shareholders with long term capital growth and an attractive total return through investment primarily in UK smaller and mid-capitalisation companies traded on the London Stock Exchange. The Company may hold up to 15% of its gross assets, at the time of acquisition, in securities of companies which are listed or traded on a stock exchange outside the UK. Under normal circumstances, the Company has the ability to have up to 30% of its net assets invested in a portfolio of CFDs and/or comparable equity derivatives, enabling the Company to have a maximum net market exposure of 130%. Typically, the Company may hold a mixture of long and short CFDs and/or comparable equity derivatives, which results in a net market exposure of between 100% and 115%. Also, the Company can deploy the full 30% of permissible leverage to reduce its overall net market exposure to 70%.
Holding %
SHORT CFD POSITIONS (VARIOUS) 10.45 %
Dechra Pharmaceuticals PLC 3.28 %
Robert Walters PLC 2.72 %
Ibstock PLC 2.28 %
Ascential PLC 2.26 %
Hill & Smith Holdings PLC 2.17 %
4imprint Group PLC 2.15 %
Restore PLC 1.98 %
Bodycote PLC 1.89 %
Melrose Industries PLC 1.88 %
Region %
United Kingdom 97.36 %
Sector %
Industrials 24.56 %
Consumer Cyclical 21.51 %
Technology 12.02 %
Financial Services 10.69 %
Basic materials 10.02 %
Real Estate 8.74 %
Healthcare 6.19 %
Name
BlackRock Fund Managers Limited
Address
EH3 8BL, Edinburgh, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Dan Whitestone
Joined 03/26/2015

Daniel Whitestone is a member of the UK Equity team in the Fundamental Equity division of BlackRock's Alpha Strategies Group. He is responsible for researching the travel and leisure sector. His service with the firm dates back to 2013. Prior to joining BlackRock, he worked for UBS, where he was the head of the UK small and mid-cap sales desk and ranked the number one salesperson in the Extel Small/Mid-Cap sales ratings in 2011 and 2012. Prior to working at UBS, he joined Noble and Co in 2006 as a UK small and mid-cap salesman. He began his career at Accenture, in 2003 as a strategy consultant. Dan has a degree in Combined Studies.

Data provided by Morningstar.

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