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. CFDs are used to add to the trust's exposure to companies it already holds or to short-sell shares in companies its manager expects to fall. They can therefore add value in both falling and rising markets.
The portfolio is run by Dan Whitestone, who was formerly managing the CFD element and took over from Mike Prentis as manager of the whole portfolio in early 2018. Most of the trust’s returns are derived from its conventional 'long-only' portfolio. Here the aim is to hold a portfolio largely comprised of high-quality growth stocks capable of becoming much larger over the medium term.
Whitestone 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
|Short Cfd Positions (Various)||9.65 %|
|Dechra Pharmaceuticals PLC||2.65 %|
|Workspace Group PLC||2.32 %|
|Robert Walters PLC||2.22 %|
|Ascential PLC||1.89 %|
|4imprint Group PLC||1.88 %|
|Hill & Smith Holdings PLC||1.85 %|
|Sophos Group PLC||1.84 %|
|YouGov PLC||1.79 %|
|CVS Group PLC||1.78 %|
|United Kingdom||95.84 %|
|Consumer Cyclical||20.77 %|
|Financial Services||12.32 %|
|Real Estate||8.99 %|
|Basic materials||7.93 %|
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.