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
Name
BlackRock Throgmorton Trust plc
Type
Closed Ended Investment Company
ISIN
GB0008910555
Sector
UK Smaller Companies
Launched
01/12/1962
OCF
0.87 %
Risk Rating
4
3 Year Sharpe
1.22
3 Year Alpha
9.78
Yield
1.6 %
Benchmark
Numis SC Plus AIM Ex Invt Com TR GBP
Fund Size
£ 364.65 million
NAV
548
Gearing
133
Discount Premium
-9
The Company’s objective is 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.
Holding %
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 %
Region %
United Kingdom 95.84 %
Sector %
Consumer Cyclical 20.77 %
Industrials 20.37 %
Technology 16.01 %
Financial Services 12.32 %
Real Estate 8.99 %
Basic materials 7.93 %
Healthcare 6.70 %

Data provided by Morningstar.

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