# BlackRock Throgmorton Trust reports April NAV rise, outperforming benchmark

- Link: https://www.directorstalkinterviews.com/blackrock-throgmorton-trust-reports-april-nav-rise-outperforming-benchmark/4121198014
- Published: 2025-05-23T07:14:12+01:00
- Author: Amilia Stone

**[BlackRock Throgmorton](https://www.directorstalkinterviews.com/company/blackrock-throgmorton-trust-plc/thrg.l)
Trust plc** ([LON:THRG](https://www.directorstalkinterviews.com/company/blackrock-throgmorton-trust-plc/thrg.l))
has announced its latest portfolio update.

All information is at **30 April 2025** and unaudited.

**To learn more about the BlackRock Throgmorton Trust plc please follow this link:**
[**blackrock.com/uk/thrg**](https://www.blackrock.com/uk/solutions/investment-trusts/our-range/blackrock-throgmorton-investment-trust/trust-information?siteEntryPassthrough=true&cid=aff%3Ainvestmenttrusts2020%3Athrg%3Adirectorstalk%3Alink)

**Performance at month end is calculated on a cum income basis**

|  | **One**
**Month****%** | **Three****months****%** | **One****year****%** | **Three****years****%** | **Five****years****%** | 
| Net asset value | 2.9 | -6.4 | -4.1 | -6.9 | 29.8 | 
| Share price | 2.7 | -8.0 | -5.3 | -11.0 | 13.7 | 
| Benchmark* | 2.6 | -4.4 | 0.3 | -7.3 | 35.0 |

Sources: BlackRock and Deutsche Numis

*With effect from 15 January 2024 the Numis Smaller Companies plus AIM (excluding
Investment Companies) Index to Deutsche Numis Smaller Companies plus AIM (excluding
Investment Companies).

| **At month end** | 
| Net asset value capital only: | 603.16p | 
| Net asset value incl. income: | 609.90p | 
| Share price | 541.00p | 
| Discount to cum income NAV | 11.3% | 
| Net yield^(1): | 3.3% | 
| Total Gross assets^(2): | £476.2m | 
| Net market exposure as a % of net asset value^(3): | 101.8% | 
| Ordinary shares in issue^(4): | 78,071,864 | 
| 2024 ongoing charges (excluding performance fees)^(5,6): | 0.56% | 
| 2024 ongoing charges ratio (including performance
fees)^(5,6,7): | 0.82% |

1. Calculated using the Final Dividend declared on 20 February 2025 payable on 
11 April 2025, together with the Interim Dividend declared on 24 July 2024 paid 
on 21 August 2024.

2. Includes current year revenue and excludes gross exposure through contracts for
difference.

3. Long exposure less short exposure as a percentage of net asset value.

4. Excluding 25,138,000 shares held in treasury.

5. The Company’s ongoing charges are calculated as a percentage of average daily
net assets and using the management fee and all other operating expenses, excluding
performance fees, finance costs, direct transaction charges, VAT recovered, taxation
and certain other non-recurring items for the year ended 30 November 2024.

6. With effect from 1 August 2017 the base management fee was reduced from 0.70%
to 0.35% of gross assets per annum. The Company’s ongoing charges are calculated
as a percentage of average daily net assets and using the management fee and all
other operating expenses, including performance fees, but excluding finance costs,
direct transaction charges, VAT recovered, taxation and certain other non-recurring
items for the year ended 30 November 2023.

7. Effective 1st December 2017 the annual performance fee is calculated using performance
data on an annualised rolling two-year basis (previously, one year) and the maximum
annual performance fee payable is effectively reduced to 0.90% of two-year rolling
average month end gross assets (from 1% of average annual gross assets over one 
year). Additionally, the Company now accrues this fee at a rate of 15% of outperformance(
previously 10%). The maximum annual total management fees (comprising the base management
fee of 0.35% and a potential performance fee of 0.90%) are therefore 1.25% of average
month end gross assets on a two-year rolling basis (from 1.70% of average annual
gross assets).

| **Sector Weightings** | **% of Total Assets** | 
|   |   | 
| Industrials | 31.5 | 
| Financials | 24.1 | 
| Consumer Discretionary | 9.6 | 
| Basic Materials | 7.1 | 
| Technology | 6.5 | 
| Real Estate | 3.8 | 
| Consumer Staples | 3.7 | 
| Health Care | 2.3 | 
| Communication Services | 1.5 | 
| Telecommunications | 0.8 | 
| Energy | 0.6 | 
|   |   | 
| Net Current Assets | 8.5 | 
|   | —– | 
| **Total** | 100.0 | 
|   | ===== | 
|  |   | 
| **Country Weightings** | **% of Total Assets** | 
|  |  | 
| United Kingdom | 94.9 | 
| United States | 3.8 | 
| Australia | 0.8 | 
| Canada | 0.5 | 
|   |   | 
|   | —– | 
| **Total** | 100.0 | 
|   | ===== |

| **Market Exposure (Quarterly)** | 
|  | 
|  | **31.05.24**
**%** | **31.08.24****%** | **30.11.24****%** | **28.02.25****%** | 
| Long | 114.9 | 111.7 | 111.9 | 117.8 | 
| Short | 2.3 | 2.7 | 3.4 | 4.9 | 
| Gross exposure | 117.2 | 114.4 | 115.3 | 122.7 | 
| Net exposure | 112.6 | 109.0 | 108.5 | 112.9 |

| **Ten Largest Investments** | 
|  | 
| **Company** | **% of Total Gross Assets** | 
|  |   | 
| Tatton Asset Management | 3.1 | 
| GPE | 3.0 | 
| Bellway | 3.0 | 
| Rotork | 3.0 | 
| Breedon | 2.8 | 
| XPS Pensions Group | 2.8 | 
| IntegraFin | 2.8 | 
| Grafton Group | 2.5 | 
| Morgan Sindall | 2.5 | 
| Alpha Group International | 2.4 |

**Commenting on the markets, Dan Whitestone, representing the Investment Manager
noted:**

The Company returned 2.9% in April, outperforming its benchmark, the Deutsche Numis
Smaller Companies +AIM (excluding Investment Companies) Index, which returned 2.6%.
^(1)

April was dominated by global trade policy with President Trump’s ‘Liberation Day’
announcements of reciprocal tariffs sparking broad market volatility across asset
classes. The US Dollar fell, equities fell, and bond yields rose as markets attempted
to grapple with the implications for the global economy. The bond market’s violent
response prompted a 90 day pause from the US administration and market relief. The
US also cited strong progress in negotiations with several countries as the month
progressed raising hopes that the impact of tariffs would be lower than feared. 
In the US, the second half of the month saw a relatively strong earnings season,
which also helped sentiment.  The result was that stock markets fell quickly then
sharply rebounded.

It is too early to tell what the exact impact of the tariff proposals will be (or
even what the final tariff rates will be post negotiations). Economic data in the
month was contradictory in the US, with a large divergence between “soft” survey
data worsening and “hard” data remaining robust. Companies who reported largely 
cited little change to consumer behaviour or pricing so far, but this probably does
not yet reflect the post tariff pricing or demand impacts. In the UK, macro data
remains mixed but corporate earnings remain robust, particularly in domestically
exposed sectors. Bucking the trend of recent months, UK small and mid-caps fared
better than large caps, with the [FTSE 250](https://www.directorstalkinterviews.com/news/ftse-250)
Index up +2.7%, while the [FTSE 100](https://www.directorstalkinterviews.com/news/ftse-100)
Index fell, reflecting a combination of investor positioning, currency moves, and
of course that on average UK smaller companies have lower direct exposure to US 
tariffs.

Alongside broad market volatility, there was plenty of stock and industry moves 
driving performance of the portfolio during April. The clearest identifiable theme
was the strength of UK domestics, in particular housebuilding (**Bellway**) and 
related supply chain (**Grafton**) as well as property (**Great Portland**). Meanwhile
M&A (mergers and acquisitions) activity was also a feature, albeit this made both
positive and negative contributions for the portfolio, and reminds us of the difficulty
shorting in the current environment when the whole spectrum of “quality” seems up
for grabs from strategic buyers!

UK housebuilder **Bellway** was the top contributor. Bellway didn’t report in the
period, but we heard from a number of peers in the sector, which all gave a familiar
and reassuring message with regard current sales rates and build costs. From several
discussions we have had with Management teams across the sector it is increasingly
clear that Labour’s action on supply side reforms is already making a demonstrable
positive impact on planning permission. The sector more broadly has benefitted from
falling 2-year and 5-year swap rates and whilst these metrics are unlikely to be
closely monitored by the average consumer (ditto the 10-year) there are signs of
more competition in the mortgage market, which the average consumer is much more
attune with. UK housebuilders remain a large thematic position in the portfolio 
and our conviction grows as funding costs fall, sales rates remain resilient, and
planning approvals increase. Better still, despite an improving backdrop, this is
an industry trading towards historic trough multiples of book value despite extremely
depressed industry volumes. We expect a rapid improvement in ROCE (return on capital
employed) as volumes recover and a significant tightening in price to book ratios
as NAVs increase. **Jet2** rallied following a £250 million share buyback announcement
alongside a solid trading update, citing encouraging demand for summer 2025. Growth
has been partly driven by the launch of two new UK operating bases at Bournemouth
and Luton airports. The flurry of M&A, which has been such a dominant feature in
our universe over the last couple of years, in most cases having been a headwind
to performance, was beneficial for our position in food delivery service business,**
Deliveroo**, which agreed to a £2.9 billion takeover from US listed peer, DoorDash.

April proved to be a difficult month for shorting, with two of the top three detractors
coming from short positions. The largest detractor was **a short in a facilities
management business** which reported a better than expected Q4 trading update with
upgrades to full year guidance while announcing a new share buyback program. The
second biggest detractor was **a short position in a UK listed semiconductor business**.
The company has seen multiple downgrades, and we continue to question its financial
disclosure (too much emphasis on bookings growth whilst most other metrics seem 
to be revised down, such as revenues, profits and cashflows). However, the shares
rose in the period on the news of a potential takeover from US chipmaker, Qualcomm.
We have retained a short on the hope that no firm bid emerges and also the fact 
that the shares have moved up on the news. The third largest detractor was identity
verification specialist, **GB Group**, which fell after the company warned that 
near term growth could be impacted by ongoing global tariff uncertainty.

April was another volatile month and one in which we felt the portfolio performed
credibly given the environment. Furthermore, and a change from what has felt like
the ongoing narrative for all too long now, it was pleasing to see small and mid-
caps outperforming large caps. We don’t know the outcome of tariff negotiations 
or what the end state for global trade will be. However, the companies we have spoken
to have all spoken of the increased uncertainty slowing decision making, and therefore
ultimately lower activity levels. Some negative GDP impact globally and especially
in the US and China should therefore be expected. The range of outcomes for both
the extent and duration of those impacts remains very large, perhaps the most uncertain
economic environment since the start of the Covid pandemic. Inevitably, with such
uncertainty comes opportunity for companies to differentiate themselves (positively
or negatively) and the opportunity for fundamental analysis to identify those winners
and losers.

Despite all the tariff noise, we think the Company remains well diversified by stock,
theme, and industry. We still think the opportunity set is as rich and compelling
as we have ever seen and look forward to updating you in due course.

As a result of the ongoing difficult outlook, we reduced the gross and net at the
beginning of the month to circa 111% and 105% respectively.

We thank shareholders for your patience and ongoing support.

**To learn more about the BlackRock Throgmorton Trust plc please follow this link:**
[**blackrock.com/uk/thrg**](https://www.blackrock.com/uk/solutions/investment-trusts/our-range/blackrock-throgmorton-investment-trust/trust-information?siteEntryPassthrough=true&cid=aff%3Ainvestmenttrusts2020%3Athrg%3Adirectorstalk%3Alink)

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