Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by BlackRock Throgmorton Trust. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
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Overview

BlackRock Throgmorton Trust (THRG) is managed by Dan Whitestone, who runs a UK-focused portfolio of high-quality growth companies. THRG can also use contracts for difference (CFDs) to both gear up and short individual companies. This means the trust can vary its exposure to the market quickly and flexibly, giving it greater capacity to benefit from volatility in the markets and the potential to generate additional alpha.

The trust has an exceptional long-term track record of outperformance relative to the benchmark and peer group alike. Particularly noteworthy is the manager’s ability to outperform during both rising and falling markets, still at low levels of volatility.

The trust’s discount has narrowed significantly since the referendum in 2016, after which it reached a 22% discount at one point. This year has seen the discount continue to narrow, and seen the trust now start to trade at a premium of 1.16%. This has allowed the board to begin to issue shares to investors, providing significant liquidity for investors entering the trust at scale.

Kepler View

THRG has long been one of the most reliable vehicles for smaller companies in the UK in terms of performance. The trust has outperformed the benchmark in every one of the past nine years and offered the highest annualised returns of any trust in the sector. This has been achieved at relatively low levels of volatility and over three years the trust has the highest Sharpe ratio in the sector (1.97) and the third highest over five years (1.57).

This is an attractive trait for the trust to have in the current UK environment, which is full of uncertainty and volatility. The flexibility to alter its overall market exposure should also be an attractive feature, as it has helped Dan generate alpha in both falling and rising markets in the past.

Given the trust’s strong track record and defensive characteristics, in recent times we have seen the trust reach a premium and allow the board to issue shares. With 7,290,000 shares in treasury (which the trust has the authority to issue), there is significant liquidity for investors, which will be attractive for those who are looking to make sizeable purchases – something that had previously not been possible.

bull bear
Exceptional track record of outperforming peers and the benchmark Uncertainty continues to cloud the UK, which could impact small caps in particular
Can benefit from both falling or rising markets through the short and long book
Balanced fee structure featuring a low base management fee of 35 bps and a maximum cap on total management fees (including any performance fee) of 1.25% of average gross assets over two years
Trading at a premium, which will mean that the board will be able to easily issue shares to investors who are looking for the ability to buy in size


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2022 Kepler Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for growth... Find out more

Fund History

16 Feb 2022 Perfectly formed
Our research suggests that investment trusts really are a better way to gain exposure to smaller companies…
09 Feb 2022 Results analysis: BlackRock Throgmorton
THRG continues to build on its impressive track record by investing in disruptive and innovative UK smaller companies…
30 Dec 2021 Great expectations
As the last of the mince pies wilts in the fridge, topped with a generous helping of stilton, the Kepler Trust Intelligence team stick a finger in the air and point toward their top picks for the year ahead…
08 Dec 2021 Fund Analysis
A dynamic and growth orientated approach to UK smaller companies…
11 Aug 2021 In at the deep end
Does seeking out wider-than-usual discounts help investors systematically outperform in the UK trust space?
28 Jul 2021 Fund Analysis
THRG’s high net exposure reflects the manager’s bullishness about the opportunity set in UK small caps…
08 Jul 2021 London Calling
UK equities represent a ‘once in a generation’ opportunity according to the managers who joined us at our event last week…
07 Jul 2021 Slides and Audio: BlackRock Throgmorton
Download the presentation and listen to the audio from our 'Cool Britannia' Summer conference on 01 July...
07 Jul 2021 Slides and Audio: Roundtable - Small is beautiful
Download the presentation and listen to the audio from our second roundtable discussion with Dan Whitestone, Georgina Brittain and Judith MacKenzie...
23 Jun 2021 Time to back Britain?
After a challenging period for the United Kingdom, we wonder if it could be the most exciting market on a five-year view…
09 Jun 2021 Cool Britannia?
Join the team at Kepler Trust Intelligence and six leading UK fund managers as we examine the prospects for UK equities with COVID in retreat and Brexit uncertainty finally behind us…
18 Feb 2021 Results analysis: BlackRock Throgmorton
After another set of strong results, we look at why, in our opinion, THRG continues to be one of the standout trusts in the UK…
10 Feb 2021 Eye of the Pfizer
Mining shares have rallied in recent months. With further potential, what impact could this have on the relative returns of active UK Small cap strategies...
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
23 Dec 2020 Fund Analysis
BlackRock Throgmorton (THRG) seeks to use both long and short positions to generate alpha...
10 Dec 2020 Lots of uncertainty, but an abundance of investment opportunities
Dan Whitestone rationalises the financial performance of individual companies during the pandemic and how this has affected BlackRock Throgmorton Trust plc...
25 Nov 2020 Britannia Redux
UK equities have been despised for almost five years and could offer extreme rebound potential…
17 Jun 2020 Fund Analysis
One of the most reliable trusts in the UK smaller-companies sector, THRG uses both a long and a short book to generate alpha, regardless of the wider market conditions…
20 Nov 2019 Fund Analysis
One of the most reliable trusts in the UK, THRG has shown the ability to perform strongly in both rising and falling markets at low levels of volatility…
16 Oct 2019 Thinking big on small companies
10 Apr 2019 Because they're worth it
With the rise of the passives putting more pressure on fees than ever before, we argue that performance fees could be the key to encouraging truly active investment trust managers...
03 Apr 2019 Fund Analysis
Dan Whitestone offers a growth-orientated portfolio of UK small and mid caps, using both long and short positions...
16 Oct 2018 The Investment Trust Advantage
Our recent conference for discretionary fund managers saw some of the UK's leading fund managers discussing the outlook for the world's major regions and asset classes...
25 Oct 2017 Fund Analysis
A UK small-cap trust that can profit in both rising and falling markets...
25 Oct 2017 Patience is a virtue…
We analyse the outperformance of UK small-caps and why it is so important to take a long-term view...
26 Apr 2017 Fund Analysis
26 Apr 2017 Size matters
Our analysis proves that investment trusts really are the best way to access smaller companies, and exposes liquidity concerns for their open ended counterparts...
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