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.
- Last week, BlackRock Throgmorton (THRG) released its final results for the financial year (FY) 2020. Over the 12 months ending 30 November 2020, the trust delivered NAV total returns of 9.1%, in comparison to a 3.8% total return from the benchmark Numis Smaller Companies plus AIM excluding Investment Companies. Over the same period, THRG’s share price rose 8.2%, with the premium marginally narrowing.
- Revenue returns per share for the year amounted to 6.57 pence per share, compared with 8.56 pence per share for the previous year. This represents a fall of 23.2%, predominantly as a result of the COVID-19 pandemic which has meant that many companies have suspended their dividend payments due to the uncertain outlook. Despite this, the board were able to utilise their substantial revenue reserves to maintain the total dividend of 10.20 pence per share.
- Looking forward, the manager, Dan Whitestone, believes that UK small and mid-sized companies will continue to provide many exciting investment opportunities. Dan stated, “by focusing on stock and industry analysis and backing the advantaged and the differentiated, we believe the company remains well set to capitalise on the opportunities ahead”. We think the extreme challenges of 2020 have demonstrated his ability to capitalise on such prospects, and proves his thesis that stock and industry specifics can triumph over macroeconomic factors. Alongside this, Dan will be looking to benefit from a period of ‘corporate Darwinism’, where market leaders expand their market shares and the weaker companies fall by the wayside.
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