26th Jul 2018 13:47
LONDON (Alliance News) - BlackRock Throgmorton Trust PLC said Thursday it has outperformed its benchmark in its first half thanks to stock success in long book investments.
The trust's net asset value return for the six months to May 31 grew 11.6%, well ahead of the 2.4% return recorded by its benchmark, the Numis Smaller Companies plus AIM (excluding investment companies) Index.
Its net asset value per share was 598.19p, a 10% increase from its net asset value per share of 542.66p recorded the previous year.
The company attributed its first half performance to its long book investment, which it called "the predominant driver of performance" while its short book held broadly flat.
IntegraFin Holdings PLC was the trust's largest positive contributor, with shares purchased earlier in the year during the financial software firm's initial public offering.
Throgmorton's other long book investments such as veterinary product manufacturer Dechra Pharmaceuticals PLC and carbonated drinks company Fevertree Drinks PLC also performed well.
Its investments in clothing retailer Superdry PLC and lighting manufacturer Luceco PLC did not do so well, however. In response, the trust has sold its holding in Luceco and decided against adding to its Superdry stake.
"We also suffered from not owning Fidessa, a UK software company we greatly admire (and should have owned), which received several bid approaches during the period," said BlackRock Investment Manager Dan Whitestone.
Throgmorton will pay a 2.50 pence per share dividend for the interim, up 25% from 2.00p the year before.
Recently, the trust's shareholders have passed a resolution removing Throgmorton's 35% AIM exposure limit and replacing its previous benchmark, which excluded AIM shares, with the Numis Smaller Companies plus AIM Index.
Its portfolio manager has also been granted the power to hold as much as 15% of BlackRock Throgmorton's gross assets in non-UK listed securities.
Shares in BlackRock Throgmorton were up 0.4% at 558.00 pence per share.
Related Shares:
Throgmorton Trust