The investment landscape is vast, with numerous opportunities awaiting discerning investors. Among these, the BlackRock Throgmorton Trust (LON:THRG) stands out, offering a unique perspective on the UK’s mid and small-cap market. Managed by the adept Dan Whitestone, this trust has carved a niche for itself, focusing on companies that promise long-term growth and those that disrupt industries with innovation.
A Unique Investment Strategy
Dan Whitestone’s approach to investment is both strategic and insightful. He believes that the UK mid and small-cap space is teeming with companies that produce a wide range of returns. This diversity offers active managers like him exceptional opportunities to outperform. Whitestone’s strategy revolves around
identifying nimble companies with unique attributes that can deliver sustained growth over the long term.
Interestingly, while the primary focus is on the UK market, Whitestone also has the flexibility to invest a small proportion (up to 15%) of the portfolio in companies not listed in the UK. This approach ensures that the trust can tap into global opportunities and not be restricted by geographical boundaries.
Performance Insights
According to the analysis by Kepler Trust Intelligence, THRG has consistently outperformed both its benchmark and its peer group over the past five years. Despite facing challenges in 2022, where its NAV declined by over 30% due to macro factors like rising interest rates and inflation, the trust’s long-term performance remains commendable. It has managed to stay ahead of its benchmark, the Numis Smaller
Companies plus AIM ex Investment Companies Index, and its peer group.
Dividend Considerations
While THRG primarily aims for capital return, it has a commendable record of progressively increasing its dividend. The trust has consistently increased dividends, with 2020 being the only recent exception. This was a year when many companies, facing uncertainties, chose to suspend dividends. However, THRG used its revenue reserves to bridge the gap, ensuring that the dividend remained consistent for its
investors.
Management Excellence
Dan Whitestone’s leadership has been pivotal to THRG’s success. Having joined the team first as a co-manager in 2015, he took over as the lead manager in 2018. Under his guidance, the trust has navigated the complex terrains of the investment world, ensuring consistent growth and returns for its investors.
To learn more about the BlackRock Throgmorton Trust plc please follow this link: blackrock.com/uk/thrg
Why Consider Investing in THRG?
- Diverse Portfolio: THRG offers exposure to a range of companies, from innovative industry disruptors to those with solid long-term growth prospects.
- Experienced Management: Led by Dan Whitestone, the trust benefits from a management team with a proven track record.
- Consistent Dividend: Despite its primary focus on capital return, THRG has a history of delivering consistent dividends to its investors.
- Flexibility: The trust’s ability to invest outside the UK ensures that it can tap into global opportunities, offering a diversified investment experience.
However, like all investments, THRG comes with its set of challenges. Potential investors should be aware of the inherent risks associated with investing in mid and small-cap companies, market volatilities, and the macroeconomic factors that can influence performance.
For retail investors looking to diversify their portfolios and tap into the potential of the UK’s mid and small-cap market, BlackRock Throgmorton Trust offers a compelling proposition. Backed by a robust investment strategy, experienced management, and a consistent performance record, THRG stands as a testament to the opportunities that lie in the often-overlooked segments of the market.
To learn more about the BlackRock Throgmorton Trust plc please follow this link: blackrock.com/uk/thrg
