The information contained in this release was correct as at
30 November 2020.
Information on the Company’s up to date net asset values can be
found on the London Stock Exchange Website at
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
BLACKROCK SMALLER COMPANIES TRUST PLC
(LEI:549300MS535KC2WH4082)
All information is at 30 November
2020 and unaudited.
Performance at month end is calculated on a capital only
basis
|
One
month
% |
Three
months
% |
One
year
% |
Three
years
% |
Five
years
% |
Net asset value* |
11.3 |
9.5 |
1.3 |
8.3 |
51.0 |
Share price* |
13.1 |
20.7 |
-5.4 |
15.8 |
54.3 |
Numis ex Inv Companies
+ AIM Index |
11.0 |
10.5 |
2.2 |
-4.5 |
20.6 |
*performance calculations based on a capital only NAV with debt
at par, without income reinvested. Share price performance
calculations exclude income reinvestment.
Sources: BlackRock and Datastream
At month end
Net asset value Capital only (debt
at par value): |
1,568.18p |
Net asset value Capital only (debt
at fair value): |
1,550.57p |
Net asset value incl. Income (debt
at par value)1: |
1,569.53p |
Net asset value incl. Income (debt
at fair value)1: |
1,551.92p |
Share price: |
1,484.00p |
Discount to Cum Income NAV (debt at
par value): |
5.5% |
Discount to Cum Income NAV (debt at
fair value): |
4.4% |
Net yield2: |
2.2% |
Gross assets3: |
£836.0m |
Gearing range as a % of net
assets: |
0-15% |
Net gearing including income (debt
at par): |
5.4% |
Ongoing charges ratio
(actual)4: |
0.7% |
Ordinary shares in
issue5: |
48,829,792 |
|
|
-
Includes net revenue of 1.35p
-
Yield calculations are based on dividends announced in the last
12 months as at the date of release of this announcement, and
comprise the second interim dividend of 19.7
pence per share (announced on 3 June
2020, ex-dividend on 11 June
2020) and the first interim dividend of 12.8 pence per share (announced on 5 November 2020, ex-dividend on 12 November 2020, pay date 2 December 2020).
-
Includes current year revenue.
-
As reported in the Annual Financial Report for the year ended
29 February 2020 the Ongoing Charges
Ratio (OCR) was 0.7%. The OCR is calculated as a percentage of net
assets and using operating expenses, excluding performance fees,
finance costs and taxation.
-
Excludes 1,163,731 ordinary shares held in treasury.
Sector Weightings |
% of
portfolio |
Industrials |
26.9 |
Financials |
18.9 |
Consumer Services |
15.6 |
Consumer Goods |
12.8 |
Technology |
10.9 |
Health Care |
5.9 |
Basic Materials |
5.6 |
Telecommunications |
1.2 |
Oil & Gas |
1.1 |
Materials |
1.1 |
|
----- |
Total |
100.0 |
|
===== |
|
Country Weightings |
% of
portfolio |
United Kingdom |
97.7 |
United States |
1.2 |
Singapore |
0.5 |
France |
0.3 |
Guernsey |
0.3 |
|
----- |
Total |
100.0 |
|
===== |
|
|
|
Ten Largest Equity
Investments
Company |
% of
portfolio |
Watches of Switzerland |
2.3 |
YouGov |
2.2 |
Grafton Group |
1.9 |
IG Design Group |
1.9 |
Pets at Home |
1.9 |
Team 17 |
1.8 |
CVS Group |
1.8 |
Breedon |
1.8 |
Ergomed |
1.8 |
Impax Asset Management |
1.7 |
|
Commenting on the markets, Roland
Arnold, representing the Investment Manager noted:
During November the Company’s NAV per share rose by
11.3%1 to 1,568.18p, outperforming our benchmark index
which returned 11.0%1; for comparison the FTSE 100 Index
rose by 12.4%1 (all calculations on a capital only
basis).
Equity markets rallied during November as positive COVID-19
vaccine results showing better than expected efficacy from three
candidates (Pfizer/BioNTech, Moderna and Oxford/AstraZeneca),
sparked one of the sharpest rotations away from growth and into
value shares on record. The rotation saw many of the biggest losers
this year making the greatest gains during November, resulting in
UK and European indices outperforming other developed equity
markets. After several uncertain days, markets also received a
boost from the outcome of the US election, which saw Joe Biden’s
Democrats win the White House but the Republicans hold the senate,
arguably the most market friendly result.
Equity market moves during November were heavily driven by the
rotation from growth stocks into more value orientated areas of the
market, a rotation which also drove much of the Company’s NAV
performance for the month. However, despite this headwind to our
growth bias style, actions taken earlier in the year to diversify
the portfolio, and some positive updates from companies that
continue to successfully navigate this challenging year, resulted
in outperformance. IG Design Group reported sales ahead of
expectations as people have not held back on Christmas preparations
(decorations, gift packaging and crackers), despite the
unprecedented challenges of 2020. Meanwhile the company has seen
strong demand for its craft kits as families have embraced many ‘at
home activities’ during the year. Our holding in Central Asia metals rallied with the mining
sector and strengthening copper price. The shares also benefited
from the announcement that the company would resume payment of its
interim dividend, which was deferred earlier this year). Shares in
Pebble Group rose in response to a positive trading update, which
confirmed that the group is on track to meet full year expectations
for the year ending December 2020.
Its Facilisgroup business has continued to perform well during the
pandemic, while its Brand Addition business has continued to
improve since flagging weakness in September.
Many of the largest detractors during November were simply the
strongest performers of recent months giving back some of their
gains as investors sold winners to buy into the value rally. This
impacted our holdings in YouGov and Games Workshop. Importantly,
underlying trading in both businesses remains strong and we do not
see any fundamental change to the investment case for either simply
because of the announcement of successful COVID-19 vaccines. Both
companies remain very attractive and we are excited by the
opportunities that we see ahead for these businesses, and we have
used share price volatility to add to our holdings.
The ongoing COVID-19 pandemic along with the US Presidential
Election and Brexit trade negotiations have been key sources of
volatility in recent months, and resolution on these three issues
has, and will remain key for equity markets to return to some level
of rational behaviour. At the time of writing, a number of
countries have begun to administer the vaccine to the most
vulnerable individuals, and therefore, despite further mandated
restrictions, stock markets are now focused on how quickly the
world can return to something approximating normality. Whilst the
news of workable vaccines is clearly positive for markets and
global economies, we remain mindful that any programme of mass
vaccination will take many months to implement, and therefore we
may see further volatility from third/fourth waves of the virus and
lockdowns.
Politics never leaves us, and whilst the US election result has
provided the hope of a more balanced global political environment,
attention is now shifting to Brexit. From our perspective any form
of clarity is positive for UK equities over the medium to
long-term. Given how under-owned the UK market is and the discount
it trades at compared with other global markets, we see any
conclusion as having the potential to drive flows into UK equities
regardless of whether we have a negotiated deal or we leave without
one. The negotiations have in one form or another been going on for
years, giving companies ample time to prepare their businesses for
a no deal Brexit. We therefore see the risk of unexpected business
disruption as relatively muted at an individual company level.
Whilst there will undoubtedly be some sectors that are more exposed
than others, we remain firmly of the belief that strong companies
will prevail, regardless of the result of the negotiations. We
continue to believe that smaller companies in particular will be
able to react and adapt fastest to whatever form Brexit takes.
The Company’s investment strategy is focussed on quality growth
investments in smaller companies, a style that has demonstrably
worked for the long-term, and historically periods of heightened
volatility, such as this, have proven to be excellent investment
opportunities.
1Source: BlackRock as at 30
November 2020
23 December 2020
ENDS
Latest information is available by typing
www.blackrock.co.uk/brsc on the internet, "BLRKINDEX" on Reuters,
"BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).
Neither the contents of the Manager’s website nor the contents of
any website accessible from hyperlinks on the Manager’s website (or
any other website) is incorporated into, or forms part of, this
announcement.