Blackrock Throgmorton Trust PLC on Friday said net asset value fell by a third in a ‘particularly challenging period’.

The London-based investor focused on small and mid-cap companies reported that net asset value at the financial year-end November 30 was £633.4 million, falling 32% from £935.1 million a year prior.

The company said NAV per share was 626.10 pence, down 32% from 921.91p a year ago.

Chair Christopher Samuel said: ‘Our Manager’s growth style remained firmly out of favour throughout as investors switched allocations from strongly performing growth companies into energy, lower growth value and defensive stocks.’

NAV total return was negative 31%, compared to the benchmark total return of negative 18%, Blackrock said, describing the result as ‘disappointing’.

Portfolio Manager Dan Whitestone commented: ‘The primary driver of underperformance was the rotation from higher growth companies, and a broad de-rating across the UK small and mid-cap market.’

The company declared a final dividend for financial 2022 of 8.50p per share, an increase of 6.3% from 8.00p per share in 2021, with the total dividend for the year reaching 11.10p per share, up 5.7% from 10.50p a year ago.

Blackrock added that the strong trading of much of its portfolio can ‘triumph over the macroeconomic malaise currently weighing heavily on UK smaller company valuations’.

Blackrock Throgmorton shares were down 0.5% trading at 646.00 pence per share on Friday morning in London.

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