REG-BlackRock Throg Tst: Portfolio Update <Origin Href="QuoteRef">THRG.L</Origin>

Blackrock Throgmorton TrustAnnouncement

21/10/2016 18:35

BLACKROCK THROGMORTON TRUST PLC All information is at 30 September 2016 and unaudited .                           
                                                                                                                   
 Performance at month end is calculated on a cum income basis                                                      
                                                                                                                   
                                                      One           Three     One                  Three     Five  
                                                    Month          months    year                  years    years  
                                                         %               %       %                      %        % 
 Net asset value (undiluted)#                          3.5            16.9    10.4                   39.6    125.8 
 Net asset value (fully diluted)                       3.5            16.9    10.4                   39.6    119.7 
 Share price                                           1.9            13.6     4.0                   25.0    120.7 
 Benchmark*                                            2.2            12.5     8.6                   24.5     86.6 
 Sources: BlackRock and Datastream (#)Prior to dilution arising on conversion of subscription shares. *With effect from 1 December 2013 the Numis Smaller Companies excluding AIM (excluding investment companies) Index replaced the Numis Smaller Companies plus AIM (excluding investment companies) Index as the Company’s benchmark. The three and five year period indices have been blended to reflect this. 
 At month end                                                                                                      
 Net asset value capital only:                                                                             405.35p 
 Net asset value incl. income:                                                                             410.72p 
 Share price                                                                                               334.38p 
 Discount to cum income NAV                                                                                  18.6% 
 Net yield                                                                                                   2.0%* 
 Total Gross assets                                                                                      £300.4m** 
 Net market exposure as a % of net asset value^                                                             109.4% 
 Ordinary shares in issue:                                                                           73,130,326*** 
 2015 ongoing charges (excluding performance fees):                                                       1.1%**** 
 2015 ongoing charges (including performance fees):                                                           2.3% 
 * Calculated using current year interim dividend paid on 19 August 2016 and prior year final dividend. ** Includes current year revenue and excludes the gross exposure through contracts for difference. *** Excluding 7,400,000 shares held in treasury. **** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 November 2015. ^Long positions less short positions as a percentage of net asset value. 
 Sector Weightings                                                                               % of Total Assets 
                                                                                                                   
 Industrials                                                                                                  32.1 
 Consumer Services                                                                                            22.0 
 Financials                                                                                                   14.0 
 Consumer Goods                                                                                                8.6 
 Technology                                                                                                    7.2 
 Basic Materials                                                                                               7.0 
 Health Care                                                                                                   6.9 
 Oil & Gas                                                                                                     2.0 
 Net current assets                                                                                            0.2 
                                                                                                            ------ 
 Total                                                                                                       100.0 
                                                                                                              ==== 
 Market Exposure (Quarterly)                                                                                       
                                                                                                                   
                    30.11.15                             29.02.16                      31.05.16 %       31.08.16 % 
                            %                                    %                                                 
 Long                   115.2                                118.2                          114.4            114.3 
 Short                    9.2                                 11.2                            8.3              8.3 
 Gross exposure         124.4                                129.4                          122.7            122.6 
 Net exposure           106.0                                107.0                          106.1            106.0 

   

 Ten Largest Investments                              
 Company                      % of Total Gross Assets 
                                                      
 4imprint Group                                   3.5 
 CVS Group                                        2.9 
 Dechra Pharmaceuticals                           2.7 
 JD Sports                                        2.6 
 Hill & Smith                                     2.0 
 Avon Rubber                                      1.9 
 Fevertree Drinks                                 1.7 
 Workspace Group                                  1.7 
 Cineworld Group                                  1.7 
 Advanced Medical Solutions                       1.7 

Commenting on the markets, Mike Prentis and Dan Whitestone, representing the
Investment Manager noted:

During September the Company’s NAV per share rose by 3.5% on a cum income
basis whilst our benchmark index rose by 2.2%; the FTSE 100 Index rose by
1.8%.

The long only portfolio increased in value by 3.0%, outperforming the
benchmark by 0.8%. The CFD portfolio added 0.74% to performance. Long CFDs
added 0.7% and the short added 0.03% to NAV. These figures are before costs.

Outperformance in the long only portfolio was largely driven by stock
selection with our large holdings in Avon Rubber, 4imprint and JD Sports
contributing well. Avon Rubber’s September trading update confirmed it was
trading in line with market expectations helped by demand from the US. Avon is
a major exporter to the US, China and other countries. 4imprint’s recent
half year results indicated a 19% increase in earnings per share; almost all
of its revenue is generated in the USA. JD Sports’ interims showed revenues
up 20% and earnings per share up 69%; net cash was £231 million. JD Sports
continues to benefit from its strong association with the major sports brands
and is gradually expanding its footprint throughout Europe.

There were no holdings which were significant detractors from relative
performance from a stock specific point of view during the month.

Sector allocation detracted from relative contribution in the long only
portfolio during the month. Whilst we benefitted from our overweight position
in housing related stocks, our underweight position in mining stocks continued
to detract from relative performance.

Activity during the month was fairly modest within the long only portfolio,
although we continued to selectively reduce UK exposure in favour of more US
and emerging market exposed companies.

Turning to the CFD portfolio, September was a positive month, with both the
long and short book generating a positive return.

When looking at the top 5 contributors, 4 of them were long positions
(MicroFocus, JD Sports, Melrose, and RPC Group) and 1 a short position (UK
government outsourcer). MicroFocus was the biggest performer, adding 0.15% to
performance as the shares rose in response to the news of a transformational
acquisition. Unfortunately, we have had to sell MicroFocus from the fund as it
is now a FTSE100 company. The good news is the other top contributors
mentioned are core holdings within the CFD portfolio, are trading well, and we
hope will continue to do so for some time to come.  The 3rd biggest
contributor was from a short position in a UK government outsourcing business,
where the shares collapsed in response to a profit warning. A reminder of the
potential for strong returns for both the long and short book in the universe
of small and medium sized companies. In terms of the detractors, not much to
draw out, a mixture of short and long positions, but the losses were small in
each. Overall, decent month, the CFD portfolio is in good shape, and we think
the portfolio is well positioned for the current environment.

21 October 2016

ENDS

Latest information is available by typing www.blackrock.co.uk/thrg 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.



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