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

Blackrock Throgmorton TrustAnnouncement

19/06/2017 17:05

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)
 

All information is at 31 May 2017 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       4.0      15.2    35.1     63.4    162.8 
 Share price           7.6      14.3    34.0     58.4    172.6 
 Benchmark*            2.7       9.6    23.9     34.6    106.4 

Sources: BlackRock and Datastream

*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 five year period indices have been blended to reflect this.

 At month end                                                          
 Net asset value capital only:                                 516.29p 
 Net asset value incl. income:                                 521.72p 
 Share price                                                   436.00p 
 Discount to cum income NAV                                      16.4% 
 Net yield (1):                                                   1.7% 
 Total Gross assets (2):                                       £383.3m 
 Net market exposure as a % of net asset value (5):             111.2% 
 Ordinary shares in issue (3):                              73,130,326 
 2016 ongoing charges (excluding performance fees (4):            1.1% 
 2016 ongoing charges ratio (including performance fees):         1.3% 

1. Calculated using 2016 interim and final dividends paid on 19 August 2016
and 29 March 2017.

2. Includes current year revenue and excludes gross exposure through contracts
for difference.

3. Excluding 7,400,000 shares held in treasury.

4. Calculated as a percentage of average net assets and using expenses,
excluding performance fees and interest costs for the year ended 30 November
2016.

5. Long positions less short positions as a percentage of net asset value.

 Sector Weightings                                 % of Total Assets 
                                                                     
 Industrials                                                    29.7 
 Consumer Services                                              22.2 
 Financials                                                     15.2 
 Consumer Goods                                                 12.9 
 Basic Materials                                                 7.5 
 Health Care                                                     5.1 
 Technology                                                      3.9 
 Oil & Gas                                                       2.5 
 Net current assets                                              1.0 
                                                               ----- 
 Total                                                         100.0 
                                                               ===== 
 Market Exposure (Quarterly)                                         
                                                                     
                  31.08.16  %        30.11.16   28.02.17   31.05.17  
                                             %          %          % 
 Long                   114.3            116.9      121.4      117.3 
 Short                    8.3              8.5        6.7        6.1 
 Gross exposure         122.6            125.4      128.1      123.4 
 Net exposure           106.0            108.4      114.7      111.2 

   

 Ten Largest Investments                          
                                                  
 Company                  % of Total Gross Assets 
                                                  
 CVS Group                                    3.4 
 Dechra Pharmaceuticals                       2.8 
 4imprint Group                               2.4 
 JD Sports Fashion                            2.4 
 Cineworld Group                              2.3 
 Ascential                                    1.9 
 Hill & Smith                                 1.9 
 Big Yellow                                   1.9 
 Ibstock                                      1.9 
 Bellway                                      1.9 

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

During May the Company’s NAV per share rose by 4.0% to 521.7p on a cum
income basis whilst our benchmark index (Numis Smaller Companies excluding AIM
(excluding Investment Companies) Index) rose by 2.7%; the FTSE 100 Index rose
by 4.9%.

Outperformance during the month was predominantly driven by good stock
selection, however sector allocation also contributed positively.

Colour cosmetics company Warpaint reported a 24% increase in 2016 earnings and
announced a maiden final dividend of 1.5p. The shares have performed well
since IPO and the outlook for the company remains strong. Specialty tape
manufacturer Scapa’s full year results confirmed pre-tax profits had more
than doubled while management also commented on their confidence for further
growth in both the healthcare and industrial divisions. Morgan Sindall saw
further broker upgrades after the AGM statement showed continued strong
trading across the group with better than expected Fit Out activity and a
stronger cash profile expected for the full year. Elsewhere our holdings in
Dechra Pharmaceuticals, CVS Group and Advanced Medical Solutions were all
positive contributors, benefitting from the outperformance of more defensive
areas of the market during the month.

There were no major individual stock detractors from relative performance
during the month. The largest detractors included our holdings in mining
companies as the sector underperformed on the back of commodity price
weakness.

Activity during May included a new purchase in Gear4Music after good meeting
with management, and adding to our holding in Countryside Properties.

Performance within the long/short portfolio added 0.5% during the month, with
long positions contributing positively, whilst shorts were a modest detractor.
Long contributors included common positions also held in the long only
portfolio, Scapa, Dechra Pharmaceuticals and CVS Group, and also strong
contributions from holdings unique to the long/short portfolio such as Just
Eat, Sophos and ASOS. The short book in aggregate detracted, impacted by the
rising market which saw several our positions grind higher, notably within our
domestic shorts, where we believe the risks are increasing from rising
inflation and falling wage growth impacting demand, and building cost
pressures within many consumer facing business models.

19 June 2017

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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