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

Blackrock Throgmorton TrustAnnouncement

20/07/2017 11:55

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)

All information is at 30 June 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      -3.5       7.3    45.2     61.5    149.8 
 Share price          -2.5      12.9    46.8     61.3    167.9 
 Benchmark*           -2.9       3.7    29.1     33.1     97.5 

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:                                 496.68p 
 Net asset value incl. income:                                 503.27p 
 Share price                                                   425.00p 
 Discount to cum income NAV                                      15.6% 
 Net yield (1):                                                   1.8% 
 Total Gross assets (2):                                       £368.0m 
 Net market exposure as a % of net asset value (5):             113.0% 
 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 dividend paid on 19 August 2016 and 2016
final dividend paid on 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                                                    29.6 
 Consumer Services                                              21.6 
 Financials                                                     18.3 
 Consumer Goods                                                 12.2 
 Basic Materials                                                 7.3 
 Health Care                                                     4.7 
 Technology                                                      3.8 
 Oil & Gas                                                       2.3 
 Net current assets                                              0.2 
                                                               ----- 
 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                                    3.0 
 Dechra Pharmaceuticals                       2.5 
 4imprint Group                               2.5 
 Bellway                                      2.0 
 Big Yellow                                   2.0 
 Melrose Industries                           1.9 
 Ascential                                    1.9 
 Cineworld Group                              1.9 
 Ibstock                                      1.9 
 Hill & Smith                                 1.9 

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

During June the Company’s NAV per share fell by 3.5% to 503.27p, whilst our
benchmark (the Numis Smaller Companies excluding AIM (excluding Investment
Companies) Index) fell by 2.9%; the FTSE 100 Index fell by 2.4% (all
performance figures are with income reinvested and net of ongoing charges and
any applicable performance fees).

Both stock selection and sector allocation were modest detractors during the
month.

Asset manager Polar Capital Holdings results for the year to March showed a
12% increase in AUM (assets under management) over the 12 month period, with
improving momentum in inflows during the second half of the year and strong
investment performance across funds. The company’s balance sheet remains
very strong, supporting the dividend. Housebuilder Bellway performed well
after issuing a positive trading update showing strong demand in the 4 months
to June and saying full-year completions are expected to increase by almost 10
percent.

There were no major individual stock specific disappointments during the
month. Fashion retailer JD Sports fell with other consumer related shares on
the back of weak UK consumer spending data and an “in-line” trading
statement. Colour cosmetics company Warpaint provided an update showing
trading for 2017 has been in-line with expectations, with particular strength
in the US where they have seen double digit sales growth. Sales in Europe were
similar to this time last year and this caused the shares to fall during the
month.

Activity during the month was limited.

The long/short portfolio fell 0.4% during the month, with long positions
detracting from performance, whilst shorts were a positive contributor.
Detractors within the long book included a number of core holdings that have
performed well year-to-date that gave back some of their strong performance
including JD Sports, CVS Group and Ascential.  We are comfortable with these
positions and in some instances have used the weakness to tactically increase
holdings. The short book had a strong month, helped by a falling market, but
also a number of stock specific successes, notably amongst some of our
domestic consumer facing shares.  A profit warning from a UK sofa retailer
highlights the severity and speed of the recent consumer downturn. This bodes
well for a number of our other shorts where we see a number of consumer facing
shares with challenged business models collide with weakening demand,
increased supply, and increased cost pressures.

20 July 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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