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

Blackrock Throgmorton TrustAnnouncement

16/10/2017 17:10

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)
 

All information is at 30 September 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      -0.3       5.7    31.3     73.4    145.5 
 Share price          -0.3       4.3    34.8     68.5    156.6 
 Benchmark*            1.0       4.7    20.2     43.5     91.4 

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:                                            523.23p 
 Net asset value incl. income:                                            529.93p 
 Share price                                                              441.25p 
 Discount to cum income NAV                                                 16.7% 
 Net yield (1):                                                              1.9% 
 Total Gross assets (2):                                                  £387.5m 
 Net market exposure as a % of net asset value (3):                        109.2% 
 Ordinary shares in issue (4):                                         73,130,326 
 2016 ongoing charges* (excluding performance fees (5)(,6):                  1.1% 
 2016 ongoing charges* ratio (including performance fees) (5,6,7)(:)         1.3% 

*Ongoing Charges: The recently announced management fee rate reductions, as
detailed in the notes below, will impact management fees in 2017 and
onwards.   As a result, the 2016 Ongoing Charge figures above should not be
used as a guide to future costs.  The impact of the new fee arrangements,
assuming the same level of performance from the manager and assuming all other
charges remain the same, would be to reduce the level of Ongoing Charges borne
by the trust.

1. Calculated using 2017 interim dividend declared on 24 July 2017 and 2016
final dividend declared on 6 February 2017.

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

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

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

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

6. With effect from 1 August 2017 the base management fee was reduced from
0.70% to 0.35% of gross assets per annum.

7. Effective 1st December 2017 the annual performance fee arrangements for the
Company will change.  The annual performance fee will be calculated using
performance data on an annualised rolling two year basis (previously, one
year) and the cap on annual performance fees will be reduced to 0.9% of two
year rolling average month end gross assets (from 1% of average annual gross
assets over one year). Additionally, the Company will accrue this fee at a
rate of 15% of outperformance (from 10%). The maximum annual total fee
(comprising the base management fee and the performance fee) will therefore
fall to 1.25% of average month end gross assets on a two year rolling basis
(from 1.70% of average annual gross assets).
 

 Sector Weightings    % of Total Assets 
                                        
 Industrials                       32.3 
 Financials                        19.0 
 Consumer Services                 17.4 
 Consumer Goods                    10.9 
 Basic Materials                    7.2 
 Health Care                        5.3 
 Technology                         4.3 
 Oil & Gas                          2.7 
 Net current assets                 0.9 
                                  ----- 
 Total                            100.0 
                                  ===== 

Market Exposure (Quarterly)
 

                  30.11.16   28.02.17   31.05.17   31.08.17  
                          %          %          %          % 
 Long                 116.9      121.4      117.3      115.3 
 Short                  8.5        6.7        6.1        5.8 
 Gross exposure       125.4      128.1      123.4      121.1 
 Net exposure         108.4      114.7      111.2      109.5 

   

 Ten Largest Investments                          
                                                  
 Company                  % of Total Gross Assets 
                                                  
 CVS Group                                    3.4 
 Dechra Pharmaceuticals                       2.9 
 4imprint Group                               2.7 
 Ibstock                                      2.2 
 Hill & Smith                                 2.1 
 Johnson Service Group                        2.1 
 Melrose Industries                           2.1 
 Big Yellow                                   2.0 
 Accesso Technology                           2.0 
 Ascential                                    2.0 

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

During September the Company’s NAV per share fell by 0.3% to 529.93p on a
cum income basis, whilst our benchmark (the Numis Smaller Companies excluding
AIM (excluding Investment Companies) Index) rose by 1.0%; the FTSE 100 Index
fell by 0.8% (all performance figures are with income reinvested and net of
ongoing charges and any applicable performance fees).

Stock selection was the primary driver of underperformance during the month,
while sector allocation also detracted modestly.

The underperformance during the month was predominantly driven by a reversal
in the share prices of a number of our recent strong performing holdings. A
change in market sentiment towards value over growth, coupled with foreign
exchange moves saw our holdings in 4imprint, Fever-Tree and Advanced Medical
Solutions all detract during the month, despite no stock specific newsflow.
The largest single stock detractor during the month was UP Global Sourcing
which fell after the company issued a trading statement warning of a tougher
outlook for retailers and therefore revenue growth for the full year being
unlikely as retailers are exercising caution with regard to non-food buying.

Short positions were a modest detractor in September, with a number of our
shorts rising on the back of the market rise.

Ticketing technology solutions provider Accesso was the largest contributor
during the month. The company reported solid interim results showing continued
momentum in the business, growing revenues organically while recent
acquisition Ingresso also showed strong growth. Veterinary surgery operator
CVS Group reported strong full year results, delivering profit and revenue
growth ahead of expectations, with a number of brokers putting through
upgrades on the back of this continued delivery. Johnson Service Group’s
interim results showed continued strong organic revenue growth, while the
successful integration of recent acquisitions resulted in brokers to upgrade
Earnings Per Share forecasts. Chief Executive Officer Chris Sander announced
his decision to retire in the first half of 2018, after 33 years with the
group, however he leaves at a time when the business is in good shape, with a
strong balance sheet to support the current strategy.

Activity during September included a purchase in SuperGroup, the distinctive
fashion retailer behind the Superdry brand. We further reduced some of our
domestic exposed holdings and added to Melrose Industries and Hill & Smith.

16 October 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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