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

Blackrock Throgmorton TrustAnnouncement

15/01/2018 16:50

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)
 

All information is at 31 December 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       4.4       6.9    34.0     80.0    147.7 
 Share price           4.3       8.1    39.4     82.7    161.7 
 Benchmark*            3.5       4.0    19.5     46.8     89.1 

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:                                          557.47p 
 Net asset value incl. income:                                          566.50p 
 Share price                                                            477.00p 
 Discount to cum income NAV                                               15.8% 
 Net yield (1):                                                            1.7% 
 Total Gross assets (2):                                                £414.3m 
 Net market exposure as a % of net asset value (3):                      112.4% 
 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 have changed.  The annual performance fee will be calculated using
performance data on an annualised rolling two year basis (previously, one
year) and the maximum annual performance fee payable will effectively be
reduced to 0.90% 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 (previously 10%). The
maximum annual total fees (comprising the base management fee of 0.35% and a
potential  performance fee of 0.90%) 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                            35.3 
 Financials                             20.5 
 Consumer Services                      14.1 
 Consumer Goods                         11.5 
 Basic Materials                         8.4 
 Health Care                             5.4 
 Technology                              4.3 
 Oil & Gas                               2.3 
 Net current liabilities               (1.8) 
                                       ----- 
 Total                                 100.0 
                                       ===== 

Market Exposure (Quarterly)

                  28.02.17   31.05.17   31.08.17   30.11.17  
                          %          %          %          % 
 Long                 121.4      117.3      115.3      116.9 
 Short                  6.7        6.1        5.8        6.3 
 Gross exposure       128.1      123.4      121.1      123.2 
 Net exposure         114.7      111.2      109.5      110.6 

   

 Ten Largest Investments                          
                                                  
 Company                  % of Total Gross Assets 
                                                  
 Dechra Pharmaceuticals                       2.8 
 4imprint Group                               2.5 
 Ibstock                                      2.4 
 Hill & Smith                                 2.2 
 Big Yellow                                   2.2 
 CVS Group                                    2.1 
 Ascential                                    2.1 
 Robert Walters                               2.0 
 Johnson Service Group                        2.0 
 Restore                                      1.9 

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

During December the Company’s NAV per share rose by 4.4% to 566.50p on a cum
income basis whilst our benchmark (the Numis Smaller Companies excluding AIM
(excluding Investment Companies) Index) rose by 3.5%; the FTSE 100 Index rose
5.0% (all performance figures are with income reinvested and net of ongoing
charges and any applicable performance fees).

Stock selection was the primary driver of outperformance during the month
while sector allocation also contributed positively.

The largest positive contributors to performance during December were our
holdings in Central Asia Metals and Kaz Minerals which both performed well
along with the wider mining sector which benefited from the strength in metals
prices at the end of the year. Premium mixer supplier Fever-Tree finished the
year strongly and was one of the top contributors to performance in December.
During the month the company announced the launch of their US office, which
the management said “signalled Fever-Tree’s commitment to and focus on the
North American market.” Success in the US would materially increase their
addressable market and prospects for profits. Shares in Premier Asset
Management performed well with the company being a beneficiary of strong
market returns whilst also seeing continuing inflows into its multi-asset
products where it has first quartile performance.

The largest stock specific detractor during the month was LED lighting
manufacturer Luceco. The shares fell in response to a trading update warning
that gross margin weakness due to an incorrect assessment of stock, would
cause a 20% hit to full year 2017 earnings. We have spoken to management to
gain a better understanding of the issue; we have maintained our holding.

Short positions were a detractor during December reflecting an absence of any
stock specific “wins” and a rising market which catalysed short covering
across a range of sectors, resulting in many of the portfolio’s shorts
grinding higher through the month.

Activity during December included participating in the IPOs (Initial Public
Offering) of video game developer Sumo Group, and motor insurance company
Sabre Insurance. As noted in previous updates we have continued to reduce some
of our UK domestically exposed holdings.

15 January 2018

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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