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

Blackrock Throgmorton TrustAnnouncement

14/02/2018 15:10

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)
 

All information is at 31 January 2018 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       0.2       2.7    31.0     76.8    137.7 
 Share price           2.3       5.9    38.6     82.9    149.6 
 Benchmark*           -3.1      -1.3    15.1     41.7     75.0 

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:                                          558.15p 
 Net asset value incl. income:                                          567.43p 
 Share price                                                            488.00p 
 Discount to cum income NAV                                               14.0% 
 Net yield (1):                                                            1.7% 
 Total Gross assets (2):                                                £415.0m 
 Net market exposure as a % of net asset value (3):                      111.2% 
 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 have changed.  The annual performance fee is now calculated using
performance data on an annualised rolling two year basis (previously, one
year) and the maximum annual performance fee payable is effectively 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 now accrues 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                       34.1 
 Financials                        19.9 
 Consumer Services                 14.2 
 Consumer Goods                     9.6 
 Basic Materials                    7.0 
 Health Care                        5.8 
 Technology                         5.8 
 Oil & Gas                          2.3 
 Net current assets                 1.3 
                                  ----- 
 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                       3.1 
 4imprint Group                               2.8 
 CVS Group                                    2.7 
 Melrose Industries                           2.2 
 Ibstock                                      2.2 
 Robert Walters                               2.2 
 Big Yellow                                   2.1 
 Bodycote                                     2.1 
 Johnson Service Group                        1.9 
 Ascential                                    1.9 

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

During January the Company’s NAV per share rose by 0.2% to 567.43p on a cum
income basis whilst our benchmark (the Numis Smaller Companies excluding AIM
(excluding Investment Companies) Index) fell by 3.1%; the FTSE 100 Index fell
by 2.0%(all performance figures are with income reinvested and net of ongoing
charges and any applicable performance fees).

Stock selection in both long and short positions drove outperformance during
the month.

Dechra Pharmaceuticals was the largest positive contributor during the month
following a positive trading update, reporting revenues ahead of consensus,
benefiting from strong performance in North America. The company also
announced the Euro 340m acquisition of a Dutch based veterinary
pharmaceuticals company focused on generic products. Shares in veterinary
practitioner CVS Group rallied after the company reported better than expected
like for like sales growth in H1. The result was particularly welcome as CVS
had been a large detractor in the fourth quarter of 2017 following a trading
update flagging slower and more volatile sales growth. These results provided
us with confirmation that our investment thesis remains on track and we were
right to add to the shares on weakness last year. On the short side we
benefitted from our short in a UK roadside assistance company where shares
fell during the month on growing fears about its balance sheet.

The largest stock specific detractor came from a short position in an online
electrical retailer which bounced after reporting an in-line trading update,
although the house broker reduced their future year profit forecasts
significantly. Our long positions in Restore and Hill & Smith underperformed
despite no stock specific newsflow.

Activity during January included adding to RWS and Liontrust Asset Management
and purchasing a new holding in Computacenter. We continue to use market
volatility to add to existing holdings where we feel the valuation does not
reflect the true earnings potential of these companies.

14 February 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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