Management fee and change in investment restric...

BLACKROCK THROGMORTON TRUST PLC
(LEI: 5493003B7ETS1JEDPF59)

Management fee arrangements and change in investment restrictions

The Board of BlackRock Throgmorton Trust plc (the “Company”) is pleased to announce a change in the management fees payable to BlackRock Fund Managers Limited (‘’the Manager’’).  

• The base management fee will be reduced from 0.70 per cent. to 0.35 per cent. of gross assets per annum. (Management fees will be calculated on the month end gross assets of the Company, including the economic exposure of the total long and short Contracts for Difference (CFDs) and index futures less current liabilities). The new base management fee will be effective from 1 August 2017.

• The performance fee will be increased from 10 per cent. to 15 per cent. of Net Asset Value (NAV) total return outperformance of the benchmark measured over a two year rolling basis and will be applied on the average gross assets over two years.

• The previous cap on the performance fee of 1 per cent. of average gross assets over a one year period has been replaced with a cap of 0.9% of average gross assets over a two year period.The new performance fee will be effective 1 December 2017 to coincide with the start of the new financial year of the Company. These arrangements will be reflected in the Investment Management Agreement between the Company and the Manager as a cap of 1.25% of average gross assets over a two year period which will apply on the total base and performance fee payable from 1 December 2017.

The Company also announces a non-material change to its investment policy. Effective immediately, the Company will increase the restriction on its maximum exposure to equities or collective investment vehicles traded on the AIM market of the London Stock Exchange from 25 per cent. to 35 per cent. of the Company’s gross assets at the time of acquisition of investments. The Board will continue to review whether the investment policy restrictions remain appropriate, including investigating the potential benefits of increasing the AIM exposure further and ensuring the benchmark is suitably aligned to the underlying investments.

The Company remains a focused small/mid cap fund with the ability to mitigate risk and improve performance by using CFDs and index futures to adjust both market exposure and generate additional returns.

For the purposes of the Listing Rules, the Manager is a related party of the Company and the amendments as set out above fall within Listing Rule 11.1.10 R, thus not requiring a shareholder vote.

For further information, please contact:

Simon White, Managing Director, Investment Companies, BlackRock Investment Management (UK) Limited
Tel: [phone]

Press enquiries:

Lucy Horne, Lansons Communications – Tel:  [phone]
E-mail:  [e-mail]

24 July 2017

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