Portfolio Update

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)

All information is at 30 April 2018 and unaudited.
Performance at month end is calculated on a cum income basis

	One Month	Three months	One year	Three years	Five years
Net asset value	4.1	2.2	16.1	66.9	125.6
Share price	10.2	9.8	32.8	91.6	149.9
Benchmark*	5.1	0.8	6.2	32.0	69.7

Sources: BlackRock and Datastream

*With effect from 22 March 2018 the Numis Smaller Companies plus AIM (excluding Investment Companies) Index replaced the Numis Smaller Companies excluding AIM (excluding Investment Companies) Index as the Company’s benchmark. From 1 December 2013 to 21 March 2018, the Company’s benchmark was the Numis Smaller Companies excluding AIM (excluding Investment Companies) Index, which replaced the Numis Smaller Companies plus AIM (excluding Investment Companies) Index as the Company’s benchmark. The above period indices have been blended to reflect these changes.

At month end
Net asset value capital only:	567.58p
Net asset value incl. income:	572.69p
Share price	528.00p
Discount to cum income NAV	7.8%
Net yield1:	1.7%
Total Gross assets2:	£418.8m
Net market exposure as a % of net asset value3:	109.1%
Ordinary shares in issue4:	73,130,326
2017 ongoing charges* (excluding performance fees)5,6:	0.9%
2017 ongoing charges* ratio (including performance fees)5,6,7:	2.2%

*Ongoing Charges: The management fee rate reductions, as detailed in the notes below, will impact management fees in 2017 and onwards.   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 Company.

1. Calculated using the 2017 interim dividend declared on 24 July 2017 and the 2017 final dividend declared on 12 February 2018 and paid on 29 March 2018.
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 2017.
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	37.1
Financials	21.0
Consumer Services	15.1
Consumer Goods	7.6
Technology	7.2
Health Care	6.1
Basic Materials	4.0
Oil & Gas	1.9
Net current liabilities	0.0
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Total	100.0
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Market Exposure (Quarterly)
	31.05.17	31.08.17	30.11.17	28.02.18
Long	117.3	115.3	116.9	119.6
Short	6.1	5.8	6.3	8.4
Gross exposure	123.4	121.1	123.2	128.0
Net exposure	111.2	109.5	110.6	111.2

Ten Largest Investments
Company	% of Total Gross Assets
Melrose Industries	3.9
Ascential	2.9
Dechra Pharmaceuticals	2.8
Robert Walters	2.5
Restore	2.5
Ibstock	2.4
CVS Group	2.1
Fevertree Drinks	2.1
4imprint Group	2.0
SSP	2.0

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

During April the Company’s NAV per share rose by 4.1%* to 572.69p on a cum income basis whilst our benchmark index rose by 5.1%*; the FTSE 100 Index rose 6.8%* (all performance figures are in sterling terms with income reinvested).

April was a tough month to navigate, with the stock market rebounding hard after a weak quarter (where our Company performed strongly) and where the market leadership was driven by the sectors and companies that our Company is structurally underweight and/or short.  We still had some strong stock and industry specific successes, but alas not powerful enough to overturn the market backdrop.

Our underweight positioning in the Oil and Mining sectors weighed on performance as these companies outperformed as commodity prices rallied in response to a combination of trade war rhetoric and rising inflation fears. Furthermore, this environment catalysed a wider rally in other ‘perceived’ value areas of the market. This created a difficult headwind for a number of short positions which have been large contributors in the year to date, as these companies were beneficiaries of the market rally.

Two of the largest positive contributors came from companies in the video gaming industry, Keywords Studios and Sumo Group. Keywords Studios, the leading international services provider to the global video games industry, released better than expected full year results, showing strong organic growth supplemented by a number of acquisitions throughout the year. The company has been taking advantage of the significant market fragmentation and the shift of the big games companies to outsource more of their requirements, and continues to expand its capabilities and geographical presence through Mergers & Acquisitions. Sumo Group which we purchased at IPO (Initial Public Offering) in December 2017, also delivered better than expected full year results. The company is seeing strong demand for the group’s products and expect organic growth to continue, whilst also looking to supplement this by acquiring complimentary businesses, providing further scale. Identity verification software provider, GB Group, saw its shares rally after releasing a trading statement showing strong revenue and profit growth ahead of consensus.

During the month we continued to concentrate the portfolio by adding to a number of the Company’s core ideas, including Melrose Industries, Renishaw, Restore and Learning Technologies. As discussed in the recent Annual General Meeting, we also continued to reduce our resources exposure through reductions in Central Asia Metals and Faroe Petroleum, and selling Kaz Minerals completely.

*Source: BlackRock as of 30 April 2018

22 May 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.