Portfolio Update

BLACKROCK THROGMORTON TRUST PLC All information is at29 February 2016 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 (undiluted)#			-1.7		-5.1		6.8		42.3		70.5
Net asset value (fully diluted)			-1.7		-5.1		6.8		42.3		61.5
Share price			-2.5		-6.2		11.1		46.6		76.6
Benchmark*			0.2		-5.1		-1.8		23.6		40.7
Sources: BlackRock and Datastream #Prior to dilution arising on conversion of subscription shares. *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 three and five year period indices have been blended to reflect this.
At month end
Net asset value capital only:								365.36p
Net asset value incl. income:								365.91p
Share price								312.75p
Discount to cum income NAV								14.5%
Net yield								2.1%*
Total Gross assets								£267.6m**
Net market exposure as a % of net asset value^								107.0%
Ordinary shares in issue:								73,130,326***
2015 ongoing charges (excluding performance fees):								1.1%****
2015 ongoing charges ratio (including performance fees):								2.3%
* Calculated using the prior year interim dividend paid and the final dividend declared. ** Includes current year revenue and excludes the gross exposure through contracts for difference. *** Excluding 7,400,000 shares held in treasury. **** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 November 2015. ^Long positions less short positions as a percentage of net asset value.
Sector Weightings				% of Total Assets
Industrials				27.1
Consumer Services				20.0
Financials				19.5
Technology				9.8
Health Care				9.1
Consumer Goods				9.0
Basic Materials				5.2
Oil & Gas				1.9
Telecommunications				0.3
Net current liabilities				-1.9
				-----
Total				100.0
				=====
Market Exposure (Quarterly)
	31.05.15	31.08.15				30.11.15				29.02.16
	%	%				%				%
Long	116.8	115.2				115.2				118.2
Short	9.6	9.0				9.2				11.2
Gross exposure	126.4	124.2				124.4				129.4
Net exposure	107.2	106.2				106.0				107.0
Ten Largest Investments
Company				% of Total Gross assets
JD Sports				2.9
CVS Group				2.8
4imprint Group				2.6
Rathbone Brothers				2.3
Dechra Pharmaceuticals				2.3
Workspace Group				2.2
Ted Baker				1.9
Topps Tiles				1.8
Restore				1.8
Fuller Smith & Turner				1.8
Commenting on the markets, Mike Prentis and Dan Whitestone, representing the Investment Manager noted: February was a very volatile and difficult month in which January’s sharp sell off continued until mid-month and was then followed by a rapid reversal. In particular we saw a change in share price momentum with many of the stocks which had done well in recent months being sold off sharply, and others that had performed poorly in recent months now doing well. This is consistent with short closing, and we believe many long/short funds reduced exposures during the month resulting in this sharp change in fortunes for many stocks. During February the Company’s NAV per share fell by 1.7% on a cum income basis whilst our benchmark index rose by 0.2%; the FTSE 100 Index also rose by 0.2%. Relative underperformance was mainly derived from stock selection in the long only portfolio. The long only portfolio fell in value by 1.3% and the CFD portfolio lost a further 0.3% of the NAV. These individual portfolio returns are before costs. The largest detractors from relative performance in the long only portfolio were our holdings in Fevertree Drinks, Workspace, Polar Capital and Alternative Networks, although none of these individually exceeded 0.2% of relative performance. Fevertree Drinks has been an excellent performer both operationally and in share price terms. In its most recent trading statement it indicated that sales in the second half of 2015 had increased by 77%. Fevertree’s share price has increased by 266% over the last 12 months. However, in February we saw a reversal in its share price momentum with the shares falling by 15.2% which was just profit taking after a very strong run. Workspace shares suffered as BREXIT fears gathered pace. Workspace’s property is all on the periphery of Central London and there are fears that if the UK leaves the EU there will be significant job losses in London, and lower demand for London office property, bad news for Workspace. Workspace’s businesses are typically very dynamic and more likely than many to adapt to changing circumstances. On average they pay much lower rents than businesses in prime Central London. Polar Capital is a fund manager, with significant assets in Japan.  The Japanese market performed poorly in February. Alternative Networks had a trading update in February but it was unfavourable, with reduced mobile profits expected as a result of pressures on roaming revenues caused by a more competitive business mobile market. Our relative performance was also negatively impacted by not owning Home Retail shares in the portfolio, a large benchmark constituent. Home Retail attracted further bid interest with the shares appreciating by a further 29% during the month. The largest positive contributor to stock selection during the month was our holding in Dechra Pharmaceuticals. Dechra announced interim results with revenues rising by 14.9% (at constant exchange rates), and EPS up by 17.6%. We had a good meeting with management who remain positive about prospects for this very internationally exposed business. Within sector allocation our underweight position in mining companies and our overweight position in aerospace & defence companies both detracted from performance. Portfolio activity during the month was fairly modest. After a good meeting with management, we did add a small position in Supergroup, a former holding, taking part in a placing of shares by one of the founders. Turning to the CFD portfolio, this coped well with the initial market sell-off in February, but struggled against the speed and severity of the market rotation and change in market leadership which drove the recovery in the second half of February. This impacted the long portfolio where some strong performers weakened in the month on no newsflow, and the short book rose significantly in the value-led rally. As a result, the CFD portfolio lost 33 basis points (bps) in February, evenly split between the long and short positions. This was a month where fundamentals were less important than market positioning.  The top 5 contributors comprised of 1 short position and 4 longs (Dechra, GVC, National Express, and Just Eat). The top 5 detractors comprised of 2 short positions (related to the mining industry) and 3 long positions (FeverTree, Workspace, and Fullers). Our confidence in our long book remains unchanged, and we also remain confident in the short book, where, despite the recent share price moves (upwards) the fundamentals in many cases are deteriorating.  Maintaining our disciplined approach to position sizing has helped mitigate losses. 15 March 2016 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.