Portfolio Update

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)
 

All information is at 31 July 2017 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	3.5	3.9	39.0	68.4	157.3
Share price	3.3	8.4	43.0	68.8	174.1
Benchmark*	2.9	2.7	23.8	38.5	101.6

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:	513.88p
Net asset value incl. income:	521.13p
Share price	439.00p
Discount to cum income NAV	15.8%
Net yield1:	1.7%
Total Gross assets2:	£381.1m
Net market exposure as a % of net asset value3:	112.8%
Ordinary shares in issue4:	73,130,326
2016 ongoing charges (excluding performance fees5:	1.1%
2016 ongoing charges ratio (including performance fees):	1.3%

1. Calculated using 2016 interim dividend paid on 19 August 2016 and 2016 final dividend paid on 29 March 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.

Sector Weightings			% of Total Assets
Industrials			30.4
Consumer Services			20.3
Financials			18.1
Consumer Goods			13.0
Basic Materials			8.0
Health Care			4.7
Technology			4.2
Oil & Gas			2.4
Net current liabilities			-1.1
			-----
Total			100.0
			====
Market Exposure (Quarterly)
	31.08.16 %	30.11.16		28.02.17	31.05.17
Long	114.3	116.9		121.4	117.3
Short	8.3	8.5		6.7	6.1
Gross exposure	122.6	125.4		128.1	123.4
Net exposure	106.0	108.4		114.7	111.2

Ten Largest Investments
Company	% of Total Gross Assets
CVS Group	3.0
Dechra Pharmaceuticals	2.5
4imprint Group	2.4
Ascential	2.1
Berkeley Group Holdings	2.0
Bodycote	2.0
Ibstock	1.9
Big Yellow	1.9
Hill & Smith	1.9
Bellway	1.9

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

During July the Company’s NAV per share rose by 3.5% to 521.1p on a cum income basis whilst our benchmark (the Numis Smaller Companies excluding AIM (excluding Investment Companies) Index) rose by 2.9%; the FTSE 100 Index returned 0.9% (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 was broadly flat.

Kaz Minerals has benefited from the strength in the copper price, which it is particularly geared into, but also company specific factors as their recent statement showed production running ahead of 2017 guidance. Keywords Studios reported preliminary results showing strong growth in revenues and profits driven by continued organic growth as well as positive contributions from acquisitions. Fever-Tree Drinks rose after the company reported another strong set of interim results, led by the UK, which saw sales more than double. The brand’s expansion overseas, which is key for the company to maintain momentum, has also been progressing well, particularly in Western Europe and management commented that the full year results are expected to be “materially ahead of expectations”.

Safestyle, a company engaged in the sale and manufacture of PVCu windows and doors, issued its half year trading update warning that revenue growth for the second half is expected to be modest given the weaker consumer backdrop. As a result profits for the full year will be less than previously anticipated and broadly in-line with 2016. Despite the challenging backdrop, with Safestyle’s end market seeing falling volumes in excess of 10%, the company continues to grow and take market share.

Activity during July included adding to our holdings in Ultra Electronics and Accesso, both of which are very international, while also further reducing some of our domestically exposed companies.

The long/short portfolio rose 0.6% during the month, with long positions contributing positively to performance, whilst shorts were a modest detractor. Within the long book a number of our holdings provided solid trading updates, including RPC, Ascential, and Fever-Tree. RPC issued a reassuring statement showing strong organic growth, M&A (Mergers & Acquisitions) synergies whilst also benefiting from FX (Foreign Exchange) tailwinds. Media business Ascential reported strong half year results and increased the dividend by 20% resulting in broker upgrades. The short book continued to deliver stock specific successes with one of the month’s top contributors coming from a UK construction company that fell more than 70% on the back of reduced financial guidance, increased contract provisions and rising net debt. Ongoing weakness in an online pizza delivery company where sales growth continues to slow, was another example of a short position where weakening demand, increased supply, and increased cost pressures continue to weigh on the share price.

15 August 2017

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.