BlackRock Throgmorton Trust Plc - Portfolio Update

The information contained in this release was correct as at 31 January 2024. Information on the Company’s up to date net asset values can be found on the London Stock Exchange Website at:

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)

All information is at 31 January 2024 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	0.9	15.9	2.2	-8.3	36.2
Share price	-0.6	18.1	-1.4	-15.0	35.8
Benchmark*	-1.6	13.1	-3.3	-5.5	15.7

Sources: BlackRock and Deutsche Numis

*With effect from 15 January 2024 the Numis Smaller Companies plus AIM (excluding Investment Companies) Index to Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies).

At month end
Net asset value capital only:	638.76p
Net asset value incl. income:	653.87p
Share price	614.00p
Discount to cum income NAV	6.1%
Net yield1:	2.4%
Total Gross assets2:	£623.1m
Net market exposure as a % of net asset value3:	108.9%
Ordinary shares in issue4:	95,291,492
2023 ongoing charges (excluding performance fees)5,6:	0.54%
2023 ongoing charges ratio (including performance fees)5,6,7:	0.87%

1. Calculated using the Interim Dividend declared on 07 July 2023 paid on 29 August 2023, together with the Final Dividend declared on 05 February 2024 to be paid on 28 March 2024

2. Includes current year revenue and excludes gross exposure through contracts for difference.

3. Long exposure less short exposure as a percentage of net asset value.

4. Excluding 7,918,372 shares held in treasury.

5. The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding performance fees, finance costs, direct transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended 30 November 2023.

6. With effect from 1 August 2017 the base management fee was reduced from 0.70% to 0.35% of gross assets per annum. The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, including performance fees, but excluding finance costs, direct transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended 30 November 2023.

7. Effective 1st December 2017 the annual performance fee is 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 management fees (comprising the base management fee of 0.35% and a potential performance fee of 0.90%) are therefore 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	33.7
Consumer Discretionary	22.7
Financials	16.8
Technology	7.7
Basic Materials	5.5
Telecommunications	2.9
Consumer Staples	2.0
Health Care	1.8
Energy	1.4
Communication Services	1.3
Real Estate	0.9
Net Current Assets	3.3
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Total	100.0
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Country Weightings	% of Total Assets
United Kingdom	94.3
United States	4.0
France	0.8
Australia	0.7
Ireland	0.5
Sweden	-0.3
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Total	100.0
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Market Exposure (Quarterly)
	28.02.23 %	31.05.23 %	31.08.23 %	30.11.23 %
Long	110.3	111.7	112.7	111.3
Short	2.3	3.6	4.5	3.8
Gross exposure	112.6	115.3	117.2	115.1
Net exposure	108.0	108.1	108.2	107.5

Ten Largest Investments
Company	% of Total Gross Assets
Breedon	3.0
4imprint Group	3.0
Grafton Group	2.9
Gamma Communications	2.9
Oxford Instruments	2.8
YouGov	2.7
WH Smith	2.5
Rotork	2.4
Computacenter	2.2
FTSE 250	2.2

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

The Company returned 0.9% in January, delivering 2.5% of relative outperformance against the benchmark (Deutsche Numis Smaller Companies +AIM ex Inv Trusts returned -1.6%).

Broader markets proved quite mixed in January; whilst the tech heavy Nasdaq in the US climbed, most other major developed markets, including the UK, fell during the month. Despite this, stock specifics continue to exert more influence over returns and January continued this growing trend.

SigmaRoc delivered an impressive trading update with double-digit upgrades to full-year guidance. The company recently announced a significant acquisition of CRH’s limestone assets which further strengthens their European footprint. However, the upgrade for the full year announced in January was down to the strength of their underlying business, with ongoing strength in infrastructure and industrial markets and potential for a recovery in residential construction. Shares in 4imrpint surged after the company announced continued progress through the course of 2023 and as a result upgraded full year guidance (again). Digital payments business Boku reported increasing transaction volumes and an acceleration in adoption of Local Payment Methods from a number of their key merchants, driving upgrades to full year guidance.

The top detractor was Watches of Switzerland (WOSG). We had already reduced the position over late November/December 2023 which helped cushion the blow, but not enough to escape the impact from their profit warning in early January 2024 only a few weeks after they had reiterated their full year guidance in December. A marked deceleration in sales in lower/mid-tier watches and jewellery in the UK, and more importantly, a slowdown in the US caused by a change in product mix supply from Rolex caused the shares to fall significantly. We have written many times in the past about how c.2/3rd of WOSG sales are “waitlist product” and given the company "knows" its allocation from big brands (Rolex in particular), sales in this category should be highly predictable. We are reminded of Mark Twain's observation that "It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so". With Rolex delivering a mix of product that contained fewer gold/rose-gold and more “steel only” this had a significant impact on the year-on-year average selling price. Although we are still attracted to WOSG's attractive position in the supply chain and the long-term opportunity to expand the category in the US, this was a particularly disappointing development and we have reduced the position size significantly. WH Smith fell in the month despite issuing a trading statement which we thought was re-assuring. The shares have continued to de-rate to 14x PE, which we see as very attractive for a global leader in travel retail, especially as results from airlines and other travel operators are indicating the post COVID-19 travel recovery will continue into Summer 2024. Accordingly, we have added to the position. The third biggest detractor to performance was from not owning Yellowcake, a uranium investment company, that rose in the period.

In conclusion, despite a mixed market backdrop, January featured a large number of significant stock specific developments, some positive, some negative, but overall, considerably more positives than negatives! Whilst we briefly highlighted the three largest contributors during the month, it is worth mentioning that there were many more of our long-term core holdings that delivered impressive updates in the period, including, Gamma Communications, QinetiQ and Grafton, to name only a few. We note a broadening out of returns within the portfolio and the increasing role stock specifics are having, which reassures us that returns are not being driven by one thematic or macro bet. We remain excited about the opportunities in front of us; we think the current environment is a fertile one for bottom-up stock picking and we are working hard to capitalise on those opportunities while retaining overall balance in the portfolio which will hopefully build resilience in a range of macro and market environments. The net of the Company remains around 106% while the gross is around 114%.

We thank shareholders for your ongoing support.

1Source: BlackRock as at 31 January 2024

22 February 2024

ENDS

Latest information is available by typing www.blackrock.com/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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