Blackrock Throgmorton Investment Trust PLC — Net Asset Value 2014

Apr 7, 2014

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BLACKROCK THROGMORTON TRUST PLC - Portfolio Update

PR Newswire

London, April 7

BLACKROCK THROGMORTON TRUST PLCAll information is at 31 March 2014 and unaudited.Performance at month end is calculated on a cum income basis One Three One Three Month Months Year YearsNet asset value* -2.1% 2.8% 28.4% 49.7%Net asset value -2.1% 2.8% 28.4% 58.1%Share price -2.2% -0.2% 39.1% 69.1%Benchmark** -2.8% 3.5% 23.8% 43.2%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 Companiesplus AIM (excluding investment companies) Index as the Company's benchmark.For the one year and three year periods the above indices have been blended toreflect this.At month endNet asset value capital only: 347.77pNet asset value incl. income: 348.76pShare price: 311.00pDiscount to cum income NAV 10.8%Net yield: 1.3%*Total assets: £255.1**Net market exposure asa % of net asset value^: 108.2%Ordinary shares in issue: 73,130,326**** Calculated using prior year interim and final dividends paid.**Includes current year revenue and excludes the gross exposure throughcontracts for difference.***Excluding 7,400,000 shares held in treasury.^Long positions less short positions as a percentage of net asset value.Sector Weightings % of total assetsIndustrials 27.2Financials 19.9Consumer Services 19.8Technology 8.6Consumer Goods 8.3Basic Materials 7.0Health Care 5.9Oil & Gas 3.7Telecommunications 1.8Net current liabilities -2.2 -----Total 100.0 =====Market Exposure (Quarterly) 31.05.13 31.08.13 30.11.13 28.02.14Long 117.3% 117.5% 118.4% 118.8%Short 10.2% 12.0% 11.2% 10.7%Gross exposure 127.5% 129.5% 129.6% 129.5%Net exposure 107.1% 105.4% 107.2% 108.1%Ten Largest Equity InvestmentsCompany % of total assetsSenior 2.0Workspace Group 1.8Restaurant Group 1.8Elementis 1.7Bellway 1.7Headlam 1.6Avon Rubber 1.6Polar Capital Holdings 1.6Paragon 1.5Dunelm Group 1.5Commenting on the markets, Mike Prentis and Richard Plackett*, representing theInvestment Manager noted:During March the Company's NAV per share fell by 2.1%. The benchmark index fellby 2.8% whilst the FTSE 100 Index fell by 3.1%; all figures on a total returnbasis.The relative contribution from stock selection and sector allocation were bothpositive. The CFD portfolio had a difficult month and lost money on the longCFDs in a weaker market.Looking at stock selection the best relative contribution from holdings in themonth came from Telit Communications, Walker Greenbank, and Lookers. Telit isachieving strong growth in sales of its machine to machine communicationsmodules. Walker Greenbank is seeing improving demand for its wallcoverings andsoft furnishings, with good sales increases in the US and Western Europe.Lookers has seen good new and used car sales in the UK, and also goodperformances from its aftermarket and parts businesses. All of these companiesare well set and confident.The largest negative contributors to stock selection in the month came fromOptimal Payments and ITE Group. Optimal shares had performed strongly inFebruary and saw some profit taking. It announced full year results withrevenues up by 41% and EBITDA up by 89%. We met with management who remainpositive about prospects for 2014 and especially 2015 when the opportunities inUS online gaming should begin to benefit Optimal significantly.Shares in ITE fell sharply given its exposure to Russia and the former SovietUnion, where it generates most of its revenues from the exhibitions itorganizes. ITE announced a trading update confirming that its exhibitions inRussia and the Ukraine had so far taken place as planned. However revenues fromthe recent exhibitions in the Ukraine have been impacted and currency weaknessis also reducing revenues and profits. Earnings have been downgraded for thisyear and next, but post downgrades the shares are now trading on only 10 timescurrent year earnings; the Company has net cash on its balance sheet. This hasbeen an excellent long term and high quality growth company and in time weexpect this to be recognised again.Sector allocation benefitted from our lack of holdings in the non-lifeinsurance space. In particular, companies providing annuities sufferedfollowing the Chancellor's budget announcement that individuals would no longerbe required to convert their pension funds into annuities.We trimmed further some of our holdings in larger midcaps and used the proceedsto gain greater exposure to companies benefitting from the gradual improvementin the economies of Continental Europe. We also added a holding in Boohoo, theonline fashion clothing retailer which completed a successful IPO during themonth.*From 1 April 2014, Richard Plackett is on a six-month sabbatical. During thisperiod the BlackRock Throgmorton Trust plc will be co-managed by Ralph Cox7 April 2014ENDSLatest information is available by typing www.blackrock.co.uk/thrg on theinternet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICVterminal). Neither the contents of the Manager's website nor the contents ofany website accessible from hyperlinks on the Manager's website (or any otherwebsite) is incorporated into, or forms part of, this announcement.