**Summary of BlackRock Throgmorton Trust PLC Half-Year Report (August 1, 2025)**
**Overview**
BlackRock Throgmorton Trust PLC released its half-year report for the six months ended May 31, 2025, highlighting performance, financial results, and strategic actions amid global market volatility. The report reflects challenges from geopolitical tensions, trade tariffs, and UK economic headwinds, impacting smaller companies and the trust’s performance.
**Key Financial Highlights**
**Net Assets**Declined to £505.94 million from £595.91 million in November 2024.
**Net Asset Value (NAV) per Share**Fell to 652.56p from 682.82p.
**Share Price**Remained flat at 578.00p, underperforming the benchmark.
**Benchmark Index**Rose 3.4%, while the trust’s NAV total return was -2.2%, underperforming by 5.6 percentage points.
**Revenue Earnings per Share**Decreased to 8.44p from 9.44p due to lower dividends and derivative income.
**Interim Dividend**Declared 3.80p per share, up from 3.75p, fully covered by portfolio revenue.
**Performance and Market Context**
The period was marked by global volatility, including US tariffs (“Liberation Day” measures) and UK Budget-related headwinds.
UK smaller companies underperformed, with the benchmark up 3.4% vs. FTSE All Share’s 7.3% gain.
The trust’s underperformance was attributed to stylistic headwinds (traditional value outperforming quality growth) and M&A activity not benefiting the portfolio.
Long-term performance remains strong104.6% NAV growth over 10 years vs. benchmark’s 44.9%.
**Strategic Actions**
**Share Buybacks**Repurchased 9.74 million shares for £55.91 million, reducing the discount to NAV to 10.3% as of July 30, 2025.
**Portfolio Adjustments**Reduced exposure to UK mid-cap domestic sectors (travel, leisure, retail) and increased shorts in these areas. Added international positions in defense, aerospace, and AI-related software.
**Outlook**
UK small and mid-cap valuations are historically low, trading at ~10x forward P/E, offering potential for reappraisal and recovery.
Challenges include de-equitisation of UK markets, outflows, and lack of IPOs, but international investor demand for UK equities remains.
The trust remains confident in its quality growth strategy and the long-term opportunities in UK smaller companies.
**Management and Governance**
James Will succeeded Chris Samuel as Chairman in March 2025.
The Board continues to focus on minimizing share price volatility and narrowing the discount to NAV through performance and shareholder engagement.
**Conclusion**
Despite short-term underperformance, BlackRock Throgmorton Trust maintains a long-term focus on quality growth, strategic share buybacks, and optimism for UK smaller companies’ recovery potential. The trust remains committed to delivering value to shareholders through disciplined investment and active portfolio management.