The BlackRock Throgmorton Trust reported modest growth in July 2025, with its net asset value (NAV) rising just 0.2%, lagging behind its benchmark’s 0.7% gain. While the share price outperformed the NAV with a 0.7% increase, the trust missed out on a lucrative acquisition opportunity—a company it didn’t hold surged 75% on a takeover bid before issuing a profit warning in August. The UK-focused trust faced headwinds in the property sector, with holdings like Bellway and Grafton dragging performance due to weaker industry data. In response, management reduced exposure to UK cyclical stocks and increased short positions while expanding international investments to 12% of the portfolio. Positive contributions came from Alpha Group International, acquired by a payments firm, and Boku, which raised its annual forecast amid a shift toward local payment methods.
Buybacks Signal Confidence
The trust continues its aggressive share buyback strategy, purchasing 15,000 shares at an average price of 599.86 pence in early August. With over 26 million shares now held in treasury—26.03% of total issued capital—the move underscores management’s belief in undervaluation. The reduced float enhances per-share value, reflecting a disciplined approach to capital allocation. Gross market exposure stood at 117% by July’s end, with net exposure at 108%, as the trust maintains a defensive stance amid market volatility.
