BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC
All information is at 28 February 2015 and unaudited.
Performance at month end with net income reinvested
One Three One Since Three Five
month months year 1 April years years
2012
Sterling:
Share price 2.2% 8.1% 14.4% 55.9% 46.9% 69.0%
Net asset value 3.4% 7.1% 13.3% 45.5% 44.2% 65.7%
FTSE All-Share Total Return 3.7% 4.7% 5.6% 37.7% 36.4% 62.1%
Source: BlackRock
BlackRock took over the investment management of the Company with effect from 1
April 2012.
At month end
Sterling:
Net asset value - capital only: 187.04p
Net asset value - cum income*: 188.49p
Share price: 184.50p
Total assets (including income): £51.4m
Discount to cum-income NAV: 2.1%
Net Gearing: 0.2%
Net yield**: 3.1%
Ordinary shares in issue***: 26,229,268
Gearing range (as a % of net assets) 0-20%
Ongoing charges****: 1.2%
* includes net revenue of 1.45 pence per share
** based on an interim dividend of 2.20p per share and a final dividend of
3.50p per share in respect of the year ended 31 October 2014.
*** excludes 6,704,664 shares held in treasury
**** Calculated as a percentage of average net assets and using expenses,
excluding performance fees and interest costs for the year ended 31 October
2014.
Benchmark
Sector Analysis Total assets (%)
Support Services 11.8
Life Insurance 10.1
Tobacco 10.0
Travel & Leisure 9.1
Pharmaceuticals & Biotechnology 8.1
Banks 7.7
Oil & Gas Producers 6.6
Media 4.9
General Retailers 4.3
Mining 4.1
Non-Life Insurance 3.6
Electronic & Electrical Equipment 2.8
Food Producers 2.7
Beverages 2.6
Financial Services 2.3
Fixed Line Telecommunications 2.3
General Industrials 1.8
Household Goods & Home Construction 1.4
Industrial Engineering 0.1
Net Current Assets 3.7
Total 100.0
Ten Largest Equity Investments
Company % of Total assets
British American Tobacco 5.3
AstraZeneca 4.8
Imperial Tobacco Group 4.7
HSBC Holdings 4.6
Rio Tinto 4.1
Prudential 3.9
Reed Elsevier 3.8
Friends Life 3.6
Next 3.6
BP Group 3.5
Commenting on the markets, Adam Avigdori and Mark Wharrier representing the
Investment Manager noted:
The February performance of the UK equity market is the best monthly
performance in a year, with the FTSE 100 Index reaching a new all-time high,
surpassing the previous record set in 1999. The bailout negotiations for Greece
dominated market sentiment with an extension being approved towards the end of
the month.
The Company returned 3.4%* in February, slightly underperforming the FTSE
All-Share Index return of 3.7%.
Over the month, the FTSE 250 Index significantly outperformed the FTSE 100
Index, returning 6.0% and 3.3% respectively. Holdings in defensive earners Reed
Elsevier, AstraZeneca, Unilever, Compass Group and British American Tobacco,
which have recently been strong performers, lagged the market rally in
February. Being underweight in Mining and Oil & Gas also detracted from
relative performance as both sectors reversed their losses from January on the
back of rising commodity prices.
On the positive side, our holding in Essentra was the largest positive
contributor during the month after reporting strong revenue growth for 2014 and
giving confidence that management can deliver on their goal to double revenues
by 2020. Rio Tinto also rose after strong results, announcing a share
repurchase worth $2bn and raising their dividend, reflecting the strong capital
position of the group. Other positive contributions came from our holdings in
DS Smith, Rentokil, Domino Printing Sciences, Howden Joinery and Burberry
Group.
Activity over the month included new purchases in BT Group and Bodycote and
additions to our holdings in Diageo, AstraZeneca and DS Smith. We reduced our
positions in Royal Dutch Shell, GlaxoSmithKline and Wolseley and sold out of
Reckitt Benckiser, Burberry Group and Shire.
Eurozone economic activity is showing signs of improvement as the European
Central Bank starts quantitative easing, whilst in the US the ending of
quantitative easing is contributing to uncertainty. We continue to focus more
on the specific drivers of individual companies and the ability to determine
their future rather than relying on a specific macro outcome. Given the outlook
for both economic growth and interest rates remains uncertain, we seek those
companies that can drive returns through self-help and have a clear strategy to
deploy the cashflow they generate. The portfolio is primarily invested in high
free cash flow companies that can sustain cash generation and pay a growing
dividend yield, but also has exposure to companies with sustainable growth
franchises and turnaround situations.
* NAV - Inc. performance.
17 March 2015
