BlackRock Income and Growth Investment Trust Plc - Portfolio Update
PR Newswire
LONDON, United Kingdom, June 18
The information contained in this release was correct as at 31 May 2025. 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 INCOME & GROWTH INVESTMENT TRUST PLC (LEI:5493003YBY59H9EJLJ16)
All information is at 31 May 2025 and unaudited.
Performance at month end with net income reinvested
| One Month | Three Months | One Year | Three Years | Five Years | Since 1 April 2012 |
Sterling |
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Share price | 3.5% | 2.5% | 4.8% | 28.6% | 53.7% | 149.7% |
Net asset value | 3.8% | 0.0% | 6.4% | 23.1% | 58.0% | 152.2% |
FTSE All-Share Total Return | 4.1% | 1.5% | 9.4% | 26.8% | 69.0% | 155.5% |
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Source: BlackRock |
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BlackRock took over the investment management of the Company with effect from 1 April 2012.
At month end
Sterling:
Net asset value - capital only: | 226.00p |
Net asset value - cum income*: | 231.07p |
Share price: | 205.00p |
Total assets (including income): | £50.5m |
Discount to cum-income NAV: | 11.3% |
Gearing: | 8.4% |
Net yield**: | 3.7% |
Ordinary shares in issue***: | 19,264,743 |
Gearing range (as a % of net assets): | 0-20% |
Ongoing charges****: | 1.15% |
* Includes net revenue of 5.07 pence per share | |
** The Company's yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 3.8% and includes the Interim Dividend of 2.70p per share declared on 20 June 2024 with pay date 29 August 2024 and the 2024 final dividend of 4.90p per share declared on 07 January 2025 with pay date 14 March 2025. | |
*** excludes 10,081,532 shares held in treasury. | |
**** The Company's ongoing charges are calculated as a percentage of average daily net assets and using management fee and all other operating expenses excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items for the year ended 31 October 2024. In addition, the Company's Manager has also agreed to cap ongoing charges by rebating a portion of the management fee to the extent that the Company's ongoing charges exceed 1.15% of average net assets. | |
Sector Analysis | Total assets (%) |
Banks | 10.6 |
Support Services | 7.4 |
Pharmaceuticals & Biotechnology | 7.4 |
General Retailers | 6.6 |
Financial Services | 6.2 |
Real Estate Investment Trusts | 6.2 |
Oil & Gas Producers | 5.5 |
Software & Computer Services | 5.3 |
Nonequity Investment Instruments | 5.0 |
Nonlife Insurance | 4.1 |
Mining | 3.9 |
Household Goods & Home Construction | 3.7 |
Aerospace & Defence | 3.5 |
Personal Goods | 3.4 |
Tobacco | 3.4 |
Travel & Leisure | 2.5 |
Industrial Engineering | 2.4 |
Life Insurance | 2.2 |
Media | 2.0 |
Food Producers | 1.6 |
Electronic & Electrical Equipment | 1.0 |
General Industrials | 1.0 |
Beverages | 0.6 |
Net Current Assets | 4.5 |
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Total | 100.0 |
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Country Analysis |
Percentage
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United Kingdom | 92.4 |
United States | 3.1 |
Net Current Assets | 4.5 |
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| 100.0 |
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Top 10 Holdings |
Fund %
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AstraZeneca | 6.8 |
RELX | 5.5 |
3i Group | 4.0 |
Shell | 4.0 |
Unilever | 3.6 |
British American Tobacco | 3.5 |
Lloyds Banking Group | 3.5 |
Standard Chartered | 3.5 |
London Stock Exchange Group | 2.8 |
Admiral Group | 2.8 |
Commenting on the markets, representing the Investment Manager noted:
Market Summary:
May was a strong month for global financial markets, marked by a rebound in risk sentiment and easing geopolitical tensions as investors priced out the likelihood of a global downturn.
The month opened with the Federal Reserve maintaining its policy rate, citing persistent uncertainty. Chair Powell reiterated a cautious stance stemming from the 'dual threat' of persistent inflation and rising unemployment data. U.S. Treasuries also came under pressure; a Moody's downgrade and concerns over the fiscal outlook pushed the 30-year yield to an intraday high of 5.15%.
In contrast, the Bank of England cut rates again, citing progress on domestic disinflation, with twelve-month CPI falling to 2.6% in March from 2.8% in February and a slowing of wage growth expected over the rest of the year. This also reflects the Bank's growing concern over the secondary impact of U.S. tariffs on UK export performance and broader financial stability, as they signalled further gradual cuts to come. However, optimism around monetary easing was short-lived as data revealed that inflation surprised to the upside in April, rising to 3.5% YoY-driven by regulated price hikes in water, gas and electricity alongside wage increases-marking the first time inflation exceeded 3% since March 2024. The UK was the weakest major performing equity market in the month, with the FTSE All-Share rising c.4.1%. Consumer staples, healthcare and utilities were notable laggards, and UK-listed pharmaceutical companies came under pressure following Trump's drug pricing reforms, which threaten revenue from U.S. sales.
Despite the macroeconomic noise, U.S. equities posted a solid monthly performance as equity markets surged, led by the U.S., where the S&P 500 posted a +6.3% gain-its best monthly performance since November 2023. The rally was driven by stronger-than-expected economic data, a de-escalation in U.S.-China trade tensions, and robust Q1 earnings, particularly from tech giants like Nvidia. The information technology and healthcare sectors outperformed, but the rally extended to cyclical sectors such as industrials and consumer discretionary.
Some notable headlines around tariff negotiations also boosted market sentiment, as markets welcomed a 90-day mutual tariff reduction between the U.S. and China, which helped lift U.S. equities by c.3% on the day. Additionally, the UK became the first country to secure a trade deal with the U.S., which retains key U.S. tariffs on UK goods but offers improved market access in some sectors. Toward month-end, a U.S. court ruling challenged the legality of Trump-era tariffs, sparking another rally in risk assets, though the decision is under appeal and the outcome remains uncertain.
Stock comment:
There were a number of detractors to performance for the month, including names that we are underweight or do not own such as Rolls-Royce and Glencore, that performed well. Rolls-Royce continues to benefit from the European aerospace and defence rally that started earlier this year, which was driven higher by escalating tensions between Russia and Ukraine, and expectations for the upcoming NATO summit in June.
3i Group was the top detractor to performance after an IT upgrade led to a temporary slowdown in like-for-like growth deceleration in their discount retail stores Action for the 2025 period so far. We believe this remains a competitively advantaged business with a long runway of growth.
RELX struggled as continued dollar weakness remains a headwind for revenues. There have been some concerns that US government scientists would be banned from publishing in the world's leading medical journals, which has led to weakness in the shares through the month. The company has a very small exposure to US Federally funded articles.
WH Smith shares rebounded strongly this month, recovering some of the losses from April's Liberation Day-driven selloffs. The company also benefitted from stronger-than-expected Europe to US passenger data as passengers rebounded to +12% in April, after a -17% decline in March. The upcoming exit from their High Street division in June also brings a cleaner equity story mid-term with higher growth and margins, which has been a tailwind to the shares through the month.
Howdens was a top contributor for the month, as the trading environment in the UK continues to improve; Topps Tiles saw trade sales +12%. The company also reported a trading update for the period to April, with the company noting that it has seen a positive start to the year.
Great Portland Estates delivered better than expected FY25 results with Management upgrading their guidance on accelerating rental growth. Management have upgraded their FY26 rent growth guidance to 4-7% and are ahead of target having deployed the capital they raised last year from the rights issue into high quality developments as they take advantage of a supply constrained market at a cyclical trough and committing at a 53% discount to replacement cost. With 40% of the book under development, the company is on track to deliver significant value in our opinion. The shares have recovered from the incredible 50% discount to NAV they hit a few months back, but at 35% discount they remain significantly undervalued if you believe like we do that NAV can grow meaningfully.
Changes:
During the month, we bought Bellway and reduced Taylor Wimpey given the stronger stock-specific story at Bellway. We believe Bellway will likely benefit from a modestly healthy housing and regulation backdrop through the year.
Outlook:
Having passed peak interest rates with stable labour markets and broadly stable macroeconomic conditions, equity markets have performed strongly through 2024. 2025 has started with a change of market leadership, with European and UK equity markets outperforming the US. The promise of greater fiscal spending in China and parts of Europe have served to buoy equity markets at a time when the US risk appetite appears to be retrenching with concerns on both on trade, tariffs and fiscal consolidation. The persistency of this change in market leadership will largely depend on whether 'predictability' returns to US policy, the volatility of which is causing corporates to continually reassess their strategies towards the world's largest economy.
Following a period of extended economic weakness, the Chinese Government has begun a more concerted campaign aimed at accelerating economic growth and arresting deflationary pressures. Recent policy moves have sought to improve and encourage lending into the real economy with a sizable fiscal easing programme announced. Whilst the scale of the easing is large, western markets and commentators have remained sceptical of its impact and effectiveness whilst awaiting evidence to the contrary. In the UK, the recent budget promised and delivered a large-scale borrowing and spending plan. Whilst sizable increases in minimum wage and public sector wage agreements likely support a brighter picture for the UK consumer, business confidence remains low impacting the growth outlook. UK labour markets remain resilient for now with low levels of unemployment while real wage growth is supportive of consumer demand albeit presents a challenge to corporate profit margins.
With the UK's election and budget now over, the market's attention will focus on the subsequent policy actions of the new US administration under Donald Trump. The global economy has benefited from the significant growth and deflation 'dividend' it has received from globalisation over the past decades. The impact of a more protectionist US approach and the potential implementation of tariffs may challenge this 'dividend'. Indeed, we anticipate more uncertainty given the announcements of significant federal budget cuts and a stricter immigration policy. We would anticipate asset markets to be wary of these policies until there is more clarity as we move through 2025. Conversely, we believe political certainty, now evident in the UK, will be helpful for the UK and address the UK's elevated risk premium that has persisted since the damaging Autumn budget of 2022. Whilst we do not position the portfolio for any election or geopolitical outcome, we are mindful of the potential volatility and the opportunities that may result, some of which have started to emerge.
The UK stock market continues to remain very depressed in valuation terms relative to other developed markets offering double-digit discounts across a range of valuation metrics. This valuation anomaly saw further reactions from UK corporates who continue to use their excess cashflows to fund buybacks contributing to a robust buyback yield of the UK market. Combining this with a dividend yield of 3.8% (FTSE All Share Index yield as at 31 March 2025; source: Bloomberg), the cash return of the UK market is attractive in absolute terms and higher than other developed markets. Although we anticipate further volatility ahead, we believe that risk appetite will return and opportunities are emerging. We have identified several potential opportunities with new positions initiated throughout the year in both UK domestic and midcap companies.
We continue to focus the portfolio on cash generative businesses that we believe offer durable, competitive advantages as we believe these companies are best placed to drive returns over the long term. Whilst we anticipate economic and market volatility will persist throughout the year, we are excited by the opportunities this will likely create; by seeking to identify the companies that strengthen their long-term prospects as well as attractive turnaround situations.
18 June 2025
ENDS
 Release |
