BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC
BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC
All information is at 31 December 2015 and unaudited.
Performance at month end with net income reinvested
One Three One Three Since Five
Month Months Year Years 1 April Years
2012
Sterling
Share 0.3% 6.8% 10.0% 46.4% 60.3% 52.6%
price
Net asset -0.9% 6.3% 10.0% 39.5% 48.4% 50.9%
value
FTSE All-Share Total -1.3% 4.0% 1.0% 23.4% 30.6% 33.8%
Return
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: 184.94p
Net asset value - cum income*: 189.74p
Share price: 187.25p
Total assets (including income): £51.8m
Discount to cum-income NAV: 1.3%
Net Cash: 1.4%
Net yield**: 3.2%
Ordinary shares in issue***: 26,229,268
Gearing range (as a % of net assets) 0-20%
Ongoing charges****: 1.2%
* includes net revenue of 4.80 pence per share
** based on an interim dividend of 2.40p per share in respect of the year
ended 31 October 2015 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 (%)
Banks 12.1
Support Services 9.1
Travel & Leisure 8.7
Pharmaceuticals & Biotechnology 7.8
Tobacco 7.6
Life Insurance 7.2
Media 7.0
Financial Services 6.2
Oil & Gas Producers 6.0
Fixed Line Telecommunication 4.1
Non Life Insurance 4.0
Food Producers 3.4
General Retailers 3.1
Mining 2.6
Technology & Hardware Equipment 1.7
Industrial Engineering 1.4
General Industrials 1.1
Software & Computer Services 1.1
Real Estate Investment Trusts 0.6
Net Current Assets 5.2
Total 100.0
Ten Largest Equity Investments
Company Total assets (%)
British American Tobacco 5.4
AstraZeneca 5.4
HSBC Holdings 4.8
Lloyds Banking Group 4.7
RELX 4.3
BT Group 4.1
Wolseley 3.8
Aviva 3.6
Legal & General Group 3.6
Unilever 3.5
Commenting on the markets, Adam Avigdori and Mark Wharrier representing the
Investment Manager noted:
The Company's NAV rose by 6.3%* in the final quarter of 2015, outperforming
its benchmark, the FTSE All Share Index, which returned 4.0%.
Over the calendar year, the NAV has produced a positive return of 10.0%*,
significantly outperforming the FTSE All Share which has risen by 1.0%.
UK equities rebounded from the weakness seen in the autumn, however commodity
prices and resources equities continued to fall. In December the US Federal
Reserve finally lifted US interest rates by 0.25% - a much trailed event and
one which was seen as a positive reflection of the strong US economy.
Commodity prices continued to fall. Key commodities oil and iron ore have now
more than halved involve in the past year. During this quarter weakness in
demand appeared to move to industrial companies, with profit warnings coming
in particular from US companies affected by the strong US dollar and weaker
emerging market growth.
The portfolio produced strong positive outperformance from a mixture of
holdings from all three of its strategies. The largest contributor to
performance came from our holding in Softcat following its recent IPO. Shares
in BT Group rose as regulatory fears eased and John Laing, the infrastructure
fund manager, performed strongly as a technical overhang of shares began to
fall. Other contributors outperformance came from holdings in Carnival,
Aviva, Legal & General Group, AstraZeneca and Dixons Carphone.
The largest detractor from relative performance came from our holding in
Stagecoach, which fell after the company downgraded its full year earnings
forecasts, as there was a slowdown in travel to big cities following the
attacks in Paris in November. Our holding in Rio Tinto also detracted,
falling with the other names in the sector, however, our underweight position
in the mining sector continued to add value.
We opened new positions in John Laing, Provident Financial and Softcat, a
leading provider of IT infrastructure, and added to our current holdings in
Intercontinental Hotels Group, Lloyds Banking Group and Unilever. We have
reduced our holding in Next, Imperial Tobacco Group and Carnival and sold
positions in BHP Billiton, IMI, Pearson and Worldpay.
We continue to focus on the specific drivers of individual companies and the
ability to determine their future rather than relying on a specific macro
outcome. 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.
18 January 2016
Blackrock Income & Growth Invt : AND GROWTH INVESTMENT TRUST PLC - Portfolio Update
January 18, 2016 at 08:19 pm IST
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© PRNewswire - 2016
