BlackRock Income and Growth Investment Trust Plc - Portfolio Update
The information contained in this release was correct as at 31 March 2024 . 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 .
All information is at
Performance at month end with net income reinvested
Since One Three One Three Five 1 April Month Months Year Years Years 2012 Sterling Share price 2.8% 0.5% -1.3% 20.2% 19.9% 114.8% Net asset value 4.8% 1.2% 7.1% 24.0% 29.3% 125.6% FTSE All-Share Total Return 4.8% 3.6% 8.4% 26.1% 30.3% 122.7% Source: BlackRock
BlackRock took over the investment management of the Company with effect from
At month end
Sterling:
Net asset value - capital only: 210.61p Net asset value - cum income*: 213.64p Share price: 183.00p Total assets (including income): £47.3m Discount to cum-income NAV: 14.3% Gearing: 7.0% Net yield**: 4.0% Ordinary shares in issue***: 20,258,536 Gearing range (as a % of net assets): 0-20% Ongoing charges****: 1.28% * Includes net revenue of3.03 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 4.0% and includes the 2023 Interim Dividend of 2.60p per share declared on21 June 2023 with pay date1 September 2023 , and the 2023 final dividend of 4.80p per share declared on21 December 2023 with pay date15 March 2024 . *** 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 ended31 October 2023 .
Sector Analysis Total assets (%) Support Services 10.8 Banks 9.7 Oil & Gas Producers 8.6 Pharmaceuticals & Biotechnology 8.5 Financial Services 8.5 Media 7.2 Mining 6.2Household Goods & Home Construction 6.2 General Retailers 4.7 Real Estate Investment Trusts 4.1Nonlife Insurance 3.5 Life Insurance 3.4 Personal Goods 3.0 Food Producers 2.8 Industrial Engineering 2.7 Travel & Leisure 2.4 Tobacco 1.7 Electronic & Electrical Equipment 1.5 Health Care Equipment & Services 1.4 Leisure Goods 1.0 Net Current Assets 2.1 ----- Total 100.0 ===== Country Analysis PercentageUnited Kingdom 93.6United States 2.8Switzerland 1.6 Net Current Assets 2.0 ----- 100.0 ===== Top 10 holdings Fund % Shell 6.9 AstraZeneca 6.9 RELX 5.4 Rio Tinto 5.2 3i Group 4.8 HSBC Holdings 3.8 Phoenix Group 3.4 Unilever 3.0 Segro 2.9 Mastercard 2.8
Commenting on the markets, representing the Investment Manager noted:
Performance Overview:
The portfolio had returned by 4.83% during the month net of fees, performing broadly in-line with the FTSE All-Share which returned by 4.75%.
Market Summary:
Global equity markets nudged higher in March as the dovish backdrop set up by the world's major central banks helped boost risk sentiment.
In the US, the
In the
In the
The FTSE All Share rose 4.75% with Basic Materials, Oil & Gas and Financials as the top performing sectors.
Stock comments
Shares in
3i's annual update on the performance of Action, the European discount retailer, provided welcome news on both current trading and its future prospects. Volume growth continues to exceed expectations as customers benefit from reinvestment in prices and as the group continues to open stores in existing and new countries. Margins remain robust and the group is able both to sustain strong like-for-likes and growing dividends to its shareholders.
Next produced strong financial results and underpinned confidence in the year ahead with the structural challenges of recent years now beginning to fade. The Retail channel has become less of a headwind as competitors have closed stores; Online continues to grow with recent investments in capacity and capabilities offering opportunities to expand margins.
Changes
During the period, we purchased a new holding in Weir Group. This is mining equipment supplier with a well-established installed base which generates significant aftermarket revenue and profit. The outlook for mining capex looks reasonable, especially in their key commodities (copper, gold, iron ore) which should allow OE orders to improve from a low base. Attractive free-cash-flow generation and modest valuation (15x P/E FY1 - significant discount to Epiroc, in-line with Metso) with a robust balance sheet offers a very attractive risk reward if the company is able to deliver on mid-to-high single-digit growth and 20% margin.
Our investment case for Watches of
Outlook
Equity markets entered 2024 in a buoyant mood following a strong and broad rally in the latter part of 2023. The outlook, and optimism, is a far cry from 12 months ago, when supply chains were hugely disrupted, and inflation was double digit and well ahead of central banks' targets prompting rapid and substantial interest rates hikes despite an uncertain demand environment. Despite this, equities had one of their best years on record outperforming bonds with double digit increases, in dollar terms, across most of the developed world and some emerging markets. In the US, the Nasdaq was the standout rising 54% driven by the largest seven companies that rebounded strongly (+c.70%) after a poor 2022, when they had fallen by 39% as a group. The FTSE All Share returned by 7.9% in 2023.
As we pass the first quarter of 2024, markets have shifted to `goldilocks' territory whereby slowing inflation has signalled the peak for interest rates while broad macroeconomic indicators that have been weak are not expected to deteriorate further. This is also helpful for the cost and availability of credit which has recently improved having been deteriorating through most of 2023. During December, bond markets had begun to price in 130bps of easing in the US and a not dissimilar amount in the
Notably in 2024, geopolitics will play a more significant role in asset markets. This year will see the biggest election year in history with more than 60 countries representing over half of the world's population, c.4 billion people, going to the polls. While most, such as the
As we have commented several times before, the
We continue to focus the portfolio on cash generative businesses with 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 identifying the companies that strengthen their long-term prospects as well as attractive turnarounds situations.
1
Source:
2
Source:
3
Source: