BlackRock Income and Growth Investment Trust Plc - Portfolio Update
The information contained in this release was correct as 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 1.9% 2.7% 1.7% 13.8% 14.4% 118.9% Net asset value 1.9% 5.9% 4.9% 20.6% 27.9% 130.0% FTSE All-Share Total Return 2.5% 7.5% 7.5% 23.9% 30.1% 128.2% Source: BlackRock
BlackRock took over the investment management of the Company with effect from
At month end
Sterling:
Net asset value - capital only: 213.77p Net asset value - cum income*: 217.79p Share price: 186.50p Total assets (including income): £47.8m Discount to cum-income NAV: 14.4% Gearing: 5.5% Net yield**: 4.0% Ordinary shares in issue***: 20,115,258 Gearing range (as a % of net assets): 0-20% Ongoing charges****: 1.28% * Includes net revenue of4.02 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 (%) Banks 10.3 Support Services 10.2 Pharmaceuticals & Biotechnology 9.2 Oil & Gas Producers 9.0 Financial Services 8.4 Media 6.7 Mining 6.1Household Goods & Home Construction 5.9 General Retailers 4.2 Real Estate Investment Trusts 3.8Nonlife Insurance 3.3 Travel & Leisure 3.2 Personal Goods 3.1 Food Producers 2.9 Industrial Engineering 2.6 Life Insurance 2.3 Tobacco 1.6 Electronic & Electrical Equipment 1.5 Health Care Equipment & Services 1.3 Leisure Goods 1.0 General Industrials 0.1 Net Current Assets 3.3 ----- Total 100.0 ===== Country Analysis PercentageUnited Kingdom 92.7United States 2.6Switzerland 1.4 Net Current Assets 3.3 ----- 100.0 ===== Top 10 holdings Fund % AstraZeneca 7.7 Shell 7.5 RELX 5.2 Rio Tinto 4.8 3i Group 4.6 HSBC Holdings 4.2 Unilever 3.1 Tate & Lyle 2.9 Segro 2.7 Reckitt 2.7
Commenting on the markets, representing the Investment Manager noted:
Performance Overview:
The Company returned 1.9% during the month net of fees, underperforming the FTSE All-Share which returned 2.5%.
Market Summary:
Global equity markets fell in April, however,
The
The healthcare and consumer staples sectors, which are significant dollar earners, also contributed to the
US equities fell over the month of April as sticky inflation dampened hopes of near-term interest rate cuts from the
The
The FTSE All Share had rose by 2.5% during April with Basic Materials, Oil & Gas and Health Care as the top performing sectors.
Stock comments:
WH Smith was the top detractor during the period as progress in their US division disappointed though we believe that this is temporary and that there is still significant growth on offer in the region.
Rio Tinto rose reflecting the rebound in iron ore prices. NatWest rose following a robust trading update that highlighted the resilience of its Net Interest Income as headwinds from higher deposit costs fade. Tate & Lyle performed strongly during the month, although there was limited company specific newsflow during the month.
Changes:
During the month, we started a new position in Anglo American. We view BHP's bid for Anglo American as the beginning of a process which will result in a materially higher price when the deal is ultimately done. The approach from BHP highlights the importance and value of copper assets, a theme we also have exposure to through Weir, whose products and services support the mining industry.
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 by 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 had 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.
4 https://www.reuters.com/markets/rates-bonds/ecb-rate-cut-case-getting-stronger-says-chief-economist-lane-2024-05-06/#:~:text=The%20ECB%20has%20all%20but,jobs%20data%20late%20last%20week.
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