REG-BlackRock Income and Growth Investment Trust Plc: Portfolio Update

Blackrock Income and Growth Investment TrustAnnouncement

Today 10:45

The information contained in this release was correct as at 31 March 2026.
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 March 2026          
                     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                                                                                                                   
 Share price                  -4.3%        2.7%            16.7%       28.1%          55.9%         178.7%                  
 Net asset value              -9.3%        -1.1%           12.2%       29.9%          50.4%         173.7%                  
 FTSE All-Share Total Return  -6.7%        2.4%            21.5%       45.6%          69.3%         199.0%                  
                                                                                                                            
 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:        240.22p     
 Net asset value - cum income*:         243.20p     
 Share price:                           221.00p     
 Total assets (including income):       £51.4m      
 Discount to cum-income NAV:            9.1%        
 Gearing:                               4.2%        
 Net yield**:                           3.5%        
 Ordinary shares in issue***:           18,654,568  
 Gearing range (as a % of net assets):  0-20%       
 Ongoing charges****:                   1.15%       
 *  Includes net revenue of 2.98  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 3.3% and includes the 2025 final dividend of 5.00p per share declared on 28 January 2026 with pay date 20 March 2026 and the Interim Dividend of 2.70p per share declared on 19 June 2025 with pay date 02 September 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 2025.  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                                12.9              
 Pharmaceuticals & Biotechnology      10.8              
 Oil & Gas Producers                  8.9               
 Support Services                     5.1               
 Household Goods & Home Construction  5.0               
 General Retailers                    5.0               
 Mining                               4.6               
 Aerospace & Defence                  4.4               
 Tobacco                              4.2               
 Electronic & Electrical Equipment    3.4               
 Software & Computer Services         3.1               
 Nonlife Insurance                    2.9               
 General Industrials                  2.9               
 Electricity                          2.6               
 Financial Services                   2.6               
 Life Insurance                       2.6               
 Industrial Engineering               2.4               
 Real Estate Investment Trusts        2.4               
 Food & Drug Retailers                2.4               
 Personal Goods                       2.2               
 Food Producers                       1.6               
 Net Current Assets                   8.0               
                                      -----             
 Total                                100.0             
                                      =====             
 Country Analysis                     Percentage        
 United Kingdom                       88.0              
 United States                        4.0               
 Net Current Assets                   8.0               
                                      -----             
                                      100.0             
                                      =====             
                                                        
 Top 10 Holdings                      Fund %            
 AstraZeneca                          8.8               
 Shell                                6.0               
 HSBC                                 4.3               
 British American Tobacco             4.2               
 Lloyds Banking Group                 4.1               
 Standard Chartered                   3.9               
 Reckitt Benckiser Group              3.9               
 Rolls-Royce Holdings                 3.2               
 RELX                                 3.1               
 BP Group                             2.9               
                                                        

 

Commenting on the markets, representing the Investment Manager noted:

 

Market summary:

Global equity markets came under pressure in March, driven primarily by an
energy shock rather than a deterioration in corporate fundamentals. Escalating
conflict in the Middle East pushed oil prices sharply higher, raising
inflation concerns and complicating the growth outlook. Markets responded by
de          -          rating valuations as discount rates rose and
uncertainty increased, rather than repricing earnings expectations. Despite
the scale of the shock, headline equity performance proved relatively
resilient, reflecting sound underlying fundamentals.

 

The macro backdrop grew more challenging as central banks struck a firmer
tone, and rate          -          cut expectations were pushed out. Financial
conditions tightened, the U.S. dollar strengthened and inflation risks
returned to the forefront. While economic data continued to point to expansion
rather than recession, concerns grew that these indicators lag the evolving
geopolitical backdrop. Within equities, the U.S. was comparatively resilient,
energy outperformed and leadership rotated away from crowded momentum trades.
Elsewhere, regions more exposed to imported energy - particularly parts of
Europe and Asia - came under greater pressure, while commodity          -     
    linked emerging markets proved more resilient. Commodities sat at the
centre of market dynamics, with oil driving the shock and traditional hedges
such as gold offering less protection late in the month.

 

In the UK, equities came under pressure during March as global risk sentiment
deteriorated sharply. Markets were dominated by the escalation of conflict in
the Middle East, which drove a surge in energy prices and reignited inflation
concerns, prompting investors to reassess the outlook for interest rates.
Sector performance was highly polarised, with energy stocks significantly
outperforming on higher oil and gas prices, while rate          -         
sensitive areas such as consumer discretionary, real estate and UK mid-caps
lagged. The Bank of England held Bank Rates at 3.75%, adopting a cautious tone
as higher energy costs threatened to keep inflation above target for longer.
As a result, expectations for near          -          term rate cuts were
pushed further out.

 

Source:                                 
https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2026/march-2026

 

Stock comments:

3i Group                     detracted from performance as the shares fell
sharply at the end of the quarter due to a disappointing Capital Markets
update. France like-for-like sales that had shown signs of stabilisation
weakened again in February and March leading to a more cautious guide for the
full year while the highly anticipated US entry underwhelmed. We believe that
the US opportunity offers exciting optionality while Action in Europe should
still grow mid-teens, yet the shares now trade on a large discount to the
group's net asset value.

 

Reckitt Benckiser                     detracted as the shares gave back
earlier gains, having benefited at the start of the year from a shift by
investors towards simpler, defensive businesses amid broader market
uncertainty. Sentiment weakened following a cautious company update, where a
modest earnings downgrade driven by a slightly higher tax assumption
overshadowed otherwise stable underlying operations. This, combined with
ongoing investor caution around the pace of volume recovery in Hygiene and
Nutrition, weighed on the shares during the month, despite the company's
defensive characteristics remaining intact.

 

Weir Group                     also detracted from relative returns during the
month, as the shares pulled back following a strong run earlier in the year.
Sentiment weakened on concerns around the timing of mining capital expenditure
and potential delays to customer investment decisions, particularly in a more
uncertain macro and geopolitical environment. While underlying demand drivers
linked to energy transition and mine efficiency remain intact, near          -
         term caution from investors weighed on the share price over the
period.

 

An underweight position in                      Unilever                    
contributed as the shares lagged the market during the month. Investor caution
around consumer demand persisted, particularly in the context of higher prices
and pressure on household budgets. Sentiment was further weighed down late in
March following the announcement of the proposed combination of Unilever's
Foods division with McCormick, with the scale and structure of the transaction
prompting near-term concerns around execution risk and capital allocation,
reinforcing the stock's relative underperformance and supported our
underweight positioning.

 

Rentokil                     contributed to relative performance as the shares
proved resilient, supported by steady trading and continued confidence in
margin recovery as integration benefits from recent acquisitions feed through.
This was helped by the release of full-year results early in the month, which
highlighted solid cash generation and gradual improvement in North America,
and a smooth transition to a new CEO in mid-March.

 

Changes:

Given the price volatility over the month caused by both idiosyncratic and
geopolitical factors, we made changes to the fund taking advantage of the
price dislocation, focusing on where we have greatest conviction while
recognising where our theses had changed and, as per our sell discipline,
necessitated sales.

 

We added to our position in                      British American Tobacco     
               following recent share price weakness and after a company
meeting. The holding enhances portfolio yield and capital growth potential,
underpinned by a stock          -          specific investment case that is
relatively uncorrelated to the broader economic cycle. We also added to       
              3i Group                     following recent weakness,
reflecting increased confidence in the cost profile and execution of Action's
US expansion plans, while pricing actions and recent competitor exits support
an improving outlook for France.

 

We exited                      ICG                     given the growing
headwinds facing private credit, which are likely to be exacerbated by the
conflict with Iran and its impact on confidence. Even in a scenario of
de-escalation, we see limited scope for a near term rebound, with concerns
around private credit likely to continue to weigh on the sector. We exited our
position in                      Ashmore                     after recent
share price appreciation, choosing to realise gains and redeploy capital
elsewhere.

 

We made two sales for stock specific reasons selling Melrose and Tate & Lyle.
We sold                      Melrose                     after a weak set of
results, with underlying cash generation materially weaker than expected once
one-off items are adjusted for, raising concerns around the quality of future
cash flows. Finally, we exited                      Tate & Lyle               
     as execution continues to disappoint following another unexpected cut to
2027 guidance; against an uncertain backdrop and the risk of higher inflation,
we expect earnings to remain under pressure.

 

Outlook:

The immediate outlook for the global economy, particularly for 2026, will
largely be shaped by the duration of the war in Iran and the cost of energy, a
function of what happens with the Strait of Hormuz and the severity of the
damage to local energy and refinery facilities.                      With
energy prices rising significantly, there are likely to be negative growth
impacts and inflationary pressures, notably for those economies which are net
importers of energy including parts of Asia, Europe and the UK, whilst the US
is more insulated given its domestic resources.                      The
scale of these impacts is linked to the duration of the conflict. The outlook
for inflation will impact the path for rates with the rate cutting cycle in
the developed world at risk.                      The wide range of outcomes
and President Trump's unpredictable policy stance suggests volatility across
equity and bond markets will stay elevated. Against this backdrop, we continue
to favour companies with well invested foundations, durable competitive
advantages and pricing power, while looking for opportunities created by
heightened market swings.

 

In the UK and Europe, the spectre of an energy shock has reared its head once
again and exacerbated weak fiscal backdrops and low consumer and business
confidence. In the UK, the impact has been most evident in the path for
interest rates, ending the quarter with the bond markets pricing three rate
hikes having entered the 2026 pricing in two cuts. With a domestic backdrop
that had showed signs of stabilisation in confidence and activity, this is
clearly an unhelpful backdrop ahead of the May local elections which may
precipitate further political unrest. In Europe, Germany's fiscal push,
centered on defence and infrastructure, had boosted economic momentum but it
remains unclear whether this will be sustained. In the US, gasoline price
rises are likely to contribute to inflation and weigh on consumer sentiment
though the overall economic impact should be limited given domestic energy
supply and a resilient economic outlook supported by a significant capital
expenditure. Meanwhile, China's sensitivity to rising energy prices is
mitigated by significant stockpiles and the substantial investment in
renewables made in recent years. However, domestic demand remains subdued,
with recent US trade tariff announcements adding to the uncertainty.

 

Notwithstanding the uncertainty in the UK, this energy shock is somewhat
different to 2022, with rates being substantially higher and domestic
valuations, notably amongst rate sensitives being lower. With relatively
strong balance sheets amongst our portfolio companies, we would anticipate
further buybacks and continued inbound M&A. While volatility is expected to
persist, we believe risk appetite will return and opportunities are emerging.

 

Cash-generative businesses with enduring competitive advantages continue to be
a priority, and we are confident they are best positioned to deliver long-term
returns. While volatility is likely to persist, the opportunities it presents
are encouraging - both in resilient growth stories and compelling turnaround
cases.

 

 

20 April 2026

 

 

 Release  (https://mb.cision.com/Main/22401/4337053/4045770.pdf)  



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