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

Blackrock Income and Growth Investment TrustAnnouncement

Wed 11:15

The information contained in this release was correct as at 30 April 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                                  30 April 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                  5.9%         4.0%            22.3%       37.1%          53.4%         195.1%                  
 Net asset value              3.2%         -1.5%           16.3%       28.7%          48.1%         182.4%                  
 FTSE All-Share Total Return  2.8%         2.1%            25.2%       44.7%          66.9%         207.2%                  
                                                                                                                            
 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:        246.70p     
 Net asset value - cum income*:         250.89p     
 Share price:                           234.00p     
 Total assets (including income):       £52.7m      
 Discount to cum-income NAV:            6.7%        
 Gearing:                               3.8%        
 Net yield**:                           3.3%        
 Ordinary shares in issue***:           18,624,568  
 Gearing range (as a % of net assets):  0-20%       
 Ongoing charges****:                   1.15%       
 *  Includes net revenue of 4.19  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                                14.6              
 Pharmaceuticals & Biotechnology      10.0              
 Oil & Gas Producers                  7.7               
 Household Goods & Home Construction  5.6               
 General Retailers                    5.4               
 Support Services                     5.0               
 Mining                               4.9               
 Tobacco                              4.7               
 Electronic & Electrical Equipment    4.3               
 Aerospace & Defence                  3.8               
 Software & Computer Services         3.3               
 General Industrials                  3.0               
 Nonlife Insurance                    2.9               
 Life Insurance                       2.8               
 Financial Services                   2.7               
 Food & Drug Retailers                2.4               
 Industrial Engineering               2.2               
 Real Estate Investment Trusts        1.8               
 Food Producers                       1.6               
 Personal Goods                       1.6               
 Electricity                          0.9               
 Construction & Materials             0.8               
 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                          8.1               
 Shell                                5.6               
 British American Tobacco             4.7               
 HSBC                                 4.6               
 Standard Chartered                   4.5               
 Lloyds Banking Group                 4.3               
 Reckitt Benckiser Group              3.5               
 RELX                                 3.3               
 Phoenix Group                        2.8               
 Next                                 2.7               
                                                        
                                                        
                                                        

Commenting on the markets, representing the Investment Manager noted:

 

Market Summary

Global markets remained volatile in April, extending themes from March as
macro uncertainty, geopolitics and shifting policy expectations drove
outcomes. Despite fragile sentiment and sharp moves across energy, rates and
currencies, equities rebounded strongly, with the S&P 500 delivering one of
its best Aprils.

 

From a macro perspective, the month was defined by an energy-driven inflation
shock rather than weakening demand. Oil prices were volatile but remained
elevated, feeding into inflation expectations and complicating the policy
outlook. The Federal Reserve held rates steady and struck a cautious tone,
while bond yields rose to multi-year highs and currency markets remained
unsettled.

 

U.S. equities were resilient, with the S&P 500 rising over 10%, supported by
strong earnings, a stable labour market and continued investment, particularly
in AI-related areas. Technology led gains, while the broader market recovered
despite earlier pressure from higher yields. European equities rebounded but
lagged the U.S., reflecting greater exposure to higher energy costs and softer
economic momentum. Performance was uneven, with banks and energy outperforming
while more consumer-sensitive sectors remained under pressure. UK equities
also recovered in April despite headwinds from higher energy costs and
inflation concerns which weighed on confidence. Performance was
differentiated, with energy and financials outperforming, while more domestic
and consumer          -          exposed sectors remained under pressure.

 

Emerging markets outperformed, rebounding sharply after March's weakness.
Gains were led by technology-linked markets in Asia, though performance
remained uneven as higher oil prices and currency volatility weighed on some
economies.

 

Oil prices were highly volatile amid geopolitical tensions, ending the month
elevated, while broader commodity performance was mixed.

 

Stock comments

Standard Chartered contributed positively to relative performance following a
rebound from a market-driven pullback in March and supported by a strong first
         -          quarter beat. The strong results were driven by robust
growth across their Wealth, Global Banking and Markets divisions more than
offsetting a tougher interest          -          rate backdrop. Disciplined
cost control supported profitability, while higher impairments reflected
management caution rather than any underlying credit stress. An underweight
position in HSBC detracted from relative performance as the shares also
rebounded from March lows though results, reported in May, disappointed as
impairments and costs exceeded expectations. We continue to prefer Standard
Chartered, supported by stronger operational momentum and earnings delivery.

 

Standard Life contributed to relative returns over the period following the
announcement of its £2bn acquisition of AEGON, which will significantly
increase scale and position the group as the second          -         
largest UK workplace and retail savings provider. The deal strategically
shifts around 60% of the business toward a lower          -          capital,
fee          -          based model and is expected to deliver cost and
capital benefits over time, although these are weighted to the later years of
the decade. Management's strong execution record provides confidence in the
acquisition.

 

Oxford Instruments contributed to relative returns as the shares were
supported by a reassuring trading update, with continued steady growth in
Industrial Automation alongside very strong momentum in Advanced Technologies.
Importantly, the company secured a large data          -         
centre-related order late in the year that materially underpins revenues into
2027 and partly 2028, improving visibility and confidence. Overall, the update
was encouraging and reinforced the investment case, helping support sentiment
around the stock.

 

Reckitt Benckiser detracted from performance after a weak update reinforced
concerns around uneven regional growth, particularly in Europe. While full    
     -          year organic growth guidance was held, profits are
increasingly back          -          end loaded, heightening reliance on a
strong H2 driven by seasonal products and the Mucinex launch. Despite
depressed valuations, strong brands and longer          -          term
optionality from a potential Mead Johnson settlement, limited near          - 
        term catalysts and execution risks continue to weigh on investor
confidence.

 

Weir Group also detracted from relative returns during the month. A
disappointing trading update and earlier-than-expected CEO succession weighed
on the shares despite management reiterating its full-year guidance.         
            The outlook for mining capital expenditure remains encouraging
however the timing for this to flow through to Weir remains unclear.

 

Portfolio Changes

We initiated a new position in Berkeley Group, a leading UK residential
property developer focused on large-scale, mixed-use urban regeneration
projects. Following a challenging market backdrop, the company has outlined a
more disciplined strategy, moderating volume ambitions and reducing land
investment, which lowers medium-term profit expectations but supports strong
cash generation and leaves net asset value largely unaffected. In our view,
Berkeley offers an attractive shareholder return profile, with the potential
to return a substantial proportion of its market capitalisation through
dividends and share buybacks over the coming years, while maintaining a strong
net cash position and a high-quality operating platform, including its
Build-to-Rent portfolio.

 

We also started a new position in United Utilities, a FTSE 100-listed UK water
utility providing regulated water and wastewater services across the
North-West of England, with infrastructure assets that are essential to
households and businesses. In our view, the company is well positioned as it
undertakes a significant investment programme under a new regulatory
framework, supporting growth in its regulated asset base while enhancing
environmental protection and network resilience. United Utilities also plays
an important role in supporting the UK's growth agenda by enabling housing
development, business activity and broader industrial ambitions through the
provision of critical infrastructure. This position was funded through the
sale of Segro, reflecting our view that its investment case has become
increasingly challenged by the prevailing interest rate environment and UK
political backdrop.

 

We have also trimmed exposure to Oils and SSE, following recent share price
strength, reallocating capital into Babcock, Berkeley Group, Next and Howdens,
where we have strong medium          -          term conviction and view
recent volatility as an attractive entry point.

 

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,
centred 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 May 2026

 

 

 Release  (https://mb.cision.com/Main/22401/4350904/4103805.pdf)  



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