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 8.8% 14.0% 11.8% 22.5% 30.8% 138.3%
Net asset value 3.1% 10.2% 12.8% 23.1% 35.2% 137.1%
FTSE All-Share Total Return 2.4% 9.9% 15.4% 25.5% 37.3% 133.7%
Source: BlackRock
BlackRock took over the investment management of the Company with effect from
At month end
Sterling:
Net asset value - capital only: 219.86p Net asset value - cum income*: 224.50p Share price: 203.00p Total assets (including income): £49.2m Discount to cum-income NAV: 9.6% Gearing: 6.6% Net yield**: 3.6% Ordinary shares in issue***: 20,112,289 Gearing range (as a % of net assets): 0-20% Ongoing charges****: 1.28% * Includes net revenue of4.64 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 3.6% 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 . 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 (%) Support Services 13.0 Banks 10.0 Pharmaceuticals & Biotechnology 8.9 Financial Services 8.2 Oil & Gas Producers 7.0 Media 6.6Household Goods & Home Construction 6.1 Real Estate Investment Trusts 5.7 Mining 5.6 General Retailers 4.6 Travel & Leisure 3.2 Industrial Engineering 3.2 Personal Goods 3.1Nonlife Insurance 3.0 Food Producers 3.0 Life Insurance 2.3 Electronic & Electrical Equipment 1.6 Tobacco 1.3 Leisure Goods 1.0 General Industrials 0.5 Net Current Assets 2.1 ----- Total 100.0 ===== Country Analysis PercentageUnited Kingdom 94.0United States 2.5Switzerland 1.4 Net Current Assets 2.1 ----- 100.0 ===== Top 10 holdings Fund % AstraZeneca 7.5 RELX 5.2 Shell 4.9 Rio Tinto 4.4 3i Group 4.4 HSBC Holdings 4.0 London Stock Exchange Group 3.2 Unilever 3.1 Tate & Lyle 3.0 Segro 2.8
Commenting on the markets, representing the Investment Manager noted:
Market Summary:
In May, a rally in global equity markets was fuelled by declining inflation and growing investor optimism about the economic outlook.
The
The
In the
In the US, core Consumer Price Index (CPI) decelerated to 0.3% month on month in April, from 0.4% in March and in line with expectations; the S&P 500 and Nasdaq hit record highs as the
Stock comments:
During the month, Hays share price rallied, positioning it as a leading positive contributor to the portfolio's performance. Big Yellow's share price also contributed positively following robust financial results. The Company's strategic decision to increase development expenditure, after securing funding last year, aligns well with the improving trade conditions. Standard Chartered benefited from the upswing in the financial sector in addition to strong first quarter results.
Conversely, Mastercard's share price underwent a correction, retracting from its previous highs, which adversely affected the portfolio's relative performance. A new position for the portfolio, Inchcape, was another detractor despite solid results. Additionally, Hiscox's share price witnessed a decline after a period of strength.
Changes:
During the month, we started new positions in several holdings including Inchcape, Great Portland Estates, and Derwent London. In addition, we sold Smith & Nephew.
Following the recently announced sale of its
Following the Great Portland Estates (GPE) rights issue to raise £350m we have initiated a position in GPE and Derwent London (DLN); two central
To fund these new purchases and given the persistent operational challenges and subsequent consistent downgrades, we have sold Smith & Nephew. The significant restructuring within the company has adversely impacted its free cash flow, leading us to seek more advantageous investment opportunities within the
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.
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. Despite expectations for rate cuts moderating significantly, stock markets have continued to make progress in the developed world.
With the
The
We continue to focus the portfolio on cash generative businesses that we believe offer 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 seeking to identify the companies that strengthen their long-term prospects as well as attractive turnarounds situations.
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