Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 31 October and unaudited.

Performance at month end with net income reinvested

                                   One   Three    One   Three     Five
                                 month  months   year   years    Years

Sterling:

Share price                      -0.4%    2.2%   7.0%   24.1%   -13.8%
Net asset value                   1.7%    4.5%  12.0%   31.6%   -10.9%
FSTE All-Share Total Return       1.0%    4.4%   9.8%   29.8%     5.2%

Sources: BlackRock and Datastream

BlackRock took over the investment management of the Company with effect from 1
April 2012.

At month end

Sterling:

Net asset value - capital only:   145.06p
Net asset value - cum income*:    147.81p
Share price:                      137.00p
Total assets (including income):   £41.9m
Discount to cum-income NAV:          7.3%
Gearing:                             4.0%
Net yield:                           3.7%
Ordinary shares in issue**:    28,379,268

*includes net revenue of 2.75 pence per share
** excludes 4,554,664 shares held in treasury


Benchmark

Sector Analysis                         Total assets(%)

Oil & Gas Producers                               13.7
Banks                                             10.2
Pharmaceuticals & Biotechnology                    9.1
Mining                                             7.8
Tobacco                                            7.8
Media                                              6.5
Mobile Telecommunications                          5.6
General Retailers                                  4.7
Non Life Insurance                                 3.7
Life Insurance                                     3.7
Food Producers                                     3.2
Support Services                                   2.9
Gas, Water & Multiutilities                        2.6
Aerospace & Defense                                2.4
Equity Investment Instruments                      2.4
Financial Services                                 2.3
Electronic & Electrical Equipment                  2.1
Electricity                                        2.1
Non Equity Investment Instruments                  2.0
Real Estate Investment & Services                  1.8
Technology Hardware & Equipment                    1.4
Software & Computer Services                       1.4
Oil Equipment, Services & Distribution             1.0
Industrial Engineering                             0.9
Total of Equity                                  101.3
Net Current Liabilities                          (1.3)
                                                ------ 
Total                                            100.0
                                                ------


Ten Largest Equity Investments(in alphabetical order)

Company                              % of Total assets

Antofagasta                                        4.2
AstraZeneca                                        3.2
British American Tobacco                           5.3
GlaxoSmithKline                                    3.7
HSBC                                               7.9
Royal Dutch Shell B                                8.3
Tate & Lyle                                        3.3
Tullow Oil                                         4.4
UBM                                                3.8
Vodafone                                           5.9


Commenting on the markets, Nick McLeod-Clarke & Adam Avigdori, representing the
Investment Manager noted:

Markets

October was the fifth consecutive positive month for the UK equity market,
helped by better macroeconomic data from the US and elsewhere. A mix of
cyclicals and financials were the strongest contributors to performance but the
month was difficult for shares of companies with more defensive earnings, which
were amongst the most negative contributors to market returns. This was
particularly true for companies in the oil & gas, telecoms, pharma and tobacco
sectors.

Portfolio Performance

The portfolio outperformed the FTSE All-Share Index during October, returning
+1.7% compared to the index return of +1.0% over the month.

Amongst the top contributors to portfolio returns was Tate & Lyle, the supplier
of speciality ingredients to the food and beverages industries, which is
benefitting from the market's re-appraisal of the company's new management team
and its strategy. Shares of gaming software company Playtech continued to fare
well as the company announced the launch of a new framework designed to
integrate content and an improved user experience on mobile devices. CSR, the
technology company that provides multi-function semiconductor platforms,
announced third quarter results that were well ahead of market expectations.
The largest contributor to index-relative returns was BG Group, which is not
owned in the portfolio. BG's share price underperformed on concerns around the
delivery of demanding production targets. These fears were confirmed at the end
of October when BG announced that it expects no production growth in 2013 due
to production delays in a number of projects.

Amongst the detractors to portfolio returns was specialty pharmaceutical
company Shire, whose drugs portfolio includes treatments for hyperactivity and
rare diseases. Shire reported earnings for the third quarter that were lower
than the market's expectations, though it expects to meet its target for
double-digit earnings growth for the year. British Sky Broadcasting
underperformed as the market took a negative read across from a Scandinavian
Pay TV company's profit warning; however, we retain confidence in Sky's
communications strategy and dominant content position. Other detractors were
modest, with British American Tobacco shares moving lower with the rotation
away from companies with defensive earnings, and Severn Trent and Vodafone also
lagging as investors favoured cyclical companies.

Activity over the month saw us sell positions in Unilever and Sage Group, and
trim holdings of Vodafone, BHP Billiton and 3i Infrastructure. We added to the
holdings of British American Tobacco, Severn Trent and Tate & Lyle, whilst
initiating new positions in retailer Halfords, industrial turnaround specialist
Melrose and oil services company Wood Group.

Outlook

The macro environment remains stable but depressed, and a wide range of
outcomes are still possible. Interventions by the ECB, Federal Reserve and
Japanese Central Bank provided a great deal of liquidity, which may have
reduced downside risk in the short term but this needs to translate into growth
to be effective.

Overall, UK equity valuations still look attractive compared to those of most
other asset classes, with the prospect of high quality earnings and dividend
growth. We expect domestic consumption to remain under pressure and hence we
prefer to hold positions in companies with exposure to growth markets. The UK
equity market has considerable exposure to overseas earnings and provides many
good investment opportunities.

16 November 2012


  ND