Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 31 May 2015 and unaudited.

Performance at month end with net income reinvested

	One Month	Three Months	One Year	Three Years	Since 1 April 2012	Five Years
Sterling
Share price	2.1%	4.1%	17.3%	71.4%	62.2%	82.2%
Net asset value	2.5%	3.0%	16.6%	60.0%	50.0%	74.1%
FTSE All-Share Total Return	1.4%	2.7%	7.5%	52.2%	41.1%	68.6%
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:	190.10p
Net asset value - cum income*:	194.22p
Share price:	192.00p
Total assets (including income):	£52.9m
Discount to cum-income NAV:	1.1%
Net Gearing:	Nil
Net yield**:	3.0%
Ordinary shares in issue***:	26,229,268
Gearing range (as a % of net assets)	0-20%
Ongoing charges****:	1.2%

* includes net revenue of 4.12 pence per share

** based on an interim dividend of 2.20p per share and a final dividend of 3.50p per share in respect of the year ended 31 October 2014.

*** excludes 6,704,664 shares held in treasury

**** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 31 October 2014.

Benchmark
Sector Analysis	Total assets (%)
Banks	11.9
Support Services	9.1
Tobacco	8.3
Travel & Leisure	7.7
Pharmaceuticals & Biotechnology	7.6
Media	6.3
General Retailers	6.1
Oil & Gas Producers	6.1
Life Insurance	6.0
Financial Services	4.2
Non-Life Insurance	3.9
Mining	3.6
Electronic & Electrical Equipment	3.1
Food Producers	2.7
Beverages	2.3
Fixed Line Telecommunications	2.3
Household Goods & Home Construction	1.6
General Industrials	1.5
Industrial Engineering	1.5
Net Current Assets	4.2
Total	100.0

Ten Largest Equity Investments
Company	Total assets (%)
British American Tobacco	4.9
HSBC Group	4.9
AstraZeneca	4.6
Lloyds Banking Group	4.2
Rio Tinto	3.6
Reed Elsevier	3.5
Next	3.5
BP	3.4
Imperial Tobacco Group	3.4
Legal & General	3.1

Commenting on the markets, Adam Avigdori and Mark Wharrier representing the Investment Manager noted:

The Company returned 2.5% in May 2015, compared to the FTSE All-Share Index return of 1.4%.

The UK stock market reacted positively to the surprise of a majority Conservative win in the General Election. Notably markets were driven by a re-rating of UK domestic stocks as the Conservative result was taken to imply stability and continuity in policy, with a lower risk of anti-business politics. Within the portfolio the biggest contributor to performance came from our holding in Berkeley Group as uncertainty around Labour’s mansion tax and land bank tax was removed. Stagecoach, which we purchased pre-election, rallied as concerns over bus and rail regulation dissipated following the Conservative win. Lloyds Banking Group, which reported strong results, showing strong underlying profits, a strengthening balance sheet and income growth. Rentokil performed well during the month after issuing a positive trading update with the increase in revenue during the first quarter of 2015 driven by good performance in the UK, North America and Latin America.

The biggest detractor to relative performance over the month came from not holding Vodafone as the shares rallied on the news of a possible tie up with Liberty Global. The zero weighting in utilities detracted as the sector rose after the majority Conservative election result reduced the risk of price freezes in the sector.

Activity over the month included opening a new position in IMI whilst adding to our holdings in Barclays, Legal & General Group and Pearson. We reduced our positions in GlaxoSmithKline, Imperial Tobacco Group and Roche and sold our holding in Compass Group.

Eurozone economic activity is showing signs of improvement as the European Central Bank starts quantitative easing, whilst in the US the ending of quantitative easing is contributing to uncertainty. We continue to focus on the specific drivers of individual companies and the ability to determine their future rather than relying on a specific macro outcome. Given the outlook for both economic growth and interest rates remains uncertain, we seek those companies that can drive returns through self-help and have a clear strategy to deploy the cashflow they generate. The portfolio is primarily invested in high free cash flow companies that can sustain cash generation and pay a growing dividend yield, but also has exposure to companies with sustainable growth franchises and turnaround situations.

19 June 2015