Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 30 June 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	-3.4%	0.0%	14.4%	59.1%	56.7%	78.9%
Net asset value	-4.3%	-0.8%	11.9%	45.7%	43.5%	76.1%
FTSE All-Share Total Return	-5.7%	-1.6%	2.6%	36.9%	33.3%	66.6%
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:	181.65p
Net asset value - cum income*:	185.84p
Share price:	185.50p
Total assets (including income):	£50.7m
Discount to cum-income NAV:	0.2%
Net Gearing:	Nil
Net yield**:	3.2%
Ordinary shares in issue***:	26,229,268
Gearing range (as a % of net assets)	0-20%
Ongoing charges****:	1.2%

* includes net revenue of 4.19 pence per share

** based on an interim dividend of 2.40p per share in respect of the year ending 31 October 2015 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	9.6
Tobacco	8.1
Travel & Leisure	7.9
Media	7.3
Pharmaceuticals & Biotechnology	7.2
General Retailers	6.6
Life Insurance	6.4
Oil & Gas Producers	6.2
Mining	4.5
Financial Services	4.2
Non Life Insurance	3.3
Food Producers	2.6
Fixed Line Telecommunications	2.6
Household Goods & Home Construction	1.8
General Industrials	1.7
Industrial Engineering	1.6
Electronic & Electrical Equipment	1.1
Net Current Assets	5.4
Total	100.0

Ten Largest Equity Investments
Company	Total assets (%)
British American Tobacco	4.9
HSBC Holdings	4.8
AstraZeneca	4.4
Lloyds Banking Group	4.2
Reed Elsevier	3.7
Next	3.6
Rio Tinto	3.4
Carnival	3.3
BP Group	3.3
Legal & General Group	3.3

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

The Company returned -0.8% in the second quarter of 2015, outperforming the FTSE All-Share Index which fell by 1.6%.

After a post-General Election boost from a surprise Conservative victory, the UK equity market ended the quarter lower as the travails of Greece led to share price falls in June. Despite weaker economic data in the US and the onset of European QE, bond yields in major markets rose significantly as fears of deflation dissipated. In the UK, economic growth remained positive and inflation low, with signs of an acceleration in average wage growth that has been absent since the financial crisis. 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. Rentokil performed well during the quarter after issuing a positive trading update with first quarter 2015 revenues up driven by good performance in the UK, North America and Latin America. Stagecoach, which we purchased pre-election, rallied as concerns over bus and rail regulation dissipated with the Conservative win and Lloyds Banking Group reported good results showing strong underlying profits, a strengthening balance sheet and income growth.

The biggest detractors to relative performance came from not holding two megacap companies which rallied significantly during the quarter. BG Group received a bid from Royal Dutch Shell, and Vodafone rose on the news of a possible tie up with Liberty Global. Other detractors to relative returns included Reed Elsevier and AstraZeneca, which fell in response to higher bond yields, having previously been beneficiaries of investors’ search for income.

Activity during the quarter included opening a new position in Barclays, Sky and IMI whilst adding to our holdings in Admiral Group, Legal & General Group and Bodycote. We reduced our positions in Imperial Tobacco Group and Aviva and sold our holdings in Prudential and 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.

24 July 2015