Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 31 December 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	0.3%	6.8%	10.0%	46.4%	60.3%	52.6%
Net asset value	-0.9%	6.3%	10.0%	39.5%	48.4%	50.9%
FTSE All-Share Total Return	-1.3%	4.0%	1.0%	23.4%	30.6%	33.8%
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:	184.94p
Net asset value - cum income*:	189.74p
Share price:	187.25p
Total assets (including income):	£51.8m
Discount to cum-income NAV:	1.3%
Net Cash:	1.4%
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 4.80 pence per share

** based on an interim dividend of 2.40p per share in respect of the year ended 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	12.1
Support Services	9.1
Travel & Leisure	8.7
Pharmaceuticals & Biotechnology	7.8
Tobacco	7.6
Life Insurance	7.2
Media	7.0
Financial Services	6.2
Oil & Gas Producers	6.0
Fixed Line Telecommunication	4.1
Non Life Insurance	4.0
Food Producers	3.4
General Retailers	3.1
Mining	2.6
Technology & Hardware Equipment	1.7
Industrial Engineering	1.4
General Industrials	1.1
Software & Computer Services	1.1
Real Estate Investment Trusts	0.6
Net Current Assets	5.2
Total	100.0

Ten Largest Equity Investments
Company	Total assets (%)
British American Tobacco	5.4
AstraZeneca	5.4
HSBC Holdings	4.8
Lloyds Banking Group	4.7
RELX	4.3
BT Group	4.1
Wolseley	3.8
Aviva	3.6
Legal & General Group	3.6
Unilever	3.5

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

The Company’s NAV rose by 6.3%* in the final quarter of 2015, outperforming its benchmark, the FTSE All Share Index, which returned 4.0%. Over the calendar year, the NAV has produced a positive return of 10.0%*, significantly outperforming the FTSE All Share which has risen by 1.0%. UK equities rebounded from the weakness seen in the autumn, however commodity prices and resources equities continued to fall. In December the US Federal Reserve finally lifted US interest rates by 0.25% - a much trailed event and one which was seen as a positive reflection of the strong US economy. Commodity prices continued to fall. Key commodities oil and iron ore have now more than halved involve in the past year. During this quarter weakness in demand appeared to move to industrial companies, with profit warnings coming in particular from US companies affected by the strong US dollar and weaker emerging market growth. The portfolio produced strong positive outperformance from a mixture of holdings from all three of its strategies. The largest contributor to performance came from our holding in Softcat following its recent IPO. Shares in BT Group rose as regulatory fears eased and John Laing, the infrastructure fund manager, performed strongly as a technical overhang of shares began to fall. Other contributors outperformance came from holdings in Carnival, Aviva, Legal & General Group, AstraZeneca and Dixons Carphone. The largest detractor from relative performance came from our holding in Stagecoach, which fell after the company downgraded its full year earnings forecasts, as there was a slowdown in travel to big cities following the attacks in Paris in November. Our holding in Rio Tinto also detracted, falling with the other names in the sector, however, our underweight position in the mining sector continued to add value. We opened new positions in John Laing, Provident Financial and Softcat, a leading provider of IT infrastructure, and added to our current holdings in Intercontinental Hotels Group, Lloyds Banking Group and Unilever. We have reduced our holding in Next, Imperial Tobacco Group and Carnival and sold positions in BHP Billiton, IMI, Pearson and Worldpay. 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. 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. *NAV – Inc. performance. 18 January 2016