Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 29 February 2016 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	0.9%	-6.0%	-3.6%	23.4%	50.3%	39.6%
Net asset value	0.4%	-4.5%	-1.7%	25.4%	43.0%	39.8%
FTSE All-Share Total Return	0.8%	-3.5%	-7.3%	10.8%	27.6%	28.3%
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:	177.69p
Net asset value - cum income*:	178.92p
Share price:	171.75p
Total assets (including income):	£48.9m
Discount to cum-income NAV:	4.0%
Net Cash:	2.2%
Net yield**:	3.5%
Ordinary shares in issue***:	26,229,268
Gearing range (as a % of net assets)	0-20%
Ongoing charges****:	1.0%

* includes net revenue of 1.23 pence per share

** based on an interim dividend of 2.40p per share and a final dividend of 3.60p per share in respect of the year ended 31 October 2015.

*** 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 2015.

Benchmark
Sector Analysis	Total assets (%)
Banks	10.5
Pharmaceuticals & Biotechnology	9.7
Travel & Leisure	9.6
Support Services	9.2
Tobacco	7.7
Life Insurance	6.4
Media	6.3
Oil & Gas Producers	5.9
Financial Services	5.7
Food Producers	4.5
Fixed Line Telecommunication	4.5
Non-Life Insurance	4.2
General Retailers	3.2
General Industrials	2.1
Technology & Hardware Equipment	2.1
Software & Computer Services	1.0
Real Estate Investment Trusts	1.0
Industrial Engineering	0.2
Net Current Assets	6.2
Total	100.0

Ten Largest Equity Investments
Company	Total assets (%)
Lloyds Banking Group	5.7
British American Tobacco	5.3
AstraZeneca	5.1
Unilever	4.5
BT Group	4.5
Royal Dutch Shell ‘B’	3.9
RELX	3.4
Aviva	3.2
Wolseley	3.2
Legal & General Group	3.2

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

The UK referendum on membership of the European Union (Brexit) was at the forefront of the news in February following David Cameron's deal with EU ministers and the referendum date set for 23 June 2016. The market rotation that began in January continued into February, with oil and mining companies continuing to rebound following significant underperformance in 2015. Also continuing the trend from January were financials, which continued to underperform driven by instability in credit markets. The uncertainty surrounding Brexit caused sterling to weaken which benefited the overseas earners that are strongly represented in the UK market.

Over the month, the Company’s NAV rose by 0.4% whilst the FTSE All Share Index returned 0.8%. The IA Income Sector also returned 0.8% over the same period.

The biggest single stock contributor to the Company’s performance came from our holding in Lloyds Banking Group as the company reported good results which included a special dividend, further reinforcing the prospect of an improving capital position, and a rising dividend payout. Intercontinental Hotels Group also reported robust results with a special dividend. Our turnaround holding in Rentokil also reported strong momentum in its business with excellent cash generation. Other contributors to the Company’s returns came from our holdings in Carnival, Provident Financial, Wolseley, DS Smith and Direct Line Insurance.

Within the market, the oil and mining sectors were the leading performers. Due to the Company’s bias away from these sectors, this acted as a slight drag to relative performance (particularly companies such as Glencore and Anglo American, which we do not hold, that rallied significantly).

During the month we have added to our positions in Lloyds Banking Group, Stagecoach and Provident Financial, whilst opening new positions in Shire, Ascential and RPC. We financed these purchases by reducing our holdings in HSBC, RELX, and BP Group and selling our remaining position in Ashmore Group.

Given the overall economic environment continues to be fragile, 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.

15 March 2016