Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC (LEI:5493003YBY59H9EJLJ16)

All information is at 28 February 2018 and unaudited.

Performance at month end with net income reinvested

	One Month	Three Months	One Year	Three Years	Five Years	Since 1 April 2012
Sterling
Share price	-4.4%	-0.8%	3.3%	17.0%	49.7%	82.3%
Net asset value	-4.2%	-2.4%	2.2%	15.6%	47.5%	68.2%
FTSE All-Share Total Return	-3.3%	-0.6%	4.4%	18.8%	42.1%	63.6%
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:	195.78p
Net asset value - cum income*:	197.20p
Share price:	195.00p
Total assets (including income):	£48.0m
Discount to cum-income NAV:	1.1%
Gearing:	4.2%
Net yield**:	3.4%
Ordinary shares in issue***:	24,354,268
Gearing range (as a % of net assets)	0-20%
Ongoing charges****:	1.1%

* includes net revenue of 1.42 pence per share

** The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 3.4% and includes the 2017 interim dividend of 2.50p per share declared on 26 June 2017 and paid to shareholders on 1 September 2017 and the 2017 final dividend of 4.10p per share declared on 20 December 2017 and payable to shareholders on 9 March 2018.

*** excludes 8,579,664 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 2017.

Sector Analysis	Total assets (%)
Banks	9.6
Oil & Gas Producers	8.5
Pharmaceuticals & Biotechnology	7.7
Non-Life Insurance	7.0
Tobacco	6.6
Media	6.5
Financial Services	6.3
Support Services	6.3
Construction & Materials	4.3
Industrial Engineering	4.3
Food Producers	4.3
General Retailers	3.9
Travel & Leisure	3.3
Food & Drug Retailers	2.7
General Industrials	2.4
Life Insurance	1.9
Household Goods & Home Construction	1.8
Fixed Line Telecommunications	1.7
Chemicals	1.7
Gas, Water & Multiutilities	1.3
Forestry & Paper	1.3
Software & Computer Services	1.0
Real Estate Investment Trusts	0.9
Beverages	0.9
Net Current Assets	3.8
	------
Total	100.0
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Ten Largest Equity Investments
Company	Total assets (%)
British American Tobacco	5.7
Royal Dutch Shell ‘B’	5.5
Unilever	4.3
Lloyds Banking Group	4.1
RELX	3.8
Rentokil Initial	3.2
John Laing Group	3.2
HSBC Holdings	3.1
Ferguson	3.0
BP	2.9

Commenting on the markets, Adam Avigdori and David Goldman representing the Investment Manager noted:

The UK equity market suffered its second consecutive negative month during February, with the FTSE All-Share finishing the month -3.3% lower and marking its largest monthly decline in thirty months. Equity market volatility moved higher, arguably a return to a more ‘normal’ market environment. Global economic data, including U.S. and eurozone Purchasing Managers’ Index (PMI) readings undershot elevated expectations but showed robust growth was underway. Meanwhile in the UK the downward revision to Q4 GDP data, weighed down by consumer facing sectors, confirmed that growth in the UK continues to lag behind other major developed economies. Bond yields continued to rise with the US 10-year government bond yields climbing to the highest point since 2014, and in the UK inflationary fears continued to mount, despite moderate growth given the record low levels of unemployment. The underperformance of resources and ‘bond proxies’ added pressure to the FTSE 100 and as a result small & mid-caps outperformed large caps during the month. Over the month the Company delivered a return of -4.2%, underperforming the FTSE All-Share which delivered a return of -3.3%. British American Tobacco shares fell significantly over the month. Operationally the business is delivering and generating revenue growth however, the company remains highly geared, has announced downgrades to earnings per share of 2% and is in an industry undergoing structural change which has put the shares under pressure. CRH saw its business impacted by weather and US hurricanes over 2017 and their shares have de-rated over the past 12-18 months. The outlook is confident with improvement in pricing and a stabilisation of the Philippines business. Unilever shares declined over the month despite no company specific news. The company posted strong revenue growth in the last quarter of the year, driven by Brazil and India in particular. Media and exhibitions business Ascential was a large contributor to performance for the month following solid full year results where earnings-per-share beat expectations by 4% and where management highlighted a confident outlook: organic revenue and profit growth to accelerate. Direct Line shares rose after they announced a 15p special dividend on top of a 40% increase to their final dividend. Underlying profits in the UK motor business remain strong. Underweight exposure to mining names including Glencore, BHP Billiton and Randgold benefitted performance as these shares declined over the month, giving back recent gains. We remain underexposed to the mining sector given the believe that capital expenditure in the industry will need to be greatly increased going forward. During the month we purchased a new position in packaging and paper company Mondi and added to positions in Prudential, Imperial Brands and Direct Line. We reduced allocations to BT and Diageo and sold our holding in Intercontinental Hotel Group. As Brexit negotiations continue to stutter, the nervousness associated with the UK is palpable and this has been reflected in the substantial discount applied to UK domestic franchises.  Whilst we share this caution, we do believe that the indiscriminate discount applied to UK domestic franchises is generating interesting opportunities to invest in some fantastic long-term, cash generative companies at attractive valuations.  Elsewhere, we are positively disposed to companies exposed to infrastructure and construction spend in developed markets where activity levels remain subdued relative to longer term averages and requirements and are well supported by the political environment. Rising interest rates, while reassuring in affirming we are on the path of normalization for monetary policy, will impact corporate refinancing costs.  We believe that it is crucial to invest in companies with sustainably strong cash generation and robust balance sheets such that they are able to perpetuate growth over the medium and longer term from within and not by relying on unlimited cheap credit.

13 March 2018