Portfolio Update

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

All information is at 31 January 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	-0.7%	1.2%	11.9%	25.0%	57.2%	90.6%
Net asset value	-2.4%	0.0%	11.3%	24.7%	57.4%	75.6%
FTSE All-Share Total Return	-1.9%	1.0%	11.3%	27.4%	50.3%	69.2%
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:	205.18p
Net asset value - cum income*:	209.91p
Share price:	208.00p
Total assets (including income):	£51.1m
Discount to cum-income NAV:	0.9%
Gearing:	3.3%
Net yield**:	3.2%
Ordinary shares in issue***:	24,354,268
Gearing range (as a % of net assets)	0-20%
Ongoing charges****:	1.1%

* includes net revenue of 4.73 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 3.2% 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	8.9
Pharmaceuticals & Biotechnology	7.8
Tobacco	7.1
Non-Life Insurance	6.8
Media	6.5
Support Services	6.4
Financial Services	6.4
Travel & Leisure	5.6
Food Producers	4.5
Construction & Materials	4.4
Industrial Engineering	4.4
General Retailers	4.1
Fixed Line Telecommunications	2.6
Food & Drug Retailers	2.6
General Industrials	2.4
Household Goods & Home Construction	2.0
Chemicals	1.7
Beverages	1.4
Gas, Water & Multi-utilities	1.4
Life Insurance	1.0
Real Estate Investment Trusts	0.9
Software & Computer Services	0.9
Net Current Assets	0.6
	------
Total	100.0
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Ten Largest Equity Investments
Company	Total assets (%)
British American Tobacco	6.2
Royal Dutch Shell ‘B’	5.8
Unilever	4.5
Lloyds Banking Group	4.1
RELX	3.9
Rentokil Initial	3.3
John Laing Group	3.2
HSBC Holdings	3.2
Ferguson	3.1
BP	3.0

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

The UK equity market had a difficult start to 2018, falling -1.9% during the month, a stark contrast to the strong returns or ‘melt-up’ witnessed elsewhere around the world. Global manufacturing PMIs came in strong and consistent with a sustained global economic expansion, while Eurozone inflation fell as expected. In the US the corporate tax reforms took centre stage, with the one-off tax adjustments boosting the earnings outlook relative to other markets. UK GDP in Q4 positively surprised with growth of +0.5% quarter-on-quarter, however this still marked the weakest annual rate since Q1 2013, with consumer-facing sectors notably weak. Global bond yields moved higher and pound surged to its highest level versus the US Dollar since the Brexit vote in 2016. Rising bond yields and Sterling strength had clear implications for UK market leadership, which saw a rotation away from global defensive ‘bond proxies’ into more cyclical and value areas of the market, with Financials continuing to move higher. Over the month the Company delivered a return of -2.4%, underperforming the FTSE All-Share which returned -1.9%. Next was a strong performer as it raised full year profits after beating guidance for the Christmas period and demonstrating a particularly strong performance in its Online business.  Bodycote had a strong trading statement which reported that results were better than anticipated. The company announced that full year operating profit is likely to be towards the upper end of market expectations. Accesso Technology has reported strong revenue performance ahead of expectations with good momentum across all lines of business. RELX was the largest detractor for the month. The company has bought fraud detection technology company ThreatMetrix, the global leader in risk-based authentication, in their largest acquisition for several years. RELX continues to avoid disruption by innovating and pivoting its business towards new areas of growth. Shire has seen a lot of change at the executive level with a new CEO and Head of Research & Development. The haematology market is being challenged by the launch of Roche’s product but we believe the haemophilia market will be slower to switch away from current technologies. Inchcape fell as investors appear to have concerns around the UK auto market. The UK remains a small proportion of the group and trading remains stable. Over the course of the month we have made a new purchase in best-in-class life insurer, Prudential, which is exposed to Emerging Market and Asian themes. We have sold our positions in Vodafone and in BAE Systems where the valuation and cash flow characteristics do not meet our requirements. We have added to Admiral, Royal Dutch Shell, HSBC and BP whilst reducing exposure to Next, Diageo, Patisserie Valerie and Weir 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 February 2018