Portfolio Update

The information contained in this release was correct as at 30 June 2021. Information on the Company’s up to date net asset values can be found on the London Stock Exchange Website at:

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

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

All information is at 30 June 2021 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	0.0%	8.8%	18.2%	0.0%	29.9%	94.5%
Net asset value	0.0%	5.8%	18.7%	5.1%	34.1%	92.5%
FTSE All-Share Total Return	0.2%	5.6%	21.5%	6.3%	36.9%	86.4%
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:	198.67p
Net asset value – cum income*:	202.60p
Share price:	186.00p
Total assets (including income):	£44.1m
Discount to cum-income NAV:	8.2%
Gearing:	6.9%
Net yield**:	3.9%
Ordinary shares in issue***:	21,767,207
Gearing range (as a % of net assets):	0-20%
Ongoing charges****:	1.2%
* Includes net revenue of 3.93 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 3.9% and includes the 2020 final dividend of 4.60p per share declared on 01 February 2021 and paid to shareholders on 17 March 2021 and the 2021 interim dividend of 2.60p per share declared on 23 June 2021 with a pay date of 1 September 2021.
*** excludes 10,081,532 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 2020.

Sector Analysis	Total assets (%)
Support Services	11.6
Pharmaceuticals & Biotechnology	8.5
Household Goods & Home Construction	8.3
Financial Services	8.1
Mining	7.2
Oil & Gas Producers	6.4
Personal Goods	5.4
Banks	4.9
Life Insurance	4.4
Media	4.2
Tobacco	3.8
Travel & Leisure	3.6
Health Care Equipment & Services	3.4
General Retailers	3.4
Nonlife Insurance	2.6
General Industrials	2.5
Food & Drug Retailers	1.9
Electronic & Electrical Equipment	1.7
Industrial Metals & Mining	1.6
Technology Hardware & Equipment	1.0
Electricity	1.0
Food Producers	0.9
Real Estate Investment Trusts	0.9
Industrial Engineering	0.6
Real Estate Investment & Services	0.2
Net Current Assets	1.9
	-----
Total	100.0
	=====

Country Analysis	Percentage
United Kingdom	91.6
United States	3.3
France	1.9
Italy	1.0
Sweden	0.3
Net Current Assets	1.9
	-----
	100.0
	=====

Top 10 holdings	Fund %
AstraZeneca	6.6
Rio Tinto	5.2
Reckitt Benckiser	4.6
RELX	4.2
Unilever	4.1
British American Tobacco	3.8
Royal Dutch Shell ‘B’	3.8
Smith & Nephew	3.4
Ferguson	3.3
Electrocomponents	2.7

Commenting on the markets, representing the Investment Manager noted:

Performance Overview:

The Company returned 0.0% during the month net of fees, underperforming the FTSE All-Share which returned 0.2%.

Market Summary:

Global equity markets rose during June despite the growing presence of the Delta variant of the coronavirus which caused a modest rotation towards more defensive holdings.

Early in the month, OPEC and its allies agreed to continue relaxing curbs on oil production signalling their confidence in improving oil demand and a drop in the global supply glut; oil prices rallied as a result.

China announced that it would allow couples to have as many as three children, lifting the previous two-child policy in a bid to tackle the ageing population trend after census data showed birth rates at a low point.

The announcement of an upgrade to inflation came from a Federal Open Market Committee (FOMC) meeting mid-month which caused a short surge in US Treasury yields and market volatility.

June’s flash UK PMIs suggested a modest cooling in the pace of the recovery in activity as the impact of the initial re-openings faded slightly. There was no sign of inflation pressures easing, with supply chain disruption exacerbating the impact of raw material shortages, and firms across all sectors intensifying the search for new staff.

The FTSE All Share rose 0.16% in June with Health Care, Oil & Gas and Technology as top performing sectors.

Stocks:

Oxford Instruments delivered strong numbers in early June ahead of expectations; the company continues to make good progress and demonstrates a strong order book which bodes well for the year ahead. AstraZeneca and RELX benefitted from the rotation reversal which favoured more quality growth holdings; both companies were top contributors to performance during the month. Ferguson was another top contributor; the company released an unscheduled and strong Q3 update upgrading FY21 by more than 10%; the demand backdrop for the company appears very strong.

Conversely, Financials such as Standard Chartered and Legal & General fell out of favour due to the rotation reversal and both holdings were detractors from performance during the month. Taylor Wimpey was another detractor; the company’s shares fell back following strong performance earlier in the year; however fundamentals remain strong.

Portfolio Activity:

During the month we purchased a new holding in Tate and Lyle, supplier of food and beverage ingredients. The company is actively pursuing a split of its two divisions to focus on its faster growing and higher margin specialty ingredients business. We think this will unlock significant value over time. We sold the position in SSP to reduce our exposure to cross border travel revenues given the continued delay in reopening.

We added to some domestic holdings on weakness including Taylor Wimpey and Legal & General and we reduced AstraZeneca, following a very strong run in the shares.

Outlook:

After five years under a Brexit-induced cloud, the relative position of the UK in the eyes of global investors appears to have improved, helped by the vaccination programme, and evidenced by the resurgence in takeover activity as bidders look to capitalise on the discount at which UK equities trade relative to global peers. Specifically, we’ve seen acquisitions of real assets potentially demonstrating a desire to find unlevered free cash flow.

The pandemic has generated an economic cycle unlike any other with unprecedented fiscal and monetary responses. Despite the continuation of COVID-19 restrictions globally, economic activity has been less impacted as consumers and corporates in Developed Markets have adapted their behaviours since the development of an effective vaccine. Concerns have been raised around new variants; however, recovery has been buoyed by ongoing monumental monetary and fiscal support.

As economic activity rebounds this has caused some strains on supply chains with specific industry shortages as well as building inflationary pressures. We continue to monitor the bond market to determine if the current surge in inflation is transitory or, fuelled by a more relaxed Fed, a phenomenon that may persist. We are also cognisant of the evolution of relationships between China and the West and the potential impact on industries and shares.

We continue to have conviction in cash-generative companies that have delivered for the Company and we foresee delivering into the future. We view the dividend outlook for the UK market with renewed optimism as we expect dividends, in aggregate, to be more resilient and to grow faster in the future as those companies that had been overdistributing for a number of years reset their dividends during the pandemic. Resilience was a crucial feature of the Company and its underlying holdings in 2020 and while this will still be important in 2021, we are excited by the approaching economic recovery and the opportunity to deliver strong capital and dividend growth for our clients over the long-term.

22 July 2021