BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC
All information is at 30 September 2014 and unaudited.
Performance at month end with net income reinvested
One Three One Since Three Five
month months year 1 April years years
2012
Sterling:
Share price -0.3% 3.3% 11.8% 41.5% 52.0% 67.8%
Net asset value -2.6% 0.6% 11.7% 29.0% 48.3% 59.3%
FTSE All-Share Total Return -2.8% -1.0% 6.1% 28.6% 47.9% 59.1%
Sources: BlackRock and Datastream
BlackRock took over the investment management of the Company with effect from 1
April 2012.
At month end
Sterling:
Net asset value - capital only: 166.79p
Net asset value - cum income*: 170.24p
Share price: 170.75p
Total assets (including income): £47.1m
Premium to cum-income NAV: 0.3%
Net Gearing: nil
Net yield**: 3.3%
Ordinary shares in issue***: 26,479,268
Gearing range (as a % of net assets) 0-20%
Ongoing charges****: 1.1%
* includes net revenue of 3.45 pence per share
** based on an interim dividend of 2.20p per share for the financial year
ending 31 October 2014 and a final dividend of 3.50p per share in respect of
the year ended 31 October 2013.
*** excludes 6,454,664 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
2013.
Sector Analysis Total assets (%)
Pharmaceuticals & Biotechnology 10.5
Oil & Gas 10.1
Support Services 10.0
Tobacco 10.0
Life Insurance 9.1
Travel & Leisure 6.2
Banks 6.2
Household Goods & Home Construction 5.7
Media 4.4
Non-Life Insurance 3.6
Mining 3.5
General Retailers 3.4
Food Producers 3.4
Financial Services 2.5
Electronic & Electrical Equipment 2.2
Mobile Telecommunications 1.9
Personal Goods 1.2
Net Current Assets 6.1
-----
Total 100.0
-----
Ten Largest Equity Investments
Company % of Total assets
Royal Dutch Shell B 7.0
British American Tobacco 6.2
HSBC 6.2
GlaxoSmithKline 5.3
AstraZeneca 5.2
Reckitt Benckiser 4.4
Reed Elsevier 4.4
Wolseley 4.1
Imperial Tobacco 3.7
Rio Tinto 3.5
Commenting on the markets, Adam Avigdori and Mark Wharrier representing the
Investment Manager noted:
Markets
UK equities declined in the third quarter, leaving the FTSE All-Share Index in
barely positive territory for the year-to-date. The corporate earnings season
was overshadowed by geopolitical events and the domestic focus turned to
Scotland although the final margin in the vote on independence proved wider
than expected. International tensions continued to rise around both Ukraine,
following the downing of a Malaysia Airlines aeroplane, and the Middle East,
with the territorial gains of IS. Economic data were mixed with strength, for
the most part, in the US offset by weakness in Europe.
Portfolio Performance
The Company returned 0.6%* in the third quarter, outperforming the FTSE
All-Share Index return of -1.0%. The Company has just completed its first 12
months with its new structure, team and process and over this period has
outperformed the FTSE All Share Index by 5.6%.
The portfolio benefited from positive first half earnings results at Reed
Elsevier, Reckitt Benckiser and Howdens Joinery, which exceeded market
expectations, whilst Shire rose following an agreed takeover by AbbVie. Dixons
Carphone performed strongly following a reassuring trading update. Direct Line
outperformed after the group announced it was looking to sell its international
business and would return the proceeds to shareholders. Not owning Tesco, which fell,
also contributed to relative performance as profits are under pressure, exacerbated
by a possible accounting error.
Detractors from performance included Spectris, which manufactures testing and
control equipment for a wide range of industries. The company noted that demand
from the mining sector had slowed in addition to an adverse impact from currency movements.
Motor insurers eSure and Admiral underperformed as the stabilisation in motor premiums
continues to be fragile.
Activity during the period included new purchases of Domino Printing Sciences
and Carnival whilst we added to Imperial Tobacco, Prudential and HSBC. We
reduced Admiral, Dixons Carphone and Berkeley Group and sold Shire and Tate &
Lyle.
Outlook
Eurozone economic activity remains subdued despite an increasingly supportive
policy response from the European Central Bank, whilst in the US the ending of
quantitative easing is contributing to uncertainty. We continue to focus more
on the specific drivers of individual companies and the ability to determine
their future rather than relying on a specific macro outcome. Given the outlook
for both economic growth and interest rates remains uncertain, 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. It also has exposure
to companies with sustainable growth franchises and turnaround situations.
* NAV - Inc. performance.
22 October 2014
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Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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