Last checked at 19 Jun 2017 11:15
BlackRock Income and Growth Investment Trust Plc - Portfolio UpdateBlackRock Income and Growth Investment Trust Plc - Portfolio Update
PR Newswire
London, June 15
| BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC (LEI:5493003YBY59H9EJLJ16) |
| All information is at 31 May 2017 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 | 3.8% | 5.1% | 17.8% | 34.2% | 96.0% | 85.5% |
| Net asset value | 4.7% | 6.9% | 20.1% | 36.7% | 75.9% | 87.7% |
| FTSE All-Share Total Return | 4.4% | 5.3% | 24.5% | 25.4% | 77.6% | 65.0% |
| 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: | 208.81p |
| Net asset value - cum income*: | 212.91p |
| Share price: | 205.00p |
| Total assets (including income): | £56.0m |
| Discount to cum-income NAV: | 3.7% |
| Net cash: | 0.4% |
| Net yield**: | 3.1% |
| Ordinary shares in issue***: | 25,354,268 |
| Gearing range (as a % of net assets): | 0-20% |
| Ongoing charges****: | 1.0% |
| * includes net revenue of 4.10 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 3.1% and includes the 2016 final dividend of 3.90p per share declared on 21 December 2016 and paid to shareholders on 10 March 2017 and the 2016 interim dividend of 2.40p per share announced on 29 June 2016 and paid to shareholders on 2 September 2016. |
| *** excludes 7,579,664 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 2016. |
| Sector Analysis | Total assets (%) |
| Media | 9.3 |
| Support Services | 7.9 |
| Tobacco | 7.8 |
| Pharmaceuticals & Biotechnology | 7.7 |
| Banks | 7.5 |
| Travel & Leisure | 6.5 |
| Financial Services | 6.4 |
| Personal Goods | 5.7 |
| Oil & Gas Producers | 5.6 |
| Non-Life Insurance | 4.5 |
| General Retailers | 4.1 |
| General Industrials | 3.6 |
| Fixed Line Telecommunications | 3.0 |
| Construction & Materials | 2.8 |
| Mobile Telecommunications | 2.5 |
| Food & Drug Retailers | 2.2 |
| Real Estate Investment & Services | 2.0 |
| Aerospace & Defence | 1.8 |
| Household Goods & Home Construction | 1.6 |
| Chemicals | 1.5 |
| Industrial Engineering | 1.3 |
| Real Estate Investment Trusts | 0.8 |
| Net Current Assets | 3.9 |
| Total | 100.0 |
| Ten Largest Equity Investment | |
| Company | Total assets (%) |
| British American Tobacco | 6.8 |
| Unilever | 5.7 |
| Lloyds Banking Group | 4.9 |
| RELX | 3.9 |
| Sky | 3.4 |
| Royal Dutch Shell ‘B’ | 3.2 |
| Rentokil Initial | 3.2 |
| AstraZeneca | 3.1 |
| GlaxoSmithKline | 3.1 |
| BT Group | 3.0 |
| Commenting on the markets, Adam Avigdori and Mark Wharrier representing the Investment Manager noted: |
| The UK stock market extended the positive returns year-to-date and outperformed global equity indices. The rise was led by the larger companies within the pharmaceuticals, utilities, oil & gas and aerospace & defence sectors, which tend to have more resilient earnings characteristics. The mining sector fell over the month on commodity price weakness. |
| The Company had another positive month in May, returning 4.7% and outperforming the FTSE All-Share which returned 4.4% during the month. |
| Unilever was the largest contributor for the month as the market continues to recognise the margin opportunity available. |
| Patisserie Holdings announced a strong set of interim results which demonstrated robust sales over the festive season and 14% growth in online sales. Despite inflationary pressures starting to emerge, the company’s brand remains strong and combined with a strong balance sheet and a focus on efficiencies, this has helped interim revenues to rise by 16%. |
| Hiscox experienced a strong quarter as retail growth remains robust, driven primarily by the US which is now the largest part of their retail business. Markets continue to be tough in London and the Reinsurance business and management are understandably shrinking their exposure to these areas. |
| ITV was the largest detractor for May as CEO Adam Crozier announced he is to step down. This wasn’t a huge surprise and there is a well-established succession plan in place so we don’t expect much disruption. Q1 numbers, which were also announced in May, were weaker than consensus. Kier Group and Inchcape were both detractors for the month with no notable stock specific news related to either company. |
| During the month we purchased a new position in Bodycote and added to Patisserie Valerie, Babcock and Hiscox. We reduced positions in Rentokil, Premier Asset Management, John Laing and Elementis amongst others. |
| We did not make any material changes to the portfolio going into the UK general election. In line with our strategy, we continue to focus on stock specifics where we see long-term sustainable advantages rather than build the portfolio for a particular political outcome. It is important to remember that the UK is a highly global market and our exposure to UK cyclicals is modest. The Company’s largest positions are in international companies exposed to business and consumer spending. These are companies we see as having a sustainable competitive advantage that we believe the market consistently undervalues and which should enable them to materially grow earnings on a 3 to 5 year view. |
| As ever, we remain believers that over the longer-term earnings and cashflow growth tend to be the dominant driver of share prices and where equity markets fail to recognise that, corporates buyers have the potential to exploit the opportunity; the bid for Unilever earlier this year was a good reminder of that dynamic as was the bid for both Sky and for ARM Holdings last year. With a combination of continued sterling weakness and a low interest rate environment fuelling cheap debt, we believe that M&A activity will remain a theme throughout the year. Markets are likely to remain skittish given macro headwinds, likely volatility in bond markets and an increasing level of political uncertainty. However, we continue to find opportunities in those companies that can generate cashflow from strong business models, have favourable industry characteristics or scope for management driven self-help. While sometimes unnerving, we will continue to use market volatility to provide buying opportunities in those types of companies. |
| 19 June 2017 |