Last checked at 15 Jul 2016 17:02
BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC - Portfolio UpdateBLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC - Portfolio Update
PR Newswire
London, July 15
| BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC |
| All information is at 30 June 2016 and unaudited. |
| Performance at month end with net income reinvested |
| One Month | Three Months | One Year | Three Years | Since 1 April 2012 | Five Years | |
| Sterling | ||||||
| Share price | -5.0% | -3.7% | -4.5% | 23.3% | 49.7% | 44.9% |
| Net asset value | -2.0% | -0.2% | 0.0% | 28.4% | 43.6% | 42.9% |
| FTSE All-Share Total Return | 2.8% | 4.7% | 2.2% | 18.6% | 36.2% | 35.5% |
| 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: | 175.50p |
| Net asset value - cum income*: | 179.55p |
| Share price: | 171.00p |
| Total assets (including income): | £48.5m |
| Discount to cum-income NAV: | 4.8% |
| Net gearing: | 0.3% |
| Net yield**: | 3.5% |
| Ordinary shares in issue***: | 25,879,268 |
| Gearing range (as a % of net assets) | 0-20% |
| Ongoing charges****: | 1.2% |
| * includes net revenue of 4.05 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 3.5% and includes the 2015 final dividend of 3.60p per share declared on 15 January 2016, paid to shareholders on 4 March 2016 and the 2016 interim dividend of 2.40p per share announced on 29 June 2016 and payable to shareholders on 2 September 2016. |
| *** excludes 7,054,664 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 2015. |
| Benchmark | |
| Sector Analysis | Total assets (%) |
| Pharmaceuticals & Biotechnology | 11.1 |
| Tobacco | 9.2 |
| Travel & Leisure | 8.5 |
| Support Services | 8.3 |
| Media | 8.2 |
| Oil & Gas Producers | 6.2 |
| Banks | 5.7 |
| Financial Services | 5.6 |
| General Retailers | 5.3 |
| Food Producers | 5.3 |
| Fixed Line Telecommunication | 4.5 |
| Non-Life Insurance | 3.6 |
| General Industrials | 3.6 |
| Wireless Telecommunication Services | 3.2 |
| Technology Hardware & Equipment | 2.4 |
| Food & Drug Retailers | 1.9 |
| Real Estate Investment & Services | 1.8 |
| Real Estate Investment Trusts | 1.1 |
| Construction & Materials | 0.7 |
| Net Current Assets | 3.8 |
| Total | 100.0 |
| Ten Largest Equity Investments | |
| Company | Total assets (%) |
| British American Tobacco | 6.6 |
| Unilever | 5.3 |
| AstraZeneca | 5.2 |
| BT Group | 4.6 |
| RELX | 3.8 |
| Royal Dutch Shell ‘B’ | 3.6 |
| GlaxoSmithKline | 3.3 |
| Lloyds Banking Group | 3.2 |
| Vodafone | 3.2 |
| John Laing Group | 3.0 |
| Commenting on the markets, Adam Avigdori and Mark Wharrier representing the Investment Manager noted: |
| The UK equity market rose strongly in June, driven by a strong performance from the FTSE 100 which was up by 4.7%. This strong performance was largely due to the weak performance of sterling against the dollar and euro following the vote to leave the EU, with both currencies falling by circa .8% respectively. Unlike the FTSE 100, the more domestically exposed FTSE 250 which benefits far less from Sterling exposure, fell by 5.1%. During the quarter the Company returned -0.2% whilst the FTSE All Share Index returned 2.8%. The IA UK Income sector fell by -0.3% over the same period. Domestic financials and consumer goods and services, most notably retailers, were the weakest performers during the quarter as the market digested the news of an exit from the EU. Indeed, weak sterling and a strong dollar, as a result of Brexit, contributed significantly to both sector and stock performance. Consequently, the portfolio’s positions in Lloyds, Dixons Carphone and Hays Group detracted from performance. Conversely, the Company’s internationally focused holdings such as Unilever, British American Tobacco and AstraZenca contributed positively to performance. During the quarter, we reduced our exposure to financials as a result of the vote, notably selling our holdings in Barclays and Legal & General Group, and looked to add to domestically focused businesses such as BT Group, which had been weak as a result of the currency move. We added a new position in Vodafone where some early signs of an inflexion in revenue growth are supported by improving cash generation. The decision to leave the EU has caused tremendous uncertainty both politically and economically. The near term ramifications on consumer and business confidence are more obvious than the medium to long term consequences of the vote. As expected, the international nature of the UK market has offered some protection although companies focused on the domestic economy have suffered. We continue to focus on those businesses with good cash generation and lower leverage, noting that with uncertainty ahead, those with the strongest balance sheets and strongest cash flow will be able to weather volatile times, yet continue to invest and pay growing dividends. Some of the best opportunities come with uncertainty and we remain focused on using these times to identify and establish positions in those companies where the short term share price has dislocated from stronger fundamentals in the long term. * NAV - Inc. performance. |
| 15 July 2016 |