BlackRock Income and Growth Investment Trust Plc - Portfolio Update
The information contained in this release was correct as at
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html .
All information is at
Performance at month end with net income reinvested
Since One Three One Three Five 1 April Month Months Year Years Years 2012 Sterling Share price -1.0% 4.0% 15.2% 17.6% 22.5% 174.6% Net asset value -1.4% 3.4% 12.9% 24.4% 31.0% 200.9% FTSE All-Share Total Return -1.3% 2.3% 13.4% 23.9% 32.2% 315.6% Source: BlackRock
BlackRock took over the investment management of the Company with effect from
At month end
Sterling:
Net asset value - capital only: 221.81p Net asset value - cum income*: 225.81p Share price: 202.00p Total assets (including income): £48.8m Discount to cum-income NAV: 10.5% Gearing: 4.8% Net yield**: 3.7% Ordinary shares in issue***: 19,827,612 Gearing range (as a % of net assets): 0-20% Ongoing charges****: 1.28% * Includes net revenue of4.00 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 3.7% and includes the 2023 final dividend of 4.80p per share declared on21 December 2023 with pay date15 March 2024 , and the Interim Dividend of 2.70p per share declared on20 June 2024 with pay date29 August 2024 . *** excludes 10,081,532 shares held in treasury. **** The Company's ongoing charges are calculated as a percentage of average daily net assets and using management fee and all other operating expenses excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items for the year ended31 October 2023 . In addition, the Company's Manager has also agreed to cap ongoing charges by rebating a portion of the management fee to the extent that the Company's ongoing charges exceed 1.15% of average net assets.
Sector Analysis Total assets (%) Support Services 10.5 Banks 8.3 Media 7.3 Pharmaceuticals & Biotechnology 7.2 Real Estate Investment Trusts 6.8 General Retailers 6.3 Financial Services 6.0 Mining 5.8 Oil & Gas Producers 5.7Household Goods & Home Construction 4.5 Nonequity Investment Instruments 3.7 Personal Goods 3.4 Travel & Leisure 3.4 Industrial Engineering 3.4 Gas, Water & Multiutilities 3.1Nonlife Insurance 2.9 Food Producers 2.2 Life Insurance 1.8 Electronic & Electrical Equipment 1.4 Tobacco 1.4 General Industrials 1.2 Net Current Assets 3.7 ----- Total 100.0 ===== Country Analysis PercentageUnited Kingdom 92.6United States 2.0Switzerland 1.6 Net Current Assets 3.8 ----- 100.0 ===== Top 10 holdings Fund % AstraZeneca 6.3 RELX 5.4 Rio Tinto 4.4 Shell 4.1 3i Group 4.1 HSBC Holdings 3.6 Unilever 3.5 National Grid 3.2 London Stock Exchange Group 3.0 Segro 2.7
Commenting on the markets, representing the Investment Manager noted:
Market Summary:
Equity markets experienced significant volatility early in September, as concerns over the global economic slowdown and heightened tensions in the
Market sentiment improved during the second half of the month, as optimism surrounding rate cuts and new economic stimulus in
In the
The
There was increased optimism surrounding
Stock comments
Rio Tinto
benefitted from an iron ore price rise on the final day of the month, as iron ore rose by 10% on the back of increased Chinese demand. The
Ashmore reported full-year earnings, where revenue beat expectations, and announced a dividend that was well received by the market. They also benefitted from increasing improving sentiment towards Emerging Markets.
Many of the top detractors from performance included names that are not held by the portfolio including Glencore, Diageo and Rolls Royce.
Rentokil
shares fell after the company delivered a profit warning early in the month, citing reduced demand in
Changes
During the period, we purchased Hammerson. The company has recently completed the sale of its
Outlook
Equity markets entered 2024 in a buoyant mood following a strong and broad rally in the latter part of 2023. The outlook, and optimism, is a far cry from 12 months ago, when supply chains were hugely disrupted, and inflation was double digit and well ahead of central banks' targets prompting rapid and substantial interest rates hikes, despite an uncertain demand environment.
Markets have shifted to `goldilocks' territory whereby slowing inflation has signaled the peak for interest rates while broad macroeconomic indicators that have been weak are not expected to deteriorate further. This is also helpful for the cost and availability of credit which has recently improved having been deteriorating through most of 2023. Despite expectations for rate cuts moderating significantly, stock markets have continued to make progress in the developed world.
With the
The
We continue to focus the portfolio on cash generative businesses that we believe offer durable, competitive advantages as we believe these companies are best placed to drive returns over the long-term. Whilst we anticipate economic and market volatility will persist throughout the year, we are excited by the opportunities this will likely create; by seeking to identify the companies that strengthen their long-term prospects as well as attractive turnarounds situations.
1. Source: FT,6 September 2024 <US stocks turn in worst week in 18 months over slowdown fears (ft.com)> 2. Source: MarketWatch,9 September 2024 <S&P 500 just saw its worst first week of September since 1953, this chart shows - MarketWatch> 3. Source:ECB ,12 September 2024 <Monetary policy decisions (europa.eu)> 4. Source: J.P. Morgan,19 September 2024 <September 2024 Fed Meeting: Fed Cuts Rates byHalf Point to Support Economy | J.P. Morgan (jpmorgan.com)> 5. Source: FT,19 September 2024 <Bank of England holds interest rates at 5% (ft.com)> 6. Source: CNBC,30 September 2024 <Crude oil prices today: WTI posts third monthly loss (cnbc.com)> 7. Source: Reuters,10 September 2024 <FTSE 100 falls on healthcare, energy weakness; cooling wage growth fuels rate cut bets | Reuters> 8. Source:Peel Hunt Research as of02 October 2024
1. Source: Investors' Chronicles,2 September 2024 <Rightmove shares soar on buyout talks -Investors' Chronicle (investorschronicle.co.uk)> 2. Source: Rothschild and co,9 September 2024 <Monthly Market Summary -September 2024 I Rothschild & Co (rothschildandco.com)