Portfolio Update

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC

All information is at 31 July 2015 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	0.8%	-0.6%	14.4%	52.3%	57.9%	68.9%
Net asset value	3.5%	1.6%	15.6%	48.2%	48.6%	68.0%
FTSE All-Share Total Return	2.4%	-2.2%	5.4%	38.3%	36.5%	59.6%
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:	188.23p
Net asset value - cum income*:	189.95p
Share price:	184.50p
Total assets (including income):	£51.8m
Discount to cum-income NAV:	2.9%
Net Gearing:	Nil
Net yield**:	3.2%
Ordinary shares in issue***:	26,229,268
Gearing range (as a % of net assets)	0-20%
Ongoing charges****:	1.2%

* includes net revenue of 1.72 pence per share

** based on an interim dividend of 2.40p per share in respect of the year ended 31 October 2015 and a final dividend of 3.50p per share in respect of the year ended 31 October 2014.

*** excludes 6,704,664 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 2014.

Benchmark
Sector Analysis	Total assets (%)
Banks	12.2
Tobacco	8.7
Support Services	8.3
Travel & Leisure	8.1
Pharmaceuticals & Biotechnology	7.7
Media	7.6
General Retailers	7.6
Life Insurance	6.6
Oil & Gas Producers	6.2
Mining	5.1
Non Life Insurance	3.4
Financial Services Food Producers	2.9 2.8
Fixed Line Telecommunications	2.6
General Industrials	1.7
Household Goods & Home Construction	1.7
Industrial Engineering	1.6
Technology & Hardware Equipment	1.0
Net Current Assets	4.2
Total	100.0

Ten Largest Equity Investments
Company	Total assets (%)
British American Tobacco	5.3
HSBC Holdings	4.8
AstraZeneca	4.7
Lloyds Banking Group	4.2
RELX	3.9
Next	3.8
Carnival	3.6
Imperial Tobacco Group	3.4
Legal & General Group	3.4
Aviva	3.2

Commenting on the markets, Adam Avigdori and Mark Wharrier representing the Investment Manager noted:

The Company returned 3.5% in July 2015, outperforming its benchmark, the FTSE All-Share Index which also rose by 2.4%. The IA Income Sector rose by 1.7% over the same period.

Calendar year to date, the Company has returned 10.1%, significantly outperforming the FTSE All-Share Index which returned 5.5% and the sector which has returned 7.1%.

The largest contributor to performance over the month came from the Company’s holding in Next. The first half trading statement was positive with growth from the online Directory business, leading to group revenues and profits outperforming other UK retailers. Carnival continued to deliver on a profit improvement plan and rival Royal Caribbean Cruises raised full-year guidance as strong bookings in Caribbean and Chinese markets suggest that the industry outlook has improved. British American Tobacco shares also rose following first half results which exceeded expectations and gave an improved outlook for product pricing. Other positive performers included RELX, Cineworld, Imperial Tobacco Group and AstraZeneca.

The biggest detractor to relative performance came from the Company’s holding in Ashmore Group. The share price was weak following net outflows in the second quarter of 2015 as emerging market funds continued to be out of favour given currency weakness. Rio Tinto fell from a combination of continued commodity price weakness and lower than expected iron ore production in the first half.

Activity during the month included new positions in ARM and Darty and adding to our holdings in BHP Billiton and GlaxoSmithKline. We reduced our positions in Howden Joinery Group and Berkeley Group given share price strength and sold our holdings in Spectris and 3i Group.

Eurozone economic activity is showing signs of improvement as the European Central Bank starts quantitative easing, whilst in the US the ending of quantitative easing is contributing to uncertainty. We continue to focus 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 cash flow they generate. The portfolio is primarily invested in high free cash flow companies that can sustain cash generation and pay a growing dividend yield, but also has exposure to companies with sustainable growth franchises and turnaround situations.

20 August 2015