Portfolio Update
Summary by AI BETAClose X
BLACKROCK INCOME & GROWTH INVESTMENT TRUST PLC (LEI:5493003YBY59H9EJLJ16 )
All information is at 31 January 2025 and unaudited.
Performance at month end with net income reinvested
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One Month |
Three Months |
One Year |
Three Years |
Five Years |
Since 1 April 2012 |
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Sterling |
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Share price |
4.5% |
5.0% |
19.2% |
32.6% |
57.4% |
183.8% |
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Net asset value |
3.5% |
5.6% |
13.7% |
34.4% |
66.3% |
186.6% |
|
FTSE All-Share Total Return |
3.1% |
5.7% |
21.1% |
44.5% |
80.8% |
200.9% |
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Source: BlackRock |
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BlackRock took over the investment management of the Company with effect from 1 April 2012.
At month end
Sterling:
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Net asset value - capital only: |
253.56p |
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Net asset value - cum income*: |
259.61p |
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Share price: |
230.00p |
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Total assets (including income): |
£54.7m |
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Discount to cum-income NAV: |
11.4% |
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Gearing: |
4.0% |
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Net yield**: |
3.3% |
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Ordinary shares in issue***: |
18,753,794 |
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Gearing range (as a % of net assets): |
0-20% |
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Ongoing charges****: |
1.15% |
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* Includes net revenue of 6.05 pence per share |
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** The Company's yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 3.3% and includes the 2025 final dividend of 5.00p per share declared on 28 January 2026 with pay date 20 March 2026 and the Interim Dividend of 2.70p per share declared on 19 June 2025 with pay date 02 September 2025. |
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*** excludes 10,081,532 shares held in treasury. |
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**** 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 ended 31 October 2025. 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.
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Sector Analysis |
Total assets (%) |
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Banks |
13.0 |
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Pharmaceuticals & Biotechnology |
8.7 |
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Nonequity Investment Instruments |
6.9 |
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Aerospace & Defense |
5.7 |
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Mining |
5.4 |
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Oil & Gas Producers |
5.0 |
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Financial Services |
5.0 |
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General Retailers |
4.8 |
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Household Goods & Home Construction |
4.2 |
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Support Services |
3.8 |
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Real Estate Investment Trusts |
3.7 |
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Software & Computer Services |
3.6 |
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Personal Goods |
3.5 |
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Electronic & Electrical Equipment |
3.0 |
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Nonlife Insurance |
2.7 |
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Life Insurance |
2.7 |
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Tobacco |
2.6 |
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Electricity |
2.3 |
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Industrial Engineering |
2.2 |
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General Industrials |
1.7 |
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Food Producers |
1.6 |
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Beverages |
0.5 |
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Net Current Assets |
7.4 |
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----- |
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Total |
100.0 |
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===== |
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Country Analysis |
Percentage
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United Kingdom |
89.8 |
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United States |
2.8 |
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Net Current Assets |
7.4 |
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----- |
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100.0 |
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Top 10 Holdings |
Fund %
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AstraZeneca |
7.6 |
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Standard Chartered |
4.5 |
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Lloyds Banking Group |
4.5 |
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HSBC |
4.2 |
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Shell |
3.9 |
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RELX |
3.8 |
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Unilever |
3.8 |
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Rio Tinto |
3.8 |
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Reckitt |
3.7 |
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Rolls-Royce Holdings |
3.0 |
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Commenting on the markets, representing the Investment Manager noted:
Market Summary:
January was a positive month for global equities, with the MSCI All Countries Index advancing +2.92%. From a macro perspective, market sentiment was shaped by a heavy flow of geopolitical developments. Notable events included the US attack on Venezeula, continued Iranian tensions, President Trump's attendance at the World Economic Forum in Davos, his confirmation of the nominee for the next Chair of the Federal Reserve, ongoing political instability in the UK, and the long-anticipated *free trade agreement between Europe and India, with negotiations having first begun in 2007.
In the UK, inflation surprised to the upside, printing at 3.37% YoY, alongside November GDP data exceeding expectations on a sequential basis. This was partially offset by a slightly more dovish labour market report. Overall, the data remain consistent with the prevailing "benign" inflation narrative, which is unlikely to alter expectations for the Bank of England's February meeting, where policymakers are expected to maintain a `gradual' approach to easing. Against this backdrop, the FTSE All-Share Index rose +2.86%, continuing to push to record highs.
In the US, geopolitical headlines continued to dominate market narratives, at times overshadowing solid underlying performance. The S&P 500 ended the month up +1.17%, supported by strong earnings, with technology stocks remaining the primary driver of profit growth. In contrast, US banks underperformed, as earnings releases revealed an unexpected decline in investment banking fees during Q4 2025. The Federal Reserve held policy rates steady within the 3.50%-3.75% range, which the Chair described as consistent with estimates of neutral and providing flexibility to respond to evolving risks. The month concluded with President Trump announcing former Fed Governor Kevin Warsh as his nominee for the next Federal Reserve Chair.
In Europe, equities continued to outperform, with the STOXX 600 finishing the month up +2.49% and near recent highs. Performance was underpinned by a supportive earnings backdrop and an improving growth outlook, as GDP data from major European economies exceeded expectations. Additionally, the signing of the EU-India Free Trade Agreement was a notable development, with the deal expected to double EU goods exports to India by 2032, supported by significant tariff reductions granted by India.
Commodities experienced notable price volatility over the month. Silver led performance, rising +19%, followed by gold, which gained +13%, despite silver recording its largest single-day decline since 1980 towards month-end*. January also marked the early stages of the Q4 earnings season, with 28% of S&P 500 companies reporting to date. Of those, 60% have beaten revenue expectations, with aggregate earnings growth tracking at 13.5% year-on-year.
Source: European Commission as at 26th Jan 2026 EU and India conclude landmark Free Trade Agreement
Source Morningstar as ay 30th Jan 2026 Silver suffers biggest drop in 46 years, with 'every man and his dog rushing for the exit' | Morningstar
Source Factset Insight as at 6th February 2026 S&P 500 Earnings Season Update: February 6, 2026
Stock comments
The biggest contributor to performance over the month was the trusts holding in Ashmore as the Emerging Markets specialist investment manager reported strong net inflows in Q425 significantly exceeding consensus expectations and reflecting the rotation of investors to Emerging Markets assets, given the backdrop of a weaker dollar and EM outperformance. Great Portland Estates also contributed to performance after another strong leasing update in January with lettings coming in 9% ahead of ERV, continuing to demonstrate the strength of demand for prime space in London. Despite continued leasing strength throughout 2025, the shares have been range bound as political worries have over-shadowed the strong stock specifics. Oxford Instruments contributed to performance as shares rose following reports of Q3 trading remaining on track for full-year expectations with the Advanced Technology division reporting strong order intake - and the successful sale of Nanoscience business with net proceeds of £48.5m.
The top detractor was an overweight in RELX, which fell as the company continues to suffer from concerns that AI will disrupt their well-established profit pools. the company sold off alongside software the software and computer services sector following the launch of new AI products. We continue to believe these specific concerns related to Relx are over-blown although have mitigated these high-level risks elsewhere in the portfolio. The lack of a position in Glencore also detracted from performance as the Glencore also caused relative underperformance in the portfolio after headlines that the company will possibly merge with Rio Tinto - if completed this would create the world's largest mining company. Glencore also reported Q4 and FY25 production which was ahead of consensus expectations. An overweight in ICG also detracted from performance; despite reporting strong returns and decent operational progress. The company is now valued similarly to traditional asset managers and faces their structural headwinds rather than ICG's private markets asset manager peer group.
Changes
We started a new position in Cranswick, the food producer focused on premium, fresh and added value food products with strong relationships with the UK supermarkets. The thesis is centred around the group's vertically integrated model, continuous innovation and capital investment driving HSD volume led revenue and earnings growth. Cranswick plays a strategic role in the UK's food supply. We also purchased a new holding in Eaton, a US industrial, that provides electrification equipment to a broad range of end markets including Data Centres, Industrials, Aerospace & Defence industries. After a muted 2025, Eaton has materially increased its manufacturing footprint and is now well placed to deliver on the expected ramp up in demand from Data Centres, broader electrification and improvement in the US industrial base. This revenue should come with good operating leverage as utilisation of the new facilities improves driving margin expansion. Expecting earnings growth to accelerate towards mid-teens growth over the next couple of years.
We sold Compass, despite solid fundamentals and good business allocation, the company does not provide enough yield and lacks defensive nature. We also trimmed the position in BAE Systems following strong YTD performance and to reflect higher conviction elsewhere, most notably in Babcock which we added to.
Outlook
The outlook remains shaped by a mix of geopolitical uncertainty, evolving interest-rate expectations and strong themes in AI, Defence and Financials. While global markets experienced volatility in early 2025, falling due to trade tariff concerns and then recovering as proposed measures were softened, trade tariffs continue to drive sharp swings in sectors and individual companies. Expectations of Federal Reserve interest rate cuts have been repeatedly delayed, and President Trump's unpredictable policy stance suggests volatility across equity and bond markets will stay elevated. These dynamics have also weakened the US dollar, affecting companies with US dollar revenues. Against this backdrop, we continue to favour companies with durable competitive advantages and pricing power, while looking for opportunities created by heightened market swings.
In Europe, the backdrop is supported by the European Central Bank interest rate cuts and Germany's fiscal push that is centred on defence and infrastructure. This has already boosted European defence companies; however, it remains unclear whether wider economic momentum will follow. Corporate sentiment in defence-related industries is upbeat, but the broader tone is one of stabilisation. Meanwhile, China continues to battle soft domestic demand and deflation pressures, with limited success so far; recent US trade tariff announcements have only added to the uncertainty.
The UK market has remained relatively resilient despite domestic political noise, though companies more exposed to the UK economy have faced pressure on sentiment. Hopes for stability have faded, with political fractures keeping risk premia high across equities and gilts. While households remain in decent shape - with solid savings and real wage growth - both consumer and business confidence will need to improve for a fuller recovery. Recent data point to stabilisation, but uncertainty on growth and policy direction continues to weigh on investor conviction. UK equities remain deeply undervalued relative to global peers, with double-digit discounts across metrics. This has spurred buybacks and continued inbound M&A. While volatility is expected to persist, we believe risk appetite will return and opportunities are emerging.
Cash-generative businesses with enduring competitive advantages continue to be a priority, and we are confident they are best positioned to deliver long-term returns. While volatility is likely to persist, the opportunities it presents are encouraging - both in resilient growth stories and compelling turnaround cases.
24 February 2026
Release |
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