Portfolio Update
Summary by AI BETAClose X
The information contained in this release was correct as at 28 February 2026. Information on the Company's up to date net asset values can be found on the London Stock Exchange Website at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html .
BLACKROCK INCOME & GROWTH INVESTMENT TRUST PLC (LEI:5493003YBY59H9EJLJ16 )
All information is at 28 February 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 |
2.6% |
9.8% |
19.6% |
35.6% |
65.9% |
191.3% |
|
Net asset value |
5.3% |
11.7% |
19.7% |
39.0% |
72.3% |
201.8% |
|
FTSE All-Share Total Return |
6.5% |
12.1% |
27.3% |
51.6% |
88.7% |
220.4% |
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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:
|
Net asset value - capital only: |
266.34p |
|
Net asset value - cum income*: |
268.10p |
|
Share price: |
231.00p |
|
Total assets (including income): |
£56.0m |
|
Discount to cum-income NAV: |
13.8% |
|
Gearing: |
5.9% |
|
Net yield**: |
3.3% |
|
Ordinary shares in issue***: |
18,654,568 |
|
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 1.76 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 (%) |
|
Banks |
12.6 |
|
Pharmaceuticals & Biotechnology |
9.8 |
|
Nonequity Investment Instruments |
6.3 |
|
Mining |
5.8 |
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Oil & Gas Producers |
5.4 |
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General Retailers |
5.1 |
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Aerospace & Defense |
5.0 |
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Support Services |
4.2 |
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Household Goods & Home Construction |
4.2 |
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Financial Services |
4.0 |
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Personal Goods |
3.7 |
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Real Estate Investment Trusts |
3.6 |
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Electronic & Electrical Equipment |
3.0 |
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Tobacco |
2.9 |
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General Industrials |
2.8 |
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Software & Computer Services |
2.8 |
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Industrial Engineering |
2.5 |
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Nonlife Insurance |
2.4 |
|
Life Insurance |
2.4 |
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Electricity |
2.4 |
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Food Producers |
1.7 |
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Food & Drug Retailers |
1.4 |
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Beverages |
0.6 |
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Net Current Assets |
5.4 |
|
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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 |
90.9 |
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United States |
3.7 |
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Net Current Assets |
5.4 |
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----- |
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100.0 |
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Top 10 Holdings |
Fund %
|
|
AstraZeneca |
8.5 |
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HSBC |
4.5 |
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Shell |
4.3 |
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Standard Chartered |
4.2 |
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Lloyds Banking Group |
4.1 |
|
Rio Tinto |
4.0 |
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Unilever |
3.9 |
|
Reckitt Benckiser Group |
3.7 |
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Rolls-Royce Holdings |
3.2 |
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British American Tobacco |
3.1 |
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Commenting on the markets, representing the Investment Manager noted:
Market Summary:
February delivered a continued grind higher for global equities, although leadership broadened materially beneath the surface. The MSCI ACWI gained 1.3% over the month, as investors rotated away from crowded mega - cap AI and software names towards more cyclical and value - leaning parts of the market. The macro backdrop was shaped by three overlapping themes: a growing debate over the payback from heavy AI investment; policy uncertainty around US trade tariffs following a Supreme Court ruling on the administration's emergency powers; and a late - month rise in geopolitical risk as conflict involving the US and Iran escalated on the final day of February. Bond markets responded constructively, with yields generally moving lower as risk sentiment wobbled and investors leaned back into the "gradual disinflation" narrative.
In the U.S., equity performance was driven by sharp rotations and AI-related volatility. After a strong start to the year, small - cap performance was uneven through February, while several high - profile AI and software names - including Nvidia - experienced significant drawdowns despite earnings beats, reflecting investor concerns around AI capex intensity, monetisation and broader headwinds facing the software sector. Financials and private credit exposed stocks also came under pressure amid liquidity concerns, adding to broader index weakness.
European equities continued to hold up well, underpinned by earnings momentum and a supportive rates backdrop. The ECB kept rates on hold at 2%, while eurozone inflation prints and surveys pointed to a modest improvement in momentum, helping sustain confidence in a "soft - landing" path. Commodities were firmer overall, with precious metals notably volatile early in the month before rebounding into month - end as geopolitical risks intensified; oil also lifted late, following the escalation in the Middle East.
In the UK, equities advanced strongly. The FTSE All - Share rose 6.5%, supported by the rotation away from high - valuation tech, resilient earnings and strength in more defensive UK large caps. Sector leadership was broad, with healthcare, basic materials, utilities and telecoms among the top performers. The Bank of England held Bank Rate at 3.75% (5-4 vote), while reiterating that further easing remains likely as inflation pressures cool. Supporting that tone, headline CPI eased to 3.0% YoY in January, down from 3.4% in December, reinforcing the view that the inflation profile is moving back towards target over the coming quarters.
Source: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2026/february-2026
Source: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/january2026
Stock comments
Great Portland Estates detracted in February, giving back some of the strong performance in January. The profit taking occurred amidst emerging concerns through the month around dislocation from AI leading to potential job losses. Our view remains that Zone One central London offices is a strong asset class, highlighted by strong rental growth over the last two decades that we expect this to continue.
UK bank shares pulled back from early - month highs as investors weighed a more dovish interest - rate outlook and a broader wobble in banking sentiment around credit risk. Lloyds Banking Group and Standard Chartered detracted as a result, with both giving back some of the strong 2025 and January performance. We had trimmed our position in Lloyds on strength reflecting the elevated valuation. Conversely, an underweight position in Barclays contributed to performance.
RELX was a notable detractor amid a sharp valuation de - rating of information/services names exposed to the "AI disruption" narrative. Investors are concerned that new generative - AI legal tools could compress pricing power and moats triggered heavy selling across the space, which outweighed more supportive longer - term fundamentals and capital returns in the near term. The shares bounced back later in the month.
Howden Joinery also contributed to relative performance after posting a strong set of full year results with margin progression. The group had modest improvements in the kitchen market combined with a dominant competitive position.
Changes
We initiated a new position in Tesco as part of a defensive cashflow growth opportunity. The company should be resilient given limited structural threats and strong competitive position. We also sold off the remainder of NatWest and switched into Barclays as we believe there is more momentum in Barclays from hereon - with NatWest's acquisition of Evelyn depressing capital returns in the short term. We also initiated a new position in Mondi where trading has been difficult in recent years given the adverse supply/demand trends in their markets. The company has spent a lot of capex and undertaken M&A in recent years which should start contributing as markets recover.
We sold BAE Systems following strong year-to-date performance and to reflect higher conviction elsewhere in Babcock where we expect more upsides given the potential contract wins this year supported by a strong defence backdrop.
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. Recent developments in the Middle East have added to near - term uncertainty, lifting risk premia across energy and broader markets amid heightened volatility. While markets continue to weigh a range of outcomes, investor sentiment remains highly sensitive to policy signals and the risk of further escalation, particularly the implications for energy supply and shipping routes. 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.
18 March 2026
Release |
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