BlackRock Income and Growth Investment Trust Plc - Portfolio Update
August 15 2017 - 9:12AM
PR Newswire (US)
BLACKROCK INCOME AND GROWTH
INVESTMENT TRUST PLC (LEI:5493003YBY59H9EJLJ16) |
All information is at 31 July
2017 and unaudited. |
|
Performance at month end with net
income reinvested |
|
One
Month |
Three
Months |
One
Year |
Three
Years |
Five
Years |
Since
1 April
2012 |
Sterling |
|
|
|
|
|
|
Share price |
2.8% |
3.8% |
15.6% |
34.5% |
79.0% |
85.6% |
Net asset value |
0.8% |
2.0% |
14.2% |
33.4% |
71.1% |
71.5% |
FTSE All-Share Total Return |
1.2% |
3.0% |
14.9% |
25.7% |
65.0% |
62.8% |
|
|
|
|
|
|
|
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: |
202.91p |
Net asset value - cum income*: |
205.02p |
Share price: |
202.50p |
Total assets (including
income): |
£52.8m |
Discount to cum-income NAV: |
1.2% |
Gearing: |
3.3% |
Net yield**: |
3.2% |
Ordinary shares in issue***: |
24,754,268 |
Gearing range (as a % of net
assets) |
0-20% |
Ongoing charges****: |
1.0% |
* includes net revenue of 2.11 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 3.2% and includes the 2016 final
dividend of 3.90p per share declared on 21 December 2016 and paid
to shareholders on 10 March 2017 and the 2017 interim dividend of
2.50p per share announced on 26 June 2017 to be paid to
shareholders on 1 September 2017. |
*** excludes 8,179,664 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 2016. |
|
|
Sector Analysis |
Total assets
(%) |
Support Services |
8.1 |
Banks |
7.9 |
Pharmaceuticals &
Biotechnology |
7.8 |
Media |
7.4 |
Tobacco |
7.1 |
Travel & Leisure |
6.3 |
Oil & Gas Producers |
6.2 |
Financial Services |
6.0 |
Food Producers |
5.9 |
Non-Life Insurance |
5.6 |
General Industrials |
4.4 |
General Retailers |
4.3 |
Construction & Materials |
3.4 |
Industrial Engineering |
3.3 |
Fixed Line Telecommunications |
3.2 |
Food & Drug Retailers |
2.2 |
Mobile Telecommunications |
2.0 |
Real Estate Investment &
Services |
1.9 |
Aerospace & Defence |
1.7 |
Household Goods & Home
Construction |
1.6 |
Chemicals |
1.5 |
Real Estate Investment
Trusts
Software & Computer Services |
0.9
0.7 |
Net Current Assets |
0.6 |
|
------ |
Total |
100.0 |
|
====== |
Ten Largest Equity
Investments |
|
Company |
Total assets
(%) |
British American Tobacco |
6.1 |
Unilever |
5.9 |
Lloyds Banking Group |
4.8 |
RELX |
4.2 |
Royal Dutch Shell ‘B’ |
3.8 |
Rentokil Initial |
3.7 |
John Laing Group |
3.2 |
BT Group |
3.2 |
HSBC Holdings |
3.1 |
Shire |
3.0 |
Commenting on the markets, Adam
Avigdori and David Goldman representing the Investment Manager
noted:
|
The UK stock market rose in July
supported by the mining and banks sectors, whilst the tobacco and
pharmaceutical sectors performed poorly. The US Federal Reserve’s
(“the Fed”) July statement implied that US interest rates would
continue to rise gradually if economic data remains supportive and
the Fed would begin to normalise its balance sheet, whilst European
economic growth continued to improve. UK economic growth was
positive, yet weak with GDP rising 0.3% in Q2 supported by the
services sector with the production and construction sectors
contracting. Sterling strengthened modestly over the month versus
the US dollar contributing to share price weakness in companies
with US sales.
Over the course of the month the BlackRock Income and Growth
Investment Trust plc (“the Company”) has delivered a return of
0.8%, underperforming the FTSE All-Share which returned 1.2%.
July is a busy month for corporate earnings with around half of the
portfolio reporting over the course of the month. The results have
been broadly positive and it is pleasing to see all top 10
contributors to performance in July being driven by companies where
we have significant positions. This was offset by strong
performance in some larger companies that we do not hold,
particularly in the commodities sector.
Bodycote was the largest contributor to performance in July. A
recovery in their General Industrial business, growth in Aerospace
and Automotive revenues and a net cash balance sheet which
management are keen to use are all driving factors.
Elsewhere in the Industrials space, RPC proved to be another strong
contributor after a reassuring statement which demonstrated strong
organic growth, Mergers & Acquisition synergies and a foreign
exchange tailwind. Additionally, the company is launching a £100
million share buyback programme which further demonstrates their
confidence in the business.
Forterra, a supplier of building products for the UK construction
industry, continues to perform well and is supported by a strong
dynamic for UK brick manufacturers as sterling’s weakness limits
imports. The shares trade on a low Price-to-Earnings multiple and
deliver a high free cash flow yield.
Our underweight position in mining names, including Glencore and
BHP Billiton, detracted from performance in July as commodities
performed well. We continue to have concerns in the mining industry
regarding the volatility in Chinese demand. There are also signs
that the industry will need to enter into the next phase of capital
expenditure investment which will bring cash flow under strain. We
remain comfortable not holding these names in the portfolio.
An underweight position in HSBC also detracted from overall
performance after the bank posted strong results with revenue ahead
of expectations. Although costs were also higher than expectations,
HSBC has seen accelerating loan growth driven by its Asian
commercial business and UK and Hong Kong mortgages.
We continue to run a flexible and concentrated portfolio with
competition for capital ensuring we only hold the highest
conviction positions. In this regard we have added new positions in
Weir, who we see benefiting from the growth in the shale industry,
and in Accesso Technologies, who are developing innovative
technology that is increasing customer spend for their clients.
Over the course of the month we have exited our position in
Aggreko, reduced our position in AstraZeneca and added to Wolseley,
Shire, Babcock and Bodycote.
We see increasing pressure in the UK consumer space as rock bottom
household savings are coupled with rising household debt levels.
Whilst we remain cautious in this area, we certainly do not treat
all companies equally. By focusing on those companies that can
generate cashflow from strong business models, have strong balance
sheets or scope for management driven self-help, we are able to
access some of the fantastic domestic opportunities starting to
emerge.
As ever, we remain believers that over the longer-term earnings and
cashflow growth tend to be the dominant driver of share prices and
where equity markets fail to recognise that, corporates buyers have
the potential to exploit the opportunity. With a combination of
continued sterling weakness and a low rate environment fuelling
cheap debt, we believe that Mergers & Acquisition activity will
remain a theme throughout the year.
|
15 August 2017 |
Copyright t 15 PR Newswire
Blackrock Income And Gro... (LSE:BRIG)
Historical Stock Chart
From Apr 2024 to May 2024
Blackrock Income And Gro... (LSE:BRIG)
Historical Stock Chart
From May 2023 to May 2024