BlackRock Income and Growth Investment Trust Plc – Portfolio Update

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

One Three One Three Five Since

Month Months Year Years Years 1 April

2012
Sterling
Share price 4.5% 5.0% 19.2% 32.6% 57.4% 183.8%
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%

Source: BlackRock

BlackRock took over the investment management of the Company with effect from 1
April 2012.

At month end

Sterling:

Net asset value – 253.56p
capital only:
Net asset value – 259.61p
cum income*:
Share price: 230.00p
Total assets £54.7m
(including
income):
Discount to cum 11.4%
-income NAV:
Gearing: 4.0%
Net yield**: 3.3%
Ordinary shares in 18,753,794
issue***:
Gearing range (as 0-20%
a % of net
assets):
Ongoing 1.15%
charges****:
* Includes net
revenue of 6.05
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
3.3% 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.
*** 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 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.

Sector Analysis Total assets (%)
Banks   13.0
Pharmaceuticals & Biotechnology    8.7
Nonequity Investment Instruments    6.9
Aerospace & Defense    5.7
Mining    5.4
Oil & Gas Producers    5.0
Financial Services    5.0
General Retailers    4.8
Household Goods & Home Construction    4.2
Support Services    3.8
Real Estate Investment Trusts    3.7
Software & Computer Services    3.6
Personal Goods    3.5
Electronic & Electrical Equipment    3.0
Nonlife Insurance    2.7
Life Insurance    2.7
Tobacco    2.6
Electricity    2.3
Industrial Engineering    2.2
General Industrials    1.7
Food Producers    1.6
Beverages    0.5
Net Current Assets                   7.4
—–
Total 100.0
=====
Country Analysis Percentage
United Kingdom 89.8
United States 2.8
Net Current Assets 7.4
—–
100.0

Top 10 Holdings Fund %
AstraZeneca 7.6
Standard Chartered 4.5
Lloyds Banking Group 4.5
HSBC 4.2
Shell 3.9
RELX 3.8
Unilever 3.8
Rio Tinto 3.8
Reckitt 3.7
Rolls-Royce Holdings 3.0

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

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