Disclosure – Non-Independent Marketing Communication
This is a non-independent marketing communication commissioned by BlackRock Income & Growth. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.
- BlackRock Income and Growth Investment Trust (BRIG) released its final results for the year ending 31 October 2020 on Monday this week, reporting a decline of 16.7% in NAV terms.
- The trust outperformed its benchmark, the FTSE All-Share index, which lost 18.6% over the same period and has delivered very strong absolute returns since the end of the period; the share NAV and share price are up by 17.1% and 10.2% respectively to 28 January 2021 (all performance figures are in sterling with dividends reinvested).
- At a share price level, BRIG returned -14.8%, as the discount narrowed over the period to a premium of 0.5% (to 31 October 2020).
- The board is proposing a final dividend per share of 4.60 pence, giving total dividends for the year of 7.20 pence per share. This is despite earnings per share falling and maintains the dividend at the same level as the prior year (2019: 7.20 total dividend pence per share).
- The managers note that UK valuations are extreme and even on an industry adjusted basis remain at multi decade lows vs other international markets. They believe that once the market has certainty, we could see this divergence narrow, supporting their view that now is a great time to invest in the UK market.
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