BlackRock Income & Growth (BRIG)

BlackRock Income & Growth (BRIG) is co-managed by Adam Avigdori and David Goldman, experienced UK equity investors who take a high-conviction approach to delivering a blend of income and capital growth. The managers focus on identifying quality, cash-generative businesses with sustainable competitive advantages and strong balance sheets—those they believe can navigate macroeconomic uncertainty whilst compounding long-term value through disciplined capital allocation and consistent dividend growth. Although quality-focussed, the portfolio is managed with a flexible approach, avoiding style bets. This approach allows them to adapt to shifting market conditions without being anchored to a single investment style.

Despite a challenging macro backdrop—shaped by escalating trade tensions and geopolitical risks—the managers see an environment rich with opportunity, particularly in UK mid-caps. Over the past 12-18 months, they’ve steadily increased the Portfolio’s exposure to this segment, citing overlooked fundamentals and compelling valuations in names such as Inchcape.

Whilst BRIG has delivered positive absolute returns over the past 12 months—helped by strong stock selection, particularly in the financials sector—relative Performance has been more muted. The trust’s above-market exposure to mid-cap companies has acted as a headwind, with large caps significantly outperforming their smaller counterparts over the period; a key contributor to BRIG’s underperformance versus its benchmark.

Income-focussed investors may take comfort in the trust’s Dividend progression, however. The board proposed a 2.7% increase in BRIG’s FY 2024 dividend. Although the increase was not fully covered by earnings, BRIG continues to carry substantial revenue reserves—offering meaningful support in times of uncertainty. Whilst the headline yield may appear modest today, it’s important to note that its yield has compressed, in part, due to share price appreciation over the past year.