BlackRock Income and Growth Investment Trust Plc – Portfolio Update

The information contained in this release was correct as at 31 March 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 31 March 2026 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 -4.3% 2.7% 16.7% 28.1% 55.9% 178.7%
Net asset value -9.3% -1.1% 12.2% 29.9% 50.4% 173.7%
FTSE All-Share Total Return -6.7% 2.4% 21.5% 45.6% 69.3% 199.0%

Source: BlackRock

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

At month end

Sterling:

Net asset value – 240.22p
capital only:
Net asset value – 243.20p
cum income*:
Share price: 221.00p
Total assets £51.4m
(including
income):
Discount to cum 9.1%
-income NAV:
Gearing: 4.2%
Net yield**: 3.5%
Ordinary shares in 18,654,568
issue***:
Gearing range (as 0-20%
a % of net
assets):
Ongoing 1.15%
charges****:
* Includes net
revenue of 2.98
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 12.9
Pharmaceuticals & Biotechnology 10.8
Oil & Gas Producers 8.9
Support Services 5.1
Household Goods & Home Construction 5.0
General Retailers 5.0
Mining 4.6
Aerospace & Defence 4.4
Tobacco 4.2
Electronic & Electrical Equipment 3.4
Software & Computer Services 3.1
Nonlife Insurance 2.9
General Industrials 2.9
Electricity 2.6
Financial Services 2.6
Life Insurance 2.6
Industrial Engineering 2.4
Real Estate Investment Trusts 2.4
Food & Drug Retailers 2.4
Personal Goods 2.2
Food Producers 1.6
Net Current Assets 8.0
—–
Total 100.0
=====
Country Analysis Percentage
United Kingdom 88.0
United States 4.0
Net Current Assets 8.0
—–
100.0
=====

Top 10 Holdings Fund %
AstraZeneca 8.8
Shell 6.0
HSBC 4.3
British American Tobacco 4.2
Lloyds Banking Group 4.1
Standard Chartered 3.9
Reckitt Benckiser Group 3.9
Rolls-Royce Holdings 3.2
RELX 3.1
BP Group 2.9

Commenting on the markets, representing the Investment Manager noted:

Market summary:

Global equity markets came under pressure in March, driven primarily by an
energy shock rather than a deterioration in corporate fundamentals. Escalating
conflict in the Middle East pushed oil prices sharply higher, raising inflation
concerns and complicating the growth outlook. Markets responded by de-rating
valuations as discount rates rose and uncertainty increased, rather than
repricing earnings expectations. Despite the scale of the shock, headline equity
performance proved relatively resilient, reflecting sound underlying
fundamentals.

The macro backdrop grew more challenging as central banks struck a firmer tone,
and rate-cut expectations were pushed out. Financial conditions tightened, the
U.S. dollar strengthened and inflation risks returned to the forefront. While
economic data continued to point to expansion rather than recession, concerns
grew that these indicators lag the evolving geopolitical backdrop. Within
equities, the U.S. was comparatively resilient, energy outperformed and
leadership rotated away from crowded momentum trades. Elsewhere, regions more
exposed to imported energy – particularly parts of Europe and Asia – came under
greater pressure, while commodity-linked emerging markets proved more resilient.
Commodities sat at the centre of market dynamics, with oil driving the shock and
traditional hedges such as gold offering less protection late in the month.

In the UK, equities came under pressure during March as global risk sentiment
deteriorated sharply. Markets were dominated by the escalation of conflict in
the Middle East, which drove a surge in energy prices and reignited inflation
concerns, prompting investors to reassess the outlook for interest rates. Sector
performance was highly polarised, with energy stocks significantly outperforming
on higher oil and gas prices, while rate-sensitive areas such as consumer
discretionary, real estate and UK mid-caps lagged. The Bank of England held Bank
Rates at 3.75%, adopting a cautious tone as higher energy costs threatened to
keep inflation above target for longer. As a result, expectations for near-term
rate cuts were pushed further out.

Source: https://www.bankofengland.co.uk/monetary-policy-summary-and
-minutes/2026/march-2026

Stock comments:

3i Group detracted from performance as the shares fell sharply at the end of the
quarter due to a disappointing Capital Markets update. France like-for-like
sales that had shown signs of stabilisation weakened again in February and March
leading to a more cautious guide for the full year while the highly anticipated
US entry underwhelmed. We believe that the US opportunity offers exciting
optionality while Action in Europe should still grow mid-teens, yet the shares
now trade on a large discount to the group’s net asset value.

Reckitt Benckiser detracted as the shares gave back earlier gains, having
benefited at the start of the year from a shift by investors towards simpler,
defensive businesses amid broader market uncertainty. Sentiment weakened
following a cautious company update, where a modest earnings downgrade driven by
a slightly higher tax assumption overshadowed otherwise stable underlying
operations. This, combined with ongoing investor caution around the pace of
volume recovery in Hygiene and Nutrition, weighed on the shares during the
month, despite the company’s defensive characteristics remaining intact.

Weir Group also detracted from relative returns during the month, as the shares
pulled back following a strong run earlier in the year. Sentiment weakened on
concerns around the timing of mining capital expenditure and potential delays to
customer investment decisions, particularly in a more uncertain macro and
geopolitical environment. While underlying demand drivers linked to energy
transition and mine efficiency remain intact, near-term caution from investors
weighed on the share price over the period.

An underweight position in Unilever contributed as the shares lagged the market
during the month. Investor caution around consumer demand persisted,
particularly in the context of higher prices and pressure on household budgets.
Sentiment was further weighed down late in March following the announcement of
the proposed combination of Unilever’s Foods division with McCormick, with the
scale and structure of the transaction prompting near-term concerns around
execution risk and capital allocation, reinforcing the stock’s relative
underperformance and supported our underweight positioning.

Rentokil contributed to relative performance as the shares proved resilient,
supported by steady trading and continued confidence in margin recovery as
integration benefits from recent acquisitions feed through. This was helped by
the release of full-year results early in the month, which highlighted solid
cash generation and gradual improvement in North America, and a smooth
transition to a new CEO in mid-March.

Changes:

Given the price volatility over the month caused by both idiosyncratic and
geopolitical factors, we made changes to the fund taking advantage of the price
dislocation, focusing on where we have greatest conviction while recognising
where our theses had changed and, as per our sell discipline, necessitated
sales.

We added to our position in British American Tobacco following recent share
price weakness and after a company meeting. The holding enhances portfolio yield
and capital growth potential, underpinned by a stock-specific investment case
that is relatively uncorrelated to the broader economic cycle. We also added to
3i Group following recent weakness, reflecting increased confidence in the cost
profile and execution of Action’s US expansion plans, while pricing actions and
recent competitor exits support an improving outlook for France.

We exited ICG given the growing headwinds facing private credit, which are
likely to be exacerbated by the conflict with Iran and its impact on confidence.
Even in a scenario of de-escalation, we see limited scope for a near term
rebound, with concerns around private credit likely to continue to weigh on the
sector. We exited our position in Ashmore after recent share price appreciation,
choosing to realise gains and redeploy capital elsewhere.

We made two sales for stock specific reasons selling Melrose and Tate & Lyle. We
sold Melrose after a weak set of results, with underlying cash generation
materially weaker than expected once one-off items are adjusted for, raising
concerns around the quality of future cash flows. Finally, we exited Tate & Lyle
as execution continues to disappoint following another unexpected cut to 2027
guidance; against an uncertain backdrop and the risk of higher inflation, we
expect earnings to remain under pressure.

Outlook:

The immediate outlook for the global economy, particularly for 2026, will
largely be shaped by the duration of the war in Iran and the cost of energy, a
function of what happens with the Strait of Hormuz and the severity of the
damage to local energy and refinery facilities.  With energy prices rising
significantly, there are likely to be negative growth impacts and inflationary
pressures, notably for those economies which are net importers of energy
including parts of Asia, Europe and the UK, whilst the US is more insulated
given its domestic resources.  The scale of these impacts is linked to the
duration of the conflict. The outlook for inflation will impact the path for
rates with the rate cutting cycle in the developed world at risk.  The wide
range of outcomes and President Trump’s unpredictable policy stance suggests
volatility across equity and bond markets will stay elevated. Against this
backdrop, we continue to favour companies with well invested foundations,
durable competitive advantages and pricing power, while looking for
opportunities created by heightened market swings.

In the UK and Europe, the spectre of an energy shock has reared its head once
again and exacerbated weak fiscal backdrops and low consumer and business
confidence. In the UK, the impact has been most evident in the path for interest
rates, ending the quarter with the bond markets pricing three rate hikes having
entered the 2026 pricing in two cuts. With a domestic backdrop that had showed
signs of stabilisation in confidence and activity, this is clearly an unhelpful
backdrop ahead of the May local elections which may precipitate further
political unrest. In Europe, Germany’s fiscal push, centered on defence and
infrastructure, had boosted economic momentum but it remains unclear whether
this will be sustained. In the US, gasoline price rises are likely to contribute
to inflation and weigh on consumer sentiment though the overall economic impact
should be limited given domestic energy supply and a resilient economic outlook
supported by a significant capital expenditure. Meanwhile, China’s sensitivity
to rising energy prices is mitigated by significant stockpiles and the
substantial investment in renewables made in recent years. However, domestic
demand remains subdued, with recent US trade tariff announcements adding to the
uncertainty.

Notwithstanding the uncertainty in the UK, this energy shock is somewhat
different to 2022, with rates being substantially higher and domestic
valuations, notably amongst rate sensitives being lower. With relatively strong
balance sheets amongst our portfolio companies, we would anticipate further
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.

20 April 2026

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