BlackRock Income and Growth Investment Trust Plc - Portfolio Update

The information contained in this release was correct as at 31 October 2025. 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 October 2025 and unaudited.

 

Performance at month end with net income reinvested

 

 

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

 

At month end

Sterling:

 

Commenting on the markets, representing the Investment Manager noted:

 

Market Summary:

 

October was broadly positive for global equities, though volatility persisted amid geopolitical and macroeconomic uncertainty. The month opened with strong gains across major US indices: the S&P 500 and Nasdaq hit record highs, supported by broad-based strength and small-cap outperformance as investors embraced a risk-on stance.

 

Markets largely shrugged off early political noise from a partial US government shutdown, but mid-month saw sharp declines after tariff threats and cancelled talks between the US and China reignited trade tensions. These fears were compounded by anxiety around US regional banks and credit concerns, which triggered a global bank sell-off halfway through the month. Sentiment later improved as US-China negotiations resumed, and US inflation data came in lower than expected. Q3 earnings also remained robust, with technology and semiconductor stocks leading gains. By month-end, US equities closed near all-time highs, with the S&P 500 up roughly 2.3%, supported by optimism around Federal Reserve policy and easing inflation pressures.

 

UK equities mirrored this resilience, with the FTSE 100 setting successive record highs and the FTSE All-Share advancing about 3.7%, outperforming most developed peers. AstraZeneca's surge early in the month and strength in mining stocks - helped by gold prices - provided tailwinds, while falling gilt yields supported rate-sensitive sectors. Softer inflation prints and dovish commentary from Bank of England Governor Andrew Bailey fuelled expectations of a December rate cut, even as macro signals remained mixed: inflation stayed above target at 3.8%, GDP growth was minimal, and government borrowing hit its highest level since 2020. Chancellor Rachel Reeves signalled higher taxes and spending restraint in the upcoming November Budget to rebuild fiscal headroom, alongside plans to accelerate investment through planning reforms.

   

Overall, developed market equities ended October higher, supported by easing inflation, resilient earnings, and optimism around trade policy. However, looking forwards, valuations now reflect much of the good news, leaving little margin for error as geopolitical risks, record fiscal deficits and tariff-related inflation pressures remain live concerns heading into year-end.

 

Stock comments

 

The top contributor for the month was Next , which delivered a standout performance in October with full-price sales rising by 10.5% year-over-year, significantly ahead of its +4.5% guidance. This outperformance prompted the company to upgrade both its Q4 sales guidance and full-year profit before tax forecast. The primary growth engine continues to be the international online segment, which surged by 38.8%, far exceeding the +19.4% guidance. This was driven by a 50% increase in digital marketing spend, double the previously planned 25%, as management capitalized on strong returns from performance marketing channels . Standard Chartered was another top contributor, the company beat earnings forecasts through the month. Their Wealth channel remains a standout and guidance has been upgraded for revenue growth to the top end of the previously guided 5-7% range. Both NII and fees are ahead of expectations by 2-3%, Weir Group's shares performed well through the month, ticking up into their Q3'25 trading update at the start of November. Results were as expected with FY25 guidance reiterated and commentary remains encouraging, however management noted a fx headwind to continue through Q4.

 

RELX was the top detractor during the period, with shares continuing to de-rate amid rising investor concerns that the company may be vulnerable to disruption from artificial intelligence. Although RELX later issued a positive trading update confirming full-year guidance and reiterating its improving growth trajectory, the stock remained under pressure and continued to pull back through the month. ICG has been under pressure amid growing concerns about a potential private credit default cycle, following a recent default on one of its loans. Tate and Lyle was the third largest detractor for the month after the company released a profit warning pointing to a slowdown in market demand in the past 2 months. This has led to lower revenues in Americas and mid-single digit declines in EMEA compared to initial guidance.

 

 

Changes

 

We have started a position in Babcock through the month, which appears well positioned to deliver further upgrades driven by international marine orders, growth in its nuclear division and exposure to NATO's rearmament and training initiatives. We added to Rolls-Royce as we see potential for the company to exceed expectations over the next 12-18months, most notably from a combination of continued improvement in time on wing initiatives, growing contribution from DC revenues in power systems, and a pick-up in Defence orders while SMRs offer longer-term optionality. To offset this, we trimmed BAE as we see Babcock and Rolls-Royce as having greater upside at present given BAE's improvement, while significant, will be slower to materialise.

 

We also trimmed Weir Group on recent strength. High copper and gold prices should support increased activity and there is still significant production growth targeted by the copper producers which combined with Weir's move into software solutions should provide plenty of opportunities for growth.

 

Outlook

 

The outlook for investment markets continues to be driven by a complex interplay of elevated geopolitical uncertainty, easing monetary policy and strong thematic winds in AI and the defence and financials sectors. 1H25 saw global markets fall sharply as tariffs were threatened only to be followed by an impressive recovery as proposed tariff levels were lowered and their implementation delayed. However, tariffs remain a key source of market volatility with the potential for outsized impacts on specific industries and companies. Expectations of Fed rate cuts have consistently been pushed out this year. US President Trump's unpredictability, whether tariff related or more generally, suggests volatility in both equity and bond markets is likely to remain elevated. These factors have also driven weakness in the US Dollar impacting companies with USD earnings. Our response is to focus on those companies that have strong and sustainable competitive advantages alongside sufficient pricing power to navigate these uncertain times while seeking opportunities that may result from elevated volatility in markets.

 

The outlook for Europe is buoyed by a combination of rate cuts by the ECB (from 3.0% to 2.0%) and significant fiscal expansion from Germany with an emphasis on defence and infrastructure spending. This has already led to the significant outperformance of European defence exposed companies though the question is whether this spend stimulates economic activity more broadly in Germany and then Europe as a whole. In our conversations with corporates, those exposed to highlighted industries, such as defence, are very optimistic, yet the outlook more generally suggests stabilisation rather than anything more for now. Meanwhile, China continues to fight weak domestic demand and deflationary pressures with a broad range of fiscal and monetary tools with limited success to date; the uncertainty created by US tariffs clearly hampering their efforts.

 

In the UK, the Labour government seeks to thread the needle of stimulating growth while preserving fiscal credibility and adhering to its election pledges, a challenge not helped by external pressures such as US tariffs. Meanwhile, UK savings rates remain elevated and real wages continue to grow highlighting the potential for UK economic recovery when consumer and business confidence improves. Whilst the UK's hard data has showed stability, the lack of visibility ahead of the Autumn budget restrains business confidence and risk appetite.  

 

The UK stock market remains very depressed in valuation terms relative to other developed markets offering double-digit discounts across a range of valuation metrics. This valuation anomaly saw further reactions from UK corporates who continue to use excess cashflows to fund buybacks. Combining this with a dividend yield of 3.2% (FTSE All Share Index yield as at end of October 2025; source: FT), the cash return of the UK market is attractive in absolute terms and higher than other developed markets. This valuation anomaly has also been evidenced by the continuation of inbound M&A for UK listed companies. Although we anticipate further volatility ahead, we believe that risk appetite will return and opportunities are emerging. We have identified several potential opportunities with new positions initiated throughout the year in both UK domestic and midcap companies.

 

We continue to focus the portfolio on cash generative businesses that we believe offer durable, competitive advantages as we believe these companies are best placed to drive returns over the long term. Whilst we anticipate economic and market volatility will persist throughout the year, we are excited by the opportunities this will likely create; by seeking to identify the companies that strengthen their long-term prospects as well as attractive turnaround situations.

 

 

 

 

 

 

24 November 2025