Share Name Share Symbol Market Type Share ISIN Share Description
Blackrock I&G LSE:BRIG London Ordinary Share GB0030961691 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 209.00p 208.00p 210.00p 209.00p 209.00p 209.00p 5,483 06:31:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 2.0 1.7 6.6 31.5 50.73

BlackRock Income Correction : Portfolio Update

14/06/2018 3:53pm

UK Regulatory (RNS & others)

The second paragraph of the commentary in the announcement released on 12 June 
2018 was incorrect. This has now been corrected. 
All information is at 31 May 2018 and unaudited. 
Performance at month end with net income reinvested 
                                   One    Three     One   Three      Five     Since 
                                 Month   Months    Year   Years     Years   1 April 
Share price                       4.1%     4.6%    2.8%  17.6%      48.9%     90.7% 
Net asset value                   3.3%     9.4%    4.6%   22.7%     56.6%     84.0% 
FTSE All-Share Total Return       2.8%     7.4%    6.5%   24.3%     45.4%     75.7% 
Source: BlackRock 
BlackRock took over the investment management of the Company with effect from 
1 April 2012. 
At month end 
Net asset value - capital only:                                       211.01p 
Net asset value - cum income*:                                        215.64p 
Share price:                                                          204.00p 
Total assets (including income):                                       GBP56.3m 
Discount to cum-income NAV:                                              5.4% 
Gearing:                                                                 1.3% 
Net yield**:                                                             3.2% 
Ordinary shares in issue***:                                       24,263,268 
Gearing range (as a % of net assets)                                    0-20% 
Ongoing charges****:                                                     1.1% 
* includes net revenue of 4.63 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 3.2% and includes the 2017 
interim dividend of 2.50p per share declared on 26 June 2017 and paid to 
shareholders on 1 September 2017 and the 2017 final dividend of 4.10p per 
share declared on 20 December 2017 and payable to shareholders on 9 March 
*** excludes 8,670,664 shares held in treasury 
**** Calculated as a percentage of average net assets and using expenses, 
excluding performance fees and interest costs for the year ended 
31 October 2017. 
Sector Analysis                                              Total assets (%) 
Banks                                                                     9.5 
Oil & Gas Producers                                                       9.2 
Pharmaceuticals & Biotechnology                                           7.7 
Support Services                                                          6.8 
Media                                                                     6.5 
Financial Services                                                        6.2 
Tobacco                                                                   5.9 
Non-Life Insurance                                                        5.1 
Industrial Engineering                                                    5.0 
Food Producers                                                            4.4 
General Retailers                                                         3.8 
Construction & Materials                                                  3.5 
Life Insurance                                                            3.5 
Household Goods & Home Construction                                       2.9 
Travel & Leisure                                                          2.8 
Food & Drug Retailers                                                     2.8 
General Industrials                                                       2.5 
Forestry & Paper                                                          1.9 
Chemicals                                                                 1.6 
Gas, Water & Multiutilities                                               1.4 
Software & Computer Services                                              1.0 
Fixed Line Telecommunications                                             0.1 
Net Current Assets                                                        5.9 
Total                                                                   100.0 
Ten Largest Equity Investments 
Company                                                      Total assets (%) 
Royal Dutch Shell 'B'                                                     5.9 
British American Tobacco                                                  5.0 
Unilever                                                                  4.4 
RELX                                                                      3.9 
Lloyds Banking Group                                                      3.7 
Rentokil Initial                                                          3.7 
John Laing Group                                                          3.3 
BP Group                                                                  3.3 
Ferguson                                                                  3.2 
AstraZeneca                                                               3.0 
Commenting on the markets, Adam Avigdori and David Goldman representing the 
Investment Manager noted: 
UK Equities delivered a 2.8% return during May as equity markets, with the 
exception of Europe ex-UK, continued to grind higher, albeit with increasing 
levels of volatility. Despite a difficult start to the year, a second 
consecutive positive month moved the FTSE All-Share into positive territory 
in the year to date, now up 1.9%. Geopolitical events continued to dominate 
headlines during the month, most notably in Italy, where the populist Five 
Star Movement and League Party struck a deal to form a coalition government, 
led by Giuseppe Conte. While remote in likelihood, 'Quitaly', serves as a 
reminder that challenges in relation to Europe are not confined to Brexit. 
President Trump scrapped a planned meeting between the US and North Korea, 
and trade tensions continue to rise as the US announced it would implement 
tariffs on US$50 billion of Chinese imports and impose steel and aluminum 
tariffs on imports from Canada, Mexico and EU. Eurozone growth came in as 
expected but inflation data disappointed. The Fed kept rates on hold but 
reiterated confidence in the U.S. inflation outlook while US unemployment hit 
the lowest level since April 2000. In the UK Q1 growth was unrevised at the 
disappointing +0.1% quarter-on-quarter which led to Sterling weakness. Oil & 
Gas was the strongest performing sector during May on the back of higher 
crude oil prices, while Financials led by banks were the weakest. 
Over the month the Company delivered a return of 3.3%, outperforming the FTSE 
All-Share which delivered a return of 2.8%. 
Having no exposure to Vodafone helped relative performance as the shares fell 
over the month. Italian competitor Iliad announced incredibly aggressive 
pricing which far undercuts Vodafone and competition in Spain also remains a 
risk. Additionally, the acquisition of Liberty's European assets was debt 
funded, leaving the business very highly leveraged. Rentokil continues to 
perform well after a recent trading update illustrated 11% total revenue 
growth. Their pest control division in particular has a long runway of growth 
supported by structural tailwinds, technology and a fragmented market with 
plenty of opportunity for acquisition. The company also boasts an impressive 
employee retention rate at 86%. Queuing and ticketing software provider, 
Accesso Technology, has had a strong start to the year driven by new business 
wins, geographic expansion and acquisitions. The company has strengthened its 
core operations in the leisure industry but is also broadening its horizons 
and moving into adjacent areas such as ski resorts, tours and live event 
TP ICAP released a disappointing statement with slower revenue growth, 
particularly in their Data and Institutional Services divisions. Increased 
volatility, which management expect to continue, will be a positive for the 
business. John Laing Group shares declined 1% over the course of the month 
which was a drag on performance given our large active holding in the 
company. Lloyds saw a slight share price decline over the month. They have 
announced plans to close around 100 branches as they adapt to technological 
developments and aim to become the leading digital bank. Over the longer term 
it is our preferred domestic UK bank with strong capital generation and is 
supported by a rising rate environment. 
During the month we purchased a new position in Barclays which is trading at 
a large discount to book value with improvements in cash generation and their 
capital position. We have added to British American Tobacco on share price 
weakness as well as to Prudential and Mondi. As competition for capital 
remains high, these trades were financed through sales in Derwent London and 
Sabre Insurance alongside a reduction in Direct Line, Shire and John Laing. 
The outlook for the UK economy is more uncertain given ongoing Brexit 
negotiations in contrast to the acceleration in growth seen elsewhere. 
However, we believe these Brexit fears have provided us with the opportunity 
to own high quality franchises at attractive valuations. The UK is a hugely 
international market that is supported by very strong corporate governance, 
shareholder interaction, regulation, tax and accounting laws and 
transparency. This renders the UK market a fantastic hunting ground for some 
high quality international (and domestic) franchises that chose to list on 
the UK market. 
We continue to like cash generative consumer staple companies, especially 
those exposed to the emerging market consumer given the improvement in the 
trading backdrop in key markets such as India and Brazil.  These companies 
often generate substantial cash flow which allows them to invest in 
innovation, marketing and distribution to ensure the longevity of their 
brands while also paying attractive and growing dividends to shareholders. We 
have also sought exposure to infrastructure and construction spend, both in 
the UK and overseas. US and European construction and infrastructure spend 
remains well below long-term averages and initiatives to boost this spend 
features prominently in politicians' manifestos. However, as the last few 
months have demonstrated, it is crucial to be selective when investing in 
these industries and to focus on the strong operators that provide a 
differentiated service and that boast a strong balance sheet. 
14 June 2018 

(END) Dow Jones Newswires

June 14, 2018 10:53 ET (14:53 GMT)

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