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
  +2.00p +1.06% 190.50p 190.00p 191.00p 191.00p 185.50p 188.50p 4,064 15:50:09
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 2.1 1.7 7.1 26.9 45.81

BlackRock Income Correction : Portfolio Update

14/02/2019 9:39am

UK Regulatory (RNS & others)

The release has been corrected as the original release included an erroneous 
reference to a holding in LEG Immobilien, which is not held in the portfolio. 
This wording has been removed. There are no other changes to the announcement. 
All information is at 31 January 2019 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                       6.8%     2.7%      -6.7%    19.5%      35.7%     77.9% 
Net asset value                   4.2%    -1.7%      -6.1%    15.6%      35.5%     64.8% 
FTSE All-Share Total Return       4.2%    -1.4%      -3.8%    28.5%      31.2%     62.7% 
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:                                             185.65p 
Net asset value - cum income*:                                              190.90p 
Share price:                                                                188.00p 
Total assets (including income):                                             GBP49.8m 
Discount to cum-income NAV:                                                    1.5% 
Gearing:                                                                       2.5% 
Net yield**:                                                                   3.7% 
Ordinary shares in issue***:                                             24,004,668 
Gearing range (as a % of net assets)                                          0-20% 
Ongoing charges****:                                                           1.1% 
* includes net revenue of 5.25 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 3.7% and includes the 2018 
final dividend of 4.40p per share declared on 20 December 2018 and to be paid 
to shareholders on 19 March 2019 and the 2018 interim dividend of 2.50p per 
share declared on 25 June 2018 and paid to shareholders on 3 September 2018. 
*** excludes 8,929,264 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 
Sector Analysis                                                    Total assets (%) 
Oil & Gas Producers                                                            11.2 
Banks                                                                           8.3 
Pharmaceuticals & Biotechnology                                                 7.4 
Media                                                                           7.0 
Food Producers                                                                  6.3 
Support Services                                                                6.3 
Financial Services                                                              6.2 
Life Insurance                                                                  6.1 
Household Goods & Home Construction                                             5.6 
Tobacco                                                                         4.0 
Industrial Engineering                                                          3.9 
Food & Drug Retailers                                                           3.8 
Travel & Leisure                                                                3.8 
Mining                                                                          3.2 
Gas, Water & Multiutilities                                                     2.6 
Nonlife Insurance                                                               2.2 
Mobile Telecommunications                                                       1.6 
General Retailers                                                               1.2 
Electronic & Electrical Equipment                                               1.0 
Construction & Materials                                                        0.9 
Personal Goods                                                                  0.8 
Chemicals                                                                       0.6 
Software & Computer Services                                                    0.3 
Net Current Assets                                                              5.7 
Total                                                                         100.0 
Ten Largest Equity Investments 
Company                                                            Total assets (%) 
Royal Dutch Shell 'B'                                                           6.5 
RELX                                                                            5.0 
Unilever                                                                        4.0 
Reckitt Benckiser                                                               4.0 
Tesco                                                                           3.8 
Lloyds Banking Group                                                            3.8 
GlaxoSmithKline                                                                 3.8 
Prudential                                                                      3.7 
AstraZeneca                                                                     3.7 
BP Group                                                                        3.6 
Commenting on the markets, Adam Avigdori and David Goldman representing the 
Investment Manager noted: 
UK equities made a positive start to 2019, rebounding from the market turmoil 
witnessed in the fourth quarter of 2018. The FTSE All-Share returned 4.2% in 
January, marking the best start to the year since 2013. Global economic data 
remained fragile. China's Q4 GDP growth of 6.4% is the lowest level since 
2009, and Eurozone activity continued to slow, however remains in 
expansionary territory. Equity markets globally, however, shrugged off the 
lacklustre economic data. In the US, the tone from the Federal Open Market 
Committee has become increasingly dovish, recognising the increasing global 
sensitivities and, after 35 days, the US Government shutdown came to an end. 
Decelerating growth in China is being carefully managed through a combination 
of both monetary and fiscal policy, with the central bank cutting reserve 
requirements to sure up lending and growth. Meanwhile, US/China trade talks 
have shown signs of a more constructive approach from both sides. Politics 
were once again front and centre in the UK, first with MPs rejecting the 
Prime Minister's Brexit deal by a much larger margin than expected, and then 
with Teresa May surviving the subsequent vote of no confidence. MPs later 
passed the Brady amendment, giving the Prime Minister a mandate to continue 
negotiations on the withdrawal agreement. Defensive sectors such as 
telecommunications and pharmaceuticals underperformed, which resulted in 
large-caps trailing small and mid-caps during the month. 
Over the month the Company delivered a return of 4.2%, performing in line 
with the FTSE All-Share which also delivered a return of 4.2%. 
Tesco was the best performing of the "Big-Four" supermarkets over the 
Christmas period, reporting strong like-for-like sales in its UK stores. The 
"Exclusively at Tesco" range, which was launched in response to prices 
charged at discount supermarkets Aldi and Lidl, has proved to be very 
popular. The company is due to make changes to significantly reduce its cost 
base as they simplify the way they serve customers. We believe that Tesco is 
a relative winner in a highly competitive UK food retail market, with a 
strong management team executing on self-help opportunities. United Utilities 
saw a share price rise as the water regulator agreed to a fast track of their 
business plan. The company has committed to reducing the real cost of water 
bills and to cutting water leakage. Separately, the company has been named as 
one of Britain's healthiest workplaces in 2018. Associated British Foods was 
boosted by a strong Christmas trading period for Primark, which saw a rise in 
both sales and operating margins. Primark continues to take market share in 
the UK and has been growing through new store openings and existing space 
expansion. Internationally, the value fashion retailer is also showing strong 
Hiscox shares fell in January despite no stock specific news. We believe that 
the performance was largely due to style reversal (Hiscox performed well in 
relative and absolute terms in Q4) and to currency movements (strengthening 
Sterling is a translation headwind for the business which has a number of US 
Dollar denominated revenue streams). Unilever reported earnings in line with 
expectations, but with a change in the mix. The company appears to be taking 
a slight change in tack with recent results reporting growth deceleration and 
margin acceleration. Additionally, competitors are performing strongly, and 
it appears that Unilever may be losing some market share. Reckitt Benckiser 
has announced the departure of their CEO after 32 years service for the 
company. The separation of business units will continue to give Reckitt 
Benckiser optionality. The shares currently offer a high free cash flow 
yield, which we believe is sustainable, and offers valuation support as the 
shares are trading at a large discount, both to their own history and to the 
wider sector. 
During the month we purchased new positions in London Stock Exchange Group, 
which we see as benefiting from structural revenue growth and margin 
expansion, and Homeserve. We have also added to various other positions, 
including Royal Dutch Shell, Prudential and Reckitt Benckiser. We have 
reduced exposure to John Laing, United Utilties and Unilever and have sold 
our holding in paper and packaging business Mondi. 
We are broadly constructive on global markets and expect continued global 
growth, albeit in a less synchronised fashion across the G7 nations and at a 
lower level than in recent past. The trend of steady growth has provided a 
solid backdrop for equity market returns, which have also been helped by 
loose financial conditions from supportive governments and central banks. 
However political uncertainty is rising, which combined with tightening 
financial conditions (led by the Federal Reserve) means that we expect 
volatility to return to markets. This provides us, as active managers of a 
concentrated portfolio, with a great opportunity to identify high-quality 
cash generative businesses, with robust balance sheets, that can weather 
various market cycles and help to deliver long term capital and income growth 
for our clients. 
We continue to like cash generative consumer staple companies, especially 
those exposed to the emerging market consumer given the prevalent demographic 
trends in certain markets. 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 whilst at the same time we are watching for signs of 
overheating in the US and monitoring the natural slowdown in China. US 
construction spend remains well below long-term averages and initiatives to 
boost this spend features prominently on the political agenda. We also note 
that inflationary pressures are starting to build and therefore we seek those 
companies with sufficient pricing power and efficiency potential to withstand 
rising costs. As the last few months have demonstrated, it is crucial to be 
selective and to focus on those companies that are strong operators, that 
provide a differentiated service or product and that boast a strong balance 
14 February 2019 

(END) Dow Jones Newswires

February 14, 2019 04:39 ET (09:39 GMT)

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