27 Sep 2021
BlackRock Income & Growth - Overview
BlackRock Income & Growth (BRIG) is an all-cap strategy which seeks to balance its stylistic exposure whilst looking to grow both capital and income over the long term through investment in UK equities. BRIG has been run by the UK equity income team at BlackRock since April 2012. Whilst the managers, Adam Avigdori and David Goldman, utilise a consistent stock analytical approach across BRIG and their open-ended products, they look to utilise the closed-ended structure of BRIG to incorporate less liquid, smaller, companies where they perceive superior long-term potential. As discussed in the Dividend section, BRIG has maintained or grown its dividend every year since BlackRock took over management of the trust (financial year 2012). The trust retains sizeable revenue reserves to support the dividend in the near term but, the managers note that, in any event, they are seeing income streams starting to recover. Despite this, BRIG remains on a substantial discount relative to its own history and the wider sector. A majority of the portfolio continues to be allocated towards ‘income generators’, part of a structural element to portfolio construction. This is one of three buckets the managers categorise holdings within. As discussed in the Portfolio section, they identify a number of themes across their portfolio at present including ‘cyclical and industrial tailwinds’, ‘undervalued domestic companies’, and ‘self-help and restructuring’, whilst avoiding highly levered companies and those facing structural challenges. The managers have deployed a significant proportion of the trust’s current gearing facilities at present, reflecting their optimistic outlook for the UK market and the breadth of stock ideas they are identifying.
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BlackRock Income & Growth - Overview
BlackRock Income and Growth Investment Trust PLC GBP (BRIG:LON) | 186 0 0.0% | Mkt Cap: 37.4m
- Published:
27 Sep 2021 -
Author:
Thomas McMahon, CFA -
Pages:
8
BlackRock Income & Growth (BRIG) is an all-cap strategy which seeks to balance its stylistic exposure whilst looking to grow both capital and income over the long term through investment in UK equities. BRIG has been run by the UK equity income team at BlackRock since April 2012. Whilst the managers, Adam Avigdori and David Goldman, utilise a consistent stock analytical approach across BRIG and their open-ended products, they look to utilise the closed-ended structure of BRIG to incorporate less liquid, smaller, companies where they perceive superior long-term potential. As discussed in the Dividend section, BRIG has maintained or grown its dividend every year since BlackRock took over management of the trust (financial year 2012). The trust retains sizeable revenue reserves to support the dividend in the near term but, the managers note that, in any event, they are seeing income streams starting to recover. Despite this, BRIG remains on a substantial discount relative to its own history and the wider sector. A majority of the portfolio continues to be allocated towards ‘income generators’, part of a structural element to portfolio construction. This is one of three buckets the managers categorise holdings within. As discussed in the Portfolio section, they identify a number of themes across their portfolio at present including ‘cyclical and industrial tailwinds’, ‘undervalued domestic companies’, and ‘self-help and restructuring’, whilst avoiding highly levered companies and those facing structural challenges. The managers have deployed a significant proportion of the trust’s current gearing facilities at present, reflecting their optimistic outlook for the UK market and the breadth of stock ideas they are identifying.