BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC: Statement re Discount Control
BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC: Statement re Discount Control BlackRock Income & Growth Investment Trust plc
Following the appointment of BlackRock Investment Management (UK) Limited ("BlackRock") as the Company's investment manager last year, the Board has decided to use its share buyback powers with the objective of ensuring that the Company's share price trades at or around NAV in normal market conditions. Any shares repurchased by the Company will be held in treasury, and may subsequently be reissued to satisfy market demand. The Board's current policy of not buying shares to hold in treasury at a discount of less than 4% will be amended to enable the Company to buy at any discount to estimated net asset value, including discounts of less than 4%. Any re-issue of treasury shares will only be at a premium to the estimated NAV at the time of issue.
Jonathan Cartwright, the Company's Chairman, said "The Board and BlackRock are committed to building the Company to deliver both capital and dividend growth for shareholders over the long term. This policy was underlined by the Board's recent proposal to increase the final dividend for 2012, the first increase for three years. The revised buyback policy should prove attractive to new shareholders and provide reassurance to existing investors who should see an improvement in liquidity in the Company's stock."
Nick McLeod-Clarke, who jointly manages the Company's portfolio alongside Adam Avigdori, added: "We were delighted to have been appointed to manage an investment trust portfolio in the UK Growth and Income sector. The UK closed end fund structure is ideally suited to provide shareholders with sustainable growth in income, given the flexibility to smooth payouts through use of reserves and the option to employ gearing. Our approach to portfolio construction is to blend higher yielding shares with those which have the potential for significant capital growth. This approach is enhanced by the ability to employ modest levels of gearing, when potential returns on investment exceed financing costs."
Simon White, Head of Investment Trusts, BlackRock Investment Management (UK) Limited - Tel: 020 7743 5284 OR William Simmonds or Edward Gibson-Watt, Corporate Broker, JPMorgan Cazenove Limited - Tel: 020 7588 2828
29 January 2013
-0- Jan/29/2013 07:00 GMT