Can being wee deliver big for BlackRock Income & Growth


#1

Originally published at: http://whichinvestmenttrust.com/can-being-wee-deliver-big-for-blackrock-income-growth/
It’s one of the smallest trusts in its sector but managed by the words largest asset management group, and following strong performance since a change of management three years ago, I’ve been taking a closer look at the trust and considering its prospects. Fast Facts New management and investment style in place for over two…


#2

Like most people here I had never heard of this trust but there again Blackrock don’t exactly come to mind when one thinks of investment trusts. They have got the frontiers and mining funds but it’s not ETFs so they’re not much interested I would say.

I think if the Board wants to grow this they should switch to a manager with some ambition with investment trusts like your JP Morgan / Henderson / Bailie Giford / Finsbury’s of this world. I bet Blackrock management would be horrified if they knew it even existed.


#3

I wonder if they’ve given any indication of if they will grow it? I think it looks like a pretty interesting fund.

It’s different from many fellow income funds, though I’m surprised they don’t make greater use of gearing.

I won’t invest right not but I’ve added it to my watch list to see what they do here. If they start issuing their treasury shares that would be an encouraging sign they’re doing something with it.


#4

Yeah I agree with you there @berkely. It does look interesting but I want to see them do more with it to grow it.

I like their free cash flow investment style, though sometimes you wonder if they really do stick to what they’re saying, and not just telling investors what they’d like to hear.

I’m interested in how they divide their portfolio with 10% in turnarounds, 20% in growth stocks and the reminder in income. It sounds like a pretty sensible strategy because growth companies become tomorrows income companies,and getting value investments right does well in the long run.

I might jump ship an put a little bit of my ISA in this and see how it does.


#5

It is nice to see smaller trusts like this getting some coverage though I agree with what others have said about Blackrock needing to do more to grow this because it is small.

Still, if it keeps performing well over the next year or two that should attract more investors which should see the discount shrinking.

I am surprised they don’t use gearing though with it being so cheap, it should be an easy win for an income manager.


#6

It is surprisingly small and I don’t think Blackrock have an obvious candidate to merge it with in the way Henderson did recently with their global trust, so maybe someone else should have a go at it.


#7

I think you need to be a little bit patient @citygirl. The management are doing all the right things, and if they continue to deliver good performance they will be in a stronger position to grow the fund, which I’m sure they would like to do.

It is one I will watch over the next year or so. I agree with @smithy101 that it is nice to see some of these smaller trusts getting some coverage, especially as in this case this one is worth knowing about.