BlackRock Sustainable American Income Trust NAV increased by 4.5% and the share price by 3.4% in December

BlackRock

BlackRock Sustainable American Income Trust plc (LON:BRSA) has announced its latest portfolio update.

All information is at 31 December 2021  and unaudited.

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Performance at month end with net income reinvested
 


 
One
Month
Three
Months
Six
Months
One
Year
Three
Years
Five
Years
Net asset value4.5%6.3%8.7%24.0%48.5%52.4%
Share price3.4%7.5%12.5%27.8%44.9%48.8%
Russell 1000 Value Index3.8%7.3%9.1%26.3%53.1%54.9%

At month end

Net asset value – capital only:208.82p
Net asset value – cum income:209.36p
Share price:203.25p
Discount to cum income NAV:2.9%
Net yield1:3.9%
Total assets including current year revenue:£168.0m
Gearing:2.3%
Ordinary shares in issue2:80,229,044
Ongoing charges3:1.1%

1 Based on four quarterly interim dividends of 2.00p per share declared on 23 March 2021, 5 May 2021, 5 August 2021 and 3 November 2021 for the year ended 31 October 2021, and based on the share price as at close of business on 31 December 2021.

² Excluding 20,132,261 ordinary shares held in treasury.

³ Ongoing charges represent the management fee and all other operating expenses excluding interest as a % of average shareholders’ funds for the year ended 31 October 2020.

Sector AnalysisTotal Assets (%)
Financials24.0
Health Care17.9
Information Technology14.8
Consumer Discretionary11.2
Materials5.7
Utilities5.5
Industrials5.4
Communication Services5.3
Energy5.2
Consumer Staples4.5
Real Estate0.9
Net Current Liabilities-0.4
—-
100.0
=====
Country AnalysisTotal Assets (%)
United States82.5
Japan4.6
United Kingdom4.3
France2.5
Canada1.9
Switzerland1.7
Australia1.2
Germany1.0
Denmark0.7
Net Current Liabilities-0.4
—–
100.0
=====
Top 10 HoldingsCountry% Total Assets
Cisco SystemsUnited States4.0
AstraZenecaUnited Kingdom3.2
ComericaUnited States3.1
Cognizant Technology SolutionsUnited States3.0
Wells FargoUnited States2.9
SS&C Technologies HoldingsUnited States2.7
Zimmer BiometUnited States2.6
KomatsuJapan2.6
American InternationalUnited States2.6
AnthemUnited States2.6

Tony DeSpirito, David Zhao and Lisa Yang, representing the Investment Manager, noted:

For the one-month period ended 31 December 2021, the Company’s NAV increased by 4.5% and the share price by 3.4% (all in sterling). The Company’s reference index, the Russell 1000 Value Index, returned +3.8% for the period.

The largest contributor to relative performance was selection decisions in the information technology sector. Specifically, an overweight exposure to the communications equipment industry, in addition to stock selection within software, helped relative returns. Within health care, selection decisions boosted relative results, including stock selection within health care providers and services. Other contributors during the period included stock selection within the materials sector.

The largest detractor from relative performance was stock selection in the consumer discretionary sector. Specifically, stock selection in household durables and automobiles dampened relative results. Our allocation decisions in real estate also hurt relative returns with underexposure to REITs proving costly. In consumer staples, our allocation decisions in household products also weighed on relative returns. Other modest detractors during the period included allocation decisions within food products and stock selection in beverages.

Transactions

Notable new purchases in the portfolio during the month included Laboratory Corporation of America, Hess and MTU Aero Engines. Conversely, the Company exited its positions in Quest Diagnostics, Equinor and Fox and trimmed its positions in Cisco Systems, Cognizant Technology Solutions and Lowe’s.

Positioning

As of the period end, the Company’s largest overweight positions relative to the reference index were in the consumer discretionary, information technology and financials sectors. The Company’s largest underweight positions relative to the reference index were in the industrials, real estate and consumer staples sectors.

Source: BlackRock.

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