BlackRock Sustainable American Income Trust NAV increased by 5.9%

BlackRock

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

All information is at 31 October 2022  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 value5.9%0.3%1.3%7.4%33.1%54.0%
Share price2.3%-2.7%-4.1%3.6%21.0%53.5%
Russell 1000 Value Index6.9%3.1%5.6%10.7%38.9%63.3%

At month end

Net asset value – capital only:212.35p
Net asset value – cum income:213.27p
Share price:197.50p
Discount to cum income NAV:7.4%
Net yield1:4.1%
Total assets including current year revenue:£171.1m
Gearing:2.5%
Ordinary shares in issue2:80,229,044
Ongoing charges3:1.1%

1 Based on four quarterly dividends of 2.00p per share declared on 22 March 2022, 11 May 2022, 4 August 2022 and 2 November 2022 for the year ended 31 October 2022 and based on the share price as at close of business on 31 October 2022.

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

³ The Company’s ongoing charges calculated as a percentage of average daily net assets and using the management fee and all other operating expenses excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items for the year ended 31 October 2021.

Sector AnalysisTotal Assets (%)
Financials22.0
Health Care20.5
Information Technology13.8
Consumer Discretionary10.0
Energy8.7
Industrials5.6
Consumer Staples5.4
Communication Services4.5
Materials4.3
Utilities4.2
Real Estate1.3
Net Current Liabilities-0.3
—–
100.0
=====
Country AnalysisTotal Assets (%)
United States81.3
United Kingdom7.9
Japan3.5
France2.9
Australia2.0
Canada1.7
Denmark1.0
Net Current Liabilities-0.3
—–
100.0
=====
Top 10 HoldingsCountry% Total Assets
SanofiFrance3.0
Wells FargoUnited States2.9
Willis Towers WatsonUnited States2.9
Verizon CommunicationsUnited States2.8
Cisco SystemsUnited States2.8
Laboratory Corporation of AmericaUnited States2.8
PepsicoUnited States2.6
CignaUnited States2.6
Cognizant Technology SolutionsUnited States2.6
American InternationalUnited States2.6

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

For the one-month period ended 31 October 2022, the Company’s NAV increased by 5.9% and the share price by 2.3% (all in sterling). The Company’s reference index, the Russell 1000 Value Index, returned +6.9% for the period.

The largest contributor to relative performance was due to stock selection within the health care sector. Specifically, selection decisions in the health care providers and services industry proved to be an additive contributor to relative performance. Our underweight allocation to communication services also increased relative results, mainly due to our decision to not invest within the interactive media and services industry. Other notable contributors during the period included our underweight allocation to the real estate sector.

The largest detractor from relative performance was due to stock selection in energy. Most notably, our selection decisions in oil, gas and consumable fuels weighed on relative returns. Investment decisions within industrials also hurt relative performance, mainly due to selection decisions within machinery. Other notable detractors for the period included stock selection in the financials and materials sectors.

Transactions

During the month, the Company initiated two new purchases in Kraft Heinz and Eli Lilly. Conversely, the Company exited its positions in Axalta Coating Systems, Alcon AG and Lamb Weston.

Positioning

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

Source: BlackRock.

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