Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Marketing Material
BlackRock Investment Trusts | BlackRock American Income Trust
Hello, I'm Muzo Kayacan, Portfolio Manager for the BlackRock American Income Trust, a fund that seeks to combine an innovative approach to investing with a steady income stream.
The BlackRock American Income Trust invests in US equities and is the UK’s first and only AI-powered investment trust*. It gives you diversified access to leading companies beyond the usual headline-grabbing tech giants.
Our systematic approach uses big data and cutting-edge AI insights with the aim to uncover fundamentally strong US companies currently overlooked or undervalued by the market. Think of it as having an army of virtual analysts scouring the globe, reading thousands of documents every day, monitoring the news, social media, consumer transactions, hiring trends, economic data… if we find any information that can predict company fundamentals and stock prices, we incorporate it into our models to help identify new investment opportunities.
However, it's not just algorithms operating independently; our expert team oversees the research, portfolio construction, risk management and trading processes.
[On screen] Risk management cannot fully eliminate the risk of investment loss.
Our approach seeks to deliver both long-term capital appreciation and a steady income - paying dividends equivalent to 6% annually.
The extensive use of technology means that we can provide an active approach to picking stocks at a low cost with a management fee of 35 basis points, so can you keep even more of your returns.
Whether you're building wealth for the future or looking for income, BlackRock American Income Trust offers a smart, modern way to invest in US equities.
Thanks for watching and welcome to a smarter way to invest with The BlackRock American Income Trust.
*Source: theaic.co.uk – BlackRock American Income seeks to become first ‘systematic’ trust, March 2025
Risk Warnings
Investors should refer to the prospectus or offering documentation for the funds full list of risks.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time and depend on personal individual circumstances.
Fund-specific risks
Description of Fund Risks
Counterparty Risk
The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
Derivative Risk
Derivatives may be highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains, resulting in greater fluctuations in the value of the Fund. The impact to the Fund can be greater where derivatives are used in an extensive or complex way.
Equity securities
The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events.
Quantitative model risk
The Fund uses quantitative models in order to make investment decisions. As market dynamics shift over time, a quantitative model may become less efficient or may even present deficiencies under certain market conditions.
Important Information
In the UK and Non-European Economic Area (EEA) countries: this is issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 02020394. For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.
UK Investment Trust Funds: The Company is managed by BlackRock Fund Managers Limited (BFM) as the AIFM. BFM has delegated certain investment management and other ancillary services to BlackRock Investment Management (UK) Limited. The Company’s shares are traded on the London Stock Exchange and dealing may only be through a member of the Exchange. The Company will not invest more than 15% of its gross assets in other listed investment trusts. SEDOL™ is a trademark of the London Stock Exchange plc and is used under licence.
Net Asset Value (NAV) performance is not the same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance.
The investment trusts listed in this document currently conduct their affairs so that their securities can be recommended by IFAs to ordinary retail investors in accordance with the Financial Conduct Authority’s rules in relation to non-mainstream investment products and intend to continue to do so for the foreseeable future. The securities are excluded from the Financial Conduct Authority’s restrictions which apply to non-mainstream investment products because they are securities issued by investment trusts. Investors should understand all characteristics of the funds objective before investing, if applicable this includes sustainable disclosures and sustainable related characteristics of the fund as found in the prospectus, which can be found www.blackrock.com on the relevant product pages for where the fund is registered for sale. For information on investor rights and how to raise complaints please go to https://www.blackrock.com/corporate/compliance/investor-right available in in local language in registered jurisdictions.
Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.
This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.
© 2025 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
Discover how to invest using big data and AI seeking to uncover potential overlooked opportunities in the US stock market.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the full capital originally invested.
Each investor has a different story, and we are steadfast partners to our clients in the UK because we listen to every one of them. Our full range of funds is one way we’re helping more investors build solid financial futures.
When you invest in an equity, you buy a share in a company and become a shareholder. Equities are typically best for the long-term - usually defined as a period of 5-10 years - This timeframe allows retail investors to better navigate market fluctuations and potentially benefit from higher rewards over time.
Fixed income securities, or bonds, are issued by companies and governments as a way of raising money. They’re basically an ‘I.O.U’ – designed to provide a regular stream of income (which is normally a fixed amount) over a specified period of time.
A multi-asset strategy combines different types of assets – stocks, bonds, real estate, or cash for example – to create a more nimble and broadly diversified portfolio. Fund managers will balance asset classes to achieve particular investment objectives.
While traditional assets like stocks and bonds are traded on the public markets, alternative investment strategies such as infrastructure, and private credit are less sensitive to the movements of global markets.
If you're looking for better rates of return on deposits than you’d get in an ordinary bank account, cash funds may be a great option. They often invest in very short-term bonds known as ‘money market instruments’, which are essentially banks lending money to each other. Short-term investments are typically defined as a period of up to 12 months.
Fifty years of indexing have proven investing doesn’t need to be expensive, or complex. There’s quite literally an index fund for every market exposure and investment strategy you could possibly need, which means more opportunities for more investors.
Capital as risk. Marketing Material.
Pull up a chair, grab a cup of coffee, and get comfortable as we dive into the world of INVESTMENT TRUSTS.
Imagine you're embarking on a journey to build an investment portfolio. You want to explore various opportunities, but navigating that vast landscape of investment options can be overwhelming. What if there was a way to simplify this process and have a team of experts manage a range of investments for you? Well, that's where Investment Trusts come in.
Imagine you're embarking on a journey to build a diversified investment portfolio. You want to explore various opportunities, but navigating the vast landscape of investment options can be overwhelming. What if there was a way to simplify this process and have a team of experts manage a range of investments for you? Well, that's where Investment Trusts come in. So, pull up a chair, grab a cup of coffee, and get comfortable as we dive into the world of INVESTMENT TRUSTS.
First things first, what exactly is an Investment Trust? An Investment Trust is a public limited company that aims to make money by investing in other companies or assets. It is a type of collective investment fund, so think of it as a basket of investments, managed by professionals and overseen by an Independent Board. By owning shares in an Investment Trust, an investor is able to invest in a variety of companies.
So, what makes Investment Trusts unique when compared to other investment options? One. They’re Professionally Managed. Investment Trusts are managed by experienced fund managers who make decisions on behalf of shareholders (that’s the likes of you and me). Two. They’re listed on a Stock Exchange. Investment Trusts’ shares are listed on the London stock exchange, where investors can buy and sell their shares through an investment platform. Three. they have a closed-ended Structure. Investment trusts have fixed share capital at launch, and their shares trade on the stock exchange; this means that investors can buy and sell their shares intra-day and the fund manager is not forced to sell underlying investments to fund redemptions in the same way an open-ended fund is. The manager therefore has the ability to invest for a longer time horizon and it mitigates the need for the manager to sell down assets at points in the investment cycle that might not be opportune. Four. they have revenue Reserves. Investment Trusts have the ability to retain some of the income generated by their assets. And this helps them to maintain steady dividend payments to investors. Oh, by the way, a dividend is a portion of a company's earnings that is paid to its shareholders as a reward for their investment. They can be paid in cash or reinvested back into the stock. During a recession for example, when many companies cut dividends, Trusts can use their reserves to keep or even increase their dividends payments. And this can be attractive to investors who depend on the income from their investments.
Investment Trusts come in various flavours, each aiming to cater to different investment goals. And can invest in different asset classes or themes, be it equities, debt and alternatives such as infrastructure, renewables, property.
An independent board of directors is elected by shareholders to oversee the good governance of the Company and look after shareholder interests. The directors meet several times a year and review the trust's performance. They also answer to the shareholders, meaning investors have a say in how the trust is run. This allows shareholders to vote on issues at the Trust’s Annual General Meetings or AGMs as they like to be called, or vote in new directors if dissatisfied with the current ones, for example. The board also chooses a professional portfolio manager to manage the company's investments. So, the board of directors plays a really crucial role in an Investment Trust!
Investment Trusts can trade at a premium or a discount to their NAV. Before I explain what that means, I should explain what NAV is.
NAV, or Net Asset Value per share, is the total value of the trust's assets minus its liabilities (these are financial obligations or debts that the trust owes), divided by the number of shares. Okay, now back to premiums and discounts. Let’s say an investor buys and sells shares at the listed share price. If the share price is higher than the NAV per share, the investment trust is trading at a premium. This means there is strong demand for the shares. If the share price is lower than the NAV per share, the investment trust is trading at a discount. This means there is less demand for the shares, with more shareholders wishing to sell their shares than there are buyers.
Fluctuations in the level of premium or discount are driven by the supply and demand for the trust's shares which can be influenced by a range of factors, including market sentiment, and the performance of the underlying assets. It might seem that if shares are trading at a discount, this is a bad thing, but that is not necessarily the case. The share price might have fallen because of wider negative market sentiment for example when COVID-19 first broke.
A portfolio trading at a discount might even represent a bargain opportunity to buy very cheaply.
Turning to premiums, investment trusts trading at a premium are in high demand. This can be because of strong performance or positive market sentiment. However, investors buying into a premium-rated investment trust have to pay a share price that is higher than the value of the underlying assets in the portfolio. Investment trusts trading on a premium carry the risk of sliding to a discount if demand for the shares falls.
Gearing is a term you'll often hear when discussing Investment Trusts. As a listed company, Investment Trusts can borrow money from banks so that they can invest more in potential opportunities or investments. The idea is simple: the borrowed money is invested aiming to earn additional returns in excess of the interest due on the loan. If successful, the more the trust borrows, the more profit it makes. However, if the investment fails, the more it borrows, the more it loses. Therefore, the more an Investment Trust borrows, the riskier it becomes. While gearing can help amplify gains, it can also increase losses. It's a double-edged sword that needs to be managed carefully.
There are more ways than ever for investors to invest in an Investment Trust. Alongside traditional routes via stockbrokers, ISAs and Private Pensions, fund supermarkets and platforms can also offer a range of Investment Trusts.
It wouldn’t be an episode of BlackRock Basics without a wrap up!
One. Investment Trusts can offer unique advantages to investors due to their closed-ended structure, which allows fund managers to focus on long-term investments without the pressure of investor redemptions. Two. An investment trust’s ability to use gearing can also potentially enhance returns, although it also increases risk. Three. The premium/discount mechanic can provide opportunities for investors to buy shares at a discount to their NAV, potentially increasing their returns. Four. Investment Trusts have the ability to retain a revenue reserve which can help maintain dividend payments in difficult times. And finally, five. The fact that they are professionally managed and overseen by an independent board. For some investors, this adds an extra level of oversight and accountability providing them with more confidence that their interests are being protected and that the trust is being managed effectively. However, it's important to note that investment trusts come with risks such as market fluctuations, liquidity issues, and the potential for trading at a discount to NAV, which can impact the value of your investment. Overall, it is imperative that you do your homework, including reading fund documentations to understand the risks before investing.
Risk Warnings
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.
Important Information
In the UK and Non-European Economic Area (EEA) countries: this is issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 02020394. For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.
Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.
This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.
© 2025 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are trademarks of BlackRock, Inc. or its affiliates All other trademarks are those of their respective owners.
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Discover the world of Investment Trusts, what makes them unique, and how they can be a smart addition to help grow your investment portfolio.
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