BlackRock Sustainable American Income Trust plc

Annual General Meeting

On 21 March 2023, Co-Portfolio Manager, David Zhao and lead portfolio strategist, Steven Farkas provided an update on the Company’s progress and the year ahead.

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.

Key insights:

  • The trust has a dual objective, incorporating attractive income and capital appreciation, plus a superior ESG score and lower carbon emissions intensity score compared to the index.
  • The trust is managed by the Income and Value team at BlackRock, and aims invest in companies exhibiting quality and value characteristics. The strategy is supported by 20 investment professionals as of May 2023.
  • The research analysts cover a wide range of sub-industries. The aim is to understand individual companies in detail, including the industry dynamics and competitive landscape.
  • Quality characteristics include a higher gross dividend yield and higher earnings growth, while value characteristics include a lower price to earnings ratio than the benchmark.
  • The strategy harnesses big data insights to inform decision-making. This includes credit card and location data to understand businesses in more detail.
  • The trust’s largest overweight is technology, focused on companies with strong balance sheets that can weather this tougher economic environment. Healthcare is a second key area for the portfolio.
  • The trust is underweight industrials, which are cyclical and trading at a premium to the wider market. Real estate is another difficult area, with over-supply colliding with weaker demand.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or financial product or to adopt any investment strategy. The opinions expressed are as of March 2023 and may change as subsequent conditions vary.