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:
- This is the first set of results following the portfolio changes. We have transitioned the portfolio to a ‘multi-cap’ mandate with a larger weighting in mid-caps.
- The number of holdings has reduced to 30-60 with the goal of building a concentrated portfolio of high quality, dividend paying companies, based in the US, with premium ESG characteristics.
- The Trust targets a premium ESG score and lower carbon emissions intensity, while actively engaging with company management teams to improve their sustainability performance.
- Ideas for the Trust are generated by sector analysts, a proprietary quantitative screen and the Portfolio Managers. This is prioritised into a research pipeline, with further work undertaken by BlackRock analysts.
- Against the Trust’s Russell 1000 Value reference index, notable overweight positions are in the financial, technology and consumer discretionary sectors, while notable underweights are industrials, staples and real estate.
- The global economy is going through a regime change with the next 10 years likely to be different to the post-financial crisis environment where rates, economic growth and inflation were low.
- This regime change will necessitate a different investment strategy. Value has historically done well in a rising inflation, rising interest rate environment.
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 2022 and may change as subsequent conditions vary.
The environmental, social and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.
