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 value | 5.9% | 0.3% | 1.3% | 7.4% | 33.1% | 54.0% |
| Share price | 2.3% | -2.7% | -4.1% | 3.6% | 21.0% | 53.5% |
| Russell 1000 Value Index | 6.9% | 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 Analysis | Total Assets (%) |
| Financials | 22.0 |
| Health Care | 20.5 |
| Information Technology | 13.8 |
| Consumer Discretionary | 10.0 |
| Energy | 8.7 |
| Industrials | 5.6 |
| Consumer Staples | 5.4 |
| Communication Services | 4.5 |
| Materials | 4.3 |
| Utilities | 4.2 |
| Real Estate | 1.3 |
| Net Current Liabilities | -0.3 |
| —– | |
| 100.0 | |
| ===== |
| Country Analysis | Total Assets (%) |
| United States | 81.3 |
| United Kingdom | 7.9 |
| Japan | 3.5 |
| France | 2.9 |
| Australia | 2.0 |
| Canada | 1.7 |
| Denmark | 1.0 |
| Net Current Liabilities | -0.3 |
| —– | |
| 100.0 | |
| ===== |
| Top 10 Holdings | Country | % Total Assets |
| Sanofi | France | 3.0 |
| Wells Fargo | United States | 2.9 |
| Willis Towers Watson | United States | 2.9 |
| Verizon Communications | United States | 2.8 |
| Cisco Systems | United States | 2.8 |
| Laboratory Corporation of America | United States | 2.8 |
| Pepsico | United States | 2.6 |
| Cigna | United States | 2.6 |
| Cognizant Technology Solutions | United States | 2.6 |
| American International | United States | 2.6 |
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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