BlackRock Sustainable American Income plc (LON:BRSA) has announced its latest portfolio update.
All information is at 31 March 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 | 4.1% | 4.8% | 11.4% | 18.1% | 45.2% | 56.8% |
| Share price | 6.0% | 3.8% | 11.6% | 15.5% | 40.8% | 62.9% |
| Russell 1000 Value Index | 4.8% | 2.1% | 9.6% | 17.0% | 42.9% | 55.0% |
At month end
| Net asset value – capital only: | 217.40p |
| Net asset value – cum income: | 217.42p |
| Share price: | 209.00p |
| Discount to cum income NAV: | 3.9% |
| Net yield1: | 3.8% |
| Total assets including current year revenue: | £174.4m |
| Gearing: | 3.4% |
| Ordinary shares in issue2: | 80,229,044 |
| Ongoing charges3: | 1.1% |
1 Based on three quarterly interim dividends of 2.00p per share declared on 5 May 2021, 5 August 2021 and 3 November 2021 for the year ended 31 October 2021, and one quarterly dividend of 2.00p per share declared on 22 March 2022 for the year ending 31 October 2022 and based on the share price as at close of business on 31 March 2022.
² Excluding 20,132,261 ordinary shares held in treasury.
³ Ongoing charges represent the management fee and all other operating expenses excluding interest as a % of average shareholders’ funds for the year ended 31 October 2021.
| Sector Analysis | Total Assets (%) |
| Financials | 21.7 |
| Health Care | 19.1 |
| Information Technology | 14.9 |
| Consumer Discretionary | 9.3 |
| Energy | 7.5 |
| Materials | 7.1 |
| Communication Services | 6.1 |
| Utilities | 5.6 |
| Consumer Staples | 4.7 |
| Industrials | 4.4 |
| Real Estate | 1.0 |
| Net Current Liabilities | -1.4 |
| —- | |
| 100.0 | |
| ===== |
| Country Analysis | Total Assets (%) |
| United States | 81.6 |
| United Kingdom | 5.3 |
| Japan | 4.6 |
| France | 3.0 |
| Canada | 2.4 |
| Australia | 2.1 |
| Switzerland | 1.5 |
| Denmark | 0.9 |
| Net Current Liabilities | -1.4 |
| —– | |
| 100.0 | |
| ===== |
| Top 10 Holdings | Country | % Total Assets |
| AstraZeneca | United Kingdom | 3.6 |
| Cisco Systems | United States | 3.4 |
| Sempra | United States | 3.3 |
| Sanofi | France | 3.0 |
| American International | United States | 2.9 |
| Cognizant Technology Solutions | United States | 2.8 |
| Verizon Communications | United States | 2.8 |
| Anthem | United States | 2.8 |
| Comerica | United States | 2.7 |
| Wells Fargo | United States | 2.7 |
Tony DeSpirito, David Zhao and Lisa Yang, representing the Investment Manager, noted:
For the one-month period ended 31 March 2022, the Company’s NAV increased by 4.1% and the share price by 6.0% (all in sterling). The Company’s reference index, the Russell 1000 Value Index, returned +4.8% for the period.
The largest contributor to relative performance was selection decisions in the energy sector. Specifically, stock selection and an overweight allocation to the oil, gas and consumable fuels industry helped relative returns. Investment decisions within materials boosted relative results, mainly due to allocation decisions within the metals and mining industry. Other contributors during the period included stock selection within the industrials sector.
The largest detractor from relative performance was investment decisions in the consumer discretionary sector. Specifically, investment decisions in textiles and apparel and household durables dampened relative results. Our stock selection in health care also hurt relative returns. Within financials, allocation decisions in the banks and diversified financial services industries proved costly. Other modest detractors during the period included stock selection within the consumer staples sector.
Transactions
There were no new purchases in the portfolio during the month. The Company added to its positions in Sanofi, Reckitt Benckiser and Ralph Lauren. Conversely, the Company exited its position in MTU Aero Engines and trimmed its positions in Cognizant Technology Solutions, Woodside Petroleum and Steel Dynamics.
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 materials sectors. The Company’s largest underweight positions relative to the reference index were in the industrials, real estate and consumer staples sectors.
Source: BlackRock.
Click here to learn more about BlackRock Sustainable American Income Trust plc
