BlackRock Sustainable American Income NAV outperforms Russell 1000 Value Index

BlackRock Sustainable American Income plc (LON:BRSA) has announced its latest portfolio update.

All information is at 28 February 2022  and unaudited.

Click here to learn more about BlackRock Sustainable American Income Trust plc

Performance at month end with net income reinvested
 


 
One
Month
Three
Months
Six
Months
One
Year
Three
Years
Five
Years
Net asset value0.1%5.2%7.3%22.3%43.0%49.2%
Share price0.8%1.3%5.5%23.0%32.2%49.6%
Russell 1000 Value Index-1.2%1.2%3.0%19.8%40.1%45.7%

At month end

Net asset value – capital only:209.65p
Net asset value – cum income:210.74p
Share price:199.00p
Discount to cum income NAV:5.6%
Net yield1:4.0%
Total assets including current year revenue:£169.1m
Gearing:2.7%
Ordinary shares in issue2:80,229,044
Ongoing charges3:1.1%

1 Based on four quarterly interim dividends of 2.00p per share declared on 23 March 2021, 5 May 2021, 5 August 2021 and 3 November 2021 for the year ended 30 October 2021 and based on the share price as at close of business on 28 February 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 AnalysisTotal Assets (%)
Financials22.4
Health Care18.3
Information Technology14.7
Consumer Discretionary9.9
Energy6.7
Materials6.5
Communication Services6.2
Industrials5.2
Utilities5.0
Consumer Staples4.5
Real Estate1.0
Net Current Liabilities-0.4
—-
100.0
=====
Country AnalysisTotal Assets (%)
United States81.0
United Kingdom4.7
Japan4.6
France2.6
Canada2.2
Australia1.9
Switzerland1.5
Germany1.0
Denmark0.9
Net Current Liabilities-0.4
—–
100.0
=====
Top 10 HoldingsCountry% Total Assets
Cisco SystemsUnited States3.5
AstraZenecaUnited Kingdom3.3
Wells FargoUnited States3.0
Verizon CommunicationsUnited States3.0
Cognizant Technology SolutionsUnited States2.9
ComericaUnited States2.9
SempraUnited States2.9
American InternationalUnited States2.8
Dentsply SironaUnited States2.7
SanofiFrance2.6

Tony DeSpirito, David Zhao and Lisa Yang, representing the Investment Manager, noted:

For the one-month period ended 28 February 2022, the Company’s NAV increased by 0.1% and the share price by 0.8% (all in sterling). The Company’s reference index, the Russell 1000 Value Index, returned -1.2% for the period.

The largest contributor to relative performance was selection decisions in the health care sector. Specifically, allocation decisions within the pharmaceuticals industry boosted relative results. Within energy, an overweight exposure to and decisions within oil, gas and consumables helped relative returns. In real estate, an underweight exposure to and security selection within the equity real estate investment trust (REIT) industry also proved accretive. Other contributors during the period included security selection within the consumer discretionary sector.

The largest detractor from relative performance was stock selection in the financials sector. Specifically, stock selection in insurance and an underweight exposure to diversified financial services dampened relative results. Allocation decisions in information technology also hurt relative returns with an overweight exposure to the Information Technology (IT) services industry proving costly. In industrials, an underweight exposure to the aerospace and defence industry, as well as selection decisions in road and rail, weighed on relative returns. Other modest detractors during the period included security selection within the chemicals industry.

Transactions

Notable new purchases in the portfolio during the month included Visa, as well as increased positions in Willis Towers Watson and Sempra. Conversely, the Company exited its positions in Lowes Companies, Exelon and Arthur J Gallagher.

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.

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