BlackRock Sustainable American Income succeed in combining sustainable investing with an outperforming value-stock bias

BlackRock Sustainable American Income plc (LON:BRSA), previously known as BlackRock North American Income, has recently reported its annual results for the financial year ending 31 October 2021. Over this 12-month period BRSA has generated a NAV total return of 36.0% and a share price return of 42.4%, outperforming the 35.6% return of its
benchmark, the Russell 1000 Value Index.

The most substantial change to BRSA over its financial year has been the adoption of an explicit sustainability objective, approved on 29 July 2021; though it still maintains its dedication of investing in high-yielding value stocks. As part of the new strategy, BRSA will now be invested in a manner consistent with the principles of sustainable investing, with an explicit target of achieving certain sustainability metrics – and a new name.

There have also been a number of operational changes to BRSA as a result of the change in objective. The BRSA team
can now invest in mid-cap holdings (i.e. investing in the entire market cap range of the Russell 1000 value), and have
also increased the concentration, aiming for a 30-60 stock portfolio. The board will also take a more active approach
to gearing, with BRSA now having a natural level of 5% net gearing, with a 0% to 10% range. The board has also
removed the use of option writing to enhance the trust’s income, and has cut the management fee by 0.05%.

To read the full report from Kepler Trust Intelligence, click here

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

Kepler Trust Intelligence is written and published by the investment companies team at Kepler Partners.

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