BlackRock Sustainable American Income Trust plc (LON:BRSA) underwent a strategy change in July 2021, to incorporate explicit ESG objectives into its investment approach. Its three managers, Tony DeSpirito, David Zhao and Lisa Yang, aim to deliver an attractive level of income and long-term capital growth from a portfolio of attractively valued, dividend-paying companies, which have favourable ESG credentials either as leaders, improvers or ‘sustainability enablers’.
While growth stocks have been favoured by investors for much of the last decade, data from BlackRock show that since 1978, in the one, two and three years following a recession, which is a possibility given the sharp rise in US interest rates, value stocks meaningfully outperformed growth stocks. Also, since 1984, following periods when the US Federal Reserve hiked interest rates, quality stocks led the US market in the subsequent one, two and three years.
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