BlackRock American Income Trust Plc - Portfolio Update
All information is at
Performance at month end with net income reinvested
One Three Six One Three
Five Years
Month Months Months Year Years
Net asset value 2.5 -7.1 -8.7 -3.1 6.6 49.4
Share price 3.8 -3.6 -4.5 4.1 10.0 52.1
Russell 1000 Value Index 2.5 -8.9 -10.0 2.8 18.2 69.0
Russell 1000 Value Index (Net 15% WHT 2.5 -9.0 -10.1 2.5 17.1 66.3
Total Return)*
At month end
Net asset value - capital only: 206.38p Net asset value - cum income: 206.77p Share price: 198.50p Discount to cum income NAV: 4.0% Net yield1: 4.5% Total assets including current year revenue: £117.1m Net gearing: 0.1% Ordinary shares in issue2: 56,613,872 Ongoing charges3: 1.06%
1
Based on two quarterly dividends of 2.00p per share declared on
² Excluding 38,747,433 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
Sector Analysis Total Assets (%) Financials 23.1 Industrials 15.3 Health Care 14.4 Information Technology 10.1 Consumer Staples 7.8 Energy 6.2 Consumer Discretionary 6.2Communication Services 4.9 Utilities 4.7 Real Estate 4.4 Materials 3.0 Net Current Liabilities -0.1 ----- 100.0 ===== Country Analysis Total Assets (%)United States 100.1 Net Current Liabilities -0.1 ----- 100.0 =====
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Top 10 Holdings Country % Total Assets Walmart United States 2.9 JPMorgan Chase United States 2.8 Berkshire Hathaway United States 2.6 Bank Of America United States 2.3 Morgan Stanley United States 1.8 Exxon Mobil United States 1.7 Charles Schwab United States 1.7 Citigroup United States 1.7 Medtronic United States 1.6 Pfizer United States 1.6
For the month ended
At the sector level, stock selection within financials was a key driver of relative performance. An underweight position in Berkshire Hathaway - whose shares have lagged the broader market since
Positioning in energy was less successful, with long exposures to names such as Targa Resources, which extended its April losses into May amid continued weakness in natural gas liquids markets 3 . In contrast, underweights in stocks like Marathon Petroleum, whose refining operations offer some insulation from commodity price volatility, performed more resiliently, detracting from relative performance 4 .
At the signal level, sentiment-oriented insights – including those that use text mining of management earnings calls, or that track the trading activity of hedge funds - were the primary contributors to relative performance. They steered the portfolio towards some overweight positions within consumer discretionary - buoyed by resilient spending data - as well as an underweight positioning in industrials, where weaker PMI readings and softer global demand weighed on performance.
In contrast, more fundamental signals - such as those assessing balance sheet quality through implied default probabilities on corporate debt - underperformed. Unsurprisingly, in the context of a strong market rebound over the period, more defensive signals also lagged. These included those that favour companies which tend to outperform when equity markets fall.
Positioning changes
The portfolio moved from a small overweight in consumer staples to an underweight position, while increasing its overweight position in the financial sector.
1
Reuters, “Buffett to step down as Berkshire CEO after 60 years at helm, passes baton to Abel”,
2
Reuters “Citi expects banking fees, trading revenue to climb despite US tariff anxiety”,
3
Reuters, “Micron rejigs business units to highlight AI data center demand”,
4
Reuters, “Oil refiners’ robust profits defy souring outlook”,
Source: BlackRock.
Latest information is available by typing blackrock.com/uk/brai on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.
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