BlackRock American Income Trust Plc - Half-year Report
LEI: 549300WWOCXSC241W468
Half Yearly Financial Report for the six months ended
Performance record
As at As at
30 April 31 October
2025
2024
Net assets (£’000)1 114,252 155,067
Net asset value per ordinary share (pence) 201.81 216.24
Ordinary share price (mid-market) (pence) 191.25 190.00
Discount to cum income net asset value2 5.2% 12.1%
Russell 1000 Value Index – net total return3 2389.73 2533.77
========= =========
For the six For the
months ended year ended
30 April 31 October
2025
2024
Performance (with dividends reinvested)
Net asset value per share2 -4.9% 16.0%
Ordinary share price2 2.7% 13.8%
Russell 1000 Value Index – net total return3 -5.7% 23.2%
========= =========
For the period For the period
since inception since inception
to 30 April to 31 October
2025 2024
Performance since inception (with dividends
reinvested)
Net asset value per share2 229.5% 246.5%
Ordinary share price2 213.0% 204.7%
Russell 1000 Value Index – net total return3 291.5% 315.1%
========= =========
For the six For the six
months ended months ended
30 April 30 April Change
2025 2024 %
Revenue
Net profit on ordinary
activities after taxation 961 1,254 -23.4
(£’000)
Revenue earnings per ordinary 1.39 1.59 -12.6
share (pence)4
--------------- --------------- ---------------
Interim dividends (pence)
1st interim 2.00 2.00 –
2nd interim 3.03 2.00 51.5
--------------- --------------- ---------------
Total dividends payable/paid 5.03 4.00 25.8
========= ========= =========
Sources: BlackRock and LSEG Datastream.
Performance figures have been calculated in Sterling terms with dividends reinvested.
1 The change in net assets reflects portfolio movements, shares repurchased into treasury, shares tendered and dividends paid during the period.
2 Alternative Performance Measures, see Glossary in the half yearly report and financial statements.
3 The Company’s performance benchmark (the Russell 1000 Value Index) may be calculated on either a gross or a net total return basis. Net total return (NR) indices calculate the reinvestment of dividends net of withholding taxes using the tax rates applicable to non-resident institutional investors, and hence give a lower total return than indices where calculations are on a gross total return basis. As the Company is subject to the same withholding tax rates for the countries in which it invests, the NR basis is felt to be the most accurate, appropriate, consistent and fair comparison for the Company.
4 Further details are given in the Glossary in the half yearly report and financial statements.
Chairman’s Statement
Dear Shareholder
This is my first statement as Chairman of your Company and I am pleased to present the Half Yearly Financial Report to shareholders for the period ended
Highlights:
Compelling change of mandate:
Adoption of a modern systematic active equity investment process effective
Enhanced dividend policy: Dividends are now calculated and paid quarterly based on 1.5% of the NAV as at close of business on the last working day of January, April, July and October (being equivalent to 6% of NAV annually).
Reduced management fees and OCR:
The Company will benefit from improved management fee terms and a more competitive OCR, including a six-month management fee holiday from 1 May to
Outlook: The Company continues to focus on investing in value stocks in the US market, which differentiates it from much of the sector. The Board believes there are good grounds to be optimistic about the future prospects for the Company.
Changes to investment objective and investment policy
I am delighted to report that the amendments to the Company’s investment objective and investment policy were approved following the General Meeting held on
The result is the adoption of a Systematic Active Equity investment process which combines the power of big data, artificial intelligence and human expertise to modernise the way investing is done and exploit market inefficiencies. The new strategy is run by BlackRock’s Systematic Active Equity team which comprises over 90 investment professionals and has nearly four decades of research and practical experience of adding value to clients’ portfolios through the application of advanced portfolio management techniques. The new mandate commenced on 17
This report therefore covers a period during which the portfolio was managed under the previous investment approach for all but about two weeks. The transition to the new strategy was undertaken efficiently with the portfolio realignment complete ahead of market opening on 22
Tender offer
As part of the change in investment mandate, shareholders were given the opportunity to tender some or all of their shares in the Company. The tender offer was for up to 20% of the existing shares in issue on the record date, being
The tender price was 98% of the NAV at the close of business on
Reduced management fees and OCR
Following the introduction of the Systematic Active Equity mandate, the Company is currently benefiting from a six-month management fee holiday for the period
Overview
Over the six-months to
The period under review saw the world enter another period of geopolitical uncertainty with the US now at its centre. The new administration under
Since the period end and up to close of business on
Earnings, dividends and enhanced dividend policy
The Company’s earnings per share for the six-month period ended
At the General Meeting on
The second quarterly dividend has been calculated based on 1.5% of the Company’s NAV at close of business on
Management of share rating
The Board monitors the Company’s share rating closely and receives regular updates from the Manager and Company’s corporate broker,
As part of this programme, the Company repurchased 4,184,846 shares at an average price of 204.12p per share for a total cost of £8,542,000. All shares were bought back at a discount to the prevailing NAV and the buy backs were therefore accretive to existing shareholders. Since the period end up to
Overall, the Board believes that the share buyback activity undertaken in the period has been beneficial in reducing the volatility of the share rating. The Company’s discount on
The BlackRock Active Systematic Equity team manages over
Board composition
As mentioned in the Annual Report,
At the same time we advised that the Board had appointed an external recruitment firm to undertake a search and selection process to identify a new Director. I am now delighted to announce that
Outlook
This period has seen turbulence from strong geopolitical factors which have inevitable knock-on effects and the outlook for the US economy remains uncertain. The Trump administration’s tariff policies remain a significant factor impacting markets and while some tariffs have been paused and others reduced, there is still uncertainty surrounding future trade negotiations and trade deals which continue to weigh on investor sentiment and led to a decline in the US Dollar. The
Against this backdrop, our new portfolio managers will seek to generate consistent returns across a wide range of diversified holdings by avoiding concentrated bets. The Board believes a systematic active equity strategy can offer a differentiated, cost-efficient, risk-controlled solution with a focus on delivering intended investment outcomes.
Chairman
Investment Manager’s Report
Market overview
Over the period to
2024: a year of political shifts
While not as exciting as the previous nine months, US equities, as defined by the S&P 500 Index, once again closed out the fourth quarter of 2024 positive, rising 2.4% and finishing the year up by 25.0%. From an economic standpoint, the economy remained supportive to markets: Gross Domestic Product (GDP) rose 3.1% in third quarter of 2024, the year-on-year inflation stayed reasonable at 2.7%, and unemployment continued to be well-behaved, sitting at 4.2%.
The dominating news for the fourth quarter was the US presidential elections, which saw
2025: a stark reversal and market turmoil
The first quarter of 2025 marked a stark reversal for equity markets, with stocks posting their worst start to a year since 2022. After two years of strong returns and a growing consensus around a “soft landing,” markets were rattled by a resurgence in trade tensions. This led to heightened concerns over inflationary pressures, diminishing consumer confidence and increasing recession risks. Amid these trade tensions, the
The market hit record highs in mid-February before retreating sharply, with major indices entering correction territory by mid-March. Growth stocks, particularly those at the center of the artificial intelligence (AI) boom that led markets in 2024, bore the brunt of the sell-off. The Russell 1000 Growth Index declined 10.0%, while Value stocks outperformed, with the Russell 1000 Value Index rising by 2.1%. This in itself highlights the importance that value stocks can play in a balanced portfolio, when markets reverse.
Sector performance saw a sharp rotation as investors sought safety amid the turmoil. The energy and health care sectors, which had lagged in the previous quarter, emerged as leaders. In contrast, technology stocks tumbled, with mega-cap and AI-levered names posting significant losses after dominating the market for the better part of the last two years. Consumer cyclicals were the worst-performing sector, as concerns over tariffs, economic weakness and higher interest rates weighed on sentiment.
Portfolio attribution
The Company’s NAV returned -4.9% compared to the return of -5.7% in the benchmark during the period.
During this period the largest detractor to relative performance was an underweight allocation and security selection in the consumer staples sector, most notably in the food products industry. Investment decisions in materials also negatively impacted the strategy’s relative performance, notably within containers and packaging. Lastly, the overweight allocation and stock selection in information technology adversely influenced returns. Within the sector, the overweight allocation in technology hardware storage and peripherals was a drag on relative performance.
The largest contributor to relative performance was an underweight allocation along with stock selection in the industrials sector, specifically selection decisions within the machinery sub-sector were beneficial. Furthermore, selection decisions in the health care sector, notably the overweight position along with stock selection in the health care providers and services, had a beneficial impact. Lastly, stock selection in consumer discretionary also positively influenced relative performance, namely within the household durables industry.
Change of investment objective and investment policy
Following the change of investment objective and investment policy effective from
The Systematic Active Equity (SAE) investment process
By combining the power of big data, data science and human expertise to modernise the way investing is done, systematic active equity investing is unlocking new ways to seek consistent portfolio outcomes.
An overview of the systematic active equity investment process is illustrated below:
1 Research
Researchers discover innovative signals and insights
2 Build
Portfolio Managers build investment models using a diversified range of signals
3 Model
Signals score and rank stocks daily
4 Forecast
Signal scores are aggregated to provide a final score
5 Optimise
Optimise for the best return, risk and cost, with exclusions
6 Monitor
Monitor markets and signal efficacy
Research
Systematic active equity investing begins with data-driven insights. In the digital age, we have access to vast amounts of data from traditional sources like company financial statements and economic reports to more complex unstructured sources like company news stories, web traffic, social media sentiment, consumer geo-location data and even satellite imagery.
By harnessing highly sophisticated analytics techniques like machine learning and artificial intelligence, we can transform this raw data into useful investment information, providing insights faster, at greater scale and with more granularity than traditional methods.
After receiving research, the SAE team deploys rigorous scientific testing to learn if these investment insights actually have the potential to help forecast future returns. This process includes a comprehensive examination of empirical evidence by seasoned investment experts, testing different combinations of variables and comparing the results to known outcomes. This ability to validate insights means portfolio decisions are firmly evidence-based and not dependent on human conviction alone.
Build
Finally, when an insight is shown to be valuable, the SAE team employs a disciplined portfolio construction process to implement it. We use computers to model the many complex trade-offs involved, finding a balance between expected return, risk, correlation and cost, to guide any allocation decisions.
Model
Our systematic active equity investment process leverages vast sets of data, both traditional and alternative, to provide investment insights faster, at greater scale and with more granularity. It scores and ranks thousands of securities daily to help make investment decisions in real time, based on company fundamentals, market sentiment and macroeconomic themes.
Our fundamental signals perform the same analysis a traditional security analyst might, and its models leverage data and technology to evaluate systematically thousands of securities. Using alternative data, such as internet search, transaction activity and geolocation data, the SAE team scores the attractiveness of investment opportunities against more traditional accounting measures.
Our sentiment signals recognise factors other than fundamental strength can influence returns over shorter time frames. Sentiment signals analyse a broad range of market views from sell side analysts, company management and other investors. By analysing at scale electronically the language and precise words used by analysts and company management in their communications, this enables our models to identify where analysts and management are more positive (or negative) on a company’s outlook.
Our macroeconomic signals seek to form a view across groups of securities rather than individual companies. For example, the team analyses the impact of positive hiring trends or adverse inflationary pressures across a universe of securities. The team also evaluates the impact of macroeconomic data among countries, industries and equity styles, such as value and growth.
Forecast
The final score for every security is a weighted combination of all signals, blending the views across these insights.
The final “alpha” score represents our assessment of the return potential of each security relative to all the others within the investible universe.
Optimise
The SAE team’s investment process seeks to capture systematically the drivers of future returns, to create a portfolio that seeks to maximise exposure to its signal views. We construct portfolios starting with the final alpha scores referred to above and size positions aligned with these scores.
However, alpha scores do not provide any information about risk and implementation frictions such as transaction costs and constraints. To account for this, we take into consideration the expected return of a position, alongside an assessment of its potential risk using a multifactor risk model.
The final output is intended to capture the broadest possible opportunity set within the target market, as we seek to achieve the best possible trade-off between risk and return net of transaction costs.
Monitor
The SAE team continually look to develop new ideas and review the live performance of existing investment insights and strategies. A continuous feedback loop connects portfolio results to the research process, providing an avenue for constant improvement and innovation.
We aim to maintain a Beta of 1, meaning the risk and volatility within the portfolio should be equal to the Russell 1000 Value Index. We seek to add value in a risk controlled, consistent manner by constructing a diversified portfolio of 150-250 securities.
Portfolio overview
Below is a comprehensive overview of our allocation (in Sterling) at the end of the period.
Health Care: 1.2% overweight (15.5% of the portfolio)
Our largest overweight position within Health Care is device manufacturer Boston Scientific (1.4% of the portfolio). From a top-down perspective, one major driver of the overweight is our factor timing model, which favours defensive and higher quality stocks based on the current economic outlook, where sentiment regarding global trade and consumption remains fragile. Analysis of broker research also suggests a positive earnings outlook from a stock-specific perspective.
Information Technology: 0.5% overweight (9.2% of the portfolio)
Within Information Technology, our most favoured stock is
Consumer Discretionary: 0.2% overweight (6.0% of the portfolio)
The largest overweight in the Consumer Discretionary sector is a small holding in Amazon (0.5% of the portfolio). Although the stock appears expensive according to traditional ratios, when the value of the company’s research and development spending and recent price moves relative to peers during the market sell-off are taken into account, the stock looks more attractive. It also scores highly across all other bottom-up signal groups: market sentiment, momentum in fundamentals and quality. Thematic analysis of broker research also points to the company having the potential to cope well in an uncertain economic environment due to its diversified business and dominant position in various markets.
Industrials: 0.1% overweight (14.5% of the portfolio)
In the Industrials sector, the highest conviction position is an overweight in Pentair (0.7% of the portfolio), a manufacturer of water treatment equipment such as pumps and filters. This is another company for which analysis of broker research suggests strong business momentum, supported by elevated activity in terms of investors meeting with management, another sign of positive market sentiment. Finally, data on staff turnover suggests stability in the business and management confidence.
Consumer Staples: 0.1% overweight (8.7% of the portfolio)
Walmart (2.4% of the portfolio) is our top pick within the Consumer Staples sector. Analysis of management comments from the most recent earnings call and broker research suggests that those within the company or those that follow it closely are feeling confident. Meanwhile the company’s track record of dividend increases imply that increased payouts could be on the cards.
The largest overweight in the
Energy: benchmark weight (6.3% of the portfolio)
An overweight in gas storage and transmission firm Williams (0.8% of the portfolio) is offset by an underweight in oil & gas producer
Utilities: 0.3% underweight (4.7% of the portfolio)
The largest contributor to the underweight in the Utilities sector comes from a lower than benchmark holding in renewable energy producer NextEra Energy (0.1% of the portfolio). This is a top-down driven view, coming from both style and sector timing insights. From a sector perspective, analysis of both news stories and broker reports suggest that more informed sources (brokers) are less bullish on renewables than is the case in the media, based on recent news stories. The style timing models noted above prefer more traditionally defensive utility
companies.
Real Estate: 0.3% underweight (4.5% of the portfolio)
The portfolio has no holding in global logistics real estate firm Prologis which is the Real Estate sector’s largest weighting in the benchmark. This mostly reflects a negative top-down view from the model. Analysis of the economic regime, where rates remain relatively high with signs of weakening growth, are not favourable for real estate companies.
Financials: 0.4% underweight (23.0% of the portfolio)
Despite a strong multi-year run for the companies in the Financials sector, it still looks relatively attractive in terms of valuation but analysis of trading data from exchanges and prime brokers show signs that the sentiment may be turning.
Materials: 1.1% underweight (3.1% of the portfolio)
The portfolio has no holding in the chemicals firm Linde, which specialises in gases and is a substantial contributor to the underweight in the Materials sector. This stock scores negatively everywhere, bottom-up to top-down and across valuation, quality, fundamental, momentum and investor sentiment insights. Signals informed by macro data really do not prefer chemical companies, which tend to be quite cyclical, while weak job postings and broker sentiment suggest company-specific weakness in the outlook.
Outlook
At the time of writing, geopolitical events loom large and trade tensions remain. Surveys of US consumer sentiment have rebounded from recent lows but remain depressed. Forward looking measures of business activity continue to point to an expansion in activity and our analysis of on-line job postings points to a slowdown in wage growth - but this could create room for interest rate cuts. Against this very mixed picture, it is worth returning to the discussion of the portfolio’s sector and underlying stock positioning above. The portfolio holds overweight positions in a variety of firms, some of which have highly diversified businesses or dominant market positions, or produce specialised goods, or show signs of financial resilience. Many of these companies are displaying positive momentum in their fundamentals. At the same time, there are sectors and firms where top-down views suggest that they may be vulnerable in the current economic environment, informing underweight positions. Uncertainty is often a source of discomfort, but it can also create compelling investment opportunities. We believe a data-driven, diversified and risk-controlled approach should be well placed to capture those opportunities.
Co-portfolio managers
1 Return on net total return index is calculated including the reinvestment of dividends net of withholding taxes.
Ten largest investments
Together, the Company’s ten largest investments represented 20.0% of the Company’s portfolio as at
1
▲
Berkshire Hathaway
(2024: n/a)
Sector: Financials
Market value: £3,281,000
Share of investments: 2.9%
(2024: n/a)
Berkshire Hathaway is a holding company engaged in a wide range of business activities. The company’s main operations include insurance, freight rail transportation and utility and energy generation and distribution. Its major products and services encompass property and casualty insurance, life and health insurance and reinsurance, as well as manufacturing of industrial, building and consumer products.
2
▲
JPMorgan Chase
(2024: n/a)
Sector: Financials
Market value: £3,100,000
Share of investments: 2.7%
(2024: n/a)
JPMorgan Chase is a banking services company that offers consumer and commercial banking, investment banking, financial transaction processing and asset management solutions. The bank provides asset management, treasury services, investment banking, wealth management, private banking, the US consumer and commercial banking operations and brokerage services.
3
▲
Walmart
(2024: n/a)
Sector: Consumer Staples
Market value: £2,705,000
Share of investments: 2.4%
(2024: n/a)
Walmart is a US-based omni-channel retailer. It sells groceries, consumables, health & wellness products, office products, apparel, fuel and home furnishings, among others, through grocery stores, supermarkets, hypermarkets, department and discount stores, e-commerce portals and neighborhood markets.
4
▲
Sector: Financials
Market value: £2,496,000
Share of investments: 2.2%
(2024: n/a)
5
▲
Exxon Mobil
(2024: n/a)
Sector: Energy
Market value: £2,093,000
Share of investments: 1.8%
(2024: n/a)
Exxon Mobil is an integrated oil and gas company that discovers, explores for, develops and produces crude oil, natural gas and natural gas liquids. The company carries out the refining of crude oil, produces, transports, trades and sells petroleum products and manufactures lube base stocks and finished lubricants.
6
▲
UnitedHealth Group
(2024: n/a)
Sector: Health Care
Market value: £1,985,000
Share of investments: 1.7%
(2024: n/a)
UnitedHealth Group is an American multinational company specialising in health insurance and health care services. The company focuses on improving health care systems through technology, data and comprehensive health services. Its major services include health benefits, pharmacy care services and health care management solutions.
7
▲
Morgan Stanley
(2024: n/a)
Sector: Financials
Market value: £1,938,000
Share of investments: 1.7%
(2024: n/a)
Morgan Stanley is one of the largest providers of financial services. The company provides institutional securities, wealth management and investment management services. Solutions under institutional securities and wealth management consist of lending, investment banking, sales and trading, brokerage and investment advisory, wealth and financial planning, banking and retirement planning and insurance.
8
▼
Citigroup
(2024: 1st)
Sector: Financials
Market value: £1,788,000
Share of investments: 1.6%
(2024: 3.5%)
Citigroup (Citi) is a multinational investment bank and financial services corporation with a larger international footprint and smaller US retail footprint compared to its large US bank peers. Citi generates returns significantly below its peers due to numerous issues, including higher funding costs, business mix and weak operating performance. However, we believe there is a multi-year opportunity to close the gap over time, as they continue to cut costs. Citi also scores similarly to its large US bank peers with a strong score in Financing Environmental Impact, which will be increasingly important.
9
▲
Cisco Systems
(2024: 19th)
Sector: Information Technology
Market value: £1,693,000
Share of investments: 1.6%
(2024: 1.9%)
Cisco Systems is an American multinational digital communications technology corporation. The company develops, manufactures, and sells networking hardware, software, telecommunications equipment and other high-technology services and products.
10
▲
Boston Scientific
(2024: n/a)
Sector: Health Care
Market value: £1,658,000
Share of investments: 1.4%
(2024: n/a)
Boston Scientific is an American medical technology company that develops, manufactures and commercialises devices for a range of interventional medical specialities. The company serves hospitals, clinics, outpatient facilities and medical offices across the world. The company has manufacturing facilities in the US,
All percentages reflect the value of the holding as a percentage of total investments.
Percentages in brackets represent the value of the holdings as at
Arrows indicate the change in relative ranking of the position in the portfolio compared to its ranking as at
Portfolio analysis as at
Sector Exposure
2025 2024 2025
portfolio1 portfolio2 reference index3
Communication Services 4.5% 7.8% 4.5%
Consumer Discretionary 6.0% 10.2% 5.8%
Consumer Staples 8.7% 5.8% 8.6%
Energy 6.3% 6.0% 6.3%
Financials 23.0% 16.1% 23.4%
Health Care 15.5% 18.0% 14.3%
Industrials 14.5% 5.8% 14.4%
Information Technology 9.2% 16.5% 8.7%
Materials 3.1% 6.6% 4.2%
Real Estate 4.5% 2.1% 4.8%
Utilities 4.7% 5.1% 5.0%
1
Portfolio exposure at
2
Portfolio exposure at
3
Exposure of the Russell 1000 Value Index at
Geographic Exposure 1
As at
United States 100%
As at
United States 90.2%
United Kingdom 3.4%
Other2 2.3%
France 2.2%
South Korea 1.9%
1 Based on the principal place of operation of each investment.
2
Consists of
Fifty largest investments as at
Market
value % of total
Company Sector £’000 portfolio
Berkshire Hathaway Financials 3,281 2.9
JPMorgan Chase Financials 3,100 2.7
Walmart Consumer Staples 2,705 2.4
Bank of America Financials 2,496 2.2
Exxon Mobil Energy 2,093 1.8
UnitedHealth Group Health Care 1,985 1.7
Morgan Stanley Financials 1,938 1.7
Citigroup Financials 1,788 1.6
Cisco Systems Information Technology 1,693 1.6
(IT)
Boston Scientific Health Care 1,658 1.4
S&P Global Financials 1,643 1.4
Pfizer Health Care 1,590 1.4
Johnson & Johnson Health Care 1,557 1.4
Entergy Utilities 1,534 1.3
Philip Morris Consumer Staples 1,494 1.3
International
Nisource Utilities 1,414 1.2
Travelers Financials 1,413 1.2
Medtronic Health Care 1,364 1.2
PNC Financial Services Financials 1,312 1.1
Abbvie Health Care 1,293 1.1
Equinix Real Estate 1,277 1.1
RTX Industrials 1,220 1.1
Walt Disney Communication Services 1,160 1.0
Charles Schwab Financials 1,120 1.0
Intercontinental Exchange Financials 1,110 1.0
Honeywell International Industrials 1,099 1.0
Comcast Communication Services 1,080 0.9
Procter & Gamble Consumer Staples 1,069 0.9
Gilead Sciences Health Care 1,033 0.9
Verizon Communications Communication Services 997 0.9
AON Financials 930 0.8
Williams Energy 927 0.8
Home Depot Consumer Discretionary 905 0.8
Lockheed Martin Industrials 904 0.8
AMETEK Industrials 896 0.8
Regeneron Pharmaceuticals Health Care 840 0.7
Pentair Industrials 814 0.7
Colgate-Palmolive Consumer Staples 814 0.7
UPS Industrials 812 0.7
Moody’s Financials 811 0.7
Corning IT 807 0.7
Salesforce IT 798 0.7
Bristol-Myers Squibb Health Care 782 0.7
Packaging Corp Materials 768 0.7
Newmont Materials 754 0.7
Consolidated Edison Utilities 749 0.7
Simon Property Real Estate 738 0.6
Visa Financials 699 0.6
Mastec Industrials 695 0.6
Fidelity National Financials 690 0.6
--------------- ---------------
50 largest investments 64,649 56.5
Remaining 183 investments 49,751 43.5
--------------- ---------------
Total 114,400 100.0
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Details of the full portfolio are available on the Company’s website at www.blackrock.com/uk/brai .
All investments are listed in the US and ordinary shares unless otherwise stated. The number of holdings as at
At
Interim Management Report and Responsibility Statement
The Chairman’s Statement and the Investment Manager’s Report above give details of the important events which have occurred during the period and their impact on the financial statements.
Principal risks and uncertainties
The principal risks faced by the Company can be divided into various areas as follows:
-- Market;
-- Geopolitical;
-- Investment performance;
-- Operational;
-- Legal & Regulatory Compliance;
-- Financial; and
-- Marketing.
The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended
In the view of the Board, geopolitical risks have altered the nature of the risks reported in the Annual Report and Financial Statements. The Board is mindful of the continuing uncertainty surrounding the current environment of heightened political risk given the war in
Going concern
The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective and the Company’s projected income and expenditure, are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound. The Board believes that the Company and its key third-party service providers have in place appropriate business continuity plans and these services have continued to be supplied without interruption.
The Company has a portfolio of investments which are predominantly readily realisable and is able to meet all its liabilities from its assets and income generated from these assets. Accounting revenue and expense forecasts are maintained and reported to the Board regularly and it is expected that the Company will be able to meet all its obligations. Borrowings under the overdraft facility shall at no time exceed £20 million or 20% of the Company’s net assets (calculated at the time of draw down) although the Board intends only to utilise borrowings representing 10% of net assets at the time of draw down and this covenant was complied with during the period. Ongoing charges for the year ended
Based on the above, the Board is satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.
Related party disclosure and transactions with the Manager
The related party transactions with the Directors are set out in note 11 below.
Directors’ responsibility statement
The Disclosure Guidance and Transparency Rules (DTR) of the
The Directors confirm to the best of their knowledge that:
-- the condensed set of financial statements contained within the Half
Yearly Financial Report has been prepared in accordance with applicable
International Accounting Standard 34 – ‘Interim Financial Reporting’;
and
-- the Interim Management Report, together with the Chairman’s Statement
and Investment Manager’s Report, include a fair review of the
information required by 4.2.7R and 4.2.8R of the FCA’s Disclosure
Guidance and Transparency Rules.
This Half Yearly Financial Report has not been audited or reviewed by the Company’s auditors.
The Half Yearly Financial Report was approved by the Board on
For and on behalf of the Board
Statement of Comprehensive Income for the six months ended
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income from
investments
held at fair 3 1,499 – 1,499 1,855 – 1,855 3,842 – 3,842
value through
profit or
loss
Other income 3 10 – 10 5 – 5 13 – 13
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total income 1,509 – 1,509 1,860 – 1,860 3,855 – 3,855
========= ========= ========= ========= ========= ========= ========= ========= =========
Net
(loss)/profit
on
investments
and options – (8,881) (8,881) – 21,487 21,487 – 20,909 20,909
held at fair
value through
profit or
loss
Net loss on
foreign – (39) (39) – (19) (19) – (67) (67)
exchange
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 1,509 (8,920) (7,411) 1,860 21,468 23,328 3,855 20,842 24,697
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment
management 4 (120) (361) (481) (145) (436) (581) (286) (860) (1,146)
fee
Other
operating 5 (264) (5) (269) (240) (3) (243) (534) (10) (544)
expenses
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
operating (384) (366) (750) (385) (439) (824) (820) (870) (1,690)
expenses
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit/
(loss) on
ordinary
activities 1,125 (9,286) (8,161) 1,475 21,029 22,504 3,035 19,972 23,007
before
finance costs
and taxation
Finance costs – – – – (1) (1) (2) (4) (6)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit/
(loss) on
ordinary 1,125 (9,286) (8,161) 1,475 21,028 22,503 3,033 19,968 23,001
activities
before
taxation
Taxation (164) – (164) (221) – (221) (429) – (429)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Profit/(loss)
for the 961 (9,286) (8,325) 1,254 21,028 22,282 2,604 19,968 22,572
period/year
========= ========= ========= ========= ========= ========= ========= ========= =========
Earnings/
(loss) per 7 1.39 (13.41) (12.02) 1.59 26.63 28.22 3.39 25.97 29.36
ordinary
share (pence)
========= ========= ========= ========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s Statement of Comprehensive Income, prepared in accordance with
The Company does not have any other comprehensive income/(loss) (
Statement of Changes in Equity for the six months ended
Called Capital
up share redemption Special Capital Revenue
capital reserve reserve reserves reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000
For the six
months ended
30 April 2025
(unaudited)
At 31 October 1,004 1,460 66,412 85,692 499 155,067
2024
Total
comprehensive
(loss)/income:
Net
(loss)/profit – – – (9,286) 961 (8,325)
for the period
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – (8,491) – – (8,491)
repurchased
into treasury
Treasury
shares (50) 50 – – – –
cancelled
Share
repurchase – – (51) – – (51)
costs
Ordinary
shares
repurchased – – (20,953) – – (20,953)
into treasury
– tender offer
Tender offer
and other
costs relating – – (350) – – (350)
to the
proposals1
BlackRock
contribution – – 118 – – 118
to costs of
the proposals1
Dividends paid 6 – – – (1,359) (1,404) (2,763)
--------------- --------------- --------------- --------------- --------------- ---------------
At 30 April 954 1,510 36,685 75,047 56 114,252
2025
========= ========= ========= ========= ========= =========
For the six
months ended
30 April 2024
(unaudited)
At 31 October 1,004 1,460 82,540 69,201 584 154,789
2023
Total
comprehensive
income:
Net profit for – – – 21,028 1,254 22,282
the period
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – (5,560) – – (5,560)
repurchased
into treasury
Share
repurchase – – (21) – – (21)
costs
Dividends paid 6 – – – (1,508) (1,649) (3,157)
--------------- --------------- --------------- --------------- --------------- ---------------
At 30 April 1,004 1,460 76,959 88,721 189 168,333
2024
========= ========= ========= ========= ========= =========
For the year
ended 31
October 2024
(audited)
At 31 October 1,004 1,460 82,540 69,201 584 154,789
2023
Total
comprehensive
income:
Net profit for – – – 19,968 2,604 22,572
the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – (16,067) – – (16,067)
repurchased
into treasury
Share
repurchase – – (61) – – (61)
costs
Dividends paid – – – (3,477) (2,689) (6,166)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 1,004 1,460 66,412 85,692 499 155,067
2024
========= ========= ========= ========= ========= =========
1
Costs relating to the implementation of the proposals set out in the Circular dated
For information on the Company’s distributable reserves, please refer to note 9 below.
Statement of Financial Position as at
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
Notes £’000 £’000 £’000
Non current assets
Investments held at fair
value through profit or 10 114,400 168,828 155,578
loss
Current assets
Current tax asset 121 92 97
Other receivables 1,710 233 212
Cash and cash equivalents 630 671 1,075
– cash at bank
Total current assets 2,461 996 1,384
--------------- --------------- ---------------
Total assets 116,861 169,824 156,962
========= ========= =========
Current liabilities
Other payables (2,609) (1,491) (1,895)
Total current liabilities (2,609) (1,491) (1,895)
--------------- --------------- ---------------
Net assets 114,252 168,333 155,067
========= ========= =========
Equity
Called up share capital 8 954 1,004 1,004
Capital redemption reserve 1,510 1,460 1,460
Special reserve 36,917 76,959 66,412
Capital reserves 74,815 88,721 85,692
Revenue reserve 56 189 499
--------------- --------------- ---------------
Total shareholders’ funds 114,252 168,333 155,067
========= ========= =========
Net asset value per 7 201.81 218.40 216.24
ordinary share (pence)
========= ========= =========
Cash Flow Statement for the six months ended
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Operating activities
Net (loss)/profit on ordinary (8,161) 22,503 23,001
activities before taxation1
Add back finance costs – 1 6
Net loss/(profit) on investments
and options held at fair value 8,881 (21,487) (20,909)
through profit or loss
(including transaction costs)
Net loss on foreign exchange 39 19 67
Sale of investments held at fair 174,945 74,765 133,284
value through profit or loss
Purchase of investments held at
fair value through profit or (142,648) (67,890) (113,741)
loss
(Increase)/decrease in other (117) (28) 17
receivables
(Decrease)/increase in other (265) 82 208
payables
(Increase)/decrease in amounts (1,381) 2,409 2,385
due from brokers
Increase/(decrease) in amounts 1,437 (1,918) (1,918)
due to brokers
--------------- --------------- ---------------
Net cash inflow from operating 32,730 8,456 22,400
activities before taxation
========= ========= =========
Taxation paid (188) (189) (402)
--------------- --------------- ---------------
Net cash inflow from operating 32,542 8,267 21,998
activities
========= ========= =========
Financing activities
Interest paid – (1) (6)
Payments for ordinary shares (9,000) (5,511) (15,776)
repurchased into treasury
Payments for shares repurchased (20,953) – –
into treasury – tender offer
Tender offer costs (350) – –
BlackRock contribution to tender 118 – –
offer costs
Dividends paid (2,763) (3,157) (6,166)
--------------- --------------- ---------------
Net cash outflow from financing (32,948) (8,669) (21,948)
activities
========= ========= =========
(Decrease)/increase in cash and (406) (402) 50
cash equivalents
Effect of foreign exchange rate (39) (19) (67)
changes
--------------- --------------- ---------------
Change in cash and cash (445) (421) (17)
equivalents
Cash and cash equivalents at 1,075 1,092 1,092
start of period/year
--------------- --------------- ---------------
Cash and cash equivalents at end 630 671 1,075
of period/year
========= ========= =========
Comprised of:
Cash at bank 630 95 274
Cash Fund1 – 576 801
--------------- --------------- ---------------
630 671 1,075
========= ========= =========
1
Dividends and interest received in cash during the year amounted to £1,258,000 and £21,000 (six months ended
2
Notes to the Financial Statements for the six months ended
1. Principal activity
The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010.
2. Basis of preparation
The half yearly financial statements for the period ended
Insofar as the Statement of Recommended Practice (SORP) for investment trust companies and venture capital trusts, issued by the
Adoption of new and amended International Accounting Standards and interpretations:
IAS 1 – Classification of liabilities as current or non current
(effective
IAS 1 – Non current liabilities with covenants
(effective
The amendment of these standards did not have any significant impact on the Company.
Relevant International Accounting Standards that have yet to be adopted:
IAS 21 – Lack of exchangeability
(effective
IFRS 18 – Presentation and disclosure in financial statements
(effective
None of the standards that have been issued, but are not yet effective, are expected to have a material impact on the Company.
3. Income
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Investment income:
UK dividends 104 206 518
Overseas dividends 1,281 1,557 3,107
Overseas special dividends – – 12
Overseas REIT1 dividends 98 77 176
Interest from Cash Fund 16 15 29
--------------- --------------- ---------------
Total investment income 1,499 1,855 3,842
========= ========= =========
Deposit interest 10 5 13
--------------- --------------- ---------------
Total 1,509 1,860 3,855
========= ========= =========
1 Real Estate Investment Trust.
Dividends and interest received in cash during the period amounted to £1,258,000 and £21,000 (six months ended
No special dividends have been recognised in capital during the period (six months ended
4. Investment management fee
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment
management 120 361 481 145 436 581 286 860 1,146
fee
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 120 361 481 145 436 581 286 860 1,146
========= ========= ========= ========= ========= ========= ========= ========= =========
Up to
From
The investment management fee is allocated 25% to the revenue account and 75% to the capital account.
There is no additional fee for company secretarial and administration services.
5. Other operating expenses
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Allocated to revenue:
Custody fee 1 1 2
Auditors’ remuneration – audit 21 26 47
services1
Registrar’s fee 18 9 30
Directors’ emoluments 74 69 145
Broker fees 25 20 40
Depositary fees 7 8 16
Printing fees 20 27 43
Legal and professional fees 7 9 16
Marketing fees 21 21 87
AIC fees 6 6 12
FCA fees 6 5 12
Write back of prior year (1) (3) (43)
expenses2
Other administrative costs 59 42 127
--------------- --------------- ---------------
Total revenue expenses 264 240 534
========= ========= =========
Allocated to capital:
Custody transaction charges3 5 3 10
--------------- --------------- ---------------
Total 269 243 544
========= ========= =========
1
No non-audit services were provided by the Company’s auditors for the six months ended
2
Relates to miscellaneous fee accruals written back during the period (six months ended
3
For the six month period ended
The transaction costs incurred on the acquisition of investments amounted to £26,000 for the six months ended
6. Dividends
On
Dividends paid on equity shares during the period were:
Six months
ended
30 April
2025
(unaudited)
£’000
Fourth interim dividend for the year ended 31 October 2024 of 1,412
2.00p per ordinary share paid on 2 January 2025
First interim dividend for the year ending 31 October 2025 of 1,351
2.00p per ordinary share paid on 2 May 2025
---------------
Accounted for in the financial statements 2,763
=========
Second interim dividend for the year ending 31 October 2025 of 1,715
3.03p per ordinary share payable on 4 July 20251
---------------
Total 4,478
=========
1
Based on 56,613,872 ordinary shares in issue on
7. Earnings and net asset value per ordinary share
Revenue earnings, capital (loss)/earnings and net asset value per ordinary share are shown below and have been calculated using the following:
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
Net revenue profit attributable 961 1,254 2,604
to ordinary shareholders (£’000)
Net capital (loss)/profit
attributable to ordinary (9,518) 21,028 19,968
shareholders (£’000)
--------------- --------------- ---------------
Total (loss)/profit attributable (8,557) 22,282 22,572
to ordinary shareholders (£’000)
========= ========= =========
Total shareholders’ funds 114,252 168,333 155,067
(£’000)
========= ========= =========
The weighted average number of
ordinary shares in issue during
the period on which the earnings 69,255,294 78,970,614 76,877,643
per ordinary share was
calculated was:
The actual number of ordinary
shares in issue at the period
end on which the net asset value 56,613,872 77,076,813 71,708,970
per ordinary share was
calculated was:
(Loss)/earnings per ordinary
share
Revenue earnings per share 1.39 1.59 3.39
(pence) – basic and diluted
Capital (loss)/earnings per
share (pence) – basic and (13.74) 26.63 25.97
diluted
--------------- --------------- ---------------
Total (loss)/earnings per share (12.35) 28.22 29.36
(pence) – basic and diluted
========= ========= =========
As at As at As at
30 April 30 April 31 October
2025 2024
(unaudited) (unaudited) 2024
(audited)
Net asset value per ordinary share (pence) 201.81 218.40 216.24
Ordinary share price (pence) 191.25 197.50 190.00
========= ========= =========
There were no dilutive securities at the period end (six months ended
8. Share capital
Ordinary
shares Treasury Total Nominal
in issue shares shares value
number number number £’000
Allotted, called
up and fully
paid share
capital
comprised:
Ordinary shares
of 1 pence each:
At 31 October 79,989,044 20,372,261 100,361,305 1,004
2023 (audited)
Ordinary shares
repurchased into (2,912,231) 2,912,231 – –
treasury
At 30 April 2024 77,076,813 23,284,492 100,361,305 1,004
(unaudited)
Ordinary shares
repurchased into (5,367,843) 5,367,843 – –
treasury
At 31 October 71,708,970 28,652,335 100,361,305 1,004
2024 (audited)
Ordinary shares
repurchased into (4,184,846) 4,184,846 – –
treasury
Ordinary shares
repurchased into (10,910,252) 10,910,252 – –
treasury –
tender offer
Treasury shares – (5,000,000) (5,000,000) (50)
cancelled
--------------- --------------- --------------- ---------------
At 30 April 2025 56,613,872 38,747,433 95,361,305 954
(unaudited)
========= ========= ========= =========
During the six months ended
During the six months ended
During the six months ended
Since
9. Reserves
The capital redemption reserve of £1,510,000 (
As at
The Company’s share premium account was cancelled pursuant to shareholders’ approval of a special resolution at the Company’s Annual General Meeting on
10. Financial risks and valuation of financial instruments
The Company’s investment activities expose it to the various types of risk which are associated with the financial instruments and markets in which it invests. The risks are substantially consistent with those disclosed in the previous annual financial statements, with the exception of those outlined below.
Market risk arising from price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk) whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, climate change or other events could have a significant impact on the Company and the market price of its investments and could result in increased premiums or discounts to the Company’s net asset value.
Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Statement of Financial Position at their fair value (investments and derivatives) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note 2(g) as set out on page 90 of the Company’s Annual Report and Financial Statements for the year ended
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted prices are readily available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The Company does not adjust the quoted price for these instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar instruments in markets that are considered less than active, or other valuation techniques where all significant inputs are directly or indirectly observable from market data.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation.
This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability, including an assessment of the relevant risks including but not limited to credit risk, market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager and these risks are adequately captured in the assumptions and inputs used in measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below sets out fair value measurements using the IFRS 13 fair value hierarchy.
Level 1 Level 2 Level 3 Total
Financial assets at fair value through £’000 £’000 £’000 £’000
profit or loss
Equity investments at 30 April 2025 114,400 _ _ 114,400
(unaudited)
Equity investments at 30 April 2024 168,828 – – 168,828
(unaudited)
Equity investments at 31 October 2024 155,578 – – 155,578
(audited)
========= ========= ========= =========
There were no transfers between levels for financial assets and financial liabilities recorded at fair value as at
For exchange listed equity investments, the quoted price is the bid price. Substantially all investments are valued based on unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not required to be assessed or adjusted for any business risks, including climate change risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.
11. Related party disclosure
Directors’ emoluments
The Board consists of three non-executive Directors, all of whom are considered to be independent of the Manager by the Board. None of the Directors has a service contract with the Company. The Chairman receives an annual fee of £45,000, the Audit Committee Chair receives an annual fee of £39,000 and each of the Directors receives an annual fee of £32,500. At
The interests of the Directors in the ordinary shares of the Company are as set out below:
30 April 30 April 31 October
2025 2024
(unaudited) (unaudited) 2024
(audited)
David Barron (Chairman) 11,500 5,000 11,500
Solomon Soquar 10,000 n/a 10,000
Melanie Roberts 10,000 10,000 10,000
Alice Ryder1 n/a 9,047 9,047
========= ========= =========
1
Since the period end and up to the date of this report there have been no changes in Directors’ holdings.
The transactions with the Investment Manager and AIFM are stated in note 12.
The following investors are:
a.
funds managed by the
b.
investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and are, as a result, considered to be related parties to the Company (
Total % of shares
held by Number of Significant
Significant Investors
Total % of shares Investors who are who are not
held by not affiliates of affiliates of
Related BlackRock BlackRock BlackRock Group or
Funds Group or BlackRock, BlackRock, Inc.
Inc.
As at 30 April 2025 nil n/a n/a
As at 31 October 0.9 n/a n/a
2024
As at 30 April 2024 nil n/a n/a
========= ========= =========
12. Transactions with the Investment Manager and AIFM
The investment management fee due for the six months ended
In addition to the above services, BIM (
The Company has an investment in the
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
13. Contingent liabilities
There were no contingent liabilities at
14. Publication of non statutory accounts
The financial information contained in this Half Yearly Financial Report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the six months ended
The information for the year ended
15. Annual results
The Board expects to announce the annual results for the year ending
Copies of the annual results announcement can be obtained from the Secretary on 0207 743 3000 or cosec@blackrock.com. The Annual Report and Financial Statements should be available by the beginning of
FOR FURTHER INFORMATION, PLEASE CONTACT:
Press enquiries:
E-mail: BlackRockInvestmentTrusts@lansons.com
END
Release
