Title: PowerPoint Presentation URL Source: https://is.gd/u67dTK Published Time: Wed, 23 Oct 2024 00:01:49 GMT Markdown Content: BlackRock Sustainable American Income Trust plc # September 2024 # Company objective The Company’s investment objective is to provide an attractive level of income together with capital appreciation over the long term in a manner consistent with the principles of sustainable investing adopted by the Company. # Key risk factors Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. The Company invests in a large portion of assets that are denominated in currencies other than sterling; hence changes in the relevant exchange rate will affect the value of the investment. The Company can use derivatives, predominantly covered call options for investment purposes which may negatively affect the overall value of the Company. Investors in this Company should understand that capital growth is not the main priority and values may fluctuate and the level of income may vary from time to time and is not guaranteed. The Company may from time to time utilise gearing. A fuller definition of gearing is given in the glossary. # blackrock.com/uk/brsa The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. > 1 Based on one quarterly dividend of 2.00p per share declared on 2 November 2023 for the year ended 31 October 2023 and three quarterly dividends of 2.00p per share declared on 14 March 2024, 29 May 2024 and 1 August 2024 for the year ending 31 October 2024 and based on the share price as at close of business on 30 September 2024. ² Excluding 26,605,598 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 31 October 2023. Fund information (as at 30/09/24) Net asset value - capital only: 211.52p Net asset value - cum income: 212.04p Share price: 194.00p Discount to cum income NAV: 8.5% Net yield: 1 4.1% Total assets including current year revenue: £156.4m Net gearing: 0.5% Ordinary shares in issue: 2 73,755,707 Ongoing charges: 3 1.03% The information contained in this release was correct as at 30 September 2024. Information on the Company’s up to date net asset values can be found on the London Stock Exchange website at: https://www.londonstockexchange.com/exchange/news/market- news/market-news-home.html > RETH1024E/S-3950302-1/6 Comments from the Portfolio Managers Please note that the commentary below includes historic information on the Company’s NAV performance data and index and share price performance. The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results. For the one-month period ended 30 September 2024, the Company’s NAV decreased by 2.5% and the share price by 1.9% (all in sterling). The Company’s reference index, the Russell 1000 Value Index, returned -0.7% for the period. 1 At the sector level, the largest contributor to relative performance stemmed from stock selection in materials, with selection decisions in containers and packaging boosting relative performance. Relative performance was also boosted by the underweight allocation to financials, specifically in financial services. Other modest contributors during the period at the sector level included selection decisions in real estate and industrials. The largest detractor from relative performance stemmed from stock selection in health care, most notably in life sciences tools and services. Selection decisions in consumer discretionary also detracted from relative performance, with stock selection in automobiles dragging on relative performance. Other modest detractors at the sector level included selection decisions in information technology and consumer staples. Transactions During the month, the Company’s largest purchases included Amazon and Nasdaq. The Company exited its positions in Citizens Financial Group and UBS Group. 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 health care sectors. The Company’s largest underweight positions relative to the reference index were in the industrials, financials and real estate sectors. Source: Unless otherwise stated all data is sourced from BlackRock as at 30 September 2024. Source: 1 Datastream as at 30 September 2024. Risk: Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies. Any opinions or forecasts represent an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research, investment advice or a recommendation. > RETH1024E/S-3950302-2/6 Sector allocations (as at 30/09/24) % of total assets Health Care 18.2 Information Technology 15.9 Financials 15.9 Consumer Discretionary 10.7 Energy 7.0 Communication Services 6.3 Consumer Staples 6.2 Industrials 6.1 Materials 5.6 Utilities 5.5 Real Estate 2.3 Net Current Assets 0.3 Total 100.0 Allocations are as of date shown and do not necessarily represent current or future portfolio holdings. Allocations are as at the date shown and do not necessarily represent current or future portfolio holdings. Country allocations (as at 30/09/24) % of total assets United States 87.6 United Kingdom 4.5 France 2.3 South Korea 1.6 Ireland 1.5 Canada 1.1 Australia 1.1 Net Current Assets 0.3 Total 100.0 The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. > 1 The Company’s reference index is the Russell 1000 Value Index. Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. The above Net Asset Value (NAV) performance statistics are based on a NAV including income with any dividends reinvested on the ex-dividend date, net of ongoing charges and any applicable performance fee. Share price performance figures are calculated on a mid market basis in sterling terms with income reinvested on the ex-dividend date. The performance of the Company’s portfolio, or NAV performance, is not the same as share price performance and shareholders may not realise returns which are the same as NAV performance. A fuller definition of ongoing charges, which includes the annual management fee, is given in the glossary. Details of the management fee are given in the key company details section. The Company does not have a performance fee. Performance statistics source: BlackRock, Datastream. The latest performance data can be found on the BlackRock website at blackrock .com/uk/brsa . Sterling 1M% 3M% 6M% 1Y% 3Y% 5Y% Net asset value -2.5 -1.4 -3.3 10.9 19.5 38.7 Share price -1.9 -0.5 -0.4 10.4 14.7 26.3 Reference index 1 -0.7 3.1 0.8 16.3 30.3 52.7 Cumulative performance (as at 30/09/24) Performance statistics source: BlackRock, Datastream. 1 The Company’s reference index is the Russell 1000 Value Index. Sterling 30/0 9/23 30/0 9/24 % 30/0 9/22 30/0 9/23 % 30/0 9/21 30/0 9/22 % 30/0 9/20 30/0 9/21 % 30/0 9/1 9 30/0 9/20 % Net asset value 10.9 2.6 5.1 28.2 -9.5 Share price 10.4 -1.1 5.1 33.1 -17.3 Reference index 1 16.3 4.7 7.1 29.4 -9.5 Annual performance to the last quarter end (as at 30 September 2024) > RETH1024E/S-3950302-3/6 NMPI status The Company currently conducts its affairs so that its securities can be recommended by Independent Financial Advisers to ordinary retail investors in accordance with the Financial Conduct Authority’s (FCA) rules in relation to Non-Mainstream Pooled Investments (NMPI) and intends to continue to do so for the foreseeable future. The securities are excluded from the FCA’s restrictions which apply to non-mainstream pooled investments because they are shares in an investment trust. Key company details Fund characteristics: Launch date 24 October 2012 Dealing currencies Sterling Association of Investment Companies (AIC) sector North America Reference Index Russell 1000 Value Index Traded London Stock Exchange Management: Alternative Investment Fund Manager (with effect from 2 July 2014) BlackRock Fund Managers Limited Portfolio managers Tony DeSpirito, David Zhao and Lisa Yang Annual Management fee 0.70% per annum of the Company’s net assets (the annual management fee forms part of the ongoing charges as disclosed in the Fund Information section) Fund codes: ISIN GB00B7W0XJ61 Sedol B7W0XJ6 Bloomberg BRSA LN Reuters BRSA.L Ticker BRSA/LON Financial calendar: Year end 31 October Results announced June (half yearly) January (final) Annual General Meeting March Dividends paid (Quarterly) April/July/October/January Ten largest investments (as at 30/09/2024) Country of risk % total assets Citigroup United States 3.3 Cardinal Health United States 2.9 CVS Health United States 2.7 Comcast United States 2.7 Baxter International United States 2.4 Willis Towers Watson United States 2.3 American International United States 2.3 Kraft Heinz United States 2.3 Sanofi France 2.3 Johnson Controls International United States 2.3 Holdings are as at the date shown and do not necessarily represent current or future portfolio holdings. This information should not be relied upon by the reader as research, investment advice or a recommendation. Risk : The specific companies identified and described opposite do not represent all of the companies purchased or sold, and no assumptions should be made that the companies identified and discussed were or will be profitable. This should not be construed as investment advice or investment recommendation of those companies. A full disclosure of portfolio investments for the Company as at 30 June 2024 has been made available on the Company’s website at the link given below: https://www.blackrock.com/uk/individual/literature/policies /blackrock-sustainable-american-portfolio-disclosure.pdf # Want to know more? blackrock.com/uk/brsa | Tel: 0207 743 3000 | cosec@blackrock.com > RETH1024E/S-3950302-4/6 GLOSSARY OF TERMS DELTA Delta is one of four major risk measures used by option traders and investors. Delta measures the sensitivity of the option price to changes in the price of the underlying asset (i.e. stock). For example, if a stock option has a delta value of 0.80, this means that if the underlying stock increases in price by $1 per share, the option on it will rise in value by $0.80, all else being equal. BlackRock Sustainable American Income Trust plc portfolio invests in stocks and also utilises an option overwriting strategy (i.e. writing and selling covered call options) to enhance the portfolio’s income. Therefore, the delta of the portfolio (stocks and options securities combined) measures the portfolio’s price sensitivity to changes in the price of the portfolio’s underlying equity securities, all else being equal. DISCOUNT/PREMIUM Investment trust shares frequently trade at a discount or premium to the NAV. This occurs when the share price is less than (a discount) or more than (a premium) to the NAV. The discount or premium is the difference between the share price (based on mid-market share prices) and the NAV, expressed as a percentage of the NAV. Discounts and premiums are mainly the consequence of supply and demand for the shares on the stock market. GEARING Investment companies can borrow to purchase additional investments. This is called ‘gearing’. It allows investment companies to take advantage of a long-term view on a sector or to take advantage of a favourable situation or a particularly attractive stock without having to sell existing investments. Gearing works by magnifying the company’s performance. If a company ‘gears up’ and then markets rise and the returns on the investments outstrip the costs of borrowing, the overall returns to investors will be even greater. But if markets fall and the performance of the assets in the portfolio is poor, then losses suffered by the investor will also be magnified. NET YIELD The net yield is calculated using total dividends declared in the last 12 months (as at date of this factsheet) as a percentage of the month end share price. NAV (Net Asset Value) A company’s undiluted NAV is its available shareholders’ funds divided by the number of shares in issue (excluding treasury shares), before making any adjustment for any potentially dilutive securities which the Company may have in issue, such as subscription shares, convertible bonds or treasury shares. A diluted NAV is calculated on the assumption that holders of any convertibles have converted, subscription shares have been exercised and treasury shares are re-issued at the mid-market price, to the extent that the NAV per share is higher than the price of each of these shares or securities and that they are 'in the money'. The aim is to ensure that shareholders have a full understanding of the potential impact on the Company’s NAV if these instruments had been exercised on a particular date. ONGOING CHARGES RATIO Ongoing charges (%) = Annualised ongoing charges Average undiluted net asset value in the period Ongoing charges are those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital or revenue, and which relate to the operation of the investment company as a collective fund, excluding the costs of acquisition/disposal of investments, financing charges and gains/losses arising on investments. Ongoing charges are based on costs incurred in the year as being the best estimate of future costs and include the annual management fee. OPTIONS An option is a contract that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date) for a fee (the premium). The sale of call or put options on stocks that are believed to be overpriced or underpriced, based on the assumption that the options will not be exercised, is referred to as an ‘options overwriting’ strategy. The seller of the option collects a premium but if the option subsequently expires without being exercised, there will be no down side for the seller. However, if the stock rises above the exercise price the holder of the option is likely to exercise the option and this strategy can reduce returns in a rising market. The Company may write options to generate income and for efficient portfolio management. Risk is mitigated by ensuring that any call options are covered (meaning that call options are only written in respect of stocks already owned within the Company’s portfolio such that, if the options are exercised, the Company does not need to purchase stock externally at fluctuating market prices to meet its obligations under the options contract). Any use of derivatives for efficient portfolio management and options for investment purposes will be made on the basis of the same principles of risk spreading and diversification that apply to the Company’s direct investments. > RETH1024E/S-3950302-5/6 This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This is for illustrative and informational purposes and is subject to change. It has not been approved by any regulatory authority or securities regulator. Risk Warnings Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time. Levels and basis of taxation may change from time to time. Trust specific risks Exchange rate risk. The return of your investment may increase or decrease as a result of currency fluctuations. Risk to capital through derivative use. The fund may use derivatives to aim to generate more income. This may reduce the potential for capital growth. Capital Growth/Income variation. Investors in this Fund should understand that capital growth is not a priority and values may fluctuate and the level of income may vary from time to time and is not guaranteed. Derivative Risk. The Fund uses derivatives as part of its investment strategy. Compared to a fund which only invests in traditional instruments such as stocks and bonds, derivatives are potentially subject to a higher level of risk. Gearing Risk. Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall. Counterparty Risk. The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss. Equity Risk. The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events. Important Information Issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 2020394. For your protection telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock This document is marketing material. The Company is managed by BlackRock Fund Managers Limited (BFM) as the AIFM. BFM has delegated certain investment management and other ancillary services to BlackRock Investment Management (UK) Limited. The Company’s shares are traded on the London Stock Exchange and dealing may only be through a member of the Exchange. The Company will not invest more than 15% of its gross assets in other listed investment trusts. SEDOL is a trademark of the London Stock Exchange plc and is used under licence. Net Asset Value (NAV) performance is not the same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance. BlackRock Sustainable American Income Trust plc currently conducts its affairs so that their securities can be recommended by IFAs to ordinary retail investors in accordance with the Financial Conduct Authority’s rules in relation to nonmainstream investment products and intend to continue to do so for the foreseeable future. The securities are excluded from the Financial Conduct Authority’s restrictions which apply to non-mainstream investment products because they are securities issued by investment trusts. Investors should understand all characteristics of the funds objective before investing. For information on how to raise complaints please go to www.blackrock.com/uk/individual/about-blackrock/contact-us. Additionally, you can also write to the Investor Services Team, at BlackRock’s UK Registered Office, 12 Throgmorton Avenue, London, EC2N 2DL or e-mail them at enquiry@ukclientservices.blackrock.com BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. To ensure you understand whether our product is suitable, please read the fund specific risks in the Key Investor Document (KID) which gives more information about the risk profile of the investment. The KID and other documentation are available on the relevant product pages at www.blackrock.com/uk/its. We recommend you seek independent professional advice prior to investing. Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy. This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer. © 2024 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.