Title: Microsoft Word - BRAI KID Proposed Changes - UPDATED clean.docx URL Source: https://doc.morningstar.com/document/6e1deb1ae02cd5b2e6ef1a11bc372524.msdoc/?clientid=ajbell&key=805803a4ca9fc338 Markdown Content: # 1 # Purpose There is no requirement for investors to receive a Key Information Document before purchasing shares in BlackRock American Income Trust plc. However, this document provides you with key information about this investment product. It is not marketing material. The information was required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. Other documents are also available to help you understand the potential gains and losses of this product, notably the BlackRock American Income Trust plc (the “Fund”)’s annual and interim report and monthly factsheet. These can all be found on the Fund’s website at www.blackrock.com/uk/brai. # Product BlackRock American Income Trust plc (the "Fund"), Ordinary Shares (the "Shares"), ISIN: GB00B7W0XJ61 , is manufactured by BlackRock Fund Managers Limited (the "Manager"). The Manager is authorised in the UK and regulated by the Financial Conduct Authority (the "FCA"). More information is available at www.blackrock.com or by calling 020 7743 3000 . This document is dated 17 April 2025. # What is this product? Type: The Fund is a closed-ended investment company, incorporated as a public limited company in England and Wales. The Fund's Shares are listed and traded on the London Stock Exchange. Term: The Fund does not have a fixed term of existence, or maturity period, but in certain circumstances it may be wound up by the directors and shareholders of the Fund, subject to compliance with the Fund’s articles of association and applicable laws. The Fund may not be unilaterally terminated by the Manager. Objectives  The Fund aims to provide long term capital growth, whilst paying an attractive level of income.  The Fund will seek to achieve its objective by investing predominantly in a diversified portfolio of US equity securities, with a systematic (i.e. rules based) active investment approach, focusing on large and medium capitalisation companies listed on a stock exchange. Market capitalisation is the share price of the Fund multiplied by the number of shares in issue. A security is a US equity security if: (i) the equity security is listed, quoted or traded on a US stock exchange; or (ii) the majority of the Fund’s economic exposure is to the US.  The Fund may also invest in equity securities that are not US equity securities and hold other securities from time-to-time including, inter alia, options, futures contracts, convertible securities, fixed interest securities, preference shares, non-convertible preferred stock and depositary receipts.  The Investment Manager seeks to pursue its investment objective by investing in a systematic manner, harnessing big data, using machine learning and the power of artificial intelligence to inform proprietary return forecast models that incorporate quantitative (i.e. mathematical or statistical) analysis. These forecast models are designed to identify aspects of mispricing across stocks which the Investment Manager can seek to capture by over- and under-weighting particular equities while seeking to control incremental risk. The Investment Manager then constructs and rebalances the portfolio by integrating its investment insights with the model-based optimisation process.  The Fund has no stated minimum holding period for investments and may buy or sell securities whenever the Investment Manager sees an appropriate opportunity. The Investment Manager may engage in active and frequent trading of its investments.  The Fund may invest in derivatives for efficient portfolio management. Any use of derivatives for efficient portfolio management is made based on the same principles of risk spreading and diversification that apply to the Fund’s direct investments.  The Fund may borrow to purchase assets for the Fund. The Fund may, via derivatives and borrowing, generate varying amounts of market leverage (i.e. where the Fund gains market exposure in excess of the value of its assets). This will magnify any gains or losses made by the Fund.  The Fund is actively managed and the Investment Manager has discretion to select the Fund's investments.  The Fund’s full investment objective and policy is set out in the current AIFMD Fund Disclosures document, which can be found at www.blackrock.com/uk/brai .  The return on your investment in the Fund is directly related to the prevailing market price of the Fund’s Shares and may not reflect the value of the underlying assets of the Fund at the point of sale less costs (see “What are the costs?” below). Shares of the Fund are bought and sold on the secondary market. Typically, at any given time on any given day the price you pay for a Share will be higher than the price at which you can sell it.  The price of equity securities fluctuates daily and may be influenced by factors affecting the performance of the individual companies issuing the equities, as well as market factors (e.g. supply and demand), and broader economic and political developments which in turn may affect the value of your investment.  The price of a derivative changes on a daily basis depending on the value of the underlying reference asset(s) which in turn may affect the value of your investment. A change in the value of underlying reference assets can have a greater impact on the value of derivatives than if the assets were held directly since derivatives can be more sensitive to changes in the value of underlying reference assets.  The Shares carry the right to receive dividends declared by the Fund.  The relationship between the return on your investment, how it is impacted and the period for which you hold your investment is considered below under “How long should I hold it and can I take money out early?”  The Shares are denominated in Sterling, the Funds base currency. Intended retail investor: The Fund is intended for retail investors with the ability to bear losses up to the amount invested in the Fund. Insurance benefits: The Fund does not offer any insurance benefits. # Key Information Document 2 # What are the risks and what could I get in return? Risk Indicator > Lower risk Higher risk The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. We have classified this product as 5 out of 7, which is a medium high risk class. This classification rates the potential losses from future performance at a medium high level, and poor market conditions could affect the value of your investment. This classification is not guaranteed and may change over time and may not be a reliable indication of the future risk profile of the Fund. The lowest category does not mean risk free.  Be aware of currency risk. If you receive payments in a currency that is different to the product's base currency, the final return you will get depends on the exchange rate between the two currencies. This risk is not considered in the indicator shown above. Please refer to the product's AIFMD Disclosure for details of other materially relevant risks that may apply to this product. This product does not include any protection from future market performance so you could lose some or all of your investment.  If the product is not able to pay you what is owed, you could lose your entire investment. Investment performance information  The Fund invests predominantly in a diversified portfolio of US equity securities, with a systematic (i.e. rules based) active investment approach, focusing on large capitalisation and medium capitalisation companies. Market capitalisation is the share price of the Fund multiplied by the number of shares in issue.  The Fund’s performance is compared with the Russell 1000 Value Index in GBP (net total return) 1 (“Index”). The Index is comprised of mega, large, mid, and small capitalisation companies listed in the US which may cause the overall performance of the Index as well as the Fund to be volatile. What could affect my return positively? A positive return of the Fund may be achieved when equity markets are rising and the outlook for the US equity market is positive. What could affect my return negatively? A negative return of the Fund may be achieved when equity markets are falling and the outlook for US equity markets is negative. Under severe market conditions, it is expected that negative returns will be experienced across most asset classes and the Fund is likely to experience losses. An investor seeking to sell their shares under such adverse conditions may experience a financial loss due to negative performance, share price volatility, trading costs, and potential lack of liquidity. The return on your investment in the Fund is directly related to the prevailing market price of the Fund’s Shares and may not reflect the value of the underlying assets of the Fund at the point of sale. # What happens if BlackRock Fund Managers Limited is unable to pay out? The Manager is not obliged to pay out the Shares in the Fund. The Fund is a closed-ended investment company and, as such, shareholders in the Fund have no right to have their shares redeemed or repurchased by the Fund. The Fund is required to pay out any surplus assets to shareholders on a winding up of the Fund, provided the Fund has satisfied all of its liabilities. As a shareholder of the Fund you would not be able to make a claim to the Financial Services Compensation Scheme about the Fund in the event that the Fund is unable to pay out. > 1 The Company’s performance reference index (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 considered to be the most accurate, appropriate, consistent and fair comparison for the Company. The risk indicator assumes you keep the product for 5 years. The actual risk can vary significantly if you cash in at an early stage and you may get back less. 3 # What are the costs? This disclosure has been prepared with reference to the FCA’s statement on 19 September 2024 that Investment Trusts are no longer required to comply with the cost disclosure requirements under the UK PRIIPs Regulation. The person/company selling you or advising you about this product may charge you costs (which may include broker commission, platform fees, advisory fees and/or stamp duty). If so, this person/ company will provide you with information about these costs, and show you the impact that all costs will have on your investment over time. In purchasing the Fund’s ordinary shares, as with shares in listed companies more generally, there should be no additional costs paid by you other than those mentioned above. The Association of Investment Companies (“AIC”) has recommended that Investment Trusts disclose an Ongoing Charges Figure (“OCF”). This is calculated annually as a percentage of the average net assets and provides an indication of the underlying day-to-day operating costs of the Fund. BlackRock American Income Trust plc discloses its operating costs in its annual report and accounts, along with an OCF in line with AIC guidance. The most recently audited OCF for the year ended 31 October 2024 was 1.06%*. However, effective 22 April 2025, the management fee was reduced. Please see the footnote below the table for further details. More information on the calculation of the OCF, as well as costs more generally, are set out in the annual report which can be found at the following link: www.blackrock.com/uk/brai. The costs within the OCF are expenses incurred by the Fund and for the avoidance of doubt, the OCF is not an additional cost paid by shareholders to the Fund. The Fund’s published net asset value is net of all costs/fees included within the OCF calculation. Therefore, in line with the FCA’s forbearance statement, the costs set out in the below tables are now marked as zero as there are no additional costs payable by you to the Fund or its Manager associated with purchasing the Fund’s shares. Investment GBP 10,000 Scenarios If you cash in after 1 year If you cash in after 3 years If you cash in after 5 years Total costs 0 GBP 0 GBP 0 GBP Impact on return (RIY) per year 0% 0% 0% Composition of Costs The table below shows: - the impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period. - the meaning of the different cost categories. This table shows the impact on return per year One -off costs Entry costs - We do not charge an entry fee.* * Exit costs - We do not charge an exit fee.** Ongoing costs Portfolio transaction costs 0% You should be aware that operating costs are incurred by the Fund, as set out in the Fund’s annual report. Other ongoing costs 0% The Fund’s operating costs and OCF are set out in the Company’s annual report. The most recently audited OCF for the year ended 31 October 2024 was 1.0 6%*. More information on the calculation of the OCF, as well as costs more generally, are set out in the annual report which can be found at the following link: www.blackrock.com/uk/brai Incidental costs Performance fees - There is no performance fee for this product. Carried interests - There are no carried interests for this product. * Effective from 22 April 2025, the management fee has been reduced from 0.70% per annum of the net asset value (NAV) to 0.35% of the NAV up to and including £350 million and 0.30% of the NAV in excess of £350 million. The revised management fees will produce a competitive OCR estimated to be approximately 0.70%-0.80%. Furthermore, the Company will benefit from a six-month management fee holiday for the period from 1 May 2025 to 31 October 2025. ** Please refer to the person selling you or advising you about this product for the actual charges. # How long should I hold it and can I take money out early? Recommended Holding Period: 5 years The recommended holding period (RHP) has been calculated in line with the investment strategy of the Fund and the time frame in which it is expected that it will be possible to achieve the investment objective of the Fund. Any investment should be considered against your specific investment needs and appetite for risk. BlackRock has not considered the suitability or appropriateness of this investment for your personal circumstances. If you are in any doubt about the suitability of the Fund to your needs you should seek appropriate professional advice. Details of dealing frequency can be found under “What is this product?”. You may receive less than expected if you cash in earlier than the RHP. The RHP is an estimate and must not be taken as a guarantee or an indication of future performance, return or risk levels. Please see the “What are the costs?” section for details of any exit fees. # How can I complain? If you are not entirely satisfied with any aspect of the service you have received and you wish to complain, details of our complaints handling process are available at 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 cosec@blackrock.com. # Other relevant information The latest version of this document, the latest annual report and half-yearly report and any additional information issued to shareholders can be obtained free of charge, in English, from www.blackrock.com or by calling the Investor Services Team on 020 7743 3000 or from your broker, financial adviser or distributor. The benchmark(s) referenced herein are the intellectual property of the index provider(s). The product is not sponsored or endorsed by the index provider(s). Please refer to the product’s webpage and/or documents via www.blackrock.com for full disclaimer(s).