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LONDON - BlackRock (NYSE:BLK) American Income Trust plc (BRAI) has implemented a new systematic active equity investment approach effective April 17, 2025, according to the company’s half-yearly financial report released on Wednesday.
The trust’s net asset value per share decreased by 4.9% during the six months ended April 30, 2025, slightly outperforming its benchmark Russell 1000 Value Index, which fell 5.7%. The share price, however, rose by 2.7% during the same period.
The new investment strategy combines artificial intelligence, big data, and human expertise to identify market inefficiencies. BlackRock’s Systematic Active Equity team, which manages over $256 billion globally, will run the portfolio using quantitative methods to analyze company fundamentals, market sentiment, and macroeconomic factors.
"The Company is believed to be the first and only way to access a Systematic Active Equity strategy in a closed-ended investment trust structure in the UK," said David Barron, Chairman of the trust.
Alongside the investment approach change, the company introduced an enhanced dividend policy that calculates and pays dividends quarterly based on 1.5% of NAV at the end of each calendar quarter, representing approximately 6% of NAV annually. The second quarterly dividend of 3.03p per share has been declared.
The trust also secured improved management fee terms, with rates reduced to 0.35% of NAV up to £350 million and 0.30% above that threshold, compared to the previous flat rate of 0.70%. Additionally, BlackRock has granted a six-month management fee holiday from May through October 2025.
As part of the transition, shareholders were offered a tender opportunity, with approximately 16.15% of shares being validly tendered at 98% of NAV.
The portfolio held 233 positions as of April 30, with the largest sector allocations to financials (23%), health care (15.5%), and industrials (14.5%). Berkshire Hathaway (NYSE:BRKa), JPMorgan Chase (NYSE:JPM), and Walmart (NYSE:WMT) were the three largest holdings.
The report noted that the trust’s value-focused approach differentiates it from many other US-focused investment trusts in the UK market.
Based on a press release statement, the trust’s assets totaled £114.3 million at the end of April 2025, down from £155.1 million at October 31, 2024, primarily reflecting the tender offer and share repurchases.
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