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BlackRock American Income Trust PLC on Wednesday said the outlook for the US economy remains ‘broadly positive’, as it posted full-year gains in its net asset value per share. The investor in US value equities reported a NAV total return of 11.5% for the financial year that ended October 31, while its benchmark, the Russell 1000 Value Index, returned 8.4% over the same period. NAV per ordinary share rose 6.2% to 229.56 pence at October 31 from 216.24 pence a year earlier, with the investment trust noting that US equity markets delivered ‘solid gains’ throughout the year, despite ‘considerable political and economic volatility’. From a sector perspective, the trust said its positions within IT, Financials, Health Care, Consumer Staples and Consumer Discretionary all made ‘significantly’ positive contributions to relative returns. It explained that many of the largest contributors were overweight positions in technology stocks benefiting from ongoing enthusiasm around AI, or capital markets-exposed banks ‘that caught a tailwind from both a buoyant economy and trading activity in the market.’ It cited Lam Research Corp, Morgan Stanley, Citigroup Inc and Bank of America Corp as the top contributors to relative returns. In terms of detractors, energy and real estate offered significant negative contributions. The trust noted stock selection within energy as the source of the negative contribution, citing an overweight position in energy explorer and producer Devon Energy Corp versus an underweight in Marathon Petroleum Corp. Within real estate, the investment trust said an overweight in data centre-focused REIT Equinix Inc was the largest detractor, ‘as investors fretted over capital expenditure requirements’. BlackRock American Income shares were trading flat at 236.98 pence on Wednesday afternoon in London. Total dividends per share amounted to 11.70 pence for the financial year, up 46% from 8.0p a year prior. ‘The outlook for the US economy remains broadly positive, supported by moderating inflation, resilient consumer demand and the Federal Reserve‘s shift toward a more accommodative policy stance. Although uncertainty surrounding trade measures and regulatory priorities may continue to generate short-term volatility, these factors are not expected to derail the underlying momentum of the US economy, which continues to compare favourably with other major developed markets,’ said Chair David Barron. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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