Edison Highlights Strategic Shift in BlackRock American Income Trust

Edison Investment Research Limited has released a new report on BlackRock American Income Trust (LSE: BRAI). As of April 17, 2025, BRAI implemented a significant change in its strategy, approved overwhelmingly by shareholders. This shift is aimed at enhancing performance, reducing costs, and achieving greater scale. The management of the trust moved from BlackRock's US Income and Value team to the Systematic Active Equity (SAE) team.

BRAI stands out in the investment landscape by adopting a systematic approach with a focus on value and income, contrasting with the prevalent growth funds. The strategic revamp also includes an increased dividend, reduced fees, and exit opportunities for shareholders. Additionally, if performance or minimum fund size targets are unmet over three years, a 100% tender offer is available.