London based BlackRock Investment Strategy Trust this week announced that it will review its’ investment objectives and policies on terms of sustainability amid the changing economic conditions following last month’s Brexit vote.
In the announcement published on the London Stock Exchange the Trusts stated:
“Since the implementation of the new investment objective and policy, interest rates have fallen and there has been a significant decline in the universe of investments which could support a multi-asset approach to meeting the stated investment objective and total portfolio return target. Although in the last 12 months the Company has paid dividends totalling 6.64 pence per share, which represents a dividend yield of 5.6% (based on Friday’s closing share price), since the change in investment objective and policy the Company’s NAV (cum income, with debt at fair value) has declined by 14%.”
The announcement, made by the Board and the Investment Manager of BlackRock, comes only 18 months after the trust, formerly known as British Assets, changed its’ name to Black Rock Income Strategies, prompted by a switch in management from F&C to Black Rock, and launched its’ latest investment strategy, implementing a multi-asset dividend driven approach.
The Trust claimed that revision of its’ investment strategy became necessary “in the context of the prevailing market conditions and investment outlook post the recent UK Brexit Referendum.”
It was announced that all share buy-backs will be suspended while the review is in progress.
Share prices of BlackRock Income Strategies Trust PLC (LON:BIST) dropped 5.72% in the days following the announcement.
Shares are trading at 111.49pence (+0.21%) at 16.07pm.
