BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 30 June 2019
and unaudited.
Performance at month end with net
income reinvested
|
One
Month |
Three
Months |
Six
Months |
One
Year |
Three
Years |
Five years |
Net asset value |
5.1% |
6.8% |
14.5% |
9.9% |
40.6% |
93.6% |
Share price |
4.8% |
9.7% |
17.2% |
11.5% |
58.2% |
105.0% |
Russell 1000 Value
Index |
6.1% |
6.3% |
16.3% |
12.5% |
40.5% |
92.5% |
Source: BlackRock
At month
end |
|
Net asset value –
capital only: |
178.97p |
Net asset value – cum
income: |
180.42p |
Share price: |
184.50p |
Premium to cum income
NAV: |
2.3% |
Net yield¹: |
4.3% |
Total assets including
current year revenue: |
£134.2m |
Gearing: |
Nil |
Options overwrite: |
15.7% |
Ordinary shares in
issue²: |
74,374,044 |
Ongoing charges³: |
1.1% |
¹ In line with the dividend policy announced in the Annual Report
on 17 December 2018 of dividends
amounting to 8.00p per share for the year ending 31 October 2019 and based on the share price as
at close of business on 30 June
2019.
² Excluding 25,987,261 ordinary shares held in treasury.
³ Ongoing charges represent the management fee and all other
operating expenses excluding interest as a % of average
shareholders’ funds for the year ended 31
October 2018.
Benchmark Sector
Analysis |
Total Assets
(%) |
|
|
Financials |
25.3 |
Health Care |
16.6 |
Information Technology |
10.9 |
Energy |
9.6 |
Consumer Staples |
7.4 |
Industrials |
6.2 |
Communication Services |
6.2 |
Consumer Discretionary |
4.7 |
Utilities |
2.5 |
Materials |
2.5 |
Net current assets |
8.1 |
|
----- |
|
100.0 |
|
===== |
Country Analysis |
Total Assets
(%) |
|
|
United States |
72.8 |
United Kingdom |
6.2 |
Netherlands |
3.0 |
Ireland |
2.8 |
Switzerland |
2.6 |
Germany |
1.8 |
Canada |
1.1 |
Japan |
0.8 |
Denmark |
0.5 |
France |
0.3 |
Net current assets |
8.1 |
|
----- |
|
100.0 |
|
===== |
|
|
Ten Largest Investments |
|
|
Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
Verizon Communications |
USA |
4.2 |
JPMorgan Chase |
USA |
3.6 |
Wells Fargo |
USA |
3.4 |
Citigroup |
USA |
3.4 |
Bank of America |
USA |
2.8 |
Williams Companies |
USA |
2.5 |
Microsoft |
USA |
2.4 |
BP Group |
United Kingdom |
2.3 |
Pfizer |
USA |
2.3 |
Medtronic |
Ireland |
2.2 |
|
|
|
|
|
|
Tony
DeSpirito, Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 30 June
2019, the Company’s NAV increased by 5.1% and the share
price by 4.8% (all in sterling). The Company’s benchmark, the
Russell 1000 Value Index, returned 6.1% for the period.
At the sector level, the largest contributor to relative
performance was underweight exposure to the real estate sector.
Within the sector, the relative outperformance was generated from
our underweight exposure to equity real estate investment trusts
(REITs). In utilities, our lack of exposure also proved beneficial,
primarily among multi-utilities and electric utilities.
Additionally, stock selection and allocation decisions in consumer
discretionary proved additive. Notably, underweight exposure to the
hotels, restaurants, & leisure industry proved beneficial, as
did selection decisions among automobiles firms. Lastly, overweight
exposure to the information technology sector contributed
positively to relative results.
The largest detractor from relative performance was our cash
balance. Among rapidly rising stock prices, our elevated cash
balance proved detrimental. In consumer staples, stock selection in
the tobacco, personal products, and food products industries
weighed on relative returns. Stock selection decisions in the
materials sector also detracted from relative performance,
primarily due to decisions made within the metals & mining
industry. In health care, stock selection and overweight exposure
to health care providers & services proved harmful, and in
industrials, underweight exposure to machinery names hampered
relative returns. Lastly, stock selection in communication services
and energy hindered relative performance.
The portfolio’s option overwriting strategy detracted from
performance in June amid rising U.S. stock prices.
Transactions/Options
Transactions: In June, the portfolio initiated a new position in
Sony. We also added to existing positions in Williams and First
Energy. Conversely, we exited our positions in Anadarko Petroleum,
Honeywell International and Masco, and trimmed our existing
positions in Oracle and ONEOK.
Options: As of 30 June 2019,
the Company’s options exposure was 15.7% and the delta of the
options 83.2.
Positioning
As of the period end, the Company’s largest overweight positions
relative to the benchmark were in the information technology,
health care and financials sectors. The Company’s largest
underweight positions relative to the benchmark were in the real
estate, utilities and industrials sectors.
Source: BlackRock. Data as of 30 June
2019.
17 July 2019
Latest information is available by typing blackrock.co.uk/brna
on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or
"8800" on Topic 3 (ICV terminal). Neither the contents of the
Manager’s website nor the contents of any website accessible from
hyperlinks on the Manager’s website (or any other website) is
incorporated into, or forms part of, this announcement.