BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 August 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 |
-1.3% |
8.8% |
13.4% |
6.1% |
38.2% |
92.4% |
| Share price |
-1.7% |
11.4% |
16.1% |
12.7% |
54.8% |
116.7% |
| Russell 1000 Value
Index |
-2.4% |
8.6% |
11.7% |
7.4% |
35.8% |
87.7% |
Source: BlackRock
| At month
end |
|
| Net asset value –
capital only: |
183.61p |
| Net asset value – cum
income: |
184.73p |
| Share
price: |
194.00p |
| Premium to cum income
NAV: |
5.0% |
| Net
yield¹: |
4.1% |
| Total assets including
current year
revenue: |
£141.7m |
|
Gearing: |
Nil |
| Options
overwrite: |
16.3% |
| Ordinary shares in
issue²: |
76,724,044 |
| 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 31 August
2019.
² Excluding 23,637,261 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 |
24.6 |
| Health Care |
17.2 |
| Information Technology |
9.1 |
| Energy |
9.0 |
| Consumer Staples |
7.7 |
| Industrials |
7.5 |
| Communication Services |
6.3 |
| Consumer Discretionary |
6.2 |
| Utilities |
2.7 |
| Materials |
2.4 |
| Net current assets |
7.3 |
|
----- |
|
100.0 |
|
===== |
| Country Analysis |
Total Assets
(%) |
|
|
| United States |
71.1 |
| United Kingdom |
6.2 |
| Netherlands |
3.5 |
| Ireland |
3.1 |
| Germany |
2.7 |
| Switzerland |
2.3 |
| Japan |
1.6 |
| Canada |
0.8 |
| France |
0.6 |
| Denmark |
0.5 |
| Norway |
0.3 |
| Net current assets |
7.3 |
|
----- |
|
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 |
3.1 |
| Bank of America |
USA |
2.6 |
| Medtronic |
Ireland |
2.6 |
| Williams Companies |
USA |
2.5 |
| BP Group |
United Kingdom |
2.1 |
| American International Group |
USA |
2.0 |
| Koninklijke Philips |
Netherlands |
2.0 |
|
|
|
|
|
|
Tony
DeSpirito, Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 31 August
2019, the Company’s NAV decreased by 1.3% and the share
price by 1.7% (all in sterling with dividends reinvested). The
Company’s benchmark, the Russell 1000 Value Index, returned -2.4%
for the period.
The largest contributor to relative performance was stock
selection in the health care sector. Notably, selection decisions
in the pharmaceuticals industry proved beneficial. Stock selection
and an overweight to health care equipment & supplies also
boosted relative performance in the sector. In consumer
discretionary, a combination of stock selection and an overweight
to multiline retail and household durables added to relative
return. Other notable contributors included the portfolio's cash
position, which averaged 9.1% during the month, and stock selection
in the information technology sector.
The largest detractor from relative performance was our
underweight allocation to real estate. The portfolio continues to
maintain 0% allocation to the sector due to our view that
valuations are unattractive. In utilities, an underweight to the
multi-utilities and electric utilities industries weighed on
relative performance. Other notable detractors included stock
selection in financials and an underweight to the household
products industry.
The portfolio’s option overwriting strategy contributed modestly
to performance in August.
Transactions/Options
Transactions: In August, the portfolio initiated new positions
in Bristol-Myers Squibb Company, Cisco Systems, NXP Semiconductors,
Equinor ASA and Henkel AG & Co. Conversely, we exited our
existing positions in Taiwan
Semiconductor Manufacturing Company Limited, Novartis AG, Diageo
plc and Suncor Energy.
Options: As of 31 August
2019, the Company’s options exposure was 16.3% and the delta
of the options was 84.5.
Positioning
As of the period end, the Company’s largest overweight positions
relative to the benchmark were in the health care, information
technology and financials sectors. The Company’s largest
underweight positions relative to the benchmark were in the real
estate, utilities, and communication services sectors.
Source: BlackRock. Data as of 31 August
2019.
18 September 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.