BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 October 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 |
-3.0% |
-2.7% |
5.0% |
8.5% |
29.0% |
81.5% |
Share price |
-2.2% |
-5.5% |
5.0% |
15.0% |
34.8% |
101.8% |
Russell 1000 Value
Index |
-3.4% |
-3.6% |
3.8% |
9.8% |
27.3% |
78.4% |
Source: BlackRock
At month
end |
|
Net asset value –
capital only: |
180.10p |
Net asset value – cum
income: |
182.11p |
Share
price: |
186.50p |
Premium to cum income
NAV: |
2.4% |
Net
yield¹:
|
4.3% |
Total assets including
current year
revenue: |
£142.8m |
Gearing: |
Nil |
Options
overwrite: |
15.8% |
Ordinary shares in
issue²: |
78,399,044 |
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 October
2019.
² Excluding 21,962,261 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 |
24.7 |
Health Care |
16.7 |
Energy |
9.3 |
Information Technology |
8.6 |
Industrials |
8.1 |
Consumer Staples |
6.8 |
Communication Services |
6.6 |
Consumer Discretionary |
6.1 |
Utilities |
2.5 |
Materials |
1.7 |
Net current assets |
8.9 |
|
----- |
|
100.0 |
|
===== |
Country Analysis |
Total Assets
(%) |
|
|
United States |
70.2 |
United Kingdom |
6.3 |
Netherlands |
3.5 |
Ireland |
2.8 |
Germany |
2.6 |
Switzerland |
1.8 |
Japan |
1.6 |
France |
1.1 |
Canada |
0.6 |
Norway |
0.3 |
Denmark |
0.3 |
Net current assets |
8.9 |
|
----- |
|
100.0 |
|
===== |
Ten Largest Investments |
|
|
Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
Verizon Communications |
USA |
4.1 |
JPMorgan Chase |
USA |
3.8 |
Wells Fargo |
USA |
3.6 |
Citigroup |
USA |
3.3 |
Bank of America |
USA |
2.8 |
Medtronic |
Ireland |
2.5 |
Williams Companies |
USA |
2.2 |
BP Group |
United Kingdom |
2.0 |
Koninklijke Philips |
Netherlands |
1.9 |
Comcast Corporation |
USA |
1.8 |
Tony
DeSpirito, Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 31 October
2019, the Company’s NAV decreased by 3.0% and the share
price by 2.2% (all in sterling). The Company’s benchmark, the
Russell 1000 Value Index, returned -3.4% for the period.
At the sector level, the largest contributor to relative
performance was a combination of stock selection and allocation
decisions in the health care sector. Within the sector, the
relative outperformance was generated from our selection among
health care providers and services and pharmaceuticals firms, as
well as our overweight exposure to the former. In utilities,
underweight exposure proved beneficial, mainly in the electric
utilities industry. Additionally, stock selection in industrials
proved additive. Notably, selection decisions among industrial
conglomerates and trading companies and distributors proved
beneficial. Lastly, stock selection in the consumer discretionary
sector contributed positively to relative results.
The largest detractor from relative performance was a
combination of stock selection and allocation decisions in the
information technology sector. Within the sector, underweight
exposure to the semiconductors industry hampered relative results.
In communication services, stock selection in the media and
diversified telecom services industries weighed on relative
returns. A combination of stock selection decisions and overweight
exposure to the energy sector also detracted from relative
performance, primarily due to decisions made within the energy
equipment and services industry. Lastly, underweight exposure to
real estate and stock selection in materials detracted from
relative returns during the month.
The portfolio’s option overwriting strategy contributed modestly
to performance in October.
Transactions/Options
Transactions: In October, the portfolio initiated a new position
in Fox. We also added to existing positions in JPMorgan and Bank of
America. Conversely, we exited our positions in Procter &
Gamble and Mondelez International. Additionally, we trimmed our
existing positions in Goldman Sachs and NextEra Energy.
Options: As of 31 October
2019, the Company’s options exposure was 15.8% and the delta
of the options 84.2.
Positioning
As of the period end, the Company’s largest overweight positions
relative to the benchmark were in the health care, information
technology and energy sectors. The Company’s largest underweight
positions relative to the benchmark were in the real estate,
utilities and materials sectors.
Source: BlackRock. Data as of 31 October
2019.
27 November 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.