TIDMBRNA 
 
BLACKROCK NORTH AMERICAN INCOME TRUST PLC 
 
    LEI:  549300WWOCXSC241W468 - Article 5 Transparency Directive, DTR 4.2 
 
                  Half Yearly Financial Report 30 April 2020 
 
PERFORMANCE RECORD 
 
FINANCIAL HIGHLIGHTS 
 
                                                                       As at           As at 
                                                                    30 April      31 October          Change 
                                                                        2020            2019               % 
 
Net assets (GBP'000)1                                                  130,003         142,786            -9.0 
 
Net asset value per ordinary share (pence)                            160.09          182.13           -12.1 
 
- with dividends reinvested2                                                                            -9.9 
 
Ordinary share price (mid-market) (pence)                             160.50          186.50           -13.9 
 
- with dividends reinvested2                                                                           -11.7 
 
Russell 1000 Value Index (with dividends reinvested)                1,163.57        1,313.68           -11.4 
 
Premium to cum income net asset value2                                  0.3%            2.4% 
 
                                                              --------------  --------------  -------------- 
 
 
 
                                                                 For the six     For the six 
                                                                months ended    months ended 
                                                                    30 April        30 April          Change 
                                                                        2020            2019               % 
 
Revenue 
 
Net profit after taxation (GBP'000)                                      2,502           2,144           +16.7 
 
Revenue earnings per ordinary share (pence)                             3.10            3.06            +1.3 
 
                                                              --------------  --------------  -------------- 
 
Interim dividends (pence) 
 
1st interim                                                             2.00            2.00             0.0 
 
2nd interim                                                             2.00            2.00             0.0 
 
                                                              --------------  --------------  -------------- 
 
Total dividends paid                                                    4.00            4.00             0.0 
 
                                                                    ========        ========        ======== 
 
1       The change in net assets reflects shares issued during the period, 
dividends paid and market movements. 
 
2       Alternative Performance Measures, see Glossary in the half yearly 
report and financial statements. 
 
ANNUAL PERFORMANCE SINCE LAUNCH ON 24 OCTOBER 2012 TO 30 APRIL 2020 
 
                            NAV   Russell 1000    Share Price 
                                   Value Index 
 
2013#                      17.1           27.4           16.5 
 
2014                       11.8           16.9            2.4 
 
2015                        4.9            4.1            4.7 
 
2016                       34.2           34.6           43.0 
 
2017                       11.4            8.3            6.3 
 
2018                        6.6            7.1           10.3 
 
2019                        8.5            9.8           15.0 
 
2020*                      -9.9          -11.4          -11.7 
 
#     Since launch on 24 October 2012 to 31 October 2013. 
 
*     Performance for six month period ended 30 April 2020. 
 
Sources: BlackRock and Datastream. 
 
Performance figures have been calculated in sterling terms with dividends 
reinvested. 
 
CHAIRMAN'S STATEMENT FOR THE SIX MONTHSED 30 APRIL 2020 
 
MARKET OVERVIEW 
The past six months have proved extremely challenging for stock market 
investors. Whilst the end of 2019 and start of 2020 were rewarding and saw a 
combination of high returns and low volatility, in mid-February the outbreak of 
the COVID-19 pandemic, compounded by an unprecedented slump in the oil price, 
sent stock markets plummeting. Despite significant fiscal and monetary 
stimulus, the social distancing and lockdown measures required to combat the 
virus caused the U.S. economy to contract during the first quarter at its 
sharpest rate since the end of 2008. Although stock markets rallied in April, 
high market volatility is expected to remain until there is greater clarity on 
how long it will take for more accustomed levels of economic activity to 
resume, which in turn will depend on the extent to which the spread of COVID-19 
can be contained. 
 
PERFORMANCE 
Against this difficult backdrop, over the six months to 30 April 2020, the 
Company's net asset value per share (NAV) returned -9.9% compared with a return 
of -11.4% in the Russell 1000 Value Index. The Company's share price returned 
-11.7% over the same period (all figures in sterling terms with dividends 
reinvested). Further information on investment performance is given in the 
Investment Manager's Report. 
 
Since the period end and up to close of business on 23 June 2020, the Company's 
NAV has increased by 6.1% and the share price has fallen by 0.9% (both 
percentages in sterling with dividends reinvested), reflecting the shares 
moving to a discount over this period. 
 
EARNINGS AND DIVIDS 
The Company's revenue return per share for the six months ended 30 April 2020 
amounted to 3.10p compared with 3.06p for the corresponding period in 2019. On 
20 March 2020 the Board declared the first quarterly dividend of 2.00p per 
share which was paid on 29 April 2020. A second quarterly dividend of 2.00p per 
share has been declared and will be paid on 3 July 2020 to shareholders on the 
register on 22 May 2020. These are in line with payments made in 2019. 
 
In the latest Annual Report, the Board confirmed that it intended to continue 
with the established dividend policy of paying 2.00p per share for each quarter 
of the current financial year, and the Board intends to maintain this policy. 
One of the strengths of investment trusts over competing fund structures is 
their ability to draw on revenue and distributable capital reserves to maintain 
dividend pay-outs in periods of stress. One of the features of our approach is 
writing covered call options to enhance revenue and recent volatility has meant 
that the value obtained from writing option premia has increased. The outlook 
for dividends from the portfolio remains unusually uncertain and the Board 
will, as in previous years, review the current policy in the first quarter of 
the Company's next financial year. 
 
GROWTH IN THE COMPANY'S EQUITY 
The Board is committed to growing the Company over time, which should improve 
liquidity for all shareholders. 
 
Until mid-February, when there were large day-to-day moves in share prices, the 
Company's shares continued to enjoy a premium rating with ongoing demand mainly 
from retail investors. In 2019, the Company ranked seventh overall for annual 
tap issuances in the investment trust sector relative to market capitalisation. 
 
During the six months to 30 April 2020, the Company's share price to NAV ranged 
between a discount of 21.8% and a premium of 3.4% and the Company reissued 
2,805,000 ordinary shares from treasury at a premium to NAV. Since the period 
end and up to the date of this report, no further ordinary shares have been 
reissued. 
 
OUTLOOK 
The global spread of COVID-19 has rocked financial markets and the fall in U.S. 
stocks has followed a record long bull market and economic expansion. At the 
beginning of the year ongoing economic growth was the base case expectation but 
now we are contemplating a deep virus-induced economic downturn of unknown 
duration. Anecdotal evidence from China is encouraging with factories and 
stores already reopening, but a premature end to lockdowns could lead to a 
second wave of infections and delay a recovery. 
 
Tailwinds from monetary and fiscal policy and subsequent stimulus measures 
should eventually promote stronger economic conditions once the virus threat 
recedes. We believe the Portfolio Managers' focus on sustainability and 
companies with high quality balance sheets is even more important than ever in 
current conditions. 
 
SIMON MILLER 
24 June 2020 
 
INVESTMENT MANAGER'S REPORT 
 
MARKET OVERVIEW 
For the six month period ended 30 April 2020, U.S. large-cap stocks, as 
represented by the S&P 500® Index, declined by 3.2% (in U.S. dollar terms). The 
path was not a smooth ride and can be seen in three parts: the S&P 500® Index 
increased by 6.8% during the final two months of 2019 before a sharp sell-off 
in February and March of 2020, which was followed by a swift rebound in April. 
Stocks began the year with positive returns, as prices climbed on the heels of 
upbeat earnings results, improving business sentiment and a Phase 1 U.S./China 
trade deal. Stock prices reached a peak on 19 February 2020 before beginning a 
swift reversal on the heels of the global spread of COVID-19. The pandemic 
prompted countries to adopt varying degrees of social distancing, 
self-quarantine and lockdown measures. Global economic activity declined at a 
historically high rate as non-essential businesses were forced to close 
indefinitely in many countries. Concern over the human and economic toll also 
fuelled measures from governments and central bankers globally. In summary, 
this chain of events brought the longest enduring U.S. bull market to a sudden 
end. 
 
Aggressive and coordinated monetary and fiscal policy measures helped to 
stabilise U.S. financial markets in the final two weeks of the first quarter. 
The Federal Reserve (the Fed) twice cut its benchmark interest rate in March to 
a current range of 0.0% to 0.25% for overnight bank lending. Furthermore, on 23 
March 2020 the Fed declared an unlimited balance sheet expansion for the 
foreseeable future. These actions helped to improve market liquidity across 
credit markets, as many investors sought to reduce risk levels in their 
portfolios. Fiscal policy legislation also eased market fears, including the 
unprecedented U.S.$2 trillion stimulus package announced on 27 March 2020 to 
support individuals and businesses. This translates to roughly 10% of annual 
U.S. gross domestic product (i.e. the market value of all final goods and 
services produced in the country). 
 
PORTFOLIO OVERVIEW 
The largest contributor to relative performance was an elevated cash balance, 
which we have maintained as our preferred method of defensive exposure. 
Valuations remain stretched among traditional defensive sectors and we have 
used cash as a buffer against volatile equity markets. In consumer 
discretionary, stock selection in the multiline retail and household durables 
industries proved beneficial, as did our underweight to the hotels, restaurants 
and leisure industry. An underweight to real estate, most notably equity real 
estate investment trusts (REITs), also benefited relative performance during 
the period. Lastly, a combination of stock selection and an overweight to 
information technology boosted relative returns. Most notably, our overweight 
to the software industry and stock selection among technology hardware, storage 
and peripherals providers, positively impacted relative performance. 
 
The primary detractor from relative performance was stock selection and 
allocation decisions in financials. Overweight exposure to banks was 
particularly harmful given the impact of starkly lower interest rates on 
portfolio holdings. In consumer staples, an underweight to the household 
products and food and staple retailing industries also weighed on relative 
returns. Lastly, stock selection and allocation decisions in health care hurt 
relative returns, primarily due to our underweight exposure to the 
biotechnology and life sciences tools and services industries. 
 
As expected, writing covered call options slightly hindered relative 
performance during the final two months of 2019 amid rising stock prices. 
Conversely, writing covered call options benefited the portfolio amid 
dramatically declining U.S. stock prices during February and March of 2020. In 
summary, the covered call options contributed positively to absolute 
performance for the six-month period. As designed, the Company's option 
overwrite component enhanced the portfolio's income during the period. 
 
Below is a comprehensive overview of our allocations (in GBP) at the end of the 
period and overweight/underweight positions compared to the benchmark. At the 
end of the period, the portfolio's cash position was 8.2%. 
 
Financials: 2.8% overweight (23.7% of the portfolio) 
Financials represent the Company's largest sector allocation and we remain 
particularly bullish on the U.S. banks, insurers and insurance brokers. We 
believe the U.S. banks are safer and sounder investments today than before the 
financial crisis. They have stronger balance sheets (i.e. higher capital 
levels), revamped company cost structures and disciplined loan underwriting has 
contributed to benign credit trends. Bank valuations are compelling relative to 
other cyclical sectors (i.e. industrials) and potential tailwinds from 
deregulation and investor-friendly capital return policies also bode well for 
investors, in our view. A low interest rate environment is harmful to net 
interest income, but with lower exposure to regional banks, the Company is 
relatively less exposed to changes in interest rates. With regard to insurers 
and insurance brokers, we like these companies for their attractive valuations 
and relatively stable business models. Over the last year, insurers and brokers 
have benefited from strong pricing power. Pricing power is reflective of low 
U.S. interest rates, two straight years of larger than expected catastrophe 
losses, and large institutions (i.e. AIG) taking capacity out of the market. 
 
Health Care: 2.3% overweight (18.2% of the portfolio) 
Secular growth opportunities in health care are a by-product of demographic 
trends. Older populations spend more on health care than younger populations. 
In the United States, a combination of greater demand for health care services 
and rising costs drive a need for increased efficiency within the health care 
ecosystem. We believe innovation and strong cost control can work hand-in-hand 
to address this need and companies that can contribute in this regard may be 
poised to benefit. 
 
On the innovation front, there is a need for newer and more effective medicines 
and therapies. The Food and Drug Administration has made this a priority by 
increasing the volume and speed of drug approvals, which bodes well for 
pharmaceutical manufacturers that can deliver new drugs to the market. From an 
investment standpoint, we prefer pharmaceutical companies with a proven ability 
to generate high research & development productivity, versus those that focus 
on one or two key drugs and rely upon raising their prices to drive growth. 
 
From a cost perspective, health maintenance organisations (HMOs) have an 
economic incentive to drive down costs as they provide health insurance 
coverage to constituents. The HMOs have demonstrated a strong ability to manage 
costs by leveraging their scale and technology to drive efficiencies. 
Governments, in turn, are increasingly outsourcing to HMOs as a way to lower 
costs and balance their budgets. We prefer HMOs with diversified business 
units, exposure to faster-growing areas of government including Medicare and 
Medicaid, and opportunities to enhance their profitability through controlling 
costs. 
 
Information Technology: 1.7% overweight (8.6% of the portfolio) 
In the technology sector, buzzwords such as 'artificial intelligence', 'big 
data' and 'disruption' are increasingly utilised to describe growth 
opportunities and the overall operating environment. Of course, a portion of IT 
still incubates companies similar to the nascent, high-flying and cash-poor 
innovators that ushered the U.S. equity market into the sharp rise and eventual 
tumble that is known as the dot-com bubble. However, the fundamental identity 
of the typical technology company is also changing. An increasing number of 
constituents in the IT sector are what we refer to as 'industrial tech'. These 
firms are competitively insulated from disruptors, well-positioned to take 
advantage of long-term secular tailwinds and exhibit growth in earnings and 
free cash flow. A swelling number of companies in the sector have also adopted 
dividend payments to shareholders as a viable use of cash, rejecting the notion 
that IT firms can only add value to investors via their growth potential. We 
believe this trend is poised to continue, as many mature IT companies are flush 
with cash and shareholders are increasingly willing to reward management teams 
for return of capital. 
 
Energy: 1.7% overweight (8.1% of the portfolio) 
The portfolio maintains a modest overweight to the energy sector. We favour 
oil-weighted companies over those levered to natural gas and prefer exposure to 
large-cap integrated oil and independent oil & gas producers. From a quality 
standpoint we seek to own companies with experienced management teams, 
disciplined capex spending plans and exposure to lower cost resource assets. 
From a valuation standpoint we seek to own companies with free cash flow 
generation and margin capture stories that are underappreciated by the street. 
In summary, we believe companies with strong balance sheets and cash flows, 
production growth visibility, operating specialisation and pricing power at the 
industry level remain most desirable from an investment perspective. 
 
Communication Services: 1.2% underweight (7.1% of the portfolio) 
We are underweight to communication services and our allocation remains 
concentrated in diversified telecommunication bellwether Verizon Communications 
(4.7% of the portfolio). Our stock-specific exposure in the sector is to 
companies that offer healthy dividend yields and opportunity for steady, 
longer-term growth. 
 
Consumer Staples: 1.3% underweight (8.9% of the portfolio) 
The consumer staples sector is a common destination for the conservative equity 
income investor. Historically, many of these companies have offered investors 
recognisable brands, diverse revenue streams, exposure to growing end markets 
and the ability to garner pricing power. These characteristics, in turn, have 
translated into strong and often stable free cash flow and growing dividends 
for shareholders. In recent years some of these secular advantages have become 
challenged, in our view, due to changing consumer preferences, greater end 
market competition from local brands and disruption from the rapid adoption of 
online shopping. These challenges, combined with higher than historical 
valuations, have facilitated our more neutral stance in the sector. Notably, we 
prefer ownership of companies with underappreciated growth profiles (i.e. buy 
growth), sticky customer bases and the ability to cut costs and/or improve 
profit margins. 
 
Consumer Discretionary: 1.4% underweight (4.2% of the portfolio) 
We continue to maintain a degree of caution in consumer discretionary, as 
investors are sensitive to disruption and how new business models and 
technology can displace incumbent operators. We believe these disruptive forces 
are best avoided through identifying stock-specific investment opportunities 
that (1) are trading at discounted valuations or (2) are somewhat insulated 
from these disruptive pressures. For example, we believe companies such as 
General Motors (autos) and Newell Brands (household durables) offer investors 
exposure to underappreciated franchises at discounted valuations. Furthermore, 
retailers such as Dollar General (dollar store) and Lowe's Companies (home 
improvement) provide us with exposure to companies that can compound earnings 
and are more immune to disruptive forces. 
 
Industrials: 2.4% underweight (6.8% of the portfolio) 
We are underweight to the industrials sector. Our selectivity is driven by 
relative valuations, which we view as expensive, in many cases, versus other 
cyclical segments of the U.S. equity market. We continue to maintain exposure 
to the aerospace & defence industry. From a fundamental and operating model 
standpoint, we continue to like the profiles of the large-cap aerospace & 
defence firms. Many of these companies have strong balance sheets, good 
visibility into sales and earnings and historically have demonstrated 
shareholder friendly capital return policies. 
 
Materials: 2.6% underweight (1.7% of the portfolio) 
Broadly speaking, we have found more attractive opportunities from which to 
source our portfolio's cyclical exposure. Our exposure to the materials sector 
consists of two chemicals stocks - Corteva and DuPont De Nemours. Longer-term 
secular trends in global population growth can potentially benefit 
well-positioned companies in the agricultural chemical space. 
 
Utilities: 2.7% underweight (4.5% of the portfolio) 
Strong investor demand for equity income in recent years has resulted in 
elevated valuations for many high dividend yielding stocks, including utilities 
companies. Despite rich valuations at the sector level, we are finding pockets 
of opportunity in U.S. regulated utilities such as Public Service Enterprise 
Group (PEG), FirstEnergy (FE), Edison International (EIX), and NiSource (NI). 
PEG, EIX, and NI add a level of stability and defensiveness to the portfolio 
through their durable dividend profiles and healthy earnings growth potential. 
Alternatively, FE offers us exposure to a company with a good underlying 
regulated franchise with some near-term uncertainties (i.e. merchant business 
bankruptcy). This uncertainty, in our view, creates opportunity for patient 
long-term investors that are willing and capable of doing deep analysis on 
complex investment issues. 
 
Real Estate: 5.0% underweight (0.0% of the portfolio) 
The real estate sector is our largest underweight position in the strategy. We 
maintain a 0% weighting in the sector due to our view that valuations are 
unattractive at current levels. 
 
POSITIONING AND OUTLOOK 
Our 2020 base case was for slow but positive U.S. economic growth and for U.S. 
stocks to grind higher on the back of a strong U.S. consumer and supportive 
monetary and fiscal policy. Stocks have tumbled amid the current global health 
crisis, a tail risk no one could have predicted a few short months ago. 
Volatility never feels good, but the foundation underlying it is important. 
Daily market moves in response to the COVID-19 outbreak have matched the scale 
of those seen during the global financial crisis. But this is not 2008. The 
COVID-19 shock is not one caused by a crisis in the core of the financial 
system and for this reason the U.S. economy is on a much stronger footing to 
endure the current economic disruption. 
 
Make no mistake, the economic and earnings impact from the crisis are real. 
Trading volatility is likely to persist as investors recalibrate expectations 
for corporate earnings and global supply chains. However, our long-term 
conviction in U.S. stocks remains steadfast. It bears reminding that the value 
of a company is the net present value of its future cash flows. We expect 
earnings to be hard hit in 2020, but ultimately see COVID-19 as a transitory 
event. One or two quarters of lost earnings, although painful, should not 
materially change the long-term earnings power of our portfolio holdings. 
 
Importantly, we are encouraged by the swiftness, magnitude and coordination of 
monetary and fiscal policy deployment. These efforts have helped to stabilise 
financial markets while governments pursue coronavirus containment measures. We 
are watching closely for visibility into the effectiveness of these containment 
efforts. The gradual reopening of economies is an important upcoming litmus 
test, with a second wave of infections a key outstanding risk to our market 
outlook. 
 
TONY DESPIRITO, FRANCO TAPIA and DAVID ZHAO 
BlackRock Investment Management LLC 
24 June 2020 
 
TEN LARGEST INVESTMENTS AS AT 30 APRIL 2020 
 
1 = Verizon Communications (2019: 1st) 
Communication Services 
Market value: GBP5,623,000 
Share of investments: 4.7% (2019: 4.5%) 
One of the largest providers of wireline and wireless communications in the 
U.S., where 48 million access lines represent approximately one-third of market 
share. The company's wireless customer base is very sizable and continues to 
grow. Verizon remains in a strong financial position and exhibits a sustainable 
dividend yield above 4%. Going forward, we expect continued expansion in 
wireless, long distance and high-speed services to drive company growth. 
 
2 + Bank of America (2019: 5th) 
Financials 
Market value: GBP4,448,000 
Share of investments: 3.7% (2019: 3.0%) 
One of the largest financial institutions in the U.S. with lending operations 
in the consumer, small-business and corporate markets, in addition to asset 
management and investment banking divisions. Bank of America has delivered 
consistent results over the last year, with particular strength within their 
consumer bank division. 
 
3 + Citigroup (2019: 4th) 
Financials 
Market value: GBP4,022,000 
Share of investments: 3.4% (2019: 3.6%) 
A U.S. based money center bank with a global footprint. We believe Citigroup is 
attractively valued on both a price-to-earnings and book value basis, has 
self-help opportunities within its consumer banking segment and offers the 
potential for dividend growth. 
 
4 + Sanofi (2019: 60th) 
Health Care 
Market value: GBP3,197,000 
Share of investments: 2.7% (2019: 0.5%) 
Sanofi checks a lot of boxes that we look for in a pharmaceuticals investment - 
a company with a strong commercial business and an under-appreciated pipeline 
that is not reflected in the current valuation. Additionally, Sanofi is 
under-earning its potential and a new CEO with turn-around experience has begun 
to demonstrate a path to margin improvement. Low exposure to U.S. drug pricing 
regulatory risk is also attractive and the company is a potential 
sum-of-the-parts story as several of the company's businesses including 
Vaccines and Consumer Health should trade at much higher multiples. 
 
5 + Anthem (2019: 11th) 
Health Care 
Market value: GBP3,117,000 
Share of investments: 2.6% (2019: 2.0%) 
Anthem is a leading company in a high quality, stable U.S. managed care space 
whose relatively new CEO is taking the initiative to leverage the company's 
market position and accelerate top and bottom-line growth. These initiatives 
include insourcing their Pharmacy Benefit Managers, expanding their Medicare 
offerings and leveraging their brand to offer ancillary products (dental 
benefits, Administrative Services Only arrangements, etc). Furthermore, at 10x 
2021 price-to-earnings, Anthem trades near the low end of the group, despite 
having the highest projected earnings per share growth going forward. 
 
6 = Medtronic (2019: 6th) 
Health Care 
Market value: GBP3,071,000 
Share of investments: 2.6% (2019: 2.7%) 
One of the world's largest medical device companies. The firm generates the 
majority of its sales and profits from the United States but is headquartered 
in the Republic of Ireland. The company offers an attractive innovation 
pipeline in its cardiovascular, diabetes and robotics businesses. We believe 
that Medtronic should be able to reliably grow revenue and earnings in a 
meaningful way going forward, leading to multiple expansion relative to peers. 
 
7 - Wells Fargo (2019: 3rd) 
Financials 
Market value: GBP2,904,000 
Share of investments: 2.4% (2019: 3.9%) 
A U.S. bank which operates in three segments including community banking, 
wholesale banking and wealth & investment management. Wells Fargo has a strong 
deposit franchise and we are encouraged by the company's history of strong 
investment returns and prudent credit risk management. In our view, shares of 
the company are underappreciated today in an environment characterised by low 
credit losses and ample access to liquidity. 
 
8 + Koninklijke Philips (2019: 9th) 
Health Care 
Market value: GBP2,777,000 
Share of investments: 2.3% (2019: 2.1%) 
The company trades at a deep discount to its medical technology peers despite 
offering better growth. The company is transforming into a pure-play health 
care company that, in our view, deserves a higher multiple. Philips is also 
meaningfully under-earning, with current margins that are well below 
management's targets and those of its peers, indicating upside to 
profitability. 
 
9 + Unilever (2019: 30th) 
Consumer Staples 
Market value: GBP2,725,000 
Share of investments: 2.3% (2019: 1.3%) 
Unilever has a strong portfolio of home and personal care brands and favourable 
exposure to emerging markets. Recent sales performance has disappointed, 
driving a relative derating. While margin may need to be rebased, that seems 
fully baked into expectations, trading at 19x 2020 price-to-earnings, a 20% 
discount to global staples peers. At this price, we believe there is 
optionality on a) better execution; b) macro improvement; c) disposals; and d) 
perhaps activist involvement. 
 
10 + FirstEnergy (2019: 21st) 
Utilities 
Market value: GBP2,682,000 
Share of investments: 2.2% (2019: 1.7%) 
FirstEnergy is an integrated utility that services U.S. customers primarily in 
the Northeast and Midwest. Our investment thesis is predicated on valuation, as 
we believe the stock trades at a discount on a sum-of-the-parts basis. 
Additionally, we believe the company has manageable equity needs and offers 
investors steady 4% to 6% EPS growth annually. 
 
Market value amounts include the liability for written covered call options. 
 
All percentages reflect the value of the holding as a percentage of total 
investments. Percentages in brackets represent the value of the holding as at 
31 October 2019. 
 
Together, the ten largest investments represent 28.9% of the Company's 
portfolio (31 October 2019: 30.5%). 
 
PORTFOLIO ANALYSIS AS AT 30 APRIL 2020 
 
                           %               %               %               %               %               %               %               %               %               %               %               %         % Total         % Total 
Sectors               Canada         Denmark          France         Germany         Ireland           Japan     Netherlands          Norway     Switzerland  United Kingdom   United States            Cash        30.04.20        31.10.19 
 
Financials                 -               -               -               -               -               -               -               -               -               -            23.7               -            23.7            24.6 
 
Health Care                -               -             2.4             1.8             2.4               -             2.1               -             0.9             1.7             6.9               -            18.2            16.6 
 
Consumer                   -               -               -             1.0               -               -             2.1               -             1.1             0.2             4.5               -             8.9             6.9 
Staples 
 
Information              0.2               -               -               -               -               -             0.5               -               -               -             7.9               -             8.6             8.6 
Technology 
 
Energy                     -               -             0.4               -               -               -               -             0.5               -             1.3             5.9               -             8.1             9.2 
 
Communication              -               -               -               -               -               -               -               -               -               -             7.1               -             7.1             6.6 
Services 
 
Industrials                -               -               -             1.0               -               -               -               -               -             2.5             3.3               -             6.8             8.0 
 
Utilities                  -               -               -               -               -               -               -               -               -               -             4.5               -             4.5             2.4 
 
Consumer                   -               -               -               -               -               -               -               -               -               -             4.2               -             4.2             6.1 
Discretionary 
 
Materials                  -               -               -               -               -               -               -               -               -               -             1.7               -             1.7             1.8 
 
Cash                       -               -               -               -               -               -               -               -               -               -               -             8.2             8.2             9.2 
 
              --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- 
 
% Portfolio              0.2               -             2.8             3.8             2.4               -             4.7             0.5             2.0             5.7            69.7             8.2           100.0 
30.04.20 
 
              --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- 
 
% Portfolio              0.6             0.3             1.1             2.6             2.8             1.6             3.5             0.3             1.8             6.3            69.9             9.2                           100.0 
31.10.19 
 
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INVESTMENTS AS AT 30 APRIL 2020 
 
                                                                                                                     Market                       % of 
                                                                                                                      value                      total 
Company                                                      Country        Sector                Securities          GBP'000                  portfolio 
 
Verizon Communications                                 United States Communication           Ordinary shares          5,649      }                 4.7 
 
                                                                          Services                   Options            (26) 
 
Bank of America                                        United States    Financials           Ordinary shares          4,501      }                 3.7 
 
                                                                                                     Options            (53) 
 
Citigroup                                              United States    Financials           Ordinary shares          4,022                        3.4 
 
Sanofi                                                        France   Health Care           Ordinary shares          3,197                        2.7 
 
Anthem                                                 United States   Health Care           Ordinary shares          3,117                        2.6 
 
Medtronic                                                    Ireland   Health Care           Ordinary shares          3,077      }                 2.6 
 
                                                                                                     Options             (6) 
 
Wells Fargo                                            United States    Financials           Ordinary shares          2,904                        2.4 
 
Koninklijke Philips                                      Netherlands   Health Care           Ordinary shares          2,777                        2.3 
 
Unilever                                                 Netherlands      Consumer           Ordinary shares          2,729      }                 2.3 
 
                                                                           Staples                   Options             (4) 
 
FirstEnergy                                            United States     Utilities           Ordinary shares          2,691      }                 2.2 
 
                                                                                                     Options             (9) 
 
Cognizant Technology Solutions                         United States   Information           Ordinary shares          2,683      }                 2.2 
 
                                                                        Technology                   Options            (32) 
 
Williams                                               United States        Energy           Ordinary shares          2,623      }                 2.1 
 
                                                                                                     Options            (59) 
 
Comcast                                                United States Communication           Ordinary shares          2,546      }                 2.1 
 
                                                                          Services                   Options             (8) 
 
Altria                                                 United States      Consumer           Ordinary shares          2,522      }                 2.1 
 
                                                                           Staples                   Options            (10) 
 
Constellation Brands                                   United States      Consumer           Ordinary shares          2,474      }                 2.0 
 
                                                                           Staples                   Options            (52) 
 
Bayer                                                        Germany   Health Care           Ordinary shares          2,287                        1.9 
 
JPMorgan Chase                                         United States    Financials           Ordinary shares          2,234      }                 1.9 
 
                                                                                                     Options             (9) 
 
American International                                 United States    Financials           Ordinary shares          2,249      }                 1.9 
 
                                                                                                     Options            (27) 
 
AstraZeneca                                           United Kingdom   Health Care           Ordinary shares          2,230      }                 1.8 
 
                                                                                                     Options            (76) 
 
Morgan Stanley                                         United States    Financials           Ordinary shares          2,047      }                 1.7 
 
                                                                                                     Options            (19) 
 
Microsoft                                              United States   Information           Ordinary shares          2,077      }                 1.7 
 
                                                                        Technology                   Options            (50) 
 
CVS Health                                             United States   Health Care           Ordinary shares          1,976                        1.6 
 
BAE Systems                                           United Kingdom   Industrials           Ordinary shares          1,838      }                 1.5 
 
                                                                                                     Options             (8) 
 
Willis Towers Watson                                   United States    Financials           Ordinary shares          1,824      }                 1.5 
 
                                                                                                     Options             (5) 
 
Public Service Enterprise Group                        United States     Utilities           Ordinary shares          1,793      }                 1.5 
 
                                                                                                     Options            (19) 
 
BP                                                    United Kingdom        Energy           Ordinary shares          1,802      }                 1.5 
 
                                                                                                     Options            (55) 
 
MetLife                                                United States    Financials           Ordinary shares          1,776      }                 1.5 
 
                                                                                                     Options            (31) 
 
General Electric                                       United States   Industrials           Ordinary shares          1,744      }                 1.4 
 
                                                                                                     Options            (10) 
 
Schwab (Charles)                                       United States    Financials           Ordinary shares          1,703      }                 1.4 
 
                                                                                                     Options            (14) 
 
Samsung Electronics                                    United States   Information           Ordinary shares          1,631                        1.4 
 
                                                                        Technology 
 
Lowe's Companies                                       United States      Consumer           Ordinary shares          1,659      }                 1.4 
 
                                                                     Discretionary                   Options            (29) 
 
UnitedHealth Group                                     United States   Health Care           Ordinary shares          1,670      }                 1.4 
 
                                                                                                     Options            (41) 
 
General Motors                                         United States      Consumer           Ordinary shares          1,531                        1.3 
 
                                                                     Discretionary 
 
Visa                                                   United States   Information           Ordinary shares          1,537      }                 1.3 
 
                                                                        Technology                   Options             (8) 
 
Raymond James                                          United States    Financials           Ordinary shares          1,500      }                 1.2 
 
                                                                                                     Options            (11) 
 
Dollar General                                         United States      Consumer           Ordinary shares          1,476      }                 1.2 
 
                                                                     Discretionary                   Options             (3) 
 
DuPont De Nemours                                      United States     Materials           Ordinary shares          1,470      }                 1.2 
 
                                                                                                     Options            (48) 
 
Nestlé                                                   Switzerland      Consumer           Ordinary shares          1,401      }                 1.2 
 
                                                                           Staples                   Options             (4) 
 
Siemens                                                      Germany   Industrials           Ordinary shares          1,366      }                 1.1 
 
                                                                                                     Options            (28) 
 
Berkshire Hathaway                                     United States    Financials           Ordinary shares          1,324      }                 1.1 
 
                                                                                                     Options             (5) 
 
Marathon Petroleum                                     United States        Energy           Ordinary shares          1,310                        1.1 
 
Arthur J.Gallagher & Co                                United States    Financials           Ordinary shares          1,306      }                 1.1 
 
                                                                                                     Options             (3) 
 
Cisco Systems                                          United States   Information           Ordinary shares          1,315      }                 1.1 
 
                                                                        Technology                   Options            (14) 
 
Henkel                                                       Germany      Consumer           Ordinary shares          1,309      }                 1.1 
 
                                                                           Staples                   Options            (13) 
 
Fox Corp                                               United States Communication           Ordinary shares          1,214      }                 1.0 
 
                                                                          Services                   Options             (8) 
 
Ferguson                                              United Kingdom   Industrials           Ordinary shares          1,203      }                 1.0 
 
                                                                                                     Options            (17) 
 
Union Pacific                                          United States   Industrials           Ordinary shares          1,252      }                 1.0 
 
                                                                                                     Options            (80) 
 
Alcon                                                    Switzerland   Health Care           Ordinary shares          1,158      }                 1.0 
 
                                                                                                     Options             (4) 
 
ConocoPhillips                                         United States        Energy           Ordinary shares          1,135      }                 0.9 
 
                                                                                                     Options            (39) 
 
Edison International                                   United States     Utilities           Ordinary shares          1,089      }                 0.9 
 
                                                                                                     Options             (6) 
 
Pfizer                                                 United States   Health Care           Ordinary shares          1,064      }                 0.9 
 
                                                                                                     Options            (11) 
 
McKesson                                               United States   Health Care           Ordinary shares          1,033                        0.9 
 
Motorola Solutions                                     United States   Information           Ordinary shares          1,021      }                 0.8 
 
                                                                        Technology                   Options             (2) 
 
Equitable Holdings                                     United States    Financials           Ordinary shares          1,014                        0.8 
 
Pioneer Natural Resources                              United States        Energy           Ordinary shares          1,020      }                 0.8 
 
                                                                                                     Options            (26) 
 
CME Group                                              United States    Financials           Ordinary shares            949      }                 0.8 
 
                                                                                                     Options             (7) 
 
Lockheed Martin                                        United States   Industrials           Ordinary shares            913      }                 0.8 
 
                                                                                                     Options             (6) 
 
Allstate                                               United States    Financials           Ordinary shares            736      }                 0.6 
 
                                                                                                     Options             (6) 
 
Corteva                                                United States     Materials           Ordinary shares            737      }                 0.6 
 
                                                                                                     Options             (8) 
 
Newell Brands                                          United States      Consumer           Ordinary shares            746      }                 0.6 
 
                                                                     Discretionary                   Options            (29) 
 
NXP Semiconductors                                       Netherlands   Information           Ordinary shares            709      }                 0.6 
 
                                                                        Technology                   Options             (8) 
 
Equinor ASA                                                   Norway        Energy           Ordinary shares            675      }                 0.6 
 
                                                                                                     Options            (11) 
 
Marathon Oil                                           United States        Energy           Ordinary shares            635      }                 0.5 
 
                                                                                                     Options            (33) 
 
Total                                                         France        Energy           Ordinary shares            571      }                 0.5 
 
                                                                                                     Options            (10) 
 
FedEx                                                  United States   Industrials           Ordinary shares            544      }                 0.4 
 
                                                                                                     Options             (5) 
 
Pepsico                                                United States      Consumer           Ordinary shares            493      }                 0.4 
 
                                                                           Staples                   Options             (1) 
 
Kinder Morgan                                          United States        Energy           Ordinary shares            483                        0.4 
 
Oneok                                                  United States        Energy           Ordinary shares            488      }                 0.4 
 
                                                                                                     Options            (13) 
 
Conagra Brands                                         United States      Consumer           Ordinary shares            448      }                 0.4 
 
                                                                           Staples                   Options             (2) 
 
American Express                                       United States    Financials           Ordinary shares            420      }                 0.3 
 
                                                                                                     Options             (2) 
 
US Bancorp                                             United States    Financials           Ordinary shares            378      }                 0.3 
 
                                                                                                     Options             (3) 
 
British American Tobacco                              United Kingdom      Consumer           Ordinary shares            332      }                 0.3 
 
                                                                           Staples                   Options             (1) 
 
Pentair                                               United Kingdom   Industrials           Ordinary shares            311      }                 0.2 
 
                                                                                                     Options             (6) 
 
NiSource                                               United States     Utilities           Ordinary shares            256      }                 0.2 
 
                                                                                                     Options             (2) 
 
Quest Diagnostics                                      United States   Health Care           Ordinary shares            264      }                 0.2 
 
                                                                                                     Options            (14) 
 
Travelers Companies                                    United States    Financials           Ordinary shares            234      }                 0.2 
 
                                                                                                     Options             (1) 
 
Constellation Software                                        Canada   Information           Ordinary shares            211                        0.2 
 
                                                                        Technology 
 
Lear Corp                                              United States      Consumer           Ordinary shares             74                        0.1 
 
                                                                     Discretionary 
 
Fidelity National Financial                            United States    Financials           Ordinary shares             64                          - 
 
                                                                                                             --------------             -------------- 
 
Portfolio                                                                                                           119,621                      100.0 
 
                                                                                                                   ========                   ======== 
 
Comprising: 
 
Equity investments                                                                                                  120,771                      101.0 
 
Derivative financial instruments - written                                                                           (1,150)                      (1.0) 
options 
 
                                                                                                             --------------             -------------- 
 
                                                                                                                    119,621                      100.0 
 
                                                                                                                   ========                   ======== 
 
All investments are in ordinary shares unless otherwise stated. The number of 
holdings as at 30 April 2020 was 79 (31 October 2019: 89). The total number of 
individual open options as at 30 April 2020 was 208 (31 October 2019: 224). 
 
The negative valuation of GBP1,150,000 in respect of options held represents the 
notional cost of repurchasing the contracts at market prices as at 30 April 
2020 (31 October 2019: GBP482,000). 
 
At 30 April 2020, the Company did not hold any equity interests comprising more 
than 3% of any company's share capital. 
 
Interim management report and responsibility statement 
 
The Chairman's Statement and the Investment Manager's Report give details of 
the important events which have occurred during the period and their impact on 
the financial statements. 
 
PRINCIPAL RISKS AND UNCERTAINTIES 
The principal risks faced by the Company can be divided into various areas as 
follows: 
 
  * Counterparty; 
 
  * Investment performance; 
 
  * Legal & Compliance; 
 
  * Market; 
 
  * Operational; 
 
  * Financial; and 
 
  * Marketing. 
 
The Board reported on the principal risks and uncertainties faced by the 
Company in the Annual Report and Financial Statements for the year ended 31 
October 2019. A detailed explanation can be found in the Strategic Report on 
pages 26 to 29 and in note 14 on pages 75 to 84 of the Annual Report and 
Financial Statements which are available on the website maintained by BlackRock 
at blackrock.com/uk/brna. 
 
In the view of the Board, the outbreak of an infectious respiratory illness 
caused by a novel coronavirus known as COVID-19, first detected in China in 
December 2019 and has developed into a global pandemic, has fundamentally 
altered the nature of the risks reported in the Annual Report and Financial 
Statements. COVID-19 has resulted in travel restrictions, closed international 
borders, enhanced health screenings at ports of entry and elsewhere, disruption 
of and delays in healthcare service preparation and delivery, prolonged 
quarantines, cancellations, supply chain disruptions and lower consumer demand, 
as well as general concern and uncertainty. The impact of COVID-19 has 
adversely affected the economies of many nations across the entire global 
economy, individual issuers and capital markets, and could continue with 
extents that cannot necessarily be foreseen. In addition, the impact of 
infectious illnesses in emerging market countries may be greater due to 
generally less established healthcare systems. Public health crises caused by 
the COVID-19 outbreak may exacerbate other pre-existing political, social and 
economic risks in certain countries or globally. The duration of the COVID-19 
outbreak and its effects cannot be determined with certainty. 
 
GOING CONCERN 
The Board is mindful of the uncertainty surrounding the potential duration of 
the COVID-19 pandemic and its impact on the global economy, the Company's 
assets and the potential for the level of revenue derived from the portfolio to 
reduce versus the prior year. The Directors, having considered the nature and 
liquidity of the portfolio, the Company's investment objective and the 
Company's projected income and expenditure, are satisfied that the Company has 
adequate resources to continue in operational existence for the foreseeable 
future and is financially sound. The Board believes that the Company and its 
key third party service providers have in place appropriate business continuity 
plans and will be able to maintain service levels through the COVID-19 
pandemic. 
 
The Company has a portfolio of investments which are considered to be readily 
realisable and is able to meet all of its liabilities from its assets and 
income generated from these assets. Based on the above, the Board is satisfied 
that it is appropriate to continue to adopt the going concern basis in 
preparing the financial statements. Ongoing charges (excluding finance costs, 
direct transaction costs, custody transaction charges, non-recurring charges 
and taxation) were approximately 1.09% of net assets for the year ended 31 
October 2019. 
 
CORPORATE GOVERNANCE 
The Board noted the votes against two resolutions at the spring Annual General 
Meeting by a significant shareholder and has subsequently sought to understand 
its reasons for so doing. This shareholder is supportive of the objectives of 
the Company but indicated its frustration  with the limited scale (and, in 
their view, limited growth) of the Company in recent years and their perception 
that the Portfolio Managers had not used the benefits of the closed end 
structure to the full (by, for example deploying gearing or investing in less 
liquid assets). The Board appreciates this feedback and wishes to confirm that 
expanding the Company is an important objective as it leads to greater 
liquidity and lower fixed charges. The Board has requested that the Portfolio 
Managers are more active in deploying leverage when they consider it is in 
shareholders' interests to do so. 
 
RELATED PARTY DISCLOSURE AND TRANSACTIONS WITH THE MANAGER 
BlackRock Fund Managers Limited (BFM) was appointed as the Company's 
AIternative Investment Fund Manager (AIFM) with effect from 2 July 2014. BFM 
has (with the Company's consent) delegated certain portfolio and risk 
management services, and other ancillary services, to BlackRock Investment 
Management (UK) Limited (BIM (UK)). Both BFM and BIM (UK) are regarded as 
related parties under the Listing Rules. Details of the fees payable are set 
out in note 4 and note 10. 
 
The related party transactions with the Directors are set out in note 11. 
 
DIRECTORS' RESPONSIBILITY STATEMENT 
The Disclosure Guidance and Transparency Rules (DTR) of the UK Listing 
Authority require the Directors to confirm their responsibilities in relation 
to the preparation and publication of the Interim Management Report and 
Financial Statements. 
 
The Directors confirm to the best of their knowledge that: 
 
  * the condensed set of financial statements contained within the half yearly 
    financial report has been prepared in accordance with applicable 
    International Accounting Standard 34 - 'Interim Financial Reporting'; and 
 
  * the Interim Management Report, together with the Chairman's Statement and 
    Investment Manager's Report, include a fair review of the information 
    required by 4.2.7R and 4.2.8R of the Financial Conduct Authority's 
    Disclosure Guidance and Transparency Rules. 
 
    This half yearly financial report has not been audited or reviewed by the 
    Company's auditors. 
 
    The half yearly financial report was approved by the Board on 24 June 2020 
    and the above responsibility statement was signed on its behalf by the 
    Chairman. 
 
    SIMON MILLER 
    For and on behalf of the Board 
    24 June 2020 
 
FINANCIAL STATEMENTS 
 
STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHSED 30 APRIL 2020 
 
                                                   Revenue GBP'000                                   Capital GBP'000                                    Total GBP'000 
 
 
                           Notes 
 
                                         Six months ended             Year ended         Six months ended             Year ended         Six months ended             Year ended 
                                                                        31.10.19                                        31.10.19                                        31.10.19 
                                                                       (audited)                                       (audited)                                       (audited) 
 
                                        30.04.20        30.04.19                        30.04.20        30.04.19                        30.04.20        30.04.19 
                                     (unaudited)     (unaudited)                      (unaudited)    (unaudited)                     (unaudited)     (unaudited) 
 
Income from investments        3           1,949           1,718           3,488               -               -               -           1,949           1,718           3,488 
held at fair value through 
profit or loss 
 
Other income                   3           1,307           1,029           2,180               -               -               -           1,307           1,029           2,180 
 
                                  --------------  --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Total revenue                              3,256           2,747           5,668               -               -               -           3,256           2,747           5,668 
 
                                  --------------  --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Net (loss)/profit on                           -               -               -         (17,509)          2,414           6,772         (17,509)          2,414           6,772 
investments and options 
held at fair value through 
profit or loss 
 
Net profit/(loss) on                           -               -               -             462            (160)           (110)            462            (160)           (110) 
foreign exchange 
 
                                  --------------  --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Total                                      3,256           2,747           5,668         (17,047)          2,254           6,662         (13,791)          5,001          12,330 
 
                                  --------------  --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Expenses 
 
Investment management fee      4            (131)           (114)           (250)           (393)           (343)           (752)           (524)           (457)         (1,002) 
 
Other operating expenses       5            (208)           (188)           (403)            (10)            (10)            (21)           (218)           (198)           (424) 
 
                                  --------------  --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Total operating expenses                    (339)           (302)           (653)           (403)           (353)           (773)           (742)           (655)         (1,426) 
 
                                  --------------  --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Net profit/(loss) on                       2,917           2,445           5,015         (17,450)          1,901           5,889         (14,533)          4,346          10,904 
ordinary activities before 
taxation 
 
Taxation                                    (415)           (301)           (677)             75              65             143            (340)           (236)           (534) 
 
                                  --------------  --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Profit/(loss) for the                      2,502           2,144           4,338         (17,375)          1,966           6,032         (14,873)          4,110          10,370 
period 
 
                                  --------------  --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Earnings/(loss) per            7            3.10            3.06            5.96          (21.53)           2.81            8.28          (18.43)           5.87           14.24 
ordinary share (pence) 
 
                                        ========        ========        ========        ========        ========        ========        ========        ========        ======== 
 
The total column of this statement represents the Company's Statement of 
Comprehensive Income, prepared in accordance with International Financial 
Reporting Standards (IFRS) as adopted by the European Union (EU). The 
supplementary revenue and capital columns are both prepared under guidance 
published by the Association of Investment Companies (AIC). All items in the 
above statement derive from continuing operations. No operations were acquired 
or disposed of during the period. All income is attributable to the equity 
holders of the Company. 
 
The net profit/(loss) for the period disclosed above represents the Company's 
total comprehensive income/(loss). The Company does not have any other 
comprehensive income. 
 
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHSED 30 APRIL 2020 
 
                                   Called           Share         Capital 
                                 up share         premium      redemption         Special         Capital         Revenue 
                                  capital         account         reserve         reserve        reserves         reserve           Total 
                     Note           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000 
 
For the six 
months ended 30 
April 2020 
(unaudited) 
 
At 31 October                       1,004          42,596           1,460          36,373          58,113           3,240         142,786 
2019 
 
Total 
comprehensive 
income: 
 
Net (loss)/profit                       -               -               -               -         (17,375)          2,502         (14,873) 
for the period 
 
Transactions with 
owners, recorded 
directly to 
equity: 
 
Ordinary shares                         -           1,937               -           3,386               -               -           5,323 
reissued from 
treasury 
 
Share issue costs                       -               -               -              (8)              -               -              (8) 
 
Dividends paid1         6               -               -               -               -          (1,209)         (2,016)         (3,225) 
 
                           --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
At 30 April 2020                    1,004          44,533           1,460          39,751          39,529           3,726         130,003 
 
                           --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
For the six 
months ended 30 
April 2019 
(unaudited) 
 
At 31 October                       1,004          36,774           1,460          24,943          54,249           2,515         120,945 
2018 
 
Total 
comprehensive 
income: 
 
Net profit for                          -               -               -               -           1,966           2,144           4,110 
the period 
 
Transactions with 
owners, recorded 
directly to 
equity: 
 
Ordinary shares                         -               -               -           5,510               -               -           5,510 
reissued from 
treasury 
 
Share issue costs                       -               -               -             (27)              -               -             (27) 
 
Dividends paid2                         -               -               -               -          (1,047)         (1,745)         (2,792) 
 
                           --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
At 30 April 2019                    1,004          36,774           1,460          30,426          55,168           2,914         127,746 
 
                           --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
For the year 
ended 31 October 
2019 (audited) 
 
At 31 October                       1,004          36,774           1,460          24,943          54,249           2,515         120,945 
2018 
 
Total 
comprehensive 
income: 
 
Net profit for                          -               -               -               -           6,032           4,338          10,370 
the year 
 
Transactions with 
owners, recorded 
directly to 
equity: 
 
Ordinary shares                         -           5,822               -          11,507               -               -          17,329 
issued from 
treasury 
 
Share issue costs                       -               -               -             (77)              -               -             (77) 
 
Dividends paid3                         -               -               -               -          (2,168)         (3,613)         (5,781) 
 
                           --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
At 31 October                       1,004          42,596           1,460          36,373          58,113           3,240         142,786 
2019 
 
                                 ========        ========        ========        ========        ========        ========        ======== 
 
1     4th interim dividend of 2.00p per share for the year ended 31 October 
2019, declared on 7 November 2019 and paid on 3 January 2020 and 1st interim 
dividend of 2.00p per share for the year ending 31 October 2020, declared on 20 
March 2020 and paid on 29 April 2020. 
 
2     4th interim dividend of 2.00p per share for the year ended 31 October 
2018, declared on 1 November 2018 and paid on 4 January 2019 and 1st interim 
dividend of 2.00p per share for the year ending 31 October 2019, declared on 5 
March 2019 and paid on 12 April 2019. 
 
3     4th interim dividend of 2.00p per share for the year ended 31 October 
2018, declared on 1 November 2018 and paid on 4 January 2019; 1st interim 
dividend of 2.00p per share for the year ended 31 October 2019, declared on 5 
March 2019 and paid on 12 April 2019; 2nd interim dividend of 2.00p per share 
for the year ended 31 October 2019, declared on 8 May 2019 and paid on 28 June 
2019; and 3rd interim dividend of 2.00p per share for the year ended 31 October 
2019, declared on 6 August 2019 and paid on 1 October 2019. 
 
Costs relating to the acquisition and disposal of investments amounted to GBP 
45,000 and GBP17,000 respectively for the six months ended 30 April 2020 (six 
months ended 30 April 2019: GBP31,000 and GBP12,000; year ended 31 October 2019: GBP 
75,000 and GBP26,000). 
 
The share premium account and capital redemption reserve are not distributable 
profits under the Companies Act 2006. The special reserve may be used as 
distributable profits for all purposes and, in particular, for the repurchase 
by the Company of its ordinary shares and for payment as dividends. In 
accordance with the Company's Articles of Association, net capital reserves may 
be distributed by way of the repurchase by the Company of its ordinary shares 
and for payment as dividends. 
 
STATEMENT OF FINANCIAL POSITION AS AT 30 APRIL 2020 
 
                                                                    30 April        30 April      31 October 
                                                                        2020            2019            2019 
                                                                       GBP'000           GBP'000           GBP'000 
                                                       Notes     (unaudited)     (unaudited)       (audited) 
 
Non current assets 
 
Investments held at fair value through profit or                     120,771         118,384         130,525 
loss 
 
Current assets                                                --------------  --------------  -------------- 
 
Other receivables                                                        905             257             844 
 
Cash and cash equivalents                                             10,747          11,069          13,207 
 
                                                              --------------  --------------  -------------- 
 
                                                                      11,652          11,326          14,051 
 
                                                              --------------  --------------  -------------- 
 
Total assets                                                         132,423         129,710         144,576 
 
                                                              --------------  --------------  -------------- 
 
Current liabilities 
 
Other payables                                                        (1,270)         (1,314)         (1,308) 
 
Derivative financial liabilities held at fair value                   (1,150)           (650)           (482) 
through profit or loss 
 
                                                              --------------  --------------  -------------- 
 
                                                                      (2,420)         (1,964)         (1,790) 
 
                                                              --------------  --------------  -------------- 
 
Net assets                                                           130,003         127,746         142,786 
 
                                                                    ========        ========        ======== 
 
Equity attributable to equity holders 
 
Called up share capital                                    8           1,004           1,004           1,004 
 
Share premium account                                                 44,533          36,774          42,596 
 
Capital redemption reserve                                             1,460           1,460           1,460 
 
Special reserve                                                       39,751          30,426          36,373 
 
Capital reserves                                                      39,529          55,168          58,113 
 
Revenue reserve                                                        3,726           2,914           3,240 
 
                                                              --------------  --------------  -------------- 
 
Total equity                                                         130,003         127,746         142,786 
 
                                                                    ========        ========        ======== 
 
Net asset value per ordinary share (pence)                 7          160.09          177.30          182.13 
 
                                                                    ========        ========        ======== 
 
CASH FLOW STATEMENT FOR THE SIX MONTHSED 30 APRIL 2020 
 
                                                                  Six months      Six months            Year 
                                                                       ended           ended           ended 
                                                                    30 April        30 April      31 October 
                                                                        2020            2019            2019 
                                                                       GBP'000           GBP'000           GBP'000 
                                                                 (unaudited)     (unaudited)       (audited) 
 
Operating activities 
 
Net (loss)/profit before taxation                                    (14,533)          4,346          10,904 
 
Net loss/(profit) on investments and options held at fair             17,509          (2,414)         (6,772) 
value through profit or loss (including transaction costs) 
 
Net (profit)/loss on foreign exchange                                   (462)            160             110 
 
Sales of investments held at fair value through profit or             62,649          46,164          95,699 
loss 
 
Purchases of investments held at fair value through profit or        (69,736)        (46,973)       (104,461) 
loss 
 
Increase in other receivables                                            (37)            (96)           (105) 
 
(Decrease)/increase in other payables                                   (277)            (18)            183 
 
(Increase)/decrease in amounts due from brokers                         (574)             11               1 
 
Increase in amounts due to brokers                                       244             574             328 
 
                                                              --------------  --------------  -------------- 
 
Net cash (outflow)/inflow from operating activities before            (5,217)          1,754          (4,113) 
taxation 
 
Taxation paid                                                           (350)           (233)           (503) 
 
                                                              --------------  --------------  -------------- 
 
Net cash (outflow)/inflow from operating activities                   (5,567)          1,521          (4,616) 
 
                                                              --------------  --------------  -------------- 
 
Financing activities 
 
Proceeds from ordinary shares reissued from treasury                   5,878           5,510          16,774 
 
Share issue costs paid                                                    (8)            (27)            (77) 
 
Dividends paid                                                        (3,225)         (2,792)         (5,781) 
 
                                                              --------------  --------------  -------------- 
 
Net cash inflow from financing activities                              2,645           2,691          10,916 
 
                                                              --------------  --------------  -------------- 
 
(Decrease)/increase in cash and cash equivalents                      (2,922)          4,212           6,300 
 
Effect of foreign exchange rate changes                                  462            (160)           (110) 
 
                                                              --------------  --------------  -------------- 
 
Change in cash and cash equivalents                                   (2,460)          4,052           6,190 
 
Cash and cash equivalents at start of period/year                     13,207           7,017           7,017 
 
                                                              --------------  --------------  -------------- 
 
Cash and cash equivalents at end of period/year                       10,747          11,069          13,207 
 
                                                              --------------  --------------  -------------- 
 
Comprised of: 
 
Cash at bank                                                          10,747          11,069          13,207 
 
                                                                    ========        ========        ======== 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHSED 30 APRIL 2020 
 
1. PRINCIPAL ACTIVITY 
The principal activity of the Company is that of an investment trust company 
within the meaning of section 1158 of the Corporation Tax Act 2010. 
 
2. BASIS OF PRESENTATION 
The half yearly financial statements for the period ended 30 April 2020 have 
been prepared in accordance with the Disclosure Guidance and Transparency Rules 
sourcebook of the Financial Conduct Authority and with International Accounting 
Standard 34 (IAS 34), 'Interim Financial Reporting', as adopted by the European 
Union (EU). The half yearly financial statements should be read in conjunction 
with the Company's Annual Report and Financial Statements for the year ended 31 
October 2019, which have been prepared in accordance with International 
Financial Reporting Standards (IFRS) as adopted by the EU and as applied in 
accordance with the provisions of the Companies Act 2006 and in accordance with 
IAS 34 Interim Financial Reporting. 
 
Insofar as the Statement of Recommended Practice (SORP) for investment trust 
companies and venture capital trusts issued by the Association of Investment 
Companies (AIC) in October 2019 is compatible with IFRS, the financial 
statements have been prepared in accordance with guidance set out in the SORP. 
 
The revised SORP issued in October 2019 is applicable for accounting periods 
beginning on or after 1 January 2019, therefore the Company has adopted the new 
SORP for the accounting year beginning 1 November 2019. As a result, there will 
be an amended presentation of movements in investments held at fair value 
through profit or loss in the notes to the financial statements, which will be 
included as part of the 2020 Annual Report and Financial Statements. As this 
note is not included as part of the Interim Report and Financial Statements, 
there is no impact on the Interim Report and Financial Statements as a result 
of the adoption of the revised SORP. 
 
Adoption of new and amended standards and interpretations 
IFRS 16 Leases 
The Company adopted IFRS 16 as of the date of initial application of 1 November 
2019. IFRS 16 specifies accounting for leases and removes the distinction 
between operating and finance leases. This standard is not applicable to the 
Company as it has no leases. 
 
IFRIC 23 Uncertainty over Income Tax Treatments 
The Company adopted IFRIC 23 as of the date of initial application of 1 
November 2019. IFRIC 23 seeks to provide clarity on how to account for 
uncertainty over income tax treatments and specifies that an entity must 
consider whether it is probable that the relevant tax authority will accept 
each tax treatment, or group of tax treatments, that it plans to use in its 
income tax filing. The interpretation also requires companies to reassess the 
judgements and estimates applied if facts and circumstances change. The 
interpretation would require the Company to recognise uncertain tax positions 
which are more than probable within its financial statements and it could 
potentially require the Company to recognise tax reclaims filed with HMRC if 
their recoverability becomes more than probable. The adoption of this 
interpretation has had no impact on the financial statements of the Company. 
 
IFRS standards that have yet to be adopted 
Amendments to IFRS 3 - definition of a business (effective 1 January 2020). 
This amendment revises the definition of a business. According to feedback 
received by the International Accounting Standards Board, application of the 
current guidance is commonly thought to be too complex and it results in too 
many transactions qualifying as business combinations. The standard has not 
been endorsed by the EU. This standard is unlikely to have any impact on the 
Company. 
 
Amendments to IAS 1 and IAS 8 - definition of material (effective 1 January 
2020). The amendments to IAS 1, 'Presentation of Financial Statements', and IAS 
8, 'Accounting Policies, Changes in Accounting Estimates and Errors' and 
consequential amendments to other IFRSs require companies to: 
 
(i)      use a consistent definition of materiality throughout IFRSs and the 
Conceptual Framework for Financial Reporting; 
 
(ii)     clarify the explanation of the definition of material; and 
 
(iii)    incorporate some of the guidance of IAS 1 about immaterial 
information. 
 
This standard has not been endorsed by the EU. This standard is unlikely to 
have any impact on the Company. 
 
Amendments to IFRS 9, IAS 39 and IFRS 7 - interest rate benchmark reform 
(effective 1 January 2020). These amendments provide certain reliefs in 
connection with the interest rate benchmark reform. The reliefs relate to hedge 
accounting and have the effect that the Inter Bank Offer Rate (IBOR) reform 
should not generally cause hedge accounting to terminate. However, any hedge 
ineffectiveness should continue to be recorded in the income statement. Given 
the pervasive nature of hedges involving IBOR based contracts, the reliefs will 
affect companies in all industries. 
 
This standard has been endorsed by the EU. This standard is unlikely to have 
any significant impact on the Company. 
 
IFRS 17 - insurance contracts (effective 1 January 2021). This standard 
replaces IFRS 4, which currently permits a wide variety of practices in 
accounting for insurance contracts. IFRS 17 will fundamentally change the 
accounting by all entities that issue insurance contracts and investment 
contracts with discretionary participation features. The standard has not been 
endorsed by the EU. This standard is unlikely to have any impact on the Company 
as it has no insurance contracts. 
 
3. INCOME 
 
                                                                  Six months      Six months            Year 
                                                                       ended           ended           ended 
                                                                    30 April        30 April      31 October 
                                                                        2020            2019            2019 
                                                                       GBP'000           GBP'000           GBP'000 
                                                                 (unaudited)     (unaudited)       (audited) 
 
Investment income: 
 
UK dividends                                                             145             154             312 
 
Overseas dividends                                                     1,804           1,550           3,162 
 
Overseas special dividends                                                 -              14              14 
 
                                                              --------------  --------------  -------------- 
 
                                                                       1,949           1,718           3,488 
 
                                                              --------------  --------------  -------------- 
 
Other income: 
 
Deposit interest                                                          72              92             212 
 
Option premium income                                                  1,235             937           1,968 
 
                                                              --------------  --------------  -------------- 
 
                                                                       1,307           1,029           2,180 
 
                                                              --------------  --------------  -------------- 
 
Total income                                                           3,256           2,747           5,668 
 
                                                                    ========        ========        ======== 
 
During the period, the Company received premiums totalling GBP1,350,000 (six 
months ended 30 April 2019: GBP917,000; year ended 31 October 2019: GBP2,016,000) 
for writing covered call options for the purposes of revenue generation. Option 
premiums of GBP1,235,000 (six months ended 30 April 2019: GBP937,000; year ended 31 
October 2019: GBP1,968,000) were amortised to revenue. All derivative 
transactions were based on constituent stocks in the Russell 1000 Value Index. 
At 30 April 2020 there were 208 open positions with an associated liability of 
GBP1,150,000 (six months ended 30 April 2019: 237 open positions with an 
associated liability of GBP650,000; year ended 31 October 2019: 224 open 
positions with an associated liability of GBP482,000). 
 
Dividends and interest received in cash during the period amounted to GBP 
1,626,000 and GBP72,000 (six months ended 30 April 2019: GBP1,620,000 and GBP92,000; 
year ended 31 October 2019: GBP2,944,000 and GBP212,000) respectively. 
 
No special dividends have been recognised in capital during the period (six 
months ended 30 April 2019: GBPnil; year ended 31 October 2019: GBPnil). 
 
4. INVESTMENT MANAGEMENT FEE 
 
                                   Six months ended                       Six months ended                          Year ended 
                                     30 April 2020                          30 April 2019                         31 October 2019 
                                      (unaudited)                            (unaudited)                             (audited) 
 
                             Revenue      Capital        Total      Revenue      Capital        Total      Revenue      Capital        Total 
                               GBP'000        GBP'000        GBP'000        GBP'000        GBP'000        GBP'000        GBP'000        GBP'000        GBP'000 
 
Investment management            131          393          524          114          343          457          250          752        1,002 
fee 
 
                         -----------  -----------  -----------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
Total                            131          393          524          114          343          457          250          752        1,002 
 
                              ======       ======       ======       ======       ======       ======       ======       ======       ====== 
 
The investment management fee is payable quarterly in arrears, calculated at 
the rate of 0.75% of the Company's net assets. 
 
5. OTHER OPERATING EXPENSES 
 
                                                              Six months  Six months        Year 
                                                                   ended       ended       ended 
                                                                30 April    30 April  31 October 
                                                                    2020        2019        2019 
                                                                   GBP'000       GBP'000       GBP'000 
                                                              (unaudited) (unaudited)  (audited) 
 
 
Allocated to revenue: 
 
Custody fee                                                            3           3           5 
 
Auditors' remuneration 
 
- audit services                                                      15          15          29 
 
Registrar's fee                                                       14          13          32 
 
Directors' emoluments                                                 81          60         133 
 
Broker fees                                                           20          20          40 
 
Depositary fees                                                        7           6          13 
 
Legal and professional fees                                            8           8          29 
 
Marketing fees                                                        17          14          26 
 
Printing fees                                                          8          10          22 
 
Other administration costs                                            35          39          74 
 
                                                              ----------  ----------  ---------- 
 
                                                                     208         188         403 
 
                                                              ----------  ----------  ---------- 
 
Allocated to capital: 
 
Custody transaction charges                                           10          10          21 
 
                                                              ----------  ----------  ---------- 
 
                                                                     218         198         424 
 
                                                                  ======      ======      ====== 
 
6. DIVIDS 
The Directors have declared a second quarterly interim dividend of 2.00p per 
share. The dividend will be paid on 3 July 2020 to shareholders on the 
Company's register on 22 May 2020. This dividend has not been accrued in the 
financial statements for the six months ended 30 April 2020, as under IFRS 
interim dividends are not recognised until paid. Dividends are debited directly 
to reserves. 
 
Dividends paid on equity shares during the period were: 
 
                                                                         Six months ended 
                                                                          30 April 2020 
                                                                           (unaudited) 
 
                                                                  Revenue      Capital        Total 
                                                                    GBP'000        GBP'000        GBP'000 
 
Fourth interim dividend for the year ended 31 October 2019 of       1,001          600        1,601 
2.00p per ordinary share paid on 3 January 2020 
 
First interim dividend for the year ending 31 October 2020 of       1,015          609        1,624 
2.00p per ordinary share paid on 29 April 2020 
 
                                                              -----------  -----------  ----------- 
 
                                                                    2,016        1,209        3,225 
 
                                                              -----------  -----------  ----------- 
 
Second interim dividend for the year ending 31 October 2020         1,624            -        1,624 
of 2.00p per ordinary share payable on 3 July 2020* 
 
                                                              -----------  -----------  ----------- 
 
                                                                    3,640        1,209        4,849 
 
                                                                   ======       ======       ====== 
 
*     Based on 81,204,044 ordinary shares in issue on 21 May 2020 (the 
ex-dividend date). 
 
7. EARNINGS AND NET ASSET VALUE PER ORDINARY SHARE 
Total revenue return, capital return and net asset value per share are shown 
below and have been calculated using the following: 
 
                                                                   Six months       Six months              Year 
                                                                        ended            ended             ended 
                                                                     30 April         30 April        31 October 
                                                                         2020             2019              2019 
                                                                  (unaudited)      (unaudited)         (audited) 
 
Net revenue profit attributable to ordinary shareholders (GBP             2,502            2,144             4,338 
'000) 
 
Net capital (loss)/profit attributable to ordinary                    (17,375)           1,966             6,032 
shareholders (GBP'000) 
 
                                                              ---------------  ---------------  --------------- 
 
Total (loss)/profit attributable to ordinary shareholders (GBP          (14,873)           4,110            10,370 
'000) 
 
                                                              ---------------  ---------------  --------------- 
 
Equity shareholders' funds (GBP'000)                                    130,003          127,746           142,786 
 
                                                              ---------------  ---------------  --------------- 
 
The weighted average number of ordinary shares in issue            80,690,446       70,051,946        72,835,622 
during the period on which the earnings per ordinary share 
was calculated was: 
 
                                                              ---------------  ---------------  --------------- 
 
The actual number of ordinary shares in issue at the end of        81,204,044       72,049,044        78,399,044 
each period on which the net asset value per ordinary share 
was calculated was: 
 
                                                              ---------------  ---------------  --------------- 
 
Earnings per share 
 
Revenue earnings per share (pence)                                       3.10             3.06              5.96 
 
Capital (loss)/earnings per share (pence)                              (21.53)            2.81              8.28 
 
                                                              ---------------  ---------------  --------------- 
 
Total (loss)/earnings per share (pence)                                (18.43)            5.87             14.24 
 
                                                                    =========        =========         ========= 
 
There were no dilutive securities at the period end (six month ended 30 April 
2019: nil, year ended 31 October 2019: nil). 
 
                                                                    As at        As at        As at 
                                                                 30 April     30 April   31 October 
                                                                     2020         2019         2019 
                                                              (unaudited)  (unaudited)    (audited) 
 
Net asset value per ordinary share (pence)                         160.09       177.30       182.13 
 
                                                              -----------  -----------  ----------- 
 
Ordinary share price (pence)                                       160.50       181.50       186.50 
 
                                                                   ======       ======       ====== 
 
8. CALLED UP SHARE CAPITAL 
 
                                                              Ordinary 
                                                             shares in           Treasury              Total            Nominal 
                                                                 issue             shares             shares              value 
(unaudited)                                                   (number)           (number)           (number)              GBP'000 
 
Allotted, called up and fully paid share capital 
comprised: 
 
Ordinary shares of 1 pence each: 
 
At 31 October 2019                                          78,399,044         21,962,261        100,361,305              1,004 
 
Ordinary shares reissued from treasury in the period         2,805,000         (2,805,000)                 -                  - 
 
                                                     -----------------  -----------------  -----------------  ----------------- 
 
At 30 April 2020                                            81,204,044         19,157,261        100,361,305              1,004 
 
                                                            ==========         ==========         ==========         ========== 
 
During the period to 30 April 2020, 2,805,000 ordinary shares were reissued 
from treasury for a total gross consideration of GBP5,323,000 (period ended 30 
April 2019: 3,175,000 ordinary shares for a total gross consideration of GBP 
5,510,000; year ended 31 October 2019: 9,525,000 ordinary shares for a total 
gross consideration of GBP17,252,000). 
 
No treasury shares were cancelled during the period (six months ended 30 April 
2019: nil; year ended 31 October 2019: nil). 
 
Since 30 April 2020 and up to the date of this report, no ordinary shares have 
been reissued from treasury. 
 
9. VALUATION OF FINANCIAL INSTRUMENTS 
Financial assets and financial liabilities are either carried in the Statement 
of Financial Position at their fair value (investments and derivatives) or at 
an amount which is a reasonable approximation of fair value (due from brokers, 
dividends and interest receivable, due to brokers, accruals, cash at bank and 
bank overdrafts). IFRS 13 requires the Company to classify fair value 
measurements using a fair value hierarchy that reflects the significance of 
inputs used in making the measurements. The valuation techniques used by the 
Company are explained in the accounting policies note 2(g) as set out in the 
Company's Annual Report and Financial Statements for the year ended 31 October 
2019. 
 
Categorisation within the hierarchy has been determined on the basis of the 
lowest level input that is significant to the fair value measurement of the 
relevant asset as follows. 
 
The fair value hierarchy has the following levels: 
 
Level 1 - Quoted market price for identical instruments in active markets 
A financial instrument is regarded as quoted in an active market if quoted 
prices are regularly and readily available from an exchange, dealer, broker, 
industry group, pricing service or regulatory agency and those prices represent 
actual and regularly occurring market transactions on an arm's length basis. 
The Company does not adjust the quoted price for these instruments. 
 
Level 2 - Valuation techniques using observable inputs 
This category includes instruments valued using quoted prices for similar 
instruments in markets that are considered less than active, or other valuation 
techniques where all significant inputs are directly or indirectly observable 
from market data. Valuation techniques used for non-standardised financial 
instruments such as options, currency swaps and other over-the-counter 
derivatives include the use of comparable recent arm's length transactions, 
reference to other instruments that are substantially the same, discounted cash 
flow analysis, option pricing models and other valuation techniques commonly 
used by market participants making the maximum use of market inputs and relying 
as little as possible on entity specific inputs. 
 
Level 3 - Valuation techniques using significant unobservable inputs 
This category includes all instruments where the valuation technique includes 
inputs not based on market data and these inputs could have a significant 
impact on the instrument's valuation. 
 
This category also includes instruments that are valued based on quoted prices 
for similar instruments where significant entity determined adjustments or 
assumptions are required to reflect differences between the instruments and 
instruments for which there is no active market. The Investment Manager 
considers observable data to be that market data that is readily available, 
regularly distributed or updated, reliable and verifiable, not proprietary and 
provided by independent sources that are actively involved in the relevant 
market. 
 
The level in the fair value hierarchy within which the fair value measurement 
is categorised in its entirety is determined on the basis of the lowest level 
input that is significant to the fair value measurement. If a fair value 
measurement uses observable inputs that require significant adjustment based on 
unobservable inputs, that measurement is a Level 3 measurement. 
 
Assessing the significance of a particular input to the fair value measurement 
in its entirety requires judgement, considering factors specific to the asset 
or liability. The determination of what constitutes 'observable' inputs 
requires significant judgement by the Investment Manager. 
 
Over-the-counter derivative option contracts have been classified as Level 2 
investments as their valuation has been based on market observable inputs 
represented by the underlying quoted securities to which these contracts expose 
the Company. 
 
The table below sets out fair value measurements using the IFRS 13 fair value 
hierarchy. 
 
 
 
Financial assets/(liabilities) at fair value            Level 1         Level 2         Level 3           Total 
through profit or loss at 30 April 2020                   GBP'000           GBP'000           GBP'000           GBP'000 
(unaudited) 
 
Assets: 
 
Equity investments                                      120,771               -               -         120,771 
 
Liabilities: 
 
Derivative financial instruments - written                    -          (1,150)              -          (1,150) 
options 
 
                                                 --------------  --------------  --------------  -------------- 
 
                                                        120,771          (1,150)              -         119,621 
 
                                                       ========        ========        ========        ======== 
 
 
 
 
 
Financial assets/(liabilities) at fair value            Level 1         Level 2         Level 3           Total 
through profit or loss at 30 April 2019                   GBP'000           GBP'000           GBP'000           GBP'000 
(unaudited) 
 
Assets: 
 
Equity investments                                      118,384               -               -         118,384 
 
Liabilities: 
 
Derivative financial instruments - written                    -            (650)              -            (650) 
options 
 
                                                 --------------  --------------  --------------  -------------- 
 
                                                        118,384            (650)              -         117,734 
 
                                                       ========        ========        ========        ======== 
 
 
 
 
 
Financial assets/(liabilities) at fair value            Level 1         Level 2         Level 3           Total 
through profit or loss at 30 October 2019                 GBP'000           GBP'000           GBP'000           GBP'000 
(audited) 
 
Assets: 
 
Equity investments                                      130,525               -               -         130,525 
 
Liabilities: 
 
Derivative financial instruments - written                    -            (482)              -            (482) 
options 
 
                                                 --------------  --------------  --------------  -------------- 
 
                                                        130,525            (482)              -         130,043 
 
                                                       ========        ========        ========        ======== 
 
There were no transfers between levels for financial assets and financial 
liabilities during the period/year recorded at fair value as at 30 April 2020, 
30 April 2019 and 31 October 2019. The Company did not hold any Level 3 
securities throughout the financial period under review or as at 30 April 2020, 
30 April 2019 and 31 October 2019. 
 
10. RELATED PARTY DISCLOSURE 
The Board consists of five non-executive Directors all of whom are considered 
to be independent by the Board. None of the Directors has a service contract 
with the Company. With effect from 1 November 2019, the Chairman receives an 
annual fee of GBP42,000, the Chairman of the Audit & Management Engagement 
Committee receives an annual fee of GBP35,000 and each of the Directors receives 
an annual fee of GBP29,000. At 30 April 2020, an amount of GBP14,000 (six months 
ended 30 April 2019: GBP10,000; year ended 31 October 2019: GBP14,000) was 
outstanding in respect of Directors' fees. 
 
At 30 April 2020, interests of the Directors in the ordinary shares of the 
Company are as set out below: 
 
                                                              Six months  Six months      Year 
                                                                   ended       ended     ended 
                                                                30 April    30 April         31 
                                                                    2020        2019   October 
                                                              (unaudited) (unaudited)     2019 
                                                                                      (audited) 
 
 
Simon Miller (Chairman)                                           38,094      38,094    38,094 
 
Christopher Casey                                                 19,047      19,047    19,047 
 
Andrew Irvine                                                     38,094      38,094    38,094 
 
Alice Ryder                                                        9,047       9,047     9,047 
 
Melanie Roberts                                                        -         n/a         - 
 
                                                                ========    ========  ======== 
 
Since the period end and up to the date of this report there have been no 
changes in Directors' holdings. 
 
11. TRANSACTIONS WITH THE AIFM AND INVESTMENT MANAGER 
BlackRock Fund Managers Limited (BFM) provides management and administration 
services to the Company under a contract which is terminable on six months' 
notice. BFM has (with the Company's consent) delegated certain portfolio and 
risk management services, and other ancillary services, to BlackRock Investment 
Management (UK) Limited (BIM (UK)). Further details of the investment 
management contract are disclosed on page 32 of the Directors' Report in the 
Company's Annual Report and Financial Statements for the year ended 31 October 
2019. 
 
The investment management fee due to BFM for the six months ended 30 April 2020 
amounted to GBP524,000 (six months ended 30 April 2019: GBP457,000; year ended 31 
October 2019: GBP1,002,000). At the period end GBP247,000 was outstanding in 
respect of the investment management fee (six months ended 30 April 2019: GBP 
456,000; year ended 31 October 2019: GBP546,000). 
 
In addition to the above services, BlackRock has provided the Company with 
marketing services. The total fees paid or payable for these services for the 
period ended 30 April 2020 amounted to GBP17,000 excluding VAT (six months ended 
30 April 2019: GBP14,000; year ended 31 October 2019: GBP26,000). Marketing fees of 
GBP40,000 excluding VAT (period ended 30 April 2019: GBP39,000; year ended 31 
October 2019: GBP23,000) were outstanding as at 30 April 2020. 
 
12. CONTINGENT LIABILITIES 
There were no contingent liabilities at 30 April 2020 (six months ended 30 
April 2019 and year ended 31 October 2019: nil). 
 
13. PUBLICATION OF NON STATUTORY ACCOUNTS 
The financial information contained in this half yearly financial report does 
not constitute statutory accounts as defined in section 435 of the Companies 
Act 2006. The financial information for the six months ended 30 April 2020 and 
30 April 2019 has not been audited. 
 
The information for the year ended 31 October 2019 has been extracted from the 
latest published audited financial statements which have been filed with the 
Registrar of Companies. The report of the auditors on this financial statements 
contained no qualifications or statement under sections 498(2) or 498(3) of the 
Companies Act 2006. 
 
14. ANNUAL RESULTS 
The Board expects to announce the annual results for the year ending 31 October 
2020 in late January 2021. 
 
Copies of the annual results announcement can be obtained from the Secretary on 
0207 743 3000 or cosec@blackrock.com. The Annual Report and Financial 
Statements should be available by the beginning of February 2021 with the 
Annual General Meeting being held in March 2021. 
 
FOR FURTHER INFORMATION, PLEASE CONTACT: 
 
Simon White, Managing Director, Investment Trusts, BlackRock Investment 
Management (UK) Limited - Tel: 020 7743 3000 
 
Press enquiries: 
Lansons Communications - Tel:  020 7294 3689 
E-mail:  BlackRockInvestmentTrusts@lansons.com 
 
24 June 2020 
 
12 Throgmorton Avenue 
London EC2N 2DL 
END 
 
 
 
END 
 

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