BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 30 June 2020
and unaudited.
Performance at month end with net
income reinvested
|
One
Month |
Three
Months |
Six
Months |
One
Year |
Three
Years |
Five
Years |
Net asset value |
0.0% |
14.0% |
-8.0% |
-3.0% |
13.1% |
68.7% |
Share price |
-5.2% |
10.1% |
-18.7% |
-14.1% |
10.6% |
69.8% |
Russell 1000 Value
Index |
-0.6% |
14.7% |
-10.2% |
-6.1% |
11.0% |
59.7% |
Source: BlackRock
At month
end |
|
Net asset value –
capital only: |
165.91p |
Net asset value – cum
income: |
166.91p |
Share
price: |
151.00p |
Discount to cum income
NAV: |
9.5% |
Net
yield¹: |
5.3% |
Total assets including
current year
revenue: |
£135.5m |
Gearing: |
Nil |
Options
overwrite: |
17.2% |
Ordinary shares in
issue²: |
81,204,044 |
Ongoing charges³: |
1.1% |
1 Based on four quarterly interim dividends of 2.00p per
share declared on 6 August 2019 and
7 November 2019 for the year ended
31 October 2019 and on 20 March 2020 and 5 May
2020 for the year ending 31 October
2020, and based on the share price as at close of business
on 30 June 2020.
² Excluding 19,157,261 ordinary shares held in treasury.
³ Ongoing charges represent the management fee and all other
operating expenses excluding interest as a % of average
shareholders’ funds for the year ended 31
October 2019.
Benchmark Sector
Analysis |
Total Assets
(%) |
|
|
Financials |
24.2 |
Health Care |
18.0 |
Information Technology |
10.0 |
Energy |
7.9 |
Consumer Staples |
7.8 |
Communication Services |
7.0 |
Industrials |
6.7 |
Utilities |
5.2 |
Consumer Discretionary |
4.8 |
Materials |
1.7 |
Net current assets |
6.7 |
|
----- |
|
100.0 |
|
===== |
|
|
Country Analysis |
Total Assets
(%) |
|
|
United States |
71.2 |
United Kingdom |
5.0 |
Netherlands |
4.8 |
Germany |
4.4 |
France |
2.5 |
Ireland |
2.2 |
Switzerland |
2.0 |
Norway |
1.1 |
Canada |
0.1 |
Net current assets |
6.7 |
|
----- |
|
100.0 |
|
===== |
Ten Largest Investments |
|
|
Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
Verizon Communications |
USA |
4.1 |
Bank of America |
USA |
3.2 |
Citigroup |
USA |
3.2 |
Sanofi |
France |
2.5 |
Medtronic |
Ireland |
2.2 |
Anthem |
USA |
2.2 |
Altria Group |
USA |
2.1 |
Cognizant Technology Solutions |
USA |
2.1 |
Unilever |
Netherlands |
2.1 |
Bayer |
Germany |
2.0 |
|
|
|
|
|
|
Tony
DeSpirito, Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 30 June
2020, the Company’s NAV remained flat with no change and the
share price decreased by 5.2% (all in sterling). The Company’s
benchmark, the Russell 1000 Value Index, returned -0.6% for the
period.
The largest contributor to relative performance was stock
selection in the information technology(‘IT’) sector. Notably,
selection decisions and an overweight exposure to software
contributed positively, as did stock selection in the IT services
industry. In health care, stock selection in pharmaceuticals
boosted relative returns. Other notable contributors included stock
selection in consumer staples and financials.
The largest detractor from relative performance was an
underweight exposure to the real estate sector. Notably, an
underweight exposure to equity real estate investment trusts
(REITs) weighed on relative results. Stock selection and an
underweight exposure to industrials also hurt relative performance,
primarily due to underweight exposure to machinery and building
products and stock selection in the aerospace and defence industry.
Other notable detractors during the period included stock selection
in consumer discretionary and an underweight exposure to
materials.
The portfolio’s option overwriting strategy modestly detracted
from relative performance in June.
Transactions/Options
Transactions: In June the portfolio initiated new positions in
TJX, Applied Material and CDK Global, as well as added to existing
positions in Ross Stores and BAE
Systems. Conversely, we exited our positions in Lockheed Martin,
PepsiCo, Conagra Brands, US Bancorp and Pentair. We also reduced
our exposure to Willis Towers Watson
during the month.
Options: As of 30 June 2020,
the Company’s options exposure was 17.2% and the delta of the
options was 87.5.
Positioning
As of the period end, the Company’s largest overweight positions
relative to the benchmark were in the financials, health care and
energy sectors. The Company’s largest underweight positions
relative to the benchmark were in the industrials, real estate and
materials sectors.
Source: BlackRock. Data as of 30 June
2020.
24 July 2020
Latest information is available by typing blackrock.com/uk/brna
on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or
"8800" on Topic 3 (ICV terminal). Neither the contents of the
Manager’s website nor the contents of any website accessible from
hyperlinks on the Manager’s website (or any other website) is
incorporated into, or forms part of, this announcement.