BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 30 September
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 |
-0.2% |
-1.9% |
11.8% |
-9.5% |
10.5% |
70.2% |
| Share price |
-1.6% |
0.6% |
10.7% |
-17.3% |
11.1% |
76.6% |
| Russell 1000 Value
Index |
1.0% |
0.9% |
15.7% |
-9.5% |
12.2% |
69.4% |
Source: BlackRock
| At month
end |
|
| Net asset value –
capital only: |
161.02p |
| Net asset value – cum
income: |
161.77p |
| Share
price: |
150.00p |
| Discount to cum income
NAV: |
7.3% |
| Net
yield¹: |
5.3% |
| Total assets including
current year
revenue: |
£129.8m |
|
Gearing: |
Nil |
| Options
overwrite: |
18.4% |
| Ordinary shares in
issue²: |
80,214,044 |
| Ongoing charges³: |
1.1% |
1 Based on four quarterly interim dividends of 2.00p per
share declared on 7 November 2019 for
the year ended 31 October 2019, and
on 20 March 2020, 5 May 2020 and 6 August
2020 for the year ending 31 October
2020, and based on the share price as at close of business
on 30 September 2020.
² Excluding 20,147,261 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 |
24.3 |
| Health Care |
17.2 |
| Information Technology |
11.9 |
| Consumer Staples |
9.7 |
| Communication Services |
7.8 |
| Energy |
6.8 |
| Industrials |
6.7 |
| Consumer Discretionary |
5.0 |
| Utilities |
3.4 |
| Materials |
2.0 |
| Net current assets |
5.2 |
|
----- |
|
100.0 |
|
===== |
| Country Analysis |
Total Assets
(%) |
|
|
| United States |
72.5 |
| Netherlands |
5.1 |
| United Kingdom |
4.7 |
| Germany |
4.3 |
| Ireland |
2.7 |
| France |
2.5 |
| Switzerland |
1.7 |
| Norway |
0.8 |
| Canada |
0.5 |
| Net current assets |
5.2 |
|
----- |
|
100.0 |
|
===== |
Ten Largest Investments |
|
|
| Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
| Verizon Communications |
USA |
4.3 |
| Bank of America |
USA |
3.0 |
| Citigroup |
USA |
2.7 |
| Medtronic |
Ireland |
2.7 |
| Comcast Corporation |
USA |
2.5 |
| Cognizant Technology Solutions |
USA |
2.4 |
| Wells Fargo |
USA |
2.3 |
| Sanofi |
France |
2.3 |
| Samsung Electronics |
USA |
2.3 |
| Altria Group |
USA |
2.2 |
Tony
DeSpirito, Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 30
September 2020, the Company’s NAV decreased by 0.2% and the
share price by 1.6% (all in sterling). The Company’s benchmark, the
Russell 1000 Value Index, returned 1.0% for the period.
The largest contributor to relative performance was stock
selection in the communication services sector. Notably, selection
decisions in the media and diversified telecom services industries
proved beneficial. In information technology, stock selection in
technology hardware, storage and peripherals and communications
equipment boosted relative returns. Other modest contributors
during the month included stock selection in consumer staples and
the portfolio’s cash allocation.
The largest detractor from relative performance was stock
selection in the financials sector. Notably, stock selection in the
banks and diversified financial services industries proved costly
during the month. In industrials, stock selection in aerospace and
defence and an underweight exposure to the machinery industry
weighed on relative results. Other notable detractors during the
period included an overweight exposure to the energy sector and an
underweight exposure to materials.
The portfolio’s option overwriting strategy contributed to
relative performance in September.
Transactions/Options
Transactions: In September, the portfolio initiated a new
position in PPG Industries and we added to our existing position in
Samsung Electronics. Conversely, we exited our position in Quest
Diagnostics and reduced our exposure to Morgan Stanley during the
month.
Options: As of 30 September
2020, the Company’s options exposure was 18.4% and the delta
of the options was 89.2.
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
September 2020.
14 October 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.