BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 December
2017 and unaudited.
Performance at month end with net
income reinvested
|
One
Month |
Three
Months |
Six
Months |
One
Year |
Three
Years |
Since
Launch* |
Net asset value |
0.9% |
3.9% |
4.4% |
5.2% |
52.7% |
108.4% |
Share price |
-0.3% |
5.6% |
5.8% |
-1.1% |
53.7% |
93.7% |
Russell 1000 Value
Index |
1.5% |
4.5% |
4.3% |
3.8% |
47.9% |
132.0% |
Source: BlackRock
*Launched on 24
October 2012.
At month
end |
|
Net asset value –
capital only: |
172.20p |
Net asset value – cum
income: |
173.00p |
Share
price: |
162.50p |
Discount to cum income
NAV: |
6.1% |
Net
yield*: |
3.0% |
Total assets including
current year
revenue: |
£119.2m |
Gearing: |
Nil |
Options
overwrite: |
14.6% |
Ordinary shares in
issue**: |
68,874,044 |
Ongoing
charges***: |
1.07% |
* Based on dividends of 1.20p per share declared on 21 February 2017 and 1.25p per share declared on
3 May 2017, 8
August 2017 and 2 November
2017.
** Excluding 31,487,261 ordinary shares held in treasury.
*** 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 2017.
Benchmark |
|
Sector Analysis |
Total Assets
(%) |
|
|
Financials |
27.6 |
Health Care |
17.1 |
Energy |
11.3 |
Industrials |
9.3 |
Information Technology |
9.0 |
Consumer Staples |
7.1 |
Utilities |
5.0 |
Consumer Discretionary |
3.8 |
Materials |
3.0 |
Telecommunication Services |
2.8 |
Net current assets |
4.0 |
|
----- |
|
100.0 |
|
===== |
Country Analysis |
Total Assets
(%) |
|
|
USA |
78.6 |
Netherlands |
4.5 |
United Kingdom |
4.1 |
Canada |
3.0 |
Ireland |
2.3 |
France |
1.8 |
Denmark |
0.9 |
China |
0.4 |
South Korea |
0.4 |
Net current assets |
4.0 |
|
----- |
|
100.0 |
|
===== |
|
|
Ten Largest Investments |
|
|
Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
Bank of America |
USA |
4.1 |
JPMorgan Chase |
USA |
4.1 |
Pfizer |
USA |
3.7 |
Citigroup |
USA |
3.7 |
Wells Fargo |
USA |
3.1 |
Oracle |
USA |
2.9 |
Anthem |
USA |
2.6 |
Royal Dutch Shell |
Netherlands |
2.3 |
Microsoft |
USA |
2.2 |
Verizon Communications |
USA |
2.0 |
Tony DeSpirito,
Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 31
December 2017, the Company’s NAV increased by 0.9% while the
share price decreased by 0.3% (all in sterling). The Company’s
benchmark, the Russell 1000 Value Index, returned 1.5% for the
period.
The largest contributor to relative performance during the month
was stock selection in the consumer staples sector. Notably, our
selection in the beverages industry proved to be beneficial, as
seen in our overweight exposure to Diageo and Dr. Pepper Snapple
Group. In real estate, the Company benefited from a lack of
exposure, as performance was challenged during the month of
December. Stock selection in the energy sector also contributed to
relative performance during the month, most notably in the oil,
gas, & consumable fuels industry.
The largest detractor from relative performance was a
combination of stock selection and allocation decisions in the
information technology sector. Most notably, an overweight to
software, an underweight to internet software & services, and
stock selection among semiconductors & semiconductor equipment
firms proved to be performance headwinds. Stock selection and
allocation decisions in industrials also proved to be costly, with
relative underperformance stemming from our selection among
aerospace & defence firms and our decision to hold overweight
exposure to industrial conglomerates. Lastly, stock selection in
the materials and telecommunication services sectors dampened
relative performance, as did an elevated cash balance.
Transactions/Options
Transactions: Notable portfolio transactions during the month
included initiating new positions in Edison International and
Regions Financial, while conversely exiting our position in Johnson
& Johnson.
Options: As of 31 December
2017, the Company’s options exposure was 14.6% and the delta
of the options was 89.1.
Positioning
As of period end, the Company’s largest overweight positions
relative to the benchmark were in the health care, financials,
information technology and materials sectors. The Company’s largest
underweight positions relative to the benchmark were in the real
estate, consumer discretionary and consumer staples sectors.
Source: BlackRock.
15 January 2018
Latest information is available by typing blackrock.co.uk/brna
on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or
"8800" on Topic 3 (ICV terminal). Neither the contents of the
Manager’s website nor the contents of any website accessible from
hyperlinks on the Manager’s website (or any other website) is
incorporated into, or forms part of, this announcement.