BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 30 September
2019 and unaudited.
Performance at month end with net
income reinvested
|
One
Month |
Three
Months |
Six
Months |
One
Year |
Three
Years |
Five years |
Net asset value |
1.6% |
5.1% |
12.3% |
8.2% |
40.7% |
93.0% |
Share price |
-1.7% |
4.5% |
14.7% |
11.4% |
47.6% |
112.1% |
Russell 1000 Value
Index |
2.4% |
4.7% |
11.3% |
10.1% |
38.1% |
91.5% |
Source: BlackRock
At month
end |
|
Net asset value –
capital only: |
186.14p |
Net asset value – cum
income: |
187.66p |
Share
price: |
190.75p |
Premium to cum income
NAV: |
1.6% |
Net
yield¹: |
4.2% |
Total assets including
current year
revenue: |
£146.3m |
Gearing: |
Nil |
Options
overwrite: |
15.7% |
Ordinary shares in
issue²: |
77,949,044 |
Ongoing charges³: |
1.1% |
¹ In line with the dividend policy announced in the Annual Report
on 17 December 2018 of dividends
amounting to 8.00p per share for the year ending 31 October 2019 and based on the share price as
at close of business on 30 September
2019.
² Excluding 22,412,261 ordinary shares held in treasury.
³ Ongoing charges represent the management fee and all other
operating expenses excluding interest as a % of average
shareholders’ funds for the year ended 31
October 2018.
Benchmark Sector
Analysis |
Total Assets
(%) |
|
|
Financials |
24.9 |
Health Care |
16.3 |
Energy |
9.6 |
Information Technology |
8.8 |
Industrials |
8.0 |
Consumer Staples |
6.7 |
Consumer Discretionary |
6.4 |
Communication Services |
6.2 |
Utilities |
2.5 |
Materials |
2.3 |
Net current assets |
8.3 |
|
----- |
|
100.0 |
|
===== |
|
|
Country Analysis |
Total Assets
(%) |
|
|
United States |
70.6 |
United Kingdom |
6.1 |
Netherlands |
3.3 |
Ireland |
3.1 |
Germany |
2.6 |
Switzerland |
2.1 |
Japan |
1.6 |
France |
0.9 |
Canada |
0.6 |
Denmark |
0.5 |
Norway |
0.3 |
Net current assets |
8.3 |
|
----- |
|
100.0 |
|
===== |
Ten Largest Investments |
|
|
Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
Verizon Communications |
USA |
4.2 |
JPMorgan Chase |
USA |
3.7 |
Wells Fargo |
USA |
3.6 |
Citigroup |
USA |
3.3 |
Bank of America |
USA |
2.7 |
Medtronic |
Ireland |
2.5 |
Williams Companies |
USA |
2.4 |
BP Group |
United Kingdom |
2.1 |
American International Group |
USA |
2.1 |
Comcast Corporation |
USA |
1.9 |
|
|
|
|
|
|
Tony
DeSpirito, Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 30
September 2019, the Company’s NAV increased by 1.6% and the
share price decreased by 1.7% (all in sterling). The Company’s
benchmark, the Russell 1000 Value Index, returned 2.4% for the
period.
At the sector level, the largest contributor to relative
performance was stock selection in the energy sector. Within the
sector, the relative outperformance was generated from our
selection among oil, gas, and consumable fuels firms. In
financials, stock selection among capital markets firms proved
beneficial, as did overweight exposure to banks. Additionally,
stock selection and allocation decisions in communication services
proved additive. Notably, underweight exposure to the entertainment
industry proved beneficial. Lastly, underweight exposure to the
real estate sector contributed positively to relative results.
The largest detractor from relative performance was stock
selection in the health care sector. Within the sector, selection
decisions in the health care providers and services industry proved
challenging. In consumer staples, stock selection in the tobacco
and personal products industries weighed on relative returns. Stock
selection decisions in the information technology sector also
detracted from relative performance, primarily due to decisions
made within the semiconductors and semiconductor equipment and IT
(Information Technology) services industries. In industrials,
overweight exposure to air freight and logistics and an underweight
to machinery firms proved harmful. Lastly, an elevated cash balance
hindered relative performance.
The portfolio’s option overwriting strategy contributed modestly
to performance in September.
Transactions/Options
Transactions: In September, the portfolio initiated new
positions in ConocoPhillips, Sanofi, Raymond James, Raytheon, Philip Morris
International, and Masco. We also added to existing positions in
Verizon Communications and Medtronic. Conversely, we exited our
position in Imperial Brands. Additionally, we trimmed our existing
positions in Goldman Sachs and Constellation Brands.
Options: As of 30 September 2019,
the Company’s options exposure was 15.7% and the delta of the
options 84.5.
Positioning
As of the period end, the Company’s largest overweight positions
relative to the benchmark were in the health care, information
technology and energy sectors. The Company’s largest underweight
positions relative to the benchmark were in the real estate,
utilities and consumer staples sectors.
Source: BlackRock. Data as of 30
September 2019.
15 October 2019
Latest information is available by typing blackrock.co.uk/brna
on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or
"8800" on Topic 3 (ICV terminal). Neither the contents of the
Manager’s website nor the contents of any website accessible from
hyperlinks on the Manager’s website (or any other website) is
incorporated into, or forms part of, this announcement.