BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 August 2018
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 |
2.3% |
8.5% |
11.7% |
12.2% |
72.3% |
98.1% |
Share price |
5.2% |
9.1% |
15.1% |
19.4% |
83.7% |
90.9% |
Russell 1000 Value
Index |
2.4% |
8.3% |
11.2% |
11.5% |
67.7% |
102.6% |
Source: BlackRock
At month
end |
|
Net asset value –
capital only: |
181.75p |
Net asset value – cum
income: |
182.29p |
Share
price: |
180.00p |
Discount to cum income
NAV: |
1.3% |
Net
yield¹: |
4.4% |
Total assets including
current year
revenue: |
£125.6m |
Gearing: |
Nil |
Options
overwrite: |
15.0% |
Ordinary shares in
issue²: |
68,874,044 |
Ongoing charges³: |
1.1% |
¹ In line with the dividend policy announced in the Annual Report
on 13 December 2017 of dividends
amounting to 8.00p per share for the year ending 31 October 2018 and based on the share price as
at close of business on 31 August
2018.
² Excluding 31,487,261 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 2017.
Benchmark Sector
Analysis |
Total Assets
(%) |
|
|
Financials |
26.6 |
Health Care |
17.3 |
Energy |
11.7 |
Information Technology |
11.2 |
Industrials |
8.0 |
Consumer Staples |
6.6 |
Utilities |
4.9 |
Consumer Discretionary |
3.8 |
Telecommunication Services |
3.6 |
Materials |
2.2 |
Net current assets |
4.1 |
|
----- |
|
100.0 |
|
===== |
Country Analysis |
Total Assets
(%) |
|
|
United States |
79.9 |
United Kingdom |
5.0 |
Canada |
3.1 |
Ireland |
2.6 |
Netherlands |
2.4 |
France |
0.9 |
Denmark |
0.8 |
Germany |
0.6 |
China |
0.4 |
Switzerland |
0.2 |
Net Current assets |
4.1 |
|
----- |
|
100.0 |
|
===== |
|
|
Ten Largest Investments |
|
|
Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
JPMorgan Chase |
USA |
4.1 |
Pfizer |
USA |
3.8 |
Bank of America |
USA |
3.5 |
Citigroup |
USA |
3.4 |
Verizon Communications |
USA |
3.4 |
Wells Fargo |
USA |
3.3 |
Oracle |
USA |
2.9 |
Anthem |
USA |
2.5 |
Suncor Energy |
Canada |
2.4 |
Microsoft |
USA |
2.4 |
|
|
|
|
|
|
Tony
DeSpirito, Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 31 August
2018, the Company’s NAV increased by 2.3% while the share
price increased by 5.2% (all in sterling). The Company’s benchmark,
the Russell 1000 Value Index, returned 2.4% for the period.
The largest contributor to relative performance was stock
selection in the consumer discretionary sector, most notably in the
specialty retail industry. In utilities, stock selection in
electric utilities also boosted relative performance. Other notable
contributors included our overweight to the health care providers
& services industry and a combination of stock selection and an
overweight to the information technology sector.
The largest detractor from relative performance was a
combination of allocation decisions and stock selection in the
financials sector. Notably, an underweight to the diversified
financial services industry proved costly, as did stock selection
in the banks industry. The portfolio’s cash position, which
averaged 5.6% during the period, weighed on relative returns amid
rising U.S. equity prices. Other notable detractors included our
underweight to real estate and stock selection in the industrials
sector.
The portfolio’s option overwriting strategy detracted from
absolute returns in August. This should be understood within the
context of rising U.S. equity market prices.
Transactions/Options
Transactions: In August we initiated new positions in Mondelez
International, Inc., Nestlé S.A. and Newell Brands Inc. Position
sizes in Verizon Communications Inc., Marathon Petroleum
Corporation, Arthur J. Gallagher
& Co. and The Williams Companies, Inc. were also increased.
Conversely, we exited our positions in Chevron Corporation,
Royal Dutch Shell plc and Lincoln
National Corporation. Other notable trades included trimming our
existing positions in The Kroger Co, Bank of America Corporation
and KeyCorp.
Options: As of 31 August
2018, the Company’s options exposure was 15.0% and the delta
of the options was 87.6.
Positioning
As of the period end, the Company’s largest overweight positions
relative to the benchmark were in the health care, financials and
information technology sectors. The Company’s largest underweight
positions relative to the benchmark were in the real estate,
consumer discretionary and materials sectors.
Source: BlackRock.
19 September 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.