BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 January 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 |
-2.1% |
1.2% |
-1.6% |
14.4% |
23.4% |
77.2% |
Share price |
-1.3% |
2.1% |
-3.5% |
16.2% |
30.4% |
94.8% |
Russell 1000 Value
Index |
-1.7% |
1.7% |
-1.9% |
14.6% |
22.3% |
72.9% |
Source: BlackRock
At month
end |
|
Net asset value –
capital only: |
180.45p |
Net asset value – cum
income: |
182.29p |
Share
price: |
188.50p |
Premium to cum income
NAV: |
3.4% |
Net
yield¹: |
4.2% |
Total assets including
current year
revenue: |
£148.0m |
Gearing: |
Nil |
Options
overwrite: |
14.7% |
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 5 March 2019,
8 May 2019, 6
August 2019 and 7 November
2019 for the year ended 31 October
2019 and based on the share price as at close of business on
31 January 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 |
25.7 |
Health Care |
17.2 |
Energy |
8.8 |
Information Technology |
8.4 |
Industrials |
8.2 |
Consumer Staples |
7.1 |
Communication Services |
6.8 |
Consumer Discretionary |
5.5 |
Utilities |
2.6 |
Materials |
1.3 |
Net current assets |
8.4 |
|
----- |
|
100.0 |
|
===== |
Country Analysis |
Total Assets
(%) |
|
|
United States |
69.9 |
United Kingdom |
6.5 |
Netherlands |
3.8 |
Ireland |
2.8 |
Germany |
2.8 |
Switzerland |
1.9 |
France |
1.5 |
Japan |
1.4 |
Canada |
0.6 |
Norway |
0.4 |
Net current assets |
8.4 |
|
----- |
|
100.0 |
|
===== |
|
|
Ten Largest Investments |
|
|
Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
JPMorgan Chase |
USA |
3.9 |
Verizon Communications |
USA |
3.9 |
Citigroup |
USA |
3.3 |
Wells Fargo |
USA |
3.1 |
Bank of America |
USA |
2.8 |
Medtronic |
Ireland |
2.5 |
Williams Companies |
USA |
2.1 |
Koninklijke Philips |
Netherlands |
2.0 |
BP Group |
United Kingdom |
2.0 |
American International Group |
USA |
2.0 |
Tony
DeSpirito, Franco Tapia and
David Zhao, representing the
Investment Manager, noted:
For the one-month period ended 31 January
2020, the Company’s NAV decreased by 2.1% and the share
price by 1.3% (all in sterling). The Company’s benchmark, the
Russell 1000 Value Index, returned -1.7% for the period.
At the sector level, the largest contributor to relative
performance was stock selection in the industrials sector. Notably,
selection decisions in the aerospace and defence industry proved
beneficial. In the information technology (IT) sector, an
overweight exposure to the software industry and stock selection in
communications equipment boosted relative returns. Other
contributors to relative performance included an underweight
exposure to materials and stock selection in the consumer
discretionary sector.
The largest detractor from relative performance was stock
selection in the health care sector. Selection decisions in health
care providers and services, health care equipment and supplies and
the pharmaceuticals industries weighed on relative results. In
utilities, an overweight exposure to the electric and
multi-utilities industries hindered relative returns. Other
detractors from relative performance included stock selection in
financials and an underweight position in the real estate
sector.
The portfolio’s option overwriting strategy detracted modestly
from performance in January.
Transactions/Options
Transactions: In January, the portfolio initiated a new position
in The Progressive Corporation and added to existing positions in
Cisco Systems and Arthur J.
Gallagher & Co. Conversely, we trimmed our existing
positions in Samsung Electronics, Baker Hughes and The Travelers
Companies.
Options: As of 31 January
2020, the Company’s options exposure was 14.7% and the delta
of the options was 86.9.
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,
utilities and materials sectors.
Source: BlackRock. Data as of 31 January
2020.
20 February 2020
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.