BLACKROCK NORTH AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 August 2017 and unaudited.
Performance at month end with net income reinvested
One Three Six One Three Since
Month Months Months Year Years Launch*
Net asset value 1.4% 2.5% -0.6% 16.2% 61.8% 102.6%
Share price 1.4% 2.8% -2.4% 15.0% 61.0% 86.1%
Russell 1000 Value Index 1.1% 2.0% -3.0% 13.4% 56.7% 124.6%
Source: BlackRock
*Launched on 24 October 2012.
At month end
Net asset value - capital only: 168.40p
Net asset value - cum income: 169.45p
Share price: 157.38p
Discount to cum income NAV: 7.1%
Net yield*: 3.1%
Total assets including current year revenue: £116.7m
Gearing: nil
Options overwrite: 18.4%
Ordinary shares in issue**: 68,874,044
Ongoing charges***: 1.0%
* Based on dividends of 1.20p per share declared on 3 November 2016, 21
February 2017
and 1.25p per share declared on 3 May 2017 and 8 August 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 2016.
Benchmark
Sector Analysis Total Assets (%)
Financials 26.5
Health Care 16.3
Industrials 11.4
Energy 10.6
Information Technology 10.2
Consumer Staples 6.3
Utilities 5.3
Consumer Discretionary 4.1
Materials 3.2
Telecommunication Services 2.2
Net current assets 3.9
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100.0
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Country Analysis Total Assets (%)
USA 81.9
Netherlands 4.0
United Kingdom 3.6
Canada 2.8
France 2.1
Ireland 0.8
South Korea 0.5
China 0.4
Net current assets 3.9
-----
100.0
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Ten Largest Investments
Company Country of Risk Total Assets (%)
JPMorgan Chase USA 4.0
Citigroup USA 3.7
Bank of America USA 3.6
Pfizer USA 3.5
Oracle USA 3.0
Wells Fargo USA 2.5
Anthem USA 2.5
Dow Chemical USA 2.5
Microsoft USA 2.1
Merck USA 2.1
Tony DeSpirito, Franco Tapia and David Zhao, representing the Investment
Manager, noted:
For the one month period ended August 31, 2017 the Company's NAV increased by
1.4% while the share price increased by 1.4%. The Company's benchmark, the
Russell 1000 Value Index, rose by 1.1% for the period (all performance figures
in sterling terms and with income reinvested).
The largest contributor to relative performance during the month was stock
selection in the health care sector. Notably, stock selection decisions in the
health care providers & services industry proved to be beneficial. Stock
selection in the energy sector also boosted relative returns, led by our
decisions to underweight Exxon Mobil Corporation and to own non-benchmark
holding Total SA. Lastly, stock selection in industrials and consumer staples
contributed to relative performance during the month.
The largest detractor from relative performance was stock selection in the
financials sector. Notably, stock selection in the insurance industry proved to
be costly, as did our decision not to own Berkshire Hathaway, a large benchmark
holding that does not pay a dividend. Stock selection in information technology
also weighed on relative performance, as did our underweight to the utilities
sector during the month.
Transactions/Options
Transactions: Notable portfolio transactions during the month included
initiating a new position in Humana and exiting our positions in The Allstate
Corporation and Dominion Energy.
Options: As of 31 August 2017, the Company's options exposure was 18.4% and
the delta of the options was 88.3.
Positioning
As of the period end, the Company's largest overweight positions relative to
the benchmark were in the health care, information technology and industrials
sectors. Our largest underweight positions relative to the benchmark were in
the real estate, consumer discretionary and consumer staples sectors.
21 September 2017
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.