BlackRock North American Income Trust Plc - Portfolio Update
PR Newswire
London, May 23
BLACKROCK NORTH AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 30 April 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 | 3.8% | 7.7% | 3.3% | 11.9% | 52.5% | 89.9% |
| Share price | 6.8% | 8.3% | 9.5% | 23.0% | 65.2% | 99.9% |
| Russell 1000 Value Index | 3.5% | 8.5% | 5.8% | 15.2% | 53.6% | 92.7% |
Source: BlackRock
| At month end | |
| Net asset value - capital only: | 175.55p |
| Net asset value - cum income: | 177.27p |
| Share price: | 181.50p |
| Premium to cum income NAV: | 2.4% |
| Net yield¹: | 4.4% |
| Total assets including current year revenue: | £127.7m |
| Gearing: | Nil |
| Options overwrite: | 84.2% |
| Ordinary shares in issue²: | 72,049,044 |
| 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 April 2019.
² Excluding 28,312,261 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 | 26.1 |
| Information Technology | 12.4 |
| Health Care | 12.0 |
| Energy | 10.4 |
| Consumer Staples | 8.8 |
| Industrials | 8.2 |
| Communication Services | 6.1 |
| Consumer Discretionary | 3.2 |
| Utilities | 2.6 |
| Materials | 2.4 |
| Net current assets | 7.8 |
| ----- | |
| 100.0 | |
| ===== |
| Country Analysis | Total Assets (%) |
| United States | 74.7 |
| United Kingdom | 5.7 |
| Netherlands | 3.0 |
| Ireland | 2.7 |
| Switzerland | 2.4 |
| Germany | 1.5 |
| Canada | 1.4 |
| Denmark | 0.5 |
| France | 0.3 |
| Net current assets | 7.8 |
| ----- | |
| 100.0 | |
| ===== |
| Ten Largest Investments | ||
| Company | Country of Risk | Total Assets (%) |
| Verizon Communications | USA | 4.2 |
| JPMorgan Chase | USA | 3.6 |
| Citigroup | USA | 3.4 |
| Wells Fargo | USA | 3.4 |
| Bank of America | USA | 3.0 |
| Oracle | USA | 2.6 |
| Microsoft | USA | 2.5 |
| BP Group | United Kingdom | 2.5 |
| Pfizer | USA | 2.2 |
| Koninklijke Philips | Netherlands | 2.1 |
Tony DeSpirito, Franco Tapia and David Zhao, representing the Investment Manager, noted:
For the one-month period ended 30 April 2019, the Company's NAV increased by 3.8% while the share price increased by 6.8% (all in sterling). The Company's benchmark, the Russell 1000 Value Index, returned 3.5% for the period.
The largest contributor to relative performance was stock selection in the information technology sector. Notably, stock selection in the semiconductors & semiconductors equipment industry proved to be beneficial. In energy, stock selection in the oil, gas & consumable fuels industry boosted relative returns. Lastly, an underweight to real estate and stock selection in consumer staples added to relative results during the month.
The largest detractor from relative performance was a combination of stock selection and allocation decisions in the communication services sector. Notably, an underweight to the entertainment industry proved costly, as did our overweight and stock selection in the diversified telecom services industry. In industrials, stock selection in machinery and an underweight to the airlines industry weighed on relative returns. Lastly, a combination of stock selection and an overweight to health care and the portfolio's cash position, which averaged 8.0% during the month, dampened relative performance.
The portfolio's option overwriting strategy detracted from performance in April amid rising U.S. stock prices.
Transactions/Options
Transactions: In April, the portfolio added two new positions through corporate actions including Alcon (a spin-off from Novartis) and Dow (a spin-off from DowDuPont). A new position was initiated in General Motors Company and we also increased our existing exposure to Alcon and General Electric Company. Conversely, we trimmed our existing positions in Pfizer, Novartis, Apple and AstraZeneca.
Options: As of 30 April 2019, the Company's options exposure was 16.4% and the delta of the options 84.2.
Positioning
As of the period end, the Company's largest overweight positions relative to the benchmark were in the financials, information technology and energy sectors. The Company's largest underweight positions relative to the benchmark were in the real estate, utilities and consumer discretionary sectors.
Source: BlackRock.
23 May 2019
