BlackRock North American Income Trust Plc - Portfolio Update
PR Newswire
London, October 15
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.
