BLACKROCK NORTH
AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 December
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 |
0.1% |
0.2% |
5.4% |
20.7% |
23.9% |
79.8% |
Share price |
-0.1% |
1.2% |
5.7% |
23.9% |
27.2% |
97.8% |
Russell 1000 Value
Index |
0.3% |
-0.1% |
4.6% |
21.7% |
23.1% |
75.3% |
Source: BlackRock
At month
end |
|
Net asset value –
capital only: |
184.53p |
Net asset value – cum
income: |
186.11p |
Share
price: |
191.00p |
Premium to cum income
NAV: |
2.6% |
Net
yield¹: |
4.2% |
Total assets including
current year
revenue: |
£150.1m |
Gearing: |
Nil |
Options
overwrite: |
14.2% |
Ordinary shares in
issue²: |
80,654,044 |
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 31 December
2019.
² Excluding 19,707,261 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 |
26.0 |
Health Care |
17.5 |
Energy |
9.4 |
Information Technology |
8.1 |
Industrials |
7.9 |
Consumer Staples |
7.0 |
Communication Services |
6.9 |
Consumer Discretionary |
5.5 |
Utilities |
2.4 |
Materials |
1.4 |
Net current assets |
7.9 |
|
----- |
|
100.0 |
|
===== |
Country Analysis |
Total Assets
(%) |
|
|
United States |
70.9 |
United Kingdom |
6.2 |
Netherlands |
3.7 |
Germany |
2.8 |
Ireland |
2.8 |
Switzerland |
1.9 |
France |
1.6 |
Japan |
1.4 |
Canada |
0.5 |
Norway |
0.3 |
Net current assets |
7.9 |
|
----- |
|
100.0 |
|
===== |
Ten Largest Investments |
|
|
Company |
Country of
Risk |
Total Assets
(%) |
|
|
|
JPMorgan Chase |
USA |
4.0 |
Verizon Communications |
USA |
3.9 |
Wells Fargo |
USA |
3.4 |
Citigroup |
USA |
3.4 |
Bank of America |
USA |
2.9 |
Medtronic |
Ireland |
2.4 |
Williams Companies |
USA |
2.4 |
Anthem |
USA |
2.1 |
Koninklijke Philips |
Netherlands |
2.1 |
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
December 2019, the Company’s NAV increased by 0.1% and the
share price decreased by 0.1% (all in sterling). The Company’s
benchmark, the Russell 1000 Value Index, returned 0.3% for the
period.
At the sector level, the largest contributor to relative
performance was stock selection in the health care sector. Within
the sector, relative outperformance was generated primarily from
our selection among health care providers, services and
pharmaceuticals firms. Underweight exposure to the real estate
sector also proved beneficial. In communication services,
underweight exposure to the entertainment industry proved
beneficial. Additionally, stock selection in consumer staples
proved additive. Notably, selection decisions among food product
companies proved beneficial, as did an underweight exposure to the
food and staples retailing industry. Lastly, stock selection in the
household durables industry within consumer discretionary
contributed positively to relative results.
The largest detractor from relative performance was a
combination of stock selection and allocation decisions in the
information technology (IT) sector. Within the sector, selection
decisions in the IT services industry hampered relative results, as
did an underweight positioning in the semiconductors and
semiconductor equipment industry. In utilities, stock selection
among electric utilities weighed on relative returns. Stock
selection in the energy sector also detracted from relative
performance, primarily due to decisions made within the oil, gas
and consumable fuels industry. Lastly, overweight exposure to the
insurance industry detracted from relative returns during the
month.
The portfolio’s option overwriting strategy contributed modestly
to performance in December.
Transactions/Options
Transactions: In December, the portfolio initiated new positions
in Berkshire Hathaway, Johnson & Johnson and Fortive.
Additionally, we added to existing positions in Medtronic and
Sanofi. Conversely, we exited our positions in Novo Nordisk,
Marvell Technology, Johnson Controls, Mattel, Philip Morris,
International Paper, Qualcomm, Masco, Marsh & McLennan and
Goldman Sachs. Additionally, we trimmed our existing positions in
Pfizer and State Street.
Options: As of 31 December
2019, the Company’s options exposure was 14.2% and the delta
of the options was 83.7.
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 December
2019.
15 January 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.