Half-year Report
BLACKROCK NORTH AMERICAN INCOME TRUST PLC
LEI: 549300WWOCXSC241W468 - Article 5 Transparency Directive, DTR 4.2
Half Yearly Financial Report 30 April 2020
PERFORMANCE RECORD
FINANCIAL HIGHLIGHTS
|
|
As at 30 April 2020 |
As at 31 October 2019 |
Change % |
| Net assets (£000)1 | 130,003 | 142,786 | -9.0 |
| Net asset value per ordinary share (pence) | 160.09 | 182.13 | -12.1 |
| – with dividends reinvested2 | -9.9 | ||
| Ordinary share price (mid-market) (pence) | 160.50 | 186.50 | -13.9 |
| – with dividends reinvested2 | -11.7 | ||
| Russell 1000 Value Index (with dividends reinvested) | 1,163.57 | 1,313.68 | -11.4 |
| Premium to cum income net asset value2 | 0.3% | 2.4% | |
| -------------- | -------------- | -------------- |
|
|
For the six months ended 30 April 2020 |
For the six months ended 30 April 2019 |
Change % |
| Revenue | |||
| Net profit after taxation (£000) | 2,502 | 2,144 | +16.7 |
| Revenue earnings per ordinary share (pence) | 3.10 | 3.06 | +1.3 |
| -------------- | -------------- | -------------- | |
| Interim dividends (pence) | |||
| 1st interim | 2.00 | 2.00 | 0.0 |
| 2nd interim | 2.00 | 2.00 | 0.0 |
| -------------- | -------------- | -------------- | |
| Total dividends paid | 4.00 | 4.00 | 0.0 |
| ======== | ======== | ======== |
1 The change in net assets reflects shares issued during the period, dividends paid and market movements.
2 Alternative Performance Measures, see Glossary in the half yearly report and financial statements.
ANNUAL PERFORMANCE SINCE LAUNCH ON 24 OCTOBER 2012 TO 30 APRIL 2020
| NAV | Russell 1000 Value Index | Share Price | |
| 2013# | 17.1 | 27.4 | 16.5 |
| 2014 | 11.8 | 16.9 | 2.4 |
| 2015 | 4.9 | 4.1 | 4.7 |
| 2016 | 34.2 | 34.6 | 43.0 |
| 2017 | 11.4 | 8.3 | 6.3 |
| 2018 | 6.6 | 7.1 | 10.3 |
| 2019 | 8.5 | 9.8 | 15.0 |
| 2020* | -9.9 | -11.4 | -11.7 |
# Since launch on 24 October 2012 to 31 October 2013.
* Performance for six month period ended 30 April 2020.
Sources: BlackRock and Datastream.
Performance figures have been calculated in sterling terms with dividends reinvested.
CHAIRMAN’S STATEMENT FOR THE SIX MONTHS ENDED 30 APRIL 2020
MARKET OVERVIEW
The past six months have proved extremely challenging for stock market investors. Whilst the end of 2019 and start of 2020 were rewarding and saw a combination of high returns and low volatility, in mid-February the outbreak of the COVID-19 pandemic, compounded by an unprecedented slump in the oil price, sent stock markets plummeting. Despite significant fiscal and monetary stimulus, the social distancing and lockdown measures required to combat the virus caused the U.S. economy to contract during the first quarter at its sharpest rate since the end of 2008. Although stock markets rallied in April, high market volatility is expected to remain until there is greater clarity on how long it will take for more accustomed levels of economic activity to resume, which in turn will depend on the extent to which the spread of COVID-19 can be contained.
PERFORMANCE
Against this difficult backdrop, over the six months to 30 April 2020, the Company’s net asset value per share (NAV) returned -9.9% compared with a return of -11.4% in the Russell 1000 Value Index. The Company’s share price returned -11.7% over the same period (all figures in sterling terms with dividends reinvested). Further information on investment performance is given in the Investment Manager’s Report.
Since the period end and up to close of business on 23 June 2020, the Company’s NAV has increased by 6.1% and the share price has fallen by 0.9% (both percentages in sterling with dividends reinvested), reflecting the shares moving to a discount over this period.
EARNINGS AND DIVIDENDS
The Company’s revenue return per share for the six months ended 30 April 2020 amounted to 3.10p compared with 3.06p for the corresponding period in 2019. On 20 March 2020 the Board declared the first quarterly dividend of 2.00p per share which was paid on 29 April 2020. A second quarterly dividend of 2.00p per share has been declared and will be paid on 3 July 2020 to shareholders on the register on 22 May 2020. These are in line with payments made in 2019.
In the latest Annual Report, the Board confirmed that it intended to continue with the established dividend policy of paying 2.00p per share for each quarter of the current financial year, and the Board intends to maintain this policy. One of the strengths of investment trusts over competing fund structures is their ability to draw on revenue and distributable capital reserves to maintain dividend pay-outs in periods of stress. One of the features of our approach is writing covered call options to enhance revenue and recent volatility has meant that the value obtained from writing option premia has increased. The outlook for dividends from the portfolio remains unusually uncertain and the Board will, as in previous years, review the current policy in the first quarter of the Company’s next financial year.
GROWTH IN THE COMPANY’S EQUITY
The Board is committed to growing the Company over time, which should improve liquidity for all shareholders.
Until mid-February, when there were large day-to-day moves in share prices, the Company’s shares continued to enjoy a premium rating with ongoing demand mainly from retail investors. In 2019, the Company ranked seventh overall for annual tap issuances in the investment trust sector relative to market capitalisation.
During the six months to 30 April 2020, the Company’s share price to NAV ranged between a discount of 21.8% and a premium of 3.4% and the Company reissued 2,805,000 ordinary shares from treasury at a premium to NAV. Since the period end and up to the date of this report, no further ordinary shares have been reissued.
OUTLOOK
The global spread of COVID-19 has rocked financial markets and the fall in U.S. stocks has followed a record long bull market and economic expansion. At the beginning of the year ongoing economic growth was the base case expectation but now we are contemplating a deep virus-induced economic downturn of unknown duration. Anecdotal evidence from China is encouraging with factories and stores already reopening, but a premature end to lockdowns could lead to a second wave of infections and delay a recovery.
Tailwinds from monetary and fiscal policy and subsequent stimulus measures should eventually promote stronger economic conditions once the virus threat recedes. We believe the Portfolio Managers’ focus on sustainability and companies with high quality balance sheets is even more important than ever in current conditions.
SIMON MILLER
24 June 2020
INVESTMENT MANAGER’S REPORT
MARKET OVERVIEW
For the six month period ended 30 April 2020, U.S. large-cap stocks, as represented by the S&P 500® Index, declined by 3.2% (in U.S. dollar terms). The path was not a smooth ride and can be seen in three parts: the S&P 500® Index increased by 6.8% during the final two months of 2019 before a sharp sell-off in February and March of 2020, which was followed by a swift rebound in April. Stocks began the year with positive returns, as prices climbed on the heels of upbeat earnings results, improving business sentiment and a Phase 1 U.S./China trade deal. Stock prices reached a peak on 19 February 2020 before beginning a swift reversal on the heels of the global spread of COVID-19. The pandemic prompted countries to adopt varying degrees of social distancing, self-quarantine and lockdown measures. Global economic activity declined at a historically high rate as non-essential businesses were forced to close indefinitely in many countries. Concern over the human and economic toll also fuelled measures from governments and central bankers globally. In summary, this chain of events brought the longest enduring U.S. bull market to a sudden end.
Aggressive and coordinated monetary and fiscal policy measures helped to stabilise U.S. financial markets in the final two weeks of the first quarter. The Federal Reserve (the Fed) twice cut its benchmark interest rate in March to a current range of 0.0% to 0.25% for overnight bank lending. Furthermore, on 23 March 2020 the Fed declared an unlimited balance sheet expansion for the foreseeable future. These actions helped to improve market liquidity across credit markets, as many investors sought to reduce risk levels in their portfolios. Fiscal policy legislation also eased market fears, including the unprecedented U.S.$2 trillion stimulus package announced on 27 March 2020 to support individuals and businesses. This translates to roughly 10% of annual U.S. gross domestic product (i.e. the market value of all final goods and services produced in the country).
PORTFOLIO OVERVIEW
The largest contributor to relative performance was an elevated cash balance, which we have maintained as our preferred method of defensive exposure. Valuations remain stretched among traditional defensive sectors and we have used cash as a buffer against volatile equity markets. In consumer discretionary, stock selection in the multiline retail and household durables industries proved beneficial, as did our underweight to the hotels, restaurants and leisure industry. An underweight to real estate, most notably equity real estate investment trusts (REITs), also benefited relative performance during the period. Lastly, a combination of stock selection and an overweight to information technology boosted relative returns. Most notably, our overweight to the software industry and stock selection among technology hardware, storage and peripherals providers, positively impacted relative performance.
The primary detractor from relative performance was stock selection and allocation decisions in financials. Overweight exposure to banks was particularly harmful given the impact of starkly lower interest rates on portfolio holdings. In consumer staples, an underweight to the household products and food and staple retailing industries also weighed on relative returns. Lastly, stock selection and allocation decisions in health care hurt relative returns, primarily due to our underweight exposure to the biotechnology and life sciences tools and services industries.
As expected, writing covered call options slightly hindered relative performance during the final two months of 2019 amid rising stock prices. Conversely, writing covered call options benefited the portfolio amid dramatically declining U.S. stock prices during February and March of 2020. In summary, the covered call options contributed positively to absolute performance for the six-month period. As designed, the Company’s option overwrite component enhanced the portfolio’s income during the period.
Below is a comprehensive overview of our allocations (in GBP) at the end of the period and overweight/underweight positions compared to the benchmark. At the end of the period, the portfolio’s cash position was 8.2%.
Financials: 2.8% overweight (23.7% of the portfolio)
Financials represent the Company’s largest sector allocation and we remain particularly bullish on the U.S. banks, insurers and insurance brokers. We believe the U.S. banks are safer and sounder investments today than before the financial crisis. They have stronger balance sheets (i.e. higher capital levels), revamped company cost structures and disciplined loan underwriting has contributed to benign credit trends. Bank valuations are compelling relative to other cyclical sectors (i.e. industrials) and potential tailwinds from deregulation and investor-friendly capital return policies also bode well for investors, in our view. A low interest rate environment is harmful to net interest income, but with lower exposure to regional banks, the Company is relatively less exposed to changes in interest rates. With regard to insurers and insurance brokers, we like these companies for their attractive valuations and relatively stable business models. Over the last year, insurers and brokers have benefited from strong pricing power. Pricing power is reflective of low U.S. interest rates, two straight years of larger than expected catastrophe losses, and large institutions (i.e. AIG) taking capacity out of the market.
Health Care: 2.3% overweight (18.2% of the portfolio)
Secular growth opportunities in health care are a by-product of demographic trends. Older populations spend more on health care than younger populations. In the United States, a combination of greater demand for health care services and rising costs drive a need for increased efficiency within the health care ecosystem. We believe innovation and strong cost control can work hand-in-hand to address this need and companies that can contribute in this regard may be poised to benefit.
On the innovation front, there is a need for newer and more effective medicines and therapies. The Food and Drug Administration has made this a priority by increasing the volume and speed of drug approvals, which bodes well for pharmaceutical manufacturers that can deliver new drugs to the market. From an investment standpoint, we prefer pharmaceutical companies with a proven ability to generate high research & development productivity, versus those that focus on one or two key drugs and rely upon raising their prices to drive growth.
From a cost perspective, health maintenance organisations (HMOs) have an economic incentive to drive down costs as they provide health insurance coverage to constituents. The HMOs have demonstrated a strong ability to manage costs by leveraging their scale and technology to drive efficiencies. Governments, in turn, are increasingly outsourcing to HMOs as a way to lower costs and balance their budgets. We prefer HMOs with diversified business units, exposure to faster-growing areas of government including Medicare and Medicaid, and opportunities to enhance their profitability through controlling costs.
Information Technology: 1.7% overweight (8.6% of the portfolio)
In the technology sector, buzzwords such as ‘artificial intelligence’, ‘big data’ and ‘disruption’ are increasingly utilised to describe growth opportunities and the overall operating environment. Of course, a portion of IT still incubates companies similar to the nascent, high-flying and cash-poor innovators that ushered the U.S. equity market into the sharp rise and eventual tumble that is known as the dot-com bubble. However, the fundamental identity of the typical technology company is also changing. An increasing number of constituents in the IT sector are what we refer to as ‘industrial tech’. These firms are competitively insulated from disruptors, well-positioned to take advantage of long-term secular tailwinds and exhibit growth in earnings and free cash flow. A swelling number of companies in the sector have also adopted dividend payments to shareholders as a viable use of cash, rejecting the notion that IT firms can only add value to investors via their growth potential. We believe this trend is poised to continue, as many mature IT companies are flush with cash and shareholders are increasingly willing to reward management teams for return of capital.
Energy: 1.7% overweight (8.1% of the portfolio)
The portfolio maintains a modest overweight to the energy sector. We favour oil-weighted companies over those levered to natural gas and prefer exposure to large-cap integrated oil and independent oil & gas producers. From a quality standpoint we seek to own companies with experienced management teams, disciplined capex spending plans and exposure to lower cost resource assets. From a valuation standpoint we seek to own companies with free cash flow generation and margin capture stories that are underappreciated by the street. In summary, we believe companies with strong balance sheets and cash flows, production growth visibility, operating specialisation and pricing power at the industry level remain most desirable from an investment perspective.
Communication Services: 1.2% underweight (7.1% of the portfolio)
We are underweight to communication services and our allocation remains concentrated in diversified telecommunication bellwether Verizon Communications (4.7% of the portfolio). Our stock-specific exposure in the sector is to companies that offer healthy dividend yields and opportunity for steady, longer-term growth.
Consumer Staples: 1.3% underweight (8.9% of the portfolio)
The consumer staples sector is a common destination for the conservative equity income investor. Historically, many of these companies have offered investors recognisable brands, diverse revenue streams, exposure to growing end markets and the ability to garner pricing power. These characteristics, in turn, have translated into strong and often stable free cash flow and growing dividends for shareholders. In recent years some of these secular advantages have become challenged, in our view, due to changing consumer preferences, greater end market competition from local brands and disruption from the rapid adoption of online shopping. These challenges, combined with higher than historical valuations, have facilitated our more neutral stance in the sector. Notably, we prefer ownership of companies with underappreciated growth profiles (i.e. buy growth), sticky customer bases and the ability to cut costs and/or improve profit margins.
Consumer Discretionary: 1.4% underweight (4.2% of the portfolio)
We continue to maintain a degree of caution in consumer discretionary, as investors are sensitive to disruption and how new business models and technology can displace incumbent operators. We believe these disruptive forces are best avoided through identifying stock-specific investment opportunities that (1) are trading at discounted valuations or (2) are somewhat insulated from these disruptive pressures. For example, we believe companies such as General Motors (autos) and Newell Brands (household durables) offer investors exposure to underappreciated franchises at discounted valuations. Furthermore, retailers such as Dollar General (dollar store) and Lowe's Companies (home improvement) provide us with exposure to companies that can compound earnings and are more immune to disruptive forces.
Industrials: 2.4% underweight (6.8% of the portfolio)
We are underweight to the industrials sector. Our selectivity is driven by relative valuations, which we view as expensive, in many cases, versus other cyclical segments of the U.S. equity market. We continue to maintain exposure to the aerospace & defence industry. From a fundamental and operating model standpoint, we continue to like the profiles of the large-cap aerospace & defence firms. Many of these companies have strong balance sheets, good visibility into sales and earnings and historically have demonstrated shareholder friendly capital return policies.
Materials: 2.6% underweight (1.7% of the portfolio)
Broadly speaking, we have found more attractive opportunities from which to source our portfolio’s cyclical exposure. Our exposure to the materials sector consists of two chemicals stocks – Corteva and DuPont De Nemours. Longer-term secular trends in global population growth can potentially benefit well-positioned companies in the agricultural chemical space.
Utilities: 2.7% underweight (4.5% of the portfolio)
Strong investor demand for equity income in recent years has resulted in elevated valuations for many high dividend yielding stocks, including utilities companies. Despite rich valuations at the sector level, we are finding pockets of opportunity in U.S. regulated utilities such as Public Service Enterprise Group (PEG), FirstEnergy (FE), Edison International (EIX), and NiSource (NI). PEG, EIX, and NI add a level of stability and defensiveness to the portfolio through their durable dividend profiles and healthy earnings growth potential. Alternatively, FE offers us exposure to a company with a good underlying regulated franchise with some near-term uncertainties (i.e. merchant business bankruptcy). This uncertainty, in our view, creates opportunity for patient long-term investors that are willing and capable of doing deep analysis on complex investment issues.
Real Estate: 5.0% underweight (0.0% of the portfolio)
The real estate sector is our largest underweight position in the strategy. We maintain a 0% weighting in the sector due to our view that valuations are unattractive at current levels.
POSITIONING AND OUTLOOK
Our 2020 base case was for slow but positive U.S. economic growth and for U.S. stocks to grind higher on the back of a strong U.S. consumer and supportive monetary and fiscal policy. Stocks have tumbled amid the current global health crisis, a tail risk no one could have predicted a few short months ago. Volatility never feels good, but the foundation underlying it is important. Daily market moves in response to the COVID-19 outbreak have matched the scale of those seen during the global financial crisis. But this is not 2008. The COVID-19 shock is not one caused by a crisis in the core of the financial system and for this reason the U.S. economy is on a much stronger footing to endure the current economic disruption.
Make no mistake, the economic and earnings impact from the crisis are real. Trading volatility is likely to persist as investors recalibrate expectations for corporate earnings and global supply chains. However, our long-term conviction in U.S. stocks remains steadfast. It bears reminding that the value of a company is the net present value of its future cash flows. We expect earnings to be hard hit in 2020, but ultimately see COVID-19 as a transitory event. One or two quarters of lost earnings, although painful, should not materially change the long-term earnings power of our portfolio holdings.
Importantly, we are encouraged by the swiftness, magnitude and coordination of monetary and fiscal policy deployment. These efforts have helped to stabilise financial markets while governments pursue coronavirus containment measures. We are watching closely for visibility into the effectiveness of these containment efforts. The gradual reopening of economies is an important upcoming litmus test, with a second wave of infections a key outstanding risk to our market outlook.
TONY DESPIRITO, FRANCO TAPIA and DAVID ZHAO
BlackRock Investment Management LLC
24 June 2020
TEN LARGEST INVESTMENTS AS AT 30 APRIL 2020
1
=
Verizon Communications (2019: 1st)
Communication Services
Market value: £5,623,000
Share of investments: 4.7% (2019: 4.5%)
One of the largest providers of wireline and wireless communications in the U.S., where 48 million access lines represent approximately one-third of market share. The company’s wireless customer base is very sizable and continues to grow. Verizon remains in a strong financial position and exhibits a sustainable dividend yield above 4%. Going forward, we expect continued expansion in wireless, long distance and high-speed services to drive company growth.
2
+
Bank of America (2019: 5th)
Financials
Market value: £4,448,000
Share of investments: 3.7% (2019: 3.0%)
One of the largest financial institutions in the U.S. with lending operations in the consumer, small-business and corporate markets, in addition to asset management and investment banking divisions. Bank of America has delivered consistent results over the last year, with particular strength within their consumer bank division.
3
+
Citigroup (2019: 4th)
Financials
Market value: £4,022,000
Share of investments: 3.4% (2019: 3.6%)
A U.S. based money center bank with a global footprint. We believe Citigroup is attractively valued on both a price-to-earnings and book value basis, has self-help opportunities within its consumer banking segment and offers the potential for dividend growth.
4
+
Sanofi (2019: 60th)
Health Care
Market value: £3,197,000
Share of investments: 2.7% (2019: 0.5%)
Sanofi checks a lot of boxes that we look for in a pharmaceuticals investment – a company with a strong commercial business and an under-appreciated pipeline that is not reflected in the current valuation. Additionally, Sanofi is under-earning its potential and a new CEO with turn-around experience has begun to demonstrate a path to margin improvement. Low exposure to U.S. drug pricing regulatory risk is also attractive and the company is a potential sum-of-the-parts story as several of the company’s businesses including Vaccines and Consumer Health should trade at much higher multiples.
5
+
Anthem (2019: 11th)
Health Care
Market value: £3,117,000
Share of investments: 2.6% (2019: 2.0%)
Anthem is a leading company in a high quality, stable U.S. managed care space whose relatively new CEO is taking the initiative to leverage the company’s market position and accelerate top and bottom-line growth. These initiatives include insourcing their Pharmacy Benefit Managers, expanding their Medicare offerings and leveraging their brand to offer ancillary products (dental benefits, Administrative Services Only arrangements, etc). Furthermore, at 10x 2021 price-to-earnings, Anthem trades near the low end of the group, despite having the highest projected earnings per share growth going forward.
6 = Medtronic (2019: 6th)
Health Care
Market value: £3,071,000
Share of investments: 2.6% (2019: 2.7%)
One of the world’s largest medical device companies. The firm generates the majority of its sales and profits from the United States but is headquartered in the Republic of Ireland. The company offers an attractive innovation pipeline in its cardiovascular, diabetes and robotics businesses. We believe that Medtronic should be able to reliably grow revenue and earnings in a meaningful way going forward, leading to multiple expansion relative to peers.
7
-
Wells Fargo (2019: 3rd)
Financials
Market value: £2,904,000
Share of investments: 2.4% (2019: 3.9%)
A U.S. bank which operates in three segments including community banking, wholesale banking and wealth & investment management. Wells Fargo has a strong deposit franchise and we are encouraged by the company’s history of strong investment returns and prudent credit risk management. In our view, shares of the company are underappreciated today in an environment characterised by low credit losses and ample access to liquidity.
8
+
Koninklijke Philips (2019: 9th)
Health Care
Market value: £2,777,000
Share of investments: 2.3% (2019: 2.1%)
The company trades at a deep discount to its medical technology peers despite offering better growth. The company is transforming into a pure-play health care company that, in our view, deserves a higher multiple. Philips is also meaningfully under-earning, with current margins that are well below management’s targets and those of its peers, indicating upside to profitability.
9
+
Unilever (2019: 30th)
Consumer Staples
Market value: £2,725,000
Share of investments: 2.3% (2019: 1.3%)
Unilever has a strong portfolio of home and personal care brands and favourable exposure to emerging markets. Recent sales performance has disappointed, driving a relative derating. While margin may need to be rebased, that seems fully baked into expectations, trading at 19x 2020 price-to-earnings, a 20% discount to global staples peers. At this price, we believe there is optionality on a) better execution; b) macro improvement; c) disposals; and d) perhaps activist involvement.
10
+
FirstEnergy (2019: 21st)
Utilities
Market value: £2,682,000
Share of investments: 2.2% (2019: 1.7%)
FirstEnergy is an integrated utility that services U.S. customers primarily in the Northeast and Midwest. Our investment thesis is predicated on valuation, as we believe the stock trades at a discount on a sum-of-the-parts basis. Additionally, we believe the company has manageable equity needs and offers investors steady 4% to 6% EPS growth annually.
Market value amounts include the liability for written covered call options.
All percentages reflect the value of the holding as a percentage of total investments. Percentages in brackets represent the value of the holding as at 31 October 2019.
Together, the ten largest investments represent 28.9% of the Company’s portfolio (31 October 2019: 30.5%).
PORTFOLIO ANALYSIS AS AT 30 APRIL 2020
|
Sectors |
% Canada |
% Denmark |
% France |
% Germany |
% Ireland |
% Japan |
% Netherlands |
% Norway |
% Switzerland |
% United Kingdom |
% United States |
% Cash |
% Total 30.04.20 |
% Total 31.10.19 |
| Financials | – | – | – | – | – | – | – | – | – | – | 23.7 | – | 23.7 | 24.6 |
| Health Care | – | – | 2.4 | 1.8 | 2.4 | – | 2.1 | – | 0.9 | 1.7 | 6.9 | – | 18.2 | 16.6 |
| Consumer Staples | – | – | – | 1.0 | – | – | 2.1 | – | 1.1 | 0.2 | 4.5 | – | 8.9 | 6.9 |
| Information Technology | 0.2 | – | – | – | – | – | 0.5 | – | – | – | 7.9 | – | 8.6 | 8.6 |
| Energy | – | – | 0.4 | – | – | – | – | 0.5 | – | 1.3 | 5.9 | – | 8.1 | 9.2 |
| Communication Services | – | – | – | – | – | – | – | – | – | – | 7.1 | – | 7.1 | 6.6 |
| Industrials | – | – | – | 1.0 | – | – | – | – | – | 2.5 | 3.3 | – | 6.8 | 8.0 |
| Utilities | – | – | – | – | – | – | – | – | – | – | 4.5 | – | 4.5 | 2.4 |
| Consumer Discretionary | – | – | – | – | – | – | – | – | – | – | 4.2 | – | 4.2 | 6.1 |
| Materials | – | – | – | – | – | – | – | – | – | – | 1.7 | – | 1.7 | 1.8 |
| Cash | – | – | – | – | – | – | – | – | – | – | – | 8.2 | 8.2 | 9.2 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| % Portfolio 30.04.20 | 0.2 | – | 2.8 | 3.8 | 2.4 | – | 4.7 | 0.5 | 2.0 | 5.7 | 69.7 | 8.2 | 100.0 | |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| % Portfolio 31.10.19 | 0.6 | 0.3 | 1.1 | 2.6 | 2.8 | 1.6 | 3.5 | 0.3 | 1.8 | 6.3 | 69.9 | 9.2 | 100.0 | |
| ======== | ======== | ======== | ======== | ======== | ======== | ======== | ======== | ======== | ======== | ======== | ======== | ======== | ======== |
I NVESTMENTS AS AT 30 APRIL 2020
|
Company |
Country |
Sector |
Securities |
Market value £000 |
|
% of total portfolio |
| Verizon Communications | United States | Communication | Ordinary shares | 5,649 | } | 4.7 |
| Services | Options | (26) | ||||
| Bank of America | United States | Financials | Ordinary shares | 4,501 | } | 3.7 |
| Options | (53) | |||||
| Citigroup | United States | Financials | Ordinary shares | 4,022 | 3.4 | |
| Sanofi | France | Health Care | Ordinary shares | 3,197 | 2.7 | |
| Anthem | United States | Health Care | Ordinary shares | 3,117 | 2.6 | |
| Medtronic | Ireland | Health Care | Ordinary shares | 3,077 | } | 2.6 |
| Options | (6) | |||||
| Wells Fargo | United States | Financials | Ordinary shares | 2,904 | 2.4 | |
| Koninklijke Philips | Netherlands | Health Care | Ordinary shares | 2,777 | 2.3 | |
| Unilever | Netherlands | Consumer | Ordinary shares | 2,729 | } | 2.3 |
| Staples | Options | (4) | ||||
| FirstEnergy | United States | Utilities | Ordinary shares | 2,691 | } | 2.2 |
| Options | (9) | |||||
| Cognizant Technology Solutions | United States | Information | Ordinary shares | 2,683 | } | 2.2 |
| Technology | Options | (32) | ||||
| Williams | United States | Energy | Ordinary shares | 2,623 | } | 2.1 |
| Options | (59) | |||||
| Comcast | United States | Communication | Ordinary shares | 2,546 | } | 2.1 |
| Services | Options | (8) | ||||
| Altria | United States | Consumer | Ordinary shares | 2,522 | } | 2.1 |
| Staples | Options | (10) | ||||
| Constellation Brands | United States | Consumer | Ordinary shares | 2,474 | } | 2.0 |
| Staples | Options | (52) | ||||
| Bayer | Germany | Health Care | Ordinary shares | 2,287 | 1.9 | |
| JPMorgan Chase | United States | Financials | Ordinary shares | 2,234 | } | 1.9 |
| Options | (9) | |||||
| American International | United States | Financials | Ordinary shares | 2,249 | } | 1.9 |
| Options | (27) | |||||
| AstraZeneca | United Kingdom | Health Care | Ordinary shares | 2,230 | } | 1.8 |
| Options | (76) | |||||
| Morgan Stanley | United States | Financials | Ordinary shares | 2,047 | } | 1.7 |
| Options | (19) | |||||
| Microsoft | United States | Information | Ordinary shares | 2,077 | } | 1.7 |
| Technology | Options | (50) | ||||
| CVS Health | United States | Health Care | Ordinary shares | 1,976 | 1.6 | |
| BAE Systems | United Kingdom | Industrials | Ordinary shares | 1,838 | } | 1.5 |
| Options | (8) | |||||
| Willis Towers Watson | United States | Financials | Ordinary shares | 1,824 | } | 1.5 |
| Options | (5) | |||||
| Public Service Enterprise Group | United States | Utilities | Ordinary shares | 1,793 | } | 1.5 |
| Options | (19) | |||||
| BP | United Kingdom | Energy | Ordinary shares | 1,802 | } | 1.5 |
| Options | (55) | |||||
| MetLife | United States | Financials | Ordinary shares | 1,776 | } | 1.5 |
| Options | (31) | |||||
| General Electric | United States | Industrials | Ordinary shares | 1,744 | } | 1.4 |
| Options | (10) | |||||
| Schwab (Charles) | United States | Financials | Ordinary shares | 1,703 | } | 1.4 |
| Options | (14) | |||||
| Samsung Electronics | United States | Information | Ordinary shares | 1,631 | 1.4 | |
| Technology | ||||||
| Lowe’s Companies | United States | Consumer | Ordinary shares | 1,659 | } | 1.4 |
| Discretionary | Options | (29) | ||||
| UnitedHealth Group | United States | Health Care | Ordinary shares | 1,670 | } | 1.4 |
| Options | (41) | |||||
| General Motors | United States | Consumer | Ordinary shares | 1,531 | 1.3 | |
| Discretionary | ||||||
| Visa | United States | Information | Ordinary shares | 1,537 | } | 1.3 |
| Technology | Options | (8) | ||||
| Raymond James | United States | Financials | Ordinary shares | 1,500 | } | 1.2 |
| Options | (11) | |||||
| Dollar General | United States | Consumer | Ordinary shares | 1,476 | } | 1.2 |
| Discretionary | Options | (3) | ||||
| DuPont De Nemours | United States | Materials | Ordinary shares | 1,470 | } | 1.2 |
| Options | (48) | |||||
| Nestlé | Switzerland | Consumer | Ordinary shares | 1,401 | } | 1.2 |
| Staples | Options | (4) | ||||
| Siemens | Germany | Industrials | Ordinary shares | 1,366 | } | 1.1 |
| Options | (28) | |||||
| Berkshire Hathaway | United States | Financials | Ordinary shares | 1,324 | } | 1.1 |
| Options | (5) | |||||
| Marathon Petroleum | United States | Energy | Ordinary shares | 1,310 | 1.1 | |
| Arthur J.Gallagher & Co | United States | Financials | Ordinary shares | 1,306 | } | 1.1 |
| Options | (3) | |||||
| Cisco Systems | United States | Information | Ordinary shares | 1,315 | } | 1.1 |
| Technology | Options | (14) | ||||
| Henkel | Germany | Consumer | Ordinary shares | 1,309 | } | 1.1 |
| Staples | Options | (13) | ||||
| Fox Corp | United States | Communication | Ordinary shares | 1,214 | } | 1.0 |
| Services | Options | (8) | ||||
| Ferguson | United Kingdom | Industrials | Ordinary shares | 1,203 | } | 1.0 |
| Options | (17) | |||||
| Union Pacific | United States | Industrials | Ordinary shares | 1,252 | } | 1.0 |
| Options | (80) | |||||
| Alcon | Switzerland | Health Care | Ordinary shares | 1,158 | } | 1.0 |
| Options | (4) | |||||
| ConocoPhillips | United States | Energy | Ordinary shares | 1,135 | } | 0.9 |
| Options | (39) | |||||
| Edison International | United States | Utilities | Ordinary shares | 1,089 | } | 0.9 |
| Options | (6) | |||||
| Pfizer | United States | Health Care | Ordinary shares | 1,064 | } | 0.9 |
| Options | (11) | |||||
| McKesson | United States | Health Care | Ordinary shares | 1,033 | 0.9 |
