Portfolio Update

BLACKROCK NORTH AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 October 2020 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	-2.3%	-0.8%	1.2%	-8.8%	5.5%	57.7%
Share price	-3.0%	-5.6%	-7.0%	-17.9%	4.1%	58.2%
Russell 1000 Value Index	-1.3%	1.8%	4.4%	-7.5%	8.8%	58.5%

Source: BlackRock

At month end
Net asset value – capital only:	156.68p
Net asset value – cum income:	158.09p
Share price:	145.50p
Discount to cum income NAV:	8.0%
Net yield¹:	5.5%
Total assets including current year revenue:	£126.4m
Gearing:	Nil
Options overwrite:	18.2%
Ordinary shares in issue²:	79,974,044
Ongoing charges³:	1.1%

¹ Based on four quarterly interim dividends of 2.00p per share declared on 7 November 2019 for the year ended 31 October 2019 and 20 March 2020, 5 May 2020 and 6 August 2020 for the year ended 31 October 2020, and based on the share price as at close of business on 31 October 2020.

² Excluding 20,387,261 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 2019.

Benchmark Sector Analysis	Total Assets (%)
Financials	24.8
Health Care	16.9
Information Technology	11.8
Consumer Staples	9.3
Communication Services	7.1
Energy	6.6
Industrials	6.4
Consumer Discretionary	5.1
Utilities	4.1
Materials	2.2
Net current assets	5.7
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	100.0
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Country Analysis	Total Assets (%)
United States	74.0
Netherlands	5.0
United Kingdom	4.2
Germany	3.7
France	2.3
Ireland	2.2
Switzerland	1.7
Norway	0.8
Canada	0.4
Net current assets	5.7
	-----
	100.0
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Ten Largest Investments
Company	Country of Risk	Total Assets (%)
Verizon Communications	USA	3.8
Bank of America	USA	3.0
Citigroup	USA	2.7
Cognizant Technology Solutions	USA	2.4
Anthem	USA	2.3
American International Group	USA	2.3
Comcast Corporation	USA	2.3
Samsung Electronics	USA	2.3
Wells Fargo	USA	2.2
Medtronic	Ireland	2.2

Tony DeSpirito, Franco Tapia and David Zhao, representing the Investment Manager, noted:

For the one-month period ended 31 October 2020, the Company’s NAV decreased by 2.3% and the share price by 3.0% (all in sterling). The Company’s benchmark, the Russell 1000 Value Index, returned -1.3% for the period.

The largest contributor to relative performance was stock selection in the information technology sector. Notably, selection decisions in the semiconductors & semiconductor equipment and information technology services industries proved beneficial. In materials, stock selection in the chemicals industry boosted relative performance. Other modest contributors during the month included stock selection in consumer discretionary and the portfolio’s cash allocation.

The largest detractor from relative performance was stock selection in the health care sector. Notably, selection decisions in the pharmaceuticals industry proved costly during the month. In consumer staples, stock selection and an overweight exposure to the beverages and tobacco industries weighed on relative results, as did stock selection in personal products and household products. Other notable detractors included stock selection in the industrials and communication services sectors.

The portfolio’s option overwriting strategy contributed to relative performance during the month.

Transactions/Options

Transactions: In October, the portfolio initiated new positions in Zimmer Biomet, Exelon, Philip Morris International, British American Tobacco and First American Financial. Allocations to Citigroup, ConocoPhillips and American International Group were also increased during the month. Conversely, we exited our position in BP and reduced our exposure to Wells Fargo, Altria, BAE Systems, Medtronic and Verizon.

Options:  As of 31 October 2020, the Company’s options exposure was 18.2% and the delta of the options was 89.9.

Positioning

As of the period end, the Company’s largest overweight positions relative to the benchmark were in the financials, energy and health care sectors. The Company’s largest underweight positions relative to the benchmark were in the industrials, real estate and materials sectors.

Source: BlackRock. Data as of 31 October 2020.

19 November 2020

Latest information is available by typing blackrock.com/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.