Half-yearly Report

BlackRock North American Income Trust plc

Investment objective

The Company’s objective is to provide an attractive and growing level of income return with capital appreciation over the long term, predominantly through investment in a diversified portfolio of primarily large-cap U.S. equities.

Performance record

Financial Highlights

Attributable to ordinary shareholders	30  April  2015	31  October  2014	Change
Assets
Net assets (£’000)1	100,831	121,199	-16.8
Net asset value per ordinary share	125.59p	120.76p	+4.0
– with income reinvested			+5.7
Ordinary share price (mid-market)	117.50p	112.00p	+4.9
– with income reinvested			+6.7
	========	========	========

	For  the  six  months  ended  30  April  2015	For  the  six  months  ended  30  April  2014	Change
Revenue
Net profit after taxation (£’000)	2,066	2,113	-2.2
Earnings per ordinary share	2.27p	2.11p	+7.6
	========	========	========
1The change in net assets reflects market movements and the implementation of the tender offer in the period.

Chairman’s statement

for the six months to 30 April 2015

Overview

Economic data provided a mixed and sometimes conflicting picture of the state of the U.S. economy over the six months under review. During the fourth quarter of 2014, steady growth in employment, a moderate housing recovery and rising capital expenditure all pointed towards a sustainable recovery. A rise in household wealth, helped by continuing low interest rates and falling energy prices, also bode well for consumer spending and U.S. major indices pushed ahead strongly. However, the unusually harsh winter weather, a strong U.S. dollar and a slowdown in exports meant that the U.S. economy grew well below forecasts in the first three months of 2015. The steep rally in the dollar came to a halt in late March, driven by weaker economic data and a more dovish U.S. central bank, although policymakers have suggested that recent economic weakness has been caused in part by transitory factors; employment figures have for the most part remained strong.

Performance

In the six months to 30 April 2015, the Company’s net asset value (‘NAV’) returned +5.7% compared with a return of +7.1% in the Russell 1000 Value Index. Although the gap between the portfolio and the Index narrowed, the market background remained unfavourable for our Portfolio Manager’s investment approach, which is to focus on companies capable of generating dividend growth and not those with a high initial yield. Your Board is conscious that performance relative to the Index has been disappointing and has stressed to the Manager the importance of seeking an improvement in this area. The Company’s share price returned +6.7% over the same period (all figures in sterling terms with income reinvested). Further information on investment performance is given in the Investment Manager’s Report.

Since the period end, the Company’s NAV has increased by 0.3% and the share price has fallen by 2.9% (in sterling with income reinvested).

Earnings and dividends

The Company’s revenue return per share for the six months ended 30 April 2015 amounted to 2.27p compared with 2.11p per share for the corresponding period last year. The first quarterly dividend of 1.00p per share was paid on 7 April 2015. A second quarterly interim dividend of 1.10p per share will be paid on 1 July 2015 to shareholders on the register on 22 May 2015. This represents an increase of 10% on the first quarterly dividend and it is the Board’s current intention to maintain this quarterly pay-out.

Tender offers

The Directors exercised their discretion to operate the half yearly tender offer with a calculation date of 2 February 2015, being the succeeding business day to 31 January 2015, for up to 20% of the shares in issue at the prevailing NAV less 2%. The tender offer was oversubscribed with 26,792,753 shares being tendered at a price of 123.24p per share. Shareholders who tendered had their basic entitlement satisfied in full and their election for further shares was scaled-back pro rata with each shareholder receiving 61.3269% of their election for further shares. All shares tendered were repurchased by the Company and placed in treasury.

On 6 May 2015, the Directors announced that they had decided not to implement a semi-annual tender offer in July 2015. Following shareholder consultation, the Board concluded that a tender was not in the interests of shareholders as a whole or the Company as the tender process results in the Company shrinking in size with the resultant negative impact on liquidity and ongoing charges. The Board will continue to monitor the Company’s discount to NAV and use its buy back authority when appropriate, with the objective of ensuring that the Company’s shares do not trade at a significant discount to their NAV.

Outlook

The recent first quarter U.S. economic growth figures were weaker than expected but most commentators have concluded that these represented a temporary weakening of the economy. In recent years first quarter growth has often disappointed only to rebound later in the year. The unemployment rate has also dropped to a pre-crisis low. Fiscal challenges are also abating and even if, as is widely expected, the Federal Reserve start tightening in 2015, monetary policy should remain highly accommodative. The timing and pace of any rises will remain dependent on the economic data.

The Investment Manager continues to position the portfolio in companies that are well managed, soundly financed and which have the capacity to grow their dividends. Although higher interest rates may induce greater market volatility, if the background for rising rates is an improving economy, markets have historically been able to continue to make progress. Our expectation is that we will now witness greater differentiation between the performance of individual shares within sectors and this will provide an environment which will reward active stock picking.

Simon Miller
11 June 2015

Interim management report and responsibility statement

The Chairman’s Statement and the Investment Manager’s Report give details of the important events which have occurred during the period and their impact on the financial statements.

Principal risks and uncertainties

The principal risks faced by the Company can be divided into various areas as follows:

• Performance;
• Income/dividend;
• Regulatory;
• Operational;
• Market;
• Financial; and
• Gearing.

The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended 31 October 2014. A detailed explanation can be found in the Strategic Report on pages 6 and 7 and in note 14 on pages 49 to 57 of the Annual Report and Financial Statements which are available on the website maintained by BlackRock at blackrock.co.uk/brna.

In the view of the Board, there have not been any changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.

Going concern

The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective and the Company’s projected income and expenditure, are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound. For this reason, they continue to adopt the going concern basis in preparing the financial statements. The Company has a portfolio of investments which are considered to be readily realisable and is able to meet all of its liabilities from its assets and income generated from these assets. Ongoing charges (excluding interest costs and taxation) are approximately 1.3% of net assets.

Related party disclosure and transactions with the AIFM and Investment Manager

BlackRock Fund Managers Limited (‘BFM’) was appointed as the Company’s AIFM with effect from 2 July 2014. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (‘BIM (UK)’). Both BFM and BIM (UK) are regarded as related parties under the Listing Rules. Details of the management and marketing fees payable are set out in note 3 and note 10. Fees payable to Directors and their interests in the ordinary shares of the Company are set out in note 9.

Directors’ responsibility statement

The Disclosure and Transparency Rules (‘DTR’) of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements.

The Directors confirm to the best of their knowledge that:

• the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with applicable UK Accounting Standards and the Accounting Standards Board’s Statement ‘Half Yearly Financial Reports’; and
• 
  
• the Interim Management Report, together with the Chairman’s Statement and Investment Manager’s Report, include a fair review of the information required by 4.2.7R and 4.2.8R of the FCA’s Disclosure and Transparency Rules.

This half yearly financial report has not been audited or reviewed by the Company’s auditors.

The half yearly financial report was approved by the Board on 11 June 2015 and the above responsibility statement was signed on its behalf by the Chairman.

Simon Miller
For and on behalf of the Board
11 June 2015

Investment manager’s report

Market overview

For the six month period ended 30 April 2015, U.S. large-cap stocks, as represented by the S&P 500^® Index, advanced by 4.4% (in U.S. dollar terms).

U.S. equities benefited from a strengthening domestic economy in the fourth quarter of 2014, although market volatility increased as investors considered slowing growth in other parts of the world, the impending tightening of U.S. monetary conditions and rising political turmoil globally. In the first four months of 2015, divergent monetary policies dominated media headlines as quantitative easing measures in Europe and Japan stood in contrast to the Federal Reserve, setting the stage for higher interest rates in the U.S. This dynamic created volatile conditions in the currency markets and exerted upward pressure on the U.S. dollar. Economic data in the U.S. generally softened to start the year; however, employment gains and robust merger and acquisition activity were strong enough to overcome negative revisions to earnings expectations. Overall, we remain mindful of current equity valuations and inflation, as well as the potential impact of currency markets and lower oil prices on global capital flows and investment.

Portfolio overview

The largest detractor from relative performance during the past six months was stock selection in financials. Notably, selection in the insurance industry proved to be costly as portfolio holdings Prudential and MetLife lagged relative to benchmark peers. We view falling U.S. interest rates during the period as a short term headwind and remain overweight to both companies given their current valuations, underlying fundamentals and ability to return capital to shareholders. Other notable detractors in financials include our ownership of non-benchmark holding American Express, which underperformed following the loss of its partnership with Costco and JetBlue, and non-benchmark holding Toronto-Dominion Bank. A combination of stock selection and an underweight in health care also dragged on relative performance. Our underweight position to the managed care industry hurt relative returns as benchmark peers, including Cigna and Aetna, outperformed. The Company is now modestly overweight the managed care industry after initiating positions in UnitedHealth Group and Anthem in January 2015. Lastly, stock selection in the information technology and consumer discretionary sectors also had a negative impact on relative performance for the six month period.

A combination of stock selection and a general underweight position to the energy sector was the largest contributor to relative returns. WTI crude oil prices declined by over 41% from peak to trough during the period, before rebounding to -25% by April month-end. Notable stock level contributors include our underweight to Exxon Mobil and overweight to refiner Marathon Petroleum. Stock selection in utilities also added to relative performance for the period, as a timely exit from Duke Energy in January proved to be beneficial. We eliminated our position in Duke due to its valuation and concerns related to potential delays in asset sales. Other notable contributors to performance for the period include non-benchmark holding Kraft, which benefited from the news that 3G Capital will acquire the company and merge it with H.J. Heinz, and Kroger Co., which exceeded earnings estimates on strong same-store sales growth and solid market share gains.

Below is a comprehensive overview of our allocations at the end of the period.

Industrials: 4.9% overweight (15.2% of portfolio)

The Company’s overweight position to industrials is driven primarily by our preference for aerospace and defence stocks due to their strong free cash flows, healthy balance sheets, attractive valuations and dividend growth potential. These stocks may also benefit from a potential increase in defence spending, both domestically and internationally, in the light of rising geopolitical concerns. We also maintain exposure to industrial conglomerates given their diverse revenue streams, stable growth profiles and healthy dividends.

Materials: 1.8% overweight (4.9% of portfolio)

We believe that infrastructure development and spending will continue to be a critical part of the investment landscape, both in the U.S. and abroad. We also believe that companies with higher quality, diverse assets in locations close to developing markets will be able to reap the benefits of high barriers to entry within local industries and deliver stronger growth.

Consumer Discretionary: 1.1% overweight (7.7% of portfolio)

The balance sheet for U.S. consumers is improving, aided by a recovering domestic housing market, recent robust equity returns and stronger jobs growth. These factors have generated an increase in consumer confidence. Although an improved consumer balance sheet is a positive for the economy and for consumer-related spending, the Company’s modest overweight position in the consumer discretionary sector is more a reflection of stock-specific factors. The Company’s largest active weights in the sector include Comcast (2.7% of portfolio) and Home Depot (2.5% of portfolio).

Telecommunication Services: 0.4% overweight (2.6% of portfolio)

Within telecoms, our allocation is concentrated in industry bellwether Verizon Communications, given the firm’s ability to manage competitive pressures and deliver revenue growth. Wireless operations continue to drive revenues across the sector and the proliferation of data-heavy smartphones should help certain companies in the sector strengthen margins. Service bundling has led to stickier consumers, better earnings visibility and less customer churn, all of which are positives for the industry. Overall, this sector offers attractive dividend yields and opportunity for steady, longer term growth.

Consumer Staples: 0.4% underweight (6.7% of portfolio)

The Company has traditionally maintained an overweight position in consumer staples due to the sector’s recurring purchase theme, solid brand leadership, stable earnings and dividend growth potential. Although these characteristics remain long term positives, we have selectively reduced our exposure to the sector in recent quarters due to concerns about valuations and the potential for slowing earnings and dividend growth in the near term.

Health Care: 0.6% underweight (13.8% of portfolio)

Our traditional underweight in health care has been driven, at least in part, by our wariness of the longer term growth prospects of the health care services sector. We are encouraged by changes shaped by the Affordable Care Act, especially as it relates to managed-care providers, and recently initiated positions in providers UnitedHealth Group (1.8% of portfolio) and Anthem (0.8% of portfolio) as a result. Additionally, we continue to focus our efforts on opportunities in the pharmaceutical industry, especially in companies with healthy balance sheets, strong drug pipelines and multiple potential drivers of future growth.

Information Technology: 0.7% underweight (8.6% of portfolio)

We have gradually increased our exposure to information technology in recent months, with a preference for large-cap, mature companies with the ability to return capital to shareholders. We believe that valuations remain attractive and companies such as Microsoft (2.7% of portfolio), Intel (1.9% of portfolio), and Qualcomm (1.3% of portfolio) offer a compelling mix of healthy balance sheets, strong free cash flow generation and growing dividend streams.

Utilities: 0.8% underweight (5.3% of portfolio)

Our exposure to utilities has been dominated primarily by regulated names, given their durable dividend profiles and resilience in slow growth environments. From a fundamental standpoint, we believe that the sector is increasingly bifurcated in terms of the differences between strong and weak companies. As such, we are focused on owning firms with clear plans for future growth that are trading at attractive valuations. We also prefer to invest in firms that are not entirely dependent on demand and are in a unique position to focus on strategic capital expenditures. We believe that these factors will be increasingly important given slowing demand and declining electricity usage rates across the industry.

Energy: 1.7% underweight (9.7% of portfolio)

Despite the recent sharp decline in crude oil prices, we believe that many of the long term fundamentals for the energy sector remain positive. We favour oil-weighted companies over those levered to natural gas. We especially prefer large-cap integrated oil and independent oil & gas producers due to their valuations, diverse revenue streams and balance sheet strength. At the industry level, strong competitive positioning, operating specialization and pricing power remain most desirable from an investment perspective.

Financials: 4.0% underweight (25.5% of portfolio)

While underweight relative to the benchmark index, financials are the Company’s largest sector allocation on an absolute basis and we maintain a high level of conviction in the sector. We are particularly bullish on large-cap U.S. banks and capital markets stocks given their improved balance sheets, low credit losses, high capital levels and attractive valuations. Notably, we are encouraged by the Fed’s March 2015 stress tests results and believe there is potential upside to earnings if the U.S. Federal Reserve raises interest rates.

Positioning and outlook

We have positioned the portfolio to take advantage of the maturing U.S. business cycle and the higher interest rate environment that we see unfolding over time. Towards that end we have increased our exposure to financials, health care, industrials and information technology in recent quarters on the basis of attractive valuations and greater potential for future dividend growth. Conversely, we have reduced exposure to the higher-yielding sectors of the market including consumer staples, utilities and telecommunication services due to concerns related to valuation and limited dividend growth potential in the future. We have also selectively trimmed our exposure to the consumer discretionary sector in recent months. In the Company we continue to emphasise investment in high quality dividend-paying companies, with consideration towards balancing capital appreciation and current income over time.

Bob Shearer and Tony DeSpirito
BlackRock Investment Management LLC
11 June 2015

Ten largest investments

as at 30 April 2015

Wells Fargo: 3.8% (2014: 3.7%) is a U.S. diversified bank with a strong west coast franchise and growing national footprint. Wells boasts a strong and stable management team, led by CEO John Stumpf, who has been with the firm for over 30 years. Wells Fargo is an industry leader in cross-selling financial products and services which has built deep customer relationships and added to the bank’s pricing and earnings power.

JPMorgan Chase: 3.5% (2014: 3.4%) is a U.S. based diversified financial company with over U.S. $2 trillion in assets and operations in dozens of countries. JPMorgan’s capital base remains one of the strongest in the industry and it provides a measure of safety and financial flexibility. Overall, we believe that JPMorgan offers strong earnings power while also affording shareholders a healthy dividend yield.

General Electric: 2.7% (2014: 2.7%) is a diversified industrials conglomerate with operations in technology infrastructure, energy infrastructure, home and business services and capital services. In April 2015, GE announced plans to divest the majority of its GE Capital business, the firm’s financial arm. We are positive on the news and believe the transaction adds financial flexibility and enables the firm to focus on growing its core industrial units moving forward. GE’s strong management team, depth and breadth of products and ability to secure pricing, continue to make it a desirable long term holding.

Comcast: 2.7% (2014: 2.9%) is the largest operator in the U.S. cable industry. We are positive on Comcast’s best-in-class cable assets, its ability to continue to increase market share and the continued growth potential at NBC Universal. Comcast is now unique in the cable industry because they own the distribution network as well as some of their own programming (television channels). We believe that this will help the firm offset rising cable costs better than some of its competitors.

Microsoft: 2.7% (2014: 2.3%) is a global technology leader that is engaged in developing and licensing both software and hardware products & services. We view Microsoft as an attractive long term investment given the firm’s overall ‘ecosystem’, which should drive pricing power and efficient free cash flow generation over time. In the near term, we believe the firm’s strength in its enterprise and cloud units offers upside potential. We are also positive on the prospects for a pickup in IT capex spending, a dynamic which should benefit the tech sector moving forward.

Pfizer: 2.5% (2014: 2.3%) is a diversified pharmaceutical firm with a history of generating returns in excess of its cost of capital, which has translated to strong free cash flow generation and an attractive and consistent dividend yield over time. We are positive on the company’s prospects for future growth given their pipeline of early Phase I and II drugs with blockbuster potential. Additionally, we believe Pfizer’s recent U.S.$17 billion acquisition of Hospira will strengthen their global established pharma business and position the company for share gains in biosimilars, a growth segment of the pharma market.

Home Depot: 2.5% (2014: 2.6%) is the world’s largest home improvement retailer with over 2,200 warehouse-format stores and more than 365,000 employees. Home Depot has shown an ability to drive market share gains, currently owning a 20% share of the home improvement space. We remain encouraged by the company’s focus on the in-store shopping experience and emphasis on controlling costs through utilising new technology to assist its inventory management. Overall, we are positive on the stock given the company’s strong execution and the ongoing recovery in consumer home improvement spending and the domestic housing market.

Merck: 2.3% (2014: 2.3%) is a best-in-class global pharmaceuticals company with a strengthening pipeline of potential blockbuster drugs including Januvia (for diabetes), Isentress (for HIV) and the Gardasil vaccine. We believe that Merck is favourably positioned for long term growth and that the firm’s restructuring efforts should reduce costs and improve margins over the long term. Notably, Merck posted strong first quarter 2015 earnings results, exceeding analyst expectations and raising full year earnings guidance.

Bristol-Myers Squibb: 2.1% (2014: 2.0%) is a global pharmaceuticals manufacturer with strong growth potential in its diabetes and immuno-oncology business segments. The firm’s drug pipeline in immuno-oncology is particularly robust with multiple drugs in phase I and II clinical trials. Overall, the company offers a healthy dividend yield and an attractive risk and reward profile.

Raytheon: 2.1% (2014: 2.2%) is an aerospace and defence contractor that benefits from spending on reconnaissance-type products within the defence industry. The firm generates approximately 30% of its sales internationally and produces smaller, more exportable equipment that is less exposed to one programme, which we like from a diversification standpoint. Looking forward, we are positive on Raytheon’s income visibility from long term contracts, strong free cash flow generation and willingness to return capital to shareholders.

All percentages reflect the value of the holding as a percentage of total investments (including derivative financial instruments). Percentages in brackets represent the value of the holding as at 31 October 2014. Together, the ten largest investments represent 26.9% of the Company’s portfolio (ten largest investments at 31 October 2014: 26.9%).

Portfolio analysis

30 April 2015

Sector  and  geographical  breakdown	Australia	Canada	France	Netherlands	Peru	South  Korea	United  Kingdom	United  States	Total	Benchmark  weight
Consumer Discretionary	–	–	–	–	–	–	–	7.7	7.7	6.6
Consumer Staples	–	–	–	0.2	–	–	0.9	5.6	6.7	7.1
Energy	–	–	1.7	–	–	–	–	8.0	9.7	11.4
Financials	–	–	–	–	–	–	–	25.5	25.5	29.5
Health Care	–	–	–	–	–	–	–	13.8	13.8	14.4
Industrials	–	–	–	–	–	–	–	15.2	15.2	10.3
Information Technology	–	–	–	–	–	0.9	–	7.7	8.6	9.3
Materials	0.5	–	–	–	–	–	–	4.4	4.9	3.1
Telecommunication Services	–	0.3	–	–	–	0.5	–	1.8	2.6	2.2
Utilities	–	–	–	–	–	–	–	5.3	5.3	6.1
	------	--------	-----	--------	-----	-----	-----	-----	-----	-------
% Portfolio 30.04.15	0.5	0.3	1.7	0.2	–	1.4	0.9	95.0	100.0	100.0
	------	--------	-----	--------	-----	-----	-----	-----	-----	-------
% Portfolio 31.10.14	0.9	1.1	1.3	0.4	0.3	–	1.0	95.0	100.0
	------	--------	-----	--------	-----	-----	-----	-----	-----	-------

Investments

as at 30 April 2015

Company	Country	Sector	Securities	Market  value	%  of  total  portfolio
				£’000
Wells Fargo	United States	Financials	Ordinary Shares	3,864	3.8
			Options	(7)
JPMorgan Chase	United States	Financials	Ordinary Shares	3,498	3.5
General Electric	United States	Industrials	Ordinary Shares	2,765	2.7
			Options	(20)
Comcast	United States	Consumer Discretionary	Ordinary Shares	2,718	2.7
			Options	(8)
Microsoft	United States	Information Technology	Ordinary Shares	2,694	2.7
Pfizer	United States	Health Care	Ordinary Shares	2,571	2.5
			Options	(1)
Home Depot	United States	Consumer Discretionary	Ordinary Shares	2,537	2.5
Merck	United States	Health Care	Ordinary Shares	2,331	2.3
			Options	(9)
Bristol-Myers Squibb	United States	Health Care	Ordinary Shares	2,165	2.1
			Options	(3)
Raytheon	United States	Industrials	Ordinary Shares	2,145	2.1
			Options	(1)
Citigroup	United States	Financials	Ordinary Shares	2,105	2.1
Intel Corporation	United States	Information Technology	Ordinary Shares	1,937	1.9
Procter & Gamble	United States	Consumer Staples	Ordinary Shares	1,931	1.9
			Options	(7)
Verizon Communications	United States	Telecommunication Services	Ordinary Shares	1,858	1.8
			Options	(5)
United Health	United States	Health Care	Ordinary Shares	1,821	1.8
			Options	(2)
DuPont	United States	Materials	Ordinary Shares	1,808	1.8
			Options	(1)
Johnson & Johnson	United States	Health Care	Ordinary Shares	1,741	1.7
			Options	(1)
SunTrust Banks	United States	Financials	Ordinary Shares	1,730	1.7
			Options	(3)
Exxon Mobil	United States	Energy	Ordinary Shares	1,686	1.7
			Options	(4)
US Bancorp	United States	Financials	Ordinary Shares	1,682	1.7
			Options	(1)
Total	France	Energy	Ordinary Shares	1,670	1.7
			Options	(5)
Occidental Petroleum	United States	Energy	Ordinary Shares	1,572	1.5
			Options	(14)
Northrop Gruman	United States	Industrials	Ordinary Shares	1,525	1.5
			Options	(1)
Lockheed Martin	United States	Industrials	Ordinary Shares	1,445	1.4
Honeywell	United States	Industrials	Ordinary Shares	1,362	1.3
Qualcomm	United States	Information Technology	Ordinary Shares	1,351	1.3
Travelers Companies	United States	Financials	Ordinary Shares	1,319	1.3
			Options	(1)
3M Company	United States	Industrials	Ordinary Shares	1,239	1.2
MetLife	United States	Financials	Ordinary Shares	1,215	1.2
NextEra Energy	United States	Utilities	Ordinary Shares	1,198	1.2
United Technologies	United States	Industrials	Ordinary Shares	1,192	1.2
			Options	(1)
Prudential Financial	United States	Financials	Ordinary Shares	1,180	1.2
			Options	(6)
Morgan Stanley	United States	Financials	Ordinary Shares	1,162	1.2
Bank of America	United States	Financials	Ordinary Shares	1,153	1.1
International Paper Company	United States	Materials	Ordinary Shares	1,141	1.1
United Parcel Service	United States	Industrials	Ordinary Shares	1,137	1.1
Dominion Resources	United States	Utilities	Ordinary Shares	1,115	1.1
			Options	(4)
Chevron	United States	Energy	Ordinary Shares	1,069	1.1
			Options	(3)
McDonald's	United States	Consumer Discretionary	Ordinary Shares	1,067	1.1
			Options	(4)
Ace	United States	Financials	Ordinary Shares	1,055	1.1
Goldman Sachs	United States	Financials	Ordinary Shares	1,049	1.0
Marathon Petroleum	United States	Energy	Ordinary Shares	1,041	1.0
			Options	(4)
Quest Diagnostics	United States	Health Care	Ordinary Shares	985	1.0
Union Pacific	United States	Industrials	Ordinary Shares	976	1.0
Kroger	United States	Consumer Staples	Ordinary Shares	960	1.0
Diageo	United Kingdom	Consumer Staples	Ordinary Shares	947	0.9
American Express	United States	Financials	Ordinary Shares	901	0.9
			Options	(3)
Samsung Electronics	South Korea	Information Technology	Ordinary Shares	897	0.9
CME	United States	Financials	Ordinary Shares	891	0.9
			Options	(3)
Fifth Third Bank	United States	Financials	Ordinary Shares	860	0.9
			Options	(5)
IBM	United States	Information Technology	Ordinary Shares	852	0.8
			Options	(1)
American Water Works Association	United States	Utilities	Ordinary Shares	835	0.8
			Options	(2)
Anthem	United States	Health Care	Ordinary Shares	827	0.8
			Options	(1)
American International	United States	Financials	Ordinary Shares	787	0.8
			Options	(4)
Dow Chemical	United States	Materials	Ordinary Shares	773	0.8
			Options	(7)
VF Corporation	United States	Consumer Discretionary	Ordinary Shares	746	0.7
			Options	(1)
Dollar General	United States	Consumer Discretionary	Ordinary Shares	738	0.7
Motorola Solutions	United States	Information Technology	Ordinary Shares	733	0.7
Marathon Oil	United States	Energy	Ordinary Shares	707	0.7
			Options	(9)
Praxair	United States	Materials	Ordinary Shares	692	0.7
			Options	(1)
Becton Dickinson	United States	Health Care	Ordinary Shares	632	0.6
			Options	(1)
Altria	United States	Consumer Staples	Ordinary Shares	619	0.6
			Options	(2)
Sempra Energy	United States	Utilities	Ordinary Shares	603	0.6
AbbVie	United States	Health Care	Ordinary Shares	589	0.6
Schlumberger	United States	Energy	Ordinary Shares	590	0.6
			Options	(8)
Lorillard	United States	Consumer Staples	Ordinary Shares	573	0.6
			Options	(2)
Chubb	United States	Financials	Ordinary Shares	553	0.6
ConocoPhillips	United States	Energy	Ordinary Shares	524	0.5
			Options	(3)
BHP Billiton	Australia	Materials	Ordinary Shares	522	0.5
			Options	(3)
SK Telecom	South Korea	Telecommunication Services	Ordinary Shares	512	0.5
Mondelez International	United States	Consumer Staples	Ordinary Shares	507	0.5
			Options	(5)
Coca-Cola	United States	Consumer Staples	Ordinary Shares	494	0.5
			Options	(1)
Philip Morris International	United States	Consumer Staples	Ordinary Shares	490	0.5
			Options	(1)
Spectra Energy	United States	Energy	Ordinary Shares	484	0.5
			Options	(1)
Wisconsin Energy	United States	Utilities	Ordinary Shares	471	0.5
Weyerhaeuser	United States	Financials	Ordinary Shares	468	0.5
Tyco International	United States	Industrials	Ordinary Shares	461	0.5
Eversource Energy	United States	Utilities	Ordinary Shares	451	0.4
CSX	United States	Industrials	Ordinary Shares	440	0.4
			Options	(6)
CMS Energy	United States	Utilities	Ordinary Shares	435	0.4
			Options	(1)
Abbott Laboratories	United States	Health Care	Ordinary Shares	417	0.4
			Options	(1)
Rockwell Automation	United States	Industrials	Ordinary Shares	411	0.4
			Options	(1)
Nielsen	United States	Industrials	Ordinary Shares	395	0.4
			Options	(1)
Phillips 66	United States	Energy	Ordinary Shares	385	0.4
			Options	(1)
Automatic Data Processing	United States	Information Technology	Ordinary Shares	330	0.3
			Options	(1)
BCE	Canada	Telecommunication Services	Ordinary Shares	308	0.3
ITC Holdings	United States	Utilities	Ordinary Shares	287	0.3
			Options	(1)
Unilever	Netherlands	Consumer Staples	Ordinary Shares	218	0.2
			Options	(1)
Portfolio				---------- 100,926	---------100.0
				=====	=====

The negative valuation of £194,000 in respect of options held represents the notional cost of repurchasing the contracts at market prices as at 30 April 2015.

Statement of comprehensive income

for the six months ended 30 April 2015

	Notes		Revenue £’000			Capital £’000			Total £’000
		Six  months  ended  30.04.15  (unaudited)	Six  months  ended  30.04.14  (unaudited)	Year  ended  31.10.14  (audited)	Six  months  ended  30.04.15  (unaudited)	Six  months  ended  30.04.14  (unaudited)	Year  ended  31.10.14  (audited)	Six  months  ended  30.04.15  (unaudited)	Six  months  ended  30.04.14  (unaudited)	Year  ended  31.10.14  (audited)
Gains/(losses) on investments held at fair value through profit or loss		–	–	–	5,021	(208)	9,067	5,021	(208)	9,067
(Losses)/gains on foreign exchange		–	–	–	(353)	198	13	(353)	198	13
Income from investments held at fair value through profit or loss	2	1,505	1,539	3,123	–	–	–	1,505	1,539	3,123
Other income	2	1,300	1,330	2,670	–	–	–	1,300	1,330	2,670
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Total income		2,805	2,869	5,793	4,668	(10)	9,080	7,473	2,859	14,873
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Expenses
Investment management fees	3	(132)	(137)	(273)	(397)	(412)	(819)	(529)	(549)	(1,092)
Other operating expenses	4	(191)	(181)	(386)	(26)	(18)	(37)	(217)	(199)	(423)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Total operating expenses		(323)	(318)	(659)	(423)	(430)	(856)	(746)	(748)	(1,515)
		--------	--------	--------	--------	--------	--------	--------	--------	--------

Net profit on ordinary activities before finance costs and taxation		2,482	2,551	5,134	4,245	(440)	8,224	6,727	2,111	13,358
Finance costs		–	(1)	(2)	–	(4)	(6)	–	(5)	(8)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Net profit on ordinary activities before taxation		2,482	2,550	5,132	4,245	(444)	8,218	6,727	2,106	13,350
Taxation		(416)	(437)	(876)	81	91	180	(335)	(346)	(696)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Net profit on ordinary activities after taxation		2,066	2,113	4,256	4,326	(353)	8,398	6,392	1,760	12,654
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Earnings per ordinary share – basic and diluted	6	2.27p	2.11p	4.25p	4.76p	(0.35p)	8.38p	7.03p	1.76p	12.63p
		--------	--------	--------	--------	--------	--------	--------	--------	--------

The total column of this statement represents the Company’s Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by the European Union. The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies (‘AIC’). All items in the above statement derive from continuing operations. All income is attributable to the equity holders of BlackRock North American Income Trust plc.

The Company does not have any other recognised gains or losses. The net profit for the period disclosed above represents the Company’s total comprehensive income.

Statement of changes in equity

for the six months ended 30 April 2015

	Notes	Called-up  share  capital	Share  premium  account	Capital  redemption  reserve	Special  reserve	Capital  reserves	Revenue  reserve	Total
		£’000	£’000	£’000	£’000	£’000	£’000	£’000
For the six months ended 30 April 2015 (unaudited)
At 31 October 2014		1,004	36,774	1,460	63,213	17,402	1,346	121,199
Total comprehensive income:
Net profit for the period		–	–	–	–	4,326	2,066	6,392
Transaction with owners, recorded directly to equity:
Shares purchased and held in treasury	7	–	–	–	(24,737)	–	–	(24,737)
Tender costs		–	–	–	(216)	–	–	(216)
Dividends paid (a)	5	–	–	–	–	–	(1,807)	(1,807)
		------	------	------	------	------	------	------
At 30 April 2015		1,004	36,774	1,460	38,260	21,728	1,605	100,831
		------	------	------	------	------	------	------
For the period ended 30 April 2014 (unaudited)
At 31 October 2013		994	35,671	1,460	63,213	9,004	947	111,289
Total comprehensive income:								-
Net profit for the period		–	–	–	–	(353)	2,113	1,760
Transaction with owners, recorded directly to equity:
Issue of ordinary shares	7	10	1,108	–	–	–	–	1,118
Share issue costs		–	(5)	–	–	–	–	(5)
Dividends paid (b)	5	–	–	–	–	–	(1,849)	(1,849)
		------	------	------	------	------	------	------
At 30 April 2014		1,004	36,774	1,460	63,213	8,651	1,211	112,313
		------	------	------	------	------	------	------
For the year ended 31 October 2014 (audited)
At 31 October 2013		994	35,671	1,460	63,213	9,004	947	111,289
Total comprehensive income:
Net profit for the year		–	–	–	–	8,398	4,256	12,654
Transaction with owners, recorded directly to equity:
Issue of ordinary shares	7	10	1,108	–	–	–	–	1,118
Share issue costs		–	(5)	–	–	–	–	(5)
Dividends paid (c)	5	–	-	–	–	–	(3,857)	(3,857)
		------	------	------	------	------	------	------
At 31 October 2014		1,004	36,774	1,460	63,213	17,402	1,346	121,199
		------	------	------	------	------	------	------

(a)   Final dividend of 1p per share for the year ended 31 October 2014, declared on 6 November 2014 and paid on 5 January 2015 and 1st interim dividend of 1p per share for the year ending 31 October 2015, declared on 12 February 2015 and paid on 7 April 2015.

(b)   Final dividend of 1p per share for the period ended 31 October 2013, declared on 3 October 2013 and paid on 4 December 2013 and 1st interim dividend of 1p per share for the year ended 31 October 2014, declared on 13 February 2014 and paid on 2 April 2014.

(c)   4th interim dividend of 1p per share for the period ended 31 October 2013, declared on 3 October 2013 and paid on 4 December 2013 (based on 84,488,500 ordinary shares); 1st interim dividend of 1p each for the year ended 31 October 2014, declared on 13 February 2014 and paid on 2 April 2014, 2nd interim dividend of 1p each for the year ended 31 October 2014, declared on 14 May 2014 and paid on 2 July 2014 and 3rd interim dividend of 1p each for the year ended 31 October 2014, declared on 6 August 2014 and paid on 2 October 2014 (based on 100,361,305 ordinary shares).

The transaction costs incurred on the acquisition and disposal of investments are included within the capital reserves and amounted to £10,000 for the six months ended 30 April 2015 (period ended 30 April 2014: £18,000; year ended 31 October 2014: £51,000).

Statement of financial position

as at 30 April 2015

	Notes	30  April  2015	30  April  2014	31  October  2014
		£’000  (unaudited)	£’000  (unaudited)	£’000  (audited)
Non current assets
Investments held at fair value through profit or loss		101,120	114,798	121,965
		--------	--------	--------
Current assets
Other receivables		225	586	218
Cash and cash equivalents		1,583	580	923
		--------	--------	--------
		1,808	1,166	1,141
		--------	--------	--------
Current liabilities
Bank overdraft		–	(1,088)	–
Derivative financial instruments		(194)	(449)	(746)
Other payables		(1,903)	(2,114)	(1,161)
		--------	--------	--------
		(2,097)	(3,651)	(1,907)
		--------	--------	--------
Net current liabilities		(289)	(2,485)	(766)
		--------	--------	--------
Net assets		100,831	112,313	121,199
		========	========	========
Equity attributable to equity holders
Called-up share capital	7	1,004	1,004	1,004
Share premium account		36,774	36,774	36,774
Capital redemption reserve		1,460	1,460	1,460
Special reserve		38,260	63,213	63,213
Capital reserves		21,728	8,651	17,402
Revenue reserve		1,605	1,211	1,346
		--------	--------	--------
Total equity shareholders’ funds		100,831	112,313	121,199
		========	========	========
Net asset value per ordinary share	6	125.59p	111.91p	120.76p
		========	========	========

Cash flow statement

for the six months ended 30 April 2015

	Six  months  ended  30  April  2015	Six  months  ended  30  April  2014	Year  ended  31  October  2014
	£’000  (unaudited)	£’000  (unaudited)	£’000  (audited)
Operating activities
Profit before taxation	6,727	2,106	13,350
Add back interest paid	–	5	8
(Gains)/losses on investments held at fair value through profit or loss	(5,021)	208	(9,067)
Net movement on foreign exchange	353	(198)	(13)
Sale of investments held at fair value through profit or loss	71,282	45,364	91,353
Purchases of investments held at fair value through profit or loss	(45,968)	(47,578)	(91,551)
(Increase)/decrease in other receivables	(127)	57	88
Increase in other payables	307	278	89
(Increase)/decrease in amounts due from brokers	(16)	(216)	129
Increase/(decrease) in amounts due to brokers	812	561	(351)
	--------	--------	--------
Net cash inflow from operating activities before interest and taxation	28,349	587	4,035
	--------	--------	--------
Interest paid	–	(5)	(8)
Taxation on investment income included within gross income	(333)	(224)	(720)
	--------	--------	--------
Net cash inflow from operating activities	28,016	358	3,307
	--------	--------	--------
Financing activities
Dividends paid	(1,807)	(1,849)	(3,857)
Proceeds from issue of ordinary shares	–	1,118	1,796
Tender offer repurchase of shares	(24,737)	–	–
Tender offer costs paid	(216)	–	–
Share issue costs paid	(243)	(5)	(8)
	--------	--------	--------
Net cash outflow from financing activities	(27,003)	(736)	(2,069)
	--------	--------	--------
Increase/(decrease) in cash and cash equivalents	1,013	(378)	1,238
	--------	--------	--------
Cash and cash equivalents at start of period	923	(328)	(328)
Effect of foreign exchange rate changes	(353)	198	13
	--------	--------	--------
Cash and cash equivalents at end of period	1,583	(508)	923
	--------	--------	--------
Comprised of:
Cash and cash equivalents	1,583	580	923
Bank overdraft	–	(1,088)	–
	--------------	--------------	--------------
	1,583	(508)	923
	========	========	========

Notes to the financial statements

for the six months ended 30 April 2015

1. Principal activity and basis of preparation

The principal activity of the Company is that of an investment trust company within the meaning of section 1158 of the Corporation Tax Act 2010.

The half yearly financial statements have been prepared using the same accounting policies as set out in the Company’s Annual Report and Financial Statements for the year ended 31 October 2014 (which were prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by the European Union (‘EU’) and as applied in accordance with the provisions of the Companies Act 2006) and in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’. Insofar as the Statement of Recommended Practice (‘SORP’) for investment trust companies (‘AIC’), revised in January 2009 is compatible with IFRS, the financial statements have been prepared in accordance with guidance set out in the SORP.

2. Income

	Six  months  ended  30  April  2015	Six  months  ended  30  April  2014	Year  ended  31  October  2014
	(unaudited)  £’000	(unaudited)  £’000	(audited)  £’000
Investment income:
Overseas listed dividends	1,494	1,525	3,088
UK listed dividends	11	14	35
	--------	--------	--------
	1,505	1,539	3,123
Other income:
Deposit interest on cash balances	1	3	4
Option premium income	1,299	1,327	2,666
	--------	--------	--------
	1,300	1,330	2,670
	--------	--------	--------
Total	2,805	2,869	5,793
	========	========	========

During the period, the Company received premiums totalling £1,436,000 (period ended 30 April 2014: £1,497,000; year ended 31 October 2014: £2,747,000) for writing covered call options for the purposes of revenue generation, of which £1,299,000 (period ended 30 April 2014: £1,327,000; year ended 31 October 2014: £2,666,000) was taken to income. All derivative transactions were based on constituent stocks in the Russell 1000 Value Index. At 30 April 2015, there were 123 open positions with an associated liability of £194,000 (period ended 30 April 2014: 165 open positions with associated liability of £449,000 and year ended 31 October 2014: 130 open positions with associated liability of Â£746,000).

3. Investment management fee

		Six months ended 30 April 2015 (unaudited)			Six months ended 30 April 2014 (unaudited)			Year ended 31 October 2014 (audited)
	Revenue  £’000	Capital  £’000	Total  £’000	Revenue  £’000	Capital  £’000	Total  £’000	Revenue  £’000	Capital  £’000	Total  £’000
Investment management fee	132	397	529	137	412	549	273	819	1,092
	-------	-------	-------	-------	-------	-------	-------	-------	-------
Total	132	397	529	137	412	549	273	819	1,092
	=======	=======	=======	======	=======	=======	=======	=======	=======

The Company has a management agreement with BlackRock Fund Managers Limited (‘BFM’) under which BFM is entitled to an investment management fee, payable in arrears, calculated at the rate of 0.25 per cent. per quarter of the Company’s average market capitalisation. Average market capitalisation is calculated as the aggregate of the closing mid-market share price, multiplied by the number of shares in issue on each business day during the quarter, divided by the number of business days in the quarter.

4. Other Operating expenses

	Six  months  ended  30  April  2015	Six  months  ended  30  April  2014	Year  ended  31  October  2014
	(unaudited)  £’000	(unaudited)  £’000	(audited)  £’000
Taken to revenue:
Custody fee	3	2	5
Auditors’ remuneration:
– audit services	13	14	26
– other audit services	–	6	6
Registrar’s fee	9	13	30
Marketing fees	42	38	77
Directors’ emoluments	49	48	104
Other administration costs	75	60	138
	--------	--------	--------
	191	181	386
Taken to capital:
Transaction costs – custody	26	18	37
	--------	--------	--------
	217	199	423
	========	========	========

5. Dividends

The Directors have declared a second quarterly interim dividend of 1.10p per share. The dividend will be paid on 1 July 2015 to shareholders on the Company’s register on 22 May 2015. Under IFRS, the second interim dividend has not been recognised as a liability in the financial statements as interim dividends are not recognised in the financial statements until they are paid. They are also debited directly to revenue reserves.

Dividends on equity shares during the period were:

	Six  months  ended  30  April  2015  £’000
	(unaudited)
Dividends on equity shares:
Fourth interim of 1.00p per ordinary share paid on 5 January 2015*	1,004
	--------
First interim dividend of 1.00p per ordinary share paid on 7 April 2015**	803
	--------
Accounted for in the financial statements	1,807
	--------
Second interim dividend of 1.10p per ordinary share payable on 1 July 2015***	880
	--------
	2,687
	--------
*               based on 100,361,305 ordinary shares. **             based on 80,289,044 ordinary shares. ***            based on 80,039,044 ordinary shares.

6. Earnings and net asset value per ordinary share

	Six  months  ended  30  April  2015	Six  months  ended  30  April  2014	Year  ended  31  October  2014
	(unaudited)	(unaudited)	(audited)
Net revenue profit attributable to ordinary shareholders (£’000)	2,066	2,113	4,256
Net capital profit/(losses) attributable to ordinary shareholders (£’000)	4,326	(353)	8,398
	--------	--------	--------
Total profit attributable to ordinary shareholders (£’000)	6,392	1,760	12,654
	--------	--------	--------
Total equity attributable to shareholders (£’000)	100,831	112,313	121,199
	--------	--------	--------
The weighted average number of ordinary shares in issue during the period on which the earnings per ordinary share was calculated was:	90,935,105	99,997,217	100,180,757
	--------	--------	--------
The actual number of ordinary shares in issue at the end of the period on which the net asset value was calculated was:	80,289,044	100,361,305	100,361,305
	--------	--------	--------
Revenue earnings per share	2.27p	2.11p	4.25p
Capital earnings per share	4.76p	(0.35p)	8.38p
	--------	--------	--------
Total earnings per share – basic and diluted	7.03p	1.76p	12.63p
	--------	--------	--------
Net asset value per share – basic and diluted	125.59p	111.91p	120.76p
	--------	--------	--------
Share price	117.50p	109.75p	112.00p
	========	========	========

Basic and diluted earnings per share and net asset value per share are the same as the Company does not have any dilutive securities outstanding.

7. Share capital

	Ordinary  shares  in  issue  (number)	Treasury  shares  (number)	Total  shares  in  issue (number)	Nominal  value  £’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 1 pence each:
At 1 November 2014	100,361,305	–	100,361,305	1,004
	--------	--------	--------	--------
At 30 April 2015	80,289,044	20,072,261	100,361,305	1,004
	========	========	========	========

During the period to 30 April 2015, 20,072,261 ordinary shares were purchased (period ended 30 April 2014: nil) via the tender offer to be held in treasury at a total cost of £24,737,000.

No ordinary shares were cancelled during the period (period ended 30 April 2014: nil). Since the period end and up to the date of this report, 250,000 ordinary shares have been purchased and placed in treasury at a total cost of £287,000.

8. Valuation of financial instruments

Financial assets and financial liabilities are either carried in the Statement of Financial Position at their fair value (investment and derivatives) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset as follows.

The fair value hierarchy has the following levels:

Level 1 – quoted market price in an active market for an identical instrument. These include exchange traded derivative option contracts. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

Level 2 – Valuation techniques used to price securities based on observable inputs. This category includes quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Valuation techniques used for non-standardised financial instruments such as options, currency swaps and other over-the-counter derivatives, include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity specific inputs.

Level 3 – Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs could have a significant impact on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgement by the Investment Manager. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

Over-the-counter derivative option contracts have been classified as level 2 investments as their valuation has been based on market observable inputs represented by the underlying quoted securities to which these contracts expose the Company.

The table below sets out fair value measurements using the IFRS 13 fair value hierarchy.

Financial assets at fair value through profit or loss at 30 April 2015	Level  1  £’000	Level  2  £’000	Level  3  £’000	Total  £’000
Assets:
Equity investments	101,120	–	–	101,120
Liabilities:
Derivative financial instruments – written options	(161)	(33)	–	(194)
	--------	--------	--------	--------
	100,959	(33)	–	100,926
	========	========	========	========

Financial assets at fair value through profit or loss at 30 April 2014	Level  1  £’000	Level  2  £’000	Level  3  £’000	Total  £’000
Assets:
Equity investments	114,798	–	–	114,798
Liabilities:
Derivative financial instruments – written options	(336)	(113)	–	(449)
	--------	--------	--------	--------
	114,462	(113)	–	114,349
	========	========	========	========

Financial assets at fair value through profit or loss at 31 October 2014	Level  1  £’000	Level  2  £’000	Level  3  £’000	Total  £’000
Assets:
Equity investments	121,965	–	–	121,965
Liabilities:
Derivative financial instruments – written options	(554)	(192)	–	(746)
	--------	--------	--------	--------
	121,411	(192)	–	121,219
	========	========	========	========

There were no transfers between levels for financial assets and financial liabilities during the period recorded at fair value as at 30 April 2015, 30 April 2014 and 31 October 2014. The Company did not hold any level 3 securities throughout the financial period or as at 30 April 2015, 30 April 2014 and 31 October 2014.

9. Related party disclosure

The Board consists of four non-executive Directors all of whom are considered to be independent by the Board. None of the Directors has a service contract with the Company. The Chairman receives an annual fee of £30,000, the Chairman of the Audit and Management Engagement Committee receives an annual fee of £25,000 and the other Directors each receive an annual fee of £21,000. At 30 April 2015, an amount of £8,080 (30 April 2014: £8,080; 31 October 2014: £9,489) was outstanding in respect of Directors’ fees.

At 30 April 2015, the Directors’ interests in the Company’s ordinary shares were as follows:

	Six  months  ended  30  April  2015 (unaudited)	Six  months  ended  30  April  2014 (unaudited)	Year  ended  31  October  2014 (audited)
Simon Miller (Chairman)	38,094	38,094	38,094
	--------	--------	--------
Christopher Casey	19,047	19,047	19,047
	--------	--------	--------
Andrew Irvine	38,094	38,094	38,094
	--------	--------	--------
Alice Ryder	9,047	9,047	9,047
	--------	--------	--------

Since the period end and up to the date of this report there have been no changes in Directors’ holdings.

10. Transactions with the Investment Manager

BlackRock Fund Managers Limited (‘BFM’) was appointed as the Company’s Alternative Investment Fund Manager (‘AIFM’) with effect from 2 July 2014. BFM provides management and administration services to the Company under a contract which is terminable on six months’ notice in writing. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited. For details, see note 3.

The investment management fee for the six months ended 30 April 2015 was £529,000 (period ended 30 April 2014: £549,000; year ended 31 October 2014: £1,092,000). At the period end, an amount of £529,000 (period ended 30 April 2014: £265,000; year ended 31 October 2014: £356,000) was outstanding in respect of the investment management fee.

In addition to the above services, with effect from 1 November 2013 BlackRock has provided the Company with marketing services. The total fees paid or payable for these services for the period ended 30 April 2015 amounted to £42,000 excluding VAT (period ended 30 April 2014: £38,000; year ended 31 October 2014: £77,000). At 30 April 2015, £119,000 (period ended 30 April 2014: £38,000; year ended 31 October 2014: £77,000) was outstanding.

11. Contingent liabilities

There were no contingent liabilities at 30 April 2015, 30 April 2014 or 31 October 2014.

12. Publication of non statutory accounts

The financial information contained in this half yearly financial report does not constitute statutory accounts, as defined in section 435 of the Companies Act 2006. The financial information for the periods ended 30 April 2015 and 30 April 2014 has not been audited.

The information for the year ended 31 October 2014 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on these financial statements contained no qualifications or statement under sections 498(2) or 498(3) of the Companies Act 2006.

13. Annual results

The Board expects to announce the annual results for the year ended 31 October 2015 in mid December 2015.

Copies of the annual results announcement can be obtained from the Secretary on 0207 743 3000. The annual report should be available by late December 2015 with the Annual General Meeting being held in February 2016.

For further information, please contact:

Simon White, Head of Investment Trusts, BlackRock Investment Management (UK) Limited –

Tel: [phone]

Scott Malatesta, Senior Product Strategies, BlackRock Investment Management (UK) LLC –

Tel: [phone]

Emma Philips, Media & Communications, BlackRock Investment Management (UK) Limited –

Tel: [phone]