BLACKROCK NORTH AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 30 June 2018 and unaudited.
Performance at month end with net income reinvested
One Month |
Three Months |
Six Months |
One Year |
Three Years |
Five years | |
Net asset value | 1.1% | 8.7% | 1.6% | 6.1% | 58.2% | 81.8% |
Share price | 3.7% | 17.9% | 9.1% | 15.5% | 77.2% | 81.4% |
Russell 1000 Value Index | 1.0% | 7.5% | 0.7% | 5.0% | 51.1% | 87.9% |
Source: BlackRock
At month end | |
Net asset value – capital only: | 170.84p |
Net asset value – cum income: | 171.75p |
Share price: | 173.00p |
Premium to cum income NAV: | 0.7% |
Net yield¹: | 4.6% |
Total assets including current year revenue: | £118.3m |
Gearing: | Nil |
Options overwrite: | 14.8% |
Ordinary shares in issue²: | 68,874,044 |
Ongoing charges³: | 1.1% |
¹ In line with the dividend policy announced in the Annual Report on 13 December 2017 of dividends amounting to 8.00p per share for the year ending 31 October 2018 and based on the share price as at close of business on 30 June 2018.
² Excluding 31,487,261 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 2017.
Benchmark Sector Analysis | Total Assets (%) |
Financials | 26.5 |
Health Care | 16.9 |
Energy | 12.5 |
Information Technology | 10.9 |
Consumer Staples | 7.8 |
Industrials | 7.8 |
Utilities | 4.9 |
Consumer Discretionary | 3.6 |
Telecommunication Services | 2.8 |
Materials | 2.2 |
Net current assets | 4.1 |
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100.0 | |
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Country Analysis | Total Assets (%) |
USA | 79.0 |
United Kingdom | 5.4 |
Canada | 3.3 |
Netherlands | 2.8 |
Ireland | 2.8 |
France | 0.9 |
Denmark | 0.7 |
Germany | 0.7 |
China | 0.3 |
Net current assets | 4.1 |
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100.0 | |
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Ten Largest Investments | ||
Company | Country of Risk | Total Assets (%) |
JPMorgan Chase | USA | 4.0 |
Bank of America | USA | 3.9 |
Pfizer | USA | 3.7 |
Citigroup | USA | 3.3 |
Wells Fargo | USA | 3.0 |
Oracle | USA | 2.7 |
Microsoft | USA | 2.6 |
Suncor Energy | Canada | 2.5 |
Anthem | USA | 2.4 |
Verizon Communications | USA | 2.4 |
Tony DeSpirito, Franco Tapia and David Zhao, representing the Investment Manager, noted:
For the one-month period ended 30 June 2018, the Company’s NAV increased by 1.1% while the share price increased by 3.7% (all in sterling). The Company’s benchmark, the Russell 1000 Value Index, returned 1.0% for the period.
The largest contributor to relative performance was stock selection and allocation decisions in the energy sector. Notably, stock selection and an overweight to the oil, gas & consumable fuels industry boosted relative returns. In information technology, a combination of stock selection and an underweight to semiconductors added to relative returns. Other notable contributors included stock selection in telecoms and an underweight to the industrials sector.
The largest detractor from relative performance was an underweight to real estate. Real estate was the second best performing sector in the Russell 1000 Value Index during the month, with benchmark sector constituents generating an average return of 4.5% (in sterling). In health care, stock selection in the pharmaceuticals industry also proved to be costly. Other modest detractors from relative performance included stock selection in the utilities and consumer staples sectors.
The portfolio’s option overwriting strategy contributed modestly to absolute returns in June.
Transactions/Options
Transactions: In June we initiated new positions in Philip Morris International Inc. and Arthur J. Gallagher & Co. Other notable additions included increasing our existing allocations to BP plc, ONEOK, Inc. and MetLife, Inc. Conversely, we trimmed our existing positions in Total SA and Royal Dutch Shell, as well as exited our positions in Prudential Financial, Inc., British American Tobacco plc, Plains GP Holdings, L.P. and Publicis Groupe SA.
Options: As of 30 June 2018, the Company’s options exposure was 14.8% and the delta of the options was 90.8.
Positioning
As of the period end, the Company’s largest overweight positions relative to the benchmark were in the health care, financials and energy sectors. The Company’s largest underweight positions relative to the benchmark were in the real estate, consumer discretionary and materials sectors.
Source: BlackRock.
16 July 2018
Latest information is available by typing blackrock.co.uk/brna on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.