Portfolio Update

BLACKROCK NORTH AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)
All information is at 31 May 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	3.6%	3.0%	1.5%	6.0%	49.0%	77.7%
Share price	9.2%	5.5%	4.9%	12.5%	61.5%	71.1%
Russell 1000 Value Index	4.1%	2.7%	1.2%	5.0%	42.2%	84.3%

Source: BlackRock

At month end
Net asset value – capital only:	169.33p
Net asset value – cum income:	169.91p
Share price:	166.75p
Discount to cum income NAV:	1.9%
Net yield¹:	4.8%
Total assets including current year revenue:	£117.0m
Gearing:	Nil
Options overwrite:	14.3%
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 31 May 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	27.2
Health Care	17.1
Energy	12.2
Information Technology	11.3
Industrials	8.1
Consumer Staples	7.6
Utilities	4.9
Consumer Discretionary	3.9
Telecommunication Services	2.6
Materials	2.2
Net current assets	2.9
	-----
	100.0
	=====

Country Analysis	Total Assets (%)
USA	78.4
United Kingdom	5.2
Netherlands	4.1
Canada	3.3
Ireland	2.9
France	1.6
Denmark	0.8
Germany	0.5
China	0.3
Net current assets	2.9
	-----
	100.0
	=====

Ten Largest Investments
Company	Country of Risk	Total Assets (%)
JPMorgan Chase	USA	4.2
Bank of America	USA	4.1
Pfizer	USA	3.8
Citigroup	USA	3.4
Wells Fargo	USA	3.0
Oracle	USA	2.9
Microsoft	USA	2.6
Suncor Energy	Canada	2.5
Verizon Communications	USA	2.3
Anthem	USA	2.2

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

For the one-month period ended 31 May 2018, the Company’s NAV increased by 3.6% while the share price increased by 9.2% (all in sterling). The Company’s benchmark, the Russell 1000 Value Index, returned 4.1% for the period.

The largest contributor to relative performance was stock selection and allocation decisions in the consumer staples sector. Notably, an underweight to the food & staples retailing industry and stock selection in food products and beverages boosted relative returns. In information technology, a combination of stock selection and an overweight to the software industry also added to relative returns. At the industry level, stock selection in pharmaceuticals and multi-utilities also contributed to relative performance.

The largest detractor from relative performance was a combination of stock selection and allocation decisions in financials. Notably, stock selection in the insurance and capital markets industries proved costly, as did our overweight positions in the insurers and banks. In health care, a combination of stock selection and an overweight to the health care providers & services industry weighed on relative results. Lastly, an underweight to real estate and stock selection in energy detracted from relative performance during the month.

The portfolio’s option overwriting strategy detracted modestly from absolute returns in May. This should be understood within the context of positive U.S. equity market returns.

Transactions/Options

Transactions: In May we initiated new positions in ONEOK, Inc., AXA Equitable Holdings, Inc., Marathon Oil Corporation and Anadarko Petroleum Corporation. The portfolio’s exposure to Devon Energy Corporation and Plains GP Holdings, L.P. was also increased during the month. Conversely, we trimmed our existing positions in Royal Dutch Shell and Total SA, as well as exited our positions in Halliburton Company and SK Telecom Co., Ltd.

Options:  As of 31 May 2018, the Company’s options exposure was 14.3% and the delta of the options was 91.0. 

Positioning

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

Source: BlackRock.

13 June 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.