Portfolio Update

The information contained in this release was correct as at 31 May 2021. Information on the Company’s up to date net asset values can be found on the London Stock Exchange website at:

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html. 

BLACKROCK NORTH AMERICAN INCOME TRUST PLC (LEI:549300WWOCXSC241W468)
All information is at 31 May 2021   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	0.1%	11.6%	15.1%	22.7%	32.4%	83.7%
Share price	-4.3%	13.5%	17.8%	23.2%	29.2%	84.5%
Russell 1000 Value Index	-0.3%	10.8%	15.5%	25.6%	34.9%	83.1%

At month end

Net asset value - capital only:	196.10p
Net asset value - cum income:	196.11p
Share price:	187.50p
Discount to cum income NAV:	4.4%
Net yield1:	4.3%
Total assets including current year revenue:	£157.3m
Gearing:	Nil
Options overwrite	8.4%
Ordinary shares in issue2:	80,229,044
Ongoing charges3:	1.1%

¹ Based on four quarterly interim dividends of 2.00p per share declared on 6 August 2020 and 4 November 2020 for the year ended 31 October 2020, and on 23 March 2021 and 5 May 2021 for the year ending 31 October 2021, and based on the share price as at close of business on 31 May 2021.

² Excluding 20,132,261 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 2020.

Sector Analysis	Total Assets (%)
Financials	28.6
Health Care	16.7
Information Technology	10.6
Consumer Staples	7.9
Energy	7.2
Industrials	6.7
Consumer Discretionary	6.1
Communication Services	5.8
Utilities	4.1
Materials	1.5
Net Current Assets	4.8
	----
	100.0
	=====

Country Analysis	Total Assets (%)
United States	74.9
United Kingdom	5.6
Germany	3.9
Netherlands	3.5
France	3.1
Ireland	1.8
Norway	1.1
Switzerland	0.8
Canada	0.5
Net Current Assets	4.8
	-----
	100.0
	=====

Top 10 Holdings	Country	% Total Assets
Citigroup	United States	3.8
Wells Fargo	United States	3.7
American International Group	United States	2.9
Cisco Systems	United States	2.6
Bank of America	United States	2.6
Verizon Communications	United States	2.4
Anthem	United States	2.4
Morgan Stanley	United States	2.1
General Motors	United States	2.1
Comcast	United States	2.0

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

For the one-month period ended 31 May 2021, the Company’s NAV increased by 0.1% and the share price decreased by 4.3% (all in sterling). The Company’s benchmark, the Russell 1000 Value Index, returned -0.3% for the period.

The largest contributor to relative performance was investment decisions in financials. Notably, stock selection in insurance proved beneficial, as did a combination of stock selection and an overweight exposure to the banking industry. In energy, stock selection and an overweight exposure to the oil, gas and consumable fuels industry boosted relative returns. Finally, an underweight exposure to the communication services sector contributed to relative results during the period.

The largest detractor from relative performance was a combination of stock selection and an underweight exposure to the materials sector. Notably, an underweight exposure to metals and mining companies, as well as investment decisions in the chemicals industry proved costly. In information technology, stock selection in IT services and an overweight exposure to the software industry weighed on relative returns. Investment decisions in health care also hindered relative performance during the period, most notably in the health care equipment and supplies and pharmaceuticals industries.

The portfolio’s options overwriting strategy detracted from relative performance during the month, as did the portfolio’s cash position.

Transactions/Options

Transactions: In May, the portfolio added to existing positions in British American Tobacco, SS&C Technologies, BP, Equinor and Fidelity National Information Services. Conversely, we exited our positions in Pioneer Natural Resources, CDW, NXP Semiconductors and Siemens Energy, as well as reduced our exposure to Altria and The Williams Companies.

Options: As of 31 May 2021, the Company’s options exposure was 8.4% and the delta of the options was 89.4.

Positioning

As of the period end, the Company’s largest overweight positions relative to the benchmark were in the financials, health care and energy 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 May 2021.

21 June 2021

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.