15 Jan 2018 12:52
BlackRock North American Income Trust Plc - Portfolio UpdateBlackRock North American Income Trust Plc - Portfolio Update
PR Newswire
London, January 12
BLACKROCK NORTH AMERICAN INCOME TRUST plc (LEI: 549300WWOCXSC241W468)All information is at 31 December 2017 and unaudited.
Performance at month end with net income reinvested
| One Month | Three Months | Six Months | One Year | Three Years | Since Launch* | |
| Net asset value | 0.9% | 3.9% | 4.4% | 5.2% | 52.7% | 108.4% |
| Share price | -0.3% | 5.6% | 5.8% | -1.1% | 53.7% | 93.7% |
| Russell 1000 Value Index | 1.5% | 4.5% | 4.3% | 3.8% | 47.9% | 132.0% |
Source: BlackRock
*Launched on 24 October 2012.
| At month end | |
| Net asset value – capital only: | 172.20p |
| Net asset value – cum income: | 173.00p |
| Share price: | 162.50p |
| Discount to cum income NAV: | 6.1% |
| Net yield*: | 3.0% |
| Total assets including current year revenue: | £119.2m |
| Gearing: | Nil |
| Options overwrite: | 14.6% |
| Ordinary shares in issue**: | 68,874,044 |
| Ongoing charges***: | 1.07% |
* Based on dividends of 1.20p per share declared on 21 February 2017 and 1.25p per share declared on 3 May 2017, 8 August 2017 and 2 November 2017.
** Excluding 31,487,261 ordinary shares held in treasury.
*** 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 | 27.6 |
| Health Care | 17.1 |
| Energy | 11.3 |
| Industrials | 9.3 |
| Information Technology | 9.0 |
| Consumer Staples | 7.1 |
| Utilities | 5.0 |
| Consumer Discretionary | 3.8 |
| Materials | 3.0 |
| Telecommunication Services | 2.8 |
| Net current assets | 4.0 |
| ----- | |
| 100.0 | |
| ===== |
| Country Analysis | Total Assets (%) |
| USA | 78.6 |
| Netherlands | 4.5 |
| United Kingdom | 4.1 |
| Canada | 3.0 |
| Ireland | 2.3 |
| France | 1.8 |
| Denmark | 0.9 |
| China | 0.4 |
| South Korea | 0.4 |
| Net current assets | 4.0 |
| ----- | |
| 100.0 | |
| ===== | |
| Ten Largest Investments | ||
| Company | Country of Risk | Total Assets (%) |
| Bank of America | USA | 4.1 |
| JPMorgan Chase | USA | 4.1 |
| Pfizer | USA | 3.7 |
| Citigroup | USA | 3.7 |
| Wells Fargo | USA | 3.1 |
| Oracle | USA | 2.9 |
| Anthem | USA | 2.6 |
| Royal Dutch Shell | Netherlands | 2.3 |
| Microsoft | USA | 2.2 |
| Verizon Communications | USA | 2.0 |
Tony DeSpirito, Franco Tapia and David Zhao, representing the Investment Manager, noted:
For the one-month period ended 31 December 2017, the Company’s NAV increased by 0.9% while the share price decreased by 0.3% (all in sterling). The Company’s benchmark, the Russell 1000 Value Index, returned 1.5% for the period.
The largest contributor to relative performance during the month was stock selection in the consumer staples sector. Notably, our selection in the beverages industry proved to be beneficial, as seen in our overweight exposure to Diageo and Dr. Pepper Snapple Group. In real estate, the Company benefited from a lack of exposure, as performance was challenged during the month of December. Stock selection in the energy sector also contributed to relative performance during the month, most notably in the oil, gas, & consumable fuels industry.
The largest detractor from relative performance was a combination of stock selection and allocation decisions in the information technology sector. Most notably, an overweight to software, an underweight to internet software & services, and stock selection among semiconductors & semiconductor equipment firms proved to be performance headwinds. Stock selection and allocation decisions in industrials also proved to be costly, with relative underperformance stemming from our selection among aerospace & defence firms and our decision to hold overweight exposure to industrial conglomerates. Lastly, stock selection in the materials and telecommunication services sectors dampened relative performance, as did an elevated cash balance.
Transactions/Options
Transactions: Notable portfolio transactions during the month included initiating new positions in Edison International and Regions Financial, while conversely exiting our position in Johnson & Johnson.
Options: As of 31 December 2017, the Company’s options exposure was 14.6% and the delta of the options was 89.1.
Positioning
As of period end, the Company’s largest overweight positions relative to the benchmark were in the health care, financials, information technology and materials sectors. The Company’s largest underweight positions relative to the benchmark were in the real estate, consumer discretionary and consumer staples sectors.
Source: BlackRock.
15 January 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.