BLACKROCK NORTH AMERICAN INCOME TRUST plc
All information is at 31 January 2015 and unaudited.
Performance at month end with net income reinvested
One Three Six Since
Month months months launch
(24 Oct 2012)
Net asset value -0.6% 3.6% 13.7% 35.7%
Share price 0.2% 5.8% 14.3% 26.3%
Russell 1000 Value Index -0.3% 5.0% 15.0% 56.4%
Source: BlackRock
At month end
Net asset value - capital only: 123.00p
Net asset value - cum income: 124.13p
Share price: 117.50p
Discount to cum income NAV: 5.3%
Net yield*: 3.4%
Total assets including current year revenue: £124.6m
Target yield: 4.0p
Gearing: nil
Options overwrite: 16.96%
Ordinary shares in issue: 100,361,305
Ongoing charges**: 1.3%
*Based on dividends of 1p per share each declared on 14 May 2014, 13 August
2014, 6 November 2014 and 12 February 2015
** 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 2014
Benchmark
Sector Analysis Total Assets (%)
Financials 24.8
Industrials 15.2
Health Care 13.4
Energy 9.5
Consumer Discretionary 8.6
Consumer Staples 7.5
Information Technology 7.0
Utilities 5.9
Materials 5.1
Telecommunication Services 2.1
Net current assets 0.9
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100.0
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Country Analysis Total Assets (%)
USA 95.5
France 1.6
United Kingdom 1.0
Australia 0.5
Canada 0.3
Netherlands 0.2
Net current assets 0.9
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100.0
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Ten Largest Investments
Company Country of Risk Total Assets(%)
Wells Fargo USA 3.8
JPMorgan Chase USA 3.1
Home Depot USA 2.9
General Electric USA 2.6
Comcast USA 2.5
Merck USA 2.4
Pfizer USA 2.4
Du Pont USA 2.2
Raytheon USA 2.1
Microsoft USA 2.1
Bob Shearer and Tony de Spirito, representing the Investment Manager, noted:
Performance
For the one month period ended 31 January 2015, the Company's NAV decreased by
0.6% while the share price increased by 0.2% (all in sterling terms). The
Company's benchmark, the Russell 1000 Value Index, decreased by 0.3% for the
period.
The largest contributor to relative performance was stock selection in consumer
staples as portfolio holdings Kroger Co. (+11.6%) and Diageo plc (+7.5%)
outperformed benchmark peers. Stock selection in the energy and industrials
sectors also added to relative returns, led by Total SA and Northrop Grumman,
respectively. Lastly, stock selection in consumer discretionary contributed
modestly to relative returns for the period.
The largest detractor from relative performance was stock selection in
financials. Notably, stock selection in the bank and insurance industries
proved to be costly as did our underweight in real estate investment trusts
(REITs). An underweight in the health care sector also detracted from relative
performance for the period, as did stock selection in information technology.
Transactions/Options
Transactions: In January, we increased our exposure to the health care sector
by initiating positions in Anthem and UnitedHealth Group. Conversely, we
reduced our utilities exposure by selling Duke Energy Corporation. Other
notable sales for the month included Toronto-Dominion Bank, a Canada-based
money centre bank, and General Mills.
As of 31 January 2015, the Company's options exposure was 17.0% and the delta
of the options was 94.4%.
Positioning
The Company is currently overweight to the industrials, materials and consumer
discretionary sectors and market weight in consumer staples and
telecommunication services. We are underweight to the financials, utilities,
information technology, energy and health care sectors. Despite relative
underweights to financials and information technology, we have increased our
exposure to these segments in recent months given stronger fundamentals, the
potential for dividend growth, and attractive valuations.
16 February 2015
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.