BLACKROCK SUSTAINABLE AMERICAN INCOME TRUST PLC
BLACKROCK NORTH AMERICAN INCOME TRUST plc
All information is at 31 July 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 2.5% -0.7% 1.2% 37.3%
Share price 5.5% -1.2% -0.3% 25.8%
Russell 1000 Value Index 1.2% -1.9% 0.1% 56.5%
Source: BlackRock
At month end
Net asset value - capital only: 122.04p
Net asset value - cum income: 123.58p
Share price: 115.00p
Discount to cum income NAV: 6.9%
Net yield*: 3.7%
Total assets including current year revenue: £99.7m
Target yield: 4.3p
Gearing: Nil
Options overwrite: 14.82%
Ordinary shares in issue: 80,039,044
Ordinary shares held in treasury 20,322,261
Ongoing charges**: 1.3%
* Based on dividends of 1.10p per share each declared on 6 May 2015 and 5
August 2015 and 1.00p per share each declared on 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 27.0
Industrials 14.1
Health Care 14.0
Consumer Discretionary 8.2
Energy 8.1
Consumer Staples 7.5
Information Technology 7.3
Utilities 5.7
Materials 4.0
Telecommunication Services 2.4
Net current assets 1.7
-----
100.0
=====
Country Analysis Total Assets (%)
USA 95.2
France 1.5
United Kingdom 0.7
Australia 0.4
Canada 0.3
Netherlands 0.2
Net current assets 1.7
-----
100.0
=====
Ten Largest Investments
Company Country of Risk Total Assets (%)
JPMorgan Chase USA 4.2
Wells Fargo USA 4.0
Citigroup USA 3.3
Home Depot USA 2.7
Pfizer USA 2.7
General Electric USA 2.6
Merck USA 2.3
Exxon Mobil USA 2.2
United Health USA 2.2
Microsoft USA 2.2
Bob Shearer and Tony DeSpirito, representing the Investment Manager, noted:
Performance
For the one month period ended 31 July 2015, the Company's NAV increased by
2.5% whilst the share price increased by 5.5% (all in sterling). The Company's
benchmark, the Russell 1000 Value Index, gained 1.2% for the period.
The largest contributor to relative returns was a combination of stock
selection and an underweight to the energy sector. Notably, our underweight to
the exploration & production and equipment & services industries contributed
positively, as did our position in non-benchmark holding Marathon Petroleum.
Stock selection in industrials also added to relative performance as our
aerospace & defence holdings Raytheon, Lockheed Martin and Northrup Grumman
benefited from better than expected quarterly earnings reports and improving
guidance. Stock selection in consumer discretionary and consumer staples also
contributed to relative performance for the month.
The largest detractor from relative performance in July was our allocation and
stock selection decisions in the financials sector. Notably, not owning
benchmark holding Berkshire Hathaway, a non-dividend payer, and our underweight
to the real estate investment trusts industry proved to be costly. Stock
selection in health care and information technology, as well as our overweight
to materials, also modestly hurt relative returns for the month.
Transactions/Options
Transactions: Relatively few changes were made to the portfolio during the
month. Notably, within energy, we increased our allocation to Exxon Mobil and
decreased our exposure to Chevron. We also trimmed our exposure to
pharmaceuticals manufacturer, Bristol-Myers Squibb, during the month.
As at 31 July 2015, the Company's options exposure was 14.82% and the delta of
the options was 90.76%.
Positioning
The Company is currently overweight to the industrials, health care, consumer
discretionary, materials and consumer staples sectors. We maintain a neutral
weighting in telecommunication services and are underweight to the energy,
financials, information technology and utilities sectors.
20 August 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.
BLACKROCK NORTH AMERICAN INCOME : Portfolio Update
August 20, 2015 at 11:13 am EDT
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© PRNewswire - 2015
