BLACKROCK SUSTAINABLE AMERICAN INCOME TRUST PLC
BLACKROCK NORTH AMERICAN INCOME TRUST plc
All information is at 31 May 2016 and unaudited.
Performance at month end with net income reinvested
One Three Six One Since
Month Months Months Year Launch
(24 Oct 2012)
Net asset value 1.8% 5.1% 6.3% 7.4% 51.0%
Share price 2.8% 5.7% 14.4% 13.1% 42.7%
Russell 1000 Value Index 2.2% 6.4% 6.6% 4.8% 70.4%
Source: BlackRock
At month end
Net asset value - capital only: 130.01p
Net asset value - cum income: 130.10p
Share price: 125.50p
Discount to cum income NAV: 3.5%
Net yield*: 3.6%
Total assets including current year revenue: £91.2m
Gearing: Nil
Options overwrite: 18.85%
Ordinary shares in issue**: 69,549,044
Ongoing charges***: 1.24%
* Based on dividends of 1.20p per share declared on 4 May 2016 and 1.10p per
share declared on 18 February 2016, 4 November 2015 and 5 August 2015.
** Excluding 30,812,261 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 2015.
Benchmark
Sector Analysis Total Assets (%)
Financials 25.7
Health Care 14.
Industrials 12.0
Energy 10.9
Information Technology 10.0
Consumer Staples 7.8
Consumer Discretionary 7.3
Utilities 5.8
Materials 3.4
Telecommunication Services 2.3
Net current liabilities (0.1)
-----
100.0
=====
Country Analysis Total Assets (%)
USA 95.4
United Kingdom 1.9
France 1.6
Canada 0.6
China 0.4
Netherlands 0.2
Net current liabilities (0.1)
-----
100.0
=====
Ten Largest Investments
Company Country of Risk Total Assets (%)
JPMorgan Chase USA 3.9
Pfizer USA 3.7
Wells Fargo USA 3.5
General Electric USA 3.2
Bank of America USA 2.4
Intel Corporation USA 2.4
ExxonMobil USA 2.4
Dollar General USA 2.2
Home Depot USA 2.1
Occidental Petroleum USA 2.1
Bob Shearer and Tony DeSpirito, representing the Investment Manager, noted:
Performance
For the one month period ended 31 May 2016, the Company's NAV increased by 1.8%
while the share price increased by 2.8% (all in sterling). The Company's
benchmark, the Russell 1000 Value Index, increased by 2.2% for the period.
The largest contributor to relative performance during the month was stock
selection in the industrials sector. Notably, our underweight to the machinery
industry and stock selection in the aerospace & defence industry proved to be
beneficial. Stock selection in consumer discretionary also added to relative
performance as non-benchmark holding, Dollar General Corporation, outperformed
after beating consensus earnings estimates. An underweight to the energy sector
and stock selection in materials and financials also added modestly to relative
returns for the month.
The largest detractor from relative performance was stock selection in the
information technology sector, with notable detractors including our
non-benchmark positions in Lenovo Group and Motorola Solutions. In regards to
Lenovo, the company reported weaker than consensus quarterly earnings,
primarily due to weakness in its smartphone business segment. Stock selection
in the consumer staples and health care sectors also modestly dampened relative
performance for the month.
Transactions/Options
Transactions: During the month of May, we initiated multiple transactions
within the energy and health care sectors. In energy, we reduced our
allocation to Pioneer Natural Resources and initiated new positions in Suncor
Energy and Anadarko Petroleum. In health care, we exited our position in AbbVie
and increased our allocation to Pfizer and AstraZeneca. Notably, the Pfizer
and AstraZeneca transactions were partially funded by reducing the Company's
cash allocation during the month.
Options: As at 31 May 2016, the Company's options exposure was 18.85% and the
delta of the options was 90.89%.
Positioning
The Company is currently overweight to the health care, consumer discretionary,
industrials, materials and consumer staples sectors. We are underweight to the
financials, energy, utilities, information technology and telecommunication
services sectors.
16 June 2016
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
June 16, 2016 at 07:04 am EDT
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© PRNewswire - 2016
