BLACKROCK SUSTAINABLE AMERICAN INCOME TRUST PLC
BLACKROCK NORTH AMERICAN INCOME TRUST plc
All information is at 30 September 2016 and unaudited.
Performance at month end with net income reinvested
One Three Six One Three Since
Month Months Months Year Years Launch
(24 Oct 2012)
Net asset value -0.2% 5.1% 17.9% 33.7% 55.4% 74.1%
Share price 3.1% 12.0% 22.9% 44.6% 47.8% 66.8%
Russell 1000 Value Index 0.6% 6.5% 19.7% 35.5% 64.6% 99.3%
Source: BlackRock
At month end
Net asset value - capital only: 148.02p
Net asset value - cum income: 149.93p
Share price: 145.50p
Discount to cum income NAV: 3.0%
Net yield*: 3.2%
Total assets including current year revenue: £103.4m
Gearing: Nil
Options overwrite: 17.87%
Ordinary shares in issue**: 68,949,044
Ongoing charges***: 1.24%
* Based on dividends of 1.20p per share declared on 3 August 2016 and 4 May
2016 and 1.10p per share declared on 18 February 2016 and 4 November 2015.
** Excluding 31,412,261 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 24.8
Health Care 14.8
Industrials 12.0
Energy 11.3
Information Technology 9.2
Consumer Staples 7.3
Consumer Discretionary 6.0
Utilities 5.4
Materials 3.4
Telecommunication Services 2.3
Net current assets 3.5
-----
100.0
=====
Country Analysis Total Assets (%)
USA 89.3
United Kingdom 2.2
France 2.0
Canada 1.4
Netherlands 0.8
China 0.5
Ireland 0.3
Net current assets 3.5
-----
100.0
=====
Ten Largest Investments
Company Country of Risk Total Assets (%)
Pfizer USA 3.4
JPMorgan Chase USA 3.2
Bank of America USA 3.0
General Electric USA 3.0
Wells Fargo USA 2.5
Citigroup USA 2.3
Merck USA 2.2
Microsoft USA 2.2
Occidental Petroleum USA 2.0
Exxon Mobil USA 1.9
Bob Shearer and Tony DeSpirito, representing the Investment Manager, noted:
Performance
For the one month period ended 30 September 2016, the Company's NAV decreased
by 0.2% while the share price increased by 3.1% (all on a total return basis in
sterling). The Company's benchmark, the Russell 1000 Value Index, gained 0.6%
for the period.
The largest contributor to relative performance during the month was stock
selection in the health care sector. Notably, an overweight to UnitedHealth
Group and Quest Diagnostics in the health care providers & services industry
proved to be beneficial. An underweight to the real estate sector also added to
relative performance, as did stock selection in telecom services. Lastly, stock
selection in financials contributed modestly to relative returns for the month.
The largest detractor from relative performance was stock selection in the
energy sector. Notably, an overweight to Occidental Petroleum and not owning
benchmark holding EOG Resources proved to be costly. Stock selection in the
information technology and consumer discretionary sectors also dampened
relative returns, as did stock selection in the industrials and consumer
staples sectors. Notable stock-level detractors for the month included The
Kroger Co., a grocery store operator, and Wells Fargo, a diversified U.S. bank.
Transactions/Options
Transactions: During the month of September we increased our allocation to the
energy sector by adding to our positions in Hess Corporation and Suncor Energy.
Conversely, we decreased our allocation to the tobacco industry by trimming our
positions in Altria Group and Reynolds American Inc. Lastly, we trimmed our
exposure to Home Depot and used the proceeds to increase our position in
Publicis Groupe SA.
Options: As at 30 September 2016, the Company's options exposure was 17.87%
and the delta of the options was 90.07%.
Positioning
The Company is currently overweight to the health care, industrials, consumer
discretionary, financials, and materials sectors. We are underweight to the
real estate, energy, consumer staples, telecom, utilities, and information
technology sectors.
18 October 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 : TRUST PLC - Portfolio Update
October 18, 2016 at 12:21 pm EDT
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© PRNewswire - 2016
