BLACKROCK SUSTAINABLE AMERICAN INCOME TRUST PLC
BLACKROCK NORTH AMERICAN INCOME TRUST plc
All information is at 31 December 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 3.3% 13.8% 19.6% 38.2% 65.9% 98.1%
Share price 7.4% 17.4% 31.5% 53.3% 68.4% 95.8%
Russell 1000 Value 3.6% 12.1% 19.4% 40.0% 71.6% 123.5%
Index
Source: BlackRock
At month end
Net asset value - capital only: 168.15p
Net asset value - cum income: 169.32p
Share price: 169.50p
Premium to cum income NAV: 0.1%
Net yield*: 2.8%
Total assets including current year revenue: £116.7m
Gearing: Nil
Options overwrite: 17.58%
Ordinary shares in issue**: 68,949,044
Ongoing charges***: 1.04%
* Based on dividends of 1.20p per share declared on 3 November, 3 August and 4
May 2016 and 1.10p per share declared on 18 February 2016.
** 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 2016.
Benchmark
Sector Analysis Total Assets (%)
Financials 27.8
Health Care 14.2
Energy 11.5
Industrials 10.2
Information Technology 9.4
Consumer Staples 6.9
Consumer Discretionary 5.4
Utilities 5.3
Materials 3.4
Telecommunication Services 2.2
Net current assets 3.7
-----
100.0
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Country Analysis Total Assets (%)
USA 88.6
United Kingdom 2.3
France 2.0
Canada 1.7
Netherlands 0.8
Ireland 0.5
China 0.4
Net current assets 3.7
-----
100.0
=====
Ten Largest Investments
Company Country of Risk Total Assets (%)
Bank of America USA 4.3
JPMorgan Chase USA 3.9
Pfizer USA 3.4
Wells Fargo USA 2.9
Citigroup USA 2.8
General Electric USA 2.6
Microsoft USA 2.2
Oracle USA 2.0
Merck USA 2.0
Occidental Petroleum USA 1.8
Bob Shearer and Tony DeSpirito, representing the Investment Manager, noted:
Performance
For the one month period ended 31 December 2016, the Company's NAV increased by
3.3% whilst the share price rose by 7.4% (all in sterling). The Company's
benchmark, the Russell 1000 Value Index, gained 3.6% for the period.
The largest contributor to relative performance during the month was stock
selection in the energy sector. Notably, our position in non-benchmark holding
Total (+9.6% in GBP) and our overweight to Hess Corporation (+11.0% in GBP)
proved to be beneficial. Stock selection in consumer staples also added to
relative returns as our decision to own non-benchmark holding Kroger and to not
own benchmark holding Wal-Mart Stores, contributed positively. Lastly, stock
selection in the financials and materials sectors also added modestly to
relative performance.
The largest detractor from relative performance was stock selection in the
aerospace & defence industry. Notably, our positions in non-benchmark holdings
Northrop Grumman (-5.5% in GBP) and Lockheed Martin (-4.7% in GBP) proved to be
costly. Stock selection in telecommunication services also dampened relative
returns, as did our underweight to the real estate sector. Lastly, an
overweight to the health care providers & services industry hurt relative
performance during the month.
Transactions/Options
Transactions: Notable portfolio changes included increasing our allocation to
the technology sector through adding to positions in Intel and Oracle. In
materials, we reduced our allocation to E.I. du Pont de Nemours and Company and
used the proceeds to increase our position in Dow Chemical Company. Lastly, we
trimmed our exposure to existing positions in Bank of America, General Electric
and Raytheon.
Options: As at 31 December 2016, the Company's options exposure was 17.58% and
the delta of the options was 87.92%.
Positioning
The Company is currently overweight to the health care, consumer discretionary,
financials and materials sectors. We are approximately equal-weight in the
industrials and information technology sectors, and underweight to real estate,
telecommunications, energy, utilities, and consumer staples.
19 January 2017
BLACKROCK NORTH AMERICAN INCOME : TRUST PLC - Portfolio Update
January 19, 2017 at 10:21 am EST
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© PRNewswire - 2017
