BLACKROCK NORTH AMERICAN INCOME TRUST plc All information is at 31 October 2013 and unaudited. Performance at month end with net income reinvested One month Since launch (24 Oct 2012) Net asset value +4.7% +17.3% Share price +3.2% +16.5% Russell 1000 Value Index +5.2% +27.4% Source: BlackRock At month end Net asset value - capital only: 111.04p Net asset value - cum income: 111.16p Share price: 112.50p Premium to cum income NAV: 1.2% Net yield*: 3.56% Total assets including current year revenue: £111.00m Target yield**: 4.00% Gearing: 0.5% Options overwrite: 17.56% Ordinary shares in issue: 99,361,305 During the month, the Company has issued 14,872,805 shares, including a C Share Conversion of 14,022,805 shares *Based on dividends of 1p per share each declared on 14 February 2013, 14 May 2013, 6 August 2013 & 3 October 2013. ** Based on issue price of 100p. Benchmark Sector Analysis Total Assets (%) Financials 20.9 Energy 13.7 Industrials 13.6 Consumer Staples 12.3 Consumer Discretionary 9.3 Health Care 9.2 Materials 7.0 Utilities 5.9 Information Technology 5.3 Telecommunication Services 3.7 Net current liabilities -0.9 ----- 100.0 ===== Country Analysis Total Assets (%) USA 92.0 Canada 2.7 Australia 1.7 France 1.5 Netherlands 1.4 United Kingdom 1.3 Peru 0.3 Net current liabilities -0.9 ----- 100.0 ===== Ten LargestInvestments (in alphabetical order) Company Country of Risk Chevron USA Comcast USA Exxon Mobil USA General Electric USA Home Depot USA JP Morgan Chase USA Merck & Co USA Pfizer USA Verizon USA Wells Fargo USA Bob Shearer and Kathleen Anderson, representing the Investment Manager, noted: Performance For the one month ended 31 October 2013 the Company posted a 4.7% increase in its NAV while the share price increased by 3.2% (all in sterling). The Company's benchmark, the Russell 1000 Value Index, returned 5.2%. On a relative basis, the largest contributor to the Company's performance during the period was a combination of stock selection and an underweight to the health care sector, followed by an overweight to consumer staples and an underweight to financials. An overweight to industrials, materials and telecommunication services also added modestly to relative returns, as did stock selection in utilities. The largest detractor from relative performance for the month was security selection in the industrials and materials sectors. Stock selection in consumer staples and energy also hurt relative returns. Lastly, stock selection in consumer discretionary, information technology and financials modestly hurt relative returns for the period. Transactions/Gearing Transactions: During the month, we increased our weighting to The Chubb Corporation and reduced our weighting to ACE Limited. These were the only notable transactions for the month of October. As at 31 October 2013, the Company's options exposure was 17.56% and the delta of the options was 90.89%. Positioning The Company is currently overweight to the consumer staples, materials, industrials, consumer discretionary and telecommunication services sectors. We are underweight to the financials, health care, information technology, energy and utilities sectors. Current Outlook We continue to focus on identifying inherently attractive businesses to invest in for the long term. The Company remains positioned in higher-quality, cash rich, dividend growth companies with defensible competitive advantages and the ability to self-fund should markets become more volatile. We are overweight consumer staples, materials and industrials given our belief that these sectors are poised to benefit from a rebound in US housing, global growth and persistent (albeit slowing) industrialization in developing markets. As the potential for rate increases becomes a reality, we believe significant risk can be found in the lower-capitalised, fundamentally weaker, segment of the US equity market, where the structural decline in businesses may have been masked by advances in stock prices in recent quarters. Although this segment of the market has recently performed well, we simply believe that this performance cannot last forever. We have positioned the portfolio to benefit from a shift in market leadership and will continue to emphasize growth of income, relative protection and long term total return as the core of our process. Overall, the portfolio remains well-insulated but ready to participate should markets continue to experience gains through the end of the year. ENDS 19 November 2013 Latest information is available by typing www.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. END -0- Nov/19/2013 14:37 GMT
BLACKROCK NORTH AMERICAN INCOME TRUST PLC: Portfolio Update
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