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BlackRock North American Income Trust NAV increased by 11.3% in November

BlackRock North American Income Trust plc (LON:BRNA) has announced its latest portfolio update.

All information is at 30 November 2020 and unaudited.

Discover more about the trust at blackrock.com/uk/brna

Performance at month end with net income reinvested 


 
One
Month
Three
Months
Six
Months
One
Year
Three
Years
Five
Years
Net asset value11.3%8.5%6.7%-1.7%16.7%69.7%
Share price13.1%7.9%4.6%-10.5%15.0%79.1%
Russell 1000 Value Index9.9%9.5%8.8%-1.4%18.2%69.1%

At month end

Net asset value – capital only:173.61p
Net asset value – cum income:173.95p
Share price:162.50
Discount to cum income NAV:6.6%
Net yield1:4.9%
Total assets including current year revenue:138.8m
Gearing:Nil
Options overwrite17.9%
Ordinary shares in issue2:79,784,044
Ongoing charges3:1.1%

1 Based on four quarterly interim dividends of 2.00p per share declared on 7 November 2019 for the year ended 31 October 2019 and 20 March 2020, 5 May 2020 and 6 August 2020 for the year ended 31 October 2020, and based on the share price as at close of business on 30 November 2020.

² Excluding 20,577,261 ordinary shares held in treasury.

³ 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 2019.

Sector AnalysisTotal Assets (%)
Financials25.8
Health Care16.9
Information Technology12.4
Consumer Staples8.5
Energy7.1
Communication Services6.8
Industrials6.7
Consumer Discretionary4.9
Utilities3.9
Materials2.2
Net Current Assets4.8
—–
100.0
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Country AnalysisTotal Assets (%)
United States74.8
Netherlands4.8
United Kingdom4.5
Germany3.9
France2.3
Ireland2.1
Switzerland1.5
Norway0.8
Canada0.5
Net Current Assets4.8
—–
100.0
=====
Top 10 HoldingsCountry% Total Assets
Verizon CommunicationsUnited States3.4
CitigroupUnited States3.1
Bank of AmericaUnited States3.1
American International GroupUnited States2.5
Wells FargoUnited States2.5
Samsung ElectronicsUnited States2.4
Comcast CorporationUnited States2.4
AnthemUnited States2.3
BAE SystemsUnited Kingdom2.2
SanofiFrance2.1

Tony DeSpirito, Franco Tapia and David Zhao, representing the Investment Manager, noted:

For the one-month period ended 30 November 2020, the Company’s NAV increased by 11.3% and the share price by 13.1% (all in sterling). The Company’s benchmark, the Russell 1000 Value Index, returned 9.9% for the period.

The largest contributor to relative performance was stock selection in the financials sector. Notably, selection decisions in the banks and insurance industries proved beneficial. In health care, stock selection in the health care equipment and supplies and pharmaceuticals industries boosted relative performance. In consumer discretionary, stock selection in specialty retail helped relative results. Other contributors during the month included stock selection and allocation decisions in utilities, stock selection in consumer staples, and overweight exposure to energy.

The largest detractor from relative performance was stock selection in the communication services sector. Notably, selection decisions in the media industry proved costly during the month, as did a lack of exposure to entertainment. In information technology, stock selection in the IT services and software industries weighed on relative results. Underweight exposure to the industrials sector hampered relative returns, although stock selection in the sector more than offset the negative impact experienced from underweight exposure.

The portfolio’s option overwriting strategy detracted from relative performance during the month.

Transactions/Options

Transactions: In November, the portfolio initiated new positions in Cigna and Leidos Holdings Allocations. Cisco Systems, Cognizant Technology Solutions and Microsoft were also increased during the month. Conversely, we reduced our exposure to Lowe’s Companies.

Options:  As of 30 November 2020, the Company’s options exposure was 17.9% and the delta of the options was 84.6.

Positioning

As of the period end, the Company’s largest overweight positions relative to the benchmark were in the financials, health care and information technology sectors. The Company’s largest underweight positions relative to the benchmark were in the industrials, real estate and consumer discretionary sectors.

Source: BlackRock. Data as of 30 November 2020.

Discover more about the BlackRock North American Income Trust plc at blackrock.com/uk/brna

22 December 2020