BLACKROCK SUSTAINABLE AMERICAN INCOME TRUST PLC
BLACKROCK NORTH AMERICAN INCOME TRUST plc
All information is at 31 December 2015 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 0.9% 10.1% 7.0% 5.0% 43.3%
Share price 2.5% 10.8% 7.1% 1.4% 27.8%
Russell 1000 Value Index -0.1% 8.6% 3.3% 1.7% 59.7%
Source: BlackRock
At month end
Net asset value - capital only: 125.18p
Net asset value - cum income: 126.68p
Share price: 114.50p
Discount to cum income NAV: 9.6%
Net yield*: 3.8%
Total assets including current year revenue: £97.5m
Target yield: 4.4p
Gearing: 0.7%
Options overwrite: 15.83%
Ordinary shares in issue**: 76,989,044
Ongoing charges***: 1.24%
* Based on dividends of 1.10p per share each declared on 4 November 2015, 5
August 2015 and 6 May 2015 and 1.00p per share declared on 12 February 2015.
** Excluding 23,372,261 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.
Sector Analysis Total Assets (%)
Financials 26.1
Health Care 14.2
Industrials 13.1
Information Technology 9.8
Energy 9.4
Consumer Staples 8.0
Consumer Discretionary 7.7
Utilities 5.9
Materials 4.0
Telecommunication Services 2.5
Net current liabilities (0.7)
-----
100.0
=====
Country Analysis Total Assets (%)
USA 96.8
France 1.5
United Kingdom 1.3
China 0.3
Canada 0.3
Australia 0.3
Netherlands 0.2
Net current liabilities (0.7)
-----
100.0
=====
Ten Largest Investments
Company Country of Risk Total Assets (%)
JPMorgan Chase USA 4.3
Wells Fargo USA 4.0
General Electric USA 3.4
Citigroup USA 3.2
Pfizer USA 3.1
Home Depot USA 2.6
Exxon Mobil USA 2.5
Intel USA 2.5
Microsoft USA 2.4
Merck USA 2.2
Bob Shearer and Tony DeSpirito, representing the Investment Manager, noted:
Performance
For the one month period ended 31 December 2015, the Company's NAV increased by
0.9% while the share price increased by 2.5% (all in sterling). The Company's
benchmark, the Russell 1000 Value Index, declined by -0.1% for the period.
The largest contributor to relative performance was a combination of stock
selection and an underweight to the energy sector; in particular, not owning
benchmark holding Kinder Morgan proved to be beneficial. Stock selection in
industrials also contributed positively, led by overweight positions in
aerospace & defence operators Raytheon and Northrop Grumman. A combination of
stock selection and an overweight to health care and stock selection in
consumer discretionary also added to relative returns for the month.
The largest detractor from relative performance was an underweight to the real
estate investment trusts industry. A combination of stock selection and an
underweight to information technology also hurt relative returns, as did stock
selection in telecommunication services. An overweight to materials also
modestly detracted from relative performance for the period.
Transactions/Options
Transactions: During the month, we increased our exposure to the health care
sector by initiating a new position in Aetna and increasing our allocation to
Anthem. These trades were sourced with cash as well as through trimming our
exposure to health care holding UnitedHealth Group. We also initiated a new
position in Pioneer Natural Resources, an energy exploration and production
operator, and eliminated our position in insurer ACE Limited.
Options: As of 31 December 2015, the Company's options exposure is 15.83% and
the delta of the options is 94.01%.
Positioning
The Company is currently overweight to the industrials, consumer discretionary,
health care, materials and consumer staples sectors. We maintain a neutral
weighting in telecom services and are underweight to the financials, energy,
information technology and utilities sectors.
19 January 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
January 19, 2016 at 11:26 am
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© PRNewswire - 2016
