News Column

BLACKROCK NORTH AMERICAN INCOME TRUST PLC - Portfolio Update

August 18, 2014



BLACKROCK NORTH AMERICAN INCOME TRUST plc All information is at 31 July 2014 and unaudited. Performance at month end with net income reinvested One Three Six Since Month months months launch (24 Oct 2012) Net asset value -0.8% 0.2% 3.5% 19.4% Share price -3.9% -3.7% -3.2% 10.5% Russell 1000 Value Index -0.4% 2.4% 7.4% 36.0% Source: BlackRock At month end Net asset value - capital only: 109.94p Net asset value - cum income: 111.09p Share price: 104.75p Discount to cum income NAV: 5.7% Net yield*: 3.8% Total assets including current year revenue: 111.7m Target annual dividend: 4.0p Gearing: 1.3% Options overwrite: 17.85% Ordinary shares in issue: 100,361,305 Ongoing charges**: 1.4% *Based on dividends of 1p per share each declared on 3 October 2013, 13 February 2014, 14 May 2014 and 6 August 2014. ** 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 2013. Benchmark Sector Analysis Total Assets (%) Financials 24.0 Industrials 14.6 Energy 13.4 Consumer Discretionary 9.8 Health Care 9.6 Consumer Staples 8.8 Information Technology 7.1 Materials 6.4 Utilities 5.2 Telecommunication Services 2.2 Net current liabilities (1.1) ----- 100.0 ===== Country Analysis Total Assets (%) USA 93.9 Canada 2.7 France 1.5 Australia 1.3 United Kingdom 1.2 Netherlands 0.5 Net current liabilities (1.1) ----- 100.0 ===== Ten Largest Investments(in alphabetical order) Company Country of Risk Chevron USA Comcast USA Exxon Mobil USA General Electric USA Home Depot USA JPMorgan Chase USA Merck USA Microsoft USA Pfizer USA Wells Fargo USA Bob Shearer and Kathleen Anderson, representing the Investment Manager, noted: Performance For the one month period ended 31 July 2014, the Company's NAV decreased by 0.8% while the share price declined by 3.9% (all in sterling). The Company's benchmark, the Russell 1000 Value Index, fell by 0.4% for the period. On a relative basis, the largest contributor to relative performance was strong stock selection in the industrials sector, followed by a combination of stock selection and a small underweight position in the utilities sector. Individual security selection within information technology, as well as the combination of strong selection and a marginal overweight within telecommunications, also added to relative performance during the month. The largest detractor from relative performance for the month was stock selection within consumer staples, particularly owning Coca-Cola, Diageo and Kraft, all out-of-index positions that posted negative returns for the month. Selection within both financials and consumer discretionary were also weaker during the quarter; and the combination of a general underweight in information technology and an overweight in industrials also detracted from performance. Transactions/Options Transactions: In July, we sold Veritiv, a small-cap, non-dividend paying spin out from our position in International Paper. There were no other complete purchases or sales during the period. As of 31 July 2014, the Company's options exposure was 17.85% and the delta of the options was 96.57%. Positioning We are currently overweight to the industrials, consumer discretionary, materials, consumer staples and telecom sectors. We are underweight to the financials, health care, information technology, utilities and energy sectors. Conversations with our management teams and economic data points (ISM, employment, housing, etc) continue to support our view that the US economy is slowly gaining strength. This economic improvement, the end of QE3, and ultimately Fed action will likely cause interest rates (and volatility) to drift higher. As the bounty of abundant liquidity is withdrawn, we expect profitable companies with strong balance sheets, dominant competitive positions and consistent earnings and dividend growth potential to outperform. 18 August 2014 ENDS 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.




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Source: PR Newswire (UK Disclosure)


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