12th Feb 2020 17:45
(Alliance News) - BlackRock North American Income Trust PLC on Wednesday said it underperformed its benchmark in financial 2019 mainly due to uncertainty arising from US-China trade war and slowing earnings and jobs growth.
The investment company said that its net asset value total return with dividend reinvested for the year to the end of October 2019 was 8.5%, while the company's benchmark the Russell 1000 Value index returned 9.8%. At the close of business on Monday, the company's NAV increased by 6.3% since the end of financial 2019.
BlackRock North American's NAV per share for financial 2019 stood at 182.13 pence, up from 175.60p reported the year prior.
"During the year, the US/China trade war and associated uncertainty led to businesses becoming more cautious and holding back on capital expenditure. Similarly, earnings and jobs growth slowed. However, the record long US economic expansion was supported by healthy household spending, and monetary policy easing by central bank sustained the expansion." said Chair Simon Miller.
BlackRock' share price at the end of October stood at 186.50p, representing a 2.4% premium to NAV. The stock closed 0.3% up at 192.50p each on Wednesday in London.
The trust declared a fourth interim dividend of 2.00p per share, taking its total dividend for the year to 8p, unchanged from the year before.
Looking ahead, Miller added: "The surge in protectionism and geopolitical tensions remain as ongoing risks. However, even as global uncertainties mount - including the disruption caused by the coronavirus - consumer spending and the housing market should continue to support US economic growth during 2020."
By Ife Taiwo; [email protected]
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