5th Feb 2021 19:10
Blackrock North American Income Trust PLC - investment company with portfolio of primarily large-cap US equities - Net asset value ends October 31 at 158.06 pence, down from 182.13p at the same point the year before. Total annual dividend unchanged year on year at 8.0p. NAV total return negative 8.9% versus Russell 1000 Value Index losing 7.5%.
"Value stocks in general lagged the broader US indices, as technology stocks soared. Our underperformance of the Russell 1000 Value Index in the year was a reflection of stock selection and a negative contribution from option writing," Chair Simon Miller says.
Notes NAV per share at start of February had improved 12% since end of October.
Miller adds: "World equities appear to be on a firmer footing. There is increased optimism with the uncertainty of the US election now over and with the distribution of Covid-19 vaccines. The current economic recovery in the US could be faster than the one after the global financial crisis, as the upbeat news on the vaccine gives greater confidence that the economic re-start can accelerate further in 2021.
"There is a strong case that value stocks should now be well placed to outperform growth stocks as the economic picture brightens. The portfolio managers consider well capitalised companies with strong management teams and good cash generation are well placed in the current environment."
Current stock price: 170.00 pence
Year-to-date change: up 2.6%
By Paul McGowan; [email protected]
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