Are Overdraft Bank Fees Tax Deductible

BLACKROCK NORTH AMERICAN INCOME TRUST PLC – Half-yearly Report.

 BlackRock North American Income Trust plc Performance Record
Financial Highlights
                                                                             30
                                                                         April
                                                                          2013 Attributable to ordinary shareholders Net assets ([pounds
sterling]'000)                                                      84,693 Net asset value per ordinary share
111.18p Ordinary share price (mid-market)
114.38p Premium to cum income net asset value
2.9%
                                                                      -------- Performance for the period since launch to 30 April 2013 Net
asset value per share (with income reinvested)
+14.2%
                                                                      -------- Russell 1000 Value Index
+19.2%
                                                                      -------- Ordinary share price (with income reinvested)
+15.4%
                                                                      -------- Chairman's Statement for the period to 30 April 2013
Overview This is my first formal report on your Company since it came to
the market in October last year. I am delighted to report good progress.
The Company's results for the period show a rise in net asset value
("NAV") of 14.2%, the shares continue to command a premium to
NAV and, since launch, a further 12,575,000 shares have been issued in
response to investor demand. The economic challenges following the 2007
to 2009 financial crisis were still very much in evidence during the
period under review. However, despite a continued low growth
environment, US macroeconomic data demonstrated improving economic
momentum. Although there was heightened focus on the resolution of the
'fiscal cliff' and higher tax proposals, the housing market is
very much on the road to recovery, employment growth was positive and
manufacturing data improved. Companies also took advantage of the very
low cost of debt and benefited from healthy balance sheets and the
highest level of free cash flows. Your Board believes that high quality
stocks which have the ability to grow their dividends consistently will
outperform over time.  The Manager continues to focus on attractively
valued blue chip stocks with strong balance sheets, sustainable
competitive advantages and consistent revenue and earnings growth. This
high-quality focus by the Manager has served investors well over the
long term, although it has recently contributed to short term relative
underperformance against the benchmark index in a market where lower
quality, lower margin companies with higher debt levels have
outperformed. For the period since launch on 24 October 2012 to 30 April
2013, the Company's NAV rose by 14.2%, compared with a rise of
19.2% in the Russell 1000 Value Index. During the same period, the share
price rose by 15.4% (all figures in sterling terms with income
reinvested). Since the period end, the Company's NAV has returned
0.4% and the share price has returned 1.1% (in sterling with income
reinvested). Share issues Since inception, the Company's shares
have consistently traded at a premium to their NAV. In the light of
continuing demand for the shares and having regard to the benefits of
enlarging the Company, a general meeting was held on 8 February 2013 to
seek further shareholder authority to issue new shares under a Placing
Programme. In the period since launch in October 2012 and up to the date
of this report, the Company has allotted a further 12,575,000 shares for
a total consideration of [pounds sterling]13,739,000 (before deduction
of issue costs) and there are now 77,575,000 shares in issue. Earnings
and dividends Revenue earnings per share for the period to 30 April 2013
amounted to 2.09p based on the weighted average number of shares in
issue during the period. The target for the year ending 31 October 2013
is to pay dividends amounting to at least 4.00p per share. The first
quarterly dividend of 1.00p per share was paid on 2 April 2013 and the
second quarterly dividend of 1.00p per share will be paid on 2 July 2013
to shareholders on the register on 24 May 2013. As a consequence of
issuing new shares pursuant to the Placing Programme, there is a slight
shortfall in revenue to cover the second interim dividend payment
although it should be noted that the issue of new shares has provided a
gross capital uplift of [pounds sterling]321,000, including income of
[pounds sterling]84,000. Further to the Company's Prospectus and an
order of the High Court of Justice (Chancery Division) dated 12 December
2012, the cancellation of the Company's share premium account and
the creation of a new special reserve was approved. Accordingly, the
Company has sufficient distributable reserves to support the dividend
policy and we expect that any deficit of income to dividend payable will
be recouped by the year end. Tender offer In view of the fact that since
launch the Company's shares have traded at a premium to NAV, the
Board announced on 14 May 2013 its intention not to implement the first
tender offer as at 31 July 2013. Alternative Investment Fund
Managers' Directive As mentioned on pages 12 and 13 of the
Company's Prospectus the Alternative Investment Fund Managers'
Directive (the "Directive") is due to be transposed by EU
member states into national law in 2013. The implementation of the
Directive will require all investment trusts to appoint an alternative
investment fund manager ("AIFM") or become an AIFM themselves
and also to appoint an independent depositary. The latter will fulfil a
broader role than that currently performed by a custodian, and will be
obliged to ensure that companies comply with the relevant rules on
portfolio composition and diversification. We expect the implementation
of the Directive to be effective from 22 July 2013, although it is
currently anticipated that the Financial Conduct Authority will permit a
transitional period of one year within which UK AIFMs must seek
authorisation. The Board is currently taking independent advice from
Dickson Minto W.S. on the consequences for the Company and will inform
shareholders when we have decided on the most appropriate course of
action. Board of Directors We are very pleased to welcome Alice Ryder to
the Board today. Alice is an investment professional with more than 25
years experience, comprising the last decade as an investment consultant
in the charity sector and as a fund manager from 1985 to 2002. She will
also serve as a member of the Company's Audit and Management
Engagement Committee. Outlook Despite the volatility in markets over the
period since launch and the ongoing global macroeconomic concerns, we
believe the sector represents an appealing opportunity for investors.
Although the coming year is likely to see a further period of only
moderate growth, the headwinds are diminishing and the US economy
appears stronger with a better capitalised financial system in place. In
addition, US equities are currently trading at attractive valuations and
many companies are showing profit margins and cash levels above their
historical norms. The Investment Manager's focus on investing in
high quality, dividend paying, large-cap stocks at attractive valuations
offers the potential for long term stable income yields and superior
performance. Simon Miller Chairman 12 June 2013 Interim Management
Report and Responsibility Statement The Chairman's Statement and
the Investment Manager's Report give details of the important
events which have occurred during the period and their impact on the
financial statements. Principal risks and uncertainties A detailed
explanation of the risks relating to the Company was set out on pages 10
to 20 of the Company's Prospectus dated 14 September 2012. This
document is available on the website maintained by the Investment
Manager, BlackRock Investment Management (UK) Limited, at
www.blackrock.co.uk/brna. The principal risks faced by the Company can
be divided into various areas as follows: - Performance; -
Income/dividend; - Regulatory; - Operational; - Market; - Financial; -
Gearing; and - Third party risk In the view of the Board, there have not
been any changes to the fundamental nature of these risks since the
publication of the Company's Prospectus dated 14 September 2012,
and these principal risks and uncertainties are equally applicable to
the remaining six months of the financial year as they were to the
period under review. Related party disclosure and transactions with
Investment Manager The Investment Manager is regarded as a related party
under the Listing Rules and details of the management fees payable are
set out in note 4 and note 10. The related party transactions with the
Directors are set out in note 9. Going concern The Directors are
satisfied that the Company has adequate resources to continue in
operational existence for the foreseeable future and is financially
sound. For this reason, they have adopted the going concern basis in
preparing the financial statements. The Company has a portfolio of
investments which are considered to be readily realisable and is able to
meet all of its liabilities from its assets and income generated from
these assets. Directors' responsibility statement The Disclosure
and Transparency Rules ("DTR") of the UK Listing Authority
require the Directors to confirm their responsibilities in relation to
the preparation and publication of the Interim Management Report and
Financial Statements. The Directors confirm to the best of their
knowledge that: - the condensed set of financial statements contained
within the half yearly financial report has been prepared in accordance
with the International Accounting Standard 34 "Interim Financial
Reporting"; and - the Interim Management Report, together with the
Chairman's Statement and Investment Manager's Report, include
a fair review of the information required by 4.2.7R and 4.2.8R of the
FCA's Disclosure and Transparency Rules. The half yearly financial
report has been reviewed by the Company's auditor. The half yearly
financial report was approved by the Board on 12 June 2013 and the above
responsibility statement was signed on its behalf by the Chairman. Simon
Miller For and on behalf of the Board 12 June 2013 Investment
Manager's Report Market overview US equity markets traded
relatively flat in the closing months of 2012, before rebounding
strongly in the first four months of 2013, after the worst of the
nation's fiscal cliff had been averted. Signs of a steady
improvement in the US economy underpinned the rally and the large-cap
Russell 1000 Index posted a robust gain of 17.8% for the period ending
30 April 2013. Large-cap value stocks outperformed growth stocks during
this period, with the Russell 1000 Value Index gaining 19.2% while the
Russell 1000 Growth Index appreciated by 16.3%. US equities persevered
through flare-ups in the Eurozone as investors looked toward the
positive momentum building in economic data domestically. Key factors
included an improving labour market and rising home prices, while upside
surprises in manufacturing and retail sales figures also gave stocks a
boost. Fourth-quarter US gross domestic product (GDP) growth was revised
upward from a contraction of 0.1% to an expansion of 0.4%, and
first-quarter US GDP delivered 2.5% growth on an annualised basis.
Portfolio changes Upon inception, the portfolio was constructed to
reflect a higher degree of confidence in sectors and industries that, in
the team's view, are likely to benefit from positive demand growth,
market share gains and margin expansion over the course of a complete
business cycle. In most cases the companies purchased at portfolio
inception are global leaders with the potential to perform strongly,
generate high cash flow and grow dividends for shareholders in the near
term. As a result of bottom up construction, the portfolio's
strongest allocations, in absolute terms, resided in the financials,
industrials, energy and consumer staples sectors. Smaller portfolio
weights were in telecommunications, information technology, utilities
and materials. Given the low turnover, higher conviction nature of the
team's process and the longer term investment horizon, wholesale
changes are typically not made during any given monthly or quarterly
reporting period. Thus, relatively few changes were implemented in the
Company during the period ending on 30 April 2013. While weightings
relative to the Russell 1000 Value Index did remain largely unchanged
for the period, on an absolute basis we did make some structural changes
to the portfolio. We increased our exposure to the financials sector and
reduced our exposure to the industrials, telecommunication services,
utilities and consumer discretionary sectors. The rationale for these
transactions was two-fold. Firstly, we added incremental
beta/cyclicality to the portfolio and, secondly, we reduced exposure to
areas of the market we believe are more richly valued and offer weaker
growth prospects in the future. In financials, we initiated a position
in Citigroup, a US diversified bank with a global footprint. We added
Citigroup to the portfolio given the firm's improved capital
ratios, favourable valuation relative to peers and our belief in
Citigroup's commitment and ability to grow its dividend moving
forward. We also initiated positions in two regional banks during the
period, including Fifth Third Bank and SunTrust Banks. Both banks offer
a similar thesis - improving mortgage and loan growth given the US
housing recovery, attractive relative valuations and encouraging
prospects for delivering dividend growth to shareholders. In
industrials, we sold out of our position in Caterpillar given less
promising prospects in their mining segment, which accounts for
approximately one third of the firm's revenues. We believe global
output increases in iron ore production and slowing growth in Chinese
steel production will continue to depress iron ore prices over the short
to medium term. These dynamics are contributing to intensified
competition in the mining equipment market and, as a result, we removed
Caterpillar from the portfolio. Additionally, we sold out of our
position in Canadian National Railway given our belief that the stock
was fully valued and there was likely limited additional upside in the
short term. Lastly, we reduced our exposure to the utilities and
telecommunication sectors during the period. Given investor demand for
yield in a low interest rate environment, we have seen these sectors
increasingly bid-up relative to the rest of the equity market. Given
valuations, we sold out of utilities holdings such as Consolidated
Edison, FirstEnergy and Southern and telecom holdings such as Vodafone
and CenturyLink. The Company is currently overweight to consumer
staples, industrials, materials, consumer discretionary and
telecommunication services relative to the Russell 1000 Value Index. The
Company maintains a neutral weighting in utilities and is underweight to
the financials, health care, information technology and energy sectors.
Options overlay Over the last six months, volatility in markets has
generally been in a moderate decline as equity prices have moved higher
and the macroeconomic backdrop has improved notwithstanding a few small
and short lived spikes. As a result, derivative positioning has
generally been moving higher to take advantage opportunistically of
spikes in volatility and the rally in the underlying equity process. By
combining this opportunistic strategy with call options struck out of
the money, the overlay has provided incremental value to the portfolio
even in the face of a strong equity market. Looking ahead, we expect the
declines in volatility to moderate which should provide support for
option income. Positioning and outlook In the current environment, we
have positioned the portfolio to perform well in a wide range of
economic scenarios. This has been done by emphasising companies that
carry a diverse group of assets, have extensive customer bases among
both retail and institutional clients, and are less sensitive to broad
changes in macroeconomic variables. By taking less factor-specific risk,
the portfolio is better protected than the market, but able to capture
upside as equity markets and the broader economy gain momentum. By
owning companies that can participate in all parts of a cycle, not just
early or late-cycle names, we can feel better about the 'moat'
afforded the portfolio during less certain times. We continue to search
for brand leadership and industry dominance among our companies,
preferring to own a firm with the number 1 or number 2 products on the
shelf and not taking chances on concept stocks or companies with
something to prove. Markets have appreciated sharply in 2013 on the
heels of accommodative monetary policy, improving US housing and
employment data, and progressing investor sentiment. While many
companies have reported Q1 earnings with tempered guidance, we are
optimistic about a strong equity market for the remainder of 2013. Any
weakness up until this point has been driven largely by a hangover from
accumulated cost cutting over the past few years and a lack of
substantial revenue growth, which we believe will come as the initial
shock from higher taxes and health care costs begins to fade. Concerns
about a lack of leadership and political gridlock in Washington seems to
have abated for the time being and consumer confidence is returning to
more normal levels, hitting a four month high at the end of March.
Collectively, these factors should provide tailwinds for the US equity
market. Dividends in the marketplace have grown markedly in recent
quarters and look well positioned for continued growth. There are now
408 companies paying dividends in the S&P, close to a 15 year high,
and the value of dividends paid in the last twelve months was US$281
billion, an all-time record for the US equity market. With high cash
levels, the ability of companies to pay and grow dividends is evident
and the willingness on the part of corporate management teams looks
squarely in place given the demand for income in the market. We expect
that dividends and dividend growth will be a significant contributor to
total return for investors over the next couple of years and look
forward to an enriched dividend commitment from our companies in the
quarters to come. Bob Shearer and Kathleen Anderson BlackRock Investment
Management (UK) Limited 12 June 2013 Ten Largest Investments 30 April
2013 Chevron - 3.3% is the second largest integrated oil company in the
US with exploration, production and refining operations worldwide.
Chevron has one of the strongest balance sheets and lowest debt to
capital ratios among its peers and currently generates a sector leading
profitability of US$24.50 per barrel of oil equivalent. We believe the
firm's success in deep-water exploration in recent years will be a
significant driver of earnings growth moving forward. JPMorgan Chase -
3.2% is a US based diversified financial company with over US$2 trillion
in assets and operations in dozens of countries. JPMorgan's capital
base remains one of the strongest in the industry and it provides a
measure of safety and financial flexibility. Overall, we believe
JPMorgan offers strong earnings power while also affording shareholders
a dividend yield in the top-quartile of the S&P 500 Index. Wells
Fargo - 3.1% is a US diversified bank with over US$1 trillion in assets.
Wells boasts a strong and stable management team, led by CEO John
Stumpf, who has been with the firm for nearly 30 years. Wells Fargo is
an industry leader in cross-selling financial products and services,
which has built deep customer relationships and added to the bank's
pricing and earnings power. Pfizer - 2.4% is the world's largest
pharmaceuticals company with annual sales of approximately US$60
billion. Pfizer offers investors strong free cash flow, a history of
generating high returns on invested capital and an attractive and
consistent dividend yield. At this stage in the company's business
cycle, we believe it will be important for recently launched products to
be well-received in the market in order for pipeline momentum to
continue. Home Depot - 2.4% is the world's largest home improvement
retailer, with over 2,200 warehouse-format stores and more than 300,000
employees. The firm has been an immediate beneficiary of a recovering US
housing market and we continue to believe that upward earnings revisions
are likely as the segment continues to garner strength. Home Depot
remains committed to growing its dividend, raising its payout by 34% in
the first quarter of 2013. General Electric - 2.4% is a diversified
industrials conglomerate with operations in technology infrastructure,
energy infrastructure, home & business services and capital
services. The firm's strong management team, depth and breadth of
products and ability to secure pricing make it a desirable long term
holding. General Electric has demonstrated a remarkable ability to
change and evolve over time. Of the 12 companies Charles Dow chose to
make up his original Dow Jones industrial average in 1896, it is the
only one still in the index. Comcast - 2.3% is the largest operator in
the US cable industry, currently reaching 53 million households. We are
positive on the firm buying the rest of NBC Universal from General
Electric, notably, one year earlier than expected. Comcast is now unique
in the cable industry because they own the distribution network as well
as some of their own programming (television channels). We believe this
will help the firm offset rising cable costs better than some of its
competitors. Verizon Communications - 2.2% is the largest provider of
wire line and wireless communications in the United States, with 94
million retail customers. Verizon maintains strong industry positioning
given its network coverage (95% of the US population) and overall
network quality. Verizon's sustainable dividend yield of over 4%
continues to make the stock an attractive long term investment in the
portfolio. Exxon Mobil - 2.2% is an integrated oil and gas company based
out of the United States. The firm is one of only a few US companies to
boast an AAA credit rating. Exxon's geographic footprint and
diversified operations continue to make it an industry leader.
Management remains committed to generating shareholder returns, paying
almost US$40 billion in dividends and repurchasing approximately US$130
billion worth of stock over the last five years. Philip Morris
International - 2.1% is the second largest seller of cigarettes in the
world. The firm owns international rights to Marlboro, an iconic global
cigarette franchise which generates more sales volume than the next
three best-selling international brands combined. We believe Philip
Morris is a stable long term portfolio holding given its cash flow
generation of 30% of revenues and attractive 3.5% plus dividend yield.
Together, the ten largest investments represents 25.6% of the
Company's portfolio. All percentages reflect the value of the
holding as a percentage of total investments. Sector & Geographical
Breakdown as at 30 April 2013 Sector                 Australia
Canada     France  Netherlands       Peru         UK     United
Grand
                               %          %          %            %
%          %     States      Total
                                                                                                   %          % Basic Materials              1.7
-          -            -        0.3          -        3.7        5.7
                        ========   ========    =======     ========
========   ========   ========   ======== Consumer Goods
-          -          -          1.3          -        1.3       12.8
15.4
                        ========   ========    =======     ========
========   ========   ========   ======== Consumer Services
-          -          -            -          -          -        7.5
7.5
                        ========   ========   ========     ========
========   ========   ========   ======== Financials
-        2.0          -            -          -          -       17.4
19.4
                        ========   ========   ========     ========
========   ========   ========   ======== Health Care
-          -          -            -          -          -        8.4
8.4
                        ========   ========   ========     ========
========   ========   ========   ======== Industrials
-          -          -            -          -          -       13.9
13.9
                        ========   ========   ========     ========
========   ========   ========   ======== Oil & Gas
-        1.6        1.4          0.3          -          -       10.5
13.8
                        ========   ========   ========     ========
========   ========   ========   ======== Technology
-          -          -            -          -          -        4.5
4.5
                        ========   ========   ========     ========
========   ========   ========   ======== Telecommunications
-        0.3          -            -          -          -        3.6
3.9
                        ========   ========   ========     ========
========   ========   ========   ======== Utilities
-          -          -            -          -          -        7.5
7.5
                        --------   --------   --------     --------
--------   --------   --------   -------- Grand Total
1.7        3.9        1.4          1.6        0.3        1.3       89.8
100.0
                        ========   ========   ========     ========
========   ========   ========   ======== Investments as at 30 April
2013
                                                                Market
%
                                                                 value
of Company         Country      Sector
[pounds sterling]'000      total
                                                                        portfolio Chevron          United      Oil & Gas          Ordinary
2,849
                 States                         shares
                                                Options (9)       3.3
                                                   --------   --------
-------- JPMorgan Chase   United      Financials         Ordinary
2,706
                 States                         shares
                                                Options (4)       3.2
                                                   --------   --------
-------- Wells Fargo      United      Financials         Ordinary
2,610
                 States                         shares
                                                Options (7)       3.1
                                                   --------   --------
-------- Pfizer           United      Health Care        Ordinary
2,059
                 States                         shares
                                                Options (2)       2.4
                                                   --------   --------
-------- Home Depot       United      Consumer Services  Ordinary
2,064
                 States                         shares
                                                Options (12)       2.4
                                                   --------   --------
-------- General Electric United      Industrials        Ordinary
2,029        2.4
                 States                         shares
                                                   --------   --------
-------- Comcast          United      Consumer Services  Ordinary
1,951
                 States                         shares
                                                Options (6)       2.3
                                                   --------   --------
-------- Verizon          United      Telecommunications Ordinary
1,891 Communications   States                         shares
                                                Options (26)       2.2
                                                   --------   --------
-------- Exxon Mobil      United      Oil & Gas          Ordinary
1,837
                 States                         shares
                                                Options (1)       2.2
                                                   --------   --------
-------- Philip Morris    United      Consumer Goods     Ordinary
1,768 International    States                         shares
                                                Options (11)       2.1
                                                   --------   --------
-------- Merck            United      Health Care        Ordinary
1,736
                 States                         shares
                                                Options (8)       2.0
                                                   --------   --------
-------- Ace              United      Financials         Ordinary
1,689
                 States                         shares
                                                Options (5)       2.0
                                                   --------   --------
-------- IBM              United      Technology         Ordinary
1,640        1.9
                 States                         shares
                                                   --------   --------
-------- Deere            United      Industrials        Ordinary
1,543
                 States                         shares
                                                Options (2)       1.8
                                                   --------   --------
-------- BHP Billiton     Australia   Basic Materials    Ordinary
1,464        1.7
                                                shares
                                                   --------   --------
-------- McDonald's       United      Consumer Services  Ordinary
1,397       1.6
                 States                         shares
                                                Options (3)
                                                   --------    --------
-------- United           United      Industrials        Ordinary
1,336 Technologies     States                         shares
                                                Options (1)       1.6
                                                   --------   --------
-------- Enbridge         Canada      Oil & Gas          Ordinary
1,336
                                                shares
                                                Options (6)       1.6
                                                   --------   --------
-------- DuPont           United      Basic Materials    Ordinary
1,310
                 States                         shares
                                                Options (18)       1.5
                                                   --------   --------
-------- Bristol-Myers    United      Health Care        Ordinary
1,281 Squibb           States                         shares
                                                Options (4)       1.5
                                                   --------   --------
-------- Microsoft        United      Technology         Ordinary
1,293
                 States                         shares
                                                Options (20)       1.5
                                                   --------   --------
-------- US Bancorp       United      Finanicals         Ordinary
1,242
                 States                         shares
                                                Options (3)       1.5
                                                   --------   --------
-------- VF Corporation   United      Consumer Goods     Ordinary
1,236
                 States                         shares
                                                Options (11)       1.4
                                                   --------   --------
-------- Travelers        United      Financials         Ordinary
1,207 Companies        States                         shares
                                                Options (3)       1.4
                                                   --------   --------
-------- Raytheon         United      Industrials        Ordinary
1,215
                 States                         shares
                                                Options (13)       1.4
                                                   --------   --------
-------- AT&T             United      Telecommunications Ordinary
1,175
                 States                         shares
                                                Options (2)       1.4
                                                   --------   --------
-------- Coca-Cola        United      Consumer Goods     Ordinary
1,171
                 States                         shares
                                                Options (5)       1.4
                                                   --------   --------
-------- Total            France      Oil & Gas          Ordinary
1,170
                                                shares
                                                Options (7)       1.4
                                                   --------   --------
-------- Procter & Gamble United      Consumer Goods     Ordinary
1,104        1.3
                 States                         shares
                                                   --------   --------
-------- Diageo           UK          Consumer Goods     Ordinary
1,099
                                                shares
                                                Options (5)       1.3
                                                   --------   --------
-------- American Express United      Financials         Ordinary
1,090
                 States                         shares
                                                Options (5)       1.3
                                                   --------   --------
-------- Unilever    Netherlands      Consumer Goods     Ordinary
1,083
                                                shares
                                                Options (7)       1.3
                                                   --------   --------
-------- Honeywell        United      Industrials        Ordinary
945
                 States                         shares
                                                Options (3)       1.1
                                                   --------   --------
-------- Johnson &        United      Health Care        Ordinary
941        1.1 Johnson          States                         shares
                                                   --------   --------
-------- Prudential       United      Financials         Ordinary
935 Financial        States                         shares
                                                Options (5)       1.1
                                                   --------   --------
-------- United Parcel    United      Industrials        Ordinary
915 Services         States                         shares
                                                Options (1)       1.1
                                                   --------   --------
-------- Dominion         United      Utilities          Ordinary
911 Resources        States                         shares
                                                Options (2)       1.1
                                                   --------   --------
-------- NextEra Energy   United      Utilities          Ordinary
917
                 States                         shares
                                                Options (8)       1.1
                                                   --------   --------
-------- Mondelez         United      Consumer Goods     Ordinary
917 International    States                         shares
                                                Options (17)       1.1
                                                   --------   --------
-------- Occidental       United      Oil & Gas          Ordinary
917 Petroleum        States                         shares
                                                Options (12)       1.1
                                                   --------   --------
-------- Intel            United      Technology         Ordinary
877 Corporation      States                         shares
                                                Options (12)       1.0
                                                   --------   --------
-------- Bank of Nova     Canada      Financials         Ordinary
850        1.0 Scotia                                          shares
                                                   --------   --------
-------- Toronto-Dominion Canada      Financials         Ordinary
852 Bank                                            shares
                                                Options (6)       1.0
                                                   --------   --------
-------- General Mills    United      Consumer Goods     Ordinary
823
                 States                         shares
                                                Options (4)       1.0
                                                   --------   --------
-------- Northrop Grumman United      Industrials        Ordinary
827
                 States                         shares
                                                Options (13)       1.0
                                                   --------   --------
-------- Kimberly-Clark   United      Consumer Goods     Ordinary
802
                 States                         shares
                                                Options (3)       0.9
                                                   --------   --------
-------- Marathon         United      Oil & Gas          Ordinary
800 Petroleum        States                         shares
                                                Options (2)       0.9
                                                   --------   --------
-------- 3M Company       United      Industrials        Ordinary
794        0.9
                 States                         shares
                                                   --------   --------
-------- Union Pacific    United      Industrials        Ordinary
770
                 States                         shares
                                                Options (2)       0.9
                                                   --------   --------
-------- Lorillard        United      Consumer Goods     Ordinary
724
                 States                         shares
                                                Options (8)       0.8
                                                   --------   --------
-------- Citigroup        United      Financials         Ordinary
717
                 States                         shares
                                                Options (1)       0.8
                                                   --------   --------
-------- Fifth Third Bank United      Financials         Ordinary
715
                 States                         shares
                                                Options (6)       0.8
                                                   --------   --------
-------- Marathon Oil     United      Oil & Gas          Ordinary
711
                 States                         shares
                                                Options (3)       0.8
                                                   --------   --------
-------- Kinder Morgan    United      Oil & Gas          Ordinary
688 (Delaware)       States                         shares
                                                Options (5)       0.8
                                                   --------   --------
-------- SunTrust Banks   United      Financials         Ordinary
684
                 States                         shares
                                                Options (3)       0.8
                                                   --------   --------
-------- Public Service   United      Utilities          Ordinary
623 Enterprise Group States                         shares
                                                Options (4)       0.7
                                                   --------   --------
-------- American Water   United      Utilities          Ordinary
610 Works            States                         shares Association
Options (5)       0.7
                                                   --------   --------
-------- Praxair          United      Basic Materials    Ordinary
609
                 States                         shares
                                                Options (4)       0.7
                                                   --------   --------
-------- Mattel           United      Consumer Goods     Ordinary
604
                 States                         shares
                                                Options (9)       0.7
                                                   --------   --------
-------- MeadWestvaco     United      Industrials        Ordinary
583        0.7
                 States                         shares
                                                   --------   --------
-------- Walmart          United      Consumer Services  Ordinary
544
                 States                         shares
                                                Options (1)       0.6
                                                   --------   --------
-------- Altria           United      Consumer Goods     Ordinary
521
                 States                         shares
                                                Options (2)       0.6
                                                   --------   --------
-------- Heinz            United      Consumer Goods     Ordinary
499        0.6
                 States                         shares
                                                   --------   --------
-------- Newmont Mining   United      Basic Materials    Ordinary
497        0.6
                 States                         shares
                                                   --------   --------
-------- Dow Chemical     United      Basic Materials    Ordinary
488
                 States                         shares
                                                Options (7)       0.6
                                                   --------   --------
-------- Walt Disney      United      Consumer Services  Ordinary
464
                 States                         shares
                                                Options (2)       0.6
                                                   --------   --------
-------- American         United      Utilities          Ordinary
466 Electric Power   States                         shares
                                                Options (5)       0.5
                                                   --------   --------
-------- ConocoPhillips   United      Oil & Gas          Ordinary
446        0.5
                 States                         shares
                                                   --------   --------
-------- Schlumberger     United      Oil & Gas          Ordinary
445        0.5
                 States                         shares
                                                   --------   --------
-------- Kraft Foods      United      Consumer Goods     Ordinary
437
                 States                         shares
                                                Options (1)       0.5
                                                   --------   --------
-------- Sempra Energy    United      Utilities          Ordinary
442
                 States                         shares
                                                Options (5)       0.5
                                                   --------   --------
-------- Duke Energy      United      Utilities          Ordinary
420
                 States                         shares
                                                Options (1)       0.5
                                                   --------   --------
-------- Edison           United      Utilities          Ordinary
422 International    States                         shares
                                                Options (4)       0.5
                                                   --------   --------
-------- Weyerhaeuser     United      Financials         Ordinary
411
                 States                         shares
                                                Options (1)       0.5
                                                   --------   --------
-------- Quest            United      Health Care        Ordinary
405        0.5 Diagnostics      States                         shares
                                                   --------   --------
-------- Wisconsin Energy United      Utilities          Ordinary
407
                 States                         shares
                                                Options (5)       0.5
                                                   --------   --------
-------- Northeast        United      Utilities          Ordinary
399 Utilities        States                         shares
                                                Options (3)       0.5
                                                   --------   --------
-------- AbbVie           United      Health Care        Ordinary
396
                 States                         shares
                                                Options (5)       0.5
                                                   --------   --------
-------- Johnson Controls United      Consumer Goods     Ordinary
396
                 States                         shares
                                                Options (4)       0.5
                                                   --------   --------
-------- Spectra Energy   United      Utilities          Ordinary
389
                 States                         shares
                                                Options (2)       0.5
                                                   --------   --------
-------- American Tower   United      Financials         Ordinary
372
                 States                         shares
                                                Options (4)       0.4
                                                   --------   --------
-------- Abbott           United      Health Care        Ordinary
316 Laboratories     States                         shares
                                                Options (1)       0.4
                                                   --------   --------
-------- BCE              Canada      Telecommunications Ordinary
310
                                                shares
                                                Options (1)       0.4
                                                   --------   --------
-------- Phillips 66      United      Oil & Gas          Ordinary
290        0.3
                 States                         shares
                                                   --------   --------
-------- Southern Copper  Peru        Basic Materials    Ordinary
291
                                                shares
                                                Options (2)       0.3
                                                   --------   --------
-------- Rockwell         United      Industrials        Ordinary
283        0.3 Automation       States                         shares
                                                   --------   --------
-------- Automatic Data   United      Industrials        Ordinary
255 Processing       States                         shares
                                                Options (2)       0.3
                                                   --------   --------
-------- Olin             United      Basic Materials    Ordinary
242        0.3
                 States                         shares
                                                   --------   --------
-------- Chubb            United      Financials         Ordinary
238
                 States                         shares
                                                Options (1)       0.3
                                                   --------   --------
-------- Royal Dutch      Netherlands Oil & Gas          Ordinary
236 Shell                                           shares
                                                Options (1)       0.3
                                                   --------   --------
-------- PPL              United      Utilities          Ordinary
217
                 States                         shares
                                                Options (2)       0.2
                                                   --------   --------
-------- M&T Bank         United      Financials         Ordinary
206
                 States                         shares
                                                Options (1)       0.2
                                                   --------   --------
-------- ITC Holdings     United      Utilities          Ordinary
203        0.2
                 States                         shares
                                                   --------   --------
-------- Rockwell Collins United      Industrials        Ordinary
182        0.2
                 States                         shares
                                                   --------   --------
-------- Packaging        United      Industrials        Ordinary
141 Corporation of   States                         shares America
Options (1)       0.2
                                                   --------   --------
-------- Portfolio                                                       84,910      100.0
                                                   ========   ========
======== All investments are in ordinary shares unless otherwise stated.
The number of holdings as at 30 April 2013 was 95. The total number of
open options as at 30 April 2013 was 139. The negative valuations of
[pounds sterling]408,000 in respect of options held represent the
notional cost of repurchasing the contracts at market prices as at 30
April 2013. Statement of Comprehensive Income for the period from 30
August 2012 (date of incorporation) to 30 April 2013
                                         Notes     Revenue     Capital
Total
                                                      2013        2013
2013
                                                     [pounds
sterling]'000       [pounds sterling]'000       [pounds
sterling]'000
                                                (unaudited)(unaudited)(unaudited) Gains on investments held at fair value through profit or loss
-       7,844       7,844 Gains on foreign exchange
-         653         653 Income from investments held at fair value
through profit or loss                 3       1,237           -
1,237 Option premium income                        3         759
-         759 Other income                                 3           2
-           2
                                                  --------    --------
-------- Total income                                         1,998
8,497      10,495
                                                  --------    --------
------- Expenses Investment management fees                   4
(98)(293)(391) Other operating expenses                     5
(156)          -        (156)
                                                   --------    --------
-------- Total operating expenses (254)(293)(547)
                                                   --------    --------
-------- Net profit on ordinary activities before finance costs and
taxation                            1,744       8,204       9,948
Finance costs (3)(10)(13)
                                                   --------    --------
-------- Net profit on ordinary activities before taxation
1,741       8,194       9,935 Taxation (284)          71       (213)
                                                   --------    --------
-------- Net profit on ordinary activities after taxation
1,457       8,265       9,722
                                                   ========    ========
======== Earnings per ordinary share - basic and diluted
7        2.09p      11.85p      13.94p
                                                   ========    ========
======== The total column of this statement represents the
Company's Statement of Comprehensive Income, prepared in accordance
with International Financial Reporting Standards ("IFRS") as
adopted by the European Union. The supplementary revenue and capital
columns are both prepared under guidance published by the Association of
Investment Companies ("AIC"). All items in the above statement
derive from continuing operations. All income is attributable to the
equity holders of BlackRock North American Income Trust plc. The Company
does not have any other recognised gains or losses. The net profit for
the period disclosed above represents the Company's comprehensive
income. Statement of Changes in Equity for the period from 30 August
2012 (date of incorporation) to 30 April 2013
                          Notes    Called      Share     Capital
Special    Capital    Revenue      Total
                                       up    premium  redemption
reserve   reserves    reserve      [pounds sterling]'000
                                    share    account     reserve
[pounds sterling]'000      [pounds sterling]'000      [pounds
sterling]'000
                                  capital      [pounds
sterling]'000       [pounds sterling]'000
                                    [pounds sterling]'000 For the
period ended 30 April 2013 (unaudited) Total comprehensive income: Net
profit for the period              -          -          -           -
8,265      1,457      9,722 Transaction with owners, recorded directly
to equity: Issue of management shares    8       50          -
-           -           -          -         50 Issue of ordinary shares
8      762     76,377          -           -           -          -
77,139 Share issue costs                      -     (1,467)         -
-           -          -     (1,467) Cancellation of share premium
-    (63,213)         -      63,213           -          -          -
Redemption and cancellation of management shares (50)         -
50           -         (50)         -        (50) Dividends paid*
6        -          -          -           -           -
(701)(701)
                                --------   --------    --------
--------     --------   --------   -------- At 30 April 2013
762     11,697         50      63,213        8,215       756      84,693
                                ========   ========    ========
========     ========   ========   ======== * In respect of the period
ending 31 October 2013, an interim dividend of 1.00p per share was
declared on 14 February 2013 and paid on 2 April 2013. The transaction
costs incurred on the acquisition and disposal of investments are
included within the capital reserves and amounted to [pounds
sterling]76,000 for the period from 24 October 2012 to 30 April 2013.
Pursuant to a resolution of the Company passed on 7 September 2012, the
Company applied to the Court for cancellation of its share premium
account, so that the amount standing to the credit of that account
immediately following the issue of ordinary shares pursuant to the offer
be cancelled. Court approval was received on 12 December 2012, the order
was filed at Companies House on 19 December 2012 and [pounds
sterling]63,213,000 was transferred from the share premium account to a
special reserve which is a distributable reserve. Statement of Financial
Position as at 30 April 2013
                                                            Notes
30
                                                                         April
                                                                          2013
                                                                         [pounds sterling]'000
                                                                   (unaudited) Non current assets Investments held at fair value through profit
or loss                   85,318
                                                                      -------- Current assets Other receivables
1,336 Cash and cash equivalents
60
                                                                       --------
                                                                         1,396 Current liabilities Bank overdraft (65) Derivative financial
instruments (408) Other payables (1,548)
                                                                       --------
                                                                        (2,021)
                                                                       -------- Net current liabilities (625)
                                                                       -------- Net assets                                                              84,693
                                                                       ======== Equity attributable to equity holders Called up share capital
8          762 Share premium account
11,697 Capital redemption reserve
50 Special reserve                                                         63,213 Capital reserves
8,215 Revenue reserve
756
                                                                      -------- Total equity shareholders' funds
84,693
                                                                      ======== Net asset value per ordinary share                              7
111.18p
                                                                      ======== Cash Flow Statement for the period from 30 August 2012 (date of
incorporation) to 30 April 2013
                                                                            30
                                                                         April
                                                                          2013
                                                                         [pounds sterling]'000
                                                                   (unaudited) Operating activities Profit before taxation
9,935 Add back interest paid
13 Gains on investments held at fair value through profit or loss
(7,844)
                                                                      -------- Net movement on foreign exchange (653) Sale of investments held
at fair value through profit or loss           27,687 Purchases of
investments held at fair value through profit or loss (104,753) Increase
in other receivables (114) Increase in other payables
551 Increase in amounts due from brokers (1,213) Increase in amounts due
to brokers                                         520
                                                                      -------- Net cash outflow from operating activities before interest and
taxation (75,871)
                                                                      -------- Interest paid (13) Taxation on investment income included within
gross income (204)
                                                                      -------- Net cash outflow from operating activities (76,088)
                                                                      -------- Financing activities Dividends (701) Proceeds from issue of
ordinary shares                                  77,139 Share issue
costs paid (1,009)
                                                                      -------- Net cash inflow from financing activities
75,430
                                                                      -------- Decrease in cash and cash equivalents (658)
                                                                      -------- Cash and cash equivalents at start of period
- Effect of foreign exchange rate changes
653
                                                                      -------- Cash and cash equivalents at end of period (5)
                                                                      -------- Comprised of: Cash and cash equivalents
60 Bank overdraft (65)
                                                                      --------
                                                                            (5)
                                                                      ======== Notes to the Financial Statements for the period from 30 August
2012 (date of incorporation) to 30 April 2013 1. Principal activity The
principal activity of the Company is that of an investment trust company
within the meaning of section 1158 of the Corporation Tax Act 2010. The
financial statements cover the period from the date of incorporation on
30 August 2012 to 30 April 2013. The Company's shares were listed
on the Official List of the UK Listing Authority and admitted to trading
on the main market for listed securities of the London Stock Exchange on
24 October 2012. As this is the Company's first accounting period,
no comparative figures are presented. 2. Accounting policies The
principal accounting policies adopted by the Company are set out below.
(a) Basis of preparation The financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union ("EU") and
as applied in accordance with the provisions of the Companies Act 2006.
All of the Company's operations are of a continuing nature. The
Company's financial statements are presented in sterling because
that is the currency of the Company's share capital, the currency
of the country in which the majority of shareholders reside and the
currency in which the shareholders' dividend distributions will be
made. All values are rounded to the nearest thousand pounds ([pounds
sterling]'000) except where otherwise indicated. Insofar as the
Statement of Recommended Practice ("SORP") for investment
trust companies and venture capital trusts issued by the AIC, revised in
January 2009, is compatible with IFRS, the financial statements have
been prepared in accordance with the guidance set out in the SORP. A
number of new standards, amendments to standards and interpretations are
effective for annual periods beginning after 1 January 2013, and have
not been applied in preparing these financial statements. None of these
are expected to have a significant effect on the measurement of the
amounts recognised in the financial statements of the Company. However,
IFRS 9 "Financial Instruments" issued in November 2009 will
change the classification of financial assets, but is not expected to
have an impact on the measurement basis of the financial assets since
the majority of the Company's financial assets are measured at fair
value through profit or loss. IFRS 9 (effective 1 January 2015) deals
with classification and measurement of financial assets and its
requirements represent a significant change from the existing
requirements in IAS 39 in respect of financial assets. The standard
contains two primary measurement categories for financial assets: at
amortised cost and fair value. A financial asset would be measured at
amortised cost if it is held within a business model whose objective is
to hold assets in order to collect contractual cash flows, and the
asset's contractual terms give rise on specified dates to cash
flows that are solely payments of principal and interest on the
principal outstanding. All other financial assets would be measured at
fair value. The standard eliminates the existing IAS 39 categories of
"held to maturity", "available for sale" and
"loans and receivables". The standard is effective for annual
periods beginning on or after 1 January 2015 but is not yet approved by
the EU. Earlier application is permitted. The Company does not plan to
adopt this standard early. IFRS 10 Consolidated Financial Statements
(effective 1 January 2013) establishes a single control model that
applies to all entities including special purpose entities. The changes
introduced by IFRS 10 will require management to exercise significant
judgement to determine which entities are controlled, and therefore are
required to be consolidated by a parent. The Company does not prepare
consolidated financial statements hence the provisions of this statement
are not applicable. IFRS 11 Joint Arrangements (effective 1 January
2013) removes the option to account for jointly controlled entities
using proportionate consolidation. This is not applicable to the Company
as it holds no interests in joint arrangements. IFRS 12 Disclosure of
Involvement with Other Entities (effective 1 January 2013) now requires
additional disclosures that relate to an entity's interests in
subsidiaries, joint arrangements, associates and structured entities.
This is not applicable to the Company as it does not prepare
consolidated financial statements. IFRS 13 Fair Value Measurement
(effective 1 January 2013) establishes a single source of guidance under
IFRS for all fair value measurements. It does not change when an entity
is required to use fair value, but rather provides guidance on how to
measure fair value under IFRS when fair value is required or permitted.
The Company is currently assessing the impact that this standard will
have on the financial position and performance. (b) Presentation of the
Statement of Comprehensive Income In order to reflect better the
activities of an investment trust company and in accordance with
guidance issued by the AIC, supplementary information which analyses the
Statement of Comprehensive Income between items of a revenue and a
capital nature has been presented alongside the Statement of
Comprehensive Income. (c) Segmental reporting The Directors are of the
opinion that the Company is engaged in a single segment of business
being investment business. (d) Income Dividends receivable on equity
shares are recognised as revenue for the period on an ex-dividend basis.
Where no ex-dividend date is available, dividends receivable on or
before the period end are treated as revenue for the period. Provision
is made for any dividends not expected to be received. Special
dividends, if any, are treated as a capital or a revenue receipt
depending on the facts or circumstances of each particular case. The
return on a debt security is recognised on a time apportionment basis so
as to reflect the effective yield on the debt security. Interest income
and expenses are accounted for on an accruals basis. Options may be
purchased or written over securities held in the portfolio for
generating or protecting capital returns, or for generating or
maintaining revenue returns. Where the purpose of the option is the
generation of income, the premium is treated as a revenue item. Where
the purpose of the option is the maintenance of capital the premium is
treated as a capital item. The value of the option is subsequently
marked to market to reflect the fair value of the option based on traded
prices. Option premium income is recognised as revenue evenly over the
life of the option contract and included in the revenue column of the
Statement of Comprehensive Income unless the option has been written for
the maintenance and enhancement of the Company's investment
portfolio and represents an incidental part of a larger capital
transaction, in which case any premia arising are allocated to the
capital column of the Statement of Comprehensive Income. Where the
premium is taken to revenue, an appropriate amount is shown as capital
return such that the total return reflects the overall change in the
fair value of the option. When an option is closed out or exercised the
gain or loss is accounted for as capital. (e) Expenses All expenses,
including finance costs, are accounted for on an accruals basis.
Expenses have been charged wholly to the revenue column of the Statement
of Comprehensive Income, except as follows: - expenses which are
incidental to the acquisition of an investment are included within the
cost of the investment. - expenses are treated as capital where a
connection with the maintenance or enhancement of the value of the
investments can be demonstrated; and - the investment management fees
and finance costs of borrowing borne by the Company have been allocated
75% to the capital column and 25% to the revenue column of the Statement
of Comprehensive Income in line with the Board's expectations of
the long term split of returns, in the form of capital gains and income,
respectively, from the investment portfolio. (f) Taxation The tax
expense represents the sum of the tax currently payable and deferred
tax. Tax payable is based on the taxable profit for the year. Taxable
profit differs from profit before tax as reported in the Statement of
Comprehensive Income because it excludes items of income or expense that
are taxable or deductible in other years and it further excludes items
that are never taxable or deductible. The Company's liability for
current tax is calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date. Deferred taxation is
recognised in respect of all temporary differences that have originated
but not reversed at the financial reporting date, where transactions or
events that result in an obligation to pay more tax in the future or
right to pay less tax in the future have occurred at the financial
reporting date. This is subject to deferred tax assets only being
recognised if it is considered more likely than not that there will be
suitable profits from which the future reversal of the temporary
differences can be deducted. Deferred tax assets and liabilities are
measured at the rates applicable to the legal jurisdictions in which
they arise. (g) Investments held at fair value through profit or loss
The Company's investments are classified as held at fair value
through profit or loss in accordance with IAS 39 - "Financial
Instruments: Recognition and Measurement" and are managed and
evaluated on a fair value basis in accordance with its investment
strategy. All investments are initially recognised as held at fair value
through profit or loss. Purchases of investments are recognised on a
trade date basis. Sales of investments are recognised on the trade date
of the disposal. Proceeds are measured at fair value, which is regarded
as the proceeds of sale less any transaction costs. The fair value of
the financial investments is based on their quoted bid price, or as
otherwise stated at the financial reporting date, without deduction for
the estimated selling costs. This policy applies to all current and non
current asset investments held by the Company. Changes in the value of
investments held at fair value through profit or loss and gains and
losses on disposal are recognised in the Statement of Comprehensive
Income as "Gains or losses on investments held at fair value
through profit or loss". Also included within the heading are
transaction costs in relation to the purchase or sale of investments.
(h) Other receivables and other payables Other receivables and other
payables do not carry any interest and are short term in nature and are
accordingly stated at their nominal value. (i) Dividends payable Under
IFRS interim dividends are recognised when paid to shareholders. Final
dividends, if any, are only recognised after they have been approved by
shareholders. (j) Foreign currency translation Transactions involving
foreign currencies are converted at the rate ruling at the date of the
transaction. Foreign currency monetary assets and liabilities are
translated into sterling at the rate ruling on the financial reporting
date. Foreign exchange differences arising on translation are recognised
in the Statement of Comprehensive Income as a revenue or capital item
depending on the income or expense to which they relate. (k) Cash and
cash equivalents Cash comprises cash in hand and on demand deposits.
Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and that are subject to an
insignificant risk of changes in value. (l) Bank borrowings Bank
overdrafts are recorded as the proceeds received. Finance charges are
accounted for on an accruals basis in the Statement of Comprehensive
Income using the effective interest rate method and are added to the
carrying amount of the instruments to the extent that they are not
settled in the period in which they arise. 3. Income
                                                                          2013
                                                                         [pounds sterling]'000
                                                                   (unaudited) Investment income: Overseas listed dividends
1,228 UK listed dividends
9
                                                                      --------
                                                                         1,237 Other income: Deposit interest on cash balances
2 Option premium income
759
                                                                      --------
                                                                           761
                                                                      -------- Total                                                                    1,998
                                                                      ======== During the period, the Company received premiums totalling
[pounds sterling]884,000 for writing covered call options for the
purposes of revenue generation, of which [pounds sterling]759,000 was
taken to income. All derivative transactions were based on constituent
stocks in the Russell 1000 Value Index. At 30 April 2013, there were 139
open positions with an associated liability of [pounds sterling]408,000.
4. Investment management fee
                                                             2013
                                              Revenue      Capital
Total
                                                [pounds
sterling]'000        [pounds sterling]'000        [pounds
sterling]'000
                                          (unaudited)(unaudited)(unaudited) Investment management fee                          98          293
391
                                             --------     --------
-------- Total                                              98
293          391
                                             ========     ========
======== The Company has entered into a management agreement with
BlackRock Investment Management (UK) Limited under which BlackRock is
entitled to an investment management fee, payable in arrears, calculated
at the rate of 0.25 per cent per quarter of the Company's average
market capitalisation. Average market capitalisation is calculated as
the aggregate of the closing mid-market share price, multiplied by the
number of shares in issue on each business day during the quarter,
divided by the number of business days in the quarter. 5. Other
operating expenses
                                                                         2013
                                                                        [pounds sterling]'000
                                                                  (unaudited) Custody fee                                                                 8 Auditor's remuneration: - audit services
    12 - other audit services
6 Registrar's fee
18 Directors' emoluments
39 Other administration costs
73
                                                                     --------
                                                                          156
                                                                     ======== The Company's ongoing charges, calculated as a percentage of
average net assets and using expenses, excluding interest costs,
wereCe1.3%. Other administration costs include legal and professional
fees of [pounds sterling]8,000 for the conversion of the share premium
account to a special reserve. Other audit services related to the review
of the half yearly financial report. For the period from 30 August 2012
to 30 April 2013 a fee of [pounds sterling]84,000 (inclusive of VAT) was
paid to Ernst & Young LLP for services provided in relation to the
launch of the Company and further issues of shares since the launch of
the Company. These have been included within share issue costs of
[pounds sterling]1,467,000 debited to the share premium account within
the Statement of Changes in Equity. 6. Dividends The Directors have
declared a second quarterly interim dividend of 1.00p per share. The
dividend will be paid on 2 July 2013, to shareholders on the
Company's register on 24 May 2013. Under IFRS, the second interim
dividend has not been recognised as a liability in the financial
statements as interim dividends are not recognised in the financial
statements until they are paid. They are also debited directly to
revenue reserves. Dividends on equity shares during the period were:
                                                                         2013
                                                                        [pounds sterling]'000
                                                                  (unaudited) Dividends on equity shares: 1st Interim dividend of 1.00p per
701 ordinary share paid on 2 April 2013* 2nd Interim dividend of 1.00p
per                                         762 ordinary share payable
on 2 July 2013**
                                                                     --------
                                                                        1,463
                                                                     -------- * based on 70,050,000 ordinary shares. ** based on 76,175,000
ordinary shares. 7. Earnings and net asset value per ordinary share
                                                                          2013
                                                                    (unaudited) Net revenue profit attributable to ordinary shareholders
([pounds sterling]'000)         1,457 Net capital profit
attributable to ordinary shareholders ([pounds sterling]'000)
8,265
                                                                      -------- Total profit attributable to ordinary shareholders ([pounds
sterling]'000)               9,722
                                                                      -------- Total equity attributable to shareholders ([pounds
sterling]'000)                       84,693
                                                                      -------- The weighted average number of ordinary shares in issue during
the period, on which the earnings per ordinary share was calculated,
was:                                                                69,720,106
                                                                      -------- The actual number of ordinary shares in issue at the end of the
period, on which the net asset value was calculated, was:
76,175,000
                                                                      -------- Revenue earnings per share
2.09p Capital earnings per share
11.85p
                                                                      -------- Total earnings per share - basic and diluted
13.94p
                                                                      -------- Net asset value per share - basic and diluted
111.18p
                                                                      -------- Share price                                                            114.38p
                                                                      ======== Basic and diluted earnings per share and net asset value per
share are the same as the Company does not have any dilutive securities
outstanding. 8. Share capital
                                                            Total
Nominal
                                                           number
value
                                                               of
[pounds sterling]'000
                                                           shares
                                                               in
                                                            issue
Allotted, called up and fully paid share capital comprised: Ordinary
shares of 1 pence each: Allotted, issued and fully paid: Issue of
ordinary shares at launch                     65,000,000          650
Further issues of ordinary shares                      11,175,000
112
                                                         --------
-------- Shares issued
76,175,000          762 Management shares of [pounds sterling]1 each:
Allotted, issued and fully paid: Issue of management shares
50,000           50 Redemption and cancellation of management shares
(50,000)(50)
                                                         --------
-------- At 30 April 2013
76,175,000          762
                                                         ========
======== On incorporation, the Company issued 50,000 management shares
which were redeemed and cancelled on 18 October 2012. On 24 October 2012
the Company issued 65,000,000 ordinary shares at 100p. The total
consideration after deduction of issue costs was [pounds
sterling]63,863,000. During the period to 30 April 2013 the Company
issued a further 11,175,000 shares for a total gross consideration of
[pounds sterling]12,139,000 before deduction of issue costs. Since 30
April 2013 and up to the date of this report, a further 1,400,000 shares
have been issued for a total gross consideration of [pounds
sterling]1,600,000 before deduction of issue costs. 9. Related party
disclosure The Board consists of three non-executive Directors, all of
whom are considered to be independent by the Board. None of the
Directors has a service contract with the Company. With effect from 24
October 2012, the Chairman receives an annual fee of [pounds
sterling]30,000, the Chairman of the Audit Committee receives an annual
fee of [pounds sterling]25,000 and the other Directors receive an annual
fee of [pounds sterling]21,000. At 30 April 2013, the Directors'
interests in the Company's ordinary shares were as follows:
                                                                             30
                                                                          April
                                                                           2013 Simon Miller (Chairman)
20,000 Christopher Casey
10,000 Andrew Irvine
20,000
                                                                       -------- Since the period end and up to the date of this report, there
have been no changes in Directors' holdings. Alice Ryder was
appointed as a Director of the Company on 12 June 2013 but does not
currently hold any shares in the Company. 10. Transactions with
Investment Manager BlackRock Investment Management (UK) Limited
("BlackRock") provides management and administration services
to the Company under a contract which is terminable on six months'
notice in writing, such notice not to take effect prior to 24 October
2014. BlackRock is entitled to receive from the Company a management fee
payable quarterly in arrears calculated at the rate of 0.25 per cent.
per quarter of the average market capitalisation, together with
reimbursement of reasonable expenses properly incurred by it in the
performance of its duties. For details, see note 4. The investment
management and performance fees for the period ended 30 April 2013 were
[pounds sterling]391,000. At the period end, an amount of [pounds
sterling]391,000 was outstanding in respect of the investment management
fees. 11. Contingent liabilities There were no contingent liabilities at
30 April 2013. 12. Publication of non-statutory accounts The financial
information contained in this half yearly financial report does not
constitute statutory accounts, as defined in section 435 of the
Companies Act 2006. The financial information for the period ended 30
April 2013 has not been audited. Independent Review Report to BlackRock
North American Income Trust plc Introduction We have been engaged by the
Company to review the condensed set of financial statements in the half
yearly financial report for the period from incorporation on 24 October
2012 to 30 April 2013 which comprises the Statement of Comprehensive
Income, Statement of Changes in Equity, Statement of Financial Position
and Cash Flow Statement, and the related notes. We have read the other
information contained in the half yearly financial report and considered
whether it contains any apparent misstatements or material
inconsistencies with the condensed set of financial statements. This
report is made solely to the Company in accordance with guidance
contained in International Standard on Review Engagements (UK and
Ireland) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Auditing
Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company, for
our work, for this report, or for the conclusions we have formed.
Directors' responsibilities The half yearly financial report is the
responsibility of, and has been approved by, the Directors. The
Directors are responsible for preparing the half yearly financial report
in accordance with the Listing Rules of the Financial Conduct Authority.
As disclosed in note 2, the annual financial statements of the Company
are prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the European Union and as
applied in accordance with the provisions of the Companies Act 2006. The
condensed set of financial statements included in this half yearly
financial report has been prepared in accordance with the Accounting
Standards Board Statement "Half Yearly Financial Reports". Our
responsibility Our responsibility is to express to the Company a
conclusion on the condensed set of financial statements in the half
yearly financial report based on our review. Scope of review We
conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity"
issued by the Auditing Practices Board for use in the United Kingdom. A
review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently
does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion. Conclusion Based on our review,
nothing has come to our attention that causes us to believe that the
condensed set of financial statements in the half yearly financial
report for the period ended 30 April 2013 is not prepared, in all
material respects, in accordance with the Accounting Standards Board
Statement "Half Yearly Financial Reports" and the Disclosure
and Transparency Rules of the United Kingdom's Financial Conduct
Authority. Ernst & Young LLP London 12 June 2013 The Half Yearly
Financial Report will also be available on the BlackRock Investment
Management website at www.blackrock.co.uk/brna. 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. For further
information, please contact: Jonathan Ruck Keene, Chairman, Specialist
Client Group, BlackRock Investment Management (UK) Limited - Tel: 020
7743 2178 Scott Malatesta, Senior Product Strategist, BlackRock
Investment Management (UK) Limited - Tel: 020 7743 3000 Emma Philips,
Media & Communications, BlackRock Investment Management (UK) Limited
- Tel: 020 7743 2922