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BlackRock North American Income Trust plcAnnual Results Announcement 31 October 2013Investment ObjectiveThe Company's investment objective is to provide an attractive and growinglevel of income return with capital appreciation over the long term,predominantly through investment in a diversified portfolio of primarilylarge-cap U.迷你倉S. equities.Summary Investment PolicyThe Company invests predominantly in a diversified portfolio of equitysecurities quoted in the U.S., with a focus on companies that pay and growtheir dividends. The Company may invest through an active options overlaystrategy utilising predominantly covered call options and may also hold othersecurities from time-to-time including, inter alia, convertible securities,fixed interest securities, preference shares, non-convertible preferred stock,and depositary receipts.Performance RecordFinancial Highlights 31 OctoberAttributable to ordinary shareholders 2013Net assets (£'000) 111,289Net asset value per ordinary share 112.00pOrdinary share price (mid-market) - ex 4th interim dividend 112.50pOrdinary share price (mid-market) - cum 4th interim dividend1 113.50pPremium to cum income net asset value2 1.3%Performance for the period since launch to 31 October 2013Net asset value per share (with income reinvested)3 +17.1%Russell 1000 Value Index +27.4%Share price (with income reinvested)2 +16.5%1 the share price went ex-dividend for the 4th interim dividend of 1p per shareon 9 October 2013; however, this interim dividend is not accounted for in theNAV at 31 October 2013 as a liability in accordance with IFRS.2 based on cum dividend ordinary share price.3 based on NAV at launch after launch costs of 1.75% of issue price of 100p.Source: BlackRock and DatastreamChairman's StatementThis is the first Annual Report to shareholders of BlackRock North ?AmericanIncome Trust plc for the period from the date of incorporation on 30?August2012 to 31 October 2013.OverviewRecovery from the punishing 2007-2009 recession remains slow and the globaleconomic outlook has hardly changed with modest growth and low inflation. Thegrowth backdrop favoured developed markets in contrast with mainstream emergingmarkets and, in the U.S., the economy appeared more resilient with solidcorporate earnings, rising consumer confidence and a slow but steadystrengthening in the housing market. However, there was still uncertaintyfollowing the brief government shutdown and congressional gridlock. Although alast minute deal in October averted a potential default on the national debtand ended the partial shutdown, there are still concerns about the lack of along term plan and the potential for sequential crises. There is also freshuncertainty about the timing of tapering by the Federal Reserve, coupled withthe scheduled leadership change.The delay in tapering has led to a favourable environment for equities withsolid corporate operating margins. Against this backdrop, I am able to reportthat for the period since launch on 24 October 2012, the Company's net assetvalue per share (after launch costs) returned 17.1% including reinvestment ofdividends totalling 3.1%. During the same period, the share price returned16.5%. Overall we maintained our focus on higher quality stocks. We note thatshort term performance has been disappointing due to the outperformance of lowerquality stocks, but the Board continues to believe that owning strongbusinesses can provide the best defence against uncertainty and will providethe best returns over time.Since the period end, the Company's net asset value per share and the share pricehave remained unchanged.Earnings and dividendsRevenue earnings per share for the period to 31 October 2013 amounted to 4.28p.As set out in the Company's Prospectus, it was the Company's intention to paydividends amounting to at least 4.0p per share for the period ending 31 October2013, details of which are set out in note 7 to the Financial Statements. I ampleased to report that we reached this target and paid quarterly dividendstotalling 4.0p per?share.It is the Directors' intention to pay dividends amounting to at least 4.0pper share for the year ending 31 October 2014. Our ability to match or exceedthis target will depend on dividend distributions and option writing from ourunderlying portfolio and should not be interpreted as a profit forecast. Thetarget level represents a yield of 3.6% based on the share price as at close ofbusiness on 31 October 2013.Share issuesFor the period to 31 October 2013, the Company's shares traded at an averagepremium of 2.4% to their NAV. In the light of continuing demand for the sharesand having regard to the benefits of enlarging the Company, a general meetingwas held on 8 February 2013 to seek further shareholder authority to issue newshares under a Placing Programme. In addition, as the authorities under theFebruary Placing Programme were shortly expected to be substantially utilised,the Company published a prospectus in September 2013 to renew shareholderauthority for a further Placing Programme which was approved at a generalmeeting held on 10 October 2013. The Directors also considered that the Companyshould raise additional capital through an issue of C shares, to meet immediatedemand from potential investors, at the same time as renewal of the Company'sPlacing Programme in October.The Placing, Open Offer and Offer for Subscription of C shares resulted inapplications for 15,500,000 C shares and the C shares converted into ordinaryshares at a rate of 0.9047 ordinary shares for each C share. A total of14,022,805 ordinary shares were issued as a result of the conversion and wereadmitted to trading on 23 October 2013. In addition, a further 20,338,500shares have been issued at a premium to NAV pursuant to the share allotmentauthority granted to Directors on launch and the Placing Programmes in theperiod to 31 October 2013. Since the period end and up to the date of thisreport a further 400,000 shares have been issued. At launch the Company issued65,000,000 shares and there are now 99,761,305 shares in issue.Tender offersIn view of the fact that since launch the Company's shares have traded ateither a premium to NAV or a very narrow discount, the Board announced on 14May 2013 and 14 November 2013 that it had decided not to proceed with thetender offers in July 2013 and January 2014. A resolution for the renewal ofthe Company's semi-annual tender authorities will be put to shareholders at theforthcoming Annual General Meeting.Alternative Investment Fund Managers' DirectiveThe Alternative Investment Fund Managers' Directive (the 'Directive') is aEuropean Directive which seeks to reduce systemic risk by regulatingalternative investment fund managers ('AIFMs'). AIFMs are responsible formanaging investment products that fall within the category of AlternativeInvestment Funds ('AIFs') and investment trusts are included in this. TheDirective was implemented on 22 July 2013 although the Financial ConductAuthority permits a transitional period of one year after that during which UKAIFMs must seek authorisation. The Board has taken, and will continue to take,independent advice on the consequences for the Company of the implementation ofthe Directive. It has decided in principle that BlackRock Fund Managers Limitedwill be appointed as its AIFM before the end of the transitional period on 22July 2014.New reporting requirementsThere have been a number of revisions to reporting requirements for companieswith accounting periods ending on or after 30? September 2013. These changes areintended to increase the quality and structure of reporting and include theintroduction of a new Strategic Report which is intended to replace theBusiness Review section of the Directors' Report, providing insight into theCompany's objectives, strategy and principal risks. The Strategic Report shouldalso enable shareholders to assess how effective Directors have been inpromoting the success of the Company during the course of the period underreview. Other changes comprise additional Audit Committee reportingrequirements on the external audit process, as set out on pages 31 to 33 of theAnnual Report, and changes to the structure and voting requirements in respectof the Directors' Remuneration Report which are explained in more detail onpages 23 to 25 of the Annual Report.Annual General MeetingThe Annual General Meeting of the Company will be held at BlackRock's officesat 12 Throgmorton Avenue, London EC2N 2DL on Thursday, 13 February 2014 at12.00 noon. Details of the business of meeting are set out in the Notice ofMeeting on pages 59 to 62 of the Annual Report. The Investment Manager willmake a presentation to shareholders on the Company's performance and theoutlook for the year ahead.OutlookThe global growth outlook remains steady, driven by a gradual strengthening ofbusiness and consumer confidence in the U.S. There are also clear signs ofstabilisation in Europe and marginal improvements in current account balanceswithin emerging markets. U.S. fundamentals continue to be reasonable and thirdquarter earnings results have been ahead of expectations. Protracted fiscalnegotiations could be a potential drag on growth in the U.S. On the other hand,there is much less risk of international shocks than there has been in thepast. In this environment, the Investment Manager will continue to focus onhigher quality stocks with a real competitive advantage and an emphasis onshareholder returns.Simon Miller12 December 2013Investment Manager's ReportMarket overviewFor the period ended 31 October 2013, U.S. large cap stocks, as represented bythe S&P 500? Index, advanced 27.2% (in U.S.?Dollar terms). U.S. equity marketswere range-bound in the closing months of 2012, before rebounding strongly atthe beginning of 2013 after the nation's 'fiscal cliff' had been averted. Signsof a steady improvement in the U.S. economy underpinned the rally. As economicdata became more mixed, financial markets around the world were dominated byspeculation on monetary policy decisions from global central banks,particularly the U.S. Federal Reserve (the 'Fed'). Equity markets broadlytraded based on investor perception of when the Fed planned to taper its bondbuying programme. In total, the Fed's dovish monetary policy and decision todelay tapering its $85 billion monthly bond buying programme proved beneficialfor U.S. stocks. Companies have performed strongly enough to generate positivecorporate earnings, while continued high unemployment and low inflation rateshave reinforced the need for sustained U.S. Federal Reserve stimulus until amore robust economic recovery is underway. Combined with a declining risk ofmilitary involvement in Egypt and Syria, and the U.S. government reaching atemporary debt-ceiling resolution (albeit after a government shutdown andlengthy political brinkmanship), the result is an environment with few shortterm macroeconomic risks currently apparent. All of these factors have led torobust equity returns for the trailing one year, particularly in the months ofSeptember and October as investors have gained increasing clarity.Portfolio overviewAlthough the portfolio provided good absolute returns over the period itnonetheless returned less than the benchmark index.On a sector basis, the largest positive contributor to Company performance forthe period was the overweight position in industrials compared to the benchmark.Our overweight position in consumer discretionary shares also proved beneficial,as did our underweight exposure to the energy sector. Our choice of shares in theutility sector also contributed to relative performance for the period. The largestdetractor from relative performance was our stock selection, and underweight stance in,the information technology sector. Stock selection and an underweight to financialsalso significantly detracted from relative returns, as did stock selection inconsumer staples and consumer discretionary. Lastly, stock selection inindustrials and a combination of stock selection and an overweight to materialsalso hurt relative returns.During the period we have increased our weighting to the financials sector byover 2.5%. We initiated new positions in Citigroup and regional banks such asSunTrust Banks and Fifth Third Bancorp. We also increased our exposure to theinsurance industry by buying MetLife and adding to existing positions inTravelers Companies, Chubb Corporation and Prudential Financial. We remainpositive about financials given the U.S. housing recovery and its positiveimpact on mortgage and loan growth. We view incremental clarity on governmentregulation and the sector's attractive valuations to be positive factors aswell.Conversely, we have reduced our exposure to the utilities and telecommunicationservices sectors. Given investor demand for yield in a low interest rateenvironment, we have seen these sectors increasingly in demand relative to therest of the equity market. Given what we believed were premium valuations, wesold out of utilities holdings such as Consolidated Edison, FirstEnergy,Southern Co., American Electric Power and PPL. Similarly, in telecoms we soldout of our positions in Vodafone Group and CenturyLink.The Company currently has a lower exposure to consumer staples, materials,industrials, consumer discretionary and telecommunications than the Russell1000 Value Index and is also underweight the financials, health care,information technology, energy and the utilities sectors. Below is an overviewof our top three active overweight and top three active underweight sectors.Consumer Staples - 6.2% overweight (12.2% of portfolio)We believe many consumer staples stocks have ample room for cost cutting, whichmay ultimately provide an opportunity for accelerating earnings growth andmultiple expansion within the sector. As wealthier middle classes proliferatein developing economies, this sector should be a prime beneficiary.Materials - 4.1% overweight (7.0% of portfolio)We believe infrastructure development and spending will continue to be acritical part of the investment landscape, both domestically and abroad. Withinthe industry, scale matters. We prefer companies with assets in place that havecompetitive advantages and should be able to reap the benefits of high barriersto entry within the space.Industrials - 3.2% overweight (13.4% of portfolio)We believe, in many cases, operating leverage has yet to be fully exploited bygrowing volumes in an improving global economy. The sector contains a widevariety of industries, many of which are well positioned to thrive in aslower-growth world, but could also benefit from a future strengthening in thedomestic housing market.Financials - 8.1% underweight (20.7% of portfolio)Given the stabilization of U.S. markets and improving corporate strength, wehave been adding to insurance companies and higher-quality regional bankswithin the space, while reducing exposure to Canadian banks. Despite being theCompany's largest underweight, the sector also remains the largest absoluteweighting. We anticipate more dividend increases and continued upside asheadwinds, regulatory or otherwise, fade in the coming years.Health Care - 3.9% underweight (9.1% of portfolio)The federal government is the largest consumer of health services across manyunderlying industries, which should elicit caution given budget deficits, costoverruns and general lack of fiscal direction. However, we are findinginvestment opportunities among the diversified pharmaceutical manufacturers andcompanies that should benefit from rising volumes given new legislation.Information Technology - 3.5% underweight (5.2% of portfolio)The sector's relatively low capital discipline, highly variable supply/demandcharacteristics and cyclicality are inherently unattractive for dividendinvesting. During the next few years, companies may exhibit increasingly stablecharacteristics with regard to cash flow and less income variability. Whereapplicable, we continue to look for exposure to big data, analytics and cloudcomputing, as these areas are likely to gain from incremental spending in thefuture.Positioning and outlookWe continue to focus on identifying inherently attractive businesses to investin for the long term. The Company remains positioned in higher-quality, cashrich, dividend growth companies with defensible competitive advantages and theability to self-fund should markets become more volatile. We are overweightconsumer staples, materials and industrials given our belief that these sectorsare poised to benefit from a rebound in U.S. housing, global growth andpersistent (albeit slowing) industrialisation in developing markets. As thepotential for rate increases becomes a reality, we believe significant risk canbe found in the lower-capitalised, fundamentally weaker, segment of the U.S.equity market, where the structural decline in businesses may have been maskedby advances in stock prices in recent quarters. Although this segment of themarket has recently performed well, we simply believe that this performancecannot last forever. We have positioned the portfolio to benefit from a shiftin market leadership and will continue to emphasize growth of income, relativeprotection and long term total return as the core of our process. Overall, theportfolio remains well-insulated but ready to participate should marketscontinue to experience gains through the end of the year.Bob Shearer and Kathleen AndersonBlackRock Investment Management (UK) Limited12 December 2013Ten Largest Investments31 October 2013Wells Fargo - 3.2% (2013: 3.1%) is a U.S. diversified bank with over $1trillion in assets. Wells Fargo boasts a strong and stable management team, ledby CEO John Stumpf, who has been with the firm for nearly 30 years. The companyis an industry leader in cross-selling financial products and services, whichhas built deep customer relationships and added to the bank's pricing andearnings power.JPMorgan Chase - 3.1% (2013: 3.2%) is a U.S. based diversified financialcompany with over $2 trillion in assets and operations in dozens of countries.JPMorgan's capital base remains one of the strongest in the industry and itprovides a measure of safety and financial flexibility. Overall, we believeJPMorgan offers strong earnings power while also affording shareholders adividend yield in the top-quartile of the S&P 500 Index.Chevron Corporation - 3.1% (2013: 3.3%) is the second largest integrated oilcompany in the U.S. with exploration, production and refining operationsworldwide. Chevron has one of the strongest balance sheets and lowest debt tocapital ratios among its peers, and currently generates a sector leadingprofitability of $23.88 per barrel of oil equivalent in 1H 2013. We believe thefirm's success in deep-water exploration in recent years will be a significantdriver of earnings growth moving forward.General Electric - 2.6% (2013: 2.4%) is a diversified industrials conglomeratewith 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 desirablelong term holding. General Electric has demonstrated a remarkable ability tochange and evolve over time. Of the 12 companies Charles Dow chose to make uphis original Dow Jones industrial average in 1896, GE is the only one still inthe index.Comcast - 2.5% (2013: 2.3%) is the largest operator in the U.S. cable industry,currently reaching 53 million households. We are positive on the firm'spurchase of NBC Universal, one of the world's leading media and entertainmentcompanies. Comcast is now unique in the cable industry because they own thedistribution network as well as some of their own programming (televisionchannels). We believe this will help the firm offset rising cable costs betterthan some of its competitors.Pfizer - 2.5% (2013: 2.4%) is the world's largest pharmaceuticals company withannual sales of approximately $60 billion. Pfizer offers investors strong freecash flow, a history of generating high returns on invested capital and anattractive and consistent dividend yield. At this stage in the company'sbusiness cycle, we believe it will be important for recently launched productsto be well-received in the market in order for pipeline momentum to?continue.Home Depot - 2.4% (2013: 2.4%) is the world's largest home improvementretailer, with over 2,200 warehouse-format stores and more than 300,000employees. The firm has been an immediate beneficiary of a recovering U.S.housing market and we continue to believe that upward earnings revisions arelikely as the segment continues to garner strength. Home Depot remainscommitted to growing its dividend, raising its quarterly payout by 34% from2012 to 2013.Verizon Communications - 2.1% (2013: 2.2%) is the largest provider of wire lineand wireless communications in the United States, with 101 million retailcustomers. Verizon maintains strong industry positioning given its networkcoverage (95% of the U.S. population) and overall network quality. Verizon'ssustainable dividend yield of 4%+ continues to make the stock an attractivelong term investment in the portfolio.Exxon Mobil - 2.1% (2013: 2.2%) is an integrated oil and gas company based outof the United States. The firm is one of only a few U.S. companies to boast anAAA credit rating. Exxon's geographic footprint and diversified operationscontinue to make it an industry leader. Management remains committed togenerating shareholder returns, paying almost $40 billion in dividends andrepurchasing approximately $130 billion worth of stock over the last fiveyears.Merck - 1.9% (2013: 2.0%) is a global pharmaceuticals company with over 83,000employees worldwide. We believe Merck is through the worst of its patent cliffand that the firm is favourably positioned for long term growth. New drugs suchas Januvia (for diabetes), Isentress (for HIV) and the Gardasil vaccinerepresent potential blockbusters. Additionally, we believe Merck'srestructuring efforts should reduce costs and improve margins over the longterm.All percentages reflect the value of the holding as a percentage of totalinvestments. Percentages in brackets represent the value of the holding as at30 April 2013. Together, the ten largest investments represent 25.5% of theCompany's portfolio (30 April 2013: 25.6%). All data in U.S. dollar terms.Investmentsas at 31 October 2013Country Sector Market % ofCompany value total £'000 portfolioWells Fargo United Financials Ordinary 3,574 3.2 States Shares Options (6)JPMorgan Chase United Financials Ordinary 3,488 3.1 States Shares Options (1)Chevron United Oil & Gas Ordinary 3,468 3.1 States Shares Options (7)General Electric United Industrials Ordinary 2,935 2.6 States Shares Options (9)Comcast United Consumer Services Ordinary 2,809 2.5 States Shares Options (20)Pfizer United Health Care Ordinary 2,788 2.5 States Shares Options (23)Home Depot United Consumer Services Ordinary 2,694 2.4 States Shares Options (11)Verizon United Telecommunications Ordinary 2,397 2.1Communications States Shares Options (14)Exxon Mobil United Oil & Gas Ordinary 2,303 2.1 States Shares Options (3)Merck United Health Care Ordinary 2,074 1.9 States Shares Options (3)Philip Morris United Consumer Goods Ordinary 2,043 1.8International States Shares Options (4)Prudential Financial United Financials Ordinary 2,032 1.8 States Shares Options (5)Bristol-Myers Squibb United Health Care Ordinary 2,031 1.8 States Shares Options (32)Johnson & Johnson United Health Care Ordinary 1,949 1.7 States Shares Options (11)Raytheon United Industrials Ordinary 1,936 1.7 States Shares Options (23)BHP Billiton Australia Basic Materials Ordinary 1,913 1.7 Shares Options (9)United Technologies United Industrials Ordinary 1,881 1.7 States Shares Options (2)IBM United Technology Ordinary 1,808 1.6 States Shares Options (1)Du Pont United Basic Materials Ordinary 1,776 1.6 States Shares Options (6)Deere United Industrials Ordinary 1,763 1.6 States Shares Options (4)Microsoft United Technology Ordinary 1,718 1.5 States Shares Options (12)Total France Oil & Gas Ordinary 1,708 1.5 Shares Options (7)US Bancorp United Financials Ordinary 1,708 1.5 States Shares Options (1)Suntrust Banks United Financials Ordinary 1,651 1.5 States Shares Options (3)McDonald's United Consumer Services Ordinary 1,645 1.5 States Shares Options (2)American Express United Financials Ordinary 1,597 1.4 States Shares Options (19)Enbridge Canada Oil & Gas Ordinary 1,518 1.4 Shares Options (8)Procter & Gamble United Consumer Goods Ordinary 1,448 1.3 States Shares Options (7)AT&T United Telecommunications Ordinary 1,416 1.3 States Shares Options (7)Diageo United Consumer Goods Ordinary 1,406 1.3 Kingdom Shares Options (3)Travelers Companies United Financials Ordinary 1,400 1.3 States Shares Options (2)Northrop Grumman United Industrials Ordinary 1,374 1.2 States Shares Options (16)Coca-Cola United Consumer Goods Ordinary 1,366 1.2 States SharesCitigroup United Financials Ordinary 1,359 1.2 States SharesHoneywell United Industrials Ordinary 1,359 1.2 States Shares Options (7)Ace United Financials Ordinary 1,315 1.2 States Shares Options (4)United Parcel United Industrials Ordinary 1,290 1.1Services States Shares Options (12)Unilever Netherlands Consumer Goods Ordinary 1,259 1.1 Shares Options (1)Fifth Third Bank United Financials Ordinary 1,216 1.1 States Shares Options (3)VF Corporation United Consumer Goods Ordinary 1,206 1.1 States Shares Options (5)Mondelez United Consumer Goods Ordinary 1,200 1.1International States Shares Options (5)Occidental Petroleum United Oil & Gas Ordinary 1,180 1.1 States Shares Options (5)Toronto-Dominion Bank Canada Financials Ordinary 1,164 1.0 Shares Options (13)Dominion Resources United Utilities Ordinary 1,156 1.0 States Shares Options (2)NextEra Energy United Utilities Ordinary 1,151 1.0 States Shares Options (3)3M Company United Industrials Ordinary 1,151 1.0 States Shares Options (5)Intel Corporation United Technology Ordinary 1,104 1.0 States Shares Options (4)Lorillard United Consumer Goods Ordinary 1,052 0.9 States Shares Options (13)Kimberly-Clark United Consumer Goods Ordinary 1,042 0.9 States Shares Options (13)Chubb United Financials Ordinary 1,020 0.9 States Shares Options (2)General Mills United Consumer Goods Ordinary 1,017 0.9 States Shares Options (5)Union Pacific United Industrials Ordinary 1,000 0.9 States Shares Options (9)Marathon Oil United Oil & Gas Ordinary 949 0.8 States Shares Options (4)Motorola United Technology Ordinary 912 0.8 States Shares Options (2)Marathon Petroleum United Oil & Gas Ordinary 910 0.8 States Shares Options (3)Praxair United Basic Materials Ordinary 832 0.7 States Shares Options (1)International Paper United Basic Materials Ordinary 822 0.7Company States Shares Options 0American Water Works United Utilities Ordinary 772 0.7Association States Shares Options (4)Kinder Morgan United Oil & Gas Ordinary 768 0.7(Delaware) States Shares Options (2)Meadwestvaco United Industrials Ordinary 725 0.6 States SharesMattel United Consumer Goods Ordinary 718 0.6 States SharesOptions (2)Public Service United Utilities Ordinary 707 0.6Enterprise Group States Shares Options (2)Dow Chemical United Basic Materials Ordinary 681 0.6 States Shares Options (2)Schlumberger United Oil & Gas Ordinary 681 0.6 States Shares Options (3)WalMart United Consumer Services Ordinary 663 0.6 States Shares Options (1)Altria United Consumer Goods Ordinary 648 0.6 States Shares Options (5)ConocoPhillips United Oil & Gas Ordinary 644 0.6 States Shares Options (5)Walt Disney United Consumer Services Ordinary 627 0.6 States Shares Options (6)Johnson Controls United Consumer Goods Ordinary 616 0.5 States Shares Options (5)Sempra Energy United Utilities Ordinary 595 0.5 States Shares Options (4)Kraft Foods United Consumer Goods Ordinary 560 0.5 States Shares Options (3)Quest Diagnostics United Health Care Ordinary 534 0.5 States Shares Options (2)Spectra Energy United Utilities Ordinary 532 0.5 States Shares Options (1)Newmont Mining United Basic Materials Ordinary 524 0.5 States SharesAbbVie United Health Care Ordinary 513 0.5 States Shares Options (3)Weyerhaeuser United Financials Ordinary 507 0.5 States Shares Options (1)Metlife United Financials Ordinary 494 0.4 States Shares Options 0Duke Energy United Utilities Ordinary 491 0.4 States Shares Options (1)Wisconsin Energy United Utilities Ordinary 470 0.4 States Shares Options (3)Northeast Utilities United Utilities Ordinary 470 0.4 States Shares Options (3)Edison International United Utilities Ordinary 467 0.4 States Shares Options (1)Rockwell Automation United Industrials Ordinary 441 0.4 States Shares Options (2)American Tower United Financials Ordinary 426 0.4 States Shares Options (2)Abbott Laboratories United Health Care Ordinary 385 0.3 States Shares Options (1)Phillips 66 United Oil & Gas Ordinary 379 0.3 States Shares Options (3)BCE Canada Telecommunications Ordinary 353 0.3 Shares Options (1)Automatic Data United Industrials Ordinary 343 0.3Processing States Shares Options (1)Southern Copper Peru Basic Materials Ordinary 306 0.3 SharesITC Holdings United Utilities Ordinary 302 0.3 States Shares Options (3)Royal Dutch Shell Netherlands Oil & Gas Ordinary 281 0.3 Shares Options 0M&T Bank United Financials Ordinary 269 0.2 States Shares Options 0Olin United Basic Materials Ordinary 254 0.2 States Shares Options (1) -------- --------Portfolio 111,954 100.0 ======== ========All investments are in ordinary shares unless otherwise stated. The number ofholdings as at 31 October 2013 was 92. The total number of open options as at31 October 2013 was 188.The negative valuations of £475,000 in respect of options held represent thenotional cost of repurchasing the contracts at market prices as at 31 October2013.Principal risks - Extract from the Strategic Report:The key risks faced by the Company are set out below. The Board regularlyreviews and agrees policies for managing each risk, as summarised below.* Performance risk - The Board is responsible for deciding the investment strategy to fulfil the Company's objectives and for monitoring the performance of the Investment Manager. An inappropriate strategy may lead to underperformance against the benchmark index and the Company's peer group. To manage this risk the Investment Manager provides an explanation of significant stock selection decisions and the rationale for the composition of the investment portfolio. The Board monitors and mandates an adequate spread of investments in order to minimise the risks associated with particular countries or factors specific to particular sectors, based on the diversification requirements inherent in the Company's investment policy. The Board also receives and reviews regular reports showing an analysis of the Company's performance against the Russell 1000 Value Index and other similar indices.* Income/dividend risk - The amount of dividends and future dividend growth will depend on the Company's underlying portfolio. Any change in the tax treatment of the dividends or interest received by the Company (including as a result of withholding taxes or exchange controls imposed by jurisdictions in which the Company invests) may reduce the level of dividends received by shareholders. The Board monitors this risk through the receipt of detailed income forecasts and considers the level of income at each meeting.* Regulatory risk - The Company operates as an investment trust in accordance with the requirements of Chapter 4 of Part 24 of the Corporation Tax Act 2010. As such, the Company is exempt from capital gains tax on the profits realised from the sale of its investments. The Investment Manager monitors investment movements, the level and type of forecast income and expenditure and the amount of proposed dividends, if any, to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010 are not breached and the results are reported to the Board at each meeting. The Board and the Investment Manager also monitor changes in government policy and legislation which may have an impact on the Company. The Company must also comply with the provisions of the Companies Act 2006 and, as its shares are admitted to the Official List, the UKLA Listing Rules, the Disclosure and Transparency Rules and the Prospectus Rules. A breach of the Companies Act 2006 could result in the Company and/or the Directors being fined or the subject of criminal proceedings. A breach of the UKLA Listing Rules could result in the Company's shares being suspended from listing, which in turn would breach the requirements of Chapter 4 of Part 24 of the Corporation Tax Act 2010. The Board relies on the services of its professional advisers and its Company Secretary to ensure compliance with all relevant regulations. The Company Secretary has stringent compliance procedures in place and monitors regulatory developments and changes.* Operational risk - In common with most other investment trust companies, the Company has no employees. The Company therefore relies upon the services provided by third parties and is dependent on the control systems of the Investment Manager and the Company's other service providers. The security, for example, of the Company's assets, dealing procedu迷你倉樂器es, accounting records and maintenance of regulatory and legal requirements, depend on the effective operation of these systems. These have been regularly tested and monitored and an internal controls report, which includes an assessment of risks together with procedures to mitigate such risks, is prepared by the Investment Manager and reviewed by the Audit and Management Engagement Committee at least twice a year. The Investment Manager, the custodian, Bank of New York Mellon (International) Limited ('BNYM'), and BNP Paribas Securities Services (the 'fund accountant') also produce regular Service Organisation Control reports (SOC 1) or AAF 01/06 reports which are reviewed by their reporting accountants and give assurance regarding the effective operation of controls. The Board also considers succession arrangements for key employees of the Investment Manager and the business continuity arrangements for the Company's key service providers.* Market risk - Market risk arises from volatility in the prices of the Company's investments. It represents the potential loss the Company might suffer through realising investments in the face of negative market movements. Changes in general economic and market conditions, such as interest rates, rates of inflation, industry conditions, tax laws, political events and trends can also substantially and adversely affect the securities and, as a consequence, the Company's prospects and share price. The Board considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by the Investment Manager. The Board monitors the implementation and results of the investment process with the Investment Manager.* Financial risks - The Company's investment activities expose it to a variety of financial risks which include market risk, currency risk, interest rate risk, market price risk, liquidity risk and credit risk. Further details are disclosed in note 15 to the Financial Statements on pages 47 to 52 of the Annual Report, together with a summary of the policies for managing these risks.* Gearing risk - The Company has the power to borrow money (gearing) and does so when the Investment Manager is confident that market conditions and opportunities exist to enhance investment returns. However, if the investments fall in value, any borrowings will magnify the extent of this loss. All borrowings require the approval of the Board and gearing levels are discussed by the Board and Investment Manager.Related Party TransactionsBlackRock Investment Management (UK) Limited, the Manager, is considered to bea related party of the Company in terms of the IFRS definitions. Transactionsand relationship details are set out in the Director's Report of the AnnualReport.The investment management fee for the period was £873,000 as disclosed in note4. As at 31 October 2013, an amount of £482,000 was outstanding in respect ofthese fees.The Board consists of four non-executive Directors, all of whom are consideredto be independent of the Manager by the Board. None of the Directors has aservice contract with the Company. For the period ended 31 October 2013, theChairman received an annual fee of £30,000, the Chairman of the Audit andManagement Engagement Committee received an annual fee of £25,000 and each ofthe other Directors received an annual fee of £21,000. The fees for the yearending 31 October 2014 remain unchanged. As at 31 October 2013, an amount of£8,080 was payable to Directors in respect of their annual fees.All four members of the Board hold ordinary shares in the Company. Simon Millerholds 38,094 ordinary shares, Christopher Casey holds 19,047 ordinary shares,Andrew Irvine holds 38,094 ordinary shares and Alice Ryder holds 9,047 ordinaryshares.Statement of Directors' ResponsibilitiesThe Directors are responsible for preparing the Annual Report, the Directors'Remuneration Report and the financial statements in accordance with applicableUnited Kingdom law and regulations.Company law requires the Directors to prepare financial statements for eachfinancial year. Under that law, the Directors are required to prepare thefinancial statements under IFRS as adopted by the European Union. Under Companylaw the Directors must not approve the financial statements unless they aresatisfied that they give a true and fair view of the state of affairs of theCompany and of the profit or loss of the Company for that period.In preparing these financial statements, the Directors are required to:* present fairly the financial position, financial performance and cash flows of the Company;* select suitable accounting policies in accordance with IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently;* present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;* make judgements and estimates that are reasonable and prudent;* state whether the financial statements have been prepared in accordance with IFRS as adopted by the European Union, subject to any material departures disclosed and explained in the financial statements;* provide additional disclosures when compliance with the specific requirements in IFRS as adopted by the European Union is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company`s financial position and financial performance; and* prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.The Directors are responsible for keeping adequate accounting records that aresufficient to show and explain the Company's transactions and disclose withreasonable accuracy at any time the financial position of the Company andenable them to ensure that the financial statements comply with the CompaniesAct 2006.They are also responsible for safeguarding the assets of the Company and hencefor taking reasonable steps for the prevention and detection of fraud and otherirregularities. The Directors are also responsible for preparing the StrategicReport, Directors' Report, the Directors' Remuneration Report, the CorporateGovernance Statement and the Report of the Audit and Management EngagementCommittee in accordance with the Companies Act 2006 and applicable regulations,including the requirements of the Listing Rules and the Disclosure andTransparency Rules. The Directors have delegated responsibility to theInvestment Manager for the maintenance and integrity of the Company's corporateand financial information included on the Investment Manager's website.Legislation in the United Kingdom governing the preparation and disseminationof financial statements may differ from legislation in other jurisdictions.Each of the Directors, whose names are listed on page 13 of the Annual Report,confirm to the best of their knowledge that:* the financial statements, which have been prepared in accordance with IFRS as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and net return of the Company; and* the Annual Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.The 2012 UK Corporate Governance Code also requires Directors to ensure thatthe Annual Report and Accounts are fair, balanced and understandable. In orderto reach a conclusion on this matter, the Board has requested that the Auditand Management Engagement Committee advise on whether it considers that theAnnual Report and Accounts fulfils these requirements. The process by which theCommittee has reached these conclusions is set out in the Audit and ManagementEngagement Committee's report on pages 31 to 33 of the Annual Report. As a result,the Board has concluded that the Annual Report for the period ended 31 October 2013,taken as a whole, is fair, balanced and understandable and provides the informationnecessary for shareholders to assess the Company's performance, business modeland strategy.For and on behalf of the BoardSimon MillerChairman12 December 2013Statement of Comprehensive Incomefor the period from 30 August 2012 (date of incorporation) to 31 October 2013Notes Revenue Capital Total 2013 2013 2013 £'000 £'000 £'000Gains on investments held at fair valuethrough profit or loss - 8,825 8,825Gains on foreign exchange - 754 754Income from investments held at fair valuethrough profit or loss 3 2,600 - 2,600Other income 3 1,868 - 1,868 -------- -------- --------Total income 4,468 9,579 14,047 -------- -------- --------ExpensesInvestment management fees 4 (218) (655) (873)Other operating expenses 5 (326) (15) (341)-------- -------- --------Total operating expenses (544) (670) (1,214) -------- -------- --------Net profit on ordinary activities beforefinance costs and taxation 3,924 8,909 12,833Finance costs (4) (11) (15) -------- -------- --------Net profit on ordinary activities beforetaxation 3,920 8,898 12,818Taxation (666) 156 (510) -------- -------- --------Net profit on ordinary activities aftertaxation 3,254 9,054 12,308 ======== ======== ========Earnings per ordinary share 7 4.28p 11.91p 16.19p ======== ======== ========The total column of this statement represents the Company's Statement ofComprehensive Income, prepared in accordance with International FinancialReporting Standards ('IFRS') as adopted by the European Union. Thesupplementary revenue and capital columns are both prepared under guidancepublished by the Association of Investment Companies ('AIC'). All items in theabove statement derive from continuing operations. No operations were acquiredor discontinued during the period.The Company does not have any other recognised gains or losses. The net profitfor the period disclosed above represents the Company's total comprehensiveincome.Statement of Changes in Equityfor the period from 30 August 2012 (date of incorporation) to 31 October 2013Notes Called up Share Capital Special Capital Revenue Total share premium redemption reserve reserves reserve £'000 capital account reserve £'000 £'000 £'000 £'000 £'000 £'000For the period ended31 October 2013Total ComprehensiveIncome:Net profit for theperiod - - - - 9,054 3,254 12,308Transactions withowners, recordeddirectly to equity:Issue of managementshares 8 50 - - - - - 50Issue of ordinaryshares 8 854 86,833 - - - - 87,687Share issue costs 9 - (1,899) - - - - (1,899)Cancellation ofshare premiumaccount 9 - (63,213) - 63,213 - - -Dividends paid 9 - - - - - (2,307) (2,307)Share issue - Cshares 9 1,550 13,950 - - - - 15,500Share conversion - Cshares toordinary shares 9 (1,410) - 1,410 - - - -Redemption andcancellation ofmanagement shares 9 (50) - 50 - (50) - (50) -------- -------- -------- -------- -------- -------- --------At 31 October 2013 994 35,671 1,460 63,213 9,004 947 111,289 -------- -------- -------- -------- -------- -------- --------Statement of Financial Positionas at 31 October 2013Notes 31 October 2013 £'000Non current assetsInvestments held at fair value through profit or loss 112,429 --------Current assetsOther receivables 1,097Cash and cash equivalents 227 -------- 1,324Current liabilitiesBank overdraft (555)Derivative financial instruments (475)Other payables (1,434) --------Net current liabilities (1,140) --------Net assets 111,289 ========Equity attributable to equity holdersCalled up share capital 8 994Share premium account 9 35,671Capital redemption reserve 9 1,460Special reserve 9 63,213Capital reserves 10 9,004Revenue reserve 10 947 --------Total equity shareholders' funds 111,289 ========Net asset value per ordinary share 7 112.00p ========Cash Flow Statementfor the period from 30 August 2012 (date of incorporation) to 31 October 201331 October 2013 £'000Operating activitiesProfit before taxation 12,818Add back interest paid 15Less: gains on investments held at fair value through profit or loss (8,825)Net movement on foreign exchange (754)Sales of investments held at fair value through profit or loss 52,861Purchases of investments held at fair value through profit or loss (155,990)Increase in other receivables (169)Increase in other payables 666Increase in amounts due from brokers (228)Increase in amounts due to brokers 352 --------Net cash outflow from operating activities before interest andtaxation (99,254) --------Interest paid (15)Taxation on investment income included within gross income (406) --------Net cash outflow from operating activities (99,675) --------Financing activitiesDividends paid (2,307)Proceeds from issue of ordinary shares 102,509Share issue costs paid (1,609) --------Net cash inflow from financing activities 98,593 --------Decrease in cash and cash equivalents (1,082) --------Cash and cash equivalents at start of period -Effects of foreign exchange rate changes 754 --------Cash and cash equivalents at end of period (328) --------Comprised of:Cash and cash equivalents 227Bank overdraft (555) -------- (328) ========Notes to the Financial Statements1. Principal activityThe principal activity of the Company is that of an investment trust companywithin the meaning of section 1158 of the Corporation Tax Act 2010. Thefinancial statements cover the period from the date of incorporation on 30August 2012 to 31 October 2013. The Company's ordinary shares were listed onthe Official List of the UK Listing Authority and admitted to trading on themain market for listed securities of the London Stock Exchange on 24 October2012. As this is the Company's first accounting period, no comparative figuresare presented.2. Accounting policiesThe principal accounting policies adopted by the Company are set out below.(a) Basis of preparationThe financial statements have been prepared in accordance with InternationalFinancial Reporting Standards ('IFRS') as adopted by the European Union ('EU')and as applied in accordance with the provisions of the Companies Act 2006. Allof the Company's operations are of a continuing nature. The Company's financialstatements are presented in sterling because that is the currency of theCompany's share capital, the currency of the country in which the majority ofshareholders reside and the currency in which the shareholders' dividenddistributions will be made. All values are rounded to the nearest thousandpounds (£'000) except where otherwise indicated.Insofar as the Statement of Recommended Practice ('SORP') for investment trustcompanies and venture capital trusts issued by the AIC, revised in January2009, is compatible with IFRS, the financial statements have been prepared inaccordance with the guidance set out in the?SORP.A number of new standards, amendments to standards and interpretations areeffective for annual periods beginning after 1 January 2013, and have not beenapplied in preparing these financial statements. None of these are expected tohave a significant effect on the measurement of the amounts recognised in thefinancial statements of the Company. However, IFRS 9 'Financial Instruments'issued in November 2009 is expected to change the classification of financialassets, but is not expected to have an impact on the measurement basis of thefinancial assets since the majority of the Company's financial assets aremeasured at fair value through profit or loss.IFRS 9 deals with classification and measurement of financial assets and itsrequirements represent a significant change from the existing requirements inIAS 39 in respect of financial assets. The standard contains two primarymeasurement categories for financial assets: at amortised cost and fair value.A financial asset would be measured at amortised cost if it is held within abusiness model whose objective is to hold assets in order to collectcontractual cash flows, and the asset's contractual terms give rise onspecified dates to cash flows that are solely payments of principal andinterest on the principal outstanding. All other financial assets would bemeasured at fair value. The standard eliminates the existing IAS 39 categoriesof 'held to maturity', 'available for sale' and 'loans and?receivables'.The standard has not yet been approved by the EU. Earlier application ispermitted. The Company does not plan to adopt this standard early.IFRS 10 Consolidated Financial Statements (effective 1 January 2014)establishes a single control model that applies to all entities includingspecial purpose entities. The changes introduced by IFRS 10 will requiremanagement to exercise significant judgement to determine which entities arecontrolled, and therefore are required to be consolidated by a parent.The Company does not prepare consolidated financial statements hence theprovisions of this statement are not applicable.IFRS 11 Joint Arrangements (effective 1 January 2014) removes the option toaccount for jointly controlled entities using proportionate?consolidation.This is not applicable to the Company as it holds no interests in jointarrangements.IFRS 12 Disclosure of Involvement with Other Entities (effective 1 January2014) now requires additional disclosures that relate to an entity`s interestsin subsidiaries, joint arrangements, associates and structured entities.This is not expected to apply to the Company as it does not prepareconsolidated financial statements and does not invest in structured entities.IFRS 13 Fair Value measurement (effective 1 January 2013) establishes a singlesource of guidance under IFRS for all fair value measurements. It does notchange when an entity is required to use fair value, but rather providesguidance on how to measure fair value under IFRS when fair value is required orpermitted.There will be no material impact on the financial position and performance ofthe Company given the simplicity of the portfolio.(b) Presentation of the Statement of Comprehensive IncomeIn order to reflect better the activities of an investment trust company and inaccordance with guidance issued by the AIC, supplementary information whichanalyses the Statement of Comprehensive Income between items of a revenue and acapital nature has been presented alongside the Statement of ComprehensiveIncome.(c) Segmental reportingThe Directors are of the opinion that the Company is engaged in a singlesegment of business being investment business.(d) IncomeDividends receivable on equity shares are recognised as revenue for the periodon an ex-dividend basis. Where no ex-dividend date is available, dividendsreceivable on or before the period end are treated as revenue for the period.Provision is made for any dividends not expected to be received. Specialdividends, if any, are treated as a capital or a revenue receipt depending onthe facts or circumstances of each particular case. The return on a debtsecurity is recognised on a time apportionment basis so as to reflect theeffective yield on the debt security. Interest income and expenses areaccounted for on an accruals basis.Options may be purchased or written over securities held in the portfolio forgenerating or protecting capital returns, or for generating or maintainingrevenue 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 isthe maintenance of capital, the premium is treated as a capital item. The valueof the option is subsequently marked to market to reflect the fair value of theoption based on traded prices.Option premium income is recognised as revenue evenly over the life of theoption contract and included in the revenue column of the Statement ofComprehensive Income unless the option has been written for the maintenance andenhancement of the Company's investment portfolio and represents an incidentalpart of a larger capital transaction, in which case any premia arising areallocated to the capital column of the Statement of Comprehensive Income. Wherethe premium is taken to revenue, an appropriate amount is shown as capitalreturn such that the total return reflects the overall change in the fair valueof the option. When an option is closed out or exercised the gain or loss isaccounted for as capital.(e) ExpensesAll expenses, including finance costs, are accounted for on an accruals basis.Expenses have been charged wholly to the revenue column of the Statement ofComprehensive Income, except as follows:* expenses which are incidental to the acquisition of an investment are included within the cost of the investment. Details of transaction costs on the purchases and sales of investments are disclosed within note 9 of the Financial Statements in the Annual Report.* 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) TaxationThe tax expense represents the sum of the tax currently payable and deferredtax. Tax payable is based on the taxable profit for the year. Taxable profitdiffers from profit before tax as reported in the Statement of ComprehensiveIncome because it excludes items of income or expense that are taxable ordeductible in other years and it further excludes items that are never taxableor deductible. The Company's liability for current tax is calculated using taxrates that have been enacted or substantively enacted by the balance sheetdate.Deferred taxation is recognised in respect of all temporary differences thathave originated but not reversed at the financial reporting date, wheretransactions or events that result in an obligation to pay more tax in thefuture or right to pay less tax in the future have occurred at the financialreporting date. This is subject to deferred tax assets only being recognised ifit is considered more likely than not that there will be suitable profits fromwhich the future reversal of the temporary differences can be deducted.Deferred tax assets and liabilities are measured at the rates applicable to thelegal jurisdictions in which they arise.(g) Investments held at fair value through profit or lossThe Company's investments are classified as held at fair value through profitor loss in accordance with IAS 39 - 'Financial Instruments: Recognition andMeasurement' and are managed and evaluated on a fair value basis in accordancewith its investment strategy.All investments are initially recognised as held at fair value through profitor loss. Purchases of investments are recognised on a trade date basis. Salesof investments are recognised on the trade date of the disposal. Proceeds aremeasured at fair value, which is regarded as the proceeds of sale less anytransaction 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 forthe estimated selling costs. This policy applies to all current and non currentasset investments held by the Company.Changes in the value of investments held at fair value through profit or lossand gains and losses on disposal are recognised in the Statement ofComprehensive Income as 'Gains or losses on investments held at fair valuethrough profit or loss'. Also included within the heading are transaction costsin relation to the purchase or sale of investments.(h) Other receivables and other payablesOther receivables and other payables do not carry any interest and are shortterm in nature and are accordingly stated at their nominal value.(i) Dividends payableUnder IFRS interim dividends are recognised when paid to shareholders. Finaldividends, if any, are only recognised after they have been approved byshareholders.(j) Foreign currency translationTransactions involving foreign currencies are converted at the rate ruling atthe date of the transaction.Foreign currency monetary assets and liabilities are translated into sterlingat the rate ruling on the financial reporting date. Foreign exchangedifferences arising on translation are recognised in the Statement ofComprehensive Income as a revenue or capital item depending on the income orexpense to which they relate.(k) Cash and cash equivalentsCash comprises cash in hand and on demand deposits. Cash equivalents are shortterm, highly liquid investments that are readily convertible to known amountsof cash and that are subject to an insignificant risk of changes in value.(l) Bank borrowingsBank overdrafts are recorded as the proceeds received. Finance charges areaccounted for on an accruals basis in the Statement of Comprehensive Incomeusing the effective interest rate method and are added to the carrying amountof the instruments to the extent that they are not settled in the period inwhich they arise.3. Income2013 £'000Investment income:UK listed dividends 42Overseas listed dividends 2,558 -------- 2,600Other income:Deposit interest on cash balances 2Option premium income 1,866 -------- 1,868 --------Total 4,468 ========During the period, the Company received premiums totalling £2,017,000 forwriting covered call options for the purposes of revenue generation, of which £1,866,000 was amortised to income. All derivative transactions were based onconstituent stocks in the Russell 1000 Value Index. At 31 October 2013, therewere 188 open positions with an associated liability of £475,000.4. Investment management fee2013 Revenue Capital Total £'000 £'000 £'000Investment management fee 218 655 873 -------- -------- --------Total 218 655 873 ======== ======== ========The Company has entered into a management agreement with BlackRock InvestmentManagement (UK) Limited ('BlackRock') under which BlackRock is entitled to aninvestment management fee, payable in arrears, calculated at the rate ofone-quarter of 1 per cent per quarter of the Company's market capitalisation.5. Other operating expenses2013 £'000Custody fee 22Auditors' remuneration:- audit services 26- non-audit services1 14Registrar's fee 20Directors' emoluments 86Other administration costs 158 -------- 326 ========The Company's ongoing charges, calculated as a percentage of average net assetsand using expenses, excluding interest costs, was 1.4%.Fees for non-audit services of £6,000 (exclusive of VAT) relate to review of theinterim financial statements. In addition, the auditor performed work in respectof the Company's C share issue for fees of £8,000 (exclusive of VAT).For the period from 30 August 2012 to 31 October 2013 a fee of £70,000(exclusive of VAT) was paid to Ernst & Young LLP for services provided inrelation to the launch of the Company and issues of ordinary shares. These havebeen included within share issue costs of £1,899,000 debited to the sharepremium account within the Statement of Changes in Equity.6. DividendsThe Directors have declared a fourth interim dividend of 1 pence per share. Thedividend was paid on 4 December 2013, to shareholders on the Company'sregister on 11 October 2013. Under IFRS, the fourth interim dividend has notbeen recognised as a liability in the financial statements as interim dividendsare not recognised in the financial statements until they are paid. They arealso debited directly to revenue ?reserves.The interim dividend payable in respect of the period ended 31 October 2013meets the requirements of section 1158 of the Corporation Tax Act ?2010 andsection 833 of the Companies Act 2006.2013 £'000Dividends on equity shares:1st interim dividend of 1 pence paid on 2 April 2013 (based on70,050,000 ordinary shares) 7012nd interim dividend of 1 pence paid on 2 July 2013 (based on76,175,000 ordinary shares) 7613rd interim dividend of 1 pence paid on 2 October 2013 (based on84,488,500 ordinary shares) 845 --------Accounted for in the financial statements 2,307 --------4th interim dividend of 1 pence paid on 4 December 2013 (based on84,488,500 ordinary shares) 845 --------Total dividends in respect of the period ended 31 October 2013 3,152 ========7. Earnings and net asset value per ordinary share2013Net revenue profit attributable to ordinary shareholders (£'000) 3,254Net capital profit attributable to ordinary shareholders (£'000) 9,054 --------Total profit attributable to ordinary shareholders (£'000) 12,308 --------Total equity attributable to shareholders (£'000) 111,289 --------The weighted average number of ordinary shares in issue during the period,on which the earnings per ordinary share was calculated,was: 76,004,895 --------The actual number of ordinary shares in issue at the end of the period,on which the net asset value was calculated,was: 99,361,305 --------Revenue earnings per share 4.28pCapital earnings per share 11.91p --------Total earnings per share 16.19p --------Net asset value per share - basic and diluted 112.00p --------Share price - ex-dividend 112.50p ========Basic and diluted earnings per share and net asset value per share are the sameas the Company does not have any dilutive securities outstanding.8. Called up share capitalTotal number Total number Nominal of shares of C shares value in issue in issue £'000Allotted, called up and fully paid sharecapital comprised:Ordinary shares of 1 pence each and C sharesof 10 penceAllotted, issued and fully paid:Issue of ordinary shares at launch 65,000,000 - 650C Shares issued - 15,500,000 1,550Conversion of C shares to ordinary shares 14,022,805 (15,500,000) (1,410)Further issues of ordinary shares 20,338,500 - 204 -------- -------- --------Shares issued 99,361,305 - 994Management shares of £1 each:Allotted, issued and fully paid:Issue of management shares 50,000 - 50Redemption and cancellation of managementshares (50,000) - (50) -------- -------- --------At 31 October 2013 99,361,305 - 994 ======== ======== ========On incorporation the Company issued 50,000 management shares which wereredeemed and cancelled on 18 October 2012. On 24?October 2012 the Companyissued 65,000,000 ordinary shares at 100p per share. The total considerationafter deduction of issue costs was £63,863,000. During the period to 31 October2013, the Company issued a further 34,361,305 shares for a total considerationof £37,425,000 after deduction of issue costs, including the conversion of theCompany's C shares into 14,022,805 ordinary shares. Since 31 ?October 2013, andup to the date of this report, the Company has issued 400,000 ordinary sharesfor a total consideration of £454,000 after deduction of issue costs. On 11 October2013 the Company issued 15,500,000 C shares with a nominal value of 10 pence each.On 18 October 2013 the C shares were converted into ordinary shares. The conversionratio of 0.9047 was calculated by reference to the total assets of the Company andthe net assets attributable to C share holders at the close of business on 17 October 2013.9. Share premium account and special reserveShare Capital Special premium redemption reserve account reserve £'000 £'000 £'000Issue of ordinary shares 86,833 - -Share issue costs (1,899) - -Issue of C shares 13,950 - -Conversion of C shares to ordinary shares - 1,410 -Cancellation of share premium account (63,213) - 63,213Redemption and cancellation of management shares - 50 - -------- -------- --------At 31 October 2013 35,671 1,460 63,213 ======== ======== ========Pursuant to a resolution of the Company passed on 7 September 2012, the Companyapplied to the Court for cancellation of its share premium account, so that theamount standing to the credit of that account immediately following the issueof ordinary shares pursuant to the offer, be cancelled. Court approval wasreceived on 12 December 2012, the order was filed with the Registrar ofCompanies on 19 December 2012 and £63,213,000 was transferred from the sharepremium account to a special reserve which is a distributable reserve.10. ReservesCapital Capital Revenue reserve reserve reserve arising on arising on £'000 investments revaluation of sold investments £'000 held £'000Total Comprehensive Income:Gains on realisation of investments 2,279 - -Cancellation of management shares (50) - -Changes in investment holdings gains - 6,546 -Gains on foreign currency transactions 754 - -Finance costs and investment management feecharged to capital after taxation (525) - -Revenue return for the period - - 3,254Dividends paid - - (2,307) -------- -------- --------At 31 October 2013 2,458 6,546 947 ======== ======== ========11. Transactions with Investment ManagerBlackRock Investment Management (UK) Limited, the Investment Manager, isconsidered to be a related party of the Company under the UK Listing Rulesdefinitions. Transactions and relationship details are set out in theDirectors' Report on page 18 of the Annual Report.The investment management fee for the period was £873,000, as discussed in note4. At 31 October 2013, an amount of £482,000 was outstanding in respect ofthese fees.12. Related party disclosureThe Board consists of four non-executive Directors, all of whom are consideredto be independent of the Investment Manager by the Board. None of the Directorshas a service contract with the Company. Effective from 24 October 2012, theChairman receives an annual fee of £30,000, the Chairman of the Audit andManagement Engagement Committee receives an annual fee of £25,000 and the otherDirectors receive an annual fee of £21,000. As at 31 October 2013, an amount of£8,080 was payable to Directors in respect of their annual fees.At 31 October 2013, the Directors' interests in the Company's ordinary shareswere as follows:31 October 2013 Ordinary sharesSimon Miller (Chairman) 38,094Christopher Casey 19,047Andrew Irvine 38,094Alice Ryder 9,04713. Publication of non-statutory accountsThe financial information contained in this announcement does not constitutestatutory accounts as defined in the Companies Act 2006. The 2013 Annual Reportand Financial Statements will be filed with the Registrar of Companies shortly.The report of the auditor for the period ended 31 October 2013 contains noqualification or statement under section 498(2) or (3) of the Companies Act2006.This announcement was approved by the Board of Directors on 12 December 2013.14. Annual ReportCopies of the Annual Report will be sent to members shortly and will beavailable from the registered office c/o The Company Secretary, BlackRock NorthAmerican Income Trust plc, 12 Throgmorton Avenue, London, EC2N 2DL.15. Annual General MeetingThe Annual General Meeting of the Company will be held at 12 ThrogmortonAvenue, London, EC2N 2DL on Thursday 13 February 2014 at 12.00 noon.ENDSThe Annual Report will also be available on the BlackRock Investment Managementwebsite at .blackrock.co.uk/intermediaries/literature/annual-report/blackrock-north-american-income-trust-plc-annual-report-2013.pdf. Neither thecontents of the Investment Manager's website nor the contents of any websiteaccessible from hyperlinks on the Investment Manager's website (or any otherwebsite) is incorporated into, or forms part of, this announcement.For further information, please contact:Jonathan Ruck Keene, Chairman, Specialist Client Group, BlackRock InvestmentManagement (UK) LimitedTel: 020 7743 2178Alexandra Ring, Media Relations, BlackRock Investment Management (UK) LimitedTel: 020 7743 358312 December 201312 Throgmorton AvenueLondonEC2N 2DLXLON迷你倉西貢