BlackRock Investment Management is launching a North American Income trust which will offer an annual dividend yield of 4 per cent.
The equity income investment trust will be floated on the London Stock Exchange and will look to outperform the Russell 1000 Value Index on a total return basis.
The trust will focus on US large-cap quoted companies and will use covered call options as part of an active options overlay strategy designed to boost the dividend, which will be paid quarterly, net of fees. The vehicle will be managed by the US based equity income team headed by Bob Shearer and Kathleen Anderson.
BlackRock specialist client group chairman Jonathan Ruck Keene says: “In today’s volatile and uncertain markets, with low interest rates and confidence scarce, we believe that the BlackRock North American Investment Trust presents investors with the opportunity to access the investment capabilities from talented managers who have demonstrated a strong long term performance track record in US equity income.”