The North American Income Trust plc
Rated Fund 2013-19. Balances defensive and growth stocks
Part of the Aberdeen Standard Investments stable, North American Income boasts a quarterly dividend and a yield of 3%.
Ralph Bassett and Fran Radano, who took over the management of this investment trust in 2015, are experienced investors in the North American equities team operating from Philadelphia.
They describe the trust’s portfolio as having a ‘thoughtful balance’ of bellwether, defensive, low volatility stocks, such as enduring consumer staples brands and global healthcare franchises, combined with cash-generative growth companies, such as technology and industrial stocks. The equity portfolio typically has around 40 holdings.
They are also able to hold fixed income securities and use options to dampen volatility and add income for investors. They held 11 bonds accounting for 2.5% of the portfolio at the end of 2018 and 4.4% of the equity exposure was optionised.
Bassett and Radano take a team-based, research-intensive approach. They meet with all the companies they invest in so that they can understand their business models as well as trying to spot any weaknesses.
At the end of 2018, the trust’s largest sector exposure was financials, at just under a quarter of the portfolio. They believe this sector is likely to benefit from less regulation under the Trump administration, as well as higher net interest margins as rates move higher.
Overall, macroeconomic conditions remain conducive to broad-based corporate growth and, notwithstanding some ‘emerging yellow flags’, the broader economy is ‘not destined to roll over any time soon’, they say.
Shares in the trust typically trade at a mid to high single digit discount to net assets.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Chevron Corp||5.21 %|
|Cisco Systems Inc||4.15 %|
|BB&T Corp||3.74 %|
|Johnson & Johnson||3.71 %|
|CME Group Inc Class A||3.60 %|
|Procter & Gamble Co||3.52 %|
|Pfizer Inc||3.14 %|
|Philip Morris International Inc||3.07 %|
|Regions Financial Corp||2.82 %|
|DowDuPont Inc||2.77 %|
|United States||87.18 %|
|Financial Services||23.46 %|
|Consumer Defensive||12.38 %|
|Consumer Cyclical||9.30 %|
|Basic materials||8.97 %|
|Communication Services||5.37 %|
Mr. Tan joined American Century Investment Management, Inc. in 2018. Prior to joining American Century, Mr. Tan worked at Aberdeen Standard Investments from 2005 to 2018. Mr. Tan began his investment career in 1994 and earned a B.S. from University of International Business and Economics, Beijing and an M.B.A from Bucknell University.
Douglas Burtnick is Deputy Head of North American Equities on the North American Equity team responsible for the co-management of client portfolios. Doug joined Aberdeen in 2007 following the acquisition of Nationwide Financial Services. Previously, Doug worked at Brown Brothers Harriman & Barra, Inc. in portfolio and risk management roles. Doug graduated with a BS from Cornell University. He is a CFA charterholder.
Ralph Bassett is Head of North American Equities and oversees the region’s research effort in addition to portfolio construction. Ralph joined Aberdeen in 2006 upon the relocation of the Equity team from London to Philadelphia. Ralph earned a BS in Business, Finance (Hons) from Villanova University. He is a CFA charterholder.
Data provided by Morningstar.
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