The North American Income Trust plc

US Equities

Rated Fund 2013-20. Targets progressive and above-average dividends    

North American Income Trust is the inaugural winner of Best North American Trust in Money Observer's 2019 investment trust awards Ð a category introduced in recognition of the increase in investment trusts that invest in the region.

Fran Radano and Ralph Bassett, experienced investors in Aberdeen Standard Investments' North American equities team, took over the trust's management in 2015. They have delivered steady long-term outperformance, albeit a steady narrowing of the discount at which its shares trade from 7% to 0% in 2019 masked a year of relative underperformance.

The portfolio delivers a solid yield of 3% at present, paid quarterly. The managers target a progressive and above-average dividend, and long-term capital growth from investing mainly in S&P 500 constituents. They describe the trust as having a 'thoughtful balance' of bellwether, defensive, low-volatility stocks, such as enduring consumer staple brands and global healthcare franchises, combined with cash-generative growth companies. It has modest amounts in industrials and technology stocks. At the end of 2019, the trust's largest sector exposure was to financials, at just over a quarter of the portfolio. The equity portfolio typically has 40 holdings.

Radano and Bassett are able to hold fixed income securities, and they use options to dampen volatility and add income for investors. They held nine bonds (2.3% of the portfolio) at the end of 2019, while 12.1% of equity exposure was optionised. The managers 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 try to spot any weaknesses.

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Name
The North American Income Trust plc
Manager
Aberdeen Standard Investments
Type
Closed Ended Investment Company
ISIN
GB00BJ00Z303
Sector
North America
Launched
05/06/1997
OCF
0.91 %
Risk Rating
5
3 Year Sharpe
0.24
3 Year Alpha
-9.41
Yield
3.7 %
Benchmark
S&P 500 Index PR
Fund Size
£ 342.43 million
NAV
253
Gearing
102
Discount Premium
-5
The company invests in a portfolio predominantly comprised of S&P 500 constituents. The company may also invest in canadian stocks and US mid and small capitalisation companies to provide for diversified sources of income. The company may invest up to 20% of its GA in fixed income investments, which may include non-investment grade debt. The investment policy is flexible, enabling it to invest in all types of securities, including (but not limited to) equities, preference shares, debt, convertible securities, warrants, depositary receipts and other equityrelated securities.
Holding %
AbbVie Inc 6.07 %
Verizon Communications Inc 5.01 %
Philip Morris International Inc 4.81 %
Bristol-Myers Squibb Company 4.57 %
Gilead Sciences Inc 4.25 %
Lockheed Martin Corp 4.24 %
Citigroup Inc 4.19 %
Chevron Corp 4.01 %
TC Energy Corp 3.43 %
UnitedHealth Group Inc 3.00 %
Region %
United States 88.91 %
Canada 11.09 %
Sector %
Financial Services 21.19 %
Healthcare 20.67 %
Consumer Cyclical 11.95 %
Energy 9.43 %
Consumer Defensive 7.48 %
Industrials 6.65 %
Basic materials 6.16 %
Communication Services 5.17 %
Name
Aberdeen Standard Investments
Address
EC4M 9HH, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Ralph Bassett
Joined 06/30/2015

Ralph Bassett is Head of North American Equities at Aberdeen Standard Investments. Ralph oversees the region’s research effort in addition to portfolio construction. Ralph joined Aberdeen Asset Management 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.

Francis Radano
Joined 05/29/2012

Fran Radano is an Investment Director on the North American Equity team at Aberdeen Standard Investments. Fran analyzes current and prospective holdings and assists with the management of client portfolios. Fran joined Aberdeen Asset Management in 2007 following the acquisition of Nationwide Financial Services. Previously, Fran worked at Salomon Smith Barney and SEI Investments. Fran graduated with a BA in Economics from Dickinson College and an MBA in Finance from Villanova University. He is a CFA charterholder.

Data provided by Morningstar.

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