The North American Income Trust plc

US Equities

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
Name
The North American Income Trust plc
Manager
Aberdeen Standard Investments
Type
Closed Ended Investment Company
ISIN
GB0000293620
Sector
North America
Launched
05/06/1997
OCF
0.95 %
Risk Rating
4
3 Year Sharpe
1.28
3 Year Alpha
1.20
Yield
2.8 %
Benchmark
Russell 1000 Value TR USD
Fund Size
£ 408.69 million
NAV
1,453
Gearing
103
Discount Premium
-1
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 %
Chevron Corp 5.35 %
Cisco Systems Inc 4.98 %
Citigroup Inc 3.78 %
Philip Morris International Inc 3.70 %
BB&T Corp 3.65 %
Johnson & Johnson 3.52 %
CME Group Inc Class A 3.19 %
Verizon Communications Inc 3.06 %
Lockheed Martin Corp 2.97 %
Bristol-Myers Squibb Company 2.90 %
Region %
United States 87.91 %
Canada 10.61 %
Sector %
Financial Services 26.85 %
Healthcare 13.31 %
Consumer Defensive 11.07 %
Basic materials 9.39 %
Technology 8.69 %
Consumer Cyclical 8.37 %
Energy 8.04 %
Communication Services 5.97 %
Industrials 5.45 %
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 Deputy Head of North American Equities and Head of U.S. Small and Mid Caps 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 is responsible for the co-management of client portfolios. Fran joined Aberdeen 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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