The North American Income Trust plc
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Investor Warning

Please be aware of scams that can affect investors.

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NMPI Status

The Company currently conducts its affairs so that securities issued by The North American Income Trust plc can be recommended by financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled investment products (NMPIs) and intends to continue to do so for the foreseeable future.

The Company’s securities are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are securities in an investment trust.

 

Pre-investment Disclosure Document (PIDD)

The Alternative Investment Fund Manager Directive (“AIFMD”) requires Aberdeen Fund Managers Limited, as the alternative investment fund manager of The North American Income Trust plc, to make available to investors certain information prior to such investors’ investment in the Company.

The AIFMD is intended to offer increased protection to investors in investment products that do not fall under the existing European Union regime for regulation of investment products known as “UCITS”.

Read the PIDD for The North American Income Trust

 
 

Morningstar Ratings

Fund Rating

4 Star Rating
 
 

Risk Warning

The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.

Read the detailed Risk Warning
 

Past Performance

Past performance is not a guide to future results.
See latest monthly factsheet below for performance history.

 
 

Daily Data

At close 30-Oct-2014

Ord
Price850.25p
NAV897.66p
Prem/-Disc-5.28%
Net Dividend Yield3.29%


Source: Morningstar, NAV = Net Asset Value, excluding income.

 
 
 

The North American Income Trust plc

Objective

To provide investors with above average dividend income and long term capital growth through active management of a portfolio consisting predominantly of S&P 500 US equities. Dividends - paid semi-annually in first year; quarterly thereafter.

 
 

The North American Income Trust plc Half Year Report for the six months to 31 July 14
Paul Atkinson, Head of North American Equities

In this webcast Paul Atkinson gives an update on a wide range of subjects including performance, a sector breakdown, top twenty largest investments and an outlook for the Trust.

Click here to listen to the presentation.

 

 

Manager's Monthly Report

September 2014

Major North American equity indices moved lower in September amid ongoing geopolitical tensions, escalating military activity in the Middle East and ongoing concerns of higher US interest rates. Seven of the ten sectors within the broader-market S&P 500 Index lost ground during the month. The energy and consumer discretionary sectors saw the largest declines, while consumer staples and healthcare garnered the highest returns. The US investment-grade fixed income market also ended the month in negative territory as interest rates rose across most segments of the US Treasury yield curve.

In portfolio-related corporate news, Microsoft announced that it will acquire the Minecraft video game developer Mojang for $2.5 billion, which fits Xbox’s focus on core gaming. Separately, the company announced an increase in its quarterly dividend. Toymaker Hasbro, a major competitor of Fund holding Mattel, announced that it secured a doll license starting in 2016 for Disney’s line of Frozen (motion picture) merchandise and its Princess brands.

There were some notable dividend declarations from the Trust’s holdings over the month. Defence contractor Lockheed Martin announced a 13% increase in its quarterly dividend payment to US$1.50 per share, representing a 3.3% annualised yield at the stock’s closing price on 30 September. As noted above, Microsoft boosted its dividend by nearly 11%, resulting in an annualised yield of 2.7% at month-end. Philip Morris raised its dividend from US$0.94 to $1.00 per share; the stock’s annualised yield stood at 4.8% at 30 September. Finally, telecom Verizon Communications announced a 3.8% dividend increase, which is equivalent to a 4.4% annualised yield at the closing share price at the end of the month.

During the month, we initiated a position in Sonoco Products, a manufacturer of industrial and consumer packaging products. We believe its integrated manufacturing base and expanding geographical reach will drive higher levels of profit that its Board of Directors are committed to passing onto shareholders in the form of an attractive and growing dividend. We added to holdings in tobacco company Philip Morris International, oil and gas exploration and production company National Oilwell Varco, and Sysco, a distributor of food and related products to the food service industry. Conversely, we exited the position in consumer products maker Colgate-Palmolive for valuation reasons. We also sold supplemental life and health insurer Aflac given ongoing relative weakness in its business in Japan, from which it derives roughly 70% of its revenue. We reduced positions in diversified healthcare company Baxter International and snack foods and beverages producer PepsiCo.

Following the market slump in September, we continue to view valuations of our investments as reasonable. Although current levels of profitability are high by historic standards, we think they are stable and earnings expectations achievable. Naturally, we will be closely watching the beginning of the third-quarter earnings season and the impact that a stronger dollar may have on the overseas earnings of our investments. We are also watching for the potential impact that a quicker-than-expected normalisation of interest rates has on valuations of higher-than-average dividend-paying companies. Against this backdrop, the manager remains confident in the Trust’s ability to continue its recent record of covered increases in its dividend.

 
 

Trust Details

The North American Income Trust plc

Registered Office:
7th Floor
40 Princes Street,
Edinburgh,
EH2 2BY

Registered in Scotland as an Investment Company Number 005218