The North American Income Trust plc
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Investor Warning

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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

 
 
Money Observer Awards 2015
 
 

Daily Data

At close 30-Mar-2015

Ord
Price875.00p
NAV959.94p
Prem/-Disc-8.85%
Net Dividend Yield3.43%


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

 
 
 

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.

 
 
 

Portfolio Holdings Disclaimer

Holdings are subject to change at any time. Holdings should not be relied upon in making investment decisions and should not be construed as research or investment advice regarding specific securities. By accessing the portfolio holdings, you agree not to reproduce, distribute or disseminate the portfolio holdings, in whole or in part.

 

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

February 2015

North American equity markets improved in February as a result of increased optimism attributable to generally positive corporate earnings reports bolstered by strengthening economic data. While fourth-quarter US GDP was down slightly from the government’s initial estimate due to lower private inventory investment, it still managed to grow at an annualised rate of 2.2%. US non-farm payrolls increased by 295,000 in February, led by the food services and professional and business services sectors. The unemployment rate declined 0.2 percentage point to 5.5%. Wages increased 2.0% year over year, modestly outpacing the core inflation rate of 1.6%. The NYMEX crude oil price experienced significant volatility during the month, eventually spiking at month-end amid reports of declining US oil rig counts. The upturn in oil filtered down to the NYMEX wholesale petrol price, which increased nearly 25% over the month.

The more cyclical information technology and materials sectors were the strongest performers within the US broader-market S&P 500 Index in February amid the rally in equities. The lone sector to post a negative return was utilities, as these stocks historically have been strongly inversely correlated with interest rate movements. Fed Chair Janet Yellen spoke favourably about the US economic outlook at a testimony before the Senate Banking Committee on 24 February. At the end of the day, the decision to raise rates will primarily be data-driven. So while ambiguity continues to surround the timing of a potential hike in short-term rates, the Fed does seem to be closer to raising rates than it was last year. The US investment-grade fixed income market, as measured by the Barclays U.S. Aggregate Bond Index, declined 0.94% in February, as yields moved higher across the US Treasury curve over the month.

In portfolio-related news, pharmaceutical firm Pfizer agreed to purchase Hospira for $16 billion. The deal will expand Pfizer’s exposure to the injectable drugs market; management estimated it could result in $800 million in cost savings over the next three years. Toy-maker Mattel and hotel operator Starwood Hotels & Resorts Worldwide are searching for new CEOs. Mattel CEO Bryan Stockton resigned in January following a disappointing holiday sales season. The company appointed its current Chairman and former PepsiCo executive Christopher Sinclair as interim CEO. Starwood CEO Frits van Paasschen resigned as President, CEO, and director by mutual agreement with the company’s board of directors. Adam Aron, a Starwood director since 2006, has been named interim CEO while the executive search continues. Several Trust holdings announced dividend actions in February. Among others, networking equipment maker Cisco Systems increased its quarterly payout 10.5%, equivalent to an annualised yield of 2.8% at the stock’s closing price on 28 February. Molson Coors Brewing Co. boosted its dividend by nearly 11% to US$0.41 per share, representing a 2.2% annualised yield at the closing price of the shares at month-end. Starwood Hotels & Resorts Worldwide raised its quarterly dividend by 7% to US$0.375 per share, resulting in an annualised yield of 1.9% at the stock’s closing price at the end of February.

During the month, we added to the existing equity investment in oil and gas exploration and production company ConocoPhillips and reduced the position in integrated oil and gas company Exxon Mobil.

We are cognizant that the bull market is entering its seventh year. Consequently, we expect the trend of higher market volatility that began in the second half of last year to remain with us for some considerable time. Higher volatility will present challenges to our investment views but also create opportunities to add to our favourite holdings at lower prices. Going forward, we expect our investments to continue to make good capital allocation decisions and we are encouraged by the scale and speed of adjustments made by those holdings most recently affected by the slide in commodity prices. We disagree with those who believe US companies have systematically underinvested in growth capital at the expense of shareholder distributions. For the best companies, abundant cash flows have been sufficient to satisfy the need for disciplined reinvestment as well as growing dividends, offsetting equity issuance and leaving scope for strategic acquisitions. We believe many US companies, including select financials, are in the best shape they have been for a generation, having reaped the benefits of technological advances, globalisation and cheap money.

 
 

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