The North American Income Trust plc

Leading US companies picked for their higher income potential

Daily prices as of 24 Jun 2021

Share Price 273.50p

Estimated NAV cum income 295.21p

Estimated NAV ex income 294.88p

Dividend Yield 3.5%

Premium / (Discount) to NAV cum income -8.9%

Premium / (Discount) to NAV ex income -8.8%

2021 Annual General Meeting (AGM)

The 2021 Annual General Meeting had to be held behind closed doors on 1 June 2021 but the Manager has prepared the following presentation which we hope shareholders find useful. The Board hopes, and intends, that the 2022 Annual General Meeting will be held in person. 

Latest news

An update from our investment manager, Fran Radano - 21 May 2021

In April, there were further details of US President Joe Biden’s vision regarding infrastructure and taxation, which came on the heels of another round of fiscal stimulus. The White House announced an infrastructure bill valued at about US$2.5 trillion over 10 years, financed by various increases in corporate taxes over the next 15 years. The proposed legislation includes green initiatives with a price tag of roughly US$1 trillion, including US$400 billion in tax credits for carbon capture, investments in renewables, upgrades to housing-stock efficiency, and modernisation of transportation and buildout of electric-vehicle (EV) infrastructure. In our view, US stock prices have already embedded some degree of these policy tailwinds into their valuations since Democrats won control of the US Senate in January of this year. The Biden administration’s proposal marks a big step forward in terms of US climate policy action, but we have seen that the market is not yet prepared to price in further gains to companies and sectors that should benefit from the associated spending. Uncertainty remains as the tax increases needed to fund the proposals (which target corporate tax rates and the top 1% of earners) are significant enough to cast doubt on how much of the current draft will remain in the final legislation.

As widely expected, the US Federal Reserve (Fed) left its benchmark interest rate unchanged during its April meeting, with the main substantive change to the post-meeting statement being an upgrade to the Fed’s characterisation of the risk outlook around the Covid-19 pandemic, removing the reference to “considerable risks” and instead simply noting that risks “remain.” Fed Chair Jerome Powell again stressed that while the central bank acknowledges that inflation has moved up recently, it believes this was due to “transitory factors.” This remains the most critical signal from the Fed that it intends to look past the expected inflation volatility this year, implying (in line with the view from Aberdeen Standard Investment’s in-house economists) that employment and coronavirus containment will be far more instructive than short-term inflation in crafting its short-term interest-rate policy and timeline for tapering.

Remarkably, in our view, as of the end of the first quarter of 2021, US nominal GDP is now back above its prior peak level in the fourth quarter of 2019, a short time before the pandemic struck. We have seen this sharp rebound reflected at the company level, as corporations are posting better-than-expected first-quarter results and raising full year guidance for 2021. While companies have noted higher input costs (especially in certain commodities), this largely has been surpassed by confidence on their ability to pass on additional costs. If anything, companies are raising their margin outlooks due to strong operational gearing to volume growth coming out of the cycle. We believe that this dynamic should provide sufficient support for earnings growth in 2021. Beyond 2021, we anticipate that the market’s focus will shift towards sustainability of growth as the cycle normalises.

About us

Hear more from our investment manager Fran Radano:

 

Key people

Francis Radano

Francis Radano

Senior Investment Manager

Fran Radano is a Senior Investment Manager on the North American Equity Team. Fran joined Aberdeen in 2007 following the acquisition of Nationwide Financial Services’ equity investment management team, where he had served as a senior equity research analyst providing fundamental research coverage for the consumer discretionary and consumer staples sectors since 1999. Previously, Fran was a research analyst and vice president at Salomon Smith Barney. Prior to that, he was an associate trader at SEI Investments. Fran received a BA in Economics from Dickinson College, and has also earned a MBA in Finance from Villanova University. He is a CFA® Charterholder.

Ralph Bassett

Ralph Bassett

Deputy Head of North American Equities

Ralph Bassett is Deputy Head of North American Equities. Ralph joined Aberdeen in 2006 from Navigant Consulting where he worked as a management consultant providing client analysis and direction on critical business decisions. Previously, Ralph held internships at J.P. Morgan Chase and Boenning and Scattergood, a boutique investment bank. Ralph graduated with a BS in Finance from Villanova University. He is a CFA® Charterholder.

  • Francis Radano

    Francis Radano

    Senior Investment Manager

    Fran Radano is a Senior Investment Manager on the North American Equity Team. Fran joined Aberdeen in 2007 following the acquisition of Nationwide Financial Services’ equity investment management team, where he had served as a senior equity research analyst providing fundamental research coverage for the consumer discretionary and consumer staples sectors since 1999. Previously, Fran was a research analyst and vice president at Salomon Smith Barney. Prior to that, he was an associate trader at SEI Investments. Fran received a BA in Economics from Dickinson College, and has also earned a MBA in Finance from Villanova University. He is a CFA® Charterholder.

  • Ralph Bassett

    Ralph Bassett

    Deputy Head of North American Equities

    Ralph Bassett is Deputy Head of North American Equities. Ralph joined Aberdeen in 2006 from Navigant Consulting where he worked as a management consultant providing client analysis and direction on critical business decisions. Previously, Ralph held internships at J.P. Morgan Chase and Boenning and Scattergood, a boutique investment bank. Ralph graduated with a BS in Finance from Villanova University. He is a CFA® Charterholder.

James Ferguson

James Ferguson

Chairman

James Ferguson, appointed on 12 March 2002, is a former chairman and director of Stewart Ivory and a former deputy chairman of the AIC. He is the chairman of The Scottish Oriental Smaller Companies Investment Trust, Value and Income Trust and Northern 3 VCT and a director of The Independent Investment Trust.

Karyn Lamont

Karyn Lamont

Chairman of Audit Committee and Independent Non-Executive Director

Karyn Lamont, appointed on 18 September 2018, is a chartered accountant and former audit partner at PricewaterhouseCoopers until December 2016. She has over 25 years’ experience and provided audit and other services to a range of clients, including a number of investment trusts, across the UK's financial services sector, including outsourcing providers. She is the audit committee chairman of The Scottish Investment Trust plc, Scottish Building Society, iomart Group plc and Scottish American Investment Company plc.

Susan Rice

Dame Susan Rice

Senior Independent Director

Susan Rice, appointed on 17 March 2015, is a chartered banker. She chairs Scottish Water, the Financial Services Culture Board and the Scottish Fiscal Commission. She is also Senior Independent Director of J Sainsbury's plc. Her previous roles include managing director of Lloyds Banking Group Scotland, chairman and chief executive of the bank Lloyds TSB Scotland plc, a director of the Bank of England and a non-executive director of SSE plc, Big Society Capital and Charity Bank. She sits on the advisory group to P-CAN, the UK's Place-Based Climate Action network and chairs the Global Steering Group of GEFI, the Global Ethical Finance Initiative. She was a member of the First Minister's Council of Economic Advisers and, until recently, President of the Scottish Council of Development and Industry. Originally from the United States, her early career was at Yale and Colgate universities and then at NatWest Bancorp. In 2000, she became the first woman to head a UK clearing bank.

susannah nicklin

Susannah Nicklin

Independent Non-Executive Director

Susannah Nicklin, appointed on 18 September 2018, is a financial services professional with over 20 years of experience in executive roles at Goldman Sachs and Alliance Bernstein in the US, Australia and the UK. She has also worked in the social impact private equity sector with Bridges Ventures, the Global Impact Investing Network and Impact Ventures UK. She is Chair of Schroder BSC Social Impact Trust plc, the Senior Independent Director of Pantheon International plc and a non-executive director of Amati AIM VCT plc and Baronsmead Venture Trust plc. She is a CFA® charterholder.

Charles Park

Charles Park

Independent Non-Executive Director

Charles Park, appointed on 13 June 2017, has over 25 years of investment management experience. He is a co-founder of Findlay Park Investment Management, a US boutique asset management house which was established in 1997. Prior to his retirement from the firm in 2016, he was deputy chief investment officer with joint responsibility for managing Findlay Park American Fund.

Prior to co-founding Findlay Park, Charles was an investment manager at Hill Samuel Asset Management and an analyst at Framlington Investment Management.

  • James Ferguson

    James Ferguson

    Chairman

    James Ferguson, appointed on 12 March 2002, is a former chairman and director of Stewart Ivory and a former deputy chairman of the AIC. He is the chairman of The Scottish Oriental Smaller Companies Investment Trust, Value and Income Trust and Northern 3 VCT and a director of The Independent Investment Trust.

  • Karyn Lamont

    Karyn Lamont

    Chairman of Audit Committee and Independent Non-Executive Director

    Karyn Lamont, appointed on 18 September 2018, is a chartered accountant and former audit partner at PricewaterhouseCoopers until December 2016. She has over 25 years’ experience and provided audit and other services to a range of clients, including a number of investment trusts, across the UK's financial services sector, including outsourcing providers. She is the audit committee chairman of The Scottish Investment Trust plc, Scottish Building Society, iomart Group plc and Scottish American Investment Company plc.

  • Susan Rice

    Dame Susan Rice

    Senior Independent Director

    Susan Rice, appointed on 17 March 2015, is a chartered banker. She chairs Scottish Water, the Financial Services Culture Board and the Scottish Fiscal Commission. She is also Senior Independent Director of J Sainsbury's plc. Her previous roles include managing director of Lloyds Banking Group Scotland, chairman and chief executive of the bank Lloyds TSB Scotland plc, a director of the Bank of England and a non-executive director of SSE plc, Big Society Capital and Charity Bank. She sits on the advisory group to P-CAN, the UK's Place-Based Climate Action network and chairs the Global Steering Group of GEFI, the Global Ethical Finance Initiative. She was a member of the First Minister's Council of Economic Advisers and, until recently, President of the Scottish Council of Development and Industry. Originally from the United States, her early career was at Yale and Colgate universities and then at NatWest Bancorp. In 2000, she became the first woman to head a UK clearing bank.

  • susannah nicklin

    Susannah Nicklin

    Independent Non-Executive Director

    Susannah Nicklin, appointed on 18 September 2018, is a financial services professional with over 20 years of experience in executive roles at Goldman Sachs and Alliance Bernstein in the US, Australia and the UK. She has also worked in the social impact private equity sector with Bridges Ventures, the Global Impact Investing Network and Impact Ventures UK. She is Chair of Schroder BSC Social Impact Trust plc, the Senior Independent Director of Pantheon International plc and a non-executive director of Amati AIM VCT plc and Baronsmead Venture Trust plc. She is a CFA® charterholder.

  • Charles Park

    Charles Park

    Independent Non-Executive Director

    Charles Park, appointed on 13 June 2017, has over 25 years of investment management experience. He is a co-founder of Findlay Park Investment Management, a US boutique asset management house which was established in 1997. Prior to his retirement from the firm in 2016, he was deputy chief investment officer with joint responsibility for managing Findlay Park American Fund.

    Prior to co-founding Findlay Park, Charles was an investment manager at Hill Samuel Asset Management and an analyst at Framlington Investment Management.

Financial calendar

Year End 31 January
Accounts published March
Annual General Meeting June
Dividend Paid February, June, August, November

Trust details

The North American Income Trust plc

Registered Office:
1 George Street
Edinburgh
EH2 2LL

Registered in Scotland as an Investment Company Number SC005218

Launch Date: November 1902

Risk warning
Risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. Please refer to the relevant Key Information Document (KID) prior to making an investment decision. Please be aware of scams that can affect investors.