US equity income-focused funds, like the North American Income Trust (NAIT), have not had to deal with the suspension of dividends in the way that their UK peers have. Though share buybacks have ceased, regulators in the US have not banned bank distributions in the way that they have elsewhere, while healthcare, NAIT’s other major exposure, is holding up very well… Read more
NAIT provides the purest access to North American income – its closest peer, BlackRock North American Income, allocates over 20% to Europe. NAIT’s manager, Fran Radano, has taken advantage of recent market volatility; exiting some small-cap names with low earnings visibility in favour of what he considers to be better-quality names while they have been trading at cheap valuations. Meanwhile, NAIT has revenue reserves nearing 90% of last year’s total dividend and the ability to supplement portfolio income through option writing, both of which provide investors with additional comfort over the dividend.
Above average income and long-term growth
NAIT’s objective is to invest for above-average dividend income and long-term capital growth, mainly from a concentrated portfolio of S&P 500 US equities.
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