REG - North American IT - Annual Financial Report
24/04/2026 07:00
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RNS Number : 7395B North American Income Trust (The) 24 April 2026
JANUS HENDERSON FUND MANAGEMENT UK LIMITED
THE NORTH AMERICAN INCOME TRUST PLC
Legal Entity Identifier (LEI): 5493007GCUW7G2BKY360
24 April 2026
THE NORTH AMERICAN INCOME TRUST PLC
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 JANUARY 2026
This announcement contains regulated information
INVESTMENT 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.
PERFORMANCE HIGHLIGHTS
Year ended Year ended
31 January 31 January
2026 2025
NAV per share total return(1,4) 8.8% 23.8%
Share price total return(2,4) 13.8% 24.9%
Russell 1000 Value Index total return (in Sterling terms) 4.9% 22.5%
S&P High Yield Dividend Aristocrats Index total return (in Sterling terms) 3.1% 14.9%
NAV per share at year end with debt at fair value(3,4) 402.8p 382.5p
NAV per share at year end with debt at par(3,4) 399.5p 379.2p
Share price at year end 380.0p 347.0p
Discount at year end with debt at fair value (3,4) 5.7% 9.3%
Discount at year end with debt at par (3,4) 4.9% 8.5%
Revenue return per share 12.89p 12.44p
Dividend total per share(5) 12.80p 12.20p
Dividend yield at the end of the year(4,5) 3.4% 3.5%
Dividend growth for the year(5) 4.9% 4.3%
Net assets at year end £458.3m £467.8m
Ongoing charges(4) 0.73% 0.77%
Total Return Performance to 31 January 2026
1 year 3 years 5 years 10 years
% % % %
NAV per share(1,4) 8.8 32.9 87.3 199.3
Share price(2) 13.8 40.8 98.8 234.9
Russell 1000 Value Index (in Sterling terms) 4.9 31.8 80.6 210.2
S&P High Yield Dividend Aristocrats Index (in Sterling terms) 3.1 12.6 63.9 197.3
(1) Total return is calculated based on the published NAV per ordinary share with
debt at fair value and with dividends reinvested, excluding reinvestment cost
(2) Share price using mid-market closing prices
(3) NAV per share with dividends reinvested, excluding reinvestment costs, and
discount shown with debt at fair value. NAV per share with dividends
reinvested, excluding reinvestment costs, and discount with debt at par were
399.5p (2025: 379.2p) and 4.9% (2025: 8.5%) respectively
(4) An explanation of the alternative performance measures can be found in the
Annual Report
(5) Based on the dividends paid or recommended for the year, including the fourth
interim dividend of 4.4p per share
Sources: Morningstar Direct, Janus Henderson Investors, LSEG Datastream
CHAIRMAN'S STATEMENT
For the Company's financial year ended 31 January 2026, I am pleased to report
that NAIT outperformed both reference indices with a net asset value per share
total return of 8.8% against the Russell 1000 Value Index (in Sterling terms)
of 4.9% and S&P High Yield Dividend Aristocrats Index (in Sterling terms)
which returned 3.1%. Since Janus Henderson Investors took responsibility for
managing the portfolio of NAIT on 1 August 2024 (to 31 January 2026), those
figures are 20.9%, 15.8% and 7.9% respectively.
Despite not offering the highest yield in the universe of income trusts, NAIT
has provided steady growth in dividends, uninterrupted even in 2020, and has
compounded its total NAV return at 11.6% over the last 10 years. The year
ended 31 January 2026 continued to be a busy year for the Board and we
highlight some of the board matters that we have been debating over the last
year in the Annual Report.
Performance
While NAIT is still early in its investment journey with Janus Henderson
Investors, the Board is very encouraged by last year's performance and pleased
with how the relationship with Janus Henderson Investors is evolving.
We highlighted the strong relative performance in net asset value per share
above. The share price total return performance was even better, rising 13.8%,
helped by a narrowing of the discount from 9.3% at the beginning of the
financial year to 5.7% with debt calculated at fair value at the end of the
period (or, with debt calculated at par, from 8.5% at the beginning of the
financial year to 4.9%). This performance was despite a significant decline in
the dollar of roughly 10% (GBP to US$ starting at 1.24 on 31 January 2025 and
finishing on 31 January 2026 at 1.37). NAIT does not typically hedge its
dollar exposure so dollar weakness directly translates to Sterling holders.
However, in recent years, the US$ has generally been a help to the revenue
reserves.
The bulk of the outperformance came from stock selection in a wide variety of
industries. The broader market continued to be driven by large capitalisation
technology stocks that were associated with the prospects of the AI
revolution. The Fund Managers were able to take advantage of some share price
dislocations during the tariff uncertainties in April 2025 and the Fund
Managers go into more detail in their commentary.
Earnings, dividends and buybacks
Revenue reserves before the fourth dividend rose to 20.2p per share up from
18.4p in the prior year. The Company's revenue return per share was 12.9p
compared to last year's 12.4p per share.
NAIT has so far delivered 15 years of increasing dividends per share. The
Board is pleased to note the Company's next generation dividend hero status.
Revenue reserves continue to be over one year and are there to support
dividend increases should the need arise. When determining the level of
dividend, the Board, in conjunction with the Manager, takes into account the
Manager's forecast for the growth in dividends at the individual company level
and possible changes in the currency and other macro factors. The Board is
pleased to declare a fourth interim dividend of 4.4p per share, resulting in
total dividends for the year ended 31 January 2026 of 12.8p per share (2025:
12.2p), an increase of 4.9% on the prior year. The fourth interim dividend
will be paid on 27 May 2026 to shareholders on the register on 8 May 2026. The
share price will be quoted ex-dividend on 7 May 2026. The dividend yield on
the portfolio is approximately 3.4% at that level.
In the year to 31 January 2026, 8,627,316 shares were bought back which added
4.2p per share to the NAV. As previously mentioned, the discount has declined
from 9.3% at the beginning of the financial year to 5.7% at the end of the
year (or, with debt calculated at par, from 8.5% at the beginning of the
financial year to 4.9%).
You will see in the Notice of Meeting for the 2026 AGM that the Board is
proposing special resolutions in relation to the cancellation of the share
premium account and the capital redemption reserve. The share premium account
was created through the issuance of new shares and there is currently £51.8m
held in this reserve. The capital redemption reserve was created through the
buyback of shares and there is currently £16.3m held in this reserve.
Cancelling these two reserves will create greater distributable reserves and
provide more flexibility for the Company in how it might deploy its capital.
Initiatives such as these are seen as good 'housekeeping'. More information
can be found in the explanation of resolutions in the Notice of Meeting as set
out in the Annual Report.
Board matters
Over the last year, the Board spent considerable time debating the level of
buybacks, the amount of dividend increase, the marketing strategy and budget,
and importantly NAIT's dollar exposure. More information on these discussions
and other matters discussed by the Board during the year can be found in the
Annual Report.
The Board also focused on succession planning. Bulbul Barrett, as announced in
December 2024, was appointed to the Board with effect from 1 May 2025 and was
elected by shareholders in June 2025 at the Company's AGM. John Adebiyi joined
the Board on 1 October 2025 and a resolution regarding his election to the
Board will be put to shareholders at the AGM in June 2026.
After nine years at NAIT, best corporate governance practice dictates that I
will step down as Chairman of the Board at the AGM in June. As announced in
February 2026, I am very pleased to inform you that Patrick Edwardson will
assume the role of Chairman of the Board of NAIT. Patrick is currently the
Senior Independent Director of NAIT. The rest of the Board undertook a
thorough review to identify the best candidate. I know that Patrick, having
been through the entire transition to Janus Henderson Investors and with his
background and experience, is the ideal choice of Chairman.
Annual General Meeting ("AGM")
We are pleased to invite shareholders to attend the AGM in person at 12.30 pm
on Wednesday, 17 June 2026 at 201 Bishopsgate, London EC2M 3AE. We encourage
shareholders to attend for the opportunity to meet the Board and Fund
Managers. Jeremiah and Fran will give a presentation on the year under review
and the outlook for the year ahead. Shareholders unable to join in person are
welcome to join the meeting by videoconference. Further details can be found
in the Annual Report and in the AGM Notice as set out in the Annual Report.
The Manager
Shareholders may be aware of the offer by Trian Fund Management and General
Catalyst to acquire the remainder of Janus Henderson Investors they do not own
(Janus Henderson Investors is currently a publicly listed company). We are not
expecting any changes to the way NAIT is managed and will monitor the matter.
Outlook
Global stock markets including the US have clearly been impacted by the
conflict in the Middle East. Oil prices have risen, inflation is rising and
interest rate forecasts have been reset, all at the time of unprecedented
levels of sovereign debt. No one knows for sure how long the conflict will
last and the range of possible outcomes is wide. Not only have the
macroeconomic risks increased but companies also face technological disruption
from agentic AI. Digital agents writing code will disintermediate many of the
knowledge-based areas, such as legal and accounting professions, thereby
lowering their terminal value. There are strong debates as to the degree of
disruption and how long this might take, but we are already witnessing some of
the effects. The Board remains confident that the experienced team at Janus
Henderson Investors, with all its resources, is equipped to distinguish
between the winners and losers in this new dispensation. They have the
flexibility to invest across the whole market and are not obliged to own any
particular stock or sector. Moreover, the stocks currently held trade at a
lower multiple of forward earnings than the wider US market.
Technological change can be disruptive and geopolitical events are inherently
unpredictable, but such episodes can also provide opportunity. As Buffett
said: "Uncertainty, actually, is the friend of the buyer of long-term values."
Thank you for your ongoing support.
Charles Park
Chairman
23 April 2026
FUND MANAGERS' REPORT
Market review
The financial year ending 31 January 2026 was another positive period for US
share prices, with the S&P 500 growing 5.4% (in Sterling terms). The year
was marked by tremendous volatility early on as the new administration
implemented unexpected tariffs to its trading partners. However, from mid-year
onwards the markets settled into a steady straight-line improvement that
carried through to the end of the calendar year. Following the year end in
January, the Supreme Court ruled that the tariffs enacted under emergency
provisions were not valid. While this outcome was anticipated, the
administration has now begun to make plans to replace the emergency tariffs
with a series of new ones that we expect to be broadly similar in scale.
Beyond tariffs, the economic backdrop remains supportive to both consumers and
corporates, although we remain prepared for periods of volatility that often
accompany the mid-term election years.
From a macroeconomic standpoint, Gross Domestic Product (GDP) growth moderated
a bit from 2.8% in 2024 to a still solid 2.2% in 2025, led by the consumer.
This is a trend that should continue in 2026 given favourable new tax policy
that was introduced in 2025. Inflation has continued its gradual decline
towards sub-3% levels, driven by moderating goods and housing costs, although
services inflation remains elevated. Against this backdrop, the Federal
Reserve continued to unwind its restrictive monetary policy through measured
25 basis point cuts ending 2025 with a target range of 3.50-3.75%, where it
remains today.
Corporate earnings had a rather impressive 2025 with double-digit gains in all
four quarters, extending a streak that began already in the last quarter of
2024. The outlook for 2026 looks similar, with earnings growth expected to
exceed 10% but in a much more balanced fashion, and less concentrated in the
"Magnificent Seven" stocks. In fact, current estimates suggest earnings growth
for the "Mag7" and the broader market should converge in the fourth quarter
this year. The strength in earnings resulted in another solid year of dividend
growth. This environment should be much more favourable for the Company, and
we believe that our current portfolio is well-positioned to benefit from a
broader base of earnings.
Performance
The Company delivered a total return of 8.8% on a net asset value at fair
value basis for the year ended 31 January 2026, and a 13.8% return on a Share
Price basis as the discount shrunk from 9.3% to 5.7% at year-end and is
currently 2.2% at the time of this report. Performance was ahead of both
reference indices, with the Russell 1000 Value Index returning 4.9% and the
S&P High Yield Dividend Aristocrats Index returning 3.1%.
Outperformance was driven mainly by stock selection rather than sector
positioning. The financials sector was a significant contributor to
performance, driven by strong returns from Citigroup, Morgan Stanley and
Goldman Sachs, alongside American Express, OneMain, and Bank of New York
Mellon. Stock selection also drove performance in healthcare, with CVS Health,
Johnson & Johnson, and Danaher offsetting weaker returns from
Bristol-Myers Squibb and Zoetis. In consumer staples, performance was narrower
given that we held only two stocks. However, the overweight in Philip Morris
proved to be a favourable decision.
The largest detractors from the Company's performance during the year were
industrials and communications services both due primarily to stock selection,
although the impact was modest. In industrials, weaker performance from Booz
Allen Hamilton outweighed gains elsewhere, while in communication services our
underweight position in the low yielding Alphabet detracted from the portfolio
as the company's stock rose strongly after it joined the Russell 1000 Value
index at the end of June 2025.
At an individual stock level, the largest contribution came from semiconductor
capital equipment manufacturer Lam Research, which benefitted from strong
demand for advanced chips and shareholder friendly actions, including a
dividend increase and share buyback. Elsewhere, our overweights to Amphenol,
Johnson & Johnson and Citigroup rounded out a rather diverse group of top
performers. Dividend growth here correlated more closely with their end market
growth rates. Amphenol raised their dividend by over 50%, while Citigroup and
Johnson & Johnson raised their quarterly payments a more modest 7% and 5%,
respectively. All four of these names remain core positions in our portfolio,
although we did trim our exposure to Lam Research and Citigroup following
their strong performance.
The main detractors were either stocks we lost out on as we did not hold them
in the portfolio or underweight positions in low-yielding names that performed
strongly, such as manufacturer Micron Technology and Alphabet. Booz Allen
Hamilton and Zoetis also detracted, and we exited our position in Booz Allen
Hamilton due to weaker growth prospects. While uncertainty about future
prospects was elevated, we believed there were better investment ideas
elsewhere. As for Zoetis, we believe the challenges faced by the company
during the period are short-term and won't alter its longer-term outlook.
Portfolio activity
Following the portfolio changes made after the August 2024 transition,
portfolio turnover has returned to the historical 25-50% annualised range in
recent quarters. Periods of heightened market volatility, particularly in
March and April of 2025 during the initial tariff announcements, created
attractive opportunities to add high-quality growth companies into our
portfolio. During this period, we funded purchases by trimming more defensive
holdings that had performed well. As markets recovered and broadened out later
in the year, portfolio activity became more selective and stock specific. At
year-end, the portfolio remained overweight the Russell 1000 Value Index
healthcare and financials. Technology moved from overweight to neutral, while
consumer discretionary moved from underweight to neutral. The underweights in
the industrials, materials and consumer staples sectors reflect the less
attractive growth prospects, higher valuations or company-specific risks.
The portfolio ended the year modestly defensive in nature as the market traded
to all-time highs, but we still remain well diversified in long-term growth
areas, such as technology and financials, where a more balanced regulatory
environment should be supportive, as well as healthcare, which offers both
offensive and defensive characteristics at fair valuations. Increased exposure
to the consumer should also be beneficial given that they are uniquely
leveraged to the new tax bill signed into law in the middle of 2025. Despite
some green shoots in many industrial end markets, we remain underweight in the
sector as valuations currently reduce the attractiveness of the risk/reward
profile. We continue to believe that the portfolio continues to represent a
focused set of 'best ideas' that have the ability to perform well in what will
likely be a volatile mid-term election year.
Dividend growth
The Company generated a revenue return per share of 12.9p, slightly higher
than the 12.4p recorded in the previous year despite currency headwinds. The
revenue reserve stood at £23.1m (20.2p per share) before the fourth interim
dividend was paid, continuing to represent more than one year of dividend
cover.
We continue to be pleased with the overall dividend growth of the companies
within the portfolio during the year with companies increasing dividends by an
average of 9.5% with a median dividend increase being 6.3%. While a small
number of large increases - such as The Walt Disney Company, Amphenol and
Goldman Sachs - boosted the average, overall growth was broad based. We expect
a similar level of dividend growth from the portfolio in the current year.
Outlook
Similar to a year ago, the early part of the year was met by various events
such as the Supreme Court decision to make the tariffs implemented last year
illegal (although they may be reintroduced in a different form), a fairly
unprecedented removal of a sovereign leader in Venezuela, and what now has
been a series of attacks upon Iran that have made the global backdrop more
complex than expected. The structural damage to some of the Middle East energy
infrastructure is likely to impact global inflation for quite some time.
Also similar to a year ago, corporates who had just begun resuming "business
as usual" faced another setback with the Middle East events making global
transport more complicated and forcing companies to revisit supply chains,
going beyond energy alone.
Conversely, the biggest structural benefits to occur over the past year have
come from a wave of deregulation, which should improve the operating
environment across multiple end markets. Financial companies in particular
stand to benefit, as excess capital can be redeployed into more productive
uses, with positive knock-on effects across several industries. In addition,
three 25 basis point cuts in short-term rates in the final four months of
2025, have lowered borrowing costs for many companies.
Meanwhile, the build-out of AI infrastructure continues, although large
technology providers continue to evaluate return on investment and perhaps
allow for the potential of more disciplined growth in the future. AI
integration across sectors continues to enhance efficiency and reduce costs,
with practical examples in healthcare, e-commerce, finance, and energy. While
AI adoption is still at an early stage, its potential for having a significant
impact on productivity and revenue growth is clear.
Beyond AI, we remain excited about innovation and productivity gains driven by
large US companies continuing to drive through ongoing capital investment and
research & development spending, which may benefit from the new, more
favourable, accelerated tax expensing policies. The investments required to
succeed in the new digital economy are significant and therefore tend to
favour market-leading companies. Access to large- high quality data sets has
become increasingly important in informing strategy and execution. We have
populated the portfolio with companies that have the scale to make these
investments, supporting future growth in earnings and dividends.
The consumer backdrop has become more mixed in recent weeks. Tax refunds from
the 2025 fiscal bill are being partially offset by higher gas prices and the
prospect of higher inflation than expected at the start of the year.
Employment remains relatively healthy with unemployment levels still low at
around 4.5%, although the outlook for hiring may become more challenging,
particularly as companies manage inflation pressures and perhaps more
structural impacts, including enhanced usage of AI tools.
We continue to believe that our portfolio companies are well positioned to
navigate through periods of volatility. In aggregate, they are trading at
approximately 17x forward earnings, representing a discount to broader market
valuations, despite what we see as a well-diversified group of high-quality
businesses. The robust balance sheets and predictable cash flows should help
insulate them against some of the macroeconomic forces at play, and support
continued dividend growth prospects for 2026.
As always, we seek to invest in resilient companies that can prudently invest
for the future and are not dependent on macroeconomic tailwinds to be the
primary driver of growth. We thank you for your continued confidence in our
stewardship and our focus on delivering both long-term growth and income for
shareholders.
Fran Radano
Jeremiah Buckley
Co-Fund Managers
23 April 2026
Investment portfolio as at 31 January 2026
Valuation
2026 % of
Company Industry classification £'000 portfolio
Chevron Oil, Gas and Consumable Fuels 22,578 4.5
Philip Morris Tobacco 19,622 4.0
Johnson & Johnson Pharmaceuticals and Biotechnology 18,223 3.7
CVS Health Health Care Providers and Services 16,307 3.3
PNC Financial Services Banks 16,284 3.3
Morgan Stanley Investment Banking and Brokerage Services 15,993 3.2
Lamar Advertising Real Estate Investment Trusts 14,957 3.0
Enbridge Oil, Gas and Consumable Fuels 14,231 2.9
Goldman Sachs Investment Banking and Brokerage Services 13,636 2.8
Xcel Energy Electricity 13,299 2.7
Ten largest investments 165,130 33.4
Gaming & Leisure Properties Specialised REITs 13,038 2.6
CMS Energy Multi-Utilities 13,019 2.6
Verizon Communications Telecommunications Service Providers 12,974 2.6
Citigroup Banks 12,647 2.6
Progressive Non-life Insurance 12,123 2.4
Medtronic Health Care Equipment and Supplies 11,259 2.3
CME Group Capital Markets 10,532 2.1
The Walt Disney Company Media 10,281 2.1
Union Pacific Road and Rail 10,275 2.1
Eaton General Industrials 10,247 2.1
Twenty largest investments 281,525 56.9
RTX Aerospace and Defence 10,247 2.1
Texas Instruments Semiconductors and Semiconductor Equipment 10,214 2.1
Bristol-Myers Squibb Pharmaceuticals 10,027 2.0
Restaurant Brands International Hotels, Restaurants and Leisure 9,765 2.0
Home Depot Retailers 9,554 1.9
OneMain Consumer Finance 9,546 1.9
Lam Research Technology Hardware and Equipment 9,357 1.9
Broadcom Semiconductors and Semiconductor Equipment 9,057 1.8
Bank of New York Mellon Investment Banking and Brokerage Services 8,740 1.8
Alphabet Software and Computer Services 8,386 1.7
Thirty largest investments 376,418 76.1
U.S. Bancorp Banks 8,178 1.7
Abbott Laboratories Health Care Equipment and Services 7,966 1.6
Nike Personal Goods 7,886 1.6
Amphenol Technology Hardware and Equipment 7,871 1.6
Zoetis Pharmaceuticals and Biotechnology 7,730 1.6
American Express Industrial Support Services 7,703 1.6
Trane Technologies Construction and Materials 7,655 1.5
Coca-Cola Beverages 7,634 1.5
Royal Caribbean Cruises Travel and Leisure 7,106 1.4
Emerson Electric Electronic and Electrical Equipment 6,964 1.4
Forty largest investments 453,111 91.6
AbbVie Biotechnology 6,500 1.3
Intuit Software and Computer Services 5,453 1.1
Accenture Industrial Support Services 4,802 1.0
Microsoft Software and Computer Services 4,704 1.0
Dell Technologies Technology Hardware and Equipment 4,587 0.9
Comcast Media 4,339 0.9
Garmin Leisure Goods 2,207 0.4
Versant Media Media 190 0.0
Total investments 485,893 98.2
Net current assets 8,828 1.8
Total assets 494,721 100.0
Sector breakdown
Sector exposure at 31 January as a percentage of the investment portfolio
excluding cash
2026 2025
%
%
Financials 22.1 16.5
Health Care 12.7 19.8
Information Technology 12.3 15.9
Industrials 11.9 13.0
Consumer Discretionary 9.7 7.2
Consumer Staples 8.9 5.8
Energy 7.6 6.9
Real Estate 5.8 5.4
Utilities 5.4 6.2
Communication Services 3.6 3.3
100.0 100.0
Regional breakdown
Geographic exposure at 31 January as a percentage of the investment portfolio
excluding cash
2026 2025
Equity Equity
%
%
Canada 4.9 4.5
USA 95.1 95.5
100.0 100.0
MANAGING RISKS
The Board, with the assistance of the Manager, has carried out a robust
assessment of the principal risks facing the Company, including those which
would threaten its business model, future performance, solvency, liquidity in
its shares and reputation. The assessment includes consideration of economic
and political risks, most of which are outside the Board's direct control. The
Board has drawn up a detailed matrix of risks facing the Company, which it has
distilled into seven categories of principal risks, as shown on the following
pages. To assist in mitigating these risks as far as practicable, the Board
has also put in place a schedule of investment limits and restrictions,
appropriate to the Company's investment objective and policy, which the
Manager must adhere to. Compliance with the limits and restrictions is
reported on a monthly basis and reviewed by the board at their quarterly
meetings.
The Board has concluded that the Company's portfolio, investment approach and
operating model have remained resilient and that its investment approach
continues to be appropriate. Geopolitical tensions, levels of borrowing across
economies, subdued growth in developed markets and inflationary pressures all
continue to affect the investment environment and are taken into account in
investment decisions. The Board also considers risks specific to the UK market
that may affect investor sentiment and demand for the Company's shares, and
these are taken into account, where possible, in the management of the
Company's share price discount.
Emerging risks
The Board keeps the Company's risk profile under regular review, including
risks arising from internal and external developments. Emerging risks are
those potential trends, events or changing circumstances whose likelihood and
impact remain uncertain. Where an emerging risk becomes clearer or more
immediate, it may be incorporated into the Company's formal risk matrix.
The Board receives regular reporting from the Manager and other service
providers on both principal and emerging risks. It also receives ad hoc advice
from professional advisers, including legal and tax advisers, where
appropriate. This reporting, together with the directors' own experience and
judgement, supports effective oversight of the Company's risk environment and
how it is changing.
During the year under review, the Board did not identify any emerging risks
which are not already encompassed within the existing principal risks.
Principal risks, controls and mitigation
The Company's principal risks and mitigating steps are as follows:
Risk Controls and mitigation
Strategy and investment performance The Board devotes time in at least one of its meetings each year to reviewing
overall strategy and progress is monitored throughout the year. The Board's
The Board is responsible for ensuring that the Company's strategic proposition review takes into account shareholder views, developments in the marketplace
is attractive to the market. The relative performance of the Company against and how the Company is positioned to meet them.
its reference indices and AIC peer group depends principally on asset
allocation and stock selection, which, in turn, require investment skills. In
exercising these skills, the Manager is responsible for adhering to the
investment policy and investment guideline restrictions set by the Board and The Board is responsible for ensuring that the investment policy is met. The
amended from time to time. day-today management of the Company's assets is delegated to the Manager under
investment guidelines, with close monitoring of compliance with the
guidelines.
The Board meets the Manager on a regular basis and keeps investment
performance, in terms of both capital and income returns, under close review.
The Management Engagement Committee reviews the Manager's performance
annually. Although the Company is not invested against any specific income
criteria, the net income of the Company and the revenue reserves are monitored
against dividend pay-outs and anticipated future net income.
Investment performance is monitored over the short, medium and longer term
against the Company's reference indices and against the Company's AIC peer
group (North America).
The Fund Managers keep the global political and economic picture under review
as part of the investment process and members of the wider Janus Henderson
team are available should the Board want additional information on sector or
market specific issues. Climate risk is assessed within the individual stock
selection process.
The Board monitors the Company's share price relative to NAV per share and
reviews changes in shareholdings in the Company to understand short or
longer-term trends in supply of and demand for the shares.
Market events and geopolitical risk Stock-specific investment risk is spread by holding a diversified portfolio of
investee companies, typically with strong balance sheets and good growth
The Company's absolute performance in terms of NAV total return and share prospects. The Company does not currently undertake any currency hedging
price total return is primarily dependent on the performance of the investee strategies, though it has the ability to do so.
companies and markets in which the Company invests. Performance is also
impacted by currency and interest rate movements, as well as by political and
economic events, including changes to the fiscal environment for UK investors.
Any debt securities that may be held by the Company will be affected by Details on financial risks, including market price volatility, inflation,
general changes in interest rates that will in turn result in increases or interest rates, liquidity and foreign currency risks and the controls in place
decreases in the market value of those instruments. to manage these risks are provided in the notes to the financial statements as
set out in the Annual Report.
The Company is exposed to stock market volatility or illiquidity that could
result from major market shocks due to a national or global crisis such as a The Board is cognisant of the heightened risks arising from geopolitical
pandemic, war, natural disaster, geopolitical developments or similar. There developments including stock market instability and economic effects or the
could also be a resultant impact of disruption on the operations of the potential impact on the operations of the third-party suppliers, including the
Company and its service providers temporarily or for prolonged duration. Manager.
The Manager maintains close oversight of the Company's portfolio and the
performance of investee companies. The Board monitors volatility and holds a
regular dialogue with the Fund Managers to understand the impact on the
Company's portfolio.
The Manager has business continuity arrangements in place to ensure that it is
able to continue to service its clients, including investment trusts.
Income and dividend risk The Board monitors this risk through the regular review of detailed revenue
forecasts and considers the current and forecast level of income at each
The ability of the Company to pay dividends and any future dividend growth meeting. The Board discusses the impact of changes to the Company's
depends primarily on the timing and level of income received from its portfolio and stock selection on income with the Fund Managers.
investments (which may be affected by currency movements, exchange controls or
withholding taxes imposed by jurisdictions in which the Company invests).
Accordingly, there is no guarantee that the Company's dividend income
objective will continue to be met and the amount of the dividends paid to The Company has built up its revenue reserves over recent years which provides
shareholders may go down as well as up. flexibility in future years, should the dividend environment become
challenging. The Company has revenue reserves of £23.1 million before payment
of the fourth interim dividend.
At the 2026 Annual General Meeting, the cancellations of the share premium
account (£51.8 million) and the capital redemption reserve (£16.3 million)
will be proposed for shareholder approval. Cancellation of these would create
additional distributable reserves and increase flexibility in the way the
Company may deploy capital.
Gearing The Company's investment policy sets a limit on borrowing of 20% of net assets
at the time the borrowing is assumed, and the Board monitors the Company's
Gearing is used to leverage the Company's portfolio in order to enhance level of gearing at each meeting, and its compliance with loan covenants.
returns. In the event of a significant or prolonged fall in equity markets,
gearing can have the effect of exacerbating market falls on the Company's NAV
and share price, resulting in the cost of borrowing being higher than the
return on investment. As at 31 January 2026, the Company had US$50 million (£36.4 million) of
borrowings and net gearing was 5.9% at the year end. More details are provided
in note 14 to the financial statements as set out in the Annual Report.
Discount volatility The Company's share price, NAV and discount are monitored daily by the
Manager. When there is a significant discount and it is deemed to be in the
Swings in underlying net asset values (NAV) may result in the Company's shares best interest of shareholders, the Manager will exercise discretion to
trading at a wider discount. undertake share buybacks, within authorities set by the Board. The Board
monitors the discount level of the Company's shares and monitors the level of
share buybacks, within shareholder authorities. During the year, 8,627,316
shares were bought back.
Operational and cyber security The Management Engagement Committee reviews each service provider at least
annually, and, in conjunction with the Audit Committee, considers reports from
A failure of the operational or internal control systems of the Manager (such the Manager on internal controls, including any reported breaches, throughout
as accounting, dealing or payment systems), the Depositary (record keeping) or the year, from all the service providers. This reporting covers such matters
other third‑party service providers could result in the inaccurate reporting as business resilience and cyber security risk as well as matters that are
or monitoring of the Company's financial position and could impact the subject to review as part of the annual audit of the Company. The Audit
Company's ability to meet its regulatory obligations. The Company is also Committee receives quarterly reporting and annual presentations from the
exposed to cyber security risks should one or more of its services providers Manager's Information Security and Business Resilience teams.
not be able to provide the required level of information technology controls
to prevent disruption to its business.
Janus Henderson has a strong North American Equities team, which supports the
Fund Managers in the management of the Company's portfolio. Constructive
challenge, succession and continuity planning are key elements of the
management of the team.
The Board meets with representatives from the Company's key third-party
service providers as appropriate to make enquiries on the systems and
controls.
Regulatory and reporting The Board is apprised regularly of impending regulatory and reporting changes
and monitors closely, through its Manager and various professional advisors,
A breach of section 1158 and 1159 of the Corporation Tax Act 2010 could lead the Company's adherence to existing requirements, which include maintaining
to the loss of investment trust status, resulting in capital gains realised investment trust status and the Company's London Stock Exchange listing. The
within the portfolio being subject to corporation tax. Changes to the Board is also kept aware of fiscal and other developments that might affect
reporting requirements and regulated environment in which the Company operates shareholder interests as a whole.
could inter alia affect the listing of the Company's shares as well as how the
Company conducts its affairs in the market more generally.
The Board is kept informed of corporate governance developments and adheres to
corporate governance guidelines that are applicable to an investment company
(see Statement of compliance as set out in the Annual Report).
Details of how the Board monitors the services provided by Janus Henderson and
its other suppliers, and the key elements designed to provide effective
internal control, are explained further in the Annual Report. Note 18 to the
financial statements as set out in the Annual Report contains further details
on the Company's exposure to market risk (including interest rate risk,
currency risk and price risk), liquidity risk, credit risk and how they are
managed.
THE COMPANY'S VIABILITY
The AIC Code of Corporate Governance requires the Board to assess the
Company's future prospects and report on that assessment in the Annual Report.
The Board considers that certain characteristics of the Company's business
model and strategy are relevant to this assessment:
• the Board aims for the Company to deliver long-term performance;
• the Company's investment objective, strategy and policy are subject to
regular Board oversight;
• the portfolio is invested mainly in readily realisable listed securities
with restricted levels of borrowing; and
• the Company is a closed-ended investment company and therefore does not
suffer from liquidity issues arising from unexpected redemptions.
Also relevant are a number of aspects of the Company's operating arrangements:
• the Company retains title to all assets held by the custodian under the
terms of formal agreements with the custodian and depositary;
• revenue and expenditure forecasts are reviewed by the directors at each
board meeting; and
• cash is held with approved banks.
In addition, the directors have carried out a robust assessment of the
principal risks and uncertainties which could threaten the Company's business
model, future performance, liquidity or solvency, and have also considered
climate-related and emerging risks that could affect the Company in future.
The Board takes into account the liquidity of the portfolio, short-term and
structural gearing, the income stream from the portfolio, and the Company's
ability to meet its liabilities as they fall due. This includes consideration
of how the forecast income stream, expenditure and levels of reserves could
impact the Company's ability to pay dividends to shareholders.
Detailed income and expenditure forecasts are prepared over shorter time
horizons. However, given the nature of the Company's business and the
liquidity of its assets, the Board considers these forecasts, together with
its wider review of the Company's portfolio, liabilities and reserves, to
provide an appropriate basis for assessing viability over a three-year period.
The directors assess viability over three-year rolling periods, taking account
of foreseeable severe but plausible scenarios. This includes consideration of
the duration of the Company's loan notes and how a breach of any covenants
could impact the Company's NAV and share price. The Board has assessed the
risks associated with geopolitical, economic and health crises in recent
years, including conflicts in the Middle East and Ukraine, and US trade
tariffs and related reciprocal measures. The Board has concluded that these
events have not affected the long-term viability of the Company, and its
ability to continue in operation, notwithstanding any short-term uncertainty
and volatility they have caused in the markets.
The directors believe that a rolling three-year period best balances the
Company's long-term objective, its financial flexibility, and its commitment
to holding continuation votes every three years, against the difficulty of
forecasting economic conditions affecting the Company and its shareholders.
The directors also recognise that the next continuation vote will take place
within the three-year assessment period and the conditional tender offer could
arise in 2027 if the relevant conditions are met. The directors do not
currently expect either of these to threaten the long-term viability of the
Company.
Based on the Board's assessment, and in the context of the Company's business
model, strategy and operational arrangements above, the directors have a
reasonable expectation that the Company will be able to continue in operation
and meet its liabilities as they fall due over the three-year period to
January 2029.
The directors have also concluded that the Company has adequate resources to
continue in operation for at least 12 months from the date of approval of
these financial statements being 23 April 2026, and it is therefore
appropriate to prepare these financial statements on a going concern basis.
The strategic report has been approved by the Board of directors.
RELATED-PARTY TRANSACTIONS
The Company's transactions with related parties in the year were with the
directors and the Manager. There were no material transactions between the
Company and its directors during the year other than amounts paid to them in
respect of remuneration and expenses, for which there were no outstanding
amounts payable at the year end. Directors' shareholdings in the Company are
disclosed in the Annual Report.
In relation to services provided by Janus Henderson, there were no material
transactions affecting the financial position of the Company during the year
other than fees payable in the ordinary course of business and the
facilitation of marketing activities with third parties.
Further details of transactions with the Manager, including amounts
outstanding at the year end, are set out in note 21 to the financial
statements as set out in the Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Each director, as listed in note 14 below, confirms that, to the best of their
knowledge:
§ the financial statements, which have been prepared in accordance with
United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards comprising FRS 102 and applicable law) give a true and
fair view of the assets, liabilities, financial position and return of the
Company; and
§ the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal risks and uncertainties that it faces.
On behalf of the Board
Charles Park
Chairman of the Board
23 April 2026
INCOME STATEMENT
Year ended Year ended
31 January 2026 31 January 2025
Revenue return £'000 Capital return £'000 Revenue return Capital return
Total £'000 £'000 Total
£'000 £'000
Net gains on investments - 18,291 18,291 - 77,132 77,132
Net currency gains/(losses) - 3,003 3,003 - (868) (868)
Income 20,015 - 20,015 21,193 262 21,455
--------- --------- --------- --------- ----------- ---------
Gross revenue and capital gains 20,015 21,294 41,309 21,193 76,526 97,719
Investment management fee (719) (1,679) (2,398) (833) (1,943) (2,776)
Administrative expenses (839) - (839) (795) - (795)
---------- ---------- ---------- ---------- ---------- ----------
Return before finance costs and taxation 18,457 19,615 38,072
19,565 74,583 94,148
Finance costs (315) (736) (1,051) (343) (800) (1,143)
---------- ---------- ---------- ---------- ---------- ----------
Return before taxation 18,142 18,879 37,021 19,222 73,783 93,005
Taxation (2,862) 604 (2,258) (2,907) 646 (2,261)
---------- ---------- ---------- ---------- ---------- ----------
Return after taxation 15,280 19,483 34,763 16,315 74,429 90,744
---------- ---------- ---------- ---------- ---------- ----------
Return per ordinary share (pence) - basic and diluted 12.89 16.45 29.34 12.44 56.76 69.20
===== ===== ===== ===== ===== =====
The total columns of this statement represent the Profit and Loss Account of
the Company.
All revenue and capital items in the above statement derive from continuing
operations.
The accompanying notes set out in the Annual Report are an integral part of
the financial statements.
STATEMENT OF CHANGES IN EQUITY
Share capital £'000 Share premium account £'000 Capital redemption reserve Capital reserve £'000
£'000 Revenue reserve £'000
Total
For the year ended 31 January 2026 £'000
Balance at 1 February 2025 6,346 51,806 16,270 370,758 22,655 467,835
Buyback of shares for treasury - - - (29,447) - (29,447)
Return after taxation - - - 19,483 15,280 34,763
Dividends paid (see note 7 below) - - - - (14,816) (14,816)
--------- ---------- ---------- ----------- ---------- ----------
Balance at 31 January 2026 6,346 51,806 16,270 360,794 23,119 458,335
====== ====== ====== ====== ====== ======
Share capital £'000 Share premium account £'000 Capital redemption reserve Capital reserve £'000
£'000 Revenue reserve £'000
Total
For the year ended 31 January 2025 £'000
Balance at 1 February 2024 6,868 51,806 15,748 340,003 22,054 436,479
Buyback of shares for cancellation (522) - 522 (31,701) - (31,701)
Buyback of shares for treasury - - - (11,973) - (11,973)
Return after taxation - - - 74,429 16,315 90,744
Dividends paid (see note 7 below) - - - - (15,714) (15,714)
--------- ---------- ---------- ----------- ---------- ----------
Balance at 31 January 2025 6,346 51,806 16,270 370,758 22,655 467,835
====== ====== ====== ====== ====== ======
The accompanying notes set out in the Annual Report are an integral part of
the financial statements.
STATEMENT OF FINANCIAL POSITION
As at As at
31 January 2026 31 January 2025
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss 485,893 504,594
----------- -----------
Current assets
Prepayments and accrued income 883 896
Other debtors 6,000 2,975
Cash at bank and in hand 12,841 5,264
----------- -----------
19,724 9,135
----------- -----------
Creditors: amounts falling due within one year
Other creditors (10,896) (5,710)
----------- -----------
(10,896) (5,710)
----------- -----------
Net current assets 8,828 3,425
----------- -----------
Total assets less current liabilities 494,721 508,019
Creditors: amounts falling due after more than one year
(36,386) (40,184)
Senior Loan Notes
----------- -----------
Net assets 458,335 467,835
======= =======
Capital and reserves
Called up share capital 6,346 6,346
Share premium account 51,806 51,806
Capital redemption reserve 16,270 16,270
Capital reserve 360,794 370,758
Revenue reserve 23,119 22,655
----------- -----------
Total shareholders' funds 458,335 467,835
======= =======
Net asset value per ordinary share (pence) 399.47 379.24
======= =======
The accompanying notes set out in the Annual Report are an integral part of
the financial statements.
STATEMENT OF CASH FLOWS
Year ended Year ended
31 January 2026 31 January 2025
£'000 £'000
Operating activities
Net return before taxation 37,021 93,005
Adjustments for:
Net gains on investments (18,225) (77,146)
Net (gains)/losses on foreign exchange transactions (3,003) 868
Decrease/(increase) in dividend income receivable 5 (52)
Decrease in fixed interest income receivable - 2
Increase/(decrease) in derivatives 263 (66)
(Increase)/decrease in other debtors (352) 32
Increase in other creditors 128 163
Tax on overseas income (2,258) (2,261)
Amortisation of senior loan note expenses 6 8
Accretion of fixed income book cost - (44)
----------- -----------
Net cash inflow from operating activities 13,585 14,509
Investing activities
Purchase of investments (176,522) (446,018)
Sale of investments 215,578 474,976
----------- -----------
Net cash generated from investing activities 39,056 28,958
Financing activities
Equity dividends paid (14,816) (15,714)
Buyback of shares for cancellation - (31,911)
Buyback of shares for treasury (29,447) (11,973)
----------- -----------
Net cash used in financing activities (44,263) (59,598)
----------- -----------
Increase/(decrease) in cash at bank and in hand 8,378 (16,131)
----------- -----------
Analysis of changes in cash at bank and in hand
Opening balance 5,264 21,285
Effect of exchange rate fluctuation on cash held (801) 110
Increase/(decrease) in cash as above 8,378 (16,131)
----------- -----------
Closing balance 12,841 5,264
======= =======
Represented by:
Cash at bank and in hand 12,841 5,264
======= =======
The accompanying notes set out in the Annual Report are an integral part of
the financial statements.
NOTES TO THE FINANCIAL STATEMENTS
1. Principal activity
The Company is a closed-end investment company, registered in Scotland No.
SC005218, with its shares listed on the London Stock Exchange.
2. Accounting policies
A summary of the principal accounting policies, all of which, unless otherwise
stated, have been consistently applied throughout the year and the preceding
year is set out below.
(a) Basis of preparation and going concern
The financial statements have been prepared in accordance with Financial
Reporting Standard 102, the Companies Act 2006 and with the Statement of
Recommended Practice 'Financial Statements of Investment Trust Companies and
Venture Capital Trusts' issued in July 2022, and have been prepared under the
historical cost basis except for the measurement at fair value of investments.
The financial statements are presented in Sterling which is the functional
currency of the Company and rounded to the nearest £'000. They have also been
prepared on a going concern basis and on the assumption that approval as an
investment trust will continue to be granted.
Going concern
The Company's assets consist substantially of securities in companies listed
on recognised stock exchanges and in normal circumstances are realisable
within a short timescale and which can be sold to meet funding commitments if
necessary.
The Board has set gearing limits and regularly reviews actual exposures, cash
flow projections and compliance with loan covenants.
The Company undertakes a continuation vote every three years. The last
continuation vote was passed at the AGM held in June 2024 with 89.2% of votes
in favour.
In June 2024, the Board established a three-year conditional tender mechanism
covering the period to 30 September 2027 under which a tender offer for up to
15% of the shares in issue (excluding treasury shares) would be implemented
provided that one of the following conditions had been met:
i. over the three-year period up to and including the
Calculation Date, the NAV total return of the Company (with debt at fair
value) has not exceeded the total return of the S&P High Yield Dividend
Aristocrats Index; or
ii. over the six-month period prior to the Calculation Date
the average discount to the cum-income NAV per share (with debt at fair value)
at which the Company's shares have traded is greater than 7%.
Any tender implemented as a result of these proposals would be executed at a
tender price reflecting a 2% discount to the Company's cum-income NAV per
share (with debt at fair value) (less tender offer costs).
These measures are designed to give shareholders confidence on liquidity for
those who want to sell a portion of their shareholding and also to provide
those who want to buy shares some confidence on share price volatility not
being too extreme.
The Board has considered the impact of geopolitical developments and believes
that there will be a limited resulting impact on the Company's operational
resources and existence as the primary impact of any recent events would be on
the valuation of the portfolio, not the Company's operational resources. Given
that the Company's portfolio comprises primarily "Level One" assets (listed on
a recognisable exchange and realisable within a short timescale), and the
Company's relatively low level of gearing, the Company has sufficient
liquidity within its portfolio so as to remain within its debt covenants and
pay expenses.
Taking the above factors into consideration, the directors have a reasonable
expectation that the Company has adequate financial resources to continue in
operational existence for the foreseeable future and for at least twelve
months from the date of this Report. Accordingly, the Board continues to adopt
the going concern basis in preparing the financial statements.
Significant estimates and judgements
Disclosure is required of judgements and estimates made by management in
applying the accounting policies that have a significant effect on the
financial statements. There are no significant estimates or judgements which
impact these financial statements.
(b) Income
Income from investments, including taxes deducted at source, is included in
revenue by reference to the date on which the investment is quoted ex
dividend. Special dividends are credited to capital or revenue, depending on
the circumstances. The fixed returns on debt instruments are recognised using
the time apportioned accruals basis and the discount or premium on acquisition
is amortised or accreted on a straight line basis.
Interest receivable from cash and short-term deposits is recognised on an
accruals basis.
(c) Expenses
All expenses are accounted for on an accruals basis and are charged to the
Statement of Comprehensive Income. Expenses are charged against revenue except
as follows:
• transaction costs on the acquisition or disposal of investments
are charged to capital in the Statement of Comprehensive Income;
• expenses are charged to capital where a connection with the
maintenance or enhancement of the value of the investments can be
demonstrated. In this respect, the investment management fee is allocated 30%
to revenue and 70% to capital to reflect the Company's investment policy and
prospective income and capital growth.
(d) Taxation
The tax payable is based on the taxable profit for the year. Taxable profit
differs from net profit as reported in the Statement of Comprehensive Income
because it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or
deductible (see note 8 set out in the Annual Report for a more detailed
explanation). At the year end, the Company had a Corporation Tax creditor of
£188,000 (2025: £61,000) and is included within "other creditors" in note 13
set out in the Annual Report.
Deferred taxation is provided on all timing differences, that have originated
but not reversed at the Statement of Financial Position date, where
transactions or events that result in an obligation to pay more or a right to
pay less tax in future have occurred at the Statement of Financial Position
date, measured on an undiscounted basis and based on enacted tax rates. This
is subject to deferred tax assets only being recognised if it is considered
more likely than not that there will be suitable profits from which the future
reversal of the underlying timing differences can be deducted. Timing
differences are differences arising between the Company's taxable profits and
its results as stated in the financial statements which are capable of
reversal in one or more subsequent periods.
Owing to the Company's status as an investment trust company, and the
intention to continue to meet the conditions required to obtain approval for
the foreseeable future, the Company has not provided deferred tax on any
capital gains and losses arising on the revaluation or disposal of
investments.
(e) Investments
Investment transactions are accounted for on a trade date basis. Investments
are initially recognised at fair value. Investments are de-recognised at the
trade date of the disposal. Proceeds are measured at fair value, which is
regarded as the proceeds of sale less any transaction costs. Subsequent to
initial recognition, investments are measured at fair value. For listed
investments, this is deemed to be closing bid market prices. Changes in the
fair value of investments held at fair value through profit or loss and gains
and losses on disposal are recognised in the Statement of Comprehensive Income
as "Net gains on investments", initially as unrealised gains or losses until
disposal when those gains or losses are then realised.
(f) Borrowings
Monies borrowed to finance the investment objectives of the Company are stated
at the amount of the net proceeds immediately after issue plus cumulative
finance costs less cumulative payments made in respect of the debt. The
finance costs of such borrowings are accounted for on an accruals basis using
the effective interest rate method and are charged 30% to revenue and 70% to
capital to reflect the Company's investment policy and prospective income and
capital growth.
(g) Dividends payable
Interim and final dividends are recognised in the period in which they are
paid.
(h) Nature and purpose of reserves
Share premium account
The balance classified as share premium includes the premium above nominal
value from the proceeds on issue of any equity capital comprising Ordinary
shares of 5p. This reserve is not distributable.
Capital redemption reserve
The capital redemption reserve is used to record the amount equivalent to the
nominal value of any of the Company's own shares purchased and cancelled in
order to maintain the Company's capital. This reserve is not distributable.
Capital reserve
This reserve includes any gains or losses on realisation of investments in the
period. The costs of share buybacks for treasury are also deducted from this
reserve. £300,351,000 (2025: £322,179,000) of the capital reserve is
distributable. The remainder of the capital reserve relates to any changes in
fair values of investments held that have been recognised in the Statement of
Comprehensive Income. The distributability of this portion of the reserve has
not been analysed as it is complex to determine. This complexity is explained
further in ICAEW Technical Release 02/17BL, which offers guidance on realised
and distributable profits under the Companies Act 2006.
Revenue reserve
This reserve reflects all income and costs which are recognised in the revenue
column of the Statement of
Comprehensive Income. The revenue reserve represents the amount of the
Company's reserves distributable by way of dividend.
(i) Foreign currency
Assets and liabilities in foreign currencies are translated at the rates of
exchange ruling on the Statement of Financial Position date. Transactions
involving foreign currencies are converted at the rate ruling on the date of
the transaction. Gains and losses on the realisation of foreign currencies are
recognised in the Statement of Comprehensive Income and are then transferred
to the capital reserve.
(j) Traded options
The Company may enter into certain derivative contracts (e.g. writing traded
options). Option contracts are accounted for as separate derivative contracts
and are therefore shown in other assets or other liabilities at their fair
value. The initial fair value is based on the initial premium which is
received/paid on inception. The premium is recognised in the revenue column
over the life of the contract period. Losses on any movement in the fair value
of open contracts at the year end realised and on the exercise of the
contracts are recorded in the capital column of the Statement of Comprehensive
Income. For written options, where exercised, losses are treated as a realised
loss, including where it is a component of the cost paid to acquire underlying
securities on a written contract.
In addition, the Company may enter into derivative contracts to manage market
risk and gains or losses arising on such contracts are recorded in the capital
column of the Statement of Comprehensive Income.
(k) Cash at bank and in hand
Cash comprises cash at bank and collateral accounts at brokers. The amounts
held in collateral accounts at brokers were £576,000 with Goldman Sachs and
£277,000 with Merrill Lynch as at 31 January 2026.
(l) Treasury shares
When the Company purchases its shares to be held in treasury, the amount of
the consideration paid, which includes directly attributable costs, is net of
any tax effect, and is recognised as a deduction from the capital reserve.
When these shares are sold subsequently, the amount received is recognised as
an increase in equity, and any resulting surplus on the transaction is
transferred to the share premium account and any resulting deficit is
transferred from the capital reserve.
3. Net currency gains/(losses) 2026 2025
£'000 £'000
(Losses)/gains on cash held (801) 110
Gains/(losses) on Senior Loan Notes 3,804 (978)
----------- -----------
3,003 (868)
====== ======
4. Income
Income from overseas-listed investments 2026 2025
£'000 £'000
Dividend income 13,611 14,368
REIT income 1,666 2,191
Interest income from investments - 286
--------- ---------
15,277 16,845
====== ======
Other income from investment activity
Traded option premiums 4,552 4,099
Deposit interest 186 511
--------- ---------
4,738 4,610
--------- ---------
Total income 20,015 21,455
====== ======
During the year, the Company was entitled to premiums totalling £4,552,000
(2025: £4,099,000) in exchange for entering into option contracts. At the
year end there were 7 (2025: 4) open positions, valued at a liability of
£359,000 (2025: liability of £96,000) as disclosed in note 13 set out in the
Annual Report. Losses realised on the exercise of derivative transactions are
disclosed in note 11 set out in the Annual Report.
5. Investment management fee
2026 2025
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment management fee 719 1,679 2,398 833 1,943 2,77
6
The fee is allocated 30% to revenue and 70% to capital (2025: same). During
the period £2,398,000 (2025: £1,258,000) of investment management fees were
payable to Janus Henderson, with a balance of £833,000 (2025: £845,000)
being due to Janus Henderson at the period end. Until 31 July 2024 the annual
management fee was charged on gross assets after deducting current liabilities
and borrowings and excluding commonly managed funds (net assets), on a tiered
basis. The annual management fee was charged at 0.75% of net assets up to
£250 million, 0.6% between £250 million and £500 million, and 0.5% over
£500 million, payable quarterly. During the period £nil (2025: £1,518,000)
of investment management fees were payable to abrdn Fund Managers Limited
("aFML").
6. Finance costs
2026 2025
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Bank interest paid - 1 1 2 6 8
Senior loan notes 313 731 1,044 338 789 1,127
Amortised Senior Loan Note issue expenses 2 4 6 3 5 8
----------- ---------- ------- ----------- -------- -------
315 736 1,051 343 800 1,143
----------- ---------- ------- ----------- --------- -------
7. Dividends
2026 2025
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
4th interim dividend for 2025 of 4.1p per share (2024 - 3.9p) 4,974 5,305
1st interim dividend for 2026 of 2.8p per share (2025 - 2.7p) 3,385 3,569
2nd interim dividend for 2026 of 2.8p per share (2025 - 2.7p) 3,244 3,467
3rd interim dividend for 2026 of 2.8p per share (2025 - 2.7p) 3,213 3,373
--------- ---------
14,816 15,714
===== =====
The fourth interim dividend for 2026 has not been included as a liability in
these financial statements as it was not approved or paid during the financial
year ended 31 January 2026. Details of the fourth interim dividend for 2026,
which will be paid on 27 May 2026 to shareholders on the register on 8 May
2026, are set out in the table below.
The table below sets out the total dividends paid and proposed in respect of
the financial year, which is the basis on which the requirements of Sections
1158-1159 of the Corporation Tax Act 2010 are considered. The revenue
available for distribution by way of dividend for the year is £15,280,000
(2025: £16,315,000).
2026 2025
£'000 £'000
1st interim dividend for 2026 of 2.8p per share (2025 - 2.7p) 3,385 3,569
2nd interim dividend for 2026 of 2.8p per share (2025 - 2.7p) 3,244 3,467
3rd interim dividend for 2026 of 2.8p per share (2025 - 2.7p) 3,213 3,373
4th interim dividend for 2026 of 4.4p per share (2025 - 4.1p) 5,047 4,974
--------- ---------
14,889 15,383
===== =====
The cost of the proposed final dividend for 2026 is based on 114,710,516
shares in issue, being the number of shares in issue (excluding treasury
shares) at the date of this report.
8. Return per share - basic and diluted
2026 2025
£'000 p £'0 p
00
Based on the following figures:
Revenue return 15,280 12.8 16, 12
9 315 .4
4
Capital return 19,483 16.4 74, 56
5 429 .7
6
--------- --------- ---------- ---------
Total return 34,763 29.34 90,744 69.20
===== ===== ===== =====
Weighted average number of shares in issue(1) 118,503,400 131,124,251
(1) Calculated excluding shares held in Treasury where applicable.
9. 2026 Financial Information
The figures and financial information for the year ended 31 January 2026 are
extracted from the Company's annual financial statements for that period and
do not constitute statutory accounts. The Company's annual financial
statements for the year to 31 January 2026 have been audited but have not yet
been delivered to the Registrar of Companies. The Independent Auditor's Report
on the 2026 annual financial statements was unqualified, did not include
reference to any matter to which the Auditor drew attention without qualifying
the report, and did not contain any statements under sections 498(2) or 498(3)
of the Companies Act 2006.
10. 2025 Financial Information
The figures and financial information for the year ended 31 January 2025 are
extracted from the Company's annual financial statements for that period and
do not constitute statutory accounts. The Company's annual financial
statements for the year to 31 January 2025 have been audited and filed with
the Registrar of Companies. The Independent Auditor's Report on the 2025
annual financial statements was unqualified, did not include reference to any
matter to which the Auditor drew attention without qualifying the report, and
did not contain any statements under sections 498(2) or 498(3) of the
Companies Act 2006.
11. Dividend
The fourth interim dividend of 4.4p per ordinary share will be paid on 27 May
2026 to shareholders on the register of members at the close of business on 8
May 2026. This will take the total dividends for the year to 12.8p (2025:
12.2p). The Company's shares will be quoted ex-dividend on 7 May 2026.
12. Annual Report
The Annual Report will be posted to shareholders in May 2026 and will be
available on the Company's website (www.northamericanincome.com
(http://www.northamericanincome.com) ).
13. Annual General Meeting
The Annual General Meeting will be held on Wednesday 17 June 2026 at 12.30 pm
at 201 Bishopsgate, London EC2M 3AE. Instructions for attending the meeting in
person or virtually, and details of resolutions to be put to the AGM, are
included in the Notice of AGM in the Annual Report and will be available at
www.northamericanincome.com (http://www.northamericanincome.com) . If
shareholders would like to submit any questions in advance of the AGM, they
are welcome to send these to the corporate secretary at
itsecretariat@janushenderson.com.
14. General Information
The North American Income Trust plc is a UK domiciled investment trust
company.
ISIN number / SEDOL for ordinary shares: GB00BJ00Z303/BJ00Z30
London Stock Exchange (TIDM) code: NAIT
Global intermediary identification number (GIIN): XYAARK.99999.SL.826
Legal entity identifier (LEI): 5493007GCUW7G2BKY360
Company registration number: SC005218
Registered office address: 4 North St. Andrew Street, Edinburgh EH2 1HJ
The directors of the Company are Charles Park (Chairman), Karyn Lamont (Audit
Committee Chair), Patrick Edwardson (Senior Independent Director), Susannah
Nicklin, Bulbul Barrett and John Adebiyi.
The Corporate Secretary is Janus Henderson Secretarial Services UK Limited.
Website
Details of the Company's share price and net asset value, together with
general information about the Company, monthly factsheets and data, copies of
announcements, reports and details of general meetings can be found at
www.northamericanincome.com (http://www.northamericanincome.com) .
For further information please contact:
Fran Radano Jeremiah Buckley
Co-Fund Manager Co-Fund Manager
The North American Income Trust plc The North American Income Trust plc
Telephone: +1 303 336 5450 Telephone: +1 303 336 5450
Dan Howe Harriet Hall
Head of Investment Trusts PR Director, Investment Trusts
Janus Henderson Investors Janus Henderson Investors
Telephone: 020 7818 1818 Telephone: 020 7818 2919
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