REG - North American IT - Half-year Report
24/09/2025 07:00
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RNS Number : 5111A North American Income Trust (The) 24 September 2025
JANUS HENDERSON FUND MANAGEMENT UK LIMITED
THE NORTH AMERICAN INCOME TRUST PLC
LEGAL ENTITY IDENTIFIER: 5493007GCUW7G2BKY360
24 September 2025
THE NORTH AMERICAN INCOME TRUST PLC
Unaudited results for the half-year ended 31 July 2025
INVESTMENT OBJECTIVE
The Company seeks 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
Total return performance (including dividends reinvested and excluding
transaction costs)
6 months 1 year 3 years 5 years 10 years
% % % % %
NAV per share(1) -1.2 9.9 27.1 78.6 191.0
Share price (2) 0.5 15.9 28.8 85.9 205.4
Russell 1000 Value Index (in sterling terms) -4.3 5.6 24.4 84.2 184.4
S&P High Yield Dividend Aristocrats Index (in sterling terms) -3.0 1.5 8.6 69.3 201.6
Average sector NAV (3) 0.5 14.7 34.4 86.4 218.1
Financial highlights
Shareholders' funds at 31 July 2025 at 31 July 2024 at 31 Jan 2025
Net assets £438.0m £455.2m £467.8m
Net asset value per ordinary share 367.9p 346.2p 379.2p
Discount (debt at par)(4) (7.3%) (11.3%) (8.5%)
Share price 341.0p 307.0p 347.0p
Net gearing 7.4% 7.1% 7.8%
Dividend per share for the half-year 5.6p 5.4p 12.2p
Revenue reserves per ordinary share 18.1p 16.2p 18.4p
Half-year ended Half-year ended Year ended
31 July 2025 31 July 2024 31 Jan 2025
£'000 £'000 £'000
Total return to equity shareholders
Revenue return after taxation 7,247 8,068 16,315
Capital return after taxation (14,260) 36,797 74,429
---------- ---------- -------------
Total return (7,013) 44,865 90,744
====== ====== ========
Total return per ordinary share
Revenue 5.97p 5.98p 12.44p
Capital (11.74p) 27.30p 56.76p
---------- ---------- -----------
Total return per ordinary share (5.77p) 33.28p 69.20p
====== ======== ========
1. NAV per ordinary share with dividends reinvested and excluding
reinvestment costs
2. Share price using mid-market closing prices
3. The sector is the Association of Investment Companies ('AIC') North
America
4. The discount is calculated using the net assets and the share price
at each date
Sources: Morningstar Direct, Janus Henderson Investors, BNP Paribas
http://www.rns-pdf.londonstockexchange.com/rns/5111A_1-2025-9-23.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5111A_1-2025-9-23.pdf)
Historical record - Year to 31 January
As at 31 Jul
2025(1)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net assets(2) £281m £379m £392m £399m £414m £375m £448m £473m £436m £468m £438m
NAV(3*) 187.1p 264.7p 275.5p 280.4p 288.9p 262.5p 318.8p 337.2p 317.8p 379.2p 367.9p
Share price* 163.0p 246.4p 260.0p 268.0p 290.0p 234.0p 283.0p 306.0p 289.0p 347.0p 341.0p
Net revenue* 7.15p 7.98p 8.42p 10.04p 11.42p 11.79p 10.28p 12.21p 11.95p 12.44p 5.97p
Net dividends paid per ordinary share* 6.60p 7.20p 7.80p 8.50p 9.50p 10.00p 10.30p
11.00p 11.70p 12.20p 5.60p(4)
( )
(1) Net revenue and net dividends paid are for the six-month period ended 31
July 2025
(2) Attributable to ordinary shares
(3) NAV per ordinary share with debt at par value
(4) First interim dividend of 2.80p per ordinary share paid on 31 July 2025
and second interim dividend of 2.80p per ordinary share that will be paid on
31 October 2025.
*Comparative figures for 2016 to 2019 inclusive have been restated to reflect
the sub-division of each existing Ordinary share of 25p into five Ordinary
shares of 5p each on 10 June 2019
INTERIM MANAGEMENT REPORT
Chairman's Statement
Dear Shareholder,
I am pleased to report for the six months ended 31 July 2025 the Company
outperformed both its reference index, the Russell 1000 Value Index, and the
index that is used for the contingent performance hurdle, the S&P High
Yield Dividend Aristocrats Index. The Company's net asset value (NAV) total
return per share (which includes dividends reinvested) decreased by 1.2%
compared to a 4.3% decline in the total return of the Company's reference
indices, the Russell 1000 Value Index, in sterling terms and a decline of 3.0%
in the S&P High Yield Dividend Aristocrats Index, in sterling terms. The
Company's share price total return was 0.5% as the Company's discount to NAV
decreased by 1.2% and ended the half-year reporting period at 7.3%.
The outperformance relative to the Russell 1000 Value Index was mainly driven
by stock selection, with some of this outperformance from some of our faster
growing names that had de-rated in March and April.
The first half of our financial year has been challenging, with an initial
steep fall in the US markets from February to mid-April caused by the US
Government's introduction of tariffs on imports. In late April, as pauses to
the implementation of tariffs were announced, markets staged a rapid recovery.
Artificial Intelligence (AI) stocks and large capitalisation technology stocks
led the rebound. During the market selloff the managers adroitly took
advantage of the volatility in share prices to the Company's benefit. The Fund
Managers' report goes into further detail on the stocks and sectors that
helped or detracted from performance. The Board monitors portfolio performance
regularly and receives quarterly reports from the Manager on portfolio changes
and the decisions behind them. The Board is pleased to see the improving
relative performance following the change to the Manager in 2024.
Revenue Account
The Company's portfolio generated revenue return of 5.97 pence per share
compared to last year's 5.98 pence. Dividend payments from equities
contributed 79% of the Company's gross income, while options continue to be
part of the portfolio and represented 20% of the Company's total gross income.
The balance of revenues came from cash, accounting for only 1%.
Dividend growth has been as expected. However, currency has been a
detracting factor as the Fund Managers describe in their report, the dollar
declined relative to sterling by approximately 6.1% over the six months in the
first half of the financial year which impacted the revenue account. Of the
stocks that raised dividends in the first half of the financial year, the
average raise was 8.9% and the median raise was 6.9% (the difference reflects
the 33.3% increase in the Goldman Sachs dividend which materially impacted the
average).
Dividend
The Board remains committed to a progressive dividend policy and seeks to
continue the track record of fourteen consecutive years of dividend growth.
The Board is pleased to declare a second interim dividend of 2.8 pence per
share, resulting in total dividends for the half-year ended 31 July 2025 of
5.6 pence per share (2024: 5.4p) representing annual growth of 3.8%. The
second interim dividend will be paid on 31 October 2025 to shareholders on
the register on 3 October 2025.
The Board declared, on 3 June 2025, a first interim dividend of 2.8 pence per
share (2024: 2.7p) representing annual growth of 3.7%. The first interim
dividend was paid on 31 July 2025 to shareholders on the register on 27 June
2025.
In reaching its decision on dividends, the Board always balances the wish to
increase the amount distributed to shareholders with the recognition that
currency can have a variable impact on earnings per share. The Fund Managers'
continued efforts to build the revenue reserve, which stands at over one
year's cover, gives comfort that at times of stress the Company can dip into
this reserve to maintain the dividend.
Management of Premium and Discount
The Company's share price ended the half-year to 31 July 2025 at 341.0 pence,
a 7.3% discount to the total NAV of 367.9 pence. This compares to an 8.5%
discount at the end of the financial year ended 31 January 2025.
During the half-year, 4.3 million (2024: 5.9 million) shares were bought back
and cancelled at an average price of 332.36 pence and an average discount of
8.7% (2024: 12.2%). The total cost was £14.5 million. In the year ended
31 January 2025, 14.0 million shares were repurchased at an average discount
of 11.4%. Since 31 July 2025, the Company has bought back an additional 3.2
million shares at an average discount of 7.5% and at a cost of
£10.8 million. 11.1 million shares (8.7% of the issued share capital) are
currently held in treasury.
Gearing
The Board believes that the sensible use of gearing should enhance returns to
our shareholders over the longer term. The Company benefits from its long-term
financing agreements totalling US$50 million with MetLife which comprise two
loans of US$25 million with terms of 10 and 15 years. These are fixed at 2.70%
and 2.96% per annum expiring in December 2030 and 2035 respectively. Net
gearing on 31 July 2025 stood at 7.4%.
Board Activity
On 1 May 2025, Bulbul Barrett was appointed a director of the Company. Bulbul
brings a wealth of financial markets experience and marketing knowledge to the
Company. On 1 October 2025, as already announced via the London Stock Exchange
Regulatory News Service, John Adebiyi will also join the Board. John brings
his considerable legal experience to the Board and together we feel we have a
diverse collection of Directors working in the best interest of the Company
and its shareholders.
During the first half of the year, I took the opportunity to meet with several
investors to gain a deeper understanding of their interests in the Company and
address questions on a more informal basis. As usual, we encourage all
shareholders to contact the Board with any queries via the Corporate Secretary
using the contact details provided in note 15.
Outlook
Despite the concerns over trade tariffs, second quarter earnings in the US
proved robust and around 80% of S&P 500 companies exceeded earnings
expectations at the time of writing. The rally in the market has left the
broader S&P 500 Index trading on a historically high valuation of 22 to
23x forward earnings estimates, leaving those companies that miss their
earnings expectations vulnerable to severe drawdowns. The Company's portfolio
is, on the other hand, trading on a more reasonable forward earnings multiple
of approximately 16x. AI is a disruptive technology that is expected to reduce
costs and improve productivity across all industries, but will also challenge
some business models that find themselves on the wrong side of that
disruption. In a more volatile world, it is vital to have experienced managers
making stock decisions. The Fund Managers believe they have a balanced
portfolio in high quality companies that are relatively insulated from the
macroeconomic forces at play. The median growth rate of dividends from the
companies in the Company's portfolio was just under 7% in the first half of
the year and the Fund Managers expect a similar rate in the second half of
2025. If that is the case the outlook for earnings and dividends looks
encouraging, but a myriad of risks - including dollar weakness, as we saw in
the first half of the year - could counteract that outlook.
Charles Park
Chairman
23 September 2025
Fund Managers' Report
Market review
The six months ending 31 July 2025 felt like a tale of two markets, with a
dramatic sell-off from mid-February through mid-April and then a full reversal
from April through to the end of the period on 31 July and beyond through
August. The Gross Domestic Product (GDP) readings in the first half of 2025
were equally uneven. Annualised GDP was down 0.5% in the first quarter,
impacted by the front loading of inventories (net exports) before tariff
implementation. The second quarter reading of +3.3% saw some reversal of
this first quarter, leaving first half GDP growing at approximately 1.5% on an
annualised basis. Tariff implementation is a risk to GDP in the second half of
the year, but any weakness on this front would give the Federal Reserve (the
Fed) further ability to lower rates closer to neutral.
Corporate earnings have largely been impressive with three consecutive
quarters of at least 10% earnings per share growth going back to the fourth
quarter of 2024 despite a less predictable backdrop with predictions of much
more muted earnings. From here, the tariff impact should be more noticeable,
though most tariff rates have settled between 10% (UK) and 20% (Vietnam) with
the obvious statement that the journey here has been volatile and
unpredictable. Canada and Mexico have a lot of trade done under the current
North American trade policy which means their tariff rates net out to a sub-5%
level - they are relative "winners" for now.
Employment is arguably the biggest wildcard as initial claims (firings) remain
muted at generational low levels resulting in unemployment at an otherwise
"full" 4.25%. To be sure, much of the recent job shortfall is in the
government sector, which will continue through September when the Federal
furloughs begin. This is healthy as the US Government added an extraordinary
number of new jobs during 2021 to 2024. Below the surface there are mixed
messages with continuing claims slowly building as there has been an inability
for many of those laid off to find employment. Higher interest rates
disproportionately impact small business, so any loosening of monetary policy
should be helpful to this important employment cohort. As fund managers, we
need to be cognisant of the risk of 4.25% unemployment becoming 4.5%, if not
higher. This would strain consumer spending, as much of the favourable
consumer benefits from the recent fiscal policy will not be noticed until the
2025 tax season in March and April 2026.
Performance
The Company returned -1.2% per share on a Net Asset Value (NAV) total return
basis for the half-year ended 31 July 2025. This was outperformance against
the Company's reference indices on a total return basis (Russell 1000 Value
Index: -4.3%; S&P High Yield Dividend Aristocrats Index -3.0%). Stock
selection was the primary driver of relative outperformance versus the Russell
1000 Value Index, while currency translation muted returns on an absolute
basis given the strength of sterling versus the US Dollar.
At a sector level, our stock selection in the Technology, Consumer Staples and
Financial sectors was a contributor to performance in the first half of the
year, driven by strong returns in Broadcom, Philip Morris, Amphenol and
Citigroup. Elsewhere, while stock selection in Industrials was mixed, both
Eaton Corporation and Trane Technologies were two of our strongest performers.
The largest sector detractor from the Company's performance in the first half
of the year was the Consumer Discretionary sector, due primarily to stock
selection where our positions in Nike and to a lesser extent Home Depot were a
headwind. The second-largest detractor was the Communications Services sector,
due to our overweight position in Alphabet which derated due to perceived
competitive AI based threats, as well as a legal case brought by the
Department of Justice challenging their monopolistic position in the online
search and search advertising markets.
At a stock-specific level, as noted above, the largest contributions came from
power management company Eaton Corporation as well as semiconductor supplier
Broadcom. Eaton Corporation saw strong sales and margin performance across
multiple segments but primarily from their electrical segment given data
centre expansion, while continuing to build their backlog of large project
orders. Broadcom continues to see strong demand for its Application-Specific
Integrated Circuits ('ASICs') and networking products from hyperscalers in the
US as well as having a leadership position in partnering with nearly all major
players driving the significant buildout of AI infrastructure.
The long-held position in Philip Morris was also a material contributor as the
adoption of smoke free products continues and is trending toward reaching 50%
of revenues and profits. Additionally, given the volatility in the global
macro-environment, Philip Morris' predictable growth was appreciated by
investors who re-rated the shares higher.
In terms of stock detractors, pharmaceutical company Bristol Myers
underperformed as they continue to see pressure from legacy drugs that have
lost exclusivity and are now competing with low-cost generic competitors. In
addition, there was a setback in a Phase III trial for a schizophrenia
treatment that could potentially raise doubts about its long-term sales
forecast. Another detractor that impacted our performance within the
Technology sector was Accenture, with the stock derating given the potential
threats to the consulting industry from Artificial Intelligence.
Portfolio activity
Portfolio activity for the first half of the year was somewhat above trend
given the tariff led volatility in March and April, followed by a sharp
reversal of the market weakness in May and June. Specifically, we took
advantage of the period of heightened volatility by adding more
growth-oriented names that de-rated whilst trimming back some of the lower
beta names that largely stayed in a range as investors sought safe havens.
Additions to the portfolio at this time included a few new names such as Trane
Technologies, Corteva and Disney. We also increased our weightings in Eaton
Corporation and Amphenol. We trimmed some more defensive names such as Johnson
& Johnson, Verizon as well as exiting a few names including Sysco and IBM.
Subsequently, given the sharp snap back in the market we unwound some of these
growth-oriented trades and moved the portfolio back to what we believe is a
more balanced position, which is where we ended the quarter and remain at the
time of writing. This was positive for performance.
A sector analysis of the portfolio can be found below.
Dividend growth
Dividend growth continues at a strong, sustainable level in the first half
with eight names in the portfolio raising their dividend at a double-digit
percentage rate and another dozen names raising their dividend five to ten
percent. The median growth rate of these dividend increases was just under 7%
while the average was nearly 9% (aided by a 33% increase by Goldman Sachs). We
expect to see similar growth rates from the balance of the portfolio when they
are announced in the second half of the year. Importantly, we ended the
previous fiscal year 31 January 2025 with over a year of dividend payments
held in revenue reserves.
Outlook
Despite the volatility seen in the first half of the fiscal year, we find
ourselves in a balanced position, and importantly do not believe that the
current fundamentals and forward outlook of the US is as negative as it may be
perceived externally. That said, market valuations remain broadly elevated, so
we need to remain selective, diligent and disciplined. It is notable that the
average forward multiple of stocks held in the Company's portfolio are
approximately 16x - not the 22-23x market headline estimates.
We view the changes in government policy around trade and tariffs as
essentially a consumption tax that will be absorbed by some combination of
exporters (non-US), importers (US) and the consumer / corporate end user.
While not as straightforward as a VAT, there are similarities, and when
combining the trade policy framework with the new fiscal policy that allows
for expensing of capital expenditures, research and development, and a more
generous interest expense deduction, there is an offsetting balance in
aggregate that should incrementally increase investment - and likely
employment - while reducing consumption. It's surely plausible to think that
"uncertainty" has been the biggest headwind for corporates and global trading
partners, not the ultimate tariff levels, and if so, the outlook should begin
to improve from here.
We should note that the administration has essentially taken a "transactional
approach" to tariffs in many regards; specifically, invest in the US and be
exempted. Longer-term, there should be a better equilibrium with regard to
global trade and this should certainly be considered in investment decisions.
Monetary policy remains in restrictive territory, and one wonders if the Fed
would have come to the same conclusion of keeping rates elevated at the end of
July if they knew about the employment report released two days after their
meeting. While this restrictive position is a current headwind, we note the
Fed can be more flexible to loosen policy versus much of the last 15 years
when monetary policy was already at the zero-bound level. Following the rate
cut in September, both monetary policy and the new fiscal policy will be
helping to offset some of the tariff headwinds. In fact, one of the bigger
risks today is that monetary and fiscal policy do not arrive fast enough to
sterilise tariffs, although if this were to be the case we believe this would
be a short-lived headwind.
We remain enthusiastic about the innovation and productivity enhancements
driven by major US companies through capital investment and research and
development spending. This includes past investments in technology and the
current and future adoption of AI. The substantial investments needed to stay
competitive tend to favour the largest industry-leading companies. The
Company's portfolio comprises businesses across various sectors that possess
the scale to make these investments, which should enhance operating leverage
and, in turn, foster earnings and dividend growth for years to come.
Additionally, deregulation benefits are expected to improve the operating
landscape for companies in sectors such as financials and energy.
We believe that the high-quality nature of the Company's portfolio holdings
should provide resilience against current external challenges, whether related
to tariff implementations or new fiscal policies. From a valuation standpoint,
we are comfortable with the average forward price to earnings multiple of
approximately 16x for the companies in the portfolio. However, we have reduced
positions in certain overextended market areas. Revenue-wise, dividend growth
remains consistent with previous periods, thanks to the predictable cash flow
and strong balance sheets of the companies in the portfolio. We continue to
focus on resilient companies that do not rely on macroeconomic tailwinds for
growth and possess the resources to invest in their future.
Fran Radano
Jeremiah Buckley
Co-Fund Managers
23 September 2025
Sector exposure (% of portfolio excluding cash)
at 31 July 2025 at 31 July 2024
% %
Financials 19.8 20.1
Industrials 13.9 9.7
Health 13.5 13.8
Care
Information Technology 11.4 7.2
Consumer Staples 10.3 13.8
Consumer Discretionary 8.3 4.6
Energy 7.3 7.9
Real 6.1 6.9
Estate
Utilities 5.9 6.0
Communication Services 3.5 5.0
Basic - 3.4
Materials
Fixed - 1.6
Interest
100.0 100.0
Geographical exposure (% of portfolio excluding cash)
at 31 July 2025 at 31 July 2024
% %
Canada 5.1 5.9
USA 94.9 94.1
100.0 100.0
Investment Portfolio as at 31 July 2025:
Valuation Valuation
Company Industry classification £'000 %
Chevron Oil, Gas & Consumable Fuels 20,631 4.4
Philip Morris Tobacco 18,619 4.0
Lamar Advertising Real Estate Investment Trusts 14,771 3.1
PNC Financial Services Banks 14,373 3.0
Citigroup Banks 14,164 3.0
CVS Health Health Care Providers & Services 14,082 3.0
CMS Energy Multi-Utilities 13,940 3.0
Xcel Energy Electricity 13,876 2.9
Gaming & Leisure Properties Specialised REITs 13,774 2.9
Enbridge Oil, Gas & Consumable Fuels 13,702 2.9
Ten largest investments 151,932 32.2
Johnson & Johnson Pharmaceuticals and Biotechnology 13,696 2.9
Medtronic Health Care Equipment & Supplies 13,641 2.9
Morgan Stanley Investment Banking and Brokerage Services 13,456 2.9
RTX Aerospace and Defence 11,906 2.5
Verizon Communications Telecommunications Service Providers 11,635 2.5
Broadcom Semiconductors & Semiconductor Equipment 11,093 2.3
Goldman Sachs Investment Banking and Brokerage Services 10,939 2.3
Restaurant Brands International Hotels, Restaurants & Leisure 10,253 2.2
U.S. Bancorp Banks 10,186 2.2
Eaton General Industrials 10,175 2.2
Twenty largest investments 268,912 57.1
Union Pacific Road and Rail 10,061 2.1
Home Depot Retailers 9,725 2.1
American Express Industrial Support Services 9,043 1.9
Texas Instruments Semiconductors & Semiconductor Equipment 8,893 1.9
OneMain Consumer Finance 8,732 1.9
Corteva Chemicals 8,719 1.8
Dell Technologies Technology Hardware and Equipment 8,523 1.8
CME Group Capital Markets 8,411 1.8
Trane Technologies Construction & Materials 8,276 1.8
Bristol-Myers Squibb Pharmaceuticals 8,186 1.7
Thirty largest investments 357,481 75.9
Booz Allen Hamilton Industrial Support Services 8,115 1.7
Accenture Industrial Support Services 8,073 1.7
Zoetis Pharmaceuticals and Biotechnology 7,712 1.7
BNY Mellon Investment Banking and Brokerage Services 7,667 1.6
Microsoft Software and Computer Services 7,660 1.6
Coca-Cola Beverages 7,184 1.5
Lam Research Technology Hardware and Equipment 7,167 1.5
Marriott International Travel and Leisure 6,975 1.5
Amgen Pharmaceuticals and Biotechnology 6,685 1.4
The Walt Disney Company Media 6,301 1.4
Forty largest investments 431,020 91.5
AbbVie Biotechnology 5,709 1.2
Nike Personal Goods 5,643 1.2
Amphenol Technology Hardware and Equipment 5,643 1.2
Progressive Non-life Insurance 5,489 1.2
Comcast Media 5,024 1.1
Alphabet Software and Computer Services 4,955 1.0
Abbott Laboratories Health Care Equipment & Services 4,766 1.0
Danaher Health Care Equipment & Services 2,981 0.6
Total investments 471,230 100.0
Principal Risks and Uncertainties
The principal risks and uncertainties associated with the Company's business
can be divided into the following main areas:
· Market
· Investment performance
· Major market event or geopolitical risk
· Income and dividend risk
· Gearing
· Discount volatility
· Derivatives
· Operational
· Regulatory and reporting
Information on these risks and how they are managed is given in the Annual
Report for the year ended 31 January 2025. In the view of the Board, these
principal risks and uncertainties continue to apply and are as applicable to
the remaining six months of the financial year as they were to the six months
under review.
Statement of Directors' Responsibilities
The Directors (as listed in note 15) confirm that, to the best of their
knowledge:
(a) the unaudited condensed set of financial statements for the
half-year to 31 July 2025 has been prepared in accordance with "FRS 104
Interim Financial Reporting" and gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company;
(b) the interim management report and condensed financial
statements include a fair review of the information required by Disclosure
Guidance and Transparency Rule 4.2.7R (indication of important events during
the first six months and description of principal risks and uncertainties for
the remaining six months of the year); and
(c) the interim management report includes a fair review of the
information required by the Disclosure Guidance and Transparency Rule 4.2.8R
(disclosure of related party transactions that have taken place in the first
six months of the current financial year and that have materially affected the
financial position or the performance of the Company during the period; and
any changes in related party transactions described in the latest annual
report that could have an impact in the first six months of the current
financial year).
On behalf of the Board
Charles Park
Chairman
23 September 2025
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Half-year ended Half-year ended Year ended
31 July 2025 31 July 2024 31 January 2025
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
return return return return return return return return return
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Net (losses)/gains on investments - (15,173) (15,173) - 37,274 37,274 - 77,132 77,132
Net currency gains/(losses) - 1,796 1,796 - 439 439 - (868) (868)
Income 9,493 - 9,493 10,468 207 10,675 21,193 262 21,455
------------ ------------ ------------ ------------ ------------ ------------ --------- --------- ---------
Gross revenue and capital (losses)/gains 9,493 (13,377) (3,884) 10,468 37,920 48,388 21,193 76,526 97,719
Expenses
Management fees (349) (813) (1,162) (455) (1,063) (1,518) (833) (1,943) (2,776)
Other operating expenses (456) - (456) (445) - (445) (795) - (795)
------------ ------------ ------------ ------------ ------------ ------------ ---------- ---------- ---------
Return before finance costs and taxation 8,688 (14,190) (5,502) 9,568 36,857 46,425 19,565 74,583 94,148
Finance costs (156) (363) (519) (168) (393) (561) (343) (800) (1,143)
------------ ------------ ------------ ------------ ------------ ------------ ---------- ---------- ----------
Return before taxation 8,532 (14,553) (6,021) 9,400 36,464 45,864 19,222 73,783 93,005
Taxation (1,285) 293 (992) (1,332) 333 (999) (2,907) 646 (2,261)
------------ ------------ ------------ ------------ ------------ ------------ ---------- ---------- ----------
Return after taxation 7,247 (14,260) (7,013) 8,068 36,797 44,865 16,315 74,429 90,744
======= ======= ======= ======= ======= ======= ---------- ---------- ----------
Return per ordinary share - basic and diluted (note 2) 5.97p (11.74p) (5.77p) 5.98p 27.30p 33.28p 12.44p 56.76p 69.20p
======= ======= ======= ======= ======= ======= ======= ======= =======
The total columns of this statement represent the Income Statement of the
Company, prepared in accordance with FRS 104. The revenue and capital columns
are supplementary to this and are published under guidance from the
Association of Investment Companies.
The Company has no recognised gains or losses other than those disclosed in
the Income Statement and Statement of Changes in Equity.
All items in the above statement derive from continuing operations. No
operations were acquired or discontinued during the period.
The accompanying notes are an integral part of the condensed financial
statements.
CONDENSED Statement of Changes in Equity
Called up share Share Capital redemption reserve Revenue reserve Total
Half-year ended capital premium £'000 Capital £'000 £'000
31 July 2025 £'000 account reserve
(unaudited) £'000 £'000
Balance at 1 February 2025 6,346 51,806 16,270 370,758 22,655 467,835
Buy-back of ordinary shares for treasury (note 3) - - - (14,485) - (14,485)
Return after taxation - - - (14,260) 7,247 (7,013)
Ordinary dividends paid - - - - (8,359) (8,359)
---------- ---------- ---------- ---------- ---------- -----------
Balance at 31 July 2025 6,346 51,806 16,270 342,013 21,543 437,978
====== ====== ====== ====== ====== ======
Called up share Share Capital redemption reserve Revenue reserve Total
Half-year ended capital premium £'000 Capital £'000 £'000
31 July 2024 £'000 account reserve
(unaudited) £'000 £'000
Balance at 1 February 2024 6,868 51,806 15,748 340,003 22,054 436,479
Buy-back of ordinary shares for cancellation (note 3) (294) - 294 (17,297) - (17,297)
Return after taxation - - - 36,797 8,068 44,865
Ordinary dividends paid - - - - (8,873) (8,873)
---------- ---------- ---------- ---------- ---------- -----------
Balance at 31 July 2024 6,574 51,806 16,042 359,503 21,249 455,174
====== ====== ====== ====== ====== ======
Year ended 31 January 2025 Called up share Share Capital redemption reserve Other Revenue reserve Total
(audited) capital premium £'000 capital £'000 £'000
£'000 account reserves
£'000 £'000
Balance at 1 February 2024 6,868 51,806 15,748 340,003 22,054 436,479
Buy-back of ordinary shares for cancellation (note 3) (522) - 522 (31,701) - (31,701)
Buy-back of ordinary shares for treasury (note 3) - - - (11,973) - (11,973)
Return after taxation - - - 74,429 16,315 90,744
Ordinary dividends paid - - - - (15,714) (15,714)
--------- ---------- ---------- ----------- ---------- ----------
Balance at 31 January 2025 6,346 51,806 16,270 370,758 22,655 467,835
====== ====== ====== ====== ====== ======
The accompanying notes are an integral part of these condensed financial
statements.
CONDENSED STATEMENT OF FINANCIAL POSITION
At 31 July 2025 At 31 July 2024 At 31 January 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Non-current assets
Investments held at fair value through profit or loss 471,230 486,950 504,594
-------------- -------------- --------------
Current assets
Debtors and prepayments 1,120 1,040 3,871
Cash and short-term deposits 7,367 6,694 5,264
-------------- -------------- --------------
8,487 7,734 9,135
-------------- -------------- --------------
Creditors: amounts falling due within one year
Traded options (551) - (96)
Other creditors (3,456) (643) (5,614)
-------------- -------------- --------------
(4,007) (643) (5,710)
-------------- -------------- --------------
Net current assets 4,480 7,091 3,425
======== ======== ========
Total assets less current liabilities 475,710 494,041 508,019
-------------- -------------- --------------
Creditors: amounts falling due after more than one year
Senior Loan Notes (37,732) (38,867) (40,184)
-------------- -------------- --------------
Net assets 437,978 455,174 467,835
======== ======== ========
Capital and reserves
Called-up share capital (note 3) 6,346 6,574 6,346
Share premium account 51,806 51,806 51,806
Capital redemption reserve 16,270 16,042 16,270
Capital reserve 342,013 359,503 370,758
Revenue reserve 21,543 21,249 22,655
-------------- -------------- --------------
Total equity 437,978 455,174 467,835
======== ======== ========
Net asset value per ordinary share - basic and diluted (note 4) 367.88p 346.21p 379.24p
======== ======== ========
The accompanying notes are an integral part of these condensed financial
statements.
CONDENSED Cash Flow Statement
Half-year ended Half-year ended Year ended
31 July 2025 31 July 2024 31 January 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Net return before taxation (6,021) 45,864 93,005
Adjustments for:
Net losses/(gains) on investments 15,392 (37,309) (77,146)
Net (losses)/gains on foreign exchange transactions (1,796) (439) 868
Decrease/(increase) in dividend income receivable 60 18 (52)
Decrease in interest income receivable 1 16 2
Increase/(decrease) in derivatives 455 (162) (66)
(Increase)/decrease in other debtors (239) (153) 32
Increase/(decrease) in other creditors 73 (574) 163
Tax on overseas income (1,054) (896) (2,261)
Accretion of fixed income book cost - (43) (44)
Amortisation of senior loan note expenses 3 4 8
------------ ------------ ------------
Net cash flow from operating activities 6,874 6,326 14,509
------------ ------------ ------------
Investing activities
Purchases of investments (122,796) (61,163) (446,018)
Sales of investments 139,352 66,312 474,976
------------ ------------ -----------
Net cash flow from investing activities 16,556 5,149 28,958
------------ ------------ ------------
Financing activities
Equity dividends paid (8,359) (8,873) (15,714)
Buyback of ordinary shares for cancellation - (17,297) (31,911)
Buyback of Ordinary shares for treasury (12,307) - (11,973)
------------ ------------ ------------
Net cash used in financing activities (20,666) (26,170) (59,598)
------------ ------------ ------------
Increase/(decrease) in cash 2,764 (14,695) (16,131)
------------ ------------ ------------
Analysis of changes in cash during the period
Opening balance 5,264 21,285 21,285
Effect of exchange rate fluctuations on cash held (661) 104 110
Increase/(decrease) in cash as above 2,764 (14,695) (16,131)
------------ ------------ ------------
Closing balance 7,367 6,694 5,264
======= ======= =======
The accompanying notes are an integral part of these condensed financial
statements.
Notes to the condensed financial statements
1. Accounting policies
a) Basis of preparation
The condensed financial statements have been prepared in accordance with
Financial Reporting Standard 104 (Interim Financial Reporting) and with the
Statement of Recommended Practice for 'Financial Statements of Investment
Trust Companies and Venture Capital Trusts'. 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. Annual financial statements are prepared under
Financial Reporting Standard 102.
The condensed interim financial statements have been prepared using the same
accounting policies as the preceding annual financial statements.
2. Return per ordinary share
The return per ordinary share is based on the loss for the half-year of
£7,013,000 (half-year ended 31 July 2024: profit of £44,865,000; year ended
31 January 2025: profit of £90,744,000) and on 121,456,228 ordinary shares
(half-year ended 31 July 2024: 134,828,246 and year ended 31 January 2025:
131,124,251), being the weighted average number of ordinary shares in issue
during the period.
The return per ordinary share detailed above can be further analysed between
revenue and capital, as below.
Half-year ended Half-year ended Year ended
31 July 2025 31 July 2024 31 January 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Revenue return 7,247 8,068 16,315
Capital return (14,260) 36,797 74,429
---------- ---------- ---------
Total return (7,013) 44,865 90,744
====== ====== ======
Half-year ended Half-year ended Year ended
31 July 2025 31 July 2024 31 January 2025
(unaudited) (unaudited) (audited)
Pence pence pence
Revenue return per ordinary share 5.97 5.98 12.44
Capital return per ordinary share (11.74) 27.30 56.76
---------- ---------- ---------
Total return per ordinary share (5.77) 33.28 69.20
====== ====== ======
3. Share capital
At 31 July 2025 there were 126,923,569 ordinary shares in issue (31 July 2024:
131,472,857; 31 January 2025: 126,923,569) of which 7,868,681 were held in
treasury (31 July 2024: none; 31 January 2025: 3,561,882), resulting in
119,054,888 shares entitled to a dividend (31 July 2024: 131,472,857; 31
January 2025: 123,361,687).
During the half-year ended 31 July 2025, the Company repurchased 4,306,799
ordinary shares which were placed in treasury, at a total cost of £14,485,000
(31 July 2024: 5,879,490 shares cancelled, 31 January 2025: 10,428,778
cancelled and 3,561,882 were placed into treasury). No ordinary shares were
issued (31 July 2024 and 31 January 2025: same).
Since 31 July 2025, the Company has bought back an additional 3,194,593
shares. 11,063,274 are currently held in treasury.
4. Net asset value per ordinary share
The net asset value per ordinary share is based on the net assets attributable
to equity shareholders of £437,978,000 (31 July 2024: £455,174,000; 31
January 2025: £467,835,000) and on 119,054,888 ordinary shares (31 July 2024:
131,472,857; 31 January 2025: 123,361,687), being the number of ordinary
shares in issue at the period end, excluding treasury shares. The number of
ordinary shares in issue at 31 July 2025 includes 636,244 ordinary shares
bought back prior to the year end which had not yet settled.
5. Dividends
The Company has declared an interim dividend of 2.8p per ordinary share (31
July 2024: 2.7p) payable on 31 October 2025 to members on the register as at 3
October 2025. The shares will trade ex-dividend on 2 October 2025.
A fourth interim dividend of 4.1p per ordinary share was paid on 7 May 2025
from the Company's revenue account in respect of the year ended 31 January
2025. A first interim dividend of 2.8p per ordinary share was paid on 31 July
2025 from the Company's revenue account in respect of the year ending 31
January 2026.
6. Transaction costs
Purchase transaction costs for the half-year ended 31 July 2025 were £20,000
(half-year ended 31 July 2024: £35,000; year ended 31 January 2025:
£85,000). These comprise mainly stamp duty and commission. Sales transaction
costs for the half-year ended 31 July 2025 were £9,000 (half-year ended 31
July 2024: £39,000; year ended 31 January 2025: £95,000).
7. Management fee
Under the terms of an agreement effective from 1 August 2024 the Company has
appointed wholly owned subsidiaries of Janus Henderson Investors to provide
investment management, accounting, administrative and company secretarial
services. Janus Henderson Investors has contracted with BNP Paribas S.A. to
provide accounting and administration services. Janus Henderson Investors
receives an annual management fee of 0.55% of the Company's net asset value up
to £500 million and 0.45% on net assets above £500 million, payable
quarterly.
Until 31 July 2024 the Company had an agreement with abrdn Fund Managers
Limited ("aFML") for the provision of investment management, secretarial,
accounting and administration and promotional activity services. 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 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.
The fee is allocated 30% to revenue and 70% to capital. During the period
£374,000 (31 July 2024: £nil) of management fees were payable to Janus
Henderson, with a balance of £788,000 (31 July 2024: £nil) being due to
Janus Henderson at the period end. During the period £nil (31 July 2024:
£1,518,000) of investment management fees were payable to aFML, with a
balance of £nil (31 July 2024: £263,000) being due to aFML at the period
end.
8. Financial instruments
At the period end the carrying value of financial assets and financial
liabilities approximates their fair value.
Fair value hierarchy
The table below analyses recurring fair value measurements for financial
assets and financial liabilities. These fair value measurements are
categorised into different levels in the fair value hierarchy based on the
inputs to valuation techniques used. Categorisation within the hierarchy has
been determined on the basis of the lowest level of input that is significant
to the fair value measurement of the relevant asset or liability. The
different levels are defined as follows:
Level 1: valued using quoted prices in active markets for identical assets;
Level 2: valued by reference to valuation techniques using observable
inputs other than quoted prices included within Level 1; and
Level 3: valued by reference to valuation techniques that are not based on
observable market data.
Financial assets and financial liabilities at fair value Level 1 Level 2 Level 3 Total
through profit or loss at 31 July 2025 £'000 £'000 £'000 £'000
Investments at fair value through profit or loss
Quoted equities 471,230 - - 471,230
------------ ------------ ------------ ------------
Total financial assets and liabilities carried 471,230 - - 471,230
at fair value
======= ======= ======= =======
Financial liabilities at fair value through profit or loss - (551) - (551)
Derivatives
------------ ------------ ------------ ------------
Net fair value 471,230 (551) - 470,679
======= ====== ====== =======
Financial assets and financial liabilities at fair value Level 1 Level 2 Level 3 Total
through profit or loss at 31 July 2024 £'000 £'000 £'000 £'000
Investments at fair value through profit or loss
Quoted equities 479,116 - - 479,116
Quoted bonds - 7,834 - 7,834
------------ ---------- ----------- ------------
Total financial assets and liabilities carried 479,116 7,834 - 486,950
at fair value
======= ======= ======= =======
Financial liabilities at fair value through profit or loss
Derivatives - - - -
------------ ------------ ------------ ------------
Net fair value 479,116 7,834 - 486,950
======= ====== ====== =======
Financial assets and financial liabilities at fair value Level 1 Level 2 Level 3 Total
Through profit or loss at 31 January 2025 £'000 £'000 £'000 £'000
Investments at fair value through profit or loss
Quoted equities 504,594 - - 504,594
------------ ------------ ------------ ------------
Total financial assets and liabilities carried at fair value 504,594 - - 504,594
======= ====== ====== =======
Financial liabilities at fair value through profit or loss - (96) - (96)
Derivatives
------------ ------------ ------------ ------------
Net fair value 504,594 (96) - 504,498
======= ====== ====== =======
There were no transfers between levels of fair value hierarchy during the
period. Transfers between levels of fair value hierarchy are deemed to have
occurred at the date of the event or through a change in circumstances that
caused the transfer.
The fair value of the senior unsecured loan notes at 31 July 2025 has been
estimated to be £34,641,000 (31 July 2024: £35,749,000; 31 January 2025:
£36,188,000). The fair value of the senior unsecured loan notes is calculated
using a discount rate which reflects the yield on a US Treasury Bond of
similar maturity. The senior unsecured loan notes are categorised as level 3
in the fair value hierarchy.
9. Going concern
The assets of the Company consist mainly of securities, most of which are
readily realisable and, accordingly, the Company has adequate financial
resources to continue in operational existence for at least twelve months from
the date of approval of the financial statements. The Directors have also
considered the impact of geopolitical developments and believe that there will
be a limited resulting financial impact on the Company's portfolio, its
operational resources and existence. Having assessed these factors and the
principal risks, the Directors have determined that it is appropriate for the
financial statements to be prepared on a going concern basis.
10. Related party transactions
The Company's transactions with related parties in the period were with the
directors and the investment manager. There were no material transactions
between the Company and its directors during the period and the only amounts
paid to the directors were in respect of expenses and remuneration for which
there were no outstanding amounts payable at the period end. In relation to
the provision of services by the investment manager, other than fees payable
by the Company in the ordinary course of business and the facilitation of
marketing activities with third parties, there were no material transactions
with the investment manager affecting the financial position of the Company
during the period under review.
11. Comparative information
The financial information contained in this half-year report does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006. The financial information for the half-years ended 31 July 2025 and 31
July 2024 has not been audited or reviewed by the Company's auditors. The
figures and financial information for the year ended 31 January 2025 are an
extract based on the latest published accounts and do not constitute statutory
accounts for that year. Those accounts have been delivered to the Registrar of
Companies and include the Independent Auditor's Report which was unqualified
and did not contain a statement under either section 498(2) or 498(3) of the
Companies Act 2006.
12. 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.janushenderson.com/NAIT.
13. Half-year report
The Company's half-year report is available on the Company's website. An
update extracted from the Company's report for the half-year ended 31 July
2025 will be posted to shareholders in October 2025 and is available on the
website.
14. Company status
The North American Income Trust plc is registered in Scotland, No. SC005218,
has its registered office at 4 North St. Andrew Street, Edinburgh EH2 1HJ.
The Company is listed on the main market of the London Stock Exchange.
SEDOL/ISIN: BJ00Z30/ GB00BJ00Z303
London Stock Exchange (TIDM) code: NAIT
Global Intermediary Identification Number (GIIN): XYAARK.99999.SL.826
Legal Entity Identifier (LEI): 5493007GCUW7G2BKY360
15. Directors and Secretary
At the date of this report, the directors of the Company are Charles Park
(Chairman), Karyn Lamont (Chair of the Audit Committee), Patrick Edwardson
(Senior Independent Director), Bulbul Barrett and Susannah Nicklin. As
previously announced, John Adebiyi joins the Board on 1 October 2025. The
Corporate Secretary is Janus Henderson Secretarial Services UK Limited
(telephone: 020 7818 1818 and email itsecretariat@janushenderson.com).
For further information please contact:
Fran Radano, Fund Manager Jeremiah Buckley, Fund Manager
The North American Income Trust plc The North American Income Trust plc
Telephone: +13033367935 Telephone: +13033367872
Harriet Hall, PR Director, Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 2919
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) are
incorporated into, or form part of, this announcement.
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