North American Income Trust net asset value grows amid bullish dollar

(Alliance News) - North American Income Trust PLC on Wednesday reported a higher net asset value in the financial year that ended on January 31, citing a stronger dollar compared to sterling.

Net asset value per share at January 31 rose 5.8% to 337.2 pence from 318.8p a year prior. NAV total return however declined to 9.6% from 25.7%, but outperformed the 8.5% return in sterling terms for the Russell 1000 Value Index. North American Income Trust said while surging inflation caused share prices in North America to drop from early 2022, a stronger dollar against the pound increased North American equities in sterling terms on a total return basis.

The company proposes a final dividend of 3.50p, 13% lower than 4.00p a year ago. This brings the total payout to 11.00p, up 6.8% from 10.30p.

Looking ahead, North American Income Trust said: "The economic outlook, both in the US and abroad, remains challenging and earnings downgrades have continued to come through since the end of the third-quarter earnings season. Nonetheless, US equity levels now appear to have priced in a strong probability of slowing economic growth and that inflation has peaked." It added that it is cautiously optimistic for US equities, in particular as an asset class.

North American Income Trust shares were 0.4% lower at 276.34 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

North American