North American Regulatory News (NAIT)

London, UK, 27 April 2016

Edison issues initiation on The North American Income Trust

The North American Income Trust (NAIT) is a concentrated portfolio of primarily US large-cap stocks. Manager Fran Radano selects companies on the basis of their quality, value and income. The trust is benchmarked against the S&P 500 Index, but is also referenced against the Russell 1000 Value Index as it better reflects the investment mandate and income objective. Prior to May 2012, the trust was an index fund tracking the total return of the S&P 500 Index. NAIT has a progressive distribution policy (dividends have compounded at a 19.2% annual rate over the last three years) and since the change in objective has regularly added to revenue reserves.

The current share price discount to cum-income NAV of 11.4% compares to a range of 4.8% to 13.5% over the past 12 months. It is wider than the average of the last three, five and 10 years (range of 4.1% to 5.7%). There is no formal discount control policy in place, but the board has been actively repurchasing shares since mid-2014. The trust has a progressive dividend policy with an above-average yield. At the current share price, the dividend yield is 3.6%.

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