compscidude wrote:https://www.northamericanincome.co.uk/
The North American Income Trust plc (Aberdeen standard investments)
NAIT.L
I purchased this for my portfolio last month. I find the current >12% discount attractive (vs. +4% premium 12 months ago), the terms and scale of gearing attractive, the holdings attractive (sectors, balance, and PER). The fee, less attractive, though in light of the discount I'll live with it.
But perhaps I am an idiot. If anyone would like to tell me why I am an idiot, specifically in relation to this IT, I would be very glad to hear them.
comp
p.s. separately has anyone noticed a large number of peculiar trades in this stock in the last week?
I purchased in May at a similar discount and found it attractive for similar reasons - nice broad exposure to the US, undervalued holdings, uncharacteristic discount and with a reasonably punchy yield to boot. I don't expect stellar capital performance but it's well-placed to benefit if there is a more sustained rotation to value and should do well over the medium-term as the US begins to get a handle on COVID and economic activity returns to some semblance of normality. With ~19% in financials, it also stands to benefit if the Fed raises interest rates. I expect the discount to narrow and the board seem happy to buy back back the shares. The fee would be high for a bog-standard UK income IT, but there aren't many comparable US Income trusts out there (BlackRock has an NA Income fund, and there's the Middlefield Canadian, but I think that's it). Given how well-researched the US is, I imagine management are having to work hard to find value - and I'm happy to pay them for it. The fee structure per the AIC seems reasonable.
For me, its a nice and boring buy and hold with the potential for capital growth which gives me exposure to the 'real' US economy. If that ticks your boxes, then good - you're not an idiot. If you were expecting a clone of Baillie Gifford USA... you're still not an idiot - but might want to re-evaluate the position (!)
Wasn't paying close attention last week - what peculiar trades have you spotted?
- OllyDrod