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North American Income Trust (NAIT)
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- Lemon Quarter
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- Lemon Slice
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Re: North American Income Trust (NAIT)
Likewise today I have bought some for my ISA. It seems the board have had a bit of fright that they had gone into the meltdown with quite a bit of high yield rubbish. A (painful) clearout and reorientation to more reliable payers has followed. Given they are trading at a decent discount I believe they are worth purchasing with the very long term in mind.
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- Lemon Quarter
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- 2 Lemon pips
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Re: North American Income Trust (NAIT)
XFool wrote:mc2fool wrote:jackdaww wrote:just looked at AIC website .
NAIT is described...
To generate capital growth for shareholders over the long term, from a focused portfolio of UK micro-cap companies (whose market capitalisations are under GBP 150m at the time of investment) targeting a compound return of 15% p.a. over the long term.
yet the portfolio is clearl big US stocks.
puzzled...
Already noted just a few posts up from yours and, as noted a couple of posts after that, already reported to the AIC.
Too soon!
Perhaps this explains the share-price decline: existing shareholders taking fright at the (apparent) drastic change in focus from US large-cap to UK micro?
- OllyDrod
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Re: North American Income Trust (NAIT)
mc2fool wrote:GrahamPlatt wrote:Went to check this out over on theaic. Strange description on the Overview almost put me off immediately. “Objective: To generate capital growth for shareholders over the long term, from a focused portfolio of UK micro-cap companies (whose market capitalisations are under GBP 150m at the time of investment)“
Clearly an error on the AIC website and if we bring it to the attention of our resident AIC staff member it'll get fixed. So...DavidM13 wrote:
Yuck! I have informed Morningstar of this now. Thanks for the tag.
We have asked they put this up tomorrow
"The objective of the Company is to provide investors with above average dividend income and long term capital growth through active management of a portfolio consisting predominately of
S&P 500 US equities"
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Re: North American Income Trust (NAIT)
NAIT got a shout-out from Kyle Caldwell on the MoneyObserver site today - touch wood that helps to keep driving the share price recovery!
Link: https://www.moneyobserver.com/news/barg ... price-tags?
- OllyDrod
Link: https://www.moneyobserver.com/news/barg ... price-tags?
- OllyDrod
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- Lemon Slice
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Re: North American Income Trust (NAIT)
Another North American IT that seems to have had a fright is Middlefield Canadian. The manager has been very busy! A substantial move around of assets with a big increase to US listed shares. Has even bought Microsoft and McDonalds! Given the substantial discount worth a look......
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- Lemon Slice
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Re: North American Income Trust (NAIT)
flyer61 wrote:Another North American IT that seems to have had a fright is Middlefield Canadian. The manager has been very busy! A substantial move around of assets with a big increase to US listed shares. Has even bought Microsoft and McDonalds! Given the substantial discount worth a look......
up 4.83% today on a falling market.
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- Lemon Quarter
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Re: North American Income Trust (NAIT)
flyer61 wrote:Another North American IT that seems to have had a fright is Middlefield Canadian. The manager has been very busy! A substantial move around of assets with a big increase to US listed shares. Has even bought Microsoft and McDonalds! Given the substantial discount worth a look......
I took it that MCP had been more adversely affected because of its holding of energy and pipeline stocks, REIT's and financials. Though I noted in its May report that the Canadian REIT's had held up very well.
It is certainly at a good yield currently of 6.6% and a discount to NAV of -17.25%
https://www.hl.co.uk/shares/shares-sear ... ome-gbp-pc
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- Lemon Slice
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Re: North American Income Trust (NAIT)
Richfool, (though I don't think you are a fool
like NAIT MCT has had a substantial churn of stocks when the folk running them realised they were not well positioned for sustainable income going forward. What I find interesting (and investable) is that having repositioned the funds the discount has widened. There was a lot of talk recently about UK income IT's and the discount narrowing substantially as people searched for (perceived) secure income. Here we have the opposite happening. The managers have made the changes to ensure the income keeps flowing and the discount widens.....go figure.
So have bought both in my ISA.
like NAIT MCT has had a substantial churn of stocks when the folk running them realised they were not well positioned for sustainable income going forward. What I find interesting (and investable) is that having repositioned the funds the discount has widened. There was a lot of talk recently about UK income IT's and the discount narrowing substantially as people searched for (perceived) secure income. Here we have the opposite happening. The managers have made the changes to ensure the income keeps flowing and the discount widens.....go figure.
So have bought both in my ISA.
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- Lemon Quarter
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Re: North American Income Trust (NAIT)
flyer61 wrote:Richfool, (though I don't think you are a fool
like NAIT MCT has had a substantial churn of stocks when the folk running them realised they were not well positioned for sustainable income going forward. What I find interesting (and investable) is that having repositioned the funds the discount has widened. There was a lot of talk recently about UK income IT's and the discount narrowing substantially as people searched for (perceived) secure income. Here we have the opposite happening. The managers have made the changes to ensure the income keeps flowing and the discount widens.....go figure.
So have bought both in my ISA.
Hi flyer, Yes, agreed. I hold both trusts. MCT is amongst one of my larger holdings. Unfortunately the time lag between managers making changes to their portfolios and those changes showing in the fact sheets means we aren't always up to date on the latest portfolio holdings/changes.
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- Lemon Quarter
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Re: North American Income Trust (NAIT)
Evening all
If anyone follows the John Baron portfolios, there was a recommendation through today to sell NAIT in favour of Baillie Gifford US Growth Trust (USA) within the 'Summer' portfolio. A very different animal (as the name suggests, focussing on growth rather than income) and quite big convictions in disruptive tech (Tesla, Amazon and Shopify).
Cheers, OLTB.
If anyone follows the John Baron portfolios, there was a recommendation through today to sell NAIT in favour of Baillie Gifford US Growth Trust (USA) within the 'Summer' portfolio. A very different animal (as the name suggests, focussing on growth rather than income) and quite big convictions in disruptive tech (Tesla, Amazon and Shopify).
Cheers, OLTB.
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- Lemon Quarter
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Re: North American Income Trust (NAIT)
OLTB wrote:Evening all
If anyone follows the John Baron portfolios, there was a recommendation through today to sell NAIT in favour of Baillie Gifford US Growth Trust (USA) within the 'Summer' portfolio. A very different animal (as the name suggests, focussing on growth rather than income) and quite big convictions in disruptive tech (Tesla, Amazon and Shopify).
Cheers, OLTB.
Thanks for the update, OLTB.
Whilst I already hold NAIT, (for income and US exposure), I bought into Baillie Gifford US Growth trust (USA) back in April, in view of its excellent capital growth record. It has done very well since then. My holding is currently up by +27%, even with a more recent top up at a higher price. But, it is definitely a growth trust, with no dividend at all, and it's at a premium of c 5 -6%. Meanwhile my holding of NAIT is down - 2%.
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- Lemon Quarter
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Re: North American Income Trust (NAIT)
richfool wrote:OLTB wrote:Evening all
If anyone follows the John Baron portfolios, there was a recommendation through today to sell NAIT in favour of Baillie Gifford US Growth Trust (USA) within the 'Summer' portfolio. A very different animal (as the name suggests, focussing on growth rather than income) and quite big convictions in disruptive tech (Tesla, Amazon and Shopify).
Cheers, OLTB.
Thanks for the update, OLTB.
Whilst I already hold NAIT, (for income and US exposure), I bought into Baillie Gifford US Growth trust (USA) back in April, in view of its excellent capital growth record. It has done very well since then. My holding is currently up by +27%, even with a more recent top up at a higher price. But, it is definitely a growth trust, with no dividend at all, and it's at a premium of c 5 -6%. Meanwhile my holding of NAIT is down - 2%.
Thanks richfool
I should just re-word my clumsy posting by saying that the email wasn’t a recommendation to sell NAIT and buy USA, it was information to say there was a trade within the Summer portfolio where NAIT was sold and USA bought.
No change to the outcome, but just thought I should clarify what was posted as the word ‘recommendation’ comes with certain legal connotations I’m sure!
USA looks to have similar holdings to Scottish Mortgage (SMT) richfool and that has done wonders for my ISA so fingers crossed it keeps improving as you have experienced lately.
Cheers, OLTB
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Re: North American Income Trust (NAIT)
OLTB wrote:USA looks to have similar holdings to Scottish Mortgage (SMT) richfool and that has done wonders for my ISA so fingers crossed it keeps improving as you have experienced lately.
Cheers, OLTB
Agreed there is a degree of overlap of holdings between USA and SMT. SMT additionally includes holdings of Chinese and Asian technology stocks.
It is somewhat disappointing that NAIT doesn't have better capital performance, but I appreciate that it is targetting income. I like its holdings, (list from the factsheet):
Ten largest equity holdings (%)
AbbVie 5.6
Verizon Communications 4.6
Philip Morris 4.4
Bristol-Myers Squibb 4.2
Gilead Sciences 3.9
Lockheed Martin 3.9
Citigroup 3.8
Chevron 3.7
TC Energy 3.1
UnitedHealth
Note NAIT ex dividend on 16/7/2020. 1.8p per share. Paid 7/8/2020.
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Re: North American Income Trust (NAIT)
richfool wrote:OLTB wrote:USA looks to have similar holdings to Scottish Mortgage (SMT) richfool and that has done wonders for my ISA so fingers crossed it keeps improving as you have experienced lately.
Agreed there is a degree of overlap of holdings between USA and SMT. SMT additionally includes holdings of Chinese and Asian technology stocks.
It is somewhat disappointing that NAIT doesn't have better capital performance, but I appreciate that it is targetting income. I like its holdings, (list from the factsheet):
Ten largest equity holdings (%)
AbbVie 5.6
Verizon Communications 4.6
Philip Morris 4.4
Bristol-Myers Squibb 4.2
Gilead Sciences 3.9
Lockheed Martin 3.9
Citigroup 3.8
Chevron 3.7
TC Energy 3.1
UnitedHealth
I could mostly duplicate that portfolio with UK names drawn from pharma, energy, banks, tobacco and phones. Maybe only UnitedHealth there gives you something different i.e. a huge healthcare insurer - a sector that barely exists here.
For my money if you are going to invest in the US it is better to invest for growth, which is where the US has names with no UK equivalent. Whilst if you hold both a US growth fund and something like NAIT, then the result starts to look more like an expensive US index fund.
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- Lemon Quarter
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Re: North American Income Trust (NAIT)
Lootman wrote:richfool wrote:OLTB wrote:USA looks to have similar holdings to Scottish Mortgage (SMT) richfool and that has done wonders for my ISA so fingers crossed it keeps improving as you have experienced lately.
Agreed there is a degree of overlap of holdings between USA and SMT. SMT additionally includes holdings of Chinese and Asian technology stocks.
It is somewhat disappointing that NAIT doesn't have better capital performance, but I appreciate that it is targetting income. I like its holdings, (list from the factsheet):
Ten largest equity holdings (%)
AbbVie 5.6
Verizon Communications 4.6
Philip Morris 4.4
Bristol-Myers Squibb 4.2
Gilead Sciences 3.9
Lockheed Martin 3.9
Citigroup 3.8
Chevron 3.7
TC Energy 3.1
UnitedHealth
I could mostly duplicate that portfolio with UK names drawn from pharma, energy, banks, tobacco and phones. Maybe only UnitedHealth there gives you something different i.e. a huge healthcare insurer - a sector that barely exists here.
For my money if you are going to invest in the US it is better to invest for growth, which is where the US has names with no UK equivalent. Whilst if you hold both a US growth fund and something like NAIT, then the result starts to look more like an expensive US index fund.
NAIT gives me exposure to those particular sectors (and stocks) in the USA, as well as to income producing stocks. I (also) get exposure to the various sectors in other geographies, such as the UK, through other IT's.
As mentioned above, I do hold other trusts which concentrate on growth, USA (Baillie Gifford US growth trust) in the case of the US, as well as global growth trusts. I wouldn't propose to focus solely on growth stocks in the US. I diversify in terms of income and growth as well as sectors, geographies and indeed Managers.
I do take the point that the US offers a wider range of growth stocks and without a UK equivalent. Whilst historically I gained some exposure to such stocks through global growth & income trusts like JGGI, I realised that that was not enough and subsequently increased my exposure through USA, SMT, MNL, Monks & Mid Wynd.
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- Lemon Quarter
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Re: North American Income Trust (NAIT)
richfool wrote:NAIT gives me exposure to those particular sectors (and stocks) in the USA, as well as to income producing stocks. I (also) get exposure to the various sectors in other geographies, such as the UK, through other IT's.
That's what I've done. NAIT is my American holding of similar companies to what's available in the UK, with other Investment Trusts doing similar for the UK.
For the rest of North America, stuff that doesn't have much in the way of a UK equivalent, rather than investment trusts I've gone with direct holdings in operating companies (e.g. Amazon, 3M, Canadian Pacific).
Though I've got quite a bit of US Growth companies through international ITs like Bankers, F&C and Brunner.
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Re: North American Income Trust (NAIT)
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?
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?
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