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DOMAIN.
9 May 2024
The North American Income
Trust Plc
Change of Investment
Manager
The Board of The North American
Income Trust Plc (the "Company") is pleased to announce that
the Company has agreed heads of terms to appoint Janus Henderson
Fund Management UK Limited as its new AIFM and Investment Manager.
This follows an extensive review of its existing management
arrangements and engagement with a number of management groups. The
Board believes that the move to Janus Henderson offers its
shareholders a variety of benefits, including access to the
strength and breadth of its US equity capabilities.
Fran Radano will remain portfolio
manager of the Company. Fran Radano has resigned from his role at
abrdn Inc. and has agreed to join Janus Henderson, where he will
continue to manage the Company's portfolio supported by Janus
Henderson's US equities team.
Benefits to shareholders
The Board believes the change of
management to Janus Henderson will provide the following benefits
to shareholders:
· Access
to a strong, well-resourced US equity capability managing assets of
$180 billion[1]. Janus Henderson has a long
history of managing US equities.
· Janus
Henderson has a large and well-resourced North American analyst
team, capable of producing innovative and insightful investment
ideas for the Company. Janus Henderson and the Board believe this
will help create an actively managed portfolio for the Company of
high-quality companies - defined by revenue growth, earnings growth
and increasing dividends.
· Access
to a collaborative and extensive team of 15 portfolio managers
headed by Marc Pinto, Head of US Equities. Fran Radano will be
supported by a team of 36 US equity analysts who are industry
experts with an average experience of 17 years.
· Management by equity income specialists - of Janus Henderson's
eleven investment trusts, currently three are dividend heroes and
five are next-generation dividend heroes.
· Reduction in the Company's management fee for the benefit of
shareholders, as outlined below.
· A
dedicated investment trust team with strong expertise amongst
professional and retail investors.
Details on the appointment of new
Investment Manager:
Janus Henderson will receive 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. This
represents a reduction from the current levels of fees paid to
abrdn Fund Managers Limited of 0.75% of net assets up to £250m,
0.6% of net assets between £250m and £500m and 0.5% of net assets
above £500m.
Janus Henderson has agreed to make a
contribution to the Company's costs of the change of Investment
Manager. This contribution may be funded by an offset against the
management fee payable to it, up to a maximum period of three
months from its appointment as AIFM. The investment management
agreement shall be terminable by either party serving six months'
notice.
The appointment of Janus Henderson
on the terms set out in the heads of terms is conditional on the
execution of a new management agreement, finalisation of other
contractual documentation and the passing of the Company's
continuation vote. Janus Henderson will seek the required FCA
regulatory clearances to act as the Company's AIFM.
Expected Timing
The Company has provided notice to
terminate the appointment of abrdn Fund Managers Limited as the
Company's AIFM, company secretary and administrator. Janus
Henderson's appointment as AIFM is expected to become effective in
Q3 2024, subject to the passing of the continuation
vote.
Chair of The North American Income
Trust Plc, Dame Susan Rice, said:
"We are delighted to announce the appointment of Janus
Henderson as the Company's new Investment Manager and AIFM. Fran
Radano has managed the Company's portfolio for over 10 years and we
believe that working closely with Janus Henderson's broad and
experienced equities desk in the US will bolster his ability to
continue to find attractive investment opportunities in the North
American market. Janus Henderson has strong credentials in North
American equity income investment and we believe that this will
lead to improved NAV performance while maintaining the Company's
attractive dividend."
Head of US Equities at Janus
Henderson, Marc Pinto, said:
"The North American Income Trust Plc is an excellent addition
to our investment trust stable. Its US focus is a great complement
to our existing range, and its commitment to delivering dividend
income as well as long-term capital growth is well-suited to our
capabilities as a group. The US equities team and I look forward to
working with both the Board and with Fran Radano, to share our
expertise and deliver for their shareholders over the
long-term."
Enquiries/Contact
The
North American Income Trust Plc
|
Contact via Winterflood
Securities
|
Dame Susan Rice, Chairman
|
|
|
|
Winterflood Securities
|
+44(0) 20 3100 0000
|
Joe Winkley
|
|
Neil Morgan
Haris Khawaja
|
|
|
|
Janus Henderson Investors
|
|
Dan Howe, Head of Investment
Trusts
|
+44(0) 20 7818 4458
|
For media enquiries:
Harriet Hall, PR Director
harriet.hall@janushenderson.com
|
|
Legal Entity Identifier:
5493007GCUW7G2BKY360