The North American Income Trust (NAIT) released its annual financial report for the year ended January 31, 2025, highlighting its investment objective, performance highlights, financial calendar, and dividends. The report also includes a chairmans statement, fund managers report, portfolio details, and notes on managing risks, viability, related-party transactions, and directors responsibilities. Heres a summary
## Investment Objective
NAIT aims to provide investors with above-average dividend income and long-term capital growth through active management of a portfolio consisting predominantly of S&P 500 US equities.
## Performance Highlights
For the year ended January 31, 2025, NAITs net asset value (NAV) per share total return was 23.8%, outperforming the Russell 1000 Value Index (22.5%) and the S&P High Yield Dividend Aristocrats Index (14.9%). The share price total return was 24.9%. Earnings per share were 12.4 pence, and the revenue reserve stood at £22.66 million. The Board declared a fourth interim dividend of 4.1 pence per share, resulting in total dividends for the year of 12.2 pence per share, marking the 14th consecutive year of dividend growth.
## Financial Calendar and Dividends
The Annual General Meeting is scheduled for June 3, 2025, and the half-year end is July 31, 2025. Payment dates for quarterly dividends for the financial year ending January 31, 2026, are scheduled for August 2025, October 2025, January 2026, and May 2026.
## Chairmans Statement
The chairman, Charles Park, highlighted governance improvements, the transition to a new investment manager (Janus Henderson Investors), a reduction in the management fee, a more proactive share buyback program, and the introduction of a conditional tender mechanism. He also discussed the performance of the US economy, volatility in the S&P 500, and the impact of trade tariffs.
## Fund Managers Report
The fund managers, Fran Radano and Jeremiah Buckley, provided an overview of the US market performance, sector contributions, and portfolio activity. They discussed the addition of companies benefiting from increased spending on Artificial Intelligence and healthcare sector investments. The managers also highlighted dividend growth within the portfolio and their outlook for the future, including the impact of economic concerns and policy changes.
## Portfolio Details
The portfolio as of January 31, 2025, is presented, showing the top 40 investments and their valuations, as well as sector and regional breakdowns.
## Managing Risks
The Board identified and discussed various risks, including market risk, investment performance risk, major market event or geopolitical risk, income and dividend risk, gearing risk, discount volatility, derivatives risk, operational risk, and regulatory and reporting risk. The Board also provided an assessment of the Companys viability over a three-year period.
## Related-Party Transactions
Details of transactions with related parties, primarily the directors and the Manager, are disclosed.
## Statement of Directors Responsibilities
The directors confirm that the financial statements give a true and fair view of the Companys assets, liabilities, financial position, and return, and that the Annual Report includes a fair review of the Companys development, performance, and position.
## Financial Statements
The financial statements include the income statement, statement of changes in equity, statement of financial position, statement of cash flows, and notes to the financial statements. These provide detailed information on the Companys financial performance and position for the year ended January 31, 2025, and comparisons with the previous year.