£400m N American fund moves from Abrdn to Janus

Susan Rice, chair of North American Income Trust

The £400 million North American Income Trust plc announced it has provided notice to terminate Abrdn as its fund manager and agreed 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,” said the investment trust.

“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 fund.

Radano has resigned from his role at Abrdn 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.

North American Income Trust chair 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.”

Janus Henderson’s appointment is expected to become effective in Q3 of 2024, subject to the passing of the continuation vote.

Janus Henderson Head of US Equities 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.”

North American Income Trust said the move to Janus Henderson will give the fund access to a “strong, well-resourced US equity capability managing assets of $180 billion.”

“Janus Henderson has a large and well-resourced North American analyst team, capable of producing innovative and insightful investment ideas for the company,” said the trust.

“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.”

North American Income Trust said the move will bring access to a “collaborative and extensive team” of 15 portfolio managers headed by Pinto and that Radano will be supported by a team of 36 US equity analysts who are industry experts with an average experience of 17 years.

The fund said the move will bring management by equity income specialists — of Janus Henderson’s 11 investment trusts, currently three are “dividend heroes and five are next-generation dividend heroes.”

It said the move will bring a reduction in the company’s management fee for the benefit of shareholders.

“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,” said the fund.

“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.”