The North American Income Trust’s objective is to provide investors with above-average dividend income and long-term capital growth through active management of a portfolio consisting predominantly of equities in the benchmark S&P 500 Index. The board also benchmarks the trust against the Russell 1000 Value Index. The investment objective was changed on 29 May 2012 from being an index fund tracking the capital and income of the S&P 500 Index.
The North American Income Trust (NAIT) adopted an active strategy in 2012, aiming to generate above-average income and long-term capital growth primarily from investment in US and selected Canadian equities. NAIT’s performance has been particularly strong over the last 12 months in absolute terms and relative to its S&P 500 index benchmark and its NAV total return is ahead of the peer group average over one, three, five and 10 years. NAIT has a progressive dividend policy – annual dividends have compounded by 19.2% pa over the last three years and during this time there have been regular additions to revenue reserves.