North American Income praises US deregulation as net asset value rises

North American Income Trust PLC on Friday posted a rise in net asset value for the first six months of financial 2027, and reinforced its confidence in the US business environment.

The Edinburgh-headquartered financial services company reported a net asset value of 448.5 pence per share, with debt at fair value, as of July 31, up from 370.5p a year earlier.

The company's six-month NAV total return was just shy of 14%, compared with just under 18% for the Russell 1000 Value index during the same period. The S&P High Yield Dividend Aristocrats index had a total return of 7.9%.

North American IT set an interim dividend of 6.0 pence per share, up from 5.6p on-year.

"The first half of 2026 was another strong period for US equities, although that outcome probably looked far from certain at several points along the way...and risks undoubtedly persist," noted North American IT's co-fund managers, Fran Radano and Jeremiah Buckley.

"The markets have remained incredibly resilient over the past year and, while we are surely not expecting smooth sailing as the midterm elections approach, there are some structural changes to the US economy that should position it well for the future," they continued.

"A wave of deregulation should improve the operating environment across multiple industries. Financial companies in particular should benefit, as greater flexibility may allow excess capital to be redeployed into more productive uses and, theoretically, permeate across the wider economy.

"Of course, energy remains a wildcard and forms an important part of our risk assessment, particularly we are considering its potential effect on inflation."

Artificial intelligence-related infrastructure remains central to North American IT's portfolio, though the company flagged that growth in this sector may be "more disciplined" going forward.

As of July 31, just under 20% of the investment company's portfolio was made up of Financials, its largest allocation, followed by Industrials at 13% and Information Technology, just under 13%.

"The investment required to succeed in the new digital economy is significant and therefore tends to favour the largest companies within their industries. We have populated the portfolio with businesses that have the scale to make these investments, which should help drive future growth in earnings and dividends," Buckley and Radano added.

The company's shares rose 0.9% to 436.00 pence each on Friday morning in London.

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