As markets turn North American Income Trust may start to deliver


#1

The American stock market is notoriously difficult to beat. Two years ago, Aberdeen decided to change the mandate of its US Tracker trust to an active
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#2

I think I want to see 3 year figures before investing with this guy. For me I prefer a tracker to invest in America for the reasons you state about it being hard to beat the market.

I prefer using active managers where they have a chance to get to work.


#3

You do have a point about 3 year figures @jonno though personally I go by 5 year figures +.

Aberdeen does have a great track record of managing money in a particular way. You see it in all their Asian/Global/EM trusts and funds.

I think approaching the US market like this is a really appealing idea.

The point that Dice made here about the kind of shares NAIT likes is very true. Look at the under performance of a whole range of Aberdeen funds for confirmation of that.

If the market has changed direction in favour of Aberdeen’s style then the time to get in to this and other Aberdeen investment trusts is now.


#4

Wouldn’t this become less risky and maybe more desirable if it stopped doing Options?

I don’t understand options very well but think it just adds to the risk of what should be a lower risk investment no?

Otherwise I think this has got to be a better way to make money in America, get dividends and reinvest them.


#5

I didn’t think it sounds like a risky trust @Andre, to me it’s less risky unless I’m missing something.


#6

The Options and bonds are only a very small part of what NAIT does as far as I can see. I don’t think ti makes it more risky @Andre because they use options when opportunities arise and for the bond side of things Aberdeen have a lot of resources there.

I’m not sure he has managed the trust for long enough yet but if I was going to invest in an managed American fund I think an income focused one has to be a better option.