Annual Financial Report

RNS Number : 1972V

North American Income Trust (The)

13 April 2021

 

THE NORTH AMERICAN INCOME TRUST PLC

 

ANNUAL FINANCIAL REPORT ANNOUNCEMENT FOR THE YEAR ENDED 31 JANUARY 2021

 

 

INVESTMENT OBJECTIVE

To provide investors with above average dividend income and long term capital growth through active management of a portfolio consisting predominately of S&P 500 US equities. 

FINANCIAL RESULTS AND PERFORMANCE

Financial Headlines

Net asset value total return{AB}		Share price total return{AB}		Revenue return per share
2021	-5.7%	2021	-16.5%	2021	11.79p
2020	+5.5%	2020	+11.5%	2020	11.42p
Dividends per share		Dividend yield{AC}		Ongoing charges{A}
2021	10.00p	2021	4.3%	2021	1.01%
2020	9.50p	2020	3.3%	2020	0.97%
{A}   Considered to be an Alternative Performance Measure (see further below for more information).
{B}   Includes dividends reinvested.
{C}   Calculated as the dividend for the year divided by the year end share price.

Results Summary

	31 January 2021	31 January 2020	% change
Total assets	£411,752,000	£432,913,000	-4.9
Equity shareholders' funds	£375,416,000	£413,948,000	-9.3
Share price (mid market)	234.00p	290.00p	-19.3
Net asset value per Ordinary share	262.48p	288.91p	-9.1
(Discount)/premium (difference between share price and net asset value){AB}	(10.9%)	0.4%
Net (gearing)/cash{A}	(7.4%)	0.9%
Dividends and earnings
Revenue return per share	11.79p	11.42p	+3.2
Dividends per share	10.00p	9.50p	+5.3
Dividend yield (based on year end share price){A}	4.3%	3.3%
Dividend cover{A}	1.18	1.20
Revenue reserves per share
Prior to payment of third and fourth interim dividends	16.49p	14.38p
After payment of third and fourth interim dividends	10.09p	8.28p
Operating costs
Ongoing charges{A}	1.01%	0.97%
{A}   Considered to be an Alternative Performance Measure (see further below for more information).
{B}   Including undistributed revenue.

Performance
	1 year return	3 year return{A}	5 year return{A}
Total return (Capital return plus dividends reinvested)	%	%	%
Share price{B}	-16.5	-1.0	+68.4
Net asset value per share{B}	-5.7	+4.3	+62.8
Russell 1000 Value Index (in sterling terms)	-0.1	+17.9	+71.8
S&P 500 Index (in sterling terms)	+12.6	+44.3	+118.5
{A} Cumulative return
{B} Considered to be an Alternative Performance Measure (see further below for more information).

Dividends

	Rate	xd date	Record date	Payment date
1st Interim dividend 2021	1.80p	16 July 2020	17 July 2020	7 August 2020
2nd Interim dividend 2021	1.80p	1 October 2020	2 October 2020	30 October 2020
3rd Interim dividend 2021	1.90p	4 February 2021	5 February 2021	26 February 2021
Proposed final dividend 2021	4.50p	6 May 2021	7 May 2021	4 June 2021
	_______
Total dividends 2021	10.00p
	_______
1st Interim dividend 2020	1.70p	18 July 2019	19 July 2019	2 August 2019
2nd Interim dividend 2020	1.70p	3 October 2019	4 October 2019	25 October 2019
3rd Interim dividend 2020	1.80p	30 January 2020	31 January 2020	21 February 2020
4th interim dividend 2020	4.30p	7 May 2020	11 May 2020	5 June 2020
	_______
Total dividends 2020	9.50p
	_______

CHAIRMAN'S STATEMENT

In 2012, the Edinburgh US Tracker Trust became The North American Income Trust. Its objective was to produce dividend growth without depleting capital. This has been achieved with the establishment of a satisfactory dividend record: 1.88p per share in 2012 has increased to 10.0p which is recommended for the year to 31 January 2021. The capital has been preserved in real terms over that period. The Managers' approach has proved to be successful and is now well established.

Performance

The US financial markets showed remarkable resilience during 2020 despite the ravages of Covid-19, thanks to the size and strength of the US economy and historic levels of government stimulus. By the Company's year end, the US equity markets had broadly recovered from the severe declines seen at the start of the pandemic.

NAIT does not have a benchmark; the Russell 1000 Value Index is used as the Trust's primary reference index to provide context, while the S&P 500 Index is also monitored by the Board as most of the portfolios' holdings are drawn from its constituents.  The total return performance per share compared to this has been variable: underperforming in the last two years but outperforming over the three years prior to that. Over the 12-month period to 31 January 2021, the Company's net asset value (NAV) total return per share was -5.7% in sterling terms. This underperformed the -0.1% return in sterling terms from the Russell 1000 Value Index and the 12.6% return from the more growth-orientated S&P 500 index.

While the capital return has underperformed the primary reference index, for the year ended 31 January 2021, the revenue return per Ordinary share rose by 3.2% from 11.42p to 11.79p, which compares to the 11.2% decline in the earnings of the Russell 1000 Value Index. The Board is recommending a final dividend per share of 4.5p, which will take the total for dividends for the year to 10.0p, an increase of 5.3% from the previous year.  The proposed final dividend is payable on 4 June 2021, to shareholders on the register on 7 May 2021. The quarterly dividends are paid in August, November, February and June each year.

The total dividend represented a yield of 4.3%, using the share price of 234.0p at the end of the review period on 31 January 2021, compared to the 2.4% yield from the Russell 1000 Value I ndex at that date.

After payment of the final dividend, the undistributed balance of the revenue account will be added to the Company's revenue reserves, which will represent approximately 10.1p per share.  This will provide  flexibility for future years. 

Portfolio

As of 31 January 2021, the portfolio consisted of 39 equity holdings and 7 corporate bonds, with equities representing 96.5% of total assets.  

Total revenue from equity holdings in the portfolio for the financial year was £15.6 million (2020 - £16.3 million).  Most of the Company's equity holdings continued their established record of dividend growth. 73 % of the equity holdings raised their dividends over the past year, with a weighted average increase of 7.4%. Only two companies within the portfolio made dividend cuts during the year.

During the 12-month period ended 31 January 2021, the Company received premiums totalling £5.4 million (2020 - £4.0 million) in exchange for entering into stock option transactions. This option income, the generation of which remains consistent with the Manager's company-focused investment process, represented 25.0% of total income (2020 - 19.1%). As the Company's exposure to corporate bonds has decreased over recent years, interest income from investments was lower and represented 2.5 % of total income (2020 - 2.7%). Bond income and option premiums will remain secondary sources of income in the belief that dividends must remain the overwhelming source of income available for distribution. Further details of the portfolio are shown on pages 25 to 28.

Market & Economic Review

North American equity indices saw mixed performance in sterling terms during the 12-month period ended 31 January 2021. Large-cap value stocks recorded negative returns, significantly lagging their large-cap growth counterparts, which posted notable gains. In February and March 2020, investors' fears surrounding the impact of the worldwide spread of the Covid-19 pandemic on the global economy sent a shockwave through the US and global financial markets. Following the market sell-off during this period, the US Federal Reserve (Fed) reduced its benchmark interest rate by 1.00 % to a range of 0.0% to 0.25% in March 2020.  The central bank also maintained the pace and composition of bond purchases. US stocks rallied sharply over much of the second half of the year reporting period as investors gained more comfort in an improving macroeconomic backdrop. The market shift to "risk-on" mode was also due to the initial rollout of Covid-19 vaccines. Additionally, US corporate earnings continued to show signs of improvement, with results for  2020 coming in much better than expected, leading to rising estimates for 2021.

US GDP grew at an annualised rate of 4.0% in the fourth quarter of 2020, following a rebound of 33.4% in the previous three-month period. The coronavirus was the major influence  on US GDP in the first half of 2020, as the economy contracted by margins of 5.0% and 31.4% in the first and second quarters, respectively. US payrolls declined by an aggregate of 9.6 million over the 12-month period ended 31 January 2021, and the unemployment rate reached a peak of 14.8% in April 2020, before falling to 6.3% at the end of the period.

Management of Premium and Discount

During the year the discount has shown greater volatility than we have seen for at least the last 5 years. Much of this volatility occurred in late February/March 2020 as the awareness of the impact on financial markets of the Covid pandemic began to spread. The share price moved from trading at a premium of around 3% to a discount of over 11% within four weeks. From mid-March there was brief respite in the discount, through to June 2020 from which point the discount started to drift out as there was more semblance of normality in markets. In the US, this manifested itself in the continued rise of growth stocks. Against such a backdrop, the portfolio lagged and the share price reflected this. When vaccines started to be rolled out, we have seen a rotation towards value and the discount narrowed from over 15% in late October to 7% at the end of 2020.

The Company's share price fell by 19.3% to 234.0p and ended the year at a 10.9% discount to the net asset value, compared with a 0.4% premium at the end of the 2020 financial year. During the year to 31 January 2021, 248,374 Ordinary shares were purchased for cancellation. Since 31 January 2021, the Company has purchased a further 594,508 Ordinary shares.  At 8 April 2021, the NAV was 297.15p and the share price was 264p, equivalent to a discount of 11.2% per Ordinary share. 

Gearing

The Board believes that sensible use of gearing should enhance returns to our shareholders over the longer term and that the normal position for NAIT is to be geared. In December 2020, the Company entered into a long-term financing agreement for US$50 million with MetLife comprising two loans of US$25 million with terms of 10 and 15 years at an all in cost of 2.70% and 2.96% respectively, giving a blended rate for the next 10 years of 2.83%. The Board believes this represents very attractive terms and will benefit the Company's shareholders over the coming years.  As a result, net gearing at 31 January 2021 stood at 7.4% (31 January 2020: net cash of 0.9%).

The Board

The Board reviews its composition and considers its succession policy regularly. I intend to retire at the end of 2021. In determining my successor, the Directors have independently considered the skills and qualities required of the Chairman. In light of this, I am delighted to report that Susan Rice has indicated her willingness to succeed the role upon my retirement.

Management fees

I am pleased to report that we have negotiated a change in the basis on which the management fee is calculated. From 1 May 2021 the value of the assets that will be subject to highest tier of fees, of 0.75%, will be reduced from £350m to £250m. Assuming that net assets remain greater than £350m, this will save the Company £150,000 per year and will mean that the Company's fees are among the most competitive in the peer group.

Outlook

The Democratic Party now holds the presidency and slim majorities in both the House of Representatives and the Senate. In the short term, we believe that this electoral outcome opens the door to further fiscal policy support and a more coordinated US government approach aimed at combating the Covid-19 crisis. Looking out further, we think that the Democrats now have the ability to pass a broader legislative agenda, with higher spending on a range of entitlements, partly financed by higher personal and corporate taxes as well as infrastructure investments including "green infrastructure. The Chairman of the Fed commented that his top concern - even greater than inflation - is the economy falling short of a full recovery even with increased prospects for fiscal support from the new administration. Given that the Fed is still a long way from meeting its stated employment and inflation objectives, we see his stance as pointing to a continuation of present monetary policy. We expect some reversion to normality in the wake  of the pandemic , while fiscal policy should provide a robust consumer backstop as well as supplying generous local aid to states. Inflation remains a risk, but given the slack in the economy, it appears contained at this point. Given the shortage of income- producing securities, we believe that our portfolio of progressive dividend-paying equities of high-quality companies is an efficient way to outpace inflation over the long run.

Annual General Meeting ("AGM")

The Company's AGM will be held on 1 June 2021, at the Manager's office at St Andrew Square, Edinburgh.  As you will be aware, attendance at last year's AGM was restricted to the minimum requirements in order to adhere to Government guidelines in place at that time.

As at the date of this report, restrictions on gatherings and social distancing measures remain in place and, given the ongoing uncertainty and visibility on the level of Government guidelines in early June, the Board has again decided to proceed with this year's AGM by limiting attendance again to the minimum quorum requirements.  In the unlikely event of the situation changing, the Company will update shareholders through an announcement to the London Stock Exchange and on the Company's website and we therefore encourage shareholders to check for such updates.

The Board strongly advises that no shareholders should expect to attend the AGM in person and instead exercise their votes in respect of the meeting in advance, by completing and returning their proxy forms. This will ensure that their votes are registered. Shareholders are also invited to address any questions to the company secretary via email to [e-mail]. The Board is aware that many shareholders welcome the views of the Manager and perhaps particularly this year, given the uncertainties that lie ahead. A presentation from the Manager will be uploaded to the Company's website on the day of the AGM for shareholders to view.

Shareholders will note that one of the resolutions being proposed at this AGM is an amendment to the Company's articles of association to allow for, amongst other matters, virtual shareholder meetings to be held and conducted in a manner that allows those not present to attend, speak and vote at meetings by electronic means.

While the Board does not have any present intention to hold meetings in this way, it will allow the Company to utilise this option where a physical meeting would not be in the best interests of shareholder safety. It will also facilitate shareholder attendance in situations where shareholders are prevented, through laws or regulations, from attending at a physical location. It is important to note that the amendments do not prevent the Company from holding physical meetings and the Board's intention is always to hold a physical AGM provided it is both safe and practical to do so.

Continuation Vote

NAIT is obliged to have a continuation vote every three years and the next one is at this AGM. The Directors will be voting in favour of continuation and would encourage shareholders to do likewise in the belief that the Company has a successful long-term investment formula.

James Ferguson

Chairman

12 April 2021

INVESTMENT MANAGER'S REVIEW

Market review

Major North American equity indices saw mixed performance in sterling terms during the 12-month period ended 31 January 2021. Large-cap value stocks recorded negative returns, significantly lagging their large-cap growth counterparts, which posted notable gains. In February and March 2020, investors' fears surrounding the impact of the worldwide spread of the Covid-19 pandemic on the global economy sent a shockwave through the US and global financial markets. Following the market sell-off during this period, US stocks rallied sharply over much of the second half of the reporting period as investors gained more comfort in an improving macroeconomic backdrop given more widespread "reopenings." The market shift to "risk-on" mode was also due to the initial rollout of Covid-19 vaccines and the increasing likelihood that 2021 will bring a sense of economic normalcy. Additionally, US corporate earnings continued to show signs of improvement, with results for the 2020 reporting season coming in much better than expected, leading to rising estimates for 2021.

The Russell 1000 Value Index, the Company's primary reference index, returned -0.1% in sterling terms for the fiscal year as the energy, real estate and utilities sectors posted double-digit losses and were the primary market laggards.  Conversely, the materials healthcare and consumer discretionary sectors garnered double-digit gains and were the strongest performers within the index.

In response to the market carnage, the US Federal Reserve (Fed) reduced its benchmark interest rate by 100 basis points to a range of 0.0% to 0.25% in March 2020, and has continued to maintain this zero-bound rate through the end of the year. The central bank also maintained its current pace and composition of bond purchases. In a statement issued following its January 2021 meeting, several Fed members expressed optimism regarding US economic growth given increased fiscal stimulus and the Covid-19 vaccine rollout. 

In economic news, US GDP grew at an annualised rate of 4.0% in the fourth quarter of 2020, following a rebound of 33.4% in the previous three-month period. The coronavirus had wreaked havoc on US GDP in the first half of 2020, as the economy contracted by margins of 5.0% and 31.4% in the first and second quarters, respectively. US payrolls declined by an aggregate of 9.6 million over the 12-month period ended 31 January 2021, and the unemployment rate reached a peak of 14.8% in April 2020, before falling to 6.3% at the end of the period.

Performance

The Trust underperformed the Russell 1000 Value Index over the 12-month period ended 31 January 2021. The portfolio returned -4.1% in sterling terms on a gross basis before expenses versus the -0.1% return of the reference index. The Company's NAV total return for the financial year was -5.7%. The total revenue generated in the year increased by 1.8% on 2020 and remains in good shape, building upon the record established in prior years.

The Trust's underperformance relative to the reference index for the review period was attributable mainly to an underweight allocation to the communication services sector, as well as stock selection in utilities and consumer staples. The primary detractors from performance included financial services company Citigroup; oilfield services provider Schlumberger Ltd.; and Ohio-based regional utility FirstEnergy Corp. Citigroup entered a consent order with US regulators in which the company agreed to pay a fine and fix the  deficiencies in its risk management systems.  CEO Michael Corbat retired from the Board and was succeeded by Jane Fraser - the first female CEO to lead a major U.S. bank - in March 2021. Shares of Schlumberger declined along with the oil price over the review period. We exited the Trust's position in the company in May 2020. Shares of FirstEnergy Corp. sold off after the US government alleged that the company had contributed to a non-profit political action committee in exchange for government subsidies for nuclear power plants owned by its former subsidiary, FirstEnergy Solutions. We subsequently sold the Trust's shares in the company in October 2020.

An underweight position in the utilities sector and stock selection in the technology sector aided the Company's performance for the review period. The largest individual stock contributors were pharmaceutical firm Abbvie; transportation and logistics company United Parcel Service; and financial services company JPMorgan Chase & Co. Abbvie posted strong results in 2020 bolstered by strength in its Immunology Portfolio and Hematologic Oncology segments. UPS saw healthy year-over-year revenue and earnings growth for the second quarter of its 2020 fiscal year as improving pricing power helped drive revenues and reinforce their supply chain strength. However, following a period of strong share-price performance we subsequently exited the Trust's position in UPS in December 2020.

Portfolio activity

The Trust's investments remained consistent with our high-quality, cash-generative stock selection process although market volatility allowed for the opportunity to even further upgrade portfolio quality. We initiated equity positions in Home Depot, the largest home improvement retailer in the US; financial services company PNC Financial Services (which we later exited in September 2020 following a divestiture of its 22% stake of investment manager BlackRock); regional utility FirstEnergy Corp.; diversified energy company Phillips 66; technology-focused REIT Digital Realty Trust; consumer products maker Procter & Gamble; industrial conglomerate Honeywell International; corporate and "net-centric" customers internet services provider Cogent Communications; financial services company JPMorgan; oil and gas company ConocoPhillips; aerospace and defence contractor L3Harris Technologies; diversified media company Comcast Corp.; industrial gas supplier Air Products & Chemicals; regional utility CMS Energy; and chemical manufacturing company FMC Corp.

Conversely, in addition to Schlumberger, UPS, FirstEnergy Corp. and PNC Financial Services as previously noted, we exited positions in brewer Molson Coors; regional bank Umpqua Holdings; paper manufacturer International Paper; specialty carbon products maker Orion Engineered Carbons; financial services company Truist Financial; diversified media company Meredith Corp.; oil and gas company Chevron Corp.; luxury goods retailer Tiffany & Co.; specialty chemicals producer Dow Inc.; and steel producer Nucor Corp.  A sector analysis chart of the portfolio can be found on page 28 of the published 2021 Annual Report.

Within the Trust's corporate bond portfolio over the review period, we initiated positions in in CSC Holdings; Valeant Pharmaceuticals; Marriott International; Six Flags Theme Parks; and Rattler Midstream. We exited the Trust's positions in Bausch Health Americas; Parsley Energy Finance; and Cheniere Corp. We continue to work closely with Aberdeen Standard Investments' fixed income specialists to monitor credits and market conditions.

Dividend growth

The Trust's holdings continue to build upon an established track record of dividend growth. Four companies announced double-digit increases over the review period, including semiconductor manufacturer Texas Instruments and derivatives exchange operator CME Group, each of which raised its quarterly payout by 13%; industrial gas supplier Air Products and Chemicals boosted its dividend by 12%; and pharmaceutical firm Abbvie announced a 10% increase in its dividend. 

In April 2020, gaming-focused REIT Gaming & Leisure Properties (GLPI) was forced to temporarily close all of the casino buildings that it owns in compliance with state government directives in response to the COVID-19 pandemic. Consequently, the company cut its dividend by 14%. GLPI subsequently reopened all but one of its casino properties by the autumn of 2020, and by the end of the year received all rent paid in full.

Outlook

As Covid-19 vaccine rollouts gain momentum and Congress approved another round of stimulus, we feel that the US economy now appears set to deliver meaningful acceleration in growth moving through 2021. The combination of the re-opening of the economy and generous fiscal policy has prompted concerns in the market about the economy overheating and a pickup in inflation, reflected in a sharp rise in longer-term US Treasury yields. We believe these concerns are overstated given the slack that remains in the economy, which in practice will take time to tighten sufficiently to generate the above-inflation targets that the US Federal Reserve (Fed) seeks to act more quickly on interest rates. The Fed has already commented that it is happy to look through several near term "snap-back" items which might drive higher inflation data, and for now we believe that the Fed likely will push back on creeping expectations of a more accelerated rate-hike timeline. The surfacing of inflation fears drove a continued substantial rotation within equities; structurally growing companies which had benefited from market confidence that they could withstand the pandemic saw their valuation multiples contract, while the market significantly bid up the stock prices of companies with apparent exposure to "normalisation."

Looking forward, we see several distinct drivers which we believe will influence stocks. First, we expect large-scale stimulus from the administration of US President Joe Biden to serve as a broad-based demand accelerator. Secondly, as evidenced by recent retail sales data, consumers remain in relatively good standing, buoyed by ongoing fiscal support, a condition that we anticipate will persist absent a new surge in Covid-19 cases. We are keeping a close eye on household balance sheets and the implications of high cash balances for both potential consumption and deleverage. Finally, what gives us more comfort is that corporate fundamentals remain relatively robust and companies across sectors have indicated a willingness to continue to invest aggressively in their businesses given strengthening demand.

Aberdeen Asset Management Inc.**

12 April 2021

**  on behalf of Aberdeen Standard Fund Managers Limited.  Both companies are subsidiaries of Standard Life Aberdeen plc.

OVERVIEW OF STRATEGY

Introduction

The Company is an investment trust and its Ordinary shares are listed on the premium segment of the London Stock Exchange. The Company aims to attract long term private and institutional investors wanting to benefit from the income and growth prospects of North American companies. The Directors do not envisage any change in the Company's activity in the foreseeable future. 

Investment Objective and Purpose

To provide investors with above average dividend income and long term capital growth through active management of a portfolio consisting predominately of S&P 500 US equities.

Reference Index

The Board reviews performance against relevant factors, including the Russell Value Index 1000 (in sterling terms) and the S&P 500 Index (in sterling terms) as well as peer group comparisons. The aim is to provide investors with above average dividend income from predominantly US equities which means that investment performance can diverge, possibly quite materially in either direction, from these indices.

Investment Policy

The Company invests in a portfolio predominantly comprised of S&P 500 constituents. The Company may also invest in Canadian stocks and US mid and small capitalisation companies to provide for diversified sources of income. The Company may invest up to 20% of its gross assets in fixed income investments, which may include non-investment grade debt.  The Company's investment policy is flexible, enabling it to invest in all types of securities, including (but not limited to) equities, preference shares, debt, convertible securities, warrants, depositary receipts and other equity-related securities.

The maximum single investment will not exceed 10% of gross assets at the time of investment and it is expected that the portfolio will contain around 50 holdings (including fixed income investments), with an absolute minimum of 35 holdings.  The composition of the Company's portfolio is not restricted by minimum or maximum market capitalisation, sector or country weightings.

The Company may borrow up to an amount equal to 20% of its net assets.

Subject to the prior approval of the Board, the Company may also use derivative instruments for efficient portfolio management, hedging and investment purposes. The Company's aggregate exposure to such instruments for investment purposes (excluding collateral held in respect of any such derivatives) will not exceed 20% of the Company's net assets at the time of the relevant acquisition, trade or borrowing.

The Company does not generally intend to hedge its exposure to foreign currency. The Company will not acquire securities that are unlisted or unquoted at the time of investment (with the exception of securities which are about to be listed or traded on a stock exchange). However, the Company may continue to hold securities that cease to be listed or quoted, if appropriate.

The Company may participate in the underwriting or sub-underwriting of investments where appropriate to do so.

The Company may invest in open-ended collective investment schemes and closed-ended funds that invest in the North American region. However, the Company will not invest more than 10%, in aggregate, of the value of its gross assets in other listed investment companies (including listed investment trusts), provided that this restriction does not apply to investments in any such investment companies which themselves have stated investment policies to invest no more than 15% of their gross assets in other listed investment companies.

The Company will normally be substantially fully invested in accordance with its investment objective but, during periods in which changes in economic conditions or other factors so warrant, the Company may reduce its exposure to securities and increase its position in cash and money market instruments.

Management

The Board has appointed Aberdeen Standard Fund Managers Limited ("ASFML" or "Manager") to act as the alternative investment fund manager ("AIFM" or "Manager").

The Directors are responsible for determining the investment policy and the investment objective of the Company.  The Company's portfolio is managed on a day-to-day basis by Aberdeen Asset Management Inc. ("AAMI" or "Investment Manager") by way of a delegation agreement in place between ASFML and AAMI.

The Investment Manager invests in a range of North American companies, following a bottom-up investment process based on a disciplined evaluation of companies through direct visits by its fund managers. Stock selection is the major source of added value, concentrating on quality first, then price. Top-down investment factors are secondary in the Investment Manager's portfolio construction, with diversification rather than formal controls guiding stock and sector weights.

Key Performance Indicators ("KPIs")

The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and determining the progress of the Company in pursuing its investment policy.  The main KPIs identified by the Board in relation to the Company which are considered at each Board meeting are as follows:

KPI	Description
Net asset value and share price performance against the reference indices	The Board reviews the Company's NAV and share price total return performance against the reference indices, the Russell 1000 Value and the S&P 500 (both in sterling terms).  Performance graphs and tables are provided on pages 15 to 17 of the published 2021 Annual Report . The Board also reviews the performance of the Company against its peer group of investment trusts with similar investment objectives.
Revenue return and dividend yield	The Board monitors the Company's net revenue return and dividend yield through the receipt of detailed income forecasts. A graph showing the dividends and yields over 5 years is provided on page 15 of the published 2021 Annual Report .
Discount/premium to net asset value	The discount/premium relative to the net asset value per share is closely monitored by the Board. A graph showing the share price discount/premium relative to the net asset value is shown on page 17 of the published 2021 Annual Report .
Ongoing charges	The Company's ongoing charges ratio (OCR) is provided above.  The Board reviews the OCR against its peer group of investment trusts with similar investment objectives.

 

Principal Risks and Uncertainties

There are a number of risks which, if realised, could have a material adverse effect on the Company and its business model, financial position, performance and prospects. The Board has in place a robust process to identify, assess and monitor the principal risks and uncertainties facing the Company and to identify and evaluate newly emerging risks.  This process is supported by the adoption of a risk matrix which identifies the key risks for the Company, including emerging risks, and covers strategy, investment management, operations, shareholders, regulatory and financial obligations and third party service providers. This risk matrix is reviewed on a regular basis.  A summary of the principal risks and uncertainties facing the Company, which have been identified by the Board, is set out in the table below, together with a description of the mitigating actions it has taken.

The principal risks associated with an investment in the Company's shares are published monthly in the Company's factsheet or they can be found in the pre-investment disclosure document ("PIDD") published by the Manager, both of which are on the Company's website.

Description	Mitigating Action
Market Risk The risks facing the Company relate to the Company's investment activities and include market risk (comprising interest rate risk and other price risk), liquidity risk and credit risk. The Company is exposed to the effect of variations in share prices and movements in the US$/£ exchange rate due to the nature of its business.  A fall in the market value of its portfolio would have an adverse effect on shareholders' funds. Any debt securities that may be held by the Company will be affected by general changes in interest rates that will in turn result in increases or decreases in the market value of those instruments.	The day-to-day management of the Company's assets has been delegated to the Manager under investment guidelines determined by the Board. The Board monitors these guidelines and receives regular reports from the Manager which include performance reporting.  The Board regularly reviews these guidelines to ensure they remain appropriate. Details on financial risks, including market price, liquidity and foreign currency risks and the controls in place to manage these risks are provided in note 18 to the financial statements.
Pandemic or Systemic shock The Company is exposed to stockmarket volatility or illiquidity as a result of major market shock due to a national or global crisis such as a pandemic, war, natural disaster or similar.  The resulting impact of disruption on the operations of the Company and its service providers, temporarily or for prolonged duration.	The Board is cognisant of the risks arising from the outbreak and spread of the Covid-19 around the world, including stockmarket instability and longer term economic effects,  and the impact on the operations of the third-party suppliers, including the Manager. The Manager assesses and reviews the investment risks arising from Covid-19 on the companies in the portfolio, including but not limited to: employee absence, reduced demand, supply chain breakdown, balance sheet strength, ability to pay dividends, and takes the necessary investment decisions. The Manager has regular communications with the underlying investee companies in order to navigate and guide the Company through the current challenges . The Manager has business continuity procedures in place to ensure that they are able to continue to service their clients, including investment trusts. The services from third parties, including the Manager, have continued to be supplied effectively during the Covid-19 crisis and the Board will continue to monitor services through regular updates from the Manager.
Income and Dividend Risk The ability of the Company to pay dividends and any future dividend growth will depend primarily on the level of income received from its investments (which may be affected by currency movements, exchange controls or withholding taxes imposed by jurisdictions in which the Company invests) and the timing of receipt of such income by the Company. Accordingly, there is no guarantee that the Company's dividend income objective will continue to be met and the amount of the dividends paid to Ordinary shareholders may fluctuate and may go down as well as up.	The Board monitors this risk through the regular review of detailed revenue forecasts and considers the level of income at each meeting. The Company has built up its revenue reserves over recent years which provides flexibility in future years, should the dividend environment become challenging.
Operational Th e Company is reliant on services provided by third parties (in particular those of the Manager). Failure by any service provider to carry out its contractual obligations could expose the Company to loss or damage and have a detrimental impact on the Company operations.	Written agreements are in place defining the roles and responsibilities of all third party service providers.  The Board reviews reports on the operation and efficacy of the Manager's risk management and control systems, including those relating to cyber crime, and its internal audit and compliance functions. The Manager monitors the control environment and quality of services provided by other third party service providers through due diligence reviews, service level agreements, regular meetings and key performance indicators.  The Board review reports on the Manager's monitoring of third party service providers on a periodic basis.
Regulatory Risk Changes to, or failure to comply with, relevant regulations (including the Companies Act, The Financial Services and Markets Act, The Alternative Investment Fund Managers Directive, accounting standards, investment trust regulations, the Listing Rules, Disclosure Guidance and Transparency Rules and Prospectus Rules) could result in fines, loss of reputation, reduced demand for the Company's shares and potentially loss of an advantageous tax regime.	The Directors have an awareness of the more important regulations and are provided with information on changes by the Association of Investment Companies, as well as the Manager. The Manager provides six-monthly reports to the Audit Committee on its internal control systems, which monitors compliance with relevant regulations.  In addition, the Board, when necessary will use the services of its professional advisers to monitor compliance with regulatory requirements. The Manager and depositary provide reports to the Audit Committee on their operations to ensure that the regulations under the AIFM are complied with. The Manager has implemented procedures to ensure that the provisions of the Corporation Tax Act 2010 are not breached and the results are reported to the Board.
Gearing Risk Gearing is used to leverage the Company's portfolio in order to enhance returns where and to the extent this is considered appropriate to do so. Gearing has the effect of accentuating market falls and market gains. The ability of the Company to meet its financial obligations, or an increase in the level of gearing, could result in the Company becoming over-geared or unable to take advantage of potential opportunities and result in a loss of value to the Company's shares.	In order to manage the level of gearing, the Board has set a maximum gearing ratio of 20% of net assets.  The Board receives regular updates from the Manager on the Company's net gearing levels and its compliance with loan covenants.  As at 31 January 2021 the Company had £36.3 million of borrowings and net gearing was 7.4% at the year end.
Discount volatility Investment company shares can trade at discounts to their underlying net asset values, although they can also trade at premia.	In order to seek to minimise the impact of share price volatility, where the shares are trading at a significant discount, the Company has operated a share buyback programme for a number of years. The Board monitors the discount level of the Company's shares and will exercise discretion to undertake shares buybacks.
Derivatives The Company uses derivatives primarily to enhance the income generation of the Company.	The risks associated with derivatives contracts are managed within guidelines set by the Board.
Potential Impact of ESG Investment Principles Applying ESG and sustainability criteria in the investment process may result in the exclusion of assets in which the Company might otherwise invest. The Manager also monitors and responds to ESG and sustainability risks at portfolio companies as they evolve over time. This may have a positive or negative impact on performance.	The Board supports and encourages the ESG analysis incorporated by the Manager as part of its investment decision making process and understands that over the short-term companies with weak ESG compliance may appear to perform strongly.  Over the longer-term, the Board believes that companies with stronger ESG focus will outperform.  The Manager also actively engages with investee companies in relation to ESG and sustainability issues that it deems material.

In addition to these risks, the Company is exposed to the effects of geopolitical instability or change which could have an adverse impact on stockmarkets and the Company's portfolio.  In carrying out the assessment, the Board considered the uncertainty arising from the end of the transition period on 31 December 2020 for the UK leaving the EU ("Brexit"), principally in relation to the potential impact of Brexit on currency volatility and the Manager's operations.  Aberdeen Standard Investments has a significant Brexit program in place aimed at ensuring that they can continue to satisfy their clients' investment needs post Brexit. Overall, the Board does not expect the Company's business model, over the longer term, to be materially affected by Brexit. 

In all other respects, the Company's principal risks and uncertainties have not changed materially since the year end.

Promoting the Success of the Company

The Board is required to report on how it has discharged its duties and responsibilities under section 172 of the Companies Act 2006 (the "s172 Statement").  Under section 172, the Directors have a duty to promote the success of the Company for the benefit of its members as a whole, taking into account the likely long term consequences of decisions, the need to foster relationships with the Company's stakeholders and the impact of the Company's operations on the environment.

The Company consists of five Directors and has no employees or customers in the traditional sense. As the Company has no employees, the culture of the Company is embodied in the Board of Directors.  The Board seeks to promote a culture of strong governance and to challenge, in a constructive and respectful way, the Company's advisers and other stakeholders.

The Board's principal concern has been, and continues to be, the interests of the Company's shareholders and potential investors. The Manager undertakes an annual programme of meetings with the largest shareholders and investors and reports back to the Board on issues raised at these meetings.  The Investment Manager, who is based in the Manager's Philadelphia office, will attend such meetings. The Board encourage all shareholders to attend and participate in the Company's AGM in normal circumstances and can contact the Directors via the Company Secretary.  Shareholders and investors can obtain up-to-date information on the Company through its website and the Manager's information services and have direct access to the Company through the Manager's customer services team or the Company Secretary.  As the normal format of the 2020 AGM was not able to take place due to the Covid-19 restrictions in place, a number of podcasts by the Manager were made available on the Company's website for shareholders to access. 

As an investment trust, a number of the Company's functions are outsourced to third parties.  The key outsourced function is the provision of investment management services to the Manager and other stakeholders support the Company by providing secretarial, administration, depositary, custodial, banking and audit services.

The Board undertakes a robust evaluation of the Manager, including investment performance and responsible ownership, to ensure that the Company's objective of providing sustainable income and capital growth for its investors is met.  The Board typically visits the Manager's offices in the US on a bi-annual basis.  This enables the Board to conduct due diligence of the fund management and research teams. The portfolio activities undertaken by the Manager on behalf of the Company can be found in the Manager's Review and details of the Board's relationship with the Manager and other third party providers, including oversight, is provided in the Statement of Corporate Governance. 

Key decisions and actions during the year to 31 January 2021, which required the Directors to have greater focus on stakeholders included: 

Gearing

During the course of the financial year, the Company continued to utilise its $75 million loan facility with Scotia Ireland which was in place until December 2020. Prior to the expiration of the loan facility, the Board undertook a review of the Trust's gearing strategy and options concluded that gearing was as one of the principal advantages of the Company's investment trust structure and that the ability to gear for the long term should help enhance long-term total returns for shareholders.   This resulted in the decision to issue $50 million of unsecured loan notes comprising $25 million 10 year debt and $25 million 15 year debt. 

Dividends paid to shareholders

Subject to shareholder approval of the proposed final dividend, the Company paid a total dividend of 10.0p for the financial year, representing an increase of 5.3% compared to the previous year.  2020 was a period of great uncertainty, when many companies, particularly within the UK, either cut or cancelled their dividends.  The Board recognises the importance of dividends to shareholders and after careful review of the Company's revenue forecasts and the investment outlook with the Manager, the dividend was increased in line with the Company's objective of above average income growth as well as reflecting the Company's financial position. 

Management of the portfolio

As in previous years, the Board focused on the performance of the Manager in achieving the Company's investment objective within an appropriate risk framework.  Following the emergence of the Covid-19 crisis in the Spring of 2020, there was increased interaction between the Board and the Manager to consider the impact on the Company (including portfolio activity, risks and opportunities, gearing , revenue forecasts and the operations of third party providers) to ensure that the Company had sufficient resilience in its portfolio and operational structure to meet the challenged circumstances. 

Directorate

The Board's succession and refreshment policies were reviewed during the year. The stability of a Board during one of the most challenging periods was considered an important factor and, as such, no changes were made to the Board composition during the financial year . The Board is, however, mindful of the importance of having a suitable succession plan.  James Ferguson will retire from the Board at that point and will be succeeded by Susan Rice, who has served on the Board since 2015. 

Third party service providers

Following a review by the Management Engagement committee, the Board was satisfied with the performance of the Manager and its key service providers.  Despite the many challenges arising from the Covid-19 pandemic, the Company continued to receive 'BAU' service with minimal disruption.

The Board is supportive of the Manager's philosophy that Environmental, Social and Governance (ESG) factors are fundamental components to evaluate when investing.  ESG considerations are embedded in the investment process undertaken by the Manager and the Manager dedicates a significant amount of time and resource on focusing on the ESG characteristics of the companies in which they invest.  Further details of the Manager's ESG engagement are provided on pages 20 to 23 of the published 2021 Annual Report .   

The Manager is also a tier 1 signatory of the UK Stewardship Code which aims to enhance the quality of engagement by investors with investee companies in order to improve their socially responsible performance and the long term investment return to shareholders.

The Company is a long term investor and the Board has in place the necessary procedures and processes to continue to deliver the Company's investment proposition and to promote the long term success of the Company for the benefit of its shareholders and stakeholders. 

Duration

The Company does not have a fixed winding-up date, but shareholders are given the opportunity to vote on the continuation of the Company every three years at the Annual General Meeting.  The next continuation vote will be at the forthcoming AGM in June 2021.

Board Diversity

The Board recognises the importance of having a range of skilled, experienced individuals with the appropriate knowledge in order to allow the Board to fulfil its obligations.  At 31 January 2021 the Board consisted of two men and three women with diverse and relevant expertise and perspectives. 

Environmental, Social and Human Rights Issues

The Company has no employees as the Board has delegated day to day management and administrative functions to Aberdeen Standard Fund Managers Limited. There are therefore no disclosures to be made in respect of employees. The Company's socially responsible investment policy is outlined below.

Global Greenhouse Gas Emissions and Streamlined Energy and Carbon Reporting ("SECR")

All of the Company's activities are outsourced to third parties. The Company therefore has no greenhouse gas emissions to report from the operations of its business, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013.  For the same reasons as set out above, the Company considers itself to be a low energy user under the SECR regulations and therefore is not required to disclose energy and carbon information.

Viability Statement

The Company does not have a formal fixed period strategic plan but the Board does formally consider risks and strategy on at least an annual basis. The Board considers the Company to be a long term investment vehicle but for the purposes of this Viability Statement has decided that a period of three years is an appropriate period over which to report. The Board considers that this period reflects a balance between looking out over a long term horizon and the inherent uncertainties of looking out further than three years.

In assessing the viability of the Company over the review period the Directors have focused upon the following factors:

-  The ongoing relevance of the Company's investment objective in the current environment and recent feedback from the Company's brokers and shareholders, where available;

-  The continuation vote to be put to shareholders at the AGM in June 2021.  The Directors recommend that shareholders vote to approve the resolution, and that the Company should continue in existence;

-  The principal risks detailed in the strategic report above and the steps taken to mitigate these risks.  In particular, the Board has considered the operational ability of the Company to continue in the current environment which has been impacted by the global COVID 19 pandemic and the ability of the key third party suppliers to continue to provide essential services to the Company.  Third party services have continued to be provided effectively;

-  The Company is invested in readily realisable listed securities; recent stress testing has confirmed that shares can be easily liquidated, despite the more uncertain and volatile economic environment;

-  The level of revenue surplus generated by the Company and its ability to achieve the dividend policy. The Company has continued to deliver dividend growth whilst building up revenue reserves (see above) which can be used to top up the dividend in tougher times:

-  The level of gearing is closely monitored by the Board and Manager.  Covenants are actively monitored and there is adequate headroom in place; and

-  The availability of long term gearing facilities. The Company's gearing comprises $25 million 10 year loan notes (until December 2030) and $25 million 15 year loan notes  (until December 2035). 

- 

Accordingly, taking into account the Company's current position and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report. In making this assessment, the Board has considered that matters such as significant economic or stockmarket volatility (including those as a result of a greater than anticipated economic impact of the spread of the coronavirus), a substantial reduction in the liquidity of the portfolio, or changes in investor sentiment could have an impact on its assessment of the Company's prospects and viability in the future.

James Ferguson

Chairman

12 April 2021

PORTFOLIO INVESTMENTS

Ten Largest Investments

As at 31 January 2021

Abbvie		Bristol-Myers Squib
AbbVie Inc. researches and develops pharmaceutical products. The company produces pharmaceutical drugs for speciality therapeutic areas such as immunology, chronic kidney disease, hepatitis C, woman's health, oncology and neuroscience.		Bristol-Myers Squibb Company is a global biopharmaceutical company. The Company develops, licenses, manufactures, markets, and sells pharmaceutical and nutritional products.
Philip Morris		Citigroup
Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes and other tobacco products.		Citigroup Inc. is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers.
CMS Energy		Verizon Communication
CMS Energy Corporation is an energy company. The Company, through its subsidiaries, provides electricity and natural gas to its customers. CMS Energy also invests in and operates non-utility power generation plants in the United States and abroad.		Verizon Communications Inc., through its subsidiaries, provides communications information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide.
JPMorgan Chase & Co.		Medtronic
JPMorgan Chase & Co. provides global financial services and retail banking. The Company provides services such as investment banking, treasury and securities services, asset management, private banking, card member services, commercial banking, and home finance.		Medtronic, PLC develops therapeutic and diagnostic medical products for a wide range of conditions, diseases and disorders.
TC Energy		Gilead Sciences
TC Energy Corp is the parent company of TransCanada PipeLines Limited. The Company is focused on natural gas transmission and power services.		Gilead Sciences, Inc. is a research-based biopharmaceutical company that discovers, develops, and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases.

Investment Portfolio
As at 31 January 2021
		Valuation	Total	Valuation
	Industry	2021	assets	2020
Company	classification	£'000	%	£'000
Abbvie	Biotechnology	22,389	5.5	12,293
Bristol-Myers Squib	Pharmaceuticals	17,894	4.4	19,102
Philip Morris	Tobacco	17,401	4.2	18,821
Citigroup	Banks	16,892	4.1	22,579
CMS Energy	Multi-Utilities	16,569	4.0	-
Verizon Communication	Diversified Telecommunication Services	15,948	3.9	15,331
JPMorgan Chase & Co.	Banks	14,992	3.6	-
Medtronic	Health Care Equipment & Supplies	14,593	3.5	8,757
TC Energy	Oil, Gas & Consumable Fuels	14,060	3.4	12,488
Gilead Sciences	Biotechnology	13,376	3.3	11,986
Ten largest investments		164,114	39.9
Omega Healthcare Investors	Equity Real Estate Investment Trusts (REITs)	13,188	3.2	9,547
Cisco Systems	Communications Equipment	12,986	3.2	12,206
Honeywell	Industrial Conglomerates	12,093	2.9	-
Digital Realty	Equity Real Estate Investment Trusts (REITs)	10,483	2.5	-
Comcast	Media	10,107	2.5	-
Home Depot	Specialty Retail	9,861	2.4	-
Hanesbrands	Textiles, Apparel & Luxury Goods	8,908	2.2	10,438
Phillips 66	Oil, Gas & Consumable Fuels	8,887	2.1	-
ConocoPhillips	Oil, Gas & Consumable Fuels	8,745	2.1	-
Blackstone	Capital Markets	8,563	2.1	4,633
Twenty largest investments		267,935	65.1
Restaurant Brands International	Hotels, Restaurants & Leisure	8,404	2.0	10,414
Cogent Communications	Diversified Telecommunication	8,295	2.0	-
American International	Insurance	8,179	2.0	8,769
L3 Harris Technologies	Aerospace & Defense	8,118	2.0	-
Gaming & Leisure Properties	Equity Real Estate Investment Trusts (REITs)	7,978	1.9	14,339
Air Products & Chemicals	Chemicals	7,770	1.9	-
CME Group	Capital Markets	7,279	1.8	13,176
Coca-Cola	Beverages	7,013	1.7	13,291
Genuine Parts	Distributors	6,837	1.7	7,098
Regions Financial	Banks	6,813	1.6	11,812
Thirty largest investments		344,621	83.7
Huntington Bancshares	Banks	6,742	1.6	11,324
Procter & Gamble	Household Products	6,536	1.6	-
UnitedHealth	Health Care Providers & Services	6,073	1.5	5,167
FMC	Chemicals	5,914	1.4	-
Royal Bank of Canada	Banks	5,900	1.4	8,998
Lockheed Martin	Aerospace & Defense	5,859	1.4	12,991
Union Pacific	Road and Rail	5,752	1.4	4,083
Nutrien	Chemicals	5,371	1.3	8,096
Texas Instruments	Semiconductors & Semiconductor Equipment	4,826	1.2	4,119
HCA 5.875% 15/02/26	Healthcare Services	1,530	0.4	1,602
Forty largest investments		399,124	96.9
CCO Holdings Capital 5.5% 01/05/26	Media	1,503	0.4	1,581
Rattler Midstream 5.625% 15/07/25	Oil, Gas & Consumable Fuels	1,016	0.2	-
Qwest Cap Funding 7.75% 15/02/31	Telecommunications	905	0.2	898
Diamond 1 Fin Diamond 2 6.02% 15/06/26	Technology	672	0.2	678
Six Flags Theme Park 7% 01/07/25	Recreation Facilities and Services	665	0.2	-
NRG Energy 5.25% 15/06/29	Electric	376	0.1	384
Total investments		404,261	98.2
Net current assets		7,491	1.8
Total assets		411,752	100.0

Geographical Analysis

As at 31 January 2021

	Equity	Fixed interest	Total
Country	%	%	%
Canada	8.3	-	8.3
USA	90.0	1.7	91.7
	_______	_______	_______
	98.3	1.7	100.0
	_______	_______	_______

GOING CONCERN

The Directors believe that it is appropriate to continue to adopt the going concern basis in the preparation of the financial statements.

The Company's assets consist substantially of securities in companies listed on recognised stock exchanges and in normal circumstances are realisable within a short timescale and which can be sold to meet funding commitments if necessary. 

The Board has set gearing limits and regularly reviews actual exposures, cash flow projections and compliance with banking covenants. The Company replaced its gearing facility in December 2020 when the three year facility with Scotia Ireland expired.  The Company entered into a long-term financing agreement for US$50 million with MetLife comprising two loans of US$25 million with terms of 10 and 15 years. 

The Company undertakes a continuation vote every three years.  The last continuation vote was passed at the AGM held in June 2018 with 99.8% of votes in favour.  Based on feed-back from major shareholders, the  Directors consider that it is reasonable to assume that the continuation vote will be passed at the AGM to be held in June 2021 and therefore that the Company will continue.

The Board has considered the impact of Covid-19 and believes that this will have a limited financial impact on the Company's operational resources and existence.  Given that the Company's portfolio comprises primarily "Level One" assets (listed on a recognisable exchange and realisable within a short timescale), and the Company's relatively low level of gearing, the Company has the ability to raise sufficient funds so as to remain within its debt covenants and pay expenses. 

Taking the above factors into consideration, the Board has a reasonable expectation that the Company has adequate financial resources to continue in operational existence for a period until 12 April 2022 and, accordingly, continues to adopt the going concern basis in preparing the financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and financial statements in accordance with applicable law and regulations. 

Company law requires the Directors to prepare financial statements for each financial year.  Under that law they are required to prepare the financial statements in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its profit or loss for that period.  In preparing these financial statements, the Directors are required to: 

-  select suitable accounting policies and then apply them consistently; 

-  make judgements and estimates that are reasonable and prudent; 

-  state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

-  assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and 

-  use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies Act 2006.  They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. 

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that complies with that law and those regulations. 

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.  Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Responsibility statement of the Directors in respect of the annual financial report 

We confirm that to the best of our knowledge: 

-  the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

-  the Strategic report includes a fair review of the development and performance of the business and the position of the issuer, together with a description of the principal risks and uncertainties that they face. 

We consider the annual report and financial statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

For and on behalf of The North American Income Trust plc

James Ferguson

Chairman

12 April 2021

FINANCIAL STATEMENTS

Statement of Comprehensive Income

		Year ended 31 January 2021			Year ended 31 January 2020
		Revenue	Capital	Total	Revenue	Capital	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Net (losses)/gains on investments	11	-	(40,080)	(40,080)	-	10,708	10,708
Net currency gains/(losses)	3	-	825	825	-	(616)	(616)
Income	4	21,469	101	21,570	20,957	225	21,182
Investment management fee	5	(804)	(1,877)	(2,681)	(918)	(2,142)	(3,060)
Administrative expenses	7	(753)	-	(753)	(757)	-	(757)
		______	______	_____	______	______	_____
Return before finance costs and taxation		19,912	(41,031)	(21,119)	19,282	8,175	27,457
Finance costs	6	(145)	(337)	(482)	(314)	(732)	(1,046)
		______	______	_____	______	______	_____
Return before taxation		19,767	(41,368)	(21,601)	18,968	7,443	26,411
Taxation	8	(2,882)	408	(2,474)	(2,703)	560	(2,143)
		______	______	_____	______	______	_____
Return after taxation		16,885	(40,960)	(24,075)	16,265	8,003	24,268
		______	______	_____	______	______	_____
Return per share (pence)	10	11.79	(28.60)	(16.81)	11.42	5.62	17.04
		______	______	_____	______	______	_____
The total column of this statement represents the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.
Proposed final dividend. The Board is proposing a final dividend of 4.50p per share (£6,410,000), making a total dividend of 10.00p per share (£14,285,000) for the year to 31 January 2021 which, if approved, will be payable on 4 June 2021 (see note 9). For the year ended 31 January 2020, a fourth interim dividend of 4.30p per share was paid (£6,161,000) making a total dividend of 9.50p per share (£13,578,000).

Statement of Financial Position

		As at	As at
		31 January 2021	31 January 2020
	Note	£'000	£'000
Non-current assets
Investments at fair value through profit or loss	11	404,261	410,800
		______	______
Current assets
Debtors and prepayments	12	2,575	1,804
Cash and short term deposits		9,239	21,898
		______	______
		11,814	23,702
		______	______
Creditors: amounts falling due within one year
Other creditors	13	(4,323)	(1,589)
Bank loan	14	-	(18,965)
		______	______
		(4,323)	(20,554)
		______	______
Net current assets		7,491	3,148
		______	______
Total assets less current liabilities		411,752	413,948
		______	______
Creditors: amounts falling due after more than one year
Senior Loan Notes	14	(36,336)	-
		______	______
Net assets		375,416	413,948
		______	______
Capital and reserves
Called-up share capital	15	7,151	7,164
Share premium account		51,806	51,806
Capital redemption reserve		15,465	15,452
Capital reserve		277,403	318,923
Revenue reserve		23,591	20,603
		______	______
Total shareholders' funds		375,416	413,948
		______	______
Net asset value per share (pence)	16	262.48	288.91
		______	______

Statement of Changes in Equity

For the year ended 31 January 2021
		Share	Capital
	Share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 January 2020	7,164	51,806	15,452	318,923	20,603	413,948
Buyback of Ordinary shares	(13)	-	13	(560)	-	(560)
Return after taxation	-	-	-	(40,960)	16,885	(24,075)
Dividends paid (see note 9)	-	-	-	-	(13,897)	(13,897)
	______	______	______	______	______	______
Balance at 31 January 2021	7,151	51,806	15,465	277,403	23,591	375,416
	______	______	______	______	______	______
For the year ended 31 January 2020
		Share	Capital
	Share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 January 2019	7,108	48,467	15,452	310,920	16,710	398,657
Issue of Ordinary shares	56	3,339	-	-	-	3,395
Return after taxation	-	-	-	8,003	16,265	24,268
Dividends paid (see note 9)	-	-	-	-	(12,372)	(12,372)
	______	______	______	______	______	______
Balance at 31 January 2020	7,164	51,806	15,452	318,923	20,603	413,948
	______	______	______	______	______	______
The accompanying notes are an integral part of the financial statements.

Statement of Cashflows

		Year ended	Year ended
		31 January 2021	31 January 2020
	Note	£'000	£'000
Operating activities
Net return before taxation		(21,601)	26,411
Adjustments for:
Net losses/(gains) on investments	11	40,373	(11,035)
Net (gains)/losses on foreign exchange transactions		(825)	616
Increase in dividend income receivable	12	(35)	(174)
Decrease in fixed interest income receivable	12	33	41
(Decrease)/increase in derivatives	13	(524)	550
Increase in other debtors	12	(33)	(15)
Increase in other creditors	13	810	38
Corporation tax paid		(286)	-
Tax on overseas income	8	(2,048)	(2,046)
Amortisation of senior loan note expenses	6	3	-
Amortisation of fixed income book cost	11	9	9
Stock dividends included in investment income	4	(290)	-
		______	______
Net cash inflow from operating activities		15,586	14,395
Investing activities
Purchases of investments		(243,480)	(170,263)
Sales of investments	12	211,499	187,811
		______	______
Net cash (used in)/generated from investing activities		(31,981)	17,548
Financing activities
Equity dividends paid	9	(13,897)	(12,372)
Issue of Ordinary shares		-	3,395
Buyback of Ordinary shares		(560)	-
Drawdown of loan notes		37,461	-
Drawdown of loan		23,416	-
Repayment of loan		(41,365)	(18,600)
		______	______
Net cash generated/(used in) from financing activities		5,055	(27,577)
		______	______
(Decrease)/increase in cash and cash equivalents		(11,340)	4,366
		______	______
Analysis of changes in cash and cash equivalents during the year
Opening balance		21,898	18,593
Effect of exchange rate fluctuation on cash held	3	(1,319)	(1,061)
(Decrease)/increase in cash as above		(11,340)	4,366
		______	______
Closing balance		9,239	21,898
		______	______

Notes to the Financial Statements

For the year ended 31 January 2021

1.	Principal activity. The Company is a closed-end investment company, registered in Scotland No. SC005218, with its Ordinary shares being listed on the London Stock Exchange.

2.	Accounting policies. A summary of the principal accounting policies, all of which, unless otherwise stated, have been consistently applied throughout the year and the preceding year is set out below.
	(a)		Basis of preparation and going concern . The financial statements have been prepared in accordance with Financial Reporting Standard 102, the Companies Act 2006 and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in October 2019. The financial statements are prepared in sterling which is the functional currency of the Company and rounded to the nearest £'000. They have also been prepared on a going concern basis and on the assumption that approval as an investment trust will continue to be granted.
			The Directors have considered a detailed assessment of the Company's ability to meet its liabilities as they fall due, including considering a significant reduction in the liquidity, and, fair value, of the portfolio of investments would have on existing loan covenants due to the current economic conditions caused by the COVID-19 pandemic. In light of this analysis, the Company's cash position, the level of revenue reserves, the liquidity of the portfolio of investments and modest gearing level, the Directors are satisfied that at the time of approving the financial statements, there is a reasonable expectation that the Company have adequate resources to continue in operational existence for the foreseeable future (a period of at least twelve months after the date the financial statements are signed). The Company undertakes a continuation vote every three years.  The last continuation vote was passed at the AGM held in June 2018 with 99.8% of votes in favour.  Based on feed-back from major shareholders, the  Directors consider that it is reasonable to assume that the continuation vote will be passed at the AGM to be held in June 2021 and therefore that the Company will continue. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
			Significant estimates and judgements. Disclosure is required of judgements and estimates made by management in applying the accounting policies that have a significant effect on the financial statements. There are no significant estimates or judgements which impact these financial statements.
	(b)		Income. Income from investments, including taxes deducted at source, is included in revenue by reference to the date on which the investment is quoted ex dividend. Special dividends are credited to capital or revenue, according to the circumstances. The fixed returns on debt instruments are recognised using the time apportioned accruals basis and the discount or premium on acquisition is amortised or accreted on a straight line basis.
			Interest receivable from cash and short-term deposits is recognised the time apportioned accruals basis.
	(c)		Expenses . All expenses are accounted for on an accruals basis and are charged to the Statement of Comprehensive Income. Expenses are charged against revenue except as follows:
			-   transaction costs on the acquisition or disposal of investments are charged to capital in the Statement of Comprehensive Income;
			-   expenses are charged to capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect, the investment management fee is allocated 30% to revenue and 70% to capital to reflect the Company's investment policy and prospective income and capital growth.
	(d)		Taxation . The tax payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible (see note 8 for a more detailed explanation). The Company has no liability for current tax.
			Deferred taxation is provided on all timing differences, that have originated but not reversed at the Statement of Financial Position date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Statement of Financial Position date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the financial statements which are capable of reversal in one or more subsequent periods.
			Owing to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
	(e)		Investments . All purchases and sales of investments are recognised on the trade date, being the date the Company commits to purchase or sell the investment. Investments are initially recognised and subsequently re-measured at fair value in the Statement of Comprehensive Income.
	(f)		Borrowings . Monies borrowed to finance the investment objectives of the Company are stated at the amount of the net proceeds immediately after issue plus cumulative finance costs less cumulative payments made in respect of the debt. The finance costs of such borrowings are accounted for on an accruals basis using the effective interest rate method and are charged 30% to revenue and 70% to capital to reflect the Company's investment policy and prospective income and capital growth.
	(g)		Dividends payable . Interim and final dividends are recognised in the period in which they are paid.
	(h)		Nature and purpose of reserves
			Share premium account . The balance classified as share premium includes the premium above nominal value from the proceeds on issue of any equity capital comprising Ordinary shares of 5p. This reserve is not distributable.
			Capital redemption reserve . The capital redemption reserve is used to record the amount equivalent to the nominal value of any of the Company's own shares purchased and cancelled in order to maintain the Company's capital. This reserve is not distributable.
			Capital reserve . This reserve reflects any gains or losses on realisation of investments in the period along with any changes in fair values of investments held that have been recognised in the Statement of Comprehensive Income. The costs of share buybacks are also deducted from this reserve. This reserve is distributable although the amount that is distributable is complex to determine and is not necessarily the full amount of the reserve as disclosed within these financial statements.
			Revenue reserve . This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income. The revenue reserve represents the amount of the Company's reserves distributable by way of dividend. The amount of the revenue reserve as at 31 January 2021 may not be available at the time of any future distribution due to movements between 31 January 2021 and the date of distribution.
	(i)	Foreign currency . Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Statement of Financial Position date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the realisation of foreign currencies are recognised in the Statement of Comprehensive Income and are then transferred to the capital reserve.
	(j)	Traded options . The Company may enter into certain derivative contracts (e.g. writing traded options). Option contracts are accounted for as separate derivative contracts and are therefore shown in other assets or other liabilities at their fair value. The initial fair value is based on the initial premium which is received/paid on inception. The premium is recognised in the revenue column over the life of the contract period. Losses on any movement in the fair value of open contracts at the year end realised and on the exercise of the contracts are recorded in the capital column of the Statement of Comprehensive Income.
		In addition, the Company may enter into derivative contracts to manage market risk and gains or losses arising on such contracts are recorded in the capital column of the Statement of Comprehensive Income.
	(k)	Cash and cash equivalents . Cash and cash equivalents comprise cash at bank.

3.	Net currency gains/(losses)
		2021	2020
		£'000	£'000
	Gains/(losses) on cash held	(1,319)	(1,061)
	(Losses)/gains on bank loans	1,016	445
	Gains on senior loan notes	1,128	-
		______	______
		825	(616)
		______	______

4.	Income
		2021	2020
		£'000	£'000
	Income from overseas listed investments
	Dividend income	14,168	14,974
	REIT income	1,199	1,286
	Interest income from investments	533	566
	Stock dividends	290	-
		______	______
		16,190	16,826
		______	______
	Other income from investment activity
	Traded option premiums	5,355	4,054
	Deposit interest	25	302
		______	______
		5,380	4,356
		______	______
	Total income	21,570	21,182
		______	______
	During the year, the Company was entitled to premiums totalling £5,355,000 (2020 - £4,054,000) in exchange for entering into option contracts. At the year end there were 2 (2020 - 9) open positions, valued at a liability of £144,000 (2020 - liability of £668,000) as disclosed in note 13. Losses realised on the exercise of derivative transactions are disclosed in note 11.

5.	Investment management fee
		2021			2020
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Investment management fee	804	1,877	2,681	918	2,142	3,060
		______	______	______	______	______	______
	Management services are provided by Aberdeen Standard Fund Managers Limited ("ASFML"). The annual management fee is charged at 0.75% of net assets up to £350 million, 0.6% between £350 million and £500 million, and 0.5% over £500 million, payable quarterly. Net assets equals gross assets after deducting current liabilities and borrowings and excluding commonly managed funds. The balance due to ASFML at the year end was £1,351,000 (2020 - £758,000). The fee is allocated 30% to revenue and 70% to capital (2020 - same).
	The management agreement between the Company and the Manager is terminable by either party on three months' notice. In the event of a resolution being passed at the AGM to wind up the Company the Manager shall be entitled to three months' notice from the date the resolution was passed. In the event of termination on not less than the agreed notice period, compensation is payable in lieu of the unexpired notice period.

6.	Finance costs
		2021			2020
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Interest on bank loans	109	253	362	314	732	1046
	Senior Loan Notes	35	82	117	-	-	-
	Amortised Senior Loan Note issue expenses	1	2	3	-	-	-
		______	______	______	______	______	______
		145	337	482	314	732	1,046
		______	______	______	______	______	______

7.	Administrative expenses
		2021	2020
		£'000	£'000
	Directors' fees	123	123
	Registrar's fees	46	53
	Custody and bank charges	24	25
	Secretarial fees	118	115
	Auditor's remuneration (excluding irrecoverable VAT):
	- fees payable to the Company's auditor for the audit of the annual accounts	29	18
	Promotional activities	212	208
	Printing, postage and stationery	30	28
	Fees, subscriptions and publications	55	87
	Professional fees	51	31
	Depositary charges	45	51
	Other expenses	20	18
		______	______
		753	757
		______	______
	Secretarial and administration services are provided by Aberdeen Standard Fund Managers Limited ("ASFML") under an agreement which is terminable on three months' notice. The fee is payable monthly in advance and based on an index-linked annual amount of £118,000 (2020 - £115,000). The balance due at the year end was £59,000 (2020 - £38,000).
	During the year £212,000 (2020 - £208,000) was paid to ASFML in respect of promotional activities for the Company and the balance due at the year end was £68,000 (2020 - £18,000).

8.	Taxation
			2021			2020
			Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000
	(a)	Analysis of charge for the year
		UK corporation tax	615	-	615	731	(618)	113
		Double tax relief	(189)	-	(189)	(136)	24	(112)
		Overseas tax suffered	2,039	12	2,051	2,105	34	2,139
		Tax relief to capital	420	(420)	-	-	-	-
		Deferred tax	(26)	-	(26)	26	-	26
		Double tax relief on deferred tax items	23	-	23	(23)	-	(23)
			______	______	______	______	______	_____
		Total tax charge for the year	2,882	(408)	2,474	2,703	(560)	2,143
			______	______	______	______	______	_____
	(b)	Factors affecting the tax charge for the year. The UK corporation tax rate is 19% (2020 - lower). The tax charge for the year is higher (2019 - lower) than the corporation tax rate. The differences are explained in the following table.
			2021			2020
			Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000
		Net return before taxation	19,767	(41,368)	(21,601)	18,968	7,443	26,411
			______	______	______	______	______	_____
		Corporation tax at 19% (2020 - 19%)	3,755	(7,860)	(4,105)	3,604	1,414	5,018
		Effects of:
		Non-taxable overseas dividends	(2,749)	(19)	(2,768)	(2,845)	(43)	(2,888)
		Irrecoverable overseas withholding tax	2,039	12	2,051	2,105	34	2,139
		Expenses not deductible for tax purposes	-	-	-	1	-	1
		Double tax relief	(166)	-	(166)	(159)	24	(135)
		Tax rate differentials	3	-	3	(3)	-	(3)
		Utilisation of brought forward expenses	-	-	-	-	(71)	(71)
		Non-taxable gains on investments	-	7,615	7,615	-	(2,035)	(2,035)
		Non-taxable currency gains	-	(156)	(156)	-	117	117
			______	______	______	______	______	_____
		Total tax charge	2,882	(408)	2,474	2,703	(560)	2,143
			______	______	______	______	______	_____
	(c)	Provision for deferred taxation
			2021			2020
			Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000
		Opening balance	4	-	4	-	-	-
		Deferred tax (credit)/charge for the year	(4)	-	(4)	4	-	4
			______	______	______	______	______	_____
		Provision at end of the year	-	-	-	4	-	4
			______	______	______	______	______	_____
		At the period end there is no unrecognised deferred tax asset (2020 - £nil) in relation to surplus management expenses.

9.	Dividends
		2021	2020
		£'000	£'000
	Amounts recognised as distributions to equity holders in the year:
	3rd interim dividend for 2020 of 1.8p per share (2019 - 1.7p)	2,579	2,417
	4th interim dividend for 2020 of 4.3p per share (2019 - 3.6p)	6,161	5,117
	1st interim dividend for 2021 of 1.8p per share (2020 - 1.7p)	2,579	2,417
	2nd interim dividend for 2021 of 1.8p per share (2020 - 1.7p)	2,578	2,421
		______	______
		13,897	12,372
		______	______
	The third interim dividend and proposed final dividend were unpaid at the year end. Accordingly, neither have been included as a liability in these financial statements.
	The table below sets out the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of Sections 1158-1159 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £16,885,000 (2020 - £16,265,000).
		2021	2020
		£'000	£'000
	1st interim dividend for 2021 of 1.8p per share (2020 - 1.7p)	2,579	2,417
	2nd interim dividend for 2021 of 1.8p per share (2020 - 1.7p)	2,578	2,421
	3rd interim dividend for 2021 of 1.9p per share (2020 - 1.8p)	2,718	2,579
	Proposed final dividend for 2021 of 4.5p per share (2020 - 4th interim dividend - 4.3p)	6,410	6,161
		______	______
		14,285	13,578
		______	______
	The cost of the proposed final dividend for 2021 is based on 142,434,638 Ordinary shares in issue, being the number of Ordinary shares in issue at the date of this report.

10.	Return per Ordinary share
		2021		2020
		£'000	p	£'000	p
	Based on the following figures:
	Revenue return	16,885	11.79	16,265	11.42
	Capital return	(40,960)	(28.60)	8,003	5.62
		______	______	______	______
	Total return	(24,075)	(16.81)	24,268	17.04
		______	______	______	______
	Weighted average number of Ordinary shares in issue		143,206,658		142,446,904
			__________		__________

11.	Investments at fair value through profit or loss
		2021	2020
		£'000	£'000
	Investments at fair value through profit or loss
	Opening book cost	388,574	361,576
	Opening investment holdings gains	22,226	59,893
		______	______
	Opening fair value	410,800	421,469
	Analysis of transactions made during the year
	Purchases at cost	246,078	165,097
	Sales proceeds received	(212,235)	(186,792)
	(Losses)/gains on investments{A}	(40,373)	11,035
	Amortisation of fixed income book cost	(9)	(9)
		______	______
	Closing fair value	404,261	410,800
		______	______
	Closing book cost	395,289	388,574
	Closing investment holdings gains	8,972	22,226
		______	______
	Closing fair value	404,261	410,800
		______	______
	Listed on overseas stock exchanges	404,261	410,800
		______	______
	Net (losses)/gains on investments
	(Losses)/gains on investments{A}	(40,373)	11,035
	Investment holding gains/(losses) on traded options{B}	293	(327)
		______	______
		(40,080)	10,708
		______	______
	{A}   Includes losses realised on the exercise of traded options of £3,706,000 (2020 - £3,105,000) which are reflected in the capital column of the Statement of Comprehensive Income in accordance with accounting policy 2(j). Premiums received from traded options totalled £5,355,000 (2020 - £4,054,000) per note 4.
	{B}   Options associated are derivative liabilities at the year end.
	The Company received £212,235,000 (2020 - £186,792,000) from investments sold in the year. The book cost of these investments when they were purchased was £239,354,000 (2020 - £138,090,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.
	Transaction costs. During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains on investments in the Statement of Comprehensive Income. The total costs were as follows:
		2021	2020
		£'000	£'000
	Purchases	105	77
	Sales	194	163
		______	______
		299	240
		______	______
	The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document are calculated on a different basis and in line with the PRIIPs regulations.

12.	Debtors: amounts falling due within one year
		2021	2020
		£'000	£'000
	Dividends receivable	814	779
	Interest receivable	98	131
	Other debtors and prepayments	101	68
	Amount due from brokers	1,562	826
		______	______
		2,575	1,804
		______	______

13.	Creditors: amounts falling due within one year
		2021	2020
		£'000	£'000
	Amounts due to brokers	2,308	-
	Investment management fee payable	1,351	758
	Traded option contracts	144	668
	Interest payable	117	17
	Corporation tax payable	140	-
	Other creditors	263	146
		______	______
		4,323	1,589
		______	______

14.	Bank loan
		2021	2020
		£'000	£'000
	Repayable within one year:
	Bank loan	-	18,965
		______	______
	The Company agreed a US$75 million three year uncommitted multi-currency revolving loan facility with Scotiabank (Ireland) Designated Activity Company on 21 December 2017 of which US$50 million was drawn down and repaid on 21 December 2020.
	Creditors: amounts falling due after more than one year
		2021	2020
		£'000	£'000
	2.70% Senior Loan Notes - 10 years	18,206	-
	2.96% Senior Loan Notes - 15 years	18,206	-
	Unamortised Loan Note issue expenses	(76)	-
		______	______
		36,336	-
		______	______
	On 21 December 2020 the Company issued  a US$25 million 10 years Senior Loan Note at an annualised interest rate of 2.70% and a US$25 million 15 years Senior Loan Note at an annualised interest rate of 2.96%. The Loan Notes are unsecured and unlisted. Interest is payable in half yearly instalments in June and December and the Loan Notes are due to be redeemed at par on 21 December 2030 and 21 December 2035. The Company has complied with the Senior Loan Note Purchase Agreement covenant throughout the period since issue that the ratio of net assets to gross borrowings must be greater than 3.5:1, that net assets will not be less than £200,000,000, and that the total number of Listed Assets is to be more than 35.
	The total fair value of the Senior Loan Notes at 31 January 2021 was £43,334,000 comprising £21,034,000 in respect of the 10 years 2.70%  Senior Loan Note and £22,300,000 in respect of the 15 years 2.96% Senior Loan Note. The fair value of the Senior Loan Notes has been determined by aggregating the expected future cash flows for that loan discounted at a rate comprising the borrower's margin plus an average of market rates applicable to loans of a similar period of time.

15.	Called-up share capital
		2021	2020
		£'000	£'000
	Allotted, called-up and fully paid:
	Opening balance	7,164	7,108
	Ordinary shares issued in the year	-	56
	Ordinary shares bought back in the year	(13)	-
		______	______
	143,029,146 (2020 - 143,277,520) Ordinary shares of 5p each	7,151	7,164
		______	______
	During the year 248,374 (2020 - nil) Ordinary shares of 5p each were repurchased by the Company at a total cost, including transaction costs, of £560,000 (2020 - £nil).
	During the year no Ordinary shares were issued (2020 - 1,125,000) and raised a total of £nil (2020 - £3,396,000) net of expenses.
	Subsequent to the year end, the Company 594,508 Ordinary shares of 5p each were repurchased by the Company at a total cost, including transaction costs of £1,430,000.

16.	Net asset value per Ordinary share. The net asset value per share and the net assets attributable to the Ordinary shareholders at the year end were as follows:
		2021	2020
	Net assets attributable	£375,416,000	£413,948,000
	Number of Ordinary shares in issue	143,029,146	143,277,520
	Net asset value per share	262.48p	288.91p

17.	Analysis of changes in net debt
		At				At
		31 January	Currency	Non Cash	Cash	31 January
		2020	differences	movement	flows	2021
		£'000	£'000	£'000	£'000	£'000
	Cash and short term deposits	21,898	(1,319)	-	(11,340)	9,239
	Debt due within one year	(18,965)	1,016	-	17,949	-
	Debt due after more than one year	-	1,128	(3)	(37,461)	(36,336)
		______	______	______	______	______
		2,933	825	(3)	(30,852)	(27,097)
		______	______	______	______	______
		At				At
		31 January	Currency	Non Cash	Cash	31 January
		2019	differences	movement	flows	2020
		£'000	£'000	£'000	£'000	£'000
	Cash and short term deposits	18,593	(1,061)	-	4,366	21,898
	Debt due within one year	(38,010)	445	-	18,600	(18,965)
		______	______	______	______	______
		(19,417)	(616)	-	22,966	2,933
		______	______	______	______	______
	A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis.

18.

Financial instruments and risk management. The Company's investment activities expose it to various types of financial risk associated with the financial instruments and markets in which it invests. The Company's financial instruments, other than derivatives, comprise securities and other investments, cash balances, loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income.

Subject to Board approval, the Company also has the ability to enter into derivative transactions, in the form of traded options, for the purpose of enhancing income returns and portfolio management. During the year, the Company entered into certain derivative contracts. As disclosed in note 4, the premium received in respect of options written in the year was £5,355,000 (2020 - £3,727,000). Positions closed during the year realised a loss of £3,706,000 (2020 - £3,105,000). The largest position in derivative contracts held during the year at any given time was £601,000 (2020 - £668,000). The Company had 2 (2020 - 9) open positions in derivative contracts at 31 January 2021 valued at a liability of £144,000 (2020 - £668,000) as disclosed in note 13.

The Board has delegated the risk management function to the Manager under the terms of its management agreement with ASFML (further details which are included under note 5). The Board regularly reviews and agrees policies for managing each of the key financial risks identified with the Manager. The types of risk and the Manager's approach to the management of each type of risk, are summarised below. Such an approach has been applied throughout the year and has not changed since the previous accounting period. The numerical disclosures exclude short-term debtors and creditors.

Risk management framework. The directors of ASFML collectively assume responsibility for ASFML's obligations under the AIFMD including reviewing investment performance and monitoring the Company's risk profile during the year.

ASFML is a fully integrated member of the Standard Life Aberdeen plc group of companies (referred to as "the Group"), which provides a variety of services and support to ASFML in the conduct of its business activities, including in the oversight of the risk management framework for the Company. The AIFM has delegated the day to day administration of the investment policy to Aberdeen Asset Managers Limited, which is responsible for ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in FUND 3.2.2R (details of which can be found on the Company's website). The AIFM has retained responsibility for monitoring and oversight of investment performance, product risk and regulatory and operational risk for the Company.

The AIFM conducts its risk oversight function through the operation of the Group's risk management processes and systems which are embedded within the Group's operations. The Group's Risk Division supports management in the identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance, Business Risk, Market Risk, Risk Management and Legal. The team is headed up by the Group's Head of Risk, who reports to the Chief Executive Officer of the Group. The Risk Division achieves its objective through embedding the Risk Management Framework throughout the organisation using the Group's operational risk management system ("SHIELD").

The Group's Internal Audit Department is independent of the Risk Division and reports directly to the Group's Chief Executive Officer and the Audit Committee of the Group's Board of Directors. The Internal Audit Department is responsible for providing an independent assessment of the Group's control environment.

The Group's corporate governance structure is supported by several committees to assist the board of directors of Standard Life Aberdeen plc, its subsidiaries and the Company to fulfil their roles and responsibilities. The Group's Risk Division is represented on all committees, with the exception of those committees that deal with investment recommendations. The specific goals and guidelines on the functioning of those committees are described on the committees' terms of reference.

Risk management. The main risks the Company faces from its financial instruments are (i) market risk (comprising interest rate risk, currency risk and price risk), (ii) liquidity risk and (iii) credit risk.

The Board regularly reviews and agrees policies for managing each of these risks. The Manager's policies for managing these risks are summarised below and have been applied throughout the year. The numerical disclosures exclude short-term debtors and creditors, other than for currency disclosures.

(i)

Market risk. The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, currency risk and other price risk.

Interest rate risk . Interest rate movements may affect:

-   the fair value of the investments in fixed interest rate securities;

-   the level of income receivable on cash deposits;

-   interest payable on the Company's variable rate borrowings.

Management of the risk. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions.

The Board reviews on a regular basis the values of the fixed interest rate securities.

The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise fixed rate, revolving and uncommitted facilities. Details of borrowings at 31 January 2021 are shown in note 14 of the financial statements.

Interest risk profile. The interest rate risk profile of the portfolio of financial instruments at the Statement of Financial Position date was as follows:

Weighted

average

period for

Weighted

Non-

which

average

Fixed

Floating

interest

rate is fixed

interest rate

rate

rate

bearing

At 31 January 2021

Years

%

£'000

£'000

£'000

Assets

Sterling

-

-

-

4,782

-

US Dollar

5.83

6.11

6,667

4,280

363,859

Canadian Dollar

-

-

-

177

33,735

______

______

______

Total assets

6,667

9,239

397,594

______

______

______

Liabilities

Loan Notes- US$25,000,000

9.89

2.70

18,168

-

-

Loan Notes- US$25,000,000

14.90

2.96

18,168

-

-

______

______

______

Total liabilities

36,336

-

-

______

______

______

Weighted

average

period for

Weighted

Non-

which

average

Fixed

Floating

interest

rate is fixed

interest rate

rate

rate

bearing

At 31 January 2020

Years

%

£'000

£'000

£'000

Assets

Sterling

-

-

-

8,136

-

US Dollar

6.28

5.75

8,651

13,497

362,153

Canadian Dollar

-

-

-

265

39,996

______

______

______

Total assets

8,651

21,898

402,149

______

______

______

Liabilities

Bank loan - US$25,000,000

0.07

2.63

-

(18,965)

-

______

______

______

Total liabilities

-

(18,965)

-

______

______

______

The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted average interest rate on bank loans is based on the interest rate payable, weighted by the total value of the loans. The maturity date of the Company's loan is disclosed in note 14.

The floating rate assets consist of cash deposits at prevailing market rates.

The non-interest bearing assets represent the equity element of the portfolio.

Short-term debtors and creditors have been excluded from the above tables.

Financial Liabilities . The company has fixed rate borrowings by way of its senior loan notes, details of which can be found in note 14.

Interest rate sensitivity. The sensitivity analyses below have been determined based on the exposure to interest rates for both derivative and non-derivative instruments at the Statement of Financial Position date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates.

The rate of interest on the loan is the percentage rate per annum which is the aggregate of the applicable margin, adjusted LIBOR and mandatory cost if any.

If interest rates had been 100 basis points higher or lower (based on current parameter used by Manager's Investment Risk Department on risk assessment) and all other variables were held constant, the Company's revenue return for the year ended 31 January 2021 would increase/decrease by £92,000 (2020 - decrease/increase by £29,000). This is mainly attributable to the Company's exposure to interest rates on its floating rate cash and loan balances.

In the opinion of the Directors, the above sensitivity analyses are not representative of the year as a whole, since the level of exposure changes frequently as part of the interest rate risk management process used to meet the Company's objectives. The risk parameters used will also fluctuate depending on the current market perception.

Foreign currency risk. The Company's portfolio is invested mainly in US quoted securities and the Statement of Financial Position can be significantly affected by movements in foreign exchange rates.

Management of the risk. It is not the Company's policy to hedge this risk on a continuing basis but the Company may, from time to time, match specific overseas investment with foreign currency borrowings. A significant proportion of the Company's borrowings, as detailed in note 14, are denominated in foreign currency. Foreign currency risk exposure by currency denomination is detailed under Interest Risk Profile.

The revenue account is subject to currency fluctuation arising on overseas income. The Company does not hedge this currency risk.

Foreign currency sensitivity. There is no sensitivity analysis included as the Company's significant foreign currency financial instruments are in the form of equity investments, and they have been included within the other price risk sensitivity analysis so as to show the overall level of exposure.

Price risk. Price risks (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments.

Management of the risk. It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular country or sector. The allocation of assets to international markets and the stock selection process both act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges.

Price risk sensitivity. If market prices at the Statement of Financial Position date had been 10% higher or lower while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 31 January 2021 would have increased/decreased by £40,426,000 (2020 - increase/decrease of £41,080,000) and equity reserves would have increased/decreased by the same amount.

(ii)

Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.

Management of the risk . Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of the loan facility (note 14).

(iii)

Credit risk. This is failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss.

Management of the risk

-   where the Manager makes an investment in a bond, corporate or otherwise, the credit ratings of the issuer are taken into account so as to manage the risk to the Company of default;

-   investments in quoted bonds are made across a variety of industry sectors so as to avoid concentrations of credit risk;

-   transactions involving derivatives are entered into only with investment banks, the credit rating of which is taken into account so as to minimise the risk to the Company of default;

-   investment transactions are carried out with a number of brokers, whose credit-standing is reviewed periodically by the Manager, and limits are set on the amount that may be due from any one broker;

-   the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the review of failed trade reports on a daily basis. In addition, both stock and cash reconciliations to the custodian's records are performed on a daily basis to ensure discrepancies are investigated on a timely basis. The Manager's Compliance department carries out periodic reviews of the custodian's operations and reports its finding to the Manager's Risk Management Committee;

-   cash is held only with reputable banks with acceptable credit quality. It is the Manager's policy to trade only with A- and above (Long Term rated) and A-1/P-1 (Short Term rated) counterparties.

Credit risk exposure. In summary, compared to the amounts in the Statement of Financial Position, the exposure to credit risk at 31 January 2021 was as follows:

2021

2020

Statement of

Statement of

Financial

Maximum

Financial

Maximum

Position

exposure

Position

exposure

£'000

£'000

£'000

£'000

Non-current assets

Quoted bonds

6,667

6,667

8,651

8,651

Current assets

Amount due from brokers

1,562

1,562

826

826

Dividends receivable

814

814

779

779

Interest receivable

98

98

131

131

Other debtors and prepayments

101

101

68

68

Cash and short term deposits

9,239

9,239

21,898

21,898

______

______

______

______

18,481

18,481

32,353

32,353

______

______

______

______

None of the Company's financial assets are secured by collateral or other credit enhancements.

Credit ratings. The table below provides a credit rating profile using Standard and Poors credit ratings for the quoted bonds at 31 January 2021 and 31 January 2020:

2021

2020

£'000

£'000

B

665

-

BB+

376

1,055

BB

2,408

4,037

BB-

1,530

1,602

BBB-

1,688

1,957

______

______

6,667

8,651

______

______

Fair values of financial assets and financial liabilities . The book value of cash at bank and bank loans and overdrafts included in these financial statements approximate to fair value because of their short-term maturity. Investments held as dealing investments are valued at fair value. The carrying values of fixed asset investments are stated at their fair values, which have been determined with reference to quoted market prices. For all other short-term debtors and creditors, their book values approximate to fair values because of their short-term maturity.

19.	Capital management policies and procedures. The investment objective of the Company is to provide investors with above average dividend income and long term capital growth through active management of a portfolio consisting predominately of S&P 500 US equities.
	The capital of the Company consists of bank borrowings and equity comprising issued capital, reserves and retained earnings. The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.
	The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes:
	-   the planned level of gearing which takes into account the Investment Manager's views on the market;
	-   the level of equity shares in issue; and
	-   the extent to which revenue in excess of that which is required to be distributed should be retained.
	The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period.
	Details of the Company's gearing facilities and financial covenants are detailed in note 14 of the financial statements.

20.	Fair value hierarchy. FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following classifications:
	Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date.
	Level 2: inputs other than quoted prices included within Level 1 that are observable (ie developed using market data) for the asset or liability, either directly or indirectly.
	Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.
	The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:
				Level 1	Level 2	Level 3	Total
	As at 31 January 2021		Note	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities		a)	397,594	-	-	397,594
	Quoted bonds		b)	-	6,667	-	6,667
				______	______	______	______
				397,594	6,667	-	404,261
				______	______	______	______
	Financial liabilities at fair value through profit or loss
	Derivatives		c)	-	(144)	-	(144)
				______	______	______	______
	Net fair value			397,594	6,523	-	404,117
				______	______	______	______
				Level 1	Level 2	Level 3	Total
	As at 31 January 2020		Note	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities		a)	402,149	-	-	402,149
	Quoted bonds		b)	-	8,651	-	8,651
				______	______	______	______
				402,149	8,651	-	410,800
				______	______	______	______
	Financial liabilities at fair value through profit or loss
	Derivatives		c)	-	(668)	-	(668)
				______	______	______	______
	Net fair value			402,149	7,983	-	410,132
				______	______	______	______
	a)	Quoted equities. The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges.
	b)	Quoted bonds. The fair value of the Company's investments in quoted bonds has been determined by reference to their quoted bid prices at the reporting date. Investments categorised as Level 2 are not considered to trade in active markets.
	c)	Derivatives. The Company's investment in exchange traded options have been fair valued using quoted prices and have been classified as Level 2 as they are not considered to trade in active markets.
	The fair value of the senior loan notes has been calculated as £43,334,000 (2020 - £nil), determined by aggregating the expected future cash flows for that loan discounted at a rate comprising the borrower's margin plus an average of market rates applicable to loans of a similar period of time, compared to carrying amortised cost of £36,336,000 (2020 - £nil).

21.	Related party transactions
	Directors' fees and interests. Fees payable during the year to the Directors and their interests in shares of the Company are disclosed within the Directors' Remuneration Report on pages 44 and 45 of the published 2021 Annual Report .
	Transactions with the Manager. The Company has an agreement with the Manager for the provision of investment management, secretarial, accounting and administration and promotional activity services.
	Details of transactions during the year and balances outstanding at the year end are disclosed in notes 5 and 7.
	Subsequent to the year end, the Board and the Manager agreed that with effect from 1 May 2021 the value of the net assets that will be subject to highest tier of fees, of 0.75% per annum, will be reduced from £350 million to £250 million.

ALTERNATIVE PERFORMANCE MEASURES
Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes FRS 102 and the AIC SORP. The Directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies.
Total return. Total return is considered to be an alternative performance measure. NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. NAV total return involves investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.
The tables below provide information relating to the NAVs and share prices of the Company on the dividend reinvestment dates during the years ended 31 January 2021 and 31 January 2020 and total return for the years.
	Dividend		Share
2021	rate	NAV	price
31 January 2020{A}	N/A	287.11p	290.00p
7 May 2020	4.30p	246.89p	233.00p
16 July 2020	1.80p	259.66p	224.50p
1 October 2020	1.80p	249.27p	220.00p
31 January 2021	N/A	262.48p	234.00p
		______	______
Total return		-5.7%	-16.5%
		______	______
{A} NAV per Statement of Financial Position of 288.91p reduced by 1.80p to take account of the dividend going ex-div on 30 January 2020.
	Dividend		Share
2020	rate	NAV	price
31 January 2019	N/A	280.44p	268.00p
9 May 2019	3.60p	286.52p	282.00p
18 July 2019	1.70p	303.56p	304.00p
3 October 2019	1.70p	292.11p	294.50p
30 January 2020	1.80p	294.08p	290.00p
31 January 2020{A}	N/A	287.11p	290.00p
		______	______
Total return		+5.5%	+11.5%
		______	______
{A} NAV per Statement of Financial Position of 288.91p reduced by 1.80p to take account of the dividend going ex-div on 30 January 2020.
Dividend cover. Revenue return per share of 11.79p (31 January 2020 - 11.42p) divided by dividends per share of 10.00p (31 January 2020 - 9.50p) expressed as a ratio.
Dividend yield. The annual dividend of 10.00p per Ordinary share (31 January 2020 - 9.50p) divided by the share price of 234.00p (31 January 2020 - 290.00p), expressed as a percentage.
Net cash/gearing. Net cash/gearing measures cash and cash equivalents of £8,493,000 (31 January 2020 - £22,724,000) less total borrowings of £36,336,000 (31 January 2020 - £18,965,000) divided by shareholders' funds of £375,416,000 (31 January 2020 - £413,948,000), expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes net amounts due to brokers at the year end of £746,000 (31 January 2020 - due from brokers of £826,000) as well as cash and short term deposits of £9,239,000 (31 January 2020 - £21,898,000).
(Discount)/premium. The difference between the share price of 234.00p (31 January 2020 - 290.00p) and the net asset value per Ordinary share of 262.48p (31 January 2020 - 288.91p) expressed as a percentage of the net asset value per Ordinary share.
Ongoing charges ratio. Ongoing charges ratio is considered to be an alternative performance measure. The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC which is defined as the total of investment management fees and administrative expenses and expressed as a percentage of the average net asset values with debt at fair value throughout the year.
		2021		2020
Investment management fees (£'000)		2,681		3,060
Administrative expenses (£'000)		753		757
		______		______
Ongoing charges (£'000)		3,434		3,817
		______		______
Average net assets (£'000)		371,338		420,761
		______		______
Ongoing charges ratio (excluding look-through costs)		0.92%		0.91%
		______		______
Look-through costs{A}		0.09%		0.06%
		______		______
Ongoing charges ratio (including look-through costs)		1.01%		0.97%
		______		______
{A}   Costs associated with holdings in collective investment schemes as defined by the Committee of European Securities Regulators' guidelines on the methodology for the calculation of the ongoing charges figure, issued on 1 July 2010.
The ongoing charges ratio provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations which includes finance costs and transaction charges.

ADDITIONAL NOTES TO THE ANNUAL FINANCIAL REPORT

This Annual Financial Report announcement is not the Company's statutory accounts for the year ended 31 January 2021. The statutory accounts for the year ended 31 January 2021 received an audit report which was unqualified.

The financial information set out above does not constitute the company's statutory accounts for the years ended 31 January 2021 or 2020 but is derived from those accounts. Statutory accounts for 2020 have been delivered to the registrar of companies, and those for 2021 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The statutory accounts for the financial year ended 31 January 2021 were approved by the Directors on 12 April 2021 but will not be filed with the Registrar of Companies until after the Company's Annual General Meeting which is to be held at 11.00 am on 1 June 2021.

The Annual Report will be posted to shareholders in May 2021 and additional copies will be available from the Manager (Investor Helpline - Tel. [phone]) or by download from the Company's webpage

( www.northamericanincome.co.uk )

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.

For The North American Income Trust plc

Aberdeen Asset Management PLC, Secretaries

 

END

 

 

FR UUUVRAOUSAAR