In a surprise move, the board of The North American Income Trust says that it has agreed heads of terms to appoint Janus Henderson Fund Management UK Limited as its new AIFM and investment manager. This follows an extensive review of its existing management arrangements and engagement with a number of management groups. The board believes that the move to Janus Henderson offers its shareholders a variety of benefits, including access to the strength and breadth of its US equity capabilities.
Fran Radano will remain portfolio manager of the company. Fran Radano has resigned from his role at abrdn Inc. and has agreed to join Janus Henderson, where he will continue to manage the portfolio supported by Janus Henderson’s US equities team.
Benefits to shareholders
- The board believes the change of management to Janus Henderson will provide the following benefits:
- Access to a strong, well-resourced US equity capability managing assets of $180bn. Janus Henderson has a long history of managing US equities.
- A large and well-resourced North American analyst team, capable of producing innovative and insightful investment ideas for the company.
- Access to a collaborative and extensive team of 15 portfolio managers headed by Marc Pinto, head of US equities. Fran will be supported by a team of 36 US equity analysts who are industry experts with an average experience of 17 years.
- Management by equity income specialists – of Janus Henderson’s eleven investment trusts, currently three are dividend heroes and five are next-generation dividend heroes.
- Reduction in the management fee (see below).
- A dedicated investment trust team with strong expertise amongst professional and retail investors.
Fees and costs
Janus Henderson will receive an annual management fee of 0.55% of the first £500m of NAV and 0.45% on any net assets above £500m. This represents a reduction from the current levels of fees paid to abrdn Fund Managers Limited of 0.75% of net assets up to £250m, 0.6% of net assets between £250m and £500m and 0.5% of net assets above £500m.
Janus Henderson has agreed to make a contribution to the company’s costs related to the change of manager. This contribution may be funded by an offset against the management fee payable to it, up to a maximum period of three months from its appointment as AIFM. The investment management agreement shall be terminable by either party serving six months’ notice.
The appointment of Janus Henderson on the terms set out in the heads of terms is conditional on the execution of a new management agreement, finalisation of other contractual documentation and the passing of the Company’s continuation vote. Janus Henderson will seek the required FCA regulatory clearances to act as the company’s AIFM.
NAIT : abrdn loses North American Income to Janus Henderson