Aberdeen's Fran Radano and Paul Atkinson, managers of the £275m North American Income trust, said recent concerns about US earnings pressures have been overstated, as they question whether it is even possible to identify ‘normalised earnings' for this market.
The pair said they had not shared fears about earnings and valuations for US companies, as their earnings estimates are forward- not backward-looking. Radano said: "We are happy with earnings so far this season. Currency headwinds prompted consensus estimates that had earnings down by around 5%. We are now 90% through reporting season and we have seen earnings rise by 2%. "The issue with trailing earnings is that we have seen significant financial events in the last few years. If you can pick out ‘normalised' earnings then you are talented," the pair added. The managers also stres...
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