Edison reviews The Bankers Investment Trust (BNKR)

RNS Number : 8991T

Bankers Investment Trust PLC

25 March 2019

 

London, UK, 25 March 2019

Edison reviews The Bankers Investment Trust (BNKR)

The Bankers Investment Trust (BNKR) has re-established its trend of long-term outperformance of its benchmark, after a slightly disappointing H218. While the portfolio retains a cyclical tilt, manager Alex Crooke at Janus Henderson Investors has overseen a gradual shift toward more defensive market areas in recent months. The trust's regional sub-portfolio managers focus on finding well-managed, cash-generative companies whose growing dividends can support BNKR's own impressive 52-year record of dividend growth. Crooke recognises the delicate balance between positive and negative factors in the global macro picture, and over the past year has taken some profits in highly rated technology names and kept gearing low at c 2-3%. He expects greater clarity on the macro outlook in the second half of 2019, but in the meantime is taking advantage of more attractive equity valuations resulting from the Q418 market sell-off.

BNKR's shares have traded in a relatively narrow band versus its NAV over the past 18 months, ranging from a c 4.0% discount to a c 1.5% premium. At 21 March 2019, the shares stood at a 0.9% discount to cum-income NAV, which was narrower than the averages over one, three, five and 10 years, suggesting investor demand remains robust. Following a 52nd year of annual dividend growth in FY18, the shares currently yield 2.3%. Net gearing is relatively low at 3.0%, with potential to rise to c 8% via a combination of long-term debt and a flexible borrowing facility.

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