Interim Management Statement

RNS Number : 7380M

Bankers Investment Trust PLC

29 August 2013

 



THE BANKERS INVESTMENT TRUST PLC                                                                                 

HENDERSON GLOBAL INVESTORS

29 AUGUST 2013

THE BANKERS INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 May 2013 to 31 July 2013

Portfolio Review: The portfolio's exposure to banks has been increased with purchases of Lloyds in the UK and JP Morgan and PNC Financial in the USA.  There is increasing evidence of a pick up in loan demand in both these countries, combined with more confidence that they are past the peak of loan write-downs.  Valuations are reasonable and there should be further upgrades to profits in coming months.  New holdings included Brammer in the UK, Westfield Retail Trust in Australia and ING (US).  These purchases were funded from sales of BAT, BG and Shell in the UK, Tabcorp in Australia and Verizon Communications in the US.  Gearing has fallen, predominantly because dividend income received over the period from investments has yet to be reinvested into new investments.

During June, the Trust received permission from the Chinese State Administration of Foreign Exchange (SAFE) for a quota of $25m to invest in Chinese 'A' Shares under the Qualified Foreign Institutional Investor (QFII) scheme.  The investment will be completed by November 2013 and allows Bankers to gain access to Remnimbi denominated A shares listed on China's mainland exchanges.  The investments will complement the existing holdings of Chinese shares, listed in Hong Kong.

Gearing: The net gearing position (borrowings and debentures minus cash as a percentage of net assets) was 3.2% (30 April 2013: 4.1%).

Dividends: A first interim dividend of 3.465p per ordinary share net (2012: 3.30p) in respect of the year ending 31 October 2013 was paid on 31 May 2013 to shareholders registered on 3 May 2013.  The Company's shares went ex-dividend on 1 May 2013.

A second interim dividend of 3.465p per ordinary share net (2012: 3.30p) in respect of the year ending 31 October 2013 will be paid on 30 August 2013 to shareholders registered on 26 July 2013.  The shares went ex-dividend on 24 July 2013.

Premium / (Discount):  The share price premium to net asset value at 31 July 2013 was 1.8% (30 April 2013: discount (1.9%)).

Share Capital:  During the period the Company did not buy-back any shares.

Board Changes: On 19 June 2013 Mr Peter Sullivan, due to his other work commitments, resigned as a non-executive director of the Company.

The directors are not aware of any other significant events or transactions up to the date of this report which would have a material impact on the financial position of the Company.  

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position (in accordance with the AIC formula, ie excluding current financial year revenue items)

	At 31 July 2013	At 30 April 2013
Total assets (£'000)	£661,000	£644,000
Net asset value per ordinary share (cum income)	564.3p	547.2p
Net asset value per ordinary share (ex income)	560.1p	540.4p
Ordinary share price mid-market price	574.5p	536.5p
Premium / (Discount)	1.8%	(1.9)%
Net Gearing	3.2%	4.1%

Total Return Performance at 31 July 2013	3 months	1 year	3 years	5 years
Share Price	8.4%	43.8%	73.7%	77.3%
Net Asset Value per ordinary share	4.4%	26.8%	48.0%	58.0%
FTSE All-Share Index	4.4%	24.3%	43.4%	53.1%

Source: Morningstar for the AIC using cum income net asset value.

THE PORTFOLIO

(Distribution of total investments employed)

Top 10 Investments		% of total assets at 31 July 2013	% of total assets at 30 April 2013
BP		2.4%	2.5%
GlaxoSmithKline		2.0%	2.0%
HSBC		1.8%	1.7%
Vodafone		1.6%	1.6%
British American Tobacco		1.5%	2.2%
Catlin		1.4%	1.5%
Sports Direct		1.4%	1.0%
Royal Dutch Shell		1.2%	1.6%
ITV		1.2%	0.9%
Galliford Try		1.2%	1.2%

Geographic Breakdown	% at 31 July 2013	% at 30 April 2013
United Kingdom	42.6%	43.0%
North America	21.5%	20.7%
Europe	12.1%	10.5%
Pacific (ex Japan)	11.4%	12.6%
Japan	9.9%	10.2%
Other	2.5%	3.0%

Sector Breakdown	% at 31 July 2013	% at 30 April 2013
Financials	21.9%	22.3%
Industrials	15.7%	14.7%
Consumer Goods	13.3%	12.8%
Consumer Services	12.7%	13.1%
Oil & Gas	11.3%	12.4%
Health Care	7.4%	6.9%
Technology	6.3%	6.3%
Telecommunications	4.9%	5.3%
Basic Materials	4.6%	4.5%
Utilities	1.5%	1.7%
Other (Unit Trusts)	0.4%	0.4%

The objective of The Bankers Investment Trust PLC is to achieve long term asset growth in excess of the FTSE All-Share Index and to achieve regular dividend growth in excess of the increase in the Retail Prices Index.   

The Manager is Henderson Global Investors Limited. Further information on the Company, including an up to date NAV and share price information, can be found on the Manager's website www.itshenderson.com or www.bankersinvestmenttrust.com.

For further information, please contact:

Alex Crooke

Portfolio Manager

The Bankers Investment Trust PLC

Telephone: [phone]

James de Sausmarez

Head of Investment Trusts

Henderson Global Investors

Telephone: [phone]

Sarah Gibbons-Cook

Investor Relations and PR Manager

Henderson Global Investors

Telephone: [phone]

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement

- ENDS -

 

END

 

 

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