The Bankers Investment Trust (BNKR) has continued to post solid returns (NAV TR +17.4% in the six months to 30 April 2021) from its diversified global equity portfolio. Lead manager Alex Crooke oversees a team of regional fund managers, as well as setting the trust’s overall asset allocation and managing its gearing. While gearing has been low in recent times (averaging 1.25% net over the past 12 months), two newly announced loan note issues totalling c £75m will boost the available borrowing to c 10% of NAV, allowing the manager greater flexibility to express positive market views or take advantage of undervalued opportunities. Crooke is guardedly optimistic on the outlook for equities, particularly in Europe and Japan, which have a greater proportion of attractively valued stocks that should do well in a more inflationary environment. BNKR remains on track for a record-equalling 55th year of annual dividend growth in FY21, and currently yields 1.8%.
