Bankers Investment Trust (BNKR) - reorganisation of share capital

[scotia]

Hence I was surprised in the performance comparison listed above
Does it suggest that there are really some very poor performers in the AIC Global sector?

I followed this up - looking at 5 year total returns on the 12 funds in the AIC Global sector (excluding BNKR) and found it to be (currently) 25.1%, with BNKR 24.4%.
In the OEIC Global List only Brunner (55.5%) beats a developed world tracker (VEVE = 52.1%), while in addition, only Alliance Trust (48.6%) beats a whole world tracker (VWRL = 47.9%)
As well as these trackers, I hold a number of the AIC Global ITs - are they worth continuing with? Maybe their discounts will shorten if the markets generally take an upward turn.
I have looked over my figures (from Hargreaves Lansdown) a couple of times - but apologies if any have made any mistakes

Apologies - Should Read In the "AIC Global List" not "OEIC Global List"

[scotia]

I've been very happy with the performance of JPMorgan Global Growth & Income (JGGI) in the AIC Global Equity Income Sector, which has a 5-year Total-Return of 78.4%, with 60.4% over 3-years -

https://www.theaic.co.uk/companydata/jpmorgan-global-growth-income/performance

With a yield of just under 4%, it's in a pretty good sweet-spot in my income-portfolio, delivering a useful yield from a global sector, whilst also providing some useful long-term capital appreciation.

Cheers,

Itsallaguess

I have had a look at the total return graph on HL - an impressive performance. It has a 68.6% weight in the USA, the next highest weight is 4.48% in France.

[richfool]

I've been very happy with the performance of JPMorgan Global Growth & Income (JGGI) in the AIC Global Equity Income Sector, which has a 5-year Total-Return of 78.4%, with 60.4% over 3-years -

https://www.theaic.co.uk/companydata/jpmorgan-global-growth-income/performance

With a yield of just under 4%, it's in a pretty good sweet-spot in my income-portfolio, delivering a useful yield from a global sector, whilst also providing some useful long-term capital appreciation.

Cheers,

Itsallaguess

I have had a look at the total return graph on HL - an impressive performance. It has a 68.6% weight in the USA, the next highest weight is 4.48% in France.

Yes, I hold JGGI. In fact it is by far my largest holding, but JGGI is in the global growth and income sector, whereas Bankers is in the global growth sector.

For global growth, in preference to Bankers, I hold Brunner (BUT) as my main holding, with smaller holdings in Alliance (ATST) and MNP (Martin Currie Global Portfolio).

[Itsallaguess]

I have had a look at the total return graph on HL [for JGGI] - an impressive performance.

It has a 68.6% weight in the USA, the next highest weight is 4.48% in France.

A large USA weighting isn't unusual for the AIC Global or Global income sectors, as we can see in the following table ranked for the USA as first country, and then by weighting -

Investment Trust                     EPIC   AIC sector             YIELD (%)   1st Country   % of total assets   2nd Country   % of total assets
JPMorgan Global Growth & Income      JGGI   Global Equity Income   3.87        USA           61.3                France        5.5
Mid Wynd International               MWY    Global                 1.02        USA           57.2                Japan         12.3
Alliance Trust                       ATST   Global                 2.33        USA           56.2                UK            9.5
Monks Investment Trust               MNKS   Global                 0.32        USA           56                  UK            6
Scottish Mortgage Investment Trust   SMT    Global                 0.58        USA           53                  China         12
STS Global Income & Growth Trust     STS    Global Equity Income   2.82        USA           52.6                UK            31.5
Martin Currie Global Portfolio       MNP    Global                 1.22        USA           50.3                Sweden        9.5
F&C Investment Trust                 FCIT   Global                 1.55        USA           49.4                UK            13.3
Keystone Positive Change             KPC    Global                 5.14        USA           41                  Brazil        10
Brunner Investment Trust             BUT    Global                 2.09        USA           40                  UK            23.8
Invesco Select Trust                 IVPG   Global Equity Income   3.12        USA           39.9                UK            17.8
Bankers Investment Trust             BNKR   Global                 2.35        USA           38                  UK            15
Scottish American                    SAIN   Global Equity Income   2.69        USA           35                  UK            15
Witan Investment Trust               WTAN   Global                 2.52        USA           34.9                UK            24.1
Henderson International Income       HINT   Global Equity Income   4.38        USA           34.1                France        9.9
British & American                   BAF    Global Equity Income   9.21        USA           32.8                UK            13.8
Murray International Trust           MYI    Global Equity Income   4.56        USA           22                  Taiwan        9.1
Lindsell Train Investment Trust      LTI    Global                 5.3         UK            75.2                Japan         6.9
AVI Global Trust                     AGT    Global                 1.69        Japan         20.7                USA           18.4

My requirements for a yield over 3.5% and where the UK didn't have a large weighting, as I'm covering the UK sector separately in my income-portfolio, cuts that list down quite considerably.

From the above list I own JGGI, HINT, and MYI as part of my IT-focussed income portfolio covering these two sectors, and with separate holdings covering Global Emerging Markets.

If anyone's interesting in digging a little deeper into this important area of Geographical diversification, then the initial column in the above table contains links to the underlying AIC Portfolio page for each entry, which will highlight further country weightings below the highest two entries shown above, as well as things like overall Industry breakdown as well, which can be interesting reading sometimes with some quite heavy weightings in different Industrial sectors too...

Cheers,

Itsallaguess

[dundas666]

I have had a look at the total return graph on HL - an impressive performance. It has a 68.6% weight in the USA, the next highest weight is 4.48% in France.

Yes, I hold JGGI. In fact it is by far my largest holding, but JGGI is in the global growth and income sector, whereas Bankers is in the global growth sector.

For global growth, in preference to Bankers, I hold Brunner (BUT) as my main holding, with smaller holdings in Alliance (ATST) and MNP (Martin Currie Global Portfolio).

With JGGI I think we have to be careful defining it as being in the growth and income sector because unlike most ITs in that sector it has a growth portfolio and pays dividends from capital. It's top 3 holdings (Microsoft, Amazon, UnitedHealth) pay little or no dividends.

My point being is that I think you could still select JGGI if you wanted a growth IT, and were happy reinvesting the dividends without a tax issue.

[richfool]

For those interested, AJ Bell have just removed Bankers from their Best Buy list:

Turning to the firm’s dedicated investment trust recommendation list, the AJ Bell analysts lost faith in Bankers Trust, after years of underperformance.

Although the trust has made 121.4% over 10 years, double that of the FTSE All Share benchmark and slightly ahead of the 118.6% return from the average IT Global peer, it is 11th of the 13 remaining funds in the sector over this timeframe and some 65 percentage points behind the MSCI World index – a more typical benchmark for global portfolios.

The trust was “removed due to a lack of conviction in its ability to meet its stated objectives,” the AJ Bell team said.

https://www.trustnet.com/news/13386898/ ... t-buy-list

Some other trusts including TIGT and PNL are mentioned in the article.

[richfool]

THE BANKERS INVESTMENT TRUST PLC
JANUS HENDERSON FUND MANAGEMENT UK LIMITED

26 September 2023
THE BANKERS INVESTMENT TRUST PLC
THIRD INTERIM DIVIDEND
FOR THE YEAR ENDING 31 OCTOBER 2023

The Bankers Investment Trust PLC has declared a third interim dividend which will be at the rate of 0.66p per ordinary share each (2022: 0.60p per ordinary share) in respect of the year ending 31 October 2023 payable on 30 November 2023 to shareholders registered on 27 October 2023. The Company's shares go ex-dividend on 26 October 2023. This represents an increase of 10% as compared to the third interim dividend paid in 2022.

https://www.investegate.co.uk/announcem ... on/7779121

I don't hold Bankers trust.

[richfool]

Bankers Annual Financial Report (Extracts from):

Performance

Throughout the year economists worldwide have predicted a recession in the western world caused principally by sharply rising interest rates. The real data have shown a more robust picture with employment remaining near historic highs, inflation falling and, particularly in the US, healthy economic activity. The arrival this year of ChatGPT bringing to the fore generative Artificial Intelligence ('AI') was a seminal moment in the free usage of AI.

Your Company has delivered a net asset value total return over the year ended 31 October 2023 of 5.2% (2022: -11.3%) just narrowly underperforming the FTSE World Index total return of 5.7% (2022: -2.8%) and a share price total return of -0.7% (2022: -13.4%). Over the year, performance relative to the AIC Global peer group placed Bankers at eight position on share price total return performance out of 13 comparable trusts and similarly sixth position out of 13 on net asset value total return.

The principal reason for poor performance against the benchmark over three years was on account of our comparatively low exposure (40% vs 68% in the benchmark) to the US market and in particular the largest technology companies which now dominate the US market. Often called the 'Magnificent Seven' (Microsoft, Apple, Amazon, Alphabet, Meta, Nvidia and Tesla), these stocks collectively increased in value by 64% during the twelve months to the end of October 2023. This was in stark comparison to the performance of the remaining 493 stocks in the US S&P 500 index, which barely moved, combined only increasing in value by +0.5% in the year.

The Asian and Chinese portfolios underperformed partially due to the late lifting of Covid restrictions and in China in particular due to the continued weakness in the property market impacting consumer sentiment. European and Japanese portfolios performed well and the UK portfolio made a modest contribution.

Revenue, dividends and share buybacks

Revenue earnings per share of 2.72p (2022: 2.34p) exceeded expectations for the year and has enabled a greater increase in the dividend than the Board had forecast this time last year. One of the Company's key objectives is to achieve long-term dividend growth in excess of inflation, measured by the UK Consumer Price Index ('CPI'). This objective has been challenging in recent years but inflation has now started to moderate and CPI rose by 4.6% for the year to 31 October 2023 (2022: 11.1%).

The Board is therefore recommending a final quarterly dividend of 0.66p per share, resulting in total dividends per share for the year of 2.56p (2022: 2.328p), an increase over last year of 10%. The final dividend will be paid on 29 February 2024 to shareholders on the register of members at the close of business on 26 January 2024. This will be the Company's 57th successive year of annual dividend growth.

For the current financial year, the Board expects to recommend dividend growth of at least 5%, which would equate to a full year dividend of 2.69p per share.

https://www.investegate.co.uk/announcem ... rt/7994758

I don't hold Bankers, though I do hold: BUT and ATST in the same sector.

[ADrunkenMarcus]

That is decent dividend growth and should be well above inflation over the two years of last and this coming year.

I’ve been considering Bankers for a global exposure collective which pays a dividend without over distributing.

Best wishes


Mark