Bankers Investment Trust (BNKR) - reorganisation of share capital

[Peltiq]

I'm sure this will be of interest to a few people here, including yours truly.

Subject to shareholder approval, shareholders as at close of business on 26 February 2021 will have their holding subdivided, receiving 10 new shares in place of every share previously held.

https://www.janushenderson.com/en-gb/in ... trust-plc/

https://www.investegate.co.uk/bankers-i ... 09336607M/

[dsc11]

Indeed! This is good news for divi reinvestors.

Now if only PNL would do a 1:10 or better still a 1:100 ....

[staffordian]

Ooh, how very dare they feck up my spreadsheet

[swill453]

Wish VWRL* would do that, at eighty quid a pop.

* off topic I know.

Scott.

[Peltiq]

The proposed share split was approved at an AGM held earlier today and will take affect from 1st March, next Monday.

https://www.investegate.co.uk/bankers-i ... nt%20Alert

[monabri]

https://www.investegate.co.uk/bankers-i ... 08592352Q/


"The Bankers Investment Trust PLC has declared a first interim dividend of 5.38p per ordinary share (2020: 5.35p) in respect of the year ending 31 October 2021 payable on 28 May 2021 to shareholders registered on 30 April 2021. The Company's shares go ex-dividend on 29 April 2021."

[Peltiq]

https://www.investegate.co.uk/bankers-investment--bnkr-/rns/dividend-declaration/202102241408592352Q/


"The Bankers Investment Trust PLC has declared a first interim dividend of 5.38p per ordinary share (2020: 5.35p) in respect of the year ending 31 October 2021 payable on 28 May 2021 to shareholders registered on 30 April 2021. The Company's shares go ex-dividend on 29 April 2021."

The above dividend would have been nice with the 10-for-1 share split.

Unfortunately it's going to be 0.538p per share.......

https://www.investegate.co.uk/bankers-i ... nt%20Alert

[puffster]

Yahoo finance is showing Bankers down 89.9% today!

Regards, Puffster

[UncleEbenezer]

Yahoo finance is showing Bankers down 89.9% today!

Regards, Puffster

Whoops, another knock to my portfolio.

ISTR similar a few years back from the Scottish Mortgage split.

[Bathonian]

Wish VWRL* would do that, at eighty quid a pop.

* off topic I know.

Scott.

You could buy VWRP instead? It's the accumulation version of the same fund and is by far my largest holding, making up the vast majority of my portfolio.

I appreciate that there may be implications if held in a taxable account, plus transaction costs in making a switch via the dealing fee and spread, although no stamp duty to pay on an ETF of course.

[XFool]

Yahoo finance is showing Bankers down 89.9% today!

Regards, Puffster

Think yourself lucky. One of my brokers is showing my holding of BNKR wiped out, 100% loss!

Worth zero, albeit with an exclamation mark and a funny EPIC, until they get the new price feed sorted out.

Mind you, several years ago now, at least one share price was temporarily quoted as GBP instead of pence. Instant millionaire! Perhaps I should have sold up and done a runner?

[swill453]

Wish VWRL* would do that, at eighty quid a pop.

* off topic I know.

You could buy VWRP instead? It's the accumulation version of the same fund and is by far my largest holding, making up the vast majority of my portfolio.

Still £74+ each. Just a bit annoying when doing a regular investment of a relatively small amount of money.

Scott.

[LittleDorrit]

Anyone tried to buy these online? (I know I can ring up.)
My platforms present the following messages:-

ii interactive investor - purchases not allowed as no KID available.

iweb- purchases allowed if I tick a box saying that I have read the KID, but no KID available.

Hargreaves Landsdown - the symbol BNKR has disapeared from their system.

[ADrunkenMarcus]

It's back (on HL).

And showing a 20% dividend yield. If only!

Best wishes

Mark.

[LittleDorrit]

Confirmed: I guess no one picked up that the ISIN reference number was changing.

[richfool]

An Edison report on Bankers IT:

https://www.edisongroup.com/wp-content/ ... goes-4.pdf

[richfool]

A more recent (May 23) report on Bankers IT from Edison, with useful performance related comparisons to its peers:

3 May 2023

The Bankers Investment Trust — Well positioned for the current environment

The Bankers Investment Trust (BNKR) has been managed by Alex Crooke, co-head of equities at Janus Henderson Investors (JHI), since July 2003. It can be considered as a ‘one-stop shop’ for global equity exposure as the fund is made up of six geographic portfolios (sleeves), which harness the talent of JHI’s regional specialists. Crooke (in conjunction with the board) sets BNKR’s asset allocation and manages its gearing. He believes that inflation will remain elevated, and that future shareholder total returns will be more balanced between income and capital growth, which will play into the trust’s strengths. While BNKR’s income growth lagged the rate of UK inflation in FY22, the manager is confident in the prospects for the trust’s income generation. He highlights BNKR’s top 10 holdings, which are dominated by US companies; higher income from these businesses is supporting the trust’s overall income stream. BNKR has paid an annual dividend for the last 132 years, and FY22 marked the 56th year of consecutive growth.
Melanie Jenner

Written by

Mel Jenner

Director, Investment Trusts

BNKR’s performance over the last decade (to end-April 2023)

Source: Refinitiv, Edison Investment Research

The analyst’s view

An environment of more balanced shareholder returns should favour BNKR’s dual mandate of above-market capital growth and annual dividend growth above the level of UK inflation. While the trust has lagged the performance of its global benchmark, primarily due an underweight US exposure, a market that has outperformed global equities for the majority of years over the last decade, BNKR’s absolute returns are very respectable. Over the last 10 years, it has generated annual NAV and share price returns of 9.9% and 9.1%, respectively. Data from JHI show that an inflation-adjusted £10k invested in the trust in 1973 would have grown to c £114k by 2022.

Scope for a higher valuation

BNKR’s discount has been in a widening trend since early 2022. There is scope for a higher valuation if the trust can narrow the performance gap versus its benchmark. However, to provide some perspective, it has above-average total returns versus the 13 funds in the AIC Global sector over the last one, three and five years. BNKR’s 10.9% discount to cum-income NAV is wider than the 2.4% to 7.9% range of average discounts over the last one, three, five and 10 years.

NOT INTENDED FOR PERSONS IN THE EEA

The manager’s view: Expecting more balanced returns

Alex Crooke comments that FY22 (which ended on 31 October 2022) was a tough period, and one of the hardest during his tenure at BNKR, with underperformance versus the benchmark. He says that investors are used to falling markets as a result of economic and financial crises; however, the 2022 downturn was different. Stock markets declined due to the rapid rise in inflation, to levels not seen since the 1980s, and central banks were forced to aggressively increase interest rates to try to combat higher prices. Crooke notes that in this challenging market environment even quality names underperformed, either due to being over-owned or because their valuations were too high. He comments that energy was the only place to hide in 2022 and BNKR has an underweight position compared with its benchmark.

Chinese equity returns were very poor last year because of the country’s zero-COVID approach, but the market rebounded in November 2022 after the policy pivot and rapid reopening of the economy. The manager highlights the relatively strong performance of the UK market in 2022, which was supported by its defensive names and dollar strength boosting multinational companies’ overseas earnings. Crooke explains that BNKR’s growth sleeves, North America, China and Europe, suffered as investor preference was for value shares, although growth shares have outperformed over the longer term. During 2022, the shares of major-cap companies outperformed, while those of small- and mid-cap businesses lagged, primarily due to valuations derating rather than earnings disappointing.

Crooke believes that inflation rates will come down further, but tight labour markets with wage growth and low unemployment, and savings accumulated during the global pandemic yet to be fully spent, mean that inflation is likely to remain above central bank targets. The manager says that in the United States, while interest rates could be close to peaking, they could stay higher for longer; he considers it unlikely that the Federal Reserve will return to its prior very low interest rate policy.

Future shareholder returns are likely to be more balanced between income and capital, rather than capital growth dominating, as has been the case in recent years, opines Crooke. He expects US outperformance will fade, having outpaced the world market for nine years over the last decade. The US market has been supported by the performance of large-cap technology stocks and these businesses are now facing increased regulatory scrutiny. The manager considers that there could be a faster economic recovery in Europe than in the United States and Europe could deliver superior earnings growth. Crooke believes that BNKR, with its dual mandate of capital and income growth, is set up nicely for an environment of more balanced shareholder returns.

https://www.edisongroup.com/research/we ... %20Release

In that Global Growth sector, I hold Brunner, Alliance and a recent addition MNP.

[scotia]

looking at a 5 year total return graph (from Hargreaves Lansdown), BNKR kept close to a world tracker until January 22, then it has dropped off. So the 5 year total return is 24.4%, compared to a world tracker (VWRL) 47.9%, and a developed world tracker (VEVE) of 52.1%. Its dividend is currently a modest 2.3%, slightly above the 1.9% to 2% of the trackers.
Hence I was surprised in the performance comparison listed above

it has above-average total returns versus the 13 funds in the AIC Global sector over the last one, three and five years.

Does it suggest that there are really some very poor performers in the AIC Global sector?
I hold VWRL and VEVE, but not BNKR

[scotia]

Hence I was surprised in the performance comparison listed above

it has above-average total returns versus the 13 funds in the AIC Global sector over the last one, three and five years.

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

[Itsallaguess]

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

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