Bankers 01 October 2019
Disclosure – Independent Investment Research
This is independent research issued by Kepler Partners LLP. The analyst who has prepared this research is not aware of Kepler Partners LLP having a relationship with the company covered in this research report and/or a conflict of interest which is likely to impair the objectivity of the research and this report should accordingly be viewed as independent.
Bankers offers investors capital and income growth from a fund of funds approach to global equities. With £1.22bn net assets, the trust is one of the largest and more liquid in the AIC Global sector.
Alex Crooke has been at the helm of the portfolio since 2003, setting geographical allocations for the portfolio, with each of the regional sub-portfolios run by a specialist at Janus Henderson. Each of the major sub-portfolios will typically hold between 25-30 stocks, principally looking for cash generative companies that will grow their dividends going forward.
BNKR has a strong track record for capital appreciation, although this has been more varied in recent times. More notably, the trust’s standout characteristic is its dividend growth track record. The company has grown its dividend every year for the past 52 years, and forecasts another increase of 6% for the current year. Furthermore, the company has revenue reserves equal to 1.8x the annual dividend.
Currently the trust is trading on a discount of 1%.