The Bankers Investment Trust in 60 seconds

Edison has recently published a note on The Bankers Investment Trust (BNKR), which offers investors a one-stop shop for global equity exposure, with a dual focus on growth and income. The trust has grown its dividend for 57 straight years and dividend growth has outpaced inflation over the long term. This should appeal to investors seeking regular, rising, inflation-proof income. The board expects dividends to rise by at least 5% in FY24. BNKR’s board recently indicated that it will adopt a more flexible approach to using revenue reserves, a move that will enable the manager to access a broader pool of investments. This greater flexibility has the potential to deliver better capital returns, while ensuring the trust keeps delivering dividend growth. Indeed, performance has already begun to improve – the trust outperformed the market in the six months to end April 2024. BNKR’s discount to NAV of around 11% is much wider than its historical average of less than 4% and has scope to narrow back towards its longer-term average as interest rates begin to fall, market conditions improve and the trust’s performance benefits accordingly.