The Bankers Investment Trust PLC: Half-Year Results 2023
Portfolio Manager, Alex Crooke discusses the half-year results for The Bankers Investment Trust, including the performance and dividend outlook. He also discusses and the implications and opportunities of China reopening, artificial intelligence and interest rates.
2 minute watch
- The Company delivered a strong net asset value total return of 8.1% and a share price total return of 5.4% over the six months ended 30th April 2023, outperforming the FTSE World Index total return of 3.5%. The Company’s portfolio benefitted as equity markets fared better than last year.
- The majority of the regional portfolios, with the exception of Asia Pacific and China, outperformed their respective benchmark indices.
- Tighter monetary conditions, driven by increasing interest rates and bond sales from central banks, have a dampening effect on economic activity. However, the real economy is actually weathering these conditions well, with many companies having low levels of debt and possessing pricing power, while consumers are benefitting from wage growth or using savings to bolster spending.
Source: Morningstar as at 31/03/2023. All performance, cumulative growth and annual growth data is sourced from Morningstar.
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Please read the following important information regarding funds related to this article.
- Global portfolios may include some exposure to Emerging Markets, which tend to be less stable than more established markets. These markets can be affected by local political and economic conditions as well as variances in the reliability of trading systems, buying and selling practices and financial reporting standards.
- Where the Company invests in assets that are denominated in currencies other than the base currency, the currency exchange rate movements may cause the value of investments to fall as well as rise.
- This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
- Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
- The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
- Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
- The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
- The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.
- Using derivatives exposes the Company to risks different from - and potentially greater than - the risks associated with investing directly in securities. It may therefore result in additional loss, which could be significantly greater than the cost of the derivative.
- All or part of the Company's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.