While Henderson's Bankers Investment Trust was not left unscathed by last year's turmoil, the fund did manage to increase its dividend by 8 per cent, which manager Alex Crooke says was made easier by the fact that investment trusts can hold cash reserves and call on these in times of reduced liquidity.
Mr Crooke aims to maintain regular dividend growth by investing in a portfolio of internationally diversified high-end equities. He says he is sticking to the "quality stuff" because he believes 2009 will bear witness to more companies defaulting. The fund is buying into companies in the telecoms, healthcare and industrial sectors, but steering well clear of any financials.
Mr Crooke is worried about European and Japanese companies - given their poor culture of paying dividends - and expects these geographical areas to be the first to cut dividends when times get tough. He is therefore shifting his focus more towards putting money into the UK and looking for growth opportunities in the Far East.
Alan Brierley, director of investment companies at Collins Stewart, says Mr Crooke has constructed an impressive performance record since assuming managerial responsibility in 2003. During this period, the net asset value (NAV) total return has outperformed the global growth peer group by around 160 basis points compound. He adds: "Given our expectations of further weakness in global equity markets, we like the relative defensive qualities afforded by the current portfolio and cash balances."
| BANKERS INVESTMENT TRUST (BNKR) | |||
|---|---|---|---|
| PRICE | 309.25p | NAV | 337.1 |
| SIZE OF FUND | £434m | PRICE DISCOUNT TO NAV | -9.52 |
| No OF HOLDINGS: | 1 YEAR PERFORMANCE | -23.83 | |
| SET UP DATE | 29 Sep 72 | 3 YEAR PERFORMANCE | -5.95 |
| MANAGER START DATE | 31 Aug 00 | 5 YEAR PERFORMANCE | 3.61 |
| TURNOVER | na | TOTAL EXPENSE RATIO | 0.71% |
| VOLATILITY | na | YIELD | 3.626 |
| TRACKING ERROR | na | MORE DETAILS | henderson.com |
| SHARPE RATIO | -0.51 | ||
| TOP TEN HOLDINGS | % |
|---|---|
| BP | 4 |
| Vodafone | 2.4 |
| British American Tobacco | 2.1 |
| GlaxoSmithKline | 2 |
| Royal Dutch Shell | 2 |
| Catlin | 1.9 |
| HSBC | 1.9 |
| Petrol Brasileiros | 1.5 |
| BG Group | 1.5 |
| Mitsubishi Ufj Financial | 1.3 |
| SECTOR BREAKDOWN | Percentage |
|---|---|
| Financials | 19.4 |
| Oil & Gas | 13.8 |
| Industrials | 12.3 |
| Consumer Goods | 8.2 |
| Health Care | 7.9 |
| Consumer Services | 7.6 |
| Telecommunications | 5.6 |
| Basic Materials | 4.4 |
| Utilities | 4.3 |
| Technology | 3.8 |
| Cash & Fixed Interest | 12.7 |
Source: Fact Sheet, Morningstar & Datastream
