Launched in 1888 by Glyn, Mills & Co – which became part of the Royal Bank of Scotland in 1969 – Bankers is one of the oldest investment trusts in existence. Since 2003 it has been lead managed by Henderson Global Investors’ Alex Crooke, who heads their Global Equity Income team and has 25 years of relevant investment experience. Various segments of the portfolio are under the control of regional managers at the firm, which sets Bankers apart from many of its Global peers.
Mr Crooke, who presented at our office in July, describes his management style as value-based, selecting stocks he believes are undervalued by the market. Within this, he may also take a more growth-orientated approach should attractive opportunities present themselves; and he applies a macroeconomic overlay to position the portfolio according to his outlook on the global economy. This flexibility has contributed towards Bankers’ excellent track record over the past decade, which has in turn led to a narrowing of the discount at which its shares trade (to the value of its underlying assets) from 16% to 6% today.
Bankers’ dividends are more than twice covered by its revenue reserves; in other words, the portion of its retained profits that have not yet been distributed to shareholders. It is also on course to declare its 50th consecutive year of dividend increases; and its diversified portfolio and large revenue reserves put it in a strong position to provide investors with a sustainable yield going forward.
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