15th Jan 2020 18:03
(Alliance News) - Bankers Investment Trust PLC on Wednesday said that it marginally outperformed its benchmark index in financial 2019 despite significant volatility in global equity markets.
The investment trust said its net asset value total return, with dividends reinvested, was 12.1% for the year to October 31, slightly outperforming the FTSE World Index total return of 11.7%, in sterling terms.
Bankers NAV per share grew to 948.7 pence as at October 31 from 865.8p a year ago. Share price return also increased after the share price advanced to 927.5p from 835.0p the year prior, slimming the NAV discount to 2.2% from 3.6%.
The trust recommended a final quarterly dividend of 5.35p per share, giving a total payout of 20.90p for financial 2019, up from 19.72p paid a year ago. The investment trust forecast dividend growth of 3.0% in financial 2020.
Bankers said that global markets were volatile due to concerns that interests rates would rise due to the US Federal Reserve's policy and the US-China trade dispute. The Eurozone and UK were affected by the uncertainty regarding the UK's exit from the European Union and this continued to weigh on business prospects and investor sentiment.
However, the trust said it took advantage of the relatively high valuations of most equity markets and reallocated cash to other regions. The company said that all its regional portfolios - apart from its direct emerging market portfolio which was sold down - delivered strong absolute returns and outperformed their respective local benchmarks over the financial year.
Looking ahead, Bankers noted that global economic growth remained positive, but appeared to be slowing.
"Corporate earnings growth stalled in 2019, but is currently expected to regain some momentum in 2020. Central banks have adopted a more accommodative stance to counter rising risks to growth and elusive inflationary pressures, but they cannot remain accommodative indefinitely and the long term consequences of their policies are unknown," said Bankers Chair Sue Inglis.
"The risk of an imminent recession now seems low, but cannot be completely discounted," she added.
Shares in Bankers closed 0.4% up at 1,020.00p each on Wednesday in London.
By Ife Taiwo; [email protected]
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