25th Jun 2025 10:03
(Alliance News) - Bankers Investment Trust PLC on Wednesday said it underperformed its benchmark in its first half year amid heightened market uncertainty, but was still able to moderately increase its dividend.
The London-based investor said its net asset value total return over the six months to the end of April was negative 4.0%, compared with the benchmark FTSE World Index's total return of negative 2.6%.
NAV per share decreased 3.2% to 121.5 pence at the end of April, from 125.5p a year ago.
Shares in Bankers Investment Trust were up 0.7% at 117.60 pence in London on Wednesday morning.
A first interim dividend of 0.686p per share was paid at the end of May, up 2.1% from 0.672p a year ago. The company has declared a second interim dividend of 0.686p, also up by 2.1%.
Bankers Investment Trust said it expects its dividend for the full year to be at least 2% above the total dividend paid in 2024.
"This modest forecast reflects the current uncertainty in the market's forecasts for corporate profits and therefore dividends," the company added.
Chair Simon Miller said most of the underperformance in the trust's portfolio happened in November, after a sharp rise in US stocks following the election of Donald Trump.
"Over the remainder of the period, the portfolio outperformed its benchmark, and this outperformance continued through May," Miller added.
Net revenue for the six months was GBP12.6 million, down 21% from GBP15.9 million. The company said this was equivalent to 1.16p per share, down 12% from 1.31p.
It said it expected this reduction in revenue as a result of increasing investment in growth stocks.
"Companies in the technology and healthcare sectors have significant growth opportunities and are prioritising investment spending over dividends," Miller noted.
It expects profit to accelerate over time and lead to higher dividends.
Looking ahead, Miller said the trust hopes the US will agree a "reasonable level of tariffs with key trading partners".
He added: "However, if the ongoing uncertainty extends through the summer, this will impact growth and ultimately profits. It would be premature to write off the US stock market at this point, given further reforms could well support growth in the economy."
By Michael Hennessey, Alliance News reporter
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