Bankers Investment Trust posts NAV growth and dividend rise amid fund manager transition

Steady NAV growth outpaces global benchmark

The Bankers Investment Trust PLC (NZX:BIT) has delivered a solid performance in the first half of its 2026 financial year, posting a net asset value (NAV) total return of 3.7% to 30 April. This outpaced the FTSE World Index’s 5.5% return on a total return basis, when factoring in dividends reinvested. The share price rose 6.5%, further highlighting investor appetite amid a volatile geopolitical backdrop.

Chair Simon Miller noted that despite ongoing tensions, including US trade tariff fluctuations and conflict in the Middle East, corporate profits and economies have shown resilience. The trust’s overweight position in Japan was a notable contributor, benefiting from political reforms and strong wage growth there.

Dividend growth continues unbroken for nearly six decades

The trust declared a second interim dividend of 0.707p per share, up 3.1% on the prior year’s equivalent, maintaining its remarkable record of 59 consecutive years of dividend growth. The Board expects full-year dividends to rise by at least 3% compared to 2025, underpinning the trust’s commitment to delivering income alongside capital appreciation.

Portfolio consolidation and thematic focus on AI and energy

Janus Henderson’s management team has refined the portfolio, reducing holdings from around 100 to approximately 80 stocks to concentrate on high conviction ideas. This unification aligns with a thematic investment approach targeting long-term structural trends such as artificial intelligence, technological innovation, demographic shifts, and the energy transition.

Semiconductor companies like Micron Technology, Applied Materials, and Taiwan Semiconductor Manufacturing Company (TSMC) were among top contributors, benefiting from surging AI-driven demand. Conversely, software and internet platforms faced headwinds amid fears of AI disruption, with names like Zscaler and Netflix underperforming during a brief period of market jitters dubbed the 'SaaSpocalypse'.

Fund manager transition marks end of an era

After 23 years at the helm, fund manager Alex Crooke announced he will retire in December 2026. Crooke’s tenure delivered an impressive annualised NAV total return of 11%, exemplifying the trust’s long-term investment philosophy. Richard Clode, currently co-managing the portfolio, will assume full responsibility thereafter. The Board expressed full confidence in Clode’s ability to maintain the trust’s performance trajectory.

Gearing and risk management amid geopolitical uncertainty

The trust maintained gearing at 5%, balancing an optimistic outlook with caution given ongoing geopolitical risks, including elevated oil prices due to the Strait of Hormuz blockade. The Board expects market volatility to persist, especially with the US midterm elections approaching, but remains hopeful for easing tensions in the Middle East and Russia/Ukraine conflicts.

Looking ahead, the trust is exploring potential policy changes to invest in private companies before public listings, reflecting evolving market dynamics and the scale of companies staying private longer. Share buybacks continued, with nearly 56 million shares repurchased into treasury during the half-year at a cost of £75 million, supporting shareholder returns.