Bankers (BNKR) has announced its interim results for the half year ended 30 April 2024. The trust delivered a strong NAV total return over the six months of 17.5% (2023: 8.1%) and a share price total return of 21.5% (2023: 5.4%), both returns outperforming the benchmark index return of 16.6% (2023: 3.5%). The company’s Japanese exposure was a key contributor to returns. This rebound in performance follows a particular poor performance during 2023 that led to the board initiating a strategic review. This has led to the decision to slim down Bankers’ global equity portfolio to focus on its best ideas.
During the review, it was observed that Bankers’ portfolio has grown the number of stocks and regions that it is invested in over the past 10 years and, despite this offering the benefits of greater diversification, it was felt that the portfolios as smaller holdings were not improving performance and the trust has also encountered ‘conflicts’ that arise from companies being dual-listed, mergers and acquisitions as well as changing the dynamics of sectors.
The decision has therefore been made to concentrate the portfolio with a greater focus on best ideas. The number of regions that Bankers invests in will be reduced to four: North America, Pan Europe (including the UK), Pan Asia (excluding Japan), and Japan. The trust will continue to invest directly in the UK and Chinese markets but with a single investment team overseeing these regions. The belief is that this will provide greater scope to invest more capital in the best companies.
Under the supervision of lead manager Alex Crooke, Jamie Ross will manage the Pan European portfolio and Sat Duhra will manage the Pan Asian portfolio. Ross became the deputy manager of Bankers following retirement of Mike Kerley recently.
The aim is to increase the amount of capital in the managers best ideas by reducing the number of holdings to around 100. Bankers will target regional portfolios of 20 investments, with slightly more in the US market as it is a particularly deep market with significantly more listed companies and investment opportunities as a result. It is expected that the move to the more concentrated portfolio to be substantially complete by the end of October 2024.