Bankers IT manager bullish on outlook for equity market

The manager of the Bankers investment trust has reduced the portfolio's fixed income holdings in the view the outlook for equity returns is superior.

Over the six months to 30 April, bond exposure in the portfolio fell from 4.2% to 1.3%. Chairman Richard Brewster says: "The fixed interest portfolio was purchased in late 2008 at a time when we held significant amounts of cash and as corporate bond yields rose into double digits. "While not quite picking the bottom, the subsequent performance in terms of income and capital from the bonds has far outstripped the returns from holding cash. "As dividend growth from equities resumes, it is our view the prospects for equity returns look better than those for fixed interest. Therefore w...