The Bankers Investment Trust PLC
Investing in bright ideas around the world
Annual Report 2024
Contents
Strategic report
01 Who we are
02 Delivering consistent value
03 Flexible and pragmatic global investing
04 Performance highlights
06 Chair’s statement
08 Fund manager’s report
10 Investing in action
11 A snapshot of our global portfolio
12 Regional portfolio manager reports
12 Pan Europe
14 North America
16 Japan
18 Pan Asia
20 Our portfolio holdings
22 Our approach to Environmental,
Social and Governance (ESG) matters
26 Our Manager: Janus Henderson Investors
27 Business model
30 Measuring our performance
31 Managing risks
33 Promoting the success of the Company
37 The Company’s viability
Governance
39 Directors and fund managers
42 Directors’ report
44 Corporate Governance report
51 Audit and Risk Assurance Committee
report
54 Management Engagement Committee
report
55 Marketing Committee report
56 Nominations Committee report
58 Directors’ Remuneration report
61 Statement of Directors’ Responsibilities
62 Independent Auditor’s report
Financial statements
69 Statement of Comprehensive Income
70 Statement of Changes in Equity
71 Statement of Financial Position
72 Cash Flow Statement
73 Notes to the financial statements
Additional information
92 Glossary
93 Alternative Performance Measures
95 General Shareholder Information
96 Distribution of Assets, Rates of Exchange,
Historical Record
97 Corporate Information
www.bankersinvestmenttrust.com
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insights about the Company:
About us
We invest in a select group of around
100 stocks across the globe.
These portfolios are more selective than an
equivalent single region portfolio – offering
shareholders a genuinely unique investment in each
region. Regional stocks are selected by four local
fund managers, each running a distinct regional
portfolio. Experts in their markets, investing locally
and seeking the best opportunities to grow both
capital and income.
Bankers’ strategic approach to investing aims to
smooth out market swings for our shareholders
while targeting capital and income growth.
Purpose
The Company’s purpose is to provide its
shareholders with a diversified and cost-effective
vehicle for growing capital and income.
See p.27 Business model
The Bankers Investment Trust aims to bring together the best
stock investment ideas from across the globe into one
portfolio. Local experts in regions across the world identify
investment opportunities, overseen by an experienced
global fund manager.
From its founding in 1888,
Bankers was created to give
smaller investors access to
global investment opportunities,
lowering the cost of investment
and managed by professional
investors. We’re still following
those principles today.”
Alex Crooke
See p.8 Fund Manager’s report
Capital Growth & Income
Awards
Alex Crooke
Fund Manager
Governance
Financial
statements
Additional
information
1
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Delivering consistent value
Regional expertise
in a global structure
Local experts offer a unique perspective
on the markets they understand best.
Meanwhile, Bankers’ fund manager
monitors the global investment outlook,
dynamically allocating money between
these experts and managing overall risk.
Offering an exclusive
range of local insights
in a single investment.
The very best ideas
Bankers’ focused portfolio of around 100
stocks consists of our portfolio managers’
best ideas for income and capital growth —
building regional portfolios that are
deliberately different to standalone funds.
Building a more
focused portfolio than
peers and index funds.
Follow the cash
The Company aims to offer consistent
returns over time. To achieve this, the
Company’s managers look to businesses
with established business models
that generate cash to fund growth and
dividend growth.
Bankers has grown
its dividend for
58 consecutive years.
Considered investing
Our portfolio, diversified across sector
and geography, aims to mitigate some
of the risk of investing in equities. The
Company’s income offers investors a
regular source of return, while the aim of
capital growth is to fuel inflation-beating
investment returns over the long term.
Seeking to limit
volatility through a
careful approach to
stocks and shares.
2
The Bankers Investment Trust PLC Annual Report 2024
The Bankers Investment Trust PLC
d
d
Flexible and pragmatic global investing
Investment Objective
Over the long-term, the Company aims to achieve capital growth
in excess of the FTSE World Index and dividend growth greater than
inflation, as measured by the UK Consumer Price Index.
Portfolio holdings
101 (2023: 183)
Investment focus
Growth &
Income
Regional focus
Global
Flexibility to invest globally
Bankers has the flexibility to invest in any geographic region and any sector with
no
set limits on individual or sector exposures.
See p.12 to 19 Regional portfolio manager reports
Ongoing charges
0.51%
As at 31 October 2024
Net Assets
£1.4bn
As at 31 October 2024
Yield
2.4%
As at 31 October 2024
See p.11 Portfolio structure
US
49.57%
Japan
13.55%
UK
6.82%
France
5.64%
Germany
5.21%
Switzerland
2.51%
India
1.93%
China
1.88%
Netherlands
1.87%
Other countries
11.02%
Governance
Financial
statements
Additional
information
3
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Performance
Total return performance
Performance highlights
Year to 31 October 2024
Discount with
debt at fair value
3
13.4%
(2023: 15.8%)
NAV per ordinary
share with debt
at fair value
3
127.9p
(2023: 111.0p)
NAV per share
total return
1, 3
21.1%
(2023: 5.2%)
Share price
total return
2
21.4%
(2023: -0.7%)
Share price
110.8p
(2023: 93.5p)
Total return performance to 31 October 2024
1 year % 3 years % 5 years % 10 years % 15 years %
NAV
1
21.1 12.9 50.3 168.7 364.1
Share price
2
21.4 4.4 33.7 148.3 365.7
Benchmark
4
26.1 29.5 78.8 174.0 341.1
Total return performance for 10 years to 31 October 2024
%
1 Net Asset Value (‘NAV’) total return assumes dividends reinvested and debt at fair value, see page 93
2 Share price total return is calculated using mid-market closing share prices
3 The alternative performance measures can be found on pages 93 to 94
4 FTSE World Index in Sterling terms. Although a composite benchmark is used for longer periods comprising the FTSE All-Share Index for the period
to 31 October 2017 and the FTSE World Index from 1 November 2017 to 31 October 2024
A glossary of terms can be found on page 92
Sources: Association of Investment Companies, Janus Henderson, LSEG Datastream
This indicates a key perfomance indicator (KPI). KPIs are used to measure the success of your Company in meeting its
objective and by the directors to evaluate the performance of the Manager.
Oct
2014
Oct
2015
Oct
2016
Oct
2017
Oct
2018
Oct
2019
Oct
2020
Oct
2021
Oct
2022
Oct
2023
Oct
2024
80
100
120
140
160
180
200
220
240
260
280
NAV per share
1
Share price
2
Benchmark
4
4
The Bankers Investment Trust PLC Annual Report 2024
Performance highlights continued
Dividend performance
Dividend total
1
Per share for the year
2.688p
(2023: 2.56p)
Dividend yield
2
At the end of the year
2.4%
(2023: 2.7%)
Revenue reserves
Per share
3
2.45p
(2023: 2.24p)
1 Comprising 3 interim dividends paid in May, August and November 2024 and a recommended final dividend of 0.672p due for payment on 28 February 2025
2 Based on the dividends paid or recommended for the year and the share price at the year end
3 The is calculated after the deduction of the third interim and final dividends
4 This represents the four ordinary dividends paid or recommended for the year to 31 October 2024 as compared to the previous year (see page 80 for
more details)
Dividend growth
4
For the year
5.0%
(2023: 10.0%)
Dividend growth over 10 years
81.6%
Years of consecutive
growth
58
Dividend growth over 10 years to 31 October 2024
Source: Janus Henderson, LSEG Datastream
0
20
40
60
80
100
Dividend growth rate (LHS) CPI growth rate (RHS)
2014
% CPI %
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
10
20
30
40
50
Governance
Financial
statements
Additional
information
5
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Simon Miller,
Chair
Highlights of the year
Net Asset Value
total return
+21.1%
(2023: 5.2%)
58
years of dividend growth
Dividend per
share growth
+5%
Chair’s statement
Dear Shareholder,
Performance
In the year to 31 October 2024, your
Company delivered strong absolute
performance with a net asset value
total return of 21.1% (2023: 5.2%) and
a share price total return of 21.4%
(2023: -0.7%). This underperformed
the FTSE World Index total return of
26.1% (2023: 5.7%). It is worth noting
that only a few investment funds
have outperformed our global
benchmark index this year.
Markets were dominated by returns
in the US, led once more by the
Magnificent Seven technology
companies. The US market rose by
30.3% in sterling terms during the year,
roughly double the return from
European and Japanese stocks over
the same period. Both stock selection
in the US and the Company’s relative
underweight to the US market
contributed to the underperformance.
Further discussion of performance is
contained in the Fund Manager’s report.
I believe that one of the benefits
for shareholders of the Company’s
approach to global investing is
exposure to market experts, based in
their regions. This was demonstrated
by the Japanese portfolio this year.
While most economies have suffered
in recent years from higher inflation,
the emergence of Japan from
decades of deflation has supported
their stock market. The declining
working age population is leading
to better wage growth. Japanese
companies are also improving
productivity and increasing return
on equity by paying out a higher
proportion of profits and buying
back stock. Our Japanese portfolio
was able to benefit from these
trends and outperformed the local
market during the year.
Portfolio changes
As reported in our half-year update,
the portfolio is now managed through
four regional sleeves: Pan Europe,
North America, Japan and Pan Asia.
The restructuring has concentrated
the number of holdings to
Real returns from regional experts
6
The Bankers Investment Trust PLC Annual Report 2024
approximately 100. The impact of
dedicating more capital towards the
best ideas in the portfolio can be
seen in the top 10 holdings amounting
to 22.8% of gross assets this year,
compared to 17.4% last year.
The allocation towards the US equity
market has increased from 40% a year
ago to 50% at the year end and is
currently 60% at the time of writing.
We hope to see improved performance
relative to the benchmark next year
as a result of these changes.
Revenue, dividends and
share buybacks
Revenue earnings per share of 2.63p
(2023: 2.72p) allows the Board to
recommend a final quarterly dividend
of 0.672p per share, resulting in total
dividends per share for the year of
2.688p (2023: 2.56p), an increase
over last year of 5%. The final dividend
will be paid on 28 February 2025 to
shareholders on the register of
members at the close of business
on 24 January 2025.
This will be the Company’s 58th
successive year of annual dividend
growth, the second longest record in
the investment trust sector. As
discussed in the half-year update,
the dominance of the low-yielding
US stocks over global markets has
meant our income mandate has put
the Company at some
disadvantage when it comes to
capturing future capital returns.
Revenue reserves will be used to top
up future dividends in the short to
medium-term in order to give the
Manager the flexibility to invest in
some of the lower-yielding sectors
of the market. The build-up in
revenue reserves over the past
decade will support these efforts.
The Company remains committed
to progressive dividend growth.
For the current financial year, the Board
expects to recommend dividend
growth of at least 2.0%, which is in line
with the forecast for UK Consumer Price
Index (‘CPI’) inflation in a year’s time
and equates to a full year dividend of
2.742p per share.
Discount management
In common with our investment trust
peers, the Company’s shares have
continued to trade at a wide
discount to net asset value. A total of
88,341,407 shares were bought back
in the year ended 31 October 2024
(2023: 60,618,929 shares were
repurchased). This activity is
beneficial to ongoing shareholders,
as shares are only purchased when
the Company’s shares are trading at
a wide discount thereby enhancing
shareholder value. The Company will
continue to buyback shares to be
held in treasury as appropriate.
Annual General Meeting
(‘AGM’)
I look forward to welcoming
shareholders to the Company’s AGM,
scheduled to take place at 12 noon
on Tuesday, 25 February 2025 at the
offices of Janus Henderson Investors
at 201 Bishopsgate, London EC2M 3AE.
Light refreshments will be served.
All voting will be on a poll and
therefore we would ask that you
submit your proxy votes in advance
of the meeting.
If you are unable to attend in
person, you can watch the meeting
live on the internet by visiting
www.janushenderson.com/bnkr-agm.
If you have any questions about
the Annual Report, the Company’s
performance over the year, the
investment portfolio or any other
matter relevant to the Company,
please write to us via email at
ITSecretariat@janushenderson.com
in advance of the AGM.
The Board is proposing a number
of changes to modernise the
Company’s articles of association as
summarised in the Notice of Meeting.
These changes are based on the
provisions of the Listing Rules and
ensure that best practice on
corporate governance is enshrined
within the Company’s articles.
Outlook
I have cautious optimism about
the future. The prospect for further
interest rate cuts on the back of
lower inflation gives credence to the
view that this year’s performance will
not be given up next year. The new
administration in the US appears
focused on growth and reform,
which will be welcomed by many
businesses there.
The large unknown next year will be the
effect of rising tariffs on global trade,
initiated by the US. I expect the worst-
case headline figures will be negotiated
downwards by many countries and a
stronger US dollar will ironically reduce
the impact of absorbing price rises for
non-US companies. Provided the
economic outlook prevails, Bankers is in
a strong position to take advantage of
a broadening out in markets.
Simon Miller
Chair
15 January 2025
I believe that one of the benefits for shareholders
of the Company’s approach to global investing
is exposure to experts, based in their regions.”
Chair’s statement continued
Governance
Financial
statements
Additional
information
7
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Fund manager’s report
The year started with optimism that, despite higher
interest rates, the world would avoid an economic
recession. The view that central banks had engineered a
soft landing carried equity markets to new highs through
the first half of the year. Once more, technology shares
and anything related to Artificial Intelligence (‘AI’) led
the way although the broader market, especially the
financials, did participate. In the summer, new job creation
slowed and inflation stopped its descent causing
a wobble in markets. This was amplified by negative news
coming out of Asia and Europe, as their economic growth
stalled. Investors sought new policies in markets like China
and Germany to stimulate growth but politicians offered
little to support their equity markets. Meanwhile in July the
Japanese currency reached breaking point and sharply
corrected against the US dollar, disrupting the Yen carry
trade. However, it did not take long for renewed optimism
to be established as interest rates in Europe and then the
US, finally started to be cut. Our financial year ended the
week before the US presidential election with markets at
all time highs, buoyed by the prospect of a Trump win.
The portfolio performed in line with the market until
mid-year when Asia and Japan both diverged in
performance from the rest of the world. Then Europe also
faded against the US following the collapse of the French
government. Finally, the US market left all others behind in
the run up to the presidential election. Our broadly
diversified portfolio has impacted returns, in a year when
the US market outperformed the rest of the world by over
10%. Stock selection was also affected by stock picking in
the consumer discretionary sector and health care.
Consumers were clearly struggling with higher inflation
and spending patterns have changed, impacting some
past winners like Nike, Burberry and Samsonite. Health care
stocks suffered from a sharp derating as investors
switched from defensive health care franchises to chase
the AI story. The technology underweight in the portfolio
was eliminated but not holding Nvidia proved painful for
relative performance. The company has strong new order
growth but the valuation is now assuming that doubling
sales growth and elevated margins carry on for a decade
ahead. This would be an unusual outcome in a historically
cyclical sector. Competition is also increasing from
in-house AI chips developed by the large technology
companies, such as Alphabet and Meta.
The portfolio turnover was exceptional this year and will
settle back next year. We have taken advantage of market
conditions and large block trades to reposition the portfolio
cost effectively, as well as raising the US allocation. The
reduction in stocks towards 100 holdings was completed in
October and the portfolio is more concentrated into the
investment team’s best ideas. The Chinese A share portfolio
was significantly reduced as we failed to see meaningful
government policy to revive the economy, retaining just
two holdings making electrical equipment and appliances.
Summary
• The Bankers Investment Trust achieved
NAV growth of 21.1% in the year to
31 October 2024.
• Over the year, the portfolio went though
a significant transition, reducing the
regional portfolios from six to four and
significantly dropping the number of stocks
held in the Company’s portfolio overall.
• In market terms, the year was marked
by volatility. Nearly all of the world’s
major markets saw substantial
fluctuations as a result of external
factors including policy, politics
and the interest rate cycle.
The reduction in stocks towards
100 holdings was completed in
October and the portfolio is more
concentrated into the investment
team’s best ideas.”
A year of change
8
The Bankers Investment Trust PLC Annual Report 2024
Income and gearing
The underlying level of dividend growth that each of the
companies we hold has broadly held up, although it is
apparent that the companies listed in the US increasingly
favour a share buyback over cash distributions to
shareholders. The US market now yields just over 1% and this
trend towards higher levels of capex and buying back
stocks is likely to affect future income growth from that
market. The overall investment income fell 6.9% during the
year, which reflects a higher proportion of the portfolio
invested in zero yielding securities, a higher allocation to
the US market and raising cash for the Company’s
buybacks. The declining number of shares in issue meant
that the Company’s earnings per share only fell 3.3% during
the year. The outlook for income essentially depends on
future corporate profits rising, although structurally there is
a shift amongst the wider investment community towards
prioritising capital return over dividends.
We expect corporate profits to
rise further next year while
interest rate cuts will ease the
pressure on consumers.”
The gearing at the year end was relatively low at 1.5% as
we sold down some positions in Asia and the UK late in the
year. We have subsequently increased gearing post the
year end. We also allowed the £20m loan facility with
SMBC Bank International to expire as we did not anticipate
utilising the facility while short term interest rates remain
high. For the moment we have sufficient levels of long-
term borrowings at a historically low average cost of 2.7%.
Outlook
The health of the US economy and the impact of the new
Trump administration dominates the outlook for global
equities. Experience tells us that seismic shifts in
economic growth are very rare and that we should
probably expect Trump’s key policies of tariffs,
deregulation and deportation of immigrants to have only
a modest effect on markets in the long term. Of course,
in the short term, there will be hyperbole from
commentators, both positive and negative, on the
outlook. Trump’s policies appear to be inflationary in
nature and so it is likely that higher short and more
importantly long-term rates than over the last twenty
years will curtail much of the optimism eventually. The
long-term challenge for the US market is the scale of
the budget deficit and whether investors will continue
to fund the US government at current yields.
Unlike the highly indebted governments around the
world, the companies we own have rarely been in better
health. They have generally locked in the low financing
rates a few years back and are benefiting from growing
levels of capex developing new products and
innovation in AI. We expect corporate profits to rise
further next year while interest rate cuts in Europe and
Asia will ease the pressure on consumers. The falling
return on cash and shorter dated bonds, will mean
equities remain attractive to investors despite the
increase in valuations we have seen this year. We
expect a broadening out of markets as the earnings
growth from those companies outside the handful of
large technology companies catches up and their
valuations look far more appealing.
Alex Crooke
15 January 2025
Performance attribution
Portfolio Performance Performance of the Index
26.12%
Performance of Equity Portfolio vs Benchmark
Gross Performance of the Portfolio
20.20
Other Factors Due to Gearing
2.22
Ongoing Charge
(0.51)
Timing Residual
(0.83)
0.88
Performance of Net Asset Value (total return)
21.08%
Source: Janus Henderson
Fund manager’s report continued
Governance
Financial
statements
Additional
information
9
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Investing in action
Theme – Electrification
As countries target net zero carbon emissions by
2050, huge investments will need to be made in
renewable electricity generation. Often overlooked,
though, will be the investment required in national
electricity grids to move the electricity from wind or
solar farms to the point of use.
Electricity demand is forecast to grow rapidly in the
coming decades as more cars become electric and
infrastructure for AI expands to meet demand.
We see a great opportunity in investing into
companies around the world that are in the value
chain modernising and expanding national
electricity grids. Annual investment is forecast to
double by 2030 and triple by 2050, while grid lengths
need to increase by 90%*.
Stocks
Company
% of
portfolio
Market
value
Siemens (Germany)
1.51% £22.1m
National Grid (UK)
1.41% £20.5m
Hitachi (Japan)
1.05% £15.3m
Schneider Electric (France)
0.96% £13.9m
Eaton (US)
0.73% £10.6m
Nari Technology (China)
0.69% £10.0m
Trane Technologies (US)
0.64% £9.3m
Power Grid (India)
0.42% £6.0m
See p.11 Portfolio snapshot
10
The Bankers Investment Trust PLC Annual Report 2024
What we focused on
Where we found investment ideas this year and
the portfolio’s key holdings in these themes.
Technology
We have focused on semiconductor equipment suppliers
in the Technology sector. Almost all cutting edge
semiconductors are made in Taiwan, but governments in
Europe, Japan and the US are investing to incentivise future
manufacturing in their regions. We are expecting strong
orders to be posted by companies like KLA (US), Taiwan
Semiconductor Manufacturing (Taiwan) and ASML
(Netherlands), which produce critical parts of the
semiconductor manufacturing supply chain.
Financials
We have maintained a significant exposure to banks,
especially retail banks with mortgage and deposit-taking
operations. Central banks have held interest rates higher
for longer than expected, which has benefitted our holdings
of banks such as Morgan Stanley, Unicredit and NatWest.
Health care
We believe that weight loss and reducing obesity will be
the key focus for government health programmes in the
coming decade. We hold the two leading providers of
weight loss drugs, Eli Lilly (US) and Novo Nordisk (Denmark),
which will both benefit from the demand for increased
drug availability and prescriptions.
Looking ahead
Consumer behaviour
We are looking into consumer spending patterns
around
the world to identify which holdings may be
at
risk from changing trends. Sharply rising prices in
recent
years have forced consumers to look for
better
value and defer purchases of large ticket
items.
We are assessing where sales may be due to
recover
and where sales may be permanently lower.
Focusing on India
Indian economic growth has slowed in 2024 but we
expect
higher growth in 2025. As such, we are
analysing
new investments in the financial sector
that
could benefit from a rise in growth.
Reference: *IEA, World Energy Outlook, 2022.
www.iea.org/reports/world-energy-outlook-2022/outlook-for-electricity
Real Estate 2.4% 0.8% Basic Materials
12.4% Consumer Discretionary
5.1% Consumer Staples
3.4% Energy
13.1% Health Care
15.0% Financials
Technology 27.0%
Telecommunications 1.3%
Utilities 3.1%
Industrials 16.4%
9
A snapshot of our global portfolio
Classification of Investments and Portfolio Weighting as at 31 October 2024
Regional breakdown
Geographical analysis as at 31 October 2024
Top 10 holdings
Rank Company
% of
portfolio
Market
value
£’000
1
Microsoft
4.49 65,307
2
Apple
3.20 46,595
3
Amazon
2.43 35,436
4
Broadcom
1.93 28,032
5
Alphabet
1.86 27,066
6
KLA Corp
1.85 26,961
7
CME
1.85 26,908
8
Visa
1.77 25,759
9
UnitedHealth
1.75 25,474
American Express
1.63 23,729
Total
22.76 331,267
Sector breakdown
Total Assets
£1.46bn
North
America
49.6%
Pan Europe
25.6%
Japan
13.5%
Pan Asia 11.3%
10
Governance
Financial
statements
Additional
information
11
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
UK
26.6%
France
22.0%
Germany
20.4%
Switzerland
9.8%
Netherlands
7.3%
Denmark
5.5%
Italy
5.1%
Belgium
2.0%
Spain
1.3%
Regional portfolio manager reports
Portfolio Manager
Jamie Ross
Jamie joined Henderson in 2007 and works in the
London office. He has been managing the Pan
Europe sleeve of the portfolio since 2018 and was
appointed Deputy Fund Manager in 2024.
Portfolio
As at 31 October 2024
Assets £372.4m
Allocation 25.6%
Income £15.4m
Total return (£)
Year to 31 October 2024
Bankers 16.4%
FTSE World Europe 16.6%
Geographical breakdown of region
Pan Europe
Review
The European portfolio marginally underperformed a
strong benchmark return. The year started with investors
concerned about weakening economic activity. This
concern gradually dissipated through the year as the
‘soft landing’ narrative gained traction and equity
markets rallied on this improved sentiment. Our best
performing positions included an Italian bank, UniCredit,
a British producer of meat products, Cranswick, and a
French engine manufacturer, Safran. A disparate group
of companies. Our worst performing positions included
some of our winners of the last few years, Novo Nordisk,
the Danish diabetes and obesity company, and ASML,
the Dutch semi-conductor equipment company.
The underperformance of these companies reflects
a change in market dynamics that occurred midway
through the year. We saw an abrupt sell-off in
technology shares and this had a knock-on impact
on other strongly-performing areas of the market.
We tend to look through these technical factors and
have maintained our positioning.
Activity
Towards the end of the year, the merger of the UK and
Continental European sleeves took place and this
resulted in a period of trading activity where we reduced
our UK holdings from 32 names to 6 and our Continental
European holdings from 31 to 18 names. This has resulted
in a high-conviction portfolio of 24 companies with broad
thematic and sectoral exposure. We remain focused on
sustainable free cash flow growth at a reasonable price.
The portfolio continues to be overweight to the UK market
compared to the benchmark, although at a reduced
level. The largest overweight sectors are Consumer
Discretionary and Technology, while the largest
underweights relative to the benchmark are Basic
Materials and Health Care.
12
The Bankers Investment Trust PLC Annual Report 2024
15.2% Consumer Discretionary
8.5% Consumer Staples
5.3% Energy
20.9% Financials
Technology 10.2%
Telecommunications 1.3%
Utilities 5.5%
Health Care 14.2%
Industrials 18.9%
Regional portfolio manager reports continued
A new position was initiated in the Swiss testing
company
SGS during the previous fiscal year, and
this
holding has been added to during the current
year.
SGS is a business capable of strong levels of
structural
growth, however they have struggled to
translate
this growth into profit margin progress;
this
is now changing. SGS operates in a highly
fragmented
industry and it is encouraging to see
signs
that SGS is starting to devote more capital
to
acquisitions.
Case study: SGS
Sector breakdown
Total Assets
£372.4m
Governance
Financial
statements
Additional
information
13
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Regional portfolio manager reports continued
North America
Portfolio Manager
Jeremiah Buckley
Jeremiah joined Janus in 1998 and works in the
Denver office. He has been managing the North
America sleeve of the portfolio since 2022.
Portfolio
As at 31 October 2024
Assets £721.4m
Allocation 49.6%
Income £10.5m
Total return (£)
Year to 31 October 2024
Bankers 20.3%
FTSE World North America Index 30.3%
Review
The North America portfolio underperformed the
benchmark over the year to 31 October 2024. The portfolio
returned 20.3% compared to 30.3% for the FTSE World North
America Index. Our underperformance versus the index
was driven by the overall underperformance of low
volatility and dividend growth style factors. Security
selection in consumer discretionary and semiconductor
sectors was negative as the best performers in these
areas of the market do not pay material dividends.
Markets saw positive performance during the period as
inflation metrics moderated enabling the Federal Reserve
to begin lowering interest rates while the labour market
and consumer spending remained strong. Market
performance was driven by strength in the Technology
and Financials sectors. The weakest performing sectors
were the more defensive sectors with Health Care, Energy
and Consumer Staples underperforming.
American Express, Morgan Stanley, Oracle, and Trane
Technologies all performed well and contributed to the
gain in the portfolio. Nike was the largest detractor to
performance during the period as competitors took share
in running and lifestyle athletic shoes. Accenture, Starbucks,
and Deere were also detrimental to overall performance.
Activity
New positions added during the period included Meta
Platforms, Booz Allen Hamilton, and Eaton. Meta Platforms
is a leading social media company that has accelerated
growth by using AI to improve the experience for both its
users, as well as the advertisers on its platforms. Booz
Allen Hamilton provides management and technology
consulting services to the defence, civil, and intelligence
markets and is seeing an acceleration in demand for its
differentiated simulation expertise. Eaton manufactures
engineered products for industrial, construction and
aerospace markets and is seeing strong demand from
datacentre construction and electricity grid investments.
Some of the positions that were exited during the period
included JP Morgan, Texas Instruments, and Automatic
Data Processing; all primarily due to the stocks
approaching our price targets. JP Morgan has benefited
from a strong recovery in capital markets and above
normal net interest margins. Texas Instruments has seen
weakening demand in the auto and industrial end
markets which has lowered earnings estimates for the
analogue semiconductor industry. Automatic Data
Processing was exited due to concerns about the impact
of AI on its future growth prospects.
14
The Bankers Investment Trust PLC Annual Report 2024
Utilities 2.6% 9.4% Consumer Discretionary
3.9% Consumer Staples
3.2% Energy
17.6% Health Care
6.5% Financials
Technology 36.9%
Telecommunications 2.0%
15.4% Industrials
Real Estate 2.5%
Regional portfolio manager reports continued
American Express was the strongest contributor to
performance
in the North America portfolio during
the
period as travel spending continued to recover
globally.
American Express gained share within the
higher
spending consumer segments globally,
notably
growing share of younger card holders
through
differentiated advertising and card benefits.
The
company’s value proposition has driven
customer
engagement and accelerated loan
growth.
The shares trade on a valuation discount to
the
market and yet are expected to grow earnings
above
the market.
Case study: American Express
Sector breakdown
Total Assets
£721.4m
Governance
Financial
statements
Additional
information
15
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Regional portfolio manager reports continued
Japan
Portfolio Manager
Junichi Inoue
Junichi joined Henderson in 2016 and works in the
Tokyo office. He has been managing the Japan
sleeve of the portfolio since 2017.
Portfolio
As at 31 October 2024
Assets £197.2m
Allocation 13.5%
Income £4.1m
Total return (£)
Year to 31 October 2024
Bankers 17.3%
FTSE World Japan Index 15.2%
Review
The Japan sleeve returned 17.3%, outperforming the FTSE
Japan Index, which returned 15.2%. The index return in local
currency was 22.4%. Unfortunately, due to the prolonged
wide gap in interest rates, the yen continued to
depreciate, negatively impacting the overall return.
Japan continued to witness a mild inflation trend, with the
core Consumer Price Index (‘CPI’) consistently surpassing
the Bank of Japan’s target of 2.0%. Wage growth began to
exceed CPI, giving the Bank of Japan confidence to end the
negative interest rate policy in March and to implement a
further hike in July. Corporate governance reform has been
accelerating. This year has witnessed more companies
reducing cross-shareholdings to improve capital efficiency.
The total return from the equity market continued to grow
faster than earnings per share growth.
Corporate earnings are registering all-time highs, helped
by inflation and yen depreciation. Major indices exceeded
previous highs recorded during the late 1980’s Japanese
bubble, however valuations remained attractive. Despite
robust performance for most of the year, there was an
indiscriminate sell-off during the third quarter, which
caused short-term underperformance for the portfolio.
Although the index level returned to the pre-crash level,
risk appetite does not yet seem to have fully recovered.
Hitachi was the largest positive contributor to
performance as its subsidiary Hitachi Energy reported a
strong order book amid growing global energy demand.
Ebara, an industrial conglomerate with a rapidly growing
presence in semiconductor equipment manufacturing,
performed well due to a recovery in the semiconductor
market. Conversely, NTT and Seven & I Holdings were the
leading detractors. NTT suffered from a margin squeeze
due to higher costs and tougher competition, while
Seven & I Holdings struggled to maintain profit in the
US as higher petrol prices impacted general spending
by consumers.
Activity
The selection process continued to focus on high-quality
businesses that can create shareholder value through
generating high levels of cash return on invested capital.
The portfolio’s positions in the financial sector were
increased by adding Resona Holdings, believing their share
price had not adequately priced in the positive impact of
interest rate normalisation. We also sold positions in
Nippon Telegraph and Telephone and Seven & I Holdings,
after their original investment cases had been derailed.
16
The Bankers Investment Trust PLC Annual Report 2024
Real Estate 5.0% 5.6% Basic Materials
21.0% Consumer Discretionary
4.7% Consumer Staples
20.3% Financials
Technology 14.6%
Health Care 5.6%
Industrials 23.2%
Regional portfolio manager reports continued
Resona Holdings is one of the portfolio’s new
investments
this year. This super-regional bank, like
all
banks in Japan, has suffered over the last eight
years
from the Bank of Japan’s negative interest rate
policy.
Now interest rates are increasing, they are
seeing
a significant positive impact on profitability,
as
deposits transition from a cost burden to a profit
generator.
Loan demand has also increased on the
back
of mild inflation, which we believe the market
continues
to underestimate.
Case study: Resona Holdings
Sector breakdown
Total Assets
£197.2m
Governance
Financial
statements
Additional
information
17
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
India
17.1%
China
16.6%
Taiwan
16.2%
Hong Kong
14.7%
South Korea
12.5%
Australia
10.3%
Singapore
7.1%
Indonesia
5.5%
Regional portfolio manager reports continued
Pan Asia
Portfolio Manager
Sat Duhra
Sat joined Henderson in 2011 and works in the
Singapore office. He has been managing the Pan
Asia sleeve of the portfolio since 2022.
Portfolio
As at 31 October 2024
Assets £164.3m
Allocation 11.3%
Income £7.7m
Total return (£)
Year to 31 October 2024
Bankers 10.5%
FTSE All-World Asia Pacific
(ex Japan) Index 21.5%
Geographical breakdown of region
Review
The Pan Asia portfolio rose 10.5% over the period,
underperforming the FTSE All-World Asia Pacific (ex Japan)
Index which rose by 21.5%.
The underperformance was due to the underweight position
in China as a series of measures to support the property and
equity market were released towards the end of the period
under review creating strong returns for domestically
focused names. The weighting in Australian energy and
materials also detracted following weaker China demand.
The biggest positive contributors were Taiwan technology
holdings of Hon Hai Precision, MediaTek and Taiwan
Semiconductor Manufacturing (TSMC). Meituan, Goodman
Group and Samsung Fire & Marine Insurance were also
key contributors.
BHP Group, Pilbara Minerals and Woodside Energy were
the key detractors along with a number of China
consumer names Anta Sports, Netease and PDD Holdings.
Samsonite was also a key detractor following weaker
operating performance as competition increased.
Activity
During the period we increased the Taiwan and Indian
exposure; the two best performing markets over the period.
In Taiwan we added technology names Hon Hai Precision
and MediaTek, while increasing the position in TSMC. The
opportunity from the global AI infrastructure build-out is
compelling for these key global technology players.
In India we added HCL Technologies, an IT services
company, and GAIL, a gas pipeline infrastructure owner.
GAIL is increasing the utilisation of its gas network as
economic activity picks up.
In Australia we sold the positions in Woodside Energy,
BHP Group and Pilbara Minerals given the lower demand
outlook from weaker economic growth in China. The
global demand for iron ore fell and lithium supply
increased alongside weakening demand. These sales
funded a new position in Goodman Group, a high quality
developer of datacentres which performed strongly as
demand for datacentres is expected to increase.
We repositioned the Chinese listed holdings in the
portfolio away from more cyclical names that are
exposed to the current macro-economic slowdown and
instead focused on structural growth themes which are
driven by domestic demand. Nari Technology is an
example of a strong domestic name that produces
software for the grid network increasing capacity and
efficiency as power demand rises.
18
The Bankers Investment Trust PLC Annual Report 2024
Utilities 3.7% 9.0% Consumer Discretionary
3.2% Consumer Staples
4.0% Energy
33.1% Financials
Technology 36.1%
Industrials 6.1%
Real Estate 4.8%
Regional portfolio manager reports continued
Taiwan Semiconductor Manufacturing Company
(TSMC)
is the largest company in Asia. As the leading
manufacturer
of semiconductors it occupies a
critical
position in the global technology supply
chain.
It is a beneficiary of accelerating demand
driven
by high performance computing to include
personal
computers, games consoles and servers
along
with smartphone and automotive segments
and
more recently the explosive demand for
AI
infrastructure. As the dominant global
semiconductor
manufacturer, TSMC will be involved
in
whatever technology dominates.
Case study: TSMC
Sector breakdown
Total Assets
£164.3m
Governance
Financial
statements
Additional
information
19
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
All securities are equity investments
# Not held last year
Convertibles and all classes of equity in any one company being treated as one investment
Our portfolio holdings
Portfolio holdings as at 31 October 2024
Ranking
Company Country
Valuation
2023
£’000
Purchases
£’000
Sales
proceeds
£’000
Appreciation/
(depreciation)
£’000
Valuation
2024
£’000
% of
portfolio2024 2023
1 1 Microsoft US
57,500 2,797 (2,989) 7,999 65,307 4.49
2 2 Apple US
30,506 19,052 (8,857) 5,894 46,595 3.20
3 #Amazon US
– 33,722 – 1,714 35,436 2.43
4 82 Broadcom US
7,203 13,704 – 7,125 28,032 1.93
5 #Alphabet US
– 22,815 – 4,251 27,066 1.86
6 5KLA Corp US
20,579 1,142 (1,990) 7,230 26,961 1.85
7 18 CME US
12,928 13,084 – 896 26,908 1.85
8 7Visa US
19,047 5,202 (1,706) 3,216 25,759 1.77
9 4UnitedHealth US
21,616 3,774 – 84 25,474 1.75
10 12 American Express US
14,457 6,210 (9,159) 12,221 23,729 1.63
11 #Meta US
– 16,301 – 6,959 23,260 1.60
12 20 Chevron US
12,592 11,233 – (1,026) 22,799 1.57
13 49 AbbVie US
9,136 9,700 (1,497) 4,887 22,226 1.53
14 #Siemens Germany
– 21,549 – 569 22,118 1.52
15 51 Compass UK
8,924 12,287 (1,470) 2,102 21,843 1.50
16 # Amgen US
– 22,630 (1,815) 67 20,882 1.43
17
11 Novo Nordisk
Denmark
15,735 6,380 (2,572) 948 20,491 1.41
18 #National Grid UK
– 21,444 – (982) 20,462 1.41
19
55 SGS
Switzerland
8,784 9,671 – 1,842 20,297 1.39
20
9
TotalEnergies France
16,810 5,362 – (2,328) 19,844 1.36
21 54 Morgan Stanley US
8,831 8,665 (4,376) 6,655 19,775 1.36
22 73 UniCredit Italy
7,812 5,363 – 5,729 18,904 1.30
23 # American Electric Power US
– 17,931 – 456 18,387 1.26
24 85 Deutsche Boerse Germany
7,049 8,275 – 2,825 18,149 1.25
25 21 Oracle US
12,288 2,057 (3,319) 7,116 18,142 1.25
26 60 Hermes France
8,440 11,758 (2,950) 875 18,123 1.25
27 # Prologis US
– 19,378 – (1,528) 17,850 1.23
28 3 Accenture US
28,250 788 (12,473) 684 17,249 1.19
29 41 Eli Lilly US
9,556 3,601 – 3,907 17,064 1.17
30 10 Toyota Motor Japan
16,790 1,545 (1,176) (275) 16,884 1.16
31
#NatWest
UK
– 15,313 – 1,429 16,742 1.15
32 #Informa UK
– 17,087 – (502) 16,585 1.14
33 24 Roche Switzerland
11,416 6,730 (2,583) 724 16,287 1.12
34 40 Marriott International US
9,608 3,306 – 3,104 16,018 1.10
35 30 Sanofi France
10,419 4,910 – 649 15,978 1.10
36 # Johnson & Johnson US
– 15,624 – (2) 15,622 1.07
37 33 Hitachi Japan
10,313 – (3,669) 8,610 15,254 1.05
38 56 ASML Netherlands
8,770 7,684 – (1,357) 15,097 1.04
39 141 Stryker US
4,649 8,549 – 1,520 14,718 1.01
40
# Philip Morris International
US
– 14,520 – 187 14,707 1.01
41 # Verizon Communications US
– 14,483 – 213 14,696 1.01
42 43 Safran France
9,490 4,329 (3,322) 3,736 14,233 0.98
43 # Amphenol US
– 14,566 – (402) 14,164 0.97
44 # Raytheon Technologies US
– 14,385 – (387) 13,998 0.96
45 # Schneider Electric France
– 13,180 – 740 13,920 0.96
46 138 Constellation Brands US
4,707 9,807 – (913) 13,601 0.93
47 46 Munich Re Germany
9,287 3,520 (1,673) 1,496 12,630 0.87
48 44 SAP Germany
9,364 – (2,540) 5,500 12,324 0.85
49 95 Cranswick UK
6,529 3,012 (430) 3,038 12,149 0.83
50 72 DSM-Firmenich Netherlands
7,879 6,801 (3,530) 919 12,069 0.83
20
The Bankers Investment Trust PLC Annual Report 2024
All securities are equity investments
# Not held last year
Convertibles and all classes of equity in any one company being treated as one investment
Our portfolio holdings continued
Ranking
Company Country
Valuation
2023
£’000
Purchases
£’000
Sales
proceeds
£’000
Appreciation/
(depreciation)
£’000
Valuation
2024
£’000
% of
portfolio2024 2023
51 64 Taiwan Semiconductor Manufacturing Taiwan
8,214 – (3,861) 7,493 11,846 0.81
52 23 Sony Japan
11,489 2,581 (2,543) 287 11,814 0.81
53 59 Tokio Marine Japan
8,513 783 (2,030) 4,529 11,795 0.81
54 # Oversea-Chinese Banking Singapore
– 11,863 (1,091) 829 11,601 0.80
55 109 Intermediate Capital UK
5,786 5,000 (2,641) 3,172 11,317 0.78
56 42 Sumitomo Mitsui Japan
9,538 1,929 (2,525) 2,312 11,254 0.77
57 52 Daiichi Sankyo Japan
8,892 1,791 (1,665) 2,090 11,108 0.76
58 # Vertex Pharmaceuticals US
– 10,860 – 153 11,013 0.76
59 29 Shin-Etsu Chemical Japan
10,628 308 (2,251) 2,294 10,979 0.75
60 # Booz Allen Hamilton US
– 9,117 – 1,639 10,756 0.74
61 # Infineon Technologies Germany
– 11,855 – (1,266) 10,589 0.73
62 #Eaton US
– 10,395 – 191 10,586 0.73
63 #Fujitsu Japan
– 8,547 – 1,798 10,345 0.71
64 152 NARI Technology Development China
4,087 5,276 – 648 10,011 0.69
65 80 Intuit US
7,322 2,122 (777) 1,301 9,968 0.68
66 69 Mitsubishi Japan
8,175 2,682 (2,452) 1,439 9,844 0.68
67 # Mitsui Fudosan Japan
– 10,576 – (758) 9,818 0.67
68 # HSBC Hong Kong
– 8,509 – 1,131 9,640 0.66
69 # Resona Japan
– 10,119 (912) 268 9,475 0.65
70 67 Asahi Japan
8,188 2,502 (912) (403) 9,375 0.64
71 # Meituan China
– 6,500 – 2,843 9,343 0.64
72 #Lenovo Hong Kong
– 9,339 (406) 383 9,316 0.64
73 145 Trane Technologies US
4,502 927 – 3,846 9,275 0.64
74 # Las Vegas Sands US
– 9,274 – (99) 9,175 0.63
75 76 Bank Mandiri Indonesia
7,734 3,543 (2,897) 722 9,102 0.63
76 84 Macquarie Bank Australia
7,057 3,369 (3,837) 2,398 8,987 0.62
77 # Hon Hai Precision Taiwan
– 5,536 (1,647) 4,660 8,549 0.59
78 129 HDFC Bank India
4,995 2,639 – 674 8,308 0.57
79 #Shimizu Japan
– 7,651 – 368 8,019 0.55
80 128 Midea China
5,006 6,916 (6,236) 2,259 7,945 0.55
81 # Goodman Australia
– 7,173 (1,678) 2,412 7,907 0.54
82 167 Nitori Japan
3,125 4,509 – 33 7,667 0.53
83 53 Dai-ichi Life Japan
8,863 359 (2,939) 1,213 7,496 0.52
84 # Anheuser-Busch Belgium
– 14,939 (6,650) (795) 7,494 0.51
85 # Dell Technologies US
– 7,051 – 252 7,303 0.50
86 # HCL Technologies India
– 6,458 (759) 1,399 7,098 0.49
87 164 Canon Japan
3,192 3,005 – 705 6,902 0.47
88 90 Samsung Electronics South Korea
6,752 8,892 (6,239) (2,527) 6,878 0.47
89 # Uber Technologies US
– 6,836 – 41 6,877 0.47
90 # Hyundai Motor South Korea
– 7,492 (478) (144) 6,870 0.47
91 # Samsung Fire & Marine Insurance South Korea
– 6,414 (1,163) 1,492 6,743 0.46
92 92 Ebara Japan
6,679 477 (5,174) 4,676 6,658 0.46
93 # GAIL India
– 7,742 – (1,151) 6,591 0.45
94 # MediaTek Taiwan
– 5,681 (1,377) 1,997 6,301 0.43
95 88 Power Grid India
6,934 1,124 (4,520) 2,511 6,049 0.42
96 #DMG Mori Japan
– 7,358 (760) (551) 6,047 0.41
97 162 Disco Japan
3,409 1,535 (1,342) 2,299 5,901 0.41
98 # Mercari Japan
– 5,235 – 415 5,650 0.39
99 # First Pacific Hong Kong
– 5,438 – (196) 5,242 0.36
100 #Shimamura Japan
– 8,778 (3,034) (792) 4,952 0.34
101 102 Cellnex Telecom Spain
6,049 5,052 (7,065) 710 4,746 0.33
1,455,333
100.00
Governance
Financial
statements
Additional
information
21
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Our approach to Environmental, Social and Governance (ESG)
matters
Investment considerations
Resilience of business models is crucial to the
Company’s investment strategy. The Company’s
investment philosophy pays particular attention with
regard to cash generation and dividend growth over
the medium term. As such, a considerable amount of
time is spent by the Fund Manager identifying
fundamental factors, including ESG factors which may
impact profits, cash flow and dividends and ensuring
that investee companies have robust policies and
processes in place to manage these.
Whilst no company is specifically excluded based on ESG
considerations, the Fund Manager would seek to avoid
companies where ESG risks are not sufficiently considered
or managed. As the Fund Manager strives to understand
all drivers of company performance, he also strives to
understand the risks. An evaluation of ESG factors is
integral to this.
Governance is a key part of fundamental factor analysis
with good corporate governance supportive of long-term
decision-making and investment returns. The significance
of environmental and social factors can vary depending
on the sector and the region in which a company operates.
Nonetheless, each ESG factor, in addition to the quantitative
and qualitative assessments, is an important consideration.
Fundamental factors considered vary, but may include:
Financial
Analysis
Capital structure, balance sheet
strength, revenue growth, free cash flow,
earnings growth, return on invested
capital, leverage ratios.
Qualitative
Evaluation
Executive management, business model,
industry growth, barriers to entry,
competitive strength, product cycle,
macro cycle.
Environmental
Sustainable sourcing, emissions, water
usage, energy dependency, regulatory
impact, waste management.
Social
Labour practices, data privacy,
workplace safety, supply chain
standards, diversity, community action,
customer support.
Governance
Accounting standards, shareholder
rights, voting structure, transparency,
compensation, board independence.
Valuation
Discounted cash flow, sum of the parts,
dividend payout, price to earnings, price
to book, free cash flow yield, enterprise
value/EBITDA (earnings before interest,
taxes, depreciation, amortisation).
The Manager engages MSCI, a leading firm researching and
rating ESG factors globally, to support investment research.
MSCI can also be used to monitor the holdings within
the Company and analyse its overall ESG risk exposure.
Carbon Intensity (tCO
2
e/USD million)
Bankers
Benchmark
0 20 40 60 80 100 120
81.3
(2023: 86.9)
108.1
(2023: 122.1)
Source: MSCI, Bankers and Index weights as at 31 October 2024
Defining ESG
Environment
Environmental factors include climate change, use
of
natural resources, pollution, waste management,
water
usage and deforestation.
Social
Social factors include corporate culture, diversity,
health
and safety, community relations and supply
chain
management.
Governance
Governance factors include business ethics, board
composition,
remuneration and shareholder rights.
How we integrate ESG considerations
in our investment decisions
The Board believes that integrating ESG into
investment decision-making and ownership
practices is an important factor for delivering the
investment outcomes our shareholders seek. ESG
considerations are therefore a fully embedded
component of the investment process employed by
the Fund Manager, and the wider Janus Henderson
investment teams. The Company integrates ESG but
does not pursue a sustainable investment objective
or otherwise take ESG factors into account in a
binding manner. ESG integration is the practice of
incorporating material environmental/social and
governance information or insights in a non-binding
manner alongside traditional measures into the
investment decision process to improve long-term
financial outcomes of portfolios. ESG related
research is one of many factors considered within
the investment process.
22
The Bankers Investment Trust PLC Annual Report 2024
Our approach to Environmental, Social and Governance (ESG) matters continued
Carbon Intensity (Scope 1+2) is a metric used to
compare company emissions across industries. MSCI
divides the absolute emissions by total revenue,
meaning the figure is expressed in tonnes of carbon
dioxide equivalent per USD million of total revenue. The
overall portfolio of the Company is 25% (2023: 29%) less
carbon intensive than the benchmark. The lower carbon
intensity of the Company’s portfolio principally reflects a
greater exposure to greener, lower carbon based,
electricity generators and a significantly lower exposure
to fossil fuel energy companies than the index.
Distribution of MSCI ESG Company Ratings Universe
% of portfolio
Bankers Benchmark
C B BB BBB A AA AAA
0
5
10
15
20
25
30
35
LAGGARD AVERAGE LEADER
0.5%
0.1%
2.3%2.3%
1.4%
5.5%
18.1%
19.3%
30.0%
26.8%
31.6%
29.4%
17.6%
16.2%
Source: MSCI, Bankers and Index weights as at 31 October 2024 MSCI Risk
data as at 31 October 2024
MSCI’s ESG ratings are ranked using a seven-point
AAA-C scale. Both the Company and the benchmark
score A ratings using this analysis. The Company has 0.5%
exposure to companies with the lowest C scores, with
more exposure to AAA rated stocks than the benchmark.
Carbon emissions
Bankers
Benchmark
tCO
2
e/$M sales
0 100k 200k 300k 400k 500k 600k 700k
493,000
611,000
Source: MSCI, Bankers and Index weights as at 31 October 2024
The above chart shows the direct and indirect carbon
emissions of the holdings in both the Company and the
benchmark. These emissions are based on the assets
under management of the Company compared to an
equivalent portfolio of assets under management
invested in the benchmark. Scope 1 and 2 emissions are
the direct emissions from a company’s operations and
scope 3 emissions are indirect emissions. The Company’s
direct and indirect carbon emissions are 19% lower than
the benchmark.
Engagement and stewardship
Stewardship is a fundamental part of the Manager’s
long-term, active approach to investment management.
Strong ownership practices, including engagement with
management and boards, can help protect and
enhance long-term shareholder value. Janus Henderson
supports the UK Stewardship Code and is a founding
member of the UN Principles of Responsible Investment.
Additionally, Janus Henderson is a supporter of a number
of broader ESG initiatives such as the Access to Medicine
Index which aims to improve availability of health care in
developed and emerging markets and Climate Action
100+, an investor-led initiative to engage with heavily
emitting companies to reduce their greenhouse gas
emissions.
As a part of the research process, portfolio managers and
analysts meet frequently with company management,
senior executives and boards, with Janus Henderson
conducting thousands of meetings per year. These
meetings typically occur prior to initiating a position and
throughout the holding period. The portfolio managers
develop long-term relationships with the management of
firms in which they invest. Should concerns arise over a
firm’s practices or performance, they would seek to
leverage these constructive relationships by engaging with
company management or express their views through
voting on management or shareholder proposals.
Escalation of engagement activities depends upon a
company’s individual circumstances.
Environmental
The Investment Manager’s in-house ESG team conducted
a piece of thematic research on the issue of water risk
within the brewery industry. They engaged with a number
of companies across the globe, including Anheuser-Busch
InBev. The aim of the thematic research was to establish
how these companies think about water usage, and how
they deal with the issue of water as a diminishing resource.
Water is extremely important to these companies and as
well as being used in many processes in the production of
beverages, water also forms a significant portion of the
beverage itself; it takes up to 6 litres of water to make each
litre of beer. All of the major European listed brewers were
engaged with and the team observed strong
performances from Anheuser-Busch InBev in setting
site-specific water targets, conducting robust scenario
analysis and in engaging closely with their supply chain.
The team also questioned what these companies were
doing to try to mitigate water-related risks. We will
continue to engage on these issues.
Engagement example
Governance
Financial
statements
Additional
information
23
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Our approach to Environmental, Social and Governance (ESG) matters continued
Voting
The Board believes that voting at general meetings is an
important aspect of corporate stewardship and a means
of signalling shareholder views on board policy, practices
and performance.
We have chosen to delegate responsibility to Janus
Henderson for voting the rights attached to the shares
held in the Company’s portfolio and the Manager actively
votes at shareholder meetings and engages with
companies as part of the voting process.
Voting decisions are taken in keeping with the provisions
of the Manager’s Responsible Investment Policy (‘RI
Policy’). The RI Policy can be found on the Manager’s
website at www.janushenderson.com.
Corporate governance regimes vary significantly as a
function of factors such as the relevant legal system,
extent of shareholder rights and level of dispersed
ownership. The voting and engagement activities vary
according to the market and pay close attention to local
market codes of best practice.
However, there are certain core principles that are universal:
• disclosure and transparency;
• board responsibilities;
• shareholder rights; and
• audit and internal controls.
A key element of the Board’s approach to proxy voting is
to support these principles and to foster the long-term
interests of our shareholders.
In order to retain oversight of the process, the Board
regularly receives reports on how the Manager has voted
the shares held in the Company’s portfolio and reviews, at
least annually, the RI Policy, which sets out the Manager’s
approach to corporate governance, corporate
responsibility and Janus Henderson’s compliance with the
UK Stewardship Code.
In the period under review, investee companies held 195
general meetings. The shares held in the Company’s
portfolio were voted at 99.5% of these meetings. The level
of governance in leading global companies is generally
of a high standard in terms of best practice which meant
support in favour of most of the resolutions proposed by
management was warranted. However, in respect of 80
meetings, support was not warranted for all of the
resolutions proposed and, following discussion between
the Fund Manager and Janus Henderson’s governance
team, the shares were voted against the passing of
at least one resolution.
Voting record
Meetings where all
resolutions were
voted in favour
1
59%
Meetings with one
or more resolutions
voted against 41%
1 Represents meetings where all proposals for that company at that
meeting date were voted with vote instructions of ‘for’
* Note: “MSOP” frequency = Management Say On Pay frequency proposal
votes allow shareholders to determine whether, going forward, the
“say-on-pay” vote to approve compensation should occur every one, two,
or three years
In terms of the resolutions not supported, these covered
three predominant governance themes relating to
Director Election/Related, Non-salary compensation,
Routine/Non Routine proposals.
Director related 55%
Non-salary compensation 12%
Routine and Non-Routine 10%
Capitalisation 6%
Company Articles 6%
Shareholder proposals 3%
Strategic Transactions 5%
Environmental (Climate) 1%
Miscellaneous 1%
Audit Related 1%
Source: Janus Henderson using Institutional Shareholder Services
(“ISS”) categories
Social
We engaged with Lenovo during the year, in order to
better understand their process for collating ESG data
and their actions to improve diversity. Lenovo is
considered a leader in ESG among technology
companies. They partner with CDP to get responses on
climate data from suppliers and have achieved a 96%
response rate. They have also provided numerous training
sessions to suppliers on data reporting and other
capabilities. The company published ESG education
videos to better educate the concepts to suppliers. All the
related information feeds into an In-house ESG digital
platform for analysis. This allows Lenovo to have quick
access to their progress and map out actions for Lenovo
scope 3 carbon emissions. Lenovo uses Everstream, an
end-to-end third-party risk management platform to run
through their supply chain functions, global logistics and
manufacturing. The company targets to have 27% female
representation in management by 2025, and for 20%
female representation on the board by 2025-26. To
accomplish this goal, they are expanding their potential
pool of candidates. The career development program
provides learning opportunities and sponsorships. Their
Women’s Leadership Program is a program targeted at
developing female leaders within the company.
Engagement example
24
The Bankers Investment Trust PLC Annual Report 2024
The environment
As an investment company, the Company’s own direct
environmental impact is minimal. The Company has no
greenhouse gas emissions to report from its operations,
nor does it have responsibility for any other emissions
producing sources under the Companies Act 2006
(Strategic Report and Directors’ reports) Regulations 2013.
For the same reasons, the Company considers itself to be
a low energy user under the Streamlined Energy & Carbon
Reporting (“SECR”) regulations and therefore is not
required to disclose energy and carbon information.
The Manager recognises the importance of managing its
operational activities in a sustainable way and minimising
any adverse impact on the environment.
In 2021 Janus Henderson reached its three-year target to
reduce its carbon footprint by 15% per full-time employee
(“FTE”) from 2018 levels. In 2022, using guidance from the
Science-Based Target Initiative, Janus Henderson set
ambitious new five-year reduction targets versus a 2019
baseline and per FTE:
• reduction target of 29.4% in Scope 1 (fuel) and Scope 2
(electricity) emissions;
• reduction target of 17.5% in Scope 3 (business travel,
freight, paper, water, waste) emissions; and
• reduction target of 17.5% on water and waste
consumption by FTEs.
In addition to this, Janus Henderson has maintained a
CarbonNeutral® certification since 2007 and offsets all its
operational Scope 1, Scope 2 and Scope 3 emissions each
year. Through this process, Janus Henderson has invested
in a variety of offset projects around the world, delivering
financial support to essential renewable energy, forestry
and resource conservation projects that support
reductions in greenhouse gas emissions. All projects
Janus Henderson supports have been classified as
‘additional’ by an independent third party, meaning that
they would not happen without the sale of carbon credits.
Janus Henderson discloses its carbon emissions annually
through regulatory and voluntary reporting frameworks,
including SECR and the CDP (formerly the Carbon
Disclosure Project), as well as in its 2023 Responsibility
Report, which provides more information.
Janus Henderson produces product-level Task Force on
Climate-Related Financial Disclosures (‘TCFD’) reports.
These reports include an overview of the climate-related
governance, strategy, risk management, and metrics and
targets of Janus Henderson and its portfolios. Product-
level metrics include absolute carbon emissions, carbon
footprint, weighted average carbon intensity, implied
temperature rise and climate scenario analysis (Climate
Value at Risk). Janus Henderson’s TCFD Report specific
to Bankers is available on the Company’s website at
www.bankersinvestmenttrust.com.
Business ethics
As the Company’s operations are delegated to third-
party service providers, the Board seeks assurances, at
least annually, from its suppliers that they comply with
the provisions of the UK Modern Slavery Act 2015 and
maintain adequate safeguards in keeping with the
provisions of the Bribery Act 2010, Criminal Finances Act
2017 and the sanctions element of the Economic Crime
Act (Transparency and Enforcement) 2022.
Richard West
Senior Independent Director
15 January 2025
Our approach to Environmental, Social and Governance (ESG) matters continued
1 Certain information contained herein (the “Information”) is sourced from/copyright of MSCI Inc, MSCI ESG Research LLC, or their affiliates (“MSCI”), or
information providers (together the “MSCI Parties”) and may have been used to calculate scores, signals, or other indicators. The Information is for
internal use only and may not be reproduced or disseminated in whole or part without prior written permission. The Information may not be used for, nor
does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product, trading strategy, or index,
nor should it be taken as an indication or guarantee of any future performance. Some funds may be based on or linked to MSCI indexes, and MSCI may
be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between index
research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell
them. The Information is provided “as is” and the user assumes the entire risk of any use it may make or permit to be made of the Information. No MSCI
Party warrants or guarantees the originality, accuracy and/or completeness of the Information and each expressly disclaims all express or implied
warranties. No MSCI Party shall have any liability for any errors or omissions in connection with any Information herein, or any liability for any direct,
indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages
Governance
During the year, we engaged with META, focusing on a
wide range of financially material ESG factors related to
its practices on privacy and data security. Specifically, we
delved into the theme from four different angles,
including teen mental health & youth protection, data
privacy, content moderation, and responsible AI. META has
added significant technical and human resources into
each area, investing a total of more than $20bn into
safety & security since 2016. The company highlighted the
important role of AI in helping to detect harmful contents
while also recognising and actively managing the
potential risks of AI, especially with respect to
misinformation/disinformation during election seasons.
Overall, this was a constructive conversation which gave
us advanced insights into META’s policies and practices
around various safety & privacy related issues and built
the ground for ongoing monitoring and engagement with
the company.
We
continued our engagement with Tokio Marine, a
Japanese insurance company, by highlighting how
cross-shareholdings
distort capital efficiency and risk
regulatory oversight on the pricing of insurance contracts.
This has resulted in a plan for the significant sell-down of
cross-shareholdings over the next five to six years, the
proceeds from which will be distributed to shareholders.
This
should result in a higher return on equity and
hopefully a better valuation. We will continue to monitor
progress and maintain a dialogue with management.
Engagement example
Governance
Financial
statements
Additional
information
25
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Our Manager: Janus Henderson Investors
Bankers Investment Trust is managed by
Janus
Henderson Investors. The Company has
been
managed by Janus Henderson since 1971.
Janus Henderson is a global asset manager with over 340 investment
professionals
and 24 offices globally, employing over 2,000 people
and
managing £285bn of client assets. Janus Henderson has a
long
history of managing investment trusts and currently manages
11
investment trusts.
Access to global equity team based around the world
Each of Bankers regional portfolio managers is based in their region
and
is part of a specialist equities team. With offices on four continents
and
sector specialists in growing areas, including technology and
health
care, the portfolio managers have deep expertise at their
fingertips.
They can take advantage of Janus Henderson’s broad
research
capabilities and disciplined insights to select and monitor
the
Company’s portfolio holdings.
Together,
under the direction of Alex Crooke, Bankers’ four regional
portfolio
managers use their local knowledge to identify companies
benefiting
from global trends in their respective regions, to build a
truly
unique global portfolio.
Investment trusts, understood
Janus Henderson has been involved in investment trusts since its
foundation
in 1934. It remains one of the largest investment trust asset
managers
in the UK. As a result, Bankers benefits from the support
of
a dedicated investment trust team, including specialised legal,
accounting,
marketing and sales support.
www.janushenderson.com
Client assets managed
£285bn
Employees
+2,000
Offices globally
24
Investment professionals
340
As at 30 September 2024
26
The Bankers Investment Trust PLC Annual Report 2024
Business model
Investment Objective
Over the long-term, the Company aims to achieve capital growth
in excess of the FTSE World Index and dividend growth greater than
inflation, as measured by the UK Consumer Price Index (‘CPI’),
by investing in companies listed throughout the world.
Purpose
The Company’s purpose is to provide its shareholders with a diversified and cost-effective vehicle for growing
income
and capital. We achieve this by investing predominantly in the equity of those publicly listed companies
‘across
the world’ which we expect can deliver growing cash flows and pay dividends.
Investment policy
The following investment ranges apply:
• Equities: 80% to 100%.
• Debt securities and cash investments: 0% to 20%.
• Investments trusts, collective funds and derivatives:
0%
to 15%.
To achieve an appropriate spread of investment risk
the
portfolio is broadly diversified by geography, sector
and
company. The Manager has the flexibility to invest
in
any geographic region and any sector with no set
limits
on individual country or sector exposures and,
therefore,
the make-up and weighting of the portfolio
may
differ materially from the FTSE World Index.
The Manager primarily employs a bottom-up stock
picking
investment process, across four regional
portfolios,
to identify suitable opportunities. While
each
regional portfolio manager employs their own
investment
style, they all pay particular regard to cash
generation
and dividend growth over the medium term.
The Company can, but normally does not, invest
up
to 15% of its gross assets in any other investment
companies
(including listed investment trusts).
Derivatives
The Company may use financial instruments known
as
derivatives for the purpose of efficient portfolio
management
while maintaining a level of risk
consistent
with the risk profile of the Company.
Gearing
The Company can borrow to make additional
investments
with the aim of achieving a return that is
greater
than the cost of the borrowing. The Company
can
borrow up to 20% of net assets at the time of
draw
down.
Note: Any material change to the investment policy would require the prior approval of both shareholders and the FCA.
Values and culture
The Board applies various policies, practices and
behaviour to ensure that the Board’s culture is in line
with the Company’s purpose, values and strategy.
The Directors promote mutual support combined with
constructive challenge. Integrity, fairness and diligence
are defining characteristics of the Board’s culture.
The Company has a number of policies and procedures
in place to assist with maintaining a culture of good
governance including those relating to Directors’ conflicts
of interest, Directors’ dealings in the Company’s shares,
bribery (including the acceptance of gifts and hospitality)
and tax evasion. The Board assesses and monitors
compliance with these policies regularly through Board
meetings and the annual evaluation process (for more
information see the performance evaluation section on
pages 56 & 57.
Governance
Financial
statements
Additional
information
27
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Business model continued
Sustainability
The Board believes the business model provides investors
with a cost-effective mechanism for achieving long-
term investment goals and builds relationships with
third-party service providers with this approach in mind.
The Company offers a broadly diversified global exposure
with concentrated regional ‘best ideas’ portfolios. It has a
strong long-term performance record, both absolute and
relative to its benchmark index. Please see page 96 for
more detail.
The Company’s ongoing charge is amongst the lowest of
actively managed equities funds.
Unlike open-ended funds, as an investment trust the
Company has been able to build up over many years a
significant revenue reserve (income not paid out in good
years) which, in tougher years, can be drawn on to
continue delivering a reliable and growing dividend.
Benefits
The Company’s business model offers numerous
advantages (see pages 27 to 29 also for more detail).
The Company’s status
The Company is an investment company as defined
in section 833 of the Companies Act 2006 (‘the Act’)
and operates as an investment trust in accordance
with section 1158/9 of the Corporation Tax Act 2010 as
amended. The Directors are of the opinion that the
Company has conducted its affairs in compliance with
section 1158/9 since approval was granted and intends
to continue to do so.
The Company’s shares are listed on the Main Market of
the London Stock Exchange and the Company is subject
to the UK Listing Rules, Prospectus Regulation Rules and
Disclosure Guidance and Transparency Rules published
by the Financial Conduct Authority (‘FCA’). The Company
is also listed on the Main Board of the New Zealand Stock
Exchange (‘NZX’) and is subject to the NZX Listing Rules.
The Company is a member of the Association of
Investment Companies (‘AIC’).
The Company, and the Board, is governed by its Articles
of Association, amendments to which must be approved
by shareholders by way of a special resolution.
Position at year end
At 31 October 2024, the portfolio contained 101 (2023: 183)
individual investments excluding those held at nil value,
with the largest single investment accounting for 4.5%
(2023: 4.0%) of total investments and the top 25 holdings
totalling 43.9% (2023: 30.9%) of total investments. There
was one holding in a listed investment company in the
portfolio (2023: two). There were no derivatives held in the
portfolio (2023: nil).
Borrowings
The Company has the following unsecured private
placement fixed rate loan notes with respective
annualised coupon rates: £50 million 3.68% 2035;
£37 million 2.28% 2045 and €44 million 1.67% 2041.
The Company had a £20 million loan facility with SMBC
Bank International plc which expired at the end of
February 2024 and was not renewed.
Net gearing at 31 October 2024 was 1.5% (2023: 7.1%) of net
asset value.
Ongoing charge and other costs
The ongoing charge reflects those expenses of a type which
are likely to recur in the foreseeable future, whether charged
to capital or revenue, and which relate to the operation of
the Company as an investment company, excluding the
costs of acquisition or disposal of investments, financing
costs, gains or losses arising on investments and taxation.
In accordance with the AIC methodology, the ongoing
charge is based on actual costs incurred in the year as
being the best estimate of future costs.
The Board believes that the ongoing charge during the
year represented good value for money for shareholders.
There is, however, some debate over the most appropriate
measure of investment company costs (and how these
are calculated) to enable shareholders to assess value
for money and to make comparisons between companies.
Whilst industry agreement on how best to present a single
figure for costs remains elusive, the Company continues
to focus on the ongoing charge as a readily understood
measure of the underlying expenses of running the
business. We are also presenting the information on
all costs in a single table. This indicates the main cost
headings in money terms and as a percentage of
average net assets.
Category of cost
2024
£’000
2024
%
of
average
net
assets
2023
£’000
2023
% of
average
net assets
Management fee
6,190 0.42 5,966 0.42
Other recurring
expenses
1,252 0.09 1,017 0.08
Ongoing charge
figure
7,442 0.51 7,073 0.50
Portfolio
transaction costs
1,617 0.11 725 0.05
Liquidity and discount management
Our aim is for the Company’s share price, as far as
possible, to reflect closely its underlying net asset value,
to reduce share price volatility and to have a liquid market
in the shares.
The ability to influence this meaningfully over the longer
term is, of course, limited. However, the Board intends,
subject always to the overall impact on the portfolio, the
pricing of other investment companies and overall market
conditions, to consider share issuance and buybacks.
We believe that flexibility is important and that it is not
in shareholders’ interests to have specific share issuance
and share buyback policies.
28
The Bankers Investment Trust PLC Annual Report 2024
Business model continued
Arrangements with the Manager
The Company qualifies as an Alternative Investment
Fund (‘AIF’) in accordance with the Alternative Investment
Fund Manager Directive (‘AIFMD’). The Company has
appointed Janus Henderson Fund Management UK
Limited (“JHFM”) to act as its alternative investment
fund manager (“AIFM”). JHFM delegates investment
management services to Janus Henderson Investors
UK Limited (“JHIUK”) in accordance with an agreement
effective from July 2014 and most recently revised in
November 2024 to reflect current regulation and industry
standards, with no changes to terms affecting the
relationship with the Manager. The management
agreement with JHFM is reviewed annually by the
Management Engagement Committee (see page 54),
and can be terminated with six months’ notice. JHFM
delegates investment management services to Janus
Henderson Investors UK Limited, which acts as Manager.
Both entities are authorised and regulated by the FCA.
References to Janus Henderson and the Manager within
this report refer to the services provided by both entities.
The Company has engaged third-party service
providers to undertake its day-to-day operations.
The management agreement between the Company
and Janus Henderson sets out the matters over which
the Manager has authority, including management of
the Company’s assets and the provision of accounting,
company secretarial, administration and sales and
marketing services.
The fund management team is led by Alex Crooke, who
has been in place since 2003. He is assisted by Jamie
Ross, Jeremiah Buckley, Junichi Inoue, and Sat Duhra.
Jamie Ross was appointed as Deputy Fund Manager
during the year following the retirement of Mike Kerley.
Some of the administration and accounting services to
be provided by Janus Henderson are carried out on its
behalf by BNP Paribas SA. Wendy King FCG acts as
Company Secretary on behalf of the Corporate Secretary,
Janus Henderson Secretarial Services UK Limited.
Fees
The Manager is entitled to a management fee charged
at a rate of 0.45% per annum on the first £750 million of
net assets, 0.40% per annum on net assets in excess of
£750 million up to £1.5 billion and 0.35% of net assets in
excess of £1.5 billion.
For the purpose of the fee calculation, the net assets
are as at the last day of the quarter immediately
preceding the quarter in respect of which the
calculation is made.
Arrangements with Depositary,
Custodian and Registrars
The Company has appointed a Depositary (as explained on
page 92), who, in turn, has appointed the Custodian who is
responsible for the safe custody of the Company’s assets.
The Company has also appointed Registrars to maintain its
register of members and assist shareholders with queries in
respect of their holdings. Each of these principal contracts
was entered into after full and proper consideration by the
Board of the quality and cost of the services offered,
including the control systems in operation in so far as they
relate to the affairs of the Company. Fees paid to service
providers are disclosed in note 6 on page 78.
Environmental, Social and Governance
(ESG) matters
The report on pages 22 to 25 forms part of the Company’s
Business Model.
Diversity and Inclusion
It is the Company’s aim to have an appropriate level
of diversity in the Boardroom.
The Directors have broad experience and skills, bringing
knowledge of investment markets, business, financial
services and stakeholder expertise to discussions on the
Company’s business. The Directors regularly consider the
leadership needs and specific skills required to achieve
the Company’s investment objective.
The Nominations Committee considers diversity in its
broadest sense when making recommendations for
appointments to the Board, see page 57. The Board’s
prime responsibility, however, is the strength of the Board
and its overriding aim in making any new appointments
must always be to select the best candidate based on
objective criteria and merit.
Currently the Board comprises five Directors, two female
and three male. See page 57 for further details of the
Company’s diversity policy and compliance with
recommended diversity targets.
The Board also takes an interest in the diversity initiatives
in place at the Manager. These include Janus Henderson’s
gender and ethnicity pay gap analysis, returnship, trainee,
apprenticeship and internship programmes, such as
Greenwood Project, Investment 2020 and #100 Black Interns.
The Board monitors the culture at Janus Henderson and
appreciates that the Manager fosters and maintains an
environment that values the unique talents and contributions
of individuals, and strives to cultivate and practise
inclusiveness for the long-term success of the business and
for the benefit of its employees, investors and shareholders.
Governance
Financial
statements
Additional
information
29
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Measuring our performance
In order to measure the success of the Company in meeting its objectives and to evaluate the performance of the
Manager over time, the Directors use the following Key Performance Indicators (‘KPIs’): Further information on KPIs,
which are established industry measures, can be found in the alternative performance measures on pages 93 to 94.
The KPIs are presented in the performance highlights on page 4 and below.
KPI Action
Net asset value (‘NAV’)
and
share price
See p.4
At each Board meeting, the Board reviews the Company’s NAV with debt
at
fair value and share price performance (capital only and total return)
and
measures it against the benchmark index, the FTSE World Index. The
Board
also reviews the performance of the Company’s regional portfolios
and
compares that against relevant regional indices. In addition, the Board
considers
NAV and share price total return performance against the
Company’s
closest peers in the Association of Investment Companies
(‘AIC’)
Global sector and the average performance of the AIC Global sector
and
the open-ended Investment Association Global and Global Equity
Income
sectors.
Share price discount/
premium
to NAV
See p.4
The Company publishes a NAV per share figure daily through the official
newswire
of the London Stock Exchange. This figure is calculated in
accordance
with the AIC’s formula. At each Board meeting, the Board
monitors
the level of the Company’s share price discount/premium to
NAV
and reviews the discount/premium against the Company’s closest
peers
in the AIC Global sector and the sector average.
The Board considers the use of share buybacks and share issues to
manage
the supply and demand for the Company’s shares and enhance
shareholder
value.
Dividends per share
See p.5
At each Board meeting, the Board reviews a revenue forecast. These
forecasts
are used to determine the quarterly dividends. The Board
measures
dividend growth against the Consumer Price Index.
Ongoing charge
See p.28
The Board regularly reviews the ongoing charge and monitors all of the
Company’s
expenses.
The Board reviews Environmental, Social and Governance (‘ESG’) analysis of the portfolio on a regular basis and,
whilst
no specific ESG-based KPIs have been adopted, the Board will keep this under review.
The Company’s dividend growth as compared to the Consumer Price Index (‘CPI’) rebased to 100
Bankers – dividend per share Inflation level – as measured by CPI
100
120
140
160
180
200
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: LSEG Datastream, Morningstar Direct
30
The Bankers Investment Trust PLC Annual Report 2024
Increase No change Decrease
Managing risks
The Board, with the assistance of Janus Henderson, has
carried out a robust assessment of the principal risks and
uncertainties facing the Company (including emerging
risks) that would threaten its business model, future
performance, solvency, liquidity or reputation.
The Board regularly considers the principal risks facing
the Company and has drawn up a register of these risks.
The Board has a schedule of investment limits and
restrictions, appropriate to the Company’s investment
objective and policy, in order to mitigate these risks as
far as practicable. The Board monitors the Manager,
its other service providers and the internal and external
environments in which the Company operates to identify
new and emerging risks.
Any new or emerging risks that are identified and
considered to be of significance are included in the
Company’s risk register together with any mitigating
actions required.
The Board proactively monitors all these factors and has a
strong focus on continuing to educate itself about any
relevant issues. Details of how the Board monitors the
services provided by Janus Henderson and its other
suppliers, and the key elements designed to provide
effective internal control, are explained further in the
internal controls section of the Corporate Governance
Statement on page 49. Further details of the Company’s
exposure to market risk (including market price risk,
currency risk and interest rate risk), liquidity risk and credit
and counterparty risk and how they are managed are
contained in note 16 on pages 82 to 87.
The Board’s policy on risk management has not materially
changed during the course of the reporting period and up
to the date of this report.
The principal risks which have been identified and the
steps taken by the Board to mitigate these are as follows:
Risk Trend Mitigation
Investment activity and performance risks
An inappropriate investment strategy (for example, in
terms of asset allocation or the level of gearing) may
result in underperformance against the Company’s
benchmark index and the companies in its peer group.
Investment performance, over an extended period of time,
may be impacted by either external (political, financial
shock, pandemic, climate change) or internal factors
(poor stock selection), leading to shareholders voting
to wind up the Company.
The Board monitors investment performance
at each Board meeting and regularly reviews
the extent of the Company’s borrowings.
The Board receives regular updates on
professional and retail investor activity from
the Manager and its brokers to inform themselves
of investor sentiment and how the Company is
perceived in the market.
Portfolio and market risks
Although the Company invests almost entirely in securities
that are listed on recognised markets, share prices may
move rapidly. The companies in which investments are
made may operate unsuccessfully or fail entirely. A fall in
the market value of the Company’s portfolio would have
an adverse effect on shareholders’ funds. The risks
associated with a global pandemic and other health
emergencies are considered within portfolio and market
risks, a grouping which also covers risks relating to
heightened political and military tensions and inflationary
pressures. This is likely to impact share prices of
investments in the portfolio, to the extent not already
factored into current prices.
Lack of voting by shareholders may result in a change of
control of the Company which is not in shareholders interests.
The Fund Manager seeks to maintain a diversified
portfolio to mitigate against this risk. The Board
regularly reviews the portfolio, investment activity
and performance.
Resolutions requiring shareholder approval and
the explanation of those resolutions are posted
to shareholders and are also made available on
the Company’s website. The Board encourages
all shareholders to vote, as they do themselves
in respect of their own shareholdings.
Tax, legal and regulatory risks
A breach of section 1158/9 of the Corporation Tax Act 2010
could lead to the loss of investment trust status, resulting
in capital gains realised within the portfolio being subject
to corporation tax.
A breach of the FCA’s Rules could result in suspension of
the Company’s shares, while a breach of the Companies
Act could lead to criminal proceedings. All breaches could
result in financial or reputational damage. The Company
must also ensure compliance with the Listing Rules of the
New Zealand Stock Exchange.
Janus Henderson has been contracted to
provide investment, company secretarial,
administration and accounting services through
qualified professionals. The Board receives
internal control reports produced by Janus
Henderson on a quarterly basis, which confirm
tax, legal and regulatory compliance both in
the UK and New Zealand.
Governance
Financial
statements
Additional
information
31
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Risk Trend Mitigation
Financial risks
By its nature as an investment trust, the Company’s
business activities are exposed to currency, interest rate,
liquidity, credit and counterparty risk.
The Company has a diversified portfolio which
comprises mainly investments in large and
medium-sized companies and mitigates
the Company’s exposure to liquidity risk.
The Company minimises the credit risk of a
counterparty failing to deliver securities or cash
by dealing through organisations that have
undergone rigorous due diligence by Janus
Henderson. Further information on the mitigation
of financial risks is included in note 16 on pages
82 to 87.
Operational and cyber risks
Disruption to, or failure of, Janus Henderson’s accounting,
dealing or payment systems or the Depositary’s records
could prevent the accurate reporting and monitoring of
the Company’s financial position. The Company is also
exposed to the operational and cyber risks that one or
more of its service providers may not provide the required
level of service or that AI has been used to hack into
business systems.
The Board monitors the services provided by
Janus Henderson, the Depositary and its other
service providers and receives reports on the
key elements in place including cyber attacks
and information security, to provide effective
internal control.
Risks associated with climate change
Risk that investee companies within the Company’s
portfolio fail to respond to the pressures of the growing
climate emergency and fail to limit their carbon footprint
to regulated targets, resulting in reduced investor
demand for their shares and falling market values.
Please refer to Investment activity
and performance risks above and the
Environmental, Social and Governance Matters
section on pages 22 to 25 for further details.
Increase
No change Decrease
Emerging risks and future developments
In addition to the principal risks facing your Company, the Board also regularly considers potential emerging risks,
˪˛˜˖˛˔˥˘˗˘Ѓˡ˘˗˔˦ˣˢ˧˘ˡ˧˜˔˟˧˥˘ˡ˗˦ʟ˦˨˗˗˘ˡ˘˩˘ˡ˧˦ˢ˥˖˛˔ˡ˚˜ˡ˚˥˜˦˞˦˪˛˜˖˛˔˥˘˖˛˔˥˔˖˧˘˥˜˦˘˗˕ˬ˔˛˜˚˛˗˘˚˥˘˘
of uncertainty in terms of the probability of them happening and the possible effects on the Company. Should an
˘ˠ˘˥˚˜ˡ˚˥˜˦˞˕˘˖ˢˠ˘˦˨˙Ѓ˖˜˘ˡ˧˟ˬ˖˟˘˔˥ʟ˜˧ˠ˔ˬ˕˘ˠˢ˩˘˗˧ˢ˔˦˜˚ˡ˜Ѓ˖˔ˡ˧˥˜˦˞ʡ
While the future performance of the Company is mainly dependent on the performance of global financial markets
which are subject to various external factors, the Board’s intention is that the Company continues to pursue its stated
investment objective and policy as explained on page 27. The Chair’s Statement, Fund Manager’s Report and Regional
Portfolio Manager Reports provide commentary on the outlook for the Company.
Managing risks continued
32
The Bankers Investment Trust PLC Annual Report 2024
Promoting the success of the Company
Section 172 statement
Under section 172 of the Companies Act 2006, the Directors
have a duty to act in the way they consider, in good faith,
would be most likely to promote the success of the
Company for the benefit of its members as a whole.
In doing so, the Directors are required to take into account
(amongst other matters) the likely long-term consequences
of their decisions, the need to foster relationships with
the Company’s wider stakeholders, the desirability of the
Company maintaining a reputation for high standards
of business conduct and the impact of the Company’s
operations on the community and environment.
The Board is required to describe to the Company’s
shareholders how the Directors have discharged their
duties and responsibilities under section 172 over the
course of the financial year, including how the Board
has engaged with and understands the views of
stakeholders, how stakeholders’ needs have been
taken into account, the outcome of this engagement
and the impact that it has had on the Board’s decisions.
The Company does not have any employees or premises
and conducts its core activities through its externally
appointed Manager (Janus Henderson). The Company
has also appointed other third-party service providers to
enable the Company to operate as a listed investment
company. Each service provider has an established track
record and has in place suitable policies and procedures
to ensure it maintains high standards of business conduct.
As the Company is an externally managed investment
company, the Board considers the Company’s key
stakeholders to be existing and potential new
shareholders, the Manager, other service providers
(Custodian, Depositary, Registrars, Corporate Brokers,
Auditor and legal advisers) and debt providers (the
Company’s loan noteholders). Engagement with the
Company’s key stakeholders enables the Company to
fulfil its strategic objectives and the Directors to promote
the long-term sustainable success of the Company for
the benefit of shareholders as a whole.
Engaging with stakeholders
The Directors have the success of the Company foremost
in their minds when making decisions. Decisions are taken
with the aim of achieving our purpose and are based on
information provided by a range of sources. The impact
on stakeholders is assessed as part of Board deliberations,
although stakeholders may be affected differently.
The table below sets out the primary ways in which the
Board engage with the Company’s key stakeholders.
Shareholders and potential investors
Purpose
Continued shareholder support is
crucial to the continued existence
of the Company and clear
communication of the Company’s
strategy and performance can help
the share price trade at a narrower
discount or a premium to NAV which
benefits shareholders. Consequently,
the Board places great importance
on shareholder communication and
is committed to open channels of
communication with all shareholders.
How we engage
Regular updates are provided to investors through:
• the Annual and Half Year Reports;
• the Manager’s monthly factsheets;
• Company announcements, including daily NAV announcements;
• the Company’s website, which includes video interviews with the
Company’s Fund Manager, investment insights and other relevant
information to enhance investors’ understanding of the Company
and its portfolio and prospects; and
• Edison research notes (paid for by the Company and available to all
investors in the UK and New Zealand) although this service will come
to a conclusion in March 2025.
The Company’s Annual General Meeting provides the main forum,
both formal and informal, for all shareholders to meet and discuss the
Company and its performance and to raise any questions or concerns with
the Chair, the other Directors and the Fund Manager. The Board encourages
as many shareholders as possible to attend the Company’s Annual General
Meeting and to provide feedback on the Company. Shareholders who cannot
attend in person are invited to attend and raise questions online.
In addition to the AGM, the Fund Manager and members of the Manager’s
investment trust sales team regularly meet with current and potential new
shareholders (principally institutional investors and wealth managers) to
discuss the Company and its performance and prospects and feedback
from these meetings is reported to the Board. The Fund Manager also
provides presentations to research analysts following the publication
of the Company’s annual financial results.
Governance
Financial
statements
Additional
information
33
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Shareholders and potential investors continued
The Board welcomes all shareholders’ views, and all shareholders may
communicate with the Chair (or other members of the Board or the
Manager) at any time by writing to them at the Company’s registered office.
All shareholder communications are shared with the Chair, dealt with
promptly and circulated to the Board at its next meeting. In addition,
the Chair is available to meet with major shareholders at any time. The Senior
Independent Director is also available to shareholders if they have concerns
that have not been addressed through the normal channels.
The Company contributes to a focused investment companies marketing
programme operated by Janus Henderson on behalf of all the investment
companies under its management. This enables some economies of scale
as well as allocation of funds to support specific marketing activities for
the Company. The purpose of the programme is to ensure effective
communication with existing shareholders, attract new shareholders
and sustain the stock market rating of the Company’s shares.
The Manager also coordinates public relations activity to promote the
Company’s strategy and outlook and raise the Company’s profile with
a broader range of potential new shareholders. This includes arranging
meetings between the Fund Manager and relevant financial press and
other industry publications and distributing interviews with the Fund Manager
and other relevant information via various social media channels.
Target outcome
The Board is able to incorporate shareholders’ views when considering
how best to promote the long-term success of the Company for the benefit
of shareholders as a whole and shareholders are able to make informed
decisions about their investment in the Company, facilitating the retention
of existing shareholders and attracting new investors.
Manager – Janus Henderson
Stakeholder
• Fund Manager
• Sales and marketing
• Company secretarial
• Financial reporting
• Internal controls functions
• Investment accounting and
administration (outsourced by
Janus Henderson to BNP Paribas)
Purpose
The Manager is responsible for the
Company’s portfolio management
(including asset allocation and stock
selection) and risk management,
as well as ancillary functions such as
company secretarial, administration,
accounting, sales and marketing
services. Successful management of
the Company’s portfolio is critical for
the Company to meet its strategic
objectives and enable its long-term
sustainable success, whilst effective
provision of the ancillary services are
essential for the efficient running of
the Company’s day-to-day affairs.
How we engage
The Board seeks to engage with the Manager in a collaborative and
collegiate manner, encouraging open and constructive discussion and
debate, whilst also ensuring appropriate and regular challenge both during and
outside of Board meetings. The Manager provides regular performance updates
and detailed performance attribution to help the Board to exercise effective
oversight of the Manager and the Company’s strategy, as well as regular
administration, regulatory and other updates to assist the Board’s oversight
of the ancillary services provided by the Manager.
The Board meets with representatives of the Manager’s investment
companies, sales and marketing teams at least twice a year to receive
updates on their activities and discuss future strategy for engaging
with current and prospective shareholders, including those who invest
through retail investor platforms.
The Board has the opportunity to meet other key representatives of the
Manager (including from the Manager’s risk, compliance, internal audit,
business continuity and information security teams) throughout the year to
assist the Board in its strategic thinking and risk management and oversight
of the Company’s activities.
Promoting the success of the Company continued
34
The Bankers Investment Trust PLC Annual Report 2024
Promoting the success of the Company continued
Manager – Janus Henderson continued
There has been regular interaction between the Board and the Manager
to consider the impact on the Company from geopolitical risks (including
portfolio activity, risks and opportunities, gearing and revenue forecasts)
and to ensure that the Company had sufficient resilience in its portfolio and
operational structure to meet the challenged circumstances, which has
proved to be the case.
The Board, through the Management Engagement Committee, formally
reviews the performance and terms of appointment of the Manager at
least annually (see page 54 for further details).
Target outcome
The Company’s portfolio and affairs are well-managed, enabling the
Company to meet its strategic objectives and achieve long-term
sustainable success.
Other key third-party service providers
Purpose
In order for the Company to operate
as a listed investment company,
the Board relies on other service
providers for essential services
(in particular with regard to the
safekeeping of the Company’s assets,
share registration services, market
support for share issues and
buybacks and independent
assurance regarding the Company’s
financial statements) and for advice
and support in meeting relevant
obligations and complying with best
practice. The Board seeks to maintain
constructive relationships with the
Company’s other service providers,
either directly or through the
Manager, with regular
communications and meetings.
How we engage
The Management Engagement Committee conducts an annual review of
the performance and terms of appointment of the Company’s key service
providers (apart from the auditor, whose performance and terms of
appointment are reviewed by the Audit and Risk Assurance Committee)
to ensure they are performing in line with the Board’s expectations and
providing value for money (see page 54 for further details).
The Audit and Risk Assurance Committee is responsible for reviewing the
internal controls and risk management systems in place at the Company’s
key third-party service providers (see page 51 for further details).
Target outcome
Other key service providers provide the required level of service at cost levels
proportionate and competitive.
Debt providers
Purpose
The Board believes that the use of
debt can enhance returns to
shareholders over the long-term.
How we engage
On behalf of the Board, the Manager maintains a constructive working
relationship with the loan note holders, ensuring compliance with loan
covenants and providing regular covenant compliance confirmations and
other information as required.
Target outcome
To demonstrate a strong financial position that supports the
financing arrangements.
Governance
Financial
statements
Additional
information
35
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Promoting the success of the Company continued
AIC (The Association of Investment Companies)
Purpose
The Company is a member of the AIC,
which represents a broad range
of investment companies.
The AIC supports its members by
issuing publications and guidance
on issues such as tax, accounting,
company law and regulation; email
updates on key industry issues and
AIC work programmes; and running
events for the directors of its
members, including director
roundtables, conferences
and dinners.
How we engage
The Company provides information for inclusion in the AIC’s database which
is used to generate information regarding the Company on the AIC’s website
(www.theaic.co.uk).
The Manager, on behalf of the Company, comments on consultation and
proposal documents prepared by the AIC concerning matters that may
affect the Company and has supported the AIC’s lobbying activities.
Target outcome
• Support provided to AIC members assists the Board in its discussions
and decision making;
• The Company has a voice in the regulatory environment in which
it operates; and
• Information about the Company is disseminated widely.
Examples of stakeholder
consideration during the year
The Board is always mindful of the need to act in the best
interests of stakeholders as a whole and to have regard to
other applicable section 172 factors and this forms part of
the Board’s decision-making process. The following key
decisions taken by the Board during the year ended
31 October 2024 serve as examples of this:
• Issuing and buying back the Company’s shares: As set
out on page 6, the Board’s aim is for the Company’s
share price to reflect closely its underlying net asset
value, and also to reduce volatility and have a liquid
market in the shares.
The Board considers that it is in shareholders’ interests
for the Company to be able to issue shares when they
are trading at a premium to the net asset value and by
doing so the Company’s costs are spread across a
larger asset base. Any shares bought back to be held in
treasury are only purchased when the share price is
trading at a discount to the underlying net asset value.
During the year the Company bought back 88,341,407
shares which are held in treasury. See Note 18 on page
88 for further details.
• Reviewing the structure of the portfolio resulting in
the concentration of the portfolio into four regions and
reducing the number of holdings to approximately 100.
These changes will direct a greater amount of the
Company’s capital into the portfolio managers’ best
investment ideas and bring greater focus to the
regional portfolios. The reduction in portfolios from
six to four has created a Pan Europe portfolio,
incorporating the UK, and a Pan Asia (ex Japan)
portfolio, which includes the Chinese A shares. This is
to reduce the overlap within these regions and remove
potential conflicts. The Board continues to believe in
the value of regional specialists with access to stock
markets across the globe.
• Reviewing succession planning for the Board and
the Fund Manager, resulting in the decision not to
replace Julian Chillingworth immediately following
his retirement in February 2024. The Board will continue
to ensure that the balance of skills and experience on
the Board remains appropriate and that the succession
plan reflects this accordingly.
The Board appointed Richard West as Senior
Independent Director on 23 April 2024.
Following a review of the Fund Manager’s succession
plan and the retirement of Mike Kerley during the year,
the Board appointed Jamie Ross, the Pan-Europe
portfolio manager, to the role of Deputy Fund Manager.
• The establishment of the Marketing Committee,
the appointment of its Chair and the adoption of
appropriate Terms of Reference: See page 55 for
details of the Marketing Committee’s activities during
the year.
• Reviewing the use of revenue reserves to support the
Company’s dividend policy: The ability to use the
revenue reserve to help smooth the level of dividend
payments over the longer term is a distinguishing
feature of investment trusts.
• If the recommended final 2024 dividend payment is
approved by shareholders at the AGM, approximately
£0.2 million (2023: £2.6 million) will be transferred
to the revenue reserve. Adjusted for that transfer
and the third and final dividends, the revenue
reserve at the year-end amounts to approximately
£27.5 million (2023: £27.2 million), or 2.45p per share
(2023: 2.24p per share).
As explained above, the Directors’ overarching duty is
to promote the success of the Company for the benefit
of investors, with consideration of stakeholders’
interests. The Company’s main stakeholders are the
Company’s shareholders, the Manager, our lenders
and other service providers.
36
The Bankers Investment Trust PLC Annual Report 2024
The Company’s viability
The UK Corporate Governance Code requires the Board
to assess the future prospects for the Company, and to
report on the assessment within the Annual Report.
The Board considers that certain characteristics of the
Company’s business model and strategy are relevant
to this assessment:
• The Company’s investment objective, strategy and
policy, which are subject to regular Board monitoring,
mean that the Company is normally invested in readily
realisable, listed securities and that the level of
borrowings is restricted.
• The Company is a closed-end investment company
and therefore does not suffer from the liquidity issues
arising from unexpected redemptions. Without pressure
to sell, the Fund Manager has been able to rebalance
tactically the portfolio and take advantage of
recovering markets.
Also relevant were a number of aspects of the Company’s
operational agreements:
• The Company retains title to all assets held by the
Custodian under the terms of formal agreements
with the Custodian and Depositary.
• Long-term borrowing is in place, being the £50 million
3.68% loan notes 2035, £37 million 2.28% loan notes
2045 and €44 million 1.67% loan notes 2041, which are
also subject to formal agreements, including financial
covenants with which the Company complied in full
during the year. The value of long-term borrowing is
relatively small in comparison to the value of net assets,
being 8.6% (2023: 9.4%).
• Revenue and expenditure forecasts are reviewed
by the Directors at each Board meeting.
• The Company’s ongoing charge is amongst the lowest
of actively managed equities funds.
• Cash is held with approved banks.
In addition, the Directors carried out a robust assessment
of the principal risks and uncertainties which could
threaten the Company’s business model, including future
performance, liquidity and solvency. These risks, including
their mitigations and processes for monitoring them, are
set out on pages 31 and 32.
The principal risks identified as relevant to the viability
assessment were those relating to investment portfolio
performance and its effect on the net asset value, share
price and dividends, and threats to security over the
Company’s assets. The Board took into account the
liquidity of the Company’s portfolio, the existence of
the long-term fixed rate borrowings, the effects of any
significant future falls in investment values and income
receipts on the ability to repay and re-negotiate
borrowings, growing dividend payments, the desire
to retain investors and the potential need for share
buybacks. The Directors assess viability over five year
rolling periods, taking account of foreseeable severe but
plausible scenarios, having reviewed a five-year cash-
flow forecast and sensitivity analysis, reflecting the
potential impact of the principal risks as a whole, to
support its deliberations. The Directors believe that a
rolling five-year period best balances the Company’s
long-term objective, its financial flexibility and scope with
the difficulty in forecasting economic conditions affecting
the Company and its shareholders.
In coming to this conclusion, the Directors have
considered the ongoing impact of the wars in Ukraine and
Israel and changes in the international political landscape
in particular the impact on income and the Company’s
ability to meet its investment objective. The Board does
not believe that these will have a long-term impact on
the viability of the Company and its ability to continue
in operation, notwithstanding the short-term uncertainty
it has caused in the markets.
Based on their assessment, and in the context of the
Company’s business model, strategy and operational
arrangements set out above, the Directors have a
reasonable expectation that the Company is able to
continue in operation and meet its liabilities as they
fall due over the five-year period to 31 October 2029.
The Directors have also concluded that the Company has
adequate resources to continue in operational existence
for at least 12 months from the date of approval of these
financial statements being 31 January 2026, and it is
therefore appropriate to prepare these financial
statements on a going concern basis.
Approval
The Strategic Report has been approved by the Board
On behalf of the Board
Richard West
Senior Independent Director
15 January 2025
Governance
Financial
statements
Additional
information
37
The Bankers Investment Trust PLC Annual Report 2024
Strategic report
Governance
In this section
39 Directors and fund managers
42 Directors’ report
44 Corporate governance report
51 Audit and Risk Assurance Committee report
54 Management Engagement Committee report
55 Marketing Committee report
56 Nominations Committee report
58 Directors’ remuneration report
61 Statement of Directors’ Responsibilities
62 Independent Auditor’s report
38
The Bankers Investment Trust PLC Annual Report 2024
Directors and fund managers
The right balance of skills and knowledge
Simon
ME
N
MK
I
Miller
Position: Chair of the Board
Date of appointment:
1 January 2022
(Chair from 24 February 2022)
Skills and experience
Simon Miller read law at
Cambridge and was called to the
bar. He subsequently worked for
Lazard Brothers and County Bank.
Until 2021 he was Chair of Brewin
Dolphin, one of the UK’s largest
wealth management businesses.
He has been Chair and non-executive
director of various companies and
has a wide range of experience in
the financial services sector.
He has also served on the board of
several investment trusts and was
Chair of Fleming Managed Income
Trust plc, JPMorgan Elect plc, Artemis
Alpha Trust plc, JPMorgan Global
Convertibles Income Fund Limited,
Amati VCT and Blackrock Sustainable
American Income Trust plc. He was
Senior Independent Director of STV
Group plc until December 2024.
External appointments
Simon Miller is Chair of
Hampden & Co, private bankers.
Richard
A
ME
N
MK
I
West
Position: Senior Independent Director
Date of appointment: 1 April 2020
(Senior Independent Director from
23 April 2024)
Skills and experience
Richard has more than 30
years’ experience in investment
management, latterly at UBS Global
Asset Management (previously
Phillips & Drew Fund Management) in
a variety of positions, including Head
of Global Equity Research, Head of
European Equities and Head of UK
Equities. Prior to UBS, he worked for
Crown Financial Management as
Head of UK Equities and for Norwich
Union as an economist and then
as a UK equities portfolio manager.
External appointments
None.
Ankush
A
ME
N
MK
I
Nandra
Position: Chair of the Audit and
Risk Assurance Committee
Date of appointment to the Board
and as Chair of Audit and Risk
Assurance Committee:
1 September 2023
Skills and experience
Ankush has over 20 years’ experience
mainly in the pharmaceutical industry.
He is currently Senior Vice President
Group Planning and Finance Business
Partnering at AstraZeneca. Prior to
joining AstraZeneca Ankush spent
several years at GlaxoSmithKline (GSK)
and has also worked with HSBC
Investment Bank following qualification
as a Chartered Accountant with KPMG.
He was a non-executive director of
AstraZeneca Pharma India Limited
which is an Indian listed subsidiary
of AstraZeneca.
External appointments
Ankush Nandra is a non-executive
director and Governor of
Oxford Brookes University.
Board of Directors
All the Directors are non-executive Directors and independent of the Manager.
Strategic report
Financial
statements
Additional
information
39
The Bankers Investment Trust PLC Annual Report 2024
Governance
Directors and fund managers continued
Charlotte
A ME N MK I
Valeur
Position: Director
Date of appointment:
1 November 2022
Skills and experience
Charlotte has more than 40 years of
experience in financial markets and is
the managing director of GGG Ltd, a
governance consultancy company.
Charlotte was the founding partner of
Brook Street Partners in 2003 and the
Global Governance Group in 2009. Prior
to this, Charlotte worked in London as a
director in capital markets at Warburg,
BNP Paribas, Société Générale and
Commerzbank, beginning her career
in Copenhagen with Nordea A/S. With
significant experience in international
corporate finance, Charlotte has a
high level of technical knowledge of
capital markets.
Charlotte is a former non-executive
director of JP Morgan Convertible
Bond Income Fund, Kennedy Wilson
Europe Real Estate Plc, Blackstone
Loan Financing Limited, Phoenix Spree
Deutschland Plc, NTR plc and Digital 9
Infrastructure plc.
External appointments
Charlotte is a non-executive director
at FSN Private Equity and Laing
O’Rourke Construction.
Hannah
A ME N MK I
Philp
Position: Chair of the
Marketing Committee
Date of appointment:
1 November 2022
(Marketing Committee Chair from
9 January 2024)
Skills and experience
Hannah Philp has direct and relevant
experience within the sector,
particularly in the fields of marketing
and communication. Hannah is
Co-Founder and a Director of ARC
Club Ltd, a real estate operator
managing shared amenities in
residential developments. Prior to this
Hannah was director of marketing at
Witan Investment Trust plc and an
account director within the investor
relations team at Edison Investment
Research with responsibility for
Investment Trusts.
External appointments
Hannah is a non-executive director at
JPMorgan UK Small Cap Growth and
Income Trust plc.
Chair of Committee
A
Audit and Risk Assurance Committee
ME
Management Engagement
Committee
N
Nominations Committee
MK
Marketing Committee
I
Insider Committee
p.44 Corporate Governance
40
The Bankers Investment Trust PLC Annual Report 2024
Directors and fund managers continued
Alex Crooke
Position: Fund Manager
Date of appointment:
1 July 2003
Skills and experience
Alex Crooke is a Portfolio
Manager on the Global Equity
Income Team, a position he has
held since 2023. He served as
Head of Equities – EMEA and Asia
Pacific from 2018 to 2023.
Previously, he was head of Global
Equity Income and Specialist
Equities Teams from 2013 to 2018.
Alex was recruited by Henderson
to co-manage the UK assets of
an investment trust in 1994 as an
associate director. He later
became a fund manager
responsible for a number of UK
and global income-oriented
equity products. Alex began his
investment career with Equitable
Life Assurance Society in 1990 as
a US investment analyst.
Alex holds a BSc degree (Hons)
in physics with astrophysics from
Manchester University. He is an
associate member of the Society
of Investment Professionals
(ASIP) and has 34 years of
financial industry experience.
See p.8 Fund manager’s report
Jamie Ross
Position: Deputy Fund Manager
Date of appointment:
26 June 2024
Skills and experience
Jamie Ross is a Portfolio
Manager on the European
Equities Team at Janus
Henderson Investors, a position
he has held since 2016. He was
appointed as portfolio manger
of the European sleeve of The
Bankers Investment Trust in 2018
and became Deputy Fund
Manager in 2024. Jamie is co
fund manager of Henderson
European Trust plc. Prior to 2016,
he was a portfolio manager on
the UK Equities Team, where he
co-managed a UK equities
pooled fund. Before that, he was
an assistant portfolio manager
on the Pan European Equities
Team. He started his career with
Henderson in 2007. Jamie
graduated with a BA (Hons)
degree in economics from
Durham University. He holds the
Chartered Financial Analyst
designation and has 17 years of
financial industry experience.
Fund managers
The fund managers at the date of this report are:
Strategic report
Financial
statements
Additional
information
41
The Bankers Investment Trust PLC Annual Report 2024
Governance
Directors’ report
The Directors present the audited financial statements
of the Company and their report for the year from
1 November 2023 to 31 October 2024. The Bankers
Investment Trust PLC (registered and domiciled in England
and Wales with company registration number 00026351)
was active throughout the year and was not dormant.
For the purposes of the Companies Act 2006, the
Corporate Governance Statement, Audit and Risk
Assurance Committee report (pages 44 to 53),
the Investment Portfolio (pages 8 to 21), Alternative
Performance Measures and General Shareholder
Information (pages 93 to 97) form part of the
Directors’ Report.
Dividend
A final dividend of 0.672p per share (2023: 0.66p), if
approved by shareholders at the AGM, is to be paid on
28 February 2025 to those shareholders on the register
on 24 January 2025. The shares will trade ex-dividend on
23 January 2025. This final dividend together with the
three interim dividends already paid bring the total
dividends for the year to 2.688p (2023: 2.56p) per share.
See the Chair’s Statement on page 7 for further details.
A review of the year and the outlook for the forthcoming
year can be found in the Strategic Report.
Share capital
The Company’s share capital comprises ordinary shares
with a nominal value of 2.5p each. The voting rights of
the shares on a poll are one vote for every one ordinary
share held. To the extent that they exist, the revenue profits
and some of the capital of the Company (including
accumulated revenue and capital reserves arising on
investments sold) are available for distribution by way
of dividends to the holders of the ordinary shares. Upon
a winding-up, after meeting the liabilities of the Company,
the surplus assets would be distributed to the shareholders
pro rata to their holdings of ordinary shares.
There are no restrictions concerning the transfer of
securities in the Company, no special rights with regard
to control attached to securities, no agreements between
holders of securities regarding their transfer known to the
Company and no agreement which the Company is party
to that affects its control following a takeover bid.
At the beginning of the year, there were 1,315,102,830
ordinary shares of 2.5p each in issue, of which 80,870,553
were held in treasury. During the year the Company
bought back 88,341,407 shares which are held in treasury.
At 31 October 2024 the total number of ordinary shares
held in treasury was 169,211,960. Therefore, the total voting
rights in the Company as at 31 October 2024 was
1,145,890,870.
Between 1 November 2024 and 13 January 2025, being
the latest practicable date prior to the publication of this
Annual Report, 21,986,416 shares were bought back and
held in treasury. Accordingly, the number of shares in issue
as at 13 January 2025 was 1,315,102,830, of which 191,198,376
were held in treasury. Therefore, the total voting rights in
the Company at that date was 1,123,904,454.
Shareholder authorities
At the 2025 AGM, the Company will seek to renew its
authorities from shareholders to allot shares up to 10% of its
issued share capital and to buy back shares up to 14.99%
of its issued share capital, in each case excluding treasury
shares, as at the date of the 2025 AGM. Please refer to the
Notice of Meeting that accompanies this Annual Report for
further details. This can also be found on the Company’s
website at www.bankersinvestmenttrust.com.
The Company only issues shares (or sells shares out of
treasury) at a premium (after costs) to NAV. The Company
remains prepared to buy back shares, taking account of
prevailing market conditions (which are not under the
Board’s control), the level of the discount (both absolute
and relative to the Company’s closest peers) and the
impact on the NAV per share.
42
The Bankers Investment Trust PLC Annual Report 2024
Directors’ report continued
Fund Manager’s interests
Alex Crooke, the Fund Manager, had a beneficial interest
in 5,407,279 of the Company’s shares as at 13 January
2025, being the latest practicable date prior to publication
of this Annual Report.
Holdings in the Company’s shares
The only notification of interest in the voting rights of the
Company as at 31 October 2024 made in accordance
with the Disclosure Guidance and Transparency Rules
was as follows.
% of voting
rights
Rathbones Investment Management Ltd
9.3%
There have been no further notifications in the period to
13 January 2025, being the latest practicable date prior to
the publication of this Annual Report.
Related party transactions
The Company’s transactions with related parties in the
year were with its Directors and Janus Henderson. There
were no material transactions between the Company and
its Directors during the year other than the amounts paid
to them in respect of Directors’ remuneration for which
there were no outstanding amounts payable at the year
end. In relation to the provision of services by the Manager,
other than fees payable by the Company in the ordinary
course of business and the provision of marketing
services, there were no transactions with the Manager
affecting the financial position of the Company during
the year. More details on transactions with the Manager,
including amounts outstanding at the year end, are given
in note 23 on page 90.
Directors
Details of the Directors and their appointments can be
found on pages 39 and 40.
Directors’ remuneration and
shareholdings
The Directors’ remuneration report on pages 58 to 60
provides information on the remuneration and interests
of the Directors.
Annual General Meeting (‘AGM’)
The AGM will be held on 25 February 2025 at 12 noon at
the Company’s registered office. The Notice of Meeting
and details of the resolutions to be proposed at the AGM
are contained in the Notice of Meeting being sent to
shareholders with this Annual Report.
Financial risk management
The principal risks and uncertainties facing the Company
are set out on pages 31 and 32. The principal financial risks
and the Company’s policies and procedures for
managing these risks are set out in note 16 to the financial
statements on pages 82 to 87.
Energy and carbon reporting
Details of the Company’s disclosures with regard to
energy and carbon reporting can be found on pages
22 and 23.
Post balance sheet events
The Company has no post balance sheet events to report.
Disclosure of information to the
Company’s Auditor
Each of the Directors who were members of the Board at
the date of approval of this Annual Report confirms that,
to the best of his or her knowledge and belief, there is no
information needed by the Company’s Auditor in
connection with the preparation of the Annual Report of
which the Company’s Auditor is unaware and he or she
has taken all the steps a Director might reasonably be
expected to have taken to be aware of any such audit
information and to establish that the Company’s Auditor
is aware of that information.
UK Listing Rule 6.6.4
UK Listing Rule 6.6.4 requires the Company to include
certain information in a single identifiable section of the
Annual Report or a cross reference table indicating where
the information is set out. The Directors confirm that there
are no disclosures to be made in this regard other than
in accordance with UK Listing Rule 6.6.1(6), the information
on which is detailed on page 42 under Share capital.
Other information
Information on future developments and financial risks
are detailed in the Strategic Report.
Approval
The Directors’ report has been approved by the Board.
By order of the Board
Janus Henderson Secretarial Services UK Limited
Corporate Secretary
15 January 2025
Strategic report
Financial
statements
Additional
information
43
The Bankers Investment Trust PLC Annual Report 2024
Governance
Corporate Governance report
Governance structure
The Board had four principal Committees in the year under review: the Audit and Risk Assurance Committee, the
Management Engagement Committee, the Nominations Committee and the Marketing Committee. The Company
has also constituted an Insider Committee to assist the Board in its obligations under the Market Abuse Regulations.
Board of Directors
Comprised of five independent non-executive Directors
Non-executive
oversight of the Company’s operations
and
selection and appointment of service providers
The Company’s operations are carried out
by
specialised third-party service providers
Third-party service providers appointed by the Board
Janus Henderson Investors
Fund Manager: Alex Crooke | Deputy Fund Manager: Jamie Ross
Regional Portfolio Managers: Jamie Ross, Jeremiah Buckley, Junichi Inoue and Sat Duhra
Alternative Investment Fund Manager: Janus Henderson Fund Management UK Limited
Depositary and Custodian
BNP Paribas SA
Corporate brokers
J.P. Morgan Cazenove
and Peel Hunt (UK)
Craigs Investment
Partners Limited (NZ)
Registrars
Equiniti Limited (UK)
Computershare Investor
Services Limited (NZ)
Audit and Risk
Assurance
Committee
Purpose: Ensure the
integrity of the financial
reporting, evaluate the
effectiveness of the
systems of internal
control and risk
management and
oversee the
relationship with the
external Auditor
Nominations
Committee
Purpose: Ensure the
Board has a balance
of skills, experience and
diversity, has a formal
approach to the
appointment of
Directors, maintains an
effective framework for
succession planning and
setting remuneration
policy and fees
Management
Engagement
Committee
Purpose: Ensure that
the performance of the
Manager and third-
party service providers
meet expectations
and their terms
of engagement
remain appropriate
Marketing
Committee
Purpose: Ensure that
demand for the
Company’s shares
is generated and
evaluate the
effectiveness of
the marketing
initiatives used to
generate demand
44
The Bankers Investment Trust PLC Annual Report 2024
Corporate Governance report continued
Governance codes
The Board is pleased to report to shareholders on the
Company’s governance arrangements and how the
principles of the applicable codes have been applied
during the year under review.
Applicable governance codes
The Company has a listing on the London Stock
Exchange and is required by the UK Listing Rules and
the Disclosure Guidance and Transparency Rules issued
by the FCA to report on how the principles of the UK
Corporate Governance Code (the ‘UK Code’) have been
applied. Being an investment company, a number of
the provisions of the UK Code are not applicable as
the Company has no executive Directors or internal
operations. The Board has considered, therefore, the
principles and provisions of the Code of Corporate
Governance published by the Association of Investment
Companies (the ‘AIC Code’). The AIC Code addresses
the principles set out in the UK Code as well as
additional principles and recommendations on issues
that are of specific relevance to investment companies.
The Financial Reporting Council (‘FRC’) has endorsed
the AIC Code and confirmed that, by reporting against
it, boards of investment companies are able to meet
their obligations in relation to the UK Code and UK
Listing Rule 6.6.6.
The Company also maintains a listing on the New Zealand
Stock Exchange (‘NZX’) where it is classified as a Foreign
Exempt Issuer. The Listing Rules of the NZX therefore require
the Company to comply with the provisions applicable to
its home exchange, being the London Stock Exchange, at
all times, notify the NZX of any changes pertinent to the
listing on its home exchange and ensure that any
announcements made to its home exchange are
simultaneously released to the market in New Zealand.
Accordingly, for the purpose of its NZX listing, the
Company reports against its compliance with the AIC
Code rather than the NZX Corporate Governance Code.
Copies of the AIC Code and the UK Code can be found on
the respective organisations’ websites: www.theaic.co.uk
and www.frc.org.uk. The AIC Code includes an explanation
of how it adapts the principles and provisions set out in
the UK Code to make them relevant for investment
companies.
Statement of compliance
The Board has considered the principles and provisions
of the AIC Code as these provide more relevant
information on the Company’s governance arrangements
to shareholders. The Company has complied with the
principles and provisions of the AIC Code throughout
the year ended 31 October 2024. As the Company is an
investment company, it has no chief executive or other
executive Directors and therefore has no need to consider
the remuneration of executive Directors.
In addition, the Company does not have any internal
operations (having delegated its day-to-day operations
to the Manager) and therefore does not maintain an
internal audit function.
However, the Audit and Risk Assurance Committee
considers the need for such a function at least annually
(see page 51 for further information).
Board leadership and purpose
The Board is responsible for providing leadership and
setting the tone from the top in terms of the Company’s
culture and values. The Board appoints all third-party
service providers and monitors their performance
throughout the year. The Directors formally evaluate the
quality of the service provided by each third-party service
provider and consider the appropriateness of the terms of
their engagement at least annually. The Board aligns the
Company’s risk appetite with its investment objectives and
establishes investment limits and restrictions accordingly.
The Board keeps under regular review the risks faced by
the Company and assesses the effectiveness of internal
controls put in place to mitigate these.
As well as making the strategic decisions regarding the
Company’s purpose and establishing the risk management
framework, the Board’s purpose is to provide independent
oversight of the operations delivered by the Company’s
third-party service providers and to challenge the
decisions and recommendations made by them,
particularly the Manager.
Operation of the Board
The Board meets formally at least six times a year,
with additional Board or Committee meetings arranged
when required. At each formal meeting, matters reviewed
and considered by the Board include the Company’s
investment transactions, compliance with investment
restrictions, investment performance, revenue budgets,
financial analyses and other reports of an operational
nature and any shareholder communications and issues.
Representatives of the Manager attend each Board
meeting, as required, enabling the Directors to probe
further on matters of concern. The Directors also have
regular contact with the Manager between formal
meetings. In addition, the Chair is able to attend meetings
of all the chairs of the listed investment companies
managed by Janus Henderson which provide a forum to
discuss industry matters which are then reported to the
Board. Additional Board (or Committee) meetings are
arranged when required.
The Directors have regular contact with the Fund Manager
and other employees of the Manager in connection with
the delivery of sales, marketing and other administrative
services. The Board has a formal schedule of matters
specifically reserved for its decision, which includes:
determination of the Company’s investment objectives,
future strategic direction, investment policy, investment
limits and restrictions, gearing policy and dividend policy;
management of the Company’s capital structure,
including share issues/buybacks and share price
premium/discount management, appointment and
removal of Directors and third-party service providers;
and determination of the Company’s financial reporting,
internal control and risk management and corporate
governance arrangements. The Board approves
communications with shareholders, the appointment
Strategic report
Financial
statements
Additional
information
45
The Bankers Investment Trust PLC Annual Report 2024
Governance
Corporate Governance report continued
of new Directors, and determines individual Directors’
remuneration. Full and timely management, financial,
regulatory and other relevant information is provided to all
Directors to allow them to discharge their responsibilities
and to enable the Board (and its Committees) to function
effectively. In particular, the Board receives and considers
regular and ad hoc reports and other information as
required to enable it to maintain oversight and monitor
the performance of, and challenge constructively,
the Manager and other third-party service providers.
The proceedings of all Board and Committee meetings
are minuted, with any particular concerns raised by the
Directors appropriately recorded.
The Corporate Secretary, Janus Henderson Secretarial
Services UK Limited, is a subsidiary of Janus Henderson
with its own reporting lines and audited internal controls.
There are processes and controls in place to ensure
that there is a clear distinction between the two entities,
particularly when dealing with any conflicts or issues
between the Company and Janus Henderson.
Any correspondence from shareholders addressed to the
Chair or the Company received at Janus Henderson’s
offices is forwarded to the Chair of the Company
in line with the established procedures in place. Any
correspondence is submitted to the next Board meeting.
The Directors have access to the advice and services
of the Corporate Secretary through its appointed
representative. The Corporate Secretary is responsible
to the Board for ensuring that Board and Committee
procedures are followed, and that applicable rules
and regulations are complied with. The Company has a
procedure for Directors to take independent professional
advice, at the expense of the Company, in the furtherance
of their duties.
Janus Henderson and BNP Paribas, which acts for
Janus Henderson, have arrangements in place by
which their staff may, in confidence, raise concerns
about possible improprieties in relation to financial
reporting or other matters.
The Board and the Manager operate in a supportive,
co-operative and open environment.
Division of responsibilities
Role Primary responsibilities
Shareholders/
investors
The Company’s shareholders are responsible for:
• approving material changes to the Company’s investment policy;
• making decisions regarding changes to the Company’s constitution; and
• electing and re-electing Directors to the Board, or removing them from office if deemed appropriate.
Chair
The Chair of the Board is responsible for:
• leading and managing Board business and ensuring the timely flow of information from service
providers to the Board. The Chair facilitates open, honest and constructive debate among Directors;
• leading the Nominations Committee in developing succession planning and the identification of
potential candidates for appointment to the Board (except when considering their own succession);
• leading the Board in determining its governance framework, culture and values; and
• managing the relationship with the Manager.
The role description for the Chair is available on the website.
Senior
Independent
Director
The Senior Independent Director is responsible for:
• fulfilling the role of sounding board for the Chair and intermediary for the other Directors
as necessary;
• leading the performance evaluation of the Chair; and
• acting as a channel of communication for shareholders in the event that contact through
the Chair is inappropriate.
The role description of the Senior Independent Director is available on the website.
Independent
non-executive
Directors
The independent non-executive Directors are responsible for:
• providing constructive and effective challenge, especially to the decisions of the Manager;
• scrutinising and holding to account the performance of the:
– Fund Manager in meeting the investment objective;
– Manager in the promotion of the Company and day-to-day smooth operations of the
Company’s business; and
• providing strategic guidance and offering specialist advice.
46
The Bankers Investment Trust PLC Annual Report 2024
Corporate Governance report continued
Role Primary responsibilities
Committee
Chairs
The Committee chairs are responsible for:
• the leadership and governance of their Committee;
• maintaining the relationships with specialist service providers delivering services within the remit
of their Committee;
• reporting on the activities of their Committee to the Board; and
• seeking approval from the Board for the responsibilities set out in their respective terms of
reference.
Manager
(AIFM)
The Manager is the Company’s appointed Alternative Investment Fund Manager and is responsible for:
• promoting the Company’s investment proposition to professional and retail investors;
• making the necessary reporting to the FCA regarding the Company’s status as an Alternative
Investment Fund;
• providing accounting, company secretarial and other administrative services to the Company
ensuring compliance with the applicable statutory and regulatory provisions; and
• coordinating the delivery of services provided by the Company’s other third-party service providers.
Fund Manager
The Fund Manager and his team are responsible for:
• selecting the stocks held within the portfolio;
• diversification and risk management through stock selection and size of investment;
• determining the volume and timing of acquisitions and disposals; and
• determining the frequency and level of gearing within the overall limits set by the Board.
Board composition and independence
The Board, chaired by Simon Miller, currently consists of
five non-executive Directors. Julian Chillingworth retired
from the Board on 22 February 2024. The remaining five
directors served throughout the year. The biographies of
the Directors holding office at the date of this report are
set out on pages 39 and 40.
The Articles of Association provide that the total number of
Directors shall not be less than three nor more than eight.
The independence of the Directors is determined
with reference to the AIC Code and is reviewed by the
Nominations Committee at least annually. The Committee
considers each of the Director’s other appointments and
commitments, as well as their tenure of service and any
connections they may have with the Manager or other
key service providers.
Following completion of the evaluation in September 2024,
the Committee concluded that the Chair and each of
the other Directors in office at that time continued to be
independent of the Manager and free of any relationship
which could materially interfere with the exercise of their
independent judgement.
The Chair was independent on appointment in accordance
with the criteria set out in the AIC Code and has no
relationships that may create a conflict of interest between
his interests and those of shareholders. Details of his other
significant commitments can be found on page 39.
Directors’ conflicts of interest
The Company’s Articles of Association permit the Board
to consider and, if it sees fit, to authorise situations where
a Director has an interest that conflicts, or may possibly
conflict, with the interests of the Company (‘situational
conflicts’). The Board has a formal system in place for
Directors to declare situational conflicts to be considered
for authorisation by those Directors who have no interest
in the matter being considered.
In deciding whether to authorise a situational conflict,
the non-conflicted Directors must act honestly and
in good faith with a view to the best interests of the
Company and they may impose limits or conditions
when giving the authorisation, or subsequently, if they
think this is appropriate.
Any situational conflicts considered, and any authorisations
given, are recorded in the relevant meeting minutes.
The prescribed procedures have been followed in
deciding whether, and on what terms, to authorise
situational conflicts and the Board believes that the
system it has in place for reporting and considering
situational conflicts continues to operate effectively.
Strategic report
Financial
statements
Additional
information
47
The Bankers Investment Trust PLC Annual Report 2024
Governance
Corporate Governance report continued
Appointments to the Board
The Board may appoint Directors at any time during
the year. Any Director so appointed should stand for
appointment by shareholders at the next AGM in
accordance with the provisions of the Company’s Articles
of Association. In accordance with the Company’s Articles
of Association, each Director retires from office at each AGM
and, if appropriate, offers themselves for re-appointment.
All the Directors, being eligible, have stated that they will
offer themselves for re-appointment at the upcoming AGM.
The Articles permit shareholders to remove a Director
by passing an ordinary resolution at a general meeting.
Directors are not entitled to any termination payments
or other compensation for loss of office in relation to their
appointment. The terms and conditions of Directors’
appointments are set out in formal letters of appointment
which are available for inspection on request.
Tenure and policy on the tenure of the
Chair and Directors
In advance of each AGM, the Board agrees whether
it is appropriate for Directors who are eligible to be
recommended for re-appointment, taking into account
the annual performance evaluation by and formal
recommendations from the Nominations Committee
and the ongoing requirements of the AIC Code (including
the need to refresh the Board and its Committees).
The Nominations Committee believes that Directors with
more than nine years’ service can still form part of an
independent majority and in particular their experience can
be beneficial to the Board. However, the Board is cognisant
of the benefits of regularly refreshing Board membership
and seeks to do so while retaining a balance of knowledge
of the Company and the relationship with the Manager.
The Board’s policy for Directors, including the Chair, is,
therefore, that they serve for no more than nine years,
other than in exceptional circumstances.
Directors’ professional development
Newly appointed Directors are offered a bespoke
induction programme which covers the legal and
regulatory framework for investment companies and the
operations of the Manager, including the Manager’s
compliance and risk management frameworks and the
accounting, sales and marketing and other administration
services provided by the Manager.
Directors are also provided on a regular basis with key
information on proposed developments or changes in
regulatory and statutory requirements from, amongst
others, the Corporate Secretary, the AIC and the
Company’s Auditor. Changes affecting Directors’
responsibilities are advised to the Board as they arise.
Directors also regularly participate in relevant training,
including that provided by the Manager and industry
seminars and may do so at the expense of the Company.
Directors’ individual training requirements are considered
as part of the annual evaluation process which is led by
the Chair of the Board.
Directors’ insurance
and indemnification
Directors’ and officers’ liability insurance cover is in place
in respect of the Directors. Under the Company’s Articles
of Association and subject to the provisions of UK
legislation, a qualifying third-party provision indemnity
may be provided to Directors in respect of costs which
they may incur relating to the defence of any proceedings
brought against them arising out of their positions as
Directors, in which they are acquitted, or judgement is
given in their favour by the court. No indemnity was given
during the year or up to the date of this report.
Attendance at meetings
The following table sets out the number of formal Board and Committee meetings held during the year and the
number of meetings attended by each Director. All Directors attended the AGM in February 2024.
Board
Audit and
Risk
Assurance
Committee
Nominations
Committee
Management
Engagement
Committee
Marketing
Committee
Number of scheduled meetings each year
6 4 1 1 2
Simon Miller
1
6 4 1 1 1
Julian Chillingworth
2
32
n/a n/a
n/a
Ankush Nandra
641 1 1
Hannah Philp
641 11
Charlotte Valeur
64 1 1 1
Richard West
641 11
1 Simon Miller is not a member of the Audit and Risk Assurance Committee. However, he attended the meetings held during the year by invitation
2 Julian Chillingworth retired from the Board on 22 February 2024
The Marketing Committee’s second meeting was held after the Company’s year end. The Insider Committee did not
meet during the year.
48
The Bankers Investment Trust PLC Annual Report 2024
Corporate Governance report continued
The Board’s Committees
The Board had four principal Committees during the year
under review: the Audit and Risk Assurance Committee,
the Management Engagement Committee, the
Nominations Committee and the Marketing Committee.
The Audit and Risk Assurance Committee is responsible
for, in particular, ensuring the integrity of the Company’s
financial reporting, evaluating the effectiveness of the
systems of internal control and risk management and
monitoring the effectiveness and objectivity of the
external Auditor.
The Audit and Risk Assurance Committee report is on
pages 51 to 53.
The Management Engagement Committee report is
on page 54.
The Marketing Committee report is on page 55.
The Nominations Committee report is on pages 56 and 57.
The Company has no executive Directors and has not
constituted a Remuneration Committee. Directors’ fees
are considered by the Nominations Committee. The
Board has also constituted an Insider Committee which
meets when required to assist the Board in discharging
its responsibilities under the Market Abuse Regulations.
The terms of reference for each of the principal
Committees are kept under regular review by the
Board and are available on the Company’s website
www.bankersinvestmenttrust.com.
Internal control and risk management
The Board has overall responsibility for the Company’s
system of internal control and for reviewing its
effectiveness. The Audit and Risk Assurance Committee
supports the Board in the monitoring of the internal
control and risk management framework. The Board has
established an ongoing process for identifying, evaluating
and managing the principal risks faced by the Company.
The process accords with the FRC’s guidance on Risk
Management, Internal Control and Related Business
and Financial Reporting. The system was in operation
throughout the year and up to the date of this report.
The system is designed to meet the specific risks faced
by the Company and takes account of the nature of the
Company’s reliance on its service providers and their
internal controls. The system therefore manages rather
than eliminates the risk of failure to achieve the
Company’s business objectives and provides reasonable,
but not absolute, assurance against material
misstatement or loss.
The key components of the internal control framework
include:
• Clearly defined investment criteria which specify levels
of authority and exposure limits. The Board reviews
reports on investment performance against and
compliance with the criteria at each meeting.
• Regular financial reporting which allows the
Board to assess the Company’s financial position.
The management accounts and forecasts are
reviewed by the Board at each meeting.
• The contractual agreements with the Manager and all
other third-party service providers. The Board reviews
performance levels and adherence to relevant
provisions of the agreements on a regular basis
through reporting to the Board and conducts a formal
evaluation of the overall level of service provided at
least annually.
• The review of controls at the Manager and other
third-party service providers. The Board receives
quarterly reporting from the Manager and Depositary,
and reviews annual assurance reports on the
effectiveness of the control environments at the
Company’s key service providers.
• The review of additional reporting provided by:
– the Manager’s Operational Risk team on the
control environment in operation at the Manager
and their view of the control environments in place
at the third-party service providers used by the
Company; and
– the Manager’s Internal Audit team on areas of
operation which are relevant to the Company.
Internal audit function
Systems are in operation to safeguard the Company’s
assets, to maintain proper accounting records, with
adequate segregation of duties, and to ensure that
financial information used within the business, or
published, is reliable. The Company is an investment
company, has no employees and delegates all executive
activities to third-party service providers, principally
among them, the Manager, Janus Henderson. The Board
places reliance on the Company’s framework of internal
control and the reporting received from specific second
and third line of defence teams at the Manager.
The Manager’s Operational Risk team support the
Audit and Risk Assurance Committee in considering the
independently audited reports on the effectiveness of
internal controls in place at the Company’s third-party
service providers. The Manager’s Internal Audit
department provides regular reporting to the Board
on the operations at the Manager and presents at least
annually to the Audit and Risk Assurance Committee.
The Board has therefore concluded that it is not necessary
at the present time for the Company to have its own
internal audit function.
Strategic report
Financial
statements
Additional
information
49
The Bankers Investment Trust PLC Annual Report 2024
Governance
Corporate Governance report continued
The Board reviewed the effectiveness of the Company’s
system of internal control for the year ended 31 October
2024 (see page 49). During the course of its review the
Board did not identify and was not advised of any failings
or weaknesses directly relating to the Company that were
determined as significant.
Communication with our stakeholders
Please see pages 33 to 36.
Board of Directors
Comprises independent non-executive Directors
Ernst & Young LLP
Independent auditors
Janus Henderson
Investment
management,
company secretarial,
sales, marketing, PR
and administration
Reporting
Investment
performance update
(at each meeting)
Compliance with
investment limits and
restrictions (monthly)
Internal controls
report (quarterly)
Effectiveness of
control environment
(annually)
BNP Paribas SA
Depositary and
custodian
Reporting
Depositary report
(quarterly)
Presentation from the
depositary
and
custodian
(annually)
Effectiveness of
control
environment
(annually)
BNP Paribas SA
Accounting
services,
engaged
and
reporting to
the
Manager
Reporting
Balance sheet
Liquidity and gearing
Revenue forecasts
Portfolio valuation
Portfolio transactions
Effectiveness of
control
environment
(annually)
System of internal controls
Principal third-party
service providers
• receive regular reporting
at meetings;
• review the annual
assurance report
produced by each
organisation;
• receive additional
reporting on the control
environment from the
Manager’s risk team;
• receive reporting from
the Manager’s internal
audit team on areas
relevant to investment
trusts; and
• formally evaluate
performance on
an annual basis.
Secondary third-party
service
providers
• receive regular reporting on
their
activities at meetings; and
• formally evaluate performance
on
an annual basis.
Registrars
Equiniti Limited (UK)
Computershare Investor
Services Limited (NZ)
Corporate brokers
J.P. Morgan Cazenove
and Peel Hunt (UK)
Craigs Investment
Partners Limited (NZ)
How the system of internal control operates
The Board delegates contractually to third-party service
providers for all of the Company’s operational
requirements. It maintains oversight of these providers
throughout the year by receiving regular reporting on their
activities. All are considered key stakeholders.
The Management Engagement Committee formally
evaluates the performance and service delivery of all
third-party service providers at least annually.
The Audit and Risk Assurance Committee evaluates
the performance of the Auditor on completion of each
audit cycle.
50
The Bankers Investment Trust PLC Annual Report 2024
Audit and Risk Assurance Committee report
I am pleased to present the Audit and Risk Assurance
Committee report for the year ended 31 October 2024.
Membership
The members of the Audit and Risk Assurance Committee
(‘Committee’) during the year were Ankush Nandra, Chair
of the Committee, Hannah Philp, Charlotte Valeur and
Richard West, all of whom are considered to have the skills,
experience and objectivity to be an effective Committee.
The Committee’s Chair, Ankush Nandra, is a Chartered
Accountant and is considered by the Board to have
recent and relevant financial experience. The Committee
as a whole has competence relevant to the sector in
which the Company operates and to the Company
as an investment trust. Other Directors may attend
meetings of the Committee by invitation of the Chair.
Julian Chillingworth was also a member of the Committee
until his retirement on 22 February 2024.
Meetings
The Committee met four times during the year. While not
a member of the Committee, Simon Miller has also
attended meetings by invitation over the past year. The
Company’s external Auditor, the Fund Manager and the
Manager’s Financial Reporting Senior Manager for
Investment Trusts attend meetings of the Committee on a
regular basis. The Manager’s Global Head of Internal Audit,
its Head of EMEA Operational Risk, the Chief Information
Security Officer and members of the Business Resilience
team also presented to the Committee at one meeting.
Roles and responsibilities
The Audit and Risk Assurance Committee is responsible for
monitoring the integrity of the Company’s financial
reporting, evaluating the effectiveness of the systems of
internal control and risk management and making
recommendations to the Board on the appointment of
the external Auditor whose effectiveness and objectivity
are reviewed by the Committee. The Audit and Risk
Assurance Committee formally reports to the Board. The
Committee’s responsibilities are set out in formal terms of
reference which are regularly reviewed and available on
the Company’s website www.bankersinvestmenttrust.com.
Committee evaluation
The activities of the Audit and Risk Assurance Committee
were considered as part of the Board appraisal process.
Activities during the year
In discharging its duties over the course of the year,
the Committee considered and reviewed:
• its terms of reference, noting that evaluation of the
Committee’s effectiveness is considered as part of
the process described on page 56.
Annual and half-year reports
• the appropriateness of the Company’s accounting
policies;
• the half-year results and the annual report, including
disclosures made therein on internal controls and risk
management, viability, going concern and whether
the report is fair, balanced and understandable and
provides the information necessary for shareholders
to assess the Company’s position and performance,
business model and strategy;
Internal controls and management of risk
• the internal controls in place at the Manager and the
Company’s other principal third-party service providers
and in particular the internal controls reports received
from the Manager and BNP Paribas together with
feedback from the Auditor, Fund Manager and the
Corporate Secretary. This included assessment of the
quality and effectiveness of the accounting records
and management information maintained on behalf
of the Company;
• the overall approach to paying dividends and the
appropriate level of dividend to be paid in respect
of the year ended 31 October 2024 particularly in light
of the prevailing economic conditions and the impact
on revenue, cash forecasting and debt covenants;
• the review of the allocation of special dividends
between capital and income;
• the Manager’s policies in relation to cyber risk and
business continuity;
• meeting with representatives of Janus Henderson’s
internal audit and risk departments periodically;
• the key risks facing the Company, including emerging
risks, the risk management systems in place and the
Company’s risk register;
• compliance with the Company’s anti-bribery and
anti-tax evasion policies and the confirmation received
from the Manager and the third-party service providers
as to whether they have appropriate procedures in
place in this respect;
• tax matters relating to the Company;
• whether there is a need for an internal audit function;
and
• the calculation and payment of the management fee.
Strategic report
Financial
statements
Additional
information
51
The Bankers Investment Trust PLC Annual Report 2024
Governance
Audit and Risk Assurance Committee report continued
Independent Auditors
• the re-appointment and evaluation of the effectiveness,
performance and independence and objectivity of the
external Auditor, Ernst & Young LLP (‘EY’) including the
provision of any non-audit services (as explained further
on pages 51 and 52);
• the plan, scope and cost of the external audit and
reviewing the Auditor’s findings and reporting; and
• the requirements for an audit tender and the process
to be undertaken.
The Committee confirms that the Company is in
compliance with the requirements of The Statutory
Audit Services for Large Companies Market Investigation
(Mandatory Use of Competitive Tender Processes and
Audit Committee Responsibilities) Order 2014. This order
relates to the frequency and governance of tenders for
the appointment of the external auditors and the setting
of the policy on the provision of non-audit services.
Annual Report for the year ended
31 October 2024
The Committee is satisfied that the Annual Report for
the year ended 31 October 2024, taken as a whole, is fair,
balanced and understandable and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model
and strategy. It reported accordingly to the Board.
Auditor’s Independence
The Committee monitors the Auditor’s independence
through three aspects of its work:
• the approval of a policy regulating the non-audit
services that may be provided by the Auditor to
the Company;
• assessing the appropriateness of the fees paid to
the Auditor for all work undertaken by them; and
• reviewing the information and assurances provided
by the Auditor on their compliance with the relevant
ethical standards. The Auditor provided no non-audit
services during the year.
For the year ended 31 October 2024, EY confirmed that
all of its partners and staff involved with the audit were
independent of any links to the Company, and that
these individuals had complied with their ethics and
independence policies and procedures, which are fully
consistent with the FRC’s Ethical Standards. Having
considered the above-mentioned aspects, the
performance and behaviour of the Auditor during the
audit process and the assurances received from EY,
the Committee is satisfied that auditor independence
and objectivity are safeguarded.
Policy on non-audit services
The Committee has approved, and keeps under regular
review, the policy on the provision of non-audit services
by the Company’s Auditor. The policy sets out that the
Company’s Auditor will not be considered for non-audit work
where this is prohibited by the current regulations and where
it appears to affect their independence and objectivity.
In addition, the provision of any non-audit services by the
Auditors is not permitted to exceed 70% of the average
annual statutory audit fee for the three consecutive
financial periods preceding the financial period to
which the cap applies. Such services require approval
in advance by the Audit and Risk Assurance Committee,
or Audit and Risk Assurance Committee Chair, following
due consideration of the proposed services.
There were no non-audit services provided in the year
under review (2023: none).
Appointment and tenure of the external
Auditor
The Company’s external auditors were appointed in 2016.
Regulations currently in force require the Company to
rotate audit firms after a period of ten years, which may
be extended where audit tenders are carried out or where
more than one audit firm is appointed to carry out the
audit, subject to a maximum appointment of 20 years.
This is the ninth year that EY has audited the Company’s
Annual Report and Mike Gaylor’s fourth year as audit
partner. The audit partner is rotated within the audit
firm at least every five years. The last formal audit tender
was completed in 2016 leading to the appointment of EY
for the year ended 31 October 2016.
Subject to the audit remaining effective and the
continuing agreement from shareholders on the
appointment of the Auditors, the Committee envisages
carrying out an audit tender in 2025 to meet the
regulatory requirements to ensure that the process has
been completed prior to the audit for the year ending
31 October 2026. The proposed tender period is
considered to be in the best interests of shareholders
and the Company as EY have a detailed knowledge of
our business, an understanding of the industry in which
we operate and continue to demonstrate that they
have the necessary expertise and capability to
undertake the audit.
Audit Fees
The fees payable to the Auditor for audit services in
respect of the year ended 31 October 2024 were £54,500
(2023: £52,000) excluding VAT.
Audit for the Year ended 31 October 2024
In the year under review, EY challenged both the
Manager’s and the Board’s judgements and exercised
professional scepticism. The audit team required detailed
evidence of all metrics, numbers and disclosures made
within the Annual Report to support a robust assessment
and evaluation of the financial information contained
therein. As an example, the Manager provides the
Committee and the Auditor with an analysis of special
dividends and the rationale for whether these should
be treated as income or capital. The Auditor’s review
included challenge to the Manager to provide
additional justification or background to the dividends
before confirming whether they concurred with the
proposed treatment.
52
The Bankers Investment Trust PLC Annual Report 2024
Audit and Risk Assurance Committee report continued
As an investment trust investing in listed equities,
management has limited areas of judgement. Areas
where the Committee would challenge the Manager
include the determination of the fair market value of debt
in order to confirm the appropriate basis for calculation,
and stress testing of the revenue forecast to support the
dividend payment policy and the assumptions in
the viability statement.
The Committee did not consider it necessary to request
the Auditor to look at any specific areas in addition to
those already identified in the audit plan in relation
to the audit for the year ended 31 October 2024.
The Committee is satisfied that the Annual Report for
the year ended 31 October 2024, taken as a whole, is fair,
balanced and understandable and provides the information
necessary for shareholders to assess the Company’s
position and performance, business model and strategy.
The following significant issues were considered by the Committee for the Annual Report for the year ended
31 October 2024:
Significant issue How the issue was addressed
Valuation and ownership
of the Company’s
investments
The Directors have appointed Janus Henderson to perform the valuation of the assets of
the Company in accordance with its responsibilities under the AIFMD rules. As required
under the AIFMD rules, Janus Henderson has adopted a written valuation policy, which
may be modified from time to time. Actively traded investments are valued using stock
exchange prices provided by third-party pricing vendors. The portfolio valuation is
regularly reviewed by the Committee. Ownership of listed investments is verified by
reconciliation to the Custodian’s records. Investments that are unlisted or not actively
traded are valued using a variety of techniques to determine their fair value; all such
valuations are reviewed and approved by the Directors.
Recognition of income
Income received has been accounted for in line with the Company’s accounting policies
(as set out on page 74) and was reviewed by the Committee at each meeting to confirm
it is in compliance with UK-adopted International Accounting Standards. The Board
reviews Janus Henderson’s revenue forecasts in support of the Company’s future
dividends at least four times per annum. For special dividends where Janus Henderson is
required to allocate between revenue and capital, the Committee reviews the rationale
provided and approves the treatment.
Maintaining internal
control
The Committee carries out the annual assessment of the effectiveness of the Company’s
internal control and risk management systems by reviewing the framework and summary
of the reporting received throughout the course of the financial year. The Committee had
further input on the prevailing standards in the sector when making its recommendation
to the Board on the Company’s internal control environment as a whole.
Effectiveness of the external audit
The Committee’s process for evaluating the effectiveness
of the external audit comprises two components: the
findings of the FRC’s Audit Quality Inspection Report are
considered, and a post-audit assessment is carried out
led by the Audit and Risk Assurance Committee Chair.
The Auditor is invited to present and discuss the findings of
the latest FRC Audit Quality Inspection Report and report on
the progress made by the firm in terms of addressing the
areas identified for improvement in the prior year’s report.
The Auditor attended two Committee meetings in the year,
when the Committee was considering the half year and
the annual results. The audit partner met with the Audit
and Risk Assurance Committee Chair on two occasions
during the year outside of these meetings as well.
During the 2024 audit, the Committee Chair liaised with EY
to receive progress updates and to review EY’s audit
results prior to the Committee meeting to consider the
financial statements. EY attended this meeting to present
their report and to observe the Committee’s review of the
financial statements and internal controls reporting by the
Manager.
In assessing the effectiveness of the audit process, the
Committee Chair invites views from the Directors, the Fund
Manager and other members of the Manager’s staff in
assessing the robustness and effectiveness of the audit,
level of challenge offered by the audit team, the quality
of the audit team and timeliness of delivering the tasks
required for the audit and reporting to the Committee.
The Committee also met privately with the Audit Partner
to discuss how the audit operated from his perspective.
Based on the Committee’s review of EY’s reporting,
interactions with the audit team throughout the process,
discussions with representatives of the Manager and
discussions on the findings of the FRC’s Audit Quality
Inspection Report, the Committee, having met without
EY present, is satisfied with the effectiveness of the
audit provided by EY and that EY is independent of
the Company.
The Committee considers that the audit quality for the
year ended 31 October 2024 has been high and that the
Manager and EY have worked together to enhance and
improve reporting to shareholders. The Committee
therefore recommended EY’s continuing appointment to
the Board. EY has indicated its willingness to continue in
office. Accordingly, resolutions reappointing EY as Auditor
to the Company and authorising the Audit and Risk
Assurance Committee to determine their remuneration will
be proposed at the forthcoming Annual General Meeting.
Strategic report
Financial
statements
Additional
information
53
The Bankers Investment Trust PLC Annual Report 2024
Governance
The Management Engagement Committee (‘Committee’)
is responsible for formally evaluating the overall
performance of the Manager and other third-party
service providers engaged by the Company, to consider
whether their continuing appointment is in the interests of
shareholders as a whole.
Membership
The Committee is chaired by the Chair of the Board and
consists of all the Directors.
Meetings
The Committee meets at least annually, with additional
meetings scheduled when required.
Roles and responsibilities
The Committee’s responsibilities include evaluating, on
at least an annual basis, the performance of the Manager
and other third-party service providers engaged by the
Company (excluding the Company’s Auditor) and for
ensuring that the terms of the management agreement
between the Manager and the Company remain
competitive and in the interests of shareholders as
a whole. The Committee reports to the Board, making
recommendations as appropriate.
Activities during the year
In discharging its duties over the course of the year,
the Committee considered the following matters:
• the investment performance of the Company, taking
account of the benchmark and performance of
competitors in its AIC peer group, the share price,
level of premium / discount and gearing;
• the quality and experience of the team involved in
managing all aspects of the Company’s business;
• the fee structures of competitors in its AIC peer group
and other, similar sized investment companies;
• the key clauses of the investment management
agreement, how the Manager had fulfilled these
and whether they continued to be appropriate;
• the performance and fees of the Company’s other
third-party service providers, including the depositary,
registrar, marketing and research providers, legal
counsel and any other ad-hoc services provided to
the Company;
• the Company’s service providers in their role as
stakeholders and whether there is an appropriate
level of engagement with them; and
• any points of conflict which may arise between the
providers of services to the Company.
Performance of the Manager and other
third-party service providers
Each year, the Committee carries out an evaluation of
the Manager and the Company’s key third-party service
providers and their respective terms of engagement.
The Committee’s evaluation of the Manager includes:
• evaluating the Company’s investment and share
price performance;
• consideration of the arrangements in place at Janus
Henderson in terms of a short-term incapacity of the
Fund Manager and succession planning for the Fund
Manager over the longer term;
• consideration of the quality of the team involved
in all aspects of servicing the Company;
• a review of the stability of the management group
and its business priorities; and
• assessing the contractual arrangements and
remuneration structure in place and the competitiveness
of the management fee paid to the Manager, and
whether they remain appropriate and in the interests
of shareholders as a whole.
The continued appointment of
the Manager and other third-party
service providers
The principal contents of the agreement with the Manager
and the fees payable are shown on page 29. The Board
receives formal recommendations from the Management
Engagement Committee in respect of the continued
appointment of the Manager and the Company’s other
third-party service providers and the appropriateness of
the terms of the contractual arrangements in place at
least annually.
Following completion of the annual evaluation of the
Manager by the Committee and its formal
recommendations to the Board, the Board believes that
the continued appointment of the Manager on the terms
agreed is in the interests of the Company as a whole.
Management Engagement Committee report
54
The Bankers Investment Trust PLC Annual Report 2024
The Marketing Committee (‘Committee’) is responsible for
how demand for the Company’s shares can be generated
and will measure the effectiveness of the marketing
initiatives used to generate that demand over the
longer term.
Membership
The Committee is chaired by Hannah Philp and consists of
all the Directors.
Meetings
The Committee meets at least twice per annum,
with additional meetings scheduled when required.
Roles and responsibilities
The Committee’s responsibilities include:
• Developing, in partnership with the Manager,
a marketing and promotional strategy for the
Company, including long-term aims, measures of
success and the mechanisms, including specific
communication and media channels, to be used
by the Company;
• Consideration of the retention of third-party agencies
and consultants where deemed necessary by the
Company to support and enhance the marketing
efforts of the Company and Manager;
• Reviewing the marketing material produced by the
Manager and other third-parties and make
recommendations to the Board, where appropriate,
regarding these materials; and
• Reviewing the activity undertaken by the Company,
Manager and third parties against agreed plans, and
consider performance indicators and enhancements
or amendments that may be required to the
Company’s marketing plans in the light of
these outcomes.
The Committee reports to the Board, making
recommendations as appropriate.
Activities during the year
In discharging its duties over the course of the year, the
Committee considered the following matters and, where
appropriate, recommended their approval to the Board:
• The effectiveness of the Company’s marketing plan,
which was evaluated using short-term, medium-term
and long-term measures;
• The engagement from investors and potential investors
to the new website;
• The Company’s advertising campaign launched in
February 2024;
• The marketing budget and review the spend of that
budget over the year;
• The Section 793 exercise to increase the number of
subscribers to the website by means of a letter which
was sent to shareholders with the 2023 Annual Report
informing them how they could keep updated on the
Company via emails and alerts; and
• The redesign of the annual report to reflect the
Company’s new imagery and branding used on the
Company’s new website and create a clear narrative
for the Company, supported by design focused on
what the Company does, how it does it and reasons
to invest.
Marketing Committee report
Strategic report
Financial
statements
Additional
information
55
The Bankers Investment Trust PLC Annual Report 2024
Governance
The Nominations Committee (‘Committee’) advises
the Board on the composition of the Board and its
Committees, in making appointments to the Board
and ensuring suitable succession plans are in place
for the Directors. It also has responsibility for setting
the remuneration policy for the non-executive Directors.
Membership
The Committee is chaired by the Chair of the Board and
consists of all the Directors. The Chair of the Board would
not chair or attend meetings when the Committee is
considering the appointment for his successor, reviewing
his performance or his fees..
Meetings
The Committee meets at least annually, with additional
meetings scheduled when required.
Roles and responsibilities
The Committee’s responsibilities include: reviewing the
structure, size and composition of the Board and its
Committees; ensuring annual performance evaluations
and considering the proposed appointment and re-
appointment of Directors ahead of each AGM; succession
planning; nominating new Directors for consideration by
the Board; and considering the remuneration of the
Directors. The Committee reports to the Board, making
recommendations as appropriate.
Activities during the year
In discharging its duties over the course of the year,
the Committee considered the following matters:
• the composition of the Board and each of its Committees,
taking account of the skills, experience and knowledge
of each Director and whether the diversity of these
continued to contribute to the success of the Company;
• succession planning for appointments to the Board
taking account of the provisions regarding the retirement
of directors, as well as the tenure of the current Directors;
• the outcomes of the Board performance evaluation
with a view as to whether adjustments should be made
to the number of Directors or knowledge and skills
represented on the Board;
• the tenure of each of the Directors, giving consideration
as to whether the Board retained a sufficient balance
of length of service without becoming complacent;
• the independence of the Directors taking account
of the guidelines established by the AIC Code as well
as the Directors’ other appointments;
• the time commitment of the Directors and whether
this had been sufficient over the course of the year;
• the performance and contribution of all Directors
standing for re-appointment at the 2025 AGM; and
• the level of Directors’ fees.
Annual performance evaluation
The Committee ensures that there is a formal and
rigorous annual evaluation of the performance of the
Board, its Committees, the Chair and individual Directors.
The Company is obliged to engage an external facilitator
for the evaluation every three years and an external
evaluator will be used for the 2025 evaluation process.
This year an internal review of the Board, its Committees,
the Chair and individual Directors was undertaken.
The first stage of the exercise involved the Company
Secretary engaging with the Chair to set the context
for the review, and to tailor the scope to the Company’s
circumstances. All Board members then completed online
questionnaires addressing the performance of the Board,
the Chair, and the Manager, as well as the contribution of
individual Directors.
As well as addressing core aspects of Board and
Committee performance, the review had a particular
focus on the following areas:
• Building strong Board communication and dynamics
following significant composition changes;
• The key objectives for the Committees of the Board
including the new Marketing Committee , to ensure that
these Committees deliver effective oversight of matters
within their remit;
• The level of support and challenge that the Board
provides to the Fund Manager, and the effectiveness
of communication with the Manager more broadly;
• The information and training opportunities that should
be provided to new Board members on the Company’s
strategic aims, shareholders, marketing and investment
processes; and
• The clarity of succession planning for Board members
and the Fund Manager.
The results of the questionnaires were considered by
the Board.
The Senior Independent Director carried out the
performance evaluation of the Chair. An update was
provided to the Committee and feedback given directly
to the Chair.
As a result of the review, the Board considered
opportunities to increase its effectiveness in areas
including the informal time spent together, and further
enhancements to the Board’s understanding of key
themes and strategy.
Following completion of the evaluation review and
discussion by all Directors, it was concluded that the
Board retained a good balance of relevant skills and
experience, the Directors (individually and collectively as
the Board) have been operating effectively and Directors
have undertaken training and professional development
courses during the year.
The Committees continued to support the Board in
fulfilling its duties and there were no specific additional
training requirements for any of the Directors.
Evaluation of Directors to be considered
for appointment or re-appointment
The Committee considers the appointment and
re-appointment of Directors ahead of each AGM.
Each of the Directors, being eligible, have stated that
they will offer themselves for re-appointment at the AGM.
For the upcoming AGM, the Committee considered the
Nominations Committee report
56
The Bankers Investment Trust PLC Annual Report 2024
Nominations Committee report continued
performance and contribution to the Company of each
Director and their other business appointments and
commitments. The Committee concluded that each Director
had been effective, allocated sufficient time to the Company
to discharge their responsibilities fully and effectively,
remained independent and continued to demonstrate
commitment to their role. Accordingly, the Committee
recommended their continued service to the Board.
Appointment of new Directors
Before commencing a search for candidates, the
Committee evaluates the balance of skills, experience,
knowledge and diversity on the Board, and, in light of
this evaluation, prepares a description of the role and
capabilities required for a particular appointment.
To facilitate the search for suitable candidates from
a wide range of backgrounds, the Committee may
use the services of external advisers or open advertising,
if deemed appropriate to do so.
The Committee assesses candidates on merit and
against objective criteria and with due regard for the
benefits of diversity on the Board (including gender,
social and ethnic backgrounds, as well as cognitive
and personal strengths), taking care that any candidates
recommended for appointment are able to allocate
sufficient time to the Company to fully and effectively
carry out their responsibilities.
The Board have not considered it necessary to recruit
another director following the retirement of Julian
Chillingworth at the conclusion of the 2024 AGM this year.
Diversity policy
The Board considers that a Board that is diverse in its
broadest sense is important to the long-term sustainable
success of the Company. All Board appointments are
subject to a formal, rigorous and transparent procedure
led by the Nominations Committee. The Company seeks
to ensure that any Board vacancies are filled by the most
qualified candidates based on objective criteria and merit
and in the context of the skills, knowledge and experience
that are needed for the Board to be effective.
The Board acknowledges and supports the
recommendations on gender diversity on Boards
and ethnic representation on Boards. Whilst the Board
does not feel that it would be appropriate to use specific
diversity targets given its small size, the Directors acknowledge
that diversity is important to ensure that the Company can
draw on a broad range of backgrounds, skills, knowledge,
experience and perspectives to achieve effective stewardship
of the Company. An integral part of the appointment process
includes the consideration of diversity generally, taking into
account gender, social and ethnic backgrounds, cognitive
and personal strengths and experience. The Nominations
Committee ensures that long lists of potential non-executive
Directors should include diverse candidates of appropriate
experience and merit.
The UK Listing Rules of the FCA require companies to
report on whether they have met the following targets
on Board diversity: that at least 40% of the individuals on
the Board are women, at least one of the senior positions
on the Board is held by a woman and that there is at
least one Director of an ethnic minority background.
As at 31 October 2024, the Company had met the gender
diversity requirements as two of the five Directors (40%)
were women, and Hannah Philp held a senior position
as Chair of the Marketing Committee.
The Board has one Director from a minority ethnic
background. The small size of the Board with only non-
executive Directors and the Company’s specialist nature
as an investment trust provide challenges in ensuring
targeted diversity in Board appointments. The Board does
not therefore consider it appropriate to set targets but
ensures that long lists include diverse candidates of
appropriate experience and merit. In the succession
planning objectives set out above, these considerations
will form a significant element of the search.
There is no discrimination on the grounds of gender, race,
ethnicity, religion, sexual orientation, age or physical ability
in any of the Nominations Committee’s activities.
In accordance with UK Listing Rule 6.6.6R (9) and (10), and
using the AIC’s definitions, the Board provides the following
information about its diversity as at 31 October 2024:
Gender identity
Number of
Board
members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Men
360
Not applicable
1
Women
240
Total
5 100
n/a
Ethnic diversity
Number of
Board
members
Percentage
of the Board
Number of senior
positions on the
Board
White British or
Other (including
minority – white
groups)
4 80
Not applicable
1
Minority ethnic
120
Total
5 100
n/a
1 This column is not applicable as the Company is externally managed
and does not have executive management functions, specifically the
roles of CEO and CFO and has no employees. The Board considers that
chairing the Board, its permanent Committees and the role of Senior
Independent Director are all senior positions in an investment
company context
The information included in the above tables has been
obtained through questionnaires completed by the
individual directors. The categories for ethnic groups
which are not represented on the Board are not included
in the ethnic background table. No changes have
occurred between 31 October 2024 up to the date
of approval of this Report which could affect the
Company’s ability to meet the targets in LR 6.6.6R (9).
Remuneration
Details of the Committee’s activities in relation to Directors’
remuneration are set out in the Directors’ remuneration
report on pages 58 to 60, together with information on the
fees paid to Directors during the year under review.
Strategic report
Financial
statements
Additional
information
57
The Bankers Investment Trust PLC Annual Report 2024
Governance
Directors’ Remuneration report
Remuneration policy
The remuneration policy (‘the Policy’) sets out the principles
applied in the remuneration of the Directors. The Policy
has been in place since 2014 and was last approved by
shareholders at the AGM in February 2023. The current
Policy will continue in force until the AGM in 2026.
The Nominations Committee considers the Directors’
remuneration and makes recommendations to
the Board on its conclusions. The Board has not
established a Remuneration Committee to consider
matters relating to the Directors’ remuneration.
The Board has not been provided with advice or
services by any person in respect of its consideration
of the Directors’ remuneration (although the Directors
review annually the fees paid to the boards of directors
of other comparable investment companies).
The Policy is that the fees payable to the Directors
should
reflect the time spent by the Board on the
Company’s
affairs and the responsibilities borne
by
the Directors and should be sufficient to promote
the
long-term success of the Company.
The Policy is for the Chair of the Board, the Senior
Independent
Director and the Chair of the Audit
and
Risk Assurance Committee to be paid a higher
fee
than the other Directors in recognition of their
additional
responsibilities.
The Policy is to review these rates annually although
such
review would not necessarily result in any
change
to the rates. None of the Directors has a
contract
of service or a contract for services, there
are
no set notice periods and a Director may resign
by
giving notice in writing to the Board at any time
with
no compensation.
The Policy is for the Directors to be remunerated
in
the form of fees, payable quarterly in arrears,
to
the Director personally or to a third-party
specified
by him or her. There are no long-term
incentive
schemes provided by the Company and
the
fees are not specifically related to the Directors’
performance,
either individually or collectively.
Annual report on remuneration
This report is submitted in accordance with Schedule 8
of The Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 as amended
(the ‘Regulations’). This report also meets the relevant
requirements of the Companies Act 2006 (the ‘Act’)
and the UK Listing Rules of the Financial Conduct Authority
and describes how the Board has applied the principles
relating to Directors’ remuneration.
The Company’s Auditor is required to report on certain
information contained within this report and where
information set out below has been audited, it is indicated
as such.
All Directors are non-executive and the Company has no
chief executive officer or employees. Therefore, some of
the reporting requirements contained in the Regulations
are not applicable and have not been reported on,
including the requirement for a future policy table and
an illustrative representation of the level of remuneration
that could be received by each individual Director.
It is believed that all relevant information is disclosed
within this report in an appropriate format.
Views of shareholders
Any views expressed by shareholders on the fees being
paid to Directors would be taken into consideration by
the Board when reviewing levels of remuneration.
Statement from the Chair
As Chair, Simon Miller reports that Directors’ remuneration
in the year under review has been determined within
the parameters of the remuneration policy approved by
shareholders. The Nominations Committee carried out its
annual review of the fees being paid to Directors and as
part of this it looked at the fees paid to other investment
companies in the peer group, the fees paid in other
sectors and other Janus Henderson managed investment
trusts, as well as the increasing responsibilities and time
commitment required of the Directors. Following
consideration, it was agreed that Directors’ fees be
increased with effect from 1 November 2024. The new
fees are set out in the table below. The increases were
to ensure that the Directors are properly remunerated for
their services to the Company and so that the Company
can remain competitive when seeking new Directors.
The Board is satisfied that the changes to the remuneration
of the Directors are compliant with the Directors’
Remuneration Policy approved by shareholders
at the 2023 Annual General Meeting.
There have been no other major decisions on Directors’
remuneration or any other changes to the remuneration
paid to each individual Director other than the fee for
the Marketing Committee Chair in recognition of their
additional responsibilities in the year under review.
58
The Bankers Investment Trust PLC Annual Report 2024
Directors’ Remuneration report continued
Table of Directors’ annual fees
The current fees for specific responsibilities are set out in
the table below. Other than the Audit and Risk Assurance
Committee Chair and Marketing Committee Chair, no fees
are payable for membership of the Board Committees.
Fees were increased on 1 November 2024.
Rate from
1
November
2024
Rate from
1 November
2023
%
increase
Chair of the Board
£51,000 £50,000 2.0%
Audit and Risk Assurance
Committee Chair
£41,000 £38,000 7.9%
Marketing
Committee Chair
1
£38,000
n/a 0.0%
Senior Independent
Director
£38,000 £35,000 8.6%
Directors
£34,000 £33,000 3.0%
1 The Marketing Committee was created with effect from 9 January 2024
Annual percentage change
The table below sets out the annual percentage change
in Directors fees for the three years to 31 October 2024,
as well as the increase approved for the current
financial year.
Director
From
1
Nov 2024
%
From
1 Nov 2023
%
From
1 Nov 2022
%
From
1 Nov 2021
%
Simon Miller
1
2.0 6.1 6.1
n/a
Julian
Chillingworth
2
n/a
6.1 4.8 –
Ankush Nandra
3
7.9 11.8
n/a n/a
Hannah Philp
4
15.2
6.5 7.3
n/a
Charlotte Valeur
5
3.0 6.5 7.3
n/a
Richard West
6
8.6 6.5 7.3 –
1 Appointed a Director on 1 January 2022 and became Chair on
24 February 2022
2 Retired as a director on 22 February 2024
3 Appointed a Director on 1 September 2023
4 Appointed a Director on 1 November 2022 and Chair of the Marketing
Committee on 9 January 2024 when the Committee was created. The
increase in Ms Philp’s remuneration reflects this appointment part way
through the year to 31 October 2024 and the additional remuneration
associated with this role
5 Appointed a Director on 1 November 2022
6 Became Senior Independent Director on 23 April 2024
Directors’ remuneration (audited)
The remuneration paid/payable to the Directors who served during the years ended 31 October 2024 and 31 October
2023 was as follows:
Year ended
31
October
2024
Total
fees
£
Year ended
31 October
2023
Total fees
£% change
Year
ended
31
October 2024
Total
expenses
including
taxable
benefits
£
Year ended
31 October 2023
Total expenses
including taxable
benefits
£
Year
ended
31
October
2024
Total
£
Year ended
31 October
2023
Total
£
Simon Miller
1
50,000 47,000 6.4 5,657 1,996 55,657 48,996
Julian Chillingworth
2
8,750 33,000 -73.5 – – 8,750 33,000
Ankush Nandra
3
38,000 5,667 570.5 – – 38,000 5,667
Hannah Philp
4
37,059 31,000 19.5 22 – 37,081 31,000
Isobel Sharp
5
– 22,805 n/a – ––22,805
Charlotte Valeur
33,000 31,000 6.5 6,861 2,092 39,861 33,092
Richard West
34,044 31,000 9.8 – – 34,044 31,000
Total
200,853 201,472 12,540 4,088 213,393 205,560
The table above omits other columns because no payments of other types such as performance related pay, vesting performance related pay and pension
˥˘˟˔˧˘˗˕˘ˡ˘Ѓ˧˦˪˘˥˘ˠ˔˗˘ʡˇ˔˫˔˕˟˘˕˘ˡ˘Ѓ˧˦ϝʴ˥˧˜˖˟˘ʤʤʣˢ˙˧˛˘ʶˢˠˣ˔ˡˬϠ˦ʴ˥˧˜˖˟˘˦ˢ˙ʴ˦˦ˢ˖˜˔˧˜ˢˡˣ˥ˢ˩˜˗˘˦˧˛˔˧ʷ˜˥˘˖˧ˢ˥˦˔˥˘˘ˡ˧˜˧˟˘˗˧ˢ˕˘˥˘˜ˠ˕˨˥˦˘˗˙ˢ˥
reasonable expenses incurred by them in connection with the performance of their duties and attendance at Board and General Meetings.
1 Chair and highest paid director following appointment as Chair on 24 February 2022 having been appointed a Director on 1 January 2022
2 Retired from the Board on 22 February 2024
3 Appointed to the Board on 1 September 2023
4 Appointed as Marketing Committee Chair on 9 January 2024
5 Retired from the Board on 30 June 2023
No other remuneration or compensation was paid or payable by the Company during the year to any of the current or
˙ˢ˥ˠ˘˥ʷ˜˥˘˖˧ˢ˥˦ˢ˥˧˛˜˥˗ˣ˔˥˧˜˘˦˦ˣ˘˖˜Ѓ˘˗˕ˬ˔ˡˬˢ˙˧˛˘ˠʡ
Relative importance of spend on pay
In order to show the relative importance of spend on pay, the table below sets out the total level of remuneration
compared with the distributions to shareholders by way of dividends. In the year under review, 88,341,407 ordinary shares
were bought back by the Company into Treasury. There were no other significant distributions, payments or other uses of
the Company’s net return or cash flow deemed to assist in the understanding of the relative importance of spend on pay.
31 October
2024
£’000
31 October
2023
£’000
1 year
change
£’000
1 year
change
%
5 year
change
£’000
5 year
change
%
Total Director’s remuneration
1
213.4 205.6 7.8 3.8 72 51.1
Ordinary dividends paid in the year
31,996 31,216 780 2.5 7,230 29.2
1 Amounts paid will fluctuate due to the number of directors in any one year
Strategic report
Financial
statements
Additional
information
59
The Bankers Investment Trust PLC Annual Report 2024
Governance
Directors’ Remuneration report continued
Performance
The Company’s performance has been measured against the FTSE All-Share Index for the period 1 November 2014
to 31 October 2017 and the FTSE World Index from 1 November 2017 to 31 October 2024 on a total return basis in sterling
terms. The graph below compares the mid-market price of the Company’s ordinary shares over the 10-year period
ended 31 October 2024 with the composite index over the same period.
Total performance return for 10 years to 31 October 2024
£
20242023202220212020201920182017201620152014
The Company’s share price total return, assuming the investment of £100 on 31 October 2014 and the reinvestment of all
dividends (excluding dealing expenses)
Composite benchmark comprising the FTSE All-Share Index for the period 1 November 2014 to 31 October 2017 and the FTSE
World Index from 1 November 2017 to 31 October 2024, assuming the notional investment of £100 on 31 October 2014 and the
reinvestment of all income (excluding dealing expenses)
100
150
200
250
300
Source: Morningstar Direct
Directors’ interests in shares (audited)
Ordinary shares of 2.5p
31
October
2024
1 November
2023
Beneficial interest:
Simon Miller
70,000 60,000
Julian Chillingworth
1
n/a
30,000
Ankush Nandra
40,604 20,000
Hannah Philp
20,254 10,254
Charlotte Valeur
8,954 –
Richard West
97,434 96,289
1 Retired from the Board on 22 February 2024
The interests of the Directors in the ordinary shares of the
Company at the beginning and end of the financial year
are shown in the preceding table. Since the Company’s
year-end Richard West purchased 556 shares and
Ankush Nandra purchased 151 shares in the Company
bringing their total beneficial holdings to 97,990 and
40,755 shares respectively. There have been no further
changes reported since the year end to the date of this
Annual Report.
No Director is required to hold shares of the Company
by way of qualification.
Statement of voting at AGM
A binding ordinary resolution adopting the Remuneration Policy was approved at the AGM held on 23 February 2023.
An ordinary resolution approving the Directors’ remuneration report was also passed at the 2024 AGM. The following
votes were received on the resolutions:
Resolution
For (including
discretionary)
% of
votes Against
% of
votes Withheld
Remuneration Policy
332,771,533 99.5 1,727,612 0.5 3,460,594
Remuneration Report
319,384,192 99.6 1,351,420 0.4 1,766,334
Notes
The percentage of votes in favour (including discretionary) and those against excludes the number of votes withheld
Approval
The Annual Report on Directors’ Remuneration was approved by the Board on 15 January 2025.
On behalf of the Board
Richard West
Senior Independent Director
15 January 2025
60
The Bankers Investment Trust PLC Annual Report 2024
Statement of Directors’ Responsibilities
The Directors are responsible for preparing
the Annual Report, including the Directors’
remuneration report and the Financial
Statements, in accordance with applicable
law and regulations. Company law requires
the Directors to prepare financial statements for
each financial year. Under that law the Directors
have prepared the Company’s financial
statements in accordance with UK-adopted
International Accounting Standards.
Under company law, the Directors must not approve the
financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for that
year. In preparing these financial statements, the Directors
are required to:
• select suitable accounting policies in accordance
with IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors and then apply them consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether applicable UK-adopted International
Accounting Standards have been followed, subject
to any material departures disclosed and explained
in the financial statements;
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Company is to continue in business; and
• prepare a Directors’ report, a strategic report and
a Directors’ remuneration report which comply
with the requirements of the Companies Act 2006.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the
Company and enable it to ensure that the financial
statements and the Directors’ remuneration report
comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities. Having
taken advice from the Audit and Risk Assurance
Committee, the Directors consider that the Annual Report
and financial statements, taken as a whole, are fair,
balanced and understandable and provide the
information necessary for shareholders to assess the
Company’s position and performance, business model
and strategy.
Statement of Directors’ responsibilities
under Disclosure Guidance and
Transparency Rule 4.1.12
Each of the Directors, who are listed on pages 39 and 40,
confirms that, to the best of his or her knowledge:
• the financial statements, which have been prepared in
accordance with UK-adopted International Accounting
Standards on a going concern basis, give a true and
fair view of the assets, liabilities, financial position and
profit of the Company; and
• the Strategic Report in this Annual Report and financial
statements include a fair review of the development
and performance of the business and the position of
the Company, together with a description of the
principal risks and uncertainties that it faces.
On behalf of the Board
Richard West
Senior Independent Director
15 January 2025
Strategic report
Financial
statements
Additional
information
61
The Bankers Investment Trust PLC Annual Report 2024
Governance
Independent Auditor’s report
Opinion
We have audited the financial statements of The Bankers
Investment Trust PLC for the year ended 31 October 2024
which comprise Statement of Comprehensive Income,
Statement of Changes in Equity, Statement of Financial
Position and Cash Flow Statement and the related notes
1 to 24 including material accounting policy information.
The financial reporting framework that has been applied
in their preparation is applicable law and UK adopted
International Accounting Standards.
In our opinion, the financial statements:
• give a true and fair view of the Company’s affairs as at
31 October 2024 and of its profit for the year then ended;
• have been properly prepared in accordance with
UK-adopted International Accounting Standards; and
• have been prepared in accordance with the
requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of the Company in accordance with
the ethical requirements that are relevant to our audit of
the financial statements in the UK, including the FRC’s
Ethical Standard as applied to public interest entities, and
we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical
Standard were not provided to the Company and we
remain independent of the Company in conducting
the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded
that the Directors’ use of the going concern basis of
accounting in the preparation of the financial statements
is appropriate. Our evaluation of the Directors’ assessment
of the Company’s ability to continue to adopt the going
concern basis of accounting included.
The following procedures:
• We confirmed our understanding of the Company’s
going concern assessment process and engaged with
the Directors and the Company Secretary to determine
if all key factors that we have become aware of during
our audit were considered in their assessment.
• We inspected the Directors’ assessment of going concern,
including the revenue forecast. In preparing the revenue
forecast, the Company has concluded that it is able to
continue to meet its ongoing costs as they fall due.
• We have reviewed the factors and assumptions,
including the impact of the current economic
environment, as applied to the revenue forecast
and the liquidity assessment of the investments.
We considered the appropriateness of the methods
used to calculate the revenue forecast and the liquidity
assessment and determined, through testing of the
methodology and calculations, that the methods,
inputs and assumptions utilised were appropriate to be
able to make an assessment of the Company.
• We assessed the risk of breaching the debt
covenants applicable to the Company’s debt
arrangements as a result of a reduction in the value
of the Company’s investment portfolio. We calculated
the Company’s compliance with debt covenants and
performed reverse stress testing in order to identify
what factors would lead to the Company breaching
those covenants.
• We considered the mitigating factors included in the
revenue forecasts and covenant calculations that are
within the control of the Company. We reviewed the
Company’s assessment of the liquidity of investments
held and evaluated the Company’s ability to sell those
investments in order to cover working capital
requirements should revenue decline significantly.
• We reviewed the Company’s going concern disclosures
included in the annual report in order to assess that the
disclosures were appropriate and in conformity with
the reporting standards.
Based on the work we have performed, we have not
identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast
significant doubt on the Company’s ability to continue as
a going concern to 31 January 2026, which is a period of at
least twelve months from the date the financial
statements are authorised for issue.
In relation to the Company’s ’s reporting on how they have
applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to
the Directors’ statement in the financial statements about
whether the Directors considered it appropriate to adopt
the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors
with respect to going concern are described in the
relevant sections of this report. However, because not all
future events or conditions can be predicted, this
statement is not a guarantee as to the Company’s ability
to continue as a going concern.
62
The Bankers Investment Trust PLC Annual Report 2024
Independent Auditor’s report continued
Overview of our audit approach
Key audit matters
• Risk of incomplete or inaccurate revenue recognition, including
classification of special dividends as revenue or capital items in the
Statement of Comprehensive Income.
• Risk of incorrect valuation or ownership of the investment portfolio.
Materiality
• Overall materiality of £14.34m which represents 1% of net assets.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality
and our allocation of performance materiality determine
our audit scope for the Company. This enables us to form
an opinion on the financial statements. We take into
account size, risk profile, the organisation of the Company
and effectiveness of controls, the potential impact of
climate change and changes in the business environment
when assessing the level of work to be performed.
Climate change
Stakeholders are increasingly interested in how climate
change will impact the Company. The Company has
determined that the most significant future impacts from
climate change on its operations will be from how climate
change could affect the Company’s investments and
overall investment process. These are explained on
page 32 in the principal risks and uncertainties. They have
also explained their climate commitments on pages 22
and 23. All of these disclosures form part of the “Other
information,” rather than the audited financial statements.
Our procedures on these unaudited disclosures therefore
consisted solely of considering whether they are
materially inconsistent with the financial statements or
our knowledge obtained in the course of the audit or
otherwise appear to be materially misstated, in line with
our responsibilities on “Other information”.
Our audit effort in considering the impact of climate
change on the financial statements was focused on
evaluating management’s assessment of the impact
of climate risk, physical and transition, their climate
commitments, the effects of material climate risks
disclosed on page 32 and the significant judgements
and estimates disclosed in note 1 and whether these have
been appropriately reflected following the requirements
of UK-adopted International Accounting Standards.
We also challenged the Directors’ considerations of
climate change risks in their assessment of going concern
and viability and associated disclosures. Where
considerations of climate change were relevant to our
assessment of going concern, these are described above.
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most significance in our
audit of the financial statements of the current period and
include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we
identified. These matters included those which had the
greatest effect on: the overall audit strategy, the allocation
of resources in the audit; and directing the efforts of the
engagement team. These matters were addressed in the
context of our audit of the financial statements as a
whole, and in our opinion thereon, and we do not provide
a separate opinion on these matters.
Strategic report
Financial
statements
Additional
information
63
The Bankers Investment Trust PLC Annual Report 2024
Governance
Independent Auditor’s report continued
Risk Our response to the risk
Key observations
communicated to the
Audit Committee
Incomplete or inaccurate revenue
recognition, including the
classification of special dividends
as revenue or capital items in the
Income Statement (as described
on page 53 in the Report of the
Audit and Risk Committee and as
per the accounting policy set out
on page 74).
The total revenue for the year to
31 October 2024 was £34.47m
(2023: £37.63m), consisting of
dividend income from listed
equity investments.
The investment income receivable
by the Company during the year
directly affects the Company’s
revenue return. There is therefore a
risk of incomplete or inaccurate
recognition of revenue through the
failure to recognise proper income
entitlements or to apply an
appropriate accounting treatment.
In addition to the above, the
Directors may be required to
exercise judgement in determining
whether income receivable in the
form of special dividends should be
classified as ‘revenue’ or ‘capital’ in
the Statement of Comprehensive
Income.
We have performed the following procedures:
We obtained an understanding of the processes and
controls surrounding revenue recognition, including the
classification of special dividends, by performing
walkthrough procedures.
For 100% of dividends received and accrued, we
recalculated the income by multiplying the investment
holdings at the ex-dividend date, traced from the
accounting records, by the dividend per share, which
was agreed to an independent data vendor. We also
agreed a sample of dividends received and accrued
to bank statements.
Where dividends were received or accrued in foreign
currency, we translated the amount into the reporting
currency of the Company using exchange rates
sourced from an independence data vendor.
For all dividends accrued, we reviewed the investee
Company announcements to assess whether the
dividend entitlements arose prior to 31 October 2024.
To test completeness of recorded income, we verified
that expected dividends for each investee Company
held during the year had been recorded as income
with reference to investee Company announcements
obtained from an independent data vendor.
For all investments held during the year, we reviewed
the type of dividends paid with reference to an external
data vendor to identify those which were special.
Based on the work performed, we identified 10 special
dividends received during the year, eight classified as
revenue and two classified as capital. For a sample of
six special dividends, we assessed the appropriateness
of Management’s classification as revenue or capital by
reviewing the underlying rationale for the distribution.
The results of our
procedures
identified no
material
misstatement in
relation to the risk of
incomplete or
inaccurate revenue
recognition, through
incorrect
classification of
special dividends as
revenue or capital.
Incorrect valuation or ownership
of the investment portfolio (as
described on page 53 in the Report
of the Audit and Risk Committee
and as per the accounting policy
set out on page 73).
The valuation of the investment
portfolio at 31 October 2024 was
£1,455.33m (2023: £1,428.79m)
primarily consisting of listed
investments.
The fair value of investments is
determined by reference to stock
exchange quoted market bid prices
at the close of business on the
reporting date.
The valuation of the assets held in
the investment portfolio is the
primary driver of the Company’s net
asset value and total return.
Incorrect investment pricing, or a
failure to maintain proper legal title
of the assets held by the Company
could have a significant impact on
the portfolio valuation and the
return generated for shareholders.
We have performed the following procedures:
We obtained an understanding of the processes
and controls surrounding investment valuation
and legal title of investments by performing
walkthrough procedures.
For all investments in the portfolio, we compared
the market prices and exchange rates applied to
an independent pricing vendor and recalculated
the investment valuations as at the year-end.
For all investments in the portfolio, we obtained the
market prices from an independent pricing vendor
for five business days pre and post the year end
date and calculated the day-on-day movements
to identify any stale prices. We verified that the
listed prices are valid fair values through review of
trading activity.
We compared the Company’s investment holdings
at 31 October 2024 to an independent confirmation
received directly from the Company’s Custodian.
The results of our
procedures
identified no
material
misstatement in
relation to the risk of
incorrect valuation
or ownership of the
investment portfolio.
There have been no changes to the areas of audit focus raised in the above risk table from the prior year.
64
The Bankers Investment Trust PLC Annual Report 2024
Independent Auditor’s report continued
Our application of materiality
We apply the concept of materiality in planning
and performing the audit, in evaluating the effect of
identified misstatements on the audit and in forming
our audit opinion.
Materiality
The magnitude of an omission or misstatement that,
individually or in the aggregate, could reasonably be
expected to influence the economic decisions of the users
of the financial statements. Materiality provides a basis for
determining the nature and extent of our audit procedures.
We determined materiality for the Company to be £14.34m
(2023: £13.34m), which is 1% (2023: 1%) of net assets. We
believe that net assets provides us with materiality
aligned to the key measure of the Company’s
performance.
During the course of our audit, we reassessed initial
materiality and found no reason to alter the basis of
calculation at year end.
Performance materiality
The application of materiality at the individual account or
balance level. It is set at an amount to reduce to an
appropriately low level the probability that the aggregate
of uncorrected and undetected misstatements exceeds
materiality.
On the basis of our risk assessments, together with our
assessment of the Company’s overall control
environment, our judgement was that performance
materiality was 75% (2023: 75%) of our planning
materiality, namely £10.76m (2023: £10.00m).
Given the importance of the distinction between
revenue and capital for investment trusts, we have also
applied a separate testing threshold for the revenue
column of the Statement of Comprehensive Income of
£1.72m (2023: £1.88m) being 5% (2023: 5%) of the revenue
profit before taxation.
Reporting threshold
An amount below which identified misstatements are
considered as being clearly trivial.
We agreed with the Audit and Risk Assurance Committee
that we would report to them all uncorrected audit
differences in excess of £0.72m (2022: £0.67m), which is set
at 5% of planning materiality, as well as differences below
that threshold that, in our view, warranted reporting on
qualitative grounds.
We evaluate any uncorrected misstatements against
both the quantitative measures of materiality discussed
above and in light of other relevant qualitative
considerations in forming our opinion.
Other information
The other information comprises the information included
in the annual report set out on pages other than the
financial statements and our auditor’s report thereon.
The Directors are responsible for the other information
contained within the annual report.
Our opinion on the financial statements does not cover
the other information and, except to the extent otherwise
explicitly stated in this report, we do not express any form
of assurance conclusion thereon.
Our responsibility is to read the other information and, in
doing so, consider whether the other information is
materially inconsistent with the financial statements or
our knowledge obtained in the course of the audit or
otherwise appears to be materially misstated. If we
identify such material inconsistencies or apparent
material misstatements, we are required to determine
whether this gives rise to a material misstatement in the
financial statements themselves. If, based on the work we
have performed, we conclude that there is a material
misstatement of the other information, we are required to
report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed
by the Companies Act 2006
In our opinion the part of the Directors’ remuneration
report to be audited has been properly prepared in
accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the
course of the audit:
• the information given in the strategic report and the
Directors’ report for the financial year for which the
financial statements are prepared is consistent with
the financial statements; and
• the strategic report and Directors’ reports have been
prepared in accordance with applicable legal
requirements.
Matters on which we are required to
report by exception
In the light of the knowledge and understanding of the
Company and its environment obtained in the course of
the audit, we have not identified material misstatements
in the strategic report or Directors’ report.
We have nothing to report in respect of the following
matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
• adequate accounting records have not been kept, or
returns adequate for our audit have not been received
from branches not visited by us; or
• the financial statements and the part of the Directors’
remuneration report to be audited are not in agreement
with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified
by law are not made; or
• we have not received all the information and
explanations we require for our audit.
Strategic report
Financial
statements
Additional
information
65
The Bankers Investment Trust PLC Annual Report 2024
Governance
Independent Auditor’s report continued
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to
going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the
company’s compliance with the provisions of the UK
Corporate Governance Code specified for our review by
the UK Listing Rules.
Based on the work undertaken as part of our audit, we
have concluded that each of the following elements of
the Corporate Governance Statement is materially
consistent with the financial statements or our knowledge
obtained during the audit:
• Directors’ statement with regards to the
appropriateness of adopting the going concern basis
of accounting and any material uncertainties identified
set out on page 73;
• Directors’ explanation as to its assessment of the
company’s prospects, the period this assessment
covers and why the period is appropriate set out
on page 37;
• Director’s statement on whether it has a reasonable
expectation that the group will be able to continue in
operation and meets its liabilities set out on page 37;
• Directors’ statement on fair, balanced and
understandable set out on page 37;
• Board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out
on page 37;
• The section of the annual report that describes the
review of effectiveness of risk management and
internal control systems set out on page 49; and
• The section describing the work of the audit committee
set out on page 51.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities
statement set out on page 61, the Directors are
responsible for the preparation of the financial statements
and for being satisfied that they give a true and fair view,
and for such internal control as the Directors determine is
necessary to enable the preparation of financial
statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Directors are
responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the Directors either
intend to liquidate the Company or to cease operations,
or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit
of the financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these financial statements.
Explanation as to what extent the audit
was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above,
to detect irregularities, including fraud. The risk of not
detecting a material misstatement due to fraud is higher
than the risk of not detecting one resulting from error, as
fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or
through collusion. The extent to which our procedures are
capable of detecting irregularities, including fraud is
detailed below.
However, the primary responsibility for the prevention and
detection of fraud rests with both those charged with
governance of the Company and management.
• We obtained an understanding of the legal and
regulatory frameworks that are applicable to the
Company and determined that the most significant are
UK-adopted International Accounting Standards, the
Companies Act 2006, the Listing Rules, UK Corporate
Governance Code, the Association of Investment
Companies’ Code and Statement of Recommended
Practice, Section 1158 of the Corporation Tax Act 2010
and the Companies (Miscellaneous Reporting)
Regulations 2018.
• We understood how the Company is complying with
those frameworks by discussions with the Audit and
Risk Assurance Committee and the Company Secretary
and review of Board minutes and the Company’s
documented policies and procedures.
• We assessed the susceptibility of the Company’s
financial statements to material misstatement,
including how fraud might occur by considering the
key risks impacting the financial statements. We
identified a fraud risk with respect to the incomplete
or inaccurate revenue recognition through the
incorrect classification of special dividends in the
Statement of Comprehensive Income. Further
discussion of our approach is set out in the section
on key audit matters above.
• Based on this understanding we designed our audit
procedures to identify non-compliance with such laws
and regulations. Our procedures involved review of the
reporting to the Directors with respect to the
application of the documented policies and
procedures and review of the financial statements to
ensure compliance with the reporting requirements of
the Company.
66
The Bankers Investment Trust PLC Annual Report 2024
Independent Auditor’s report continued
A further description of our responsibilities for
the audit of the financial statements is located
on the Financial Reporting Council’s website at
www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Other matters we are required
to address
• Following the recommendation from the Audit and
Risk Assurance Committee, we were appointed by
the company on 17 November 2016 to audit the
financial statements for the year ending 31 October
2016 and subsequent financial periods.
• The period of total uninterrupted engagement
including previous renewals and reappointments is
9 years, covering the years ending 31 October 2016
to 31 October 2024.
• The audit opinion is consistent with the additional
report to the Audit and Risk Assurance Committee.
Use of our report
This report is made solely to the Company’s members, as
a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken
so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the
Company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Mike Gaylor
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor
London
15 January 2025
Strategic report
Financial
statements
Additional
information
67
The Bankers Investment Trust PLC Annual Report 2024
Governance
Financial
statements
In this section
69 Statement of Comprehensive Income
70 Statement of Changes in Equity
71 Statement of Financial Position
72 Cash Flow Statement
73 Notes to the financial statements
The Bankers Investment Trust PLC Annual Report 2024
68
Statement of Comprehensive Income
for the year ended 31 October
Notes
Year ended 31 October 2024 Year ended 31 October 2023
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
2 Gains on investments held at fair
value through profit or loss
– 205,394 205,394 – 37,376 37,376
3
Investment income
37,652 – 37,652 40,439 – 40,439
4
Other operating income
1,003 – 1,003 1,326 – 1,326
Total income
38,655 205,394 244,049 41,765 37,376 79,141
Expenses
5
Management fees
(1,856) (4,334) (6,190) (1,790) (4,176) (5,966)
6
Other expenses
(1,329) – (1,329) (970) – (970)
Profit before finance costs and
taxation
35,470 201,060 236,530 39,005 33,200 72,205
7
Finance costs
(998) (2,329) (3,327) (1,376) (3,211) (4,587)
Profit before taxation
34,472 198,731 233,203 37,629 29,989 67,618
8
Taxation
(3,194) (59) (3,253) (3,061) – (3,061)
Profit for the year and total
comprehensive income
31,278 198,672 229,950 34,568 29,989 64,557
9
Earnings per ordinary share –
basic and diluted
2.63p 16.70p 19.33p 2.72p 2.35p 5.07p
The total columns of this statement represent the Statement of Comprehensive Income, prepared in accordance with
UK-adopted International Accounting Standards. The revenue return and capital return columns are supplementary to
this and are prepared under guidance published by the Association of Investment Companies. The Company had no
recognised gains or losses other than those disclosed in the Statement of Comprehensive Income.
Strategic report Governance
Additional
information
69
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
The notes on pages 73 to 90 form part of these financial statements
Statement of Changes in Equity
for the year ended 31 October
Notes
Year ended 31 October 2024
Called up
share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other
capital
reserves
£’000
Revenue
reserve
£’000
Total
£’000
Total equity at 1 November 2023
32,878 159,797 12,489 1,084,848 43,511 1,333,523
Total comprehensive income:
Profit for the year
– – – 198,672 31,278 229,950
Transactions with owners, recorded
directly to equity:
18, 20 Buyback of shares to treasury
– – – (97,331) – (97,331)
10 Ordinary dividends paid
– – – – (31,996) (31,996)
Total equity at 31 October 2024
32,878 159,797 12,489 1,186,189 42,793 1,434,146
Notes
Year ended 31 October 2023
Called up
share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other
capital
reserves
£’000
Revenue
reserve
£’000
Total
£’000
Total equity at 1 November 2022
32,878 159,797 12,489 1,115,343 40,159 1,360,666
Total comprehensive income:
Profit for the year
– – – 29,989 34,568 64,557
Transactions with owners, recorded
directly to equity:
18, 20 Buyback of shares to treasury
– – – (60,484) – (60,484)
10 Ordinary dividends paid
– – – – (31,216) (31,216)
Total equity at 31 October 2023
32,878 159,797 12,489 1,084,848 43,511 1,333,523
70
The Bankers Investment Trust PLC Annual Report 2024
The notes on pages 73 to 90 form part of these financial statements
Statement of Financial Position
Notes
At
31 October
2024
£’000
At 31 October
2023
£’000
Non-current assets
11 Investments held at fair value through profit or loss
1,455,333 1,428,787
Current assets
12 Investments held at fair value through profit or loss
33,549 13,116
13 Other receivables
4,646 19,001
Cash and cash equivalents
66,689 14,525
104,884 46,642
Total assets
1,560,217 1,475,429
Current liabilities
14 Other payables
(2,315) (17,006)
(2,315) (17,006)
Total assets less current liabilities
1,557,902 1,458,423
Non-current liabilities
15 Unsecured loan notes
(123,756) (124,900)
(123,756) (124,900)
Net assets
1,434,146 1,333,523
Equity attributable to equity shareholders
18 Share capital
32,878 32,878
19 Share premium account
159,797 159,797
20 Capital redemption reserve
12,489 12,489
Retained earnings:
20 Other capital reserves
1,186,189 1,084,848
21 Revenue reserves
42,793 43,511
Total equity
1,434,146 1,333,523
17 Net asset value per ordinary share
125.2p 108.0p
The financial statements on pages 69 to 90 were approved by the Board of Directors on 15 January 2025 and signed on
its behalf by:
Richard West
Senior Independent Director
Strategic report Governance
Additional
information
71
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
The notes on pages 73 to 90 form part of these financial statements
Cash Flow Statement
for the year ended 31 October
Notes Reconciliation of profit before taxation to net cash flow from operating activities
Year
ended
31
October
2024
£’000
Year ended
31 October
2023
£’000
Operating activities
Profit before taxation
233,203 67,618
2 Gains on investments held at fair value through profit or loss
(205,394) (37,376)
Purchases of investments
(1,013,738) (830,071)
Sales of investments
1,191,430 872,865
Purchases of current asset investments
(117,393) (80,700)
Sales of current asset investments
96,959 67,585
(Decrease)/increase in securities purchased for future settlement
(13,721) 12,119
Decrease/(increase) in other receivables
32 (58)
Decrease in other payables
(94) (169)
Decrease/(increase) in accrued income
502 (14,217)
Add back interest payable (‘finance costs’)
3,327 4,587
Net cash inflow from operating activities before interest and taxation
1
175,113 62,183
Interest paid
(4,506) (4,525)
Taxation on investment income
(2,932) (3,290)
Net cash inflow from operating activities
167,675 54,368
Financing activities
10 Equity dividends paid (net of refund of unclaimed distributions)
(31,996) (31,216)
Redemption of debenture
– (15,000)
Share buybacks
(98,207) (59,579)
Net cash outflow from financing activities
(130,203) (105,795)
Increase/(decrease) in cash
37,472 (51,427)
Cash and cash equivalents at the start of the year
14,525 65,871
Exchange movements
(14) 81
Cash and cash equivalents at the end of the year
51,983 14,525
1 Cash inflow from dividends was £33,624,000 (2023: £36,225,000) and cash inflows from interest was £1,767,000 (2023: £1,349,000)
72
The Bankers Investment Trust PLC Annual Report 2024
The notes on pages 73 to 90 form part of these financial statements
Notes to the financial statements
1 Accounting policies
a) Basis of preparation
The Bankers Investment Trust PLC is a company incorporated and domiciled in the United Kingdom under the
ʶˢˠˣ˔ˡ˜˘˦ʴ˖˧ʥʣʣʩʡˇ˛˘Ѓˡ˔ˡ˖˜˔˟˦˧˔˧˘ˠ˘ˡ˧˦ˢ˙˧˛˘ʶˢˠˣ˔ˡˬ˙ˢ˥˧˛˘ˬ˘˔˥˘ˡ˗˘˗ʦʤ˂˖˧ˢ˕˘˥ʥʣʥʧ˛˔˩˘˕˘˘ˡ
prepared in accordance with UK-adopted International Accounting Standards.
ˇ˛˘Ѓˡ˔ˡ˖˜˔˟˦˧˔˧˘ˠ˘ˡ˧˦˛˔˩˘˕˘˘ˡˣ˥˘ˣ˔˥˘˗ˢˡ˔˚ˢ˜ˡ˚˖ˢˡ˖˘˥ˡ˕˔˦˜˦ʡˇ˛˘ˣ˥˜ˡ˖˜ˣ˔˟˔˖˖ˢ˨ˡ˧˜ˡ˚ˣˢ˟˜˖˜˘˦˔˗ˢˣ˧˘˗˔˥˘
set out below. These policies have been applied consistently throughout the year. Where presentational guidance set
out in the Statement of Recommended Practice (‘the SORP’) for investment companies issued by the Association of
Investment Companies (‘the AIC’) amended in July 2022 is consistent with the requirements of UK-adopted
ʼˡ˧˘˥ˡ˔˧˜ˢˡ˔˟ʴ˖˖ˢ˨ˡ˧˜ˡ˚ˆ˧˔ˡ˗˔˥˗˦ʟ˧˛˘ʷ˜˥˘˖˧ˢ˥˦˛˔˩˘˦ˢ˨˚˛˧˧ˢˣ˥˘ˣ˔˥˘˧˛˘Ѓˡ˔ˡ˖˜˔˟˦˧˔˧˘ˠ˘ˡ˧˦
on a basis consistent with the recommendations of the SORP.
Going concern
In reviewing viability (see page 37) and going concern, the Directors have considered, among other things, cash
flow forecasts, a review of covenant compliance including the headroom above the most restrictive covenants
and an assessment of the liquidity of the portfolio and the impact of the wars in Ukraine and Israel and changes
in the international political landscape. The assets of the Company consist mainly of securities that are listed and
readily realisable.
Thus, after making due enquiry, the Directors believe that the Company has adequate financial resources to meet its
financial obligations, including the repayment of any borrowings, and to continue in operational existence for at least
12 months from the date of approval of the financial statements to 31 January 2026. Accordingly, the Directors continue
to adopt the going concern basis in preparing the financial statements.
Accounting Standards
i) New and amended standards adopted by the Company
None of these were material to the financial statements.
Standards
Effective for annual periods
beginning on or after
IAS 1 Amendments Disclosure of Accounting Policies
01 Jan 2023
IAS 8 Amendments Definition of Accounting Estimates
01 Jan 2023
IAS 12 Amendments Deferred Tax and OECD Pillar 2 Taxes
01 Jan 2023
˜˜ʜˁ˘˪˦˧˔ˡ˗˔˥˗˦ʟ˔ˠ˘ˡ˗ˠ˘ˡ˧˦˔ˡ˗˜ˡ˧˘˥ˣ˥˘˧˔˧˜ˢˡ˦˜˦˦˨˘˗˕˨˧ˡˢ˧˘˙˙˘˖˧˜˩˘˙ˢ˥˧˛˘˖˨˥˥˘ˡ˧Ѓˡ˔ˡ˖˜˔˟ˬ˘˔˥˔ˡ˗ˡˢ˧
early adopted by the Company
Standards
Effective for annual periods
beginning on or after
IAS 1 Amendments Classification of Liabilities as Current or Non-Current
01 Jan 2024
IAS 1 Amendments Non-current Liabilities with Covenants
01 Jan 2024
IAS 7 and IFRS 7 Amendments Supplier Finance Arrangements
01 Jan 2024
IAS 21 Amendments Lack of Exchangeability
01 Jan 2025
Annual Improvements 2023-24 Minor amendments to IFRS 1, 7, 9, 10, and IAS 7
01 Jan 2026
IFRS 7 and 9 Amendments Classification and Measurement of Financial Instruments
01 Jan 2026
IFRS 18 Presentation and Disclosure in Financial Statements
01 Jan 2027
A number of new standards, amendments and interpretations have been issued that are not effective for the current
Ѓˡ˔ˡ˖˜˔˟ˬ˘˔˥˘ˡ˗˔ˡ˗ˡˢ˧˥˘˟˘˩˔ˡ˧ˢ˥ˠ˔˧˘˥˜˔˟˧ˢ˧˛˘ʶˢˠˣ˔ˡˬϠ˦ˢˣ˘˥˔˧˜ˢˡ˦ʡˇ˛˘ˬ˪˜˟˟˧˛˘˥˘˙ˢ˥˘˛˔˩˘ˡˢ˜ˠˣ˔˖˧ˢˡ˧˛˘
ʶˢˠˣ˔ˡˬϠ˦Ѓˡ˔ˡ˖˜˔˟˦˧˔˧˘ˠ˘ˡ˧˦˪˛˘ˡ˧˛˘ˬ˕˘˖ˢˠ˘˘˙˙˘˖˧˜˩˘ʡ
b) Investments held at fair value through profit or loss
ʴ˟˟˜ˡ˩˘˦˧ˠ˘ˡ˧˦˔˥˘˖˟˔˦˦˜Ѓ˘˗˔˦˛˘˟˗˔˧˙˔˜˥˩˔˟˨˘˧˛˥ˢ˨˚˛ˣ˥ˢЃ˧ˢ˥˟ˢ˦˦ʡʼˡ˩˘˦˧ˠ˘ˡ˧˧˥˔ˡ˦˔˖˧˜ˢˡ˦˔˥˘˔˖˖ˢ˨ˡ˧˘˗˙ˢ˥ˢˡ˔
trade date basis. Investments are de-recognised at the trade date of the disposal. Proceeds are measured at fair value,
˪˛˜˖˛˜˦˥˘˚˔˥˗˘˗˔˦˧˛˘ˣ˥ˢ˖˘˘˗˦ˢ˙˦˔˟˘˟˘˦˦˔ˡˬ˧˥˔ˡ˦˔˖˧˜ˢˡ˖ˢ˦˧˦ʡˇ˛˘˙˔˜˥˩˔˟˨˘ˢ˙˧˛˘Ѓˡ˔ˡ˖˜˔˟˜ˡ˦˧˥˨ˠ˘ˡ˧˦˜ˡ˧˛˘
˦˧˔˧˘ˠ˘ˡ˧ˢ˙Ѓˡ˔ˡ˖˜˔˟ˣˢ˦˜˧˜ˢˡ˜˦˕˔˦˘˗ˢˡ˧˛˘˜˥ˤ˨ˢ˧˘˗˕˜˗ˣ˥˜˖˘˔˧˧˛˘˦˧˔˧˘ˠ˘ˡ˧ˢ˙Ѓˡ˔ˡ˖˜˔˟ˣˢ˦˜˧˜ˢˡ˗˔˧˘ʟ˪˜˧˛ˢ˨˧
deduction of the estimated future selling costs.
ʶ˛˔ˡ˚˘˦˜ˡ˧˛˘˙˔˜˥˩˔˟˨˘ˢ˙˜ˡ˩˘˦˧ˠ˘ˡ˧˦˛˘˟˗˔˧˙˔˜˥˩˔˟˨˘˧˛˥ˢ˨˚˛ˣ˥ˢЃ˧ˢ˥˟ˢ˦˦˔ˡ˗˚˔˜ˡ˦˔ˡ˗˟ˢ˦˦˘˦ˢˡ˗˜˦ˣˢ˦˔˟˔˥˘
˥˘˖ˢ˚ˡ˜˦˘˗˜ˡ˧˛˘ˆ˧˔˧˘ˠ˘ˡ˧ˢ˙ʶˢˠˣ˥˘˛˘ˡ˦˜˩˘ʼˡ˖ˢˠ˘˔˦ϟʺ˔˜ˡ˦ˢˡ˜ˡ˩˘˦˧ˠ˘ˡ˧˦˛˘˟˗˔˧˙˔˜˥˩˔˟˨˘˧˛˥ˢ˨˚˛ˣ˥ˢЃ˧ˢ˥
loss’. Also included within this caption are transaction costs in relation to the purchase or sale of investments, including
the difference between the purchase price of an investment and its bid price at the date of the purchase.
Strategic report Governance
Additional
information
73
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
1 Accounting policies continued
c) Presentation of Statement of Comprehensive Income
In accordance with guidance issued by the AIC, supplementary information which analyses the statement of
comprehensive income between items of a revenue and capital nature has been presented alongside the statement
of comprehensive income. The net revenue is the measure the Directors believe appropriate in assessing the
Company’s compliance with certain requirements set out in section 1158 of the Corporation Tax Act 2010.
d) Income
Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis. Special dividends
are treated as revenue return or as capital return, depending on the facts of each individual case. Bank deposit interest
are accounted for on an accruals basis.
e) Expenses
All expenses and interest payable are accounted for on an accruals basis. On the basis of the Board’s expected long
term split of total returns in the form of capital and revenue returns of 70% and 30% respectively, the Company charges
ʪʣʘˢ˙˜˧˦Ѓˡ˔ˡ˖˘˖ˢ˦˧˦˔ˡ˗˜ˡ˩˘˦˧ˠ˘ˡ˧ˠ˔ˡ˔˚˘ˠ˘ˡ˧˙˘˘˦˧ˢ˖˔ˣ˜˧˔˟ʡʸ˫ˣ˘ˡ˦˘˦˪˛˜˖˛˔˥˘˜ˡ˖˜˗˘ˡ˧˔˟˧ˢ˧˛˘ˣ˨˥˖˛˔˦˘ˢ˥
sale of an investment are charged to the capital return column of the statement of comprehensive income and
allocated to other capital reserves. All other operating expenses are charged to the revenue return column of the
statement of comprehensive income.
f) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ˇ˛˘˧˔˫˖˨˥˥˘ˡ˧˟ˬˣ˔ˬ˔˕˟˘˜˦˕˔˦˘˗ˢˡ˧˛˘˧˔˫˔˕˟˘ˣ˥ˢЃ˧˙ˢ˥˧˛˘ˬ˘˔˥ʡˇ˔˫˔˕˟˘ˣ˥ˢЃ˧˗˜˙˙˘˥˦˙˥ˢˠˡ˘˧ˣ˥ˢЃ˧˔˦˥˘ˣˢ˥˧˘˗˜ˡ
the statement of comprehensive income because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable or deductible. The liability for current tax is
calculated using the effective tax rate of corporation tax for the accounting period.
In line with the recommendations of the SORP, the allocation method used to calculate tax relief on expenses presented
against capital returns in the supplementary information in the statement of comprehensive income is the ‘marginal
basis’. Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue return
column of the statement of comprehensive income, then no tax relief is transferred to the capital return column.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets
˔ˡ˗˟˜˔˕˜˟˜˧˜˘˦˜ˡ˧˛˘Ѓˡ˔ˡ˖˜˔˟˦˧˔˧˘ˠ˘ˡ˧˦˔ˡ˗˧˛˘˖ˢ˥˥˘˦ˣˢˡ˗˜ˡ˚˧˔˫˕˔˦˘˦˨˦˘˗˜ˡ˧˛˘˖ˢˠˣ˨˧˔˧˜ˢˡˢ˙˧˔˫˔˕˟˘ˣ˥ˢЃ˧ʟ
˔ˡ˗˜˦˔˖˖ˢ˨ˡ˧˘˗˙ˢ˥˨˦˜ˡ˚˧˛˘˦˧˔˧˘ˠ˘ˡ˧ˢ˙Ѓˡ˔ˡ˖˜˔˟ˣˢ˦˜˧˜ˢˡ˟˜˔˕˜˟˜˧ˬˠ˘˧˛ˢ˗ʡʷ˘˙˘˥˥˘˗˧˔˫˟˜˔˕˜˟˜˧˜˘˦˔˥˘˥˘˖ˢ˚ˡ˜˦˘˗˙ˢ˥
all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable
ˣ˥ˢЃ˧˦˪˜˟˟˕˘˔˩˔˜˟˔˕˟˘˔˚˔˜ˡ˦˧˪˛˜˖˛˗˘˗˨˖˧˜˕˟˘˧˘ˠˣˢ˥˔˥ˬ˗˜˙˙˘˥˘ˡ˖˘˦˖˔ˡ˕˘˨˧˜˟˜˦˘˗ʡʼˡ˩˘˦˧ˠ˘ˡ˧˧˥˨˦˧˦˪˛˜˖˛˛˔˩˘
approval as such under section 1158 of the Corporation Tax Act 2010 are not liable for UK taxation or taxation in the UK on
capital gains.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the
asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates
to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
g) Dividends payable to shareholders
ʷ˜˩˜˗˘ˡ˗˦ˣ˔ˬ˔˕˟˘˧ˢ˦˛˔˥˘˛ˢ˟˗˘˥˦˔˥˘˥˘˖ˢ˚ˡ˜˦˘˗˜ˡ˧˛˘Ѓˡ˔ˡ˖˜˔˟˦˧˔˧˘ˠ˘ˡ˧˦˪˛˘ˡ˧˛˘ˬ˔˥˘ˣ˔˜˗ˢ˥ʟ˜ˡ˧˛˘˖˔˦˘ˢ˙Ѓˡ˔˟
dividends, when they are approved by shareholders. Dividends paid are disclosed in the statement of changes in equity.
h) Foreign currency
ʹˢ˥˧˛˘ˣ˨˥ˣˢ˦˘˦ˢ˙˧˛˘Ѓˡ˔ˡ˖˜˔˟˦˧˔˧˘ˠ˘ˡ˧˦ʟ˧˛˘˥˘˦˨˟˧˦˔ˡ˗Ѓˡ˔ˡ˖˜˔˟ˣˢ˦˜˧˜ˢˡ˜˦˘˫ˣ˥˘˦˦˘˗˜ˡˣˢ˨ˡ˗˦˦˧˘˥˟˜ˡ˚ʟ˪˛˜˖˛
is the functional currency of the Company and the presentational currency of the Company. Sterling is the functional
currency because it is the currency of the primary economic environment in which the Company operates and its
primary capital raising currency.
Transactions recorded in overseas currencies during the year are translated into sterling at the appropriate daily
˘˫˖˛˔ˡ˚˘˥˔˧˘˦ʡˀˢˡ˘˧˔˥ˬ˔˦˦˘˧˦˔ˡ˗˟˜˔˕˜˟˜˧˜˘˦˔ˡ˗˘ˤ˨˜˧ˬ˜ˡ˩˘˦˧ˠ˘ˡ˧˦˛˘˟˗˔˧˙˔˜˥˩˔˟˨˘˧˛˥ˢ˨˚˛ˣ˥ˢЃ˧ˢ˥˟ˢ˦˦˧˛˔˧˔˥˘
˗˘ˡˢˠ˜ˡ˔˧˘˗˜ˡˢ˩˘˥˦˘˔˦˖˨˥˥˘ˡ˖˜˘˦˔˧˧˛˘˦˧˔˧˘ˠ˘ˡ˧ˢ˙Ѓˡ˔ˡ˖˜˔˟ˣˢ˦˜˧˜ˢˡ˗˔˧˘˔˥˘˧˥˔ˡ˦˟˔˧˘˗˜ˡ˧ˢ˦˧˘˥˟˜ˡ˚˔˧˧˛˘
˘˫˖˛˔ˡ˚˘˥˔˧˘˦˥˨˟˜ˡ˚˔˧˧˛˔˧˗˔˧˘ʡʸ˫˖˛˔ˡ˚˘˚˔˜ˡ˦˔ˡ˗˟ˢ˦˦˘˦ˢˡ˜ˡ˩˘˦˧ˠ˘ˡ˧˦˛˘˟˗˔˧˙˔˜˥˩˔˟˨˘˧˛˥ˢ˨˚˛ˣ˥ˢЃ˧ˢ˥˟ˢ˦˦
˔˥˘˜ˡ˖˟˨˗˘˗˪˜˧˛˜ˡϟʺ˔˜ˡ˦ˢˡ˜ˡ˩˘˦˧ˠ˘ˡ˧˦˛˘˟˗˔˧˙˔˜˥˩˔˟˨˘˧˛˥ˢ˨˚˛ˣ˥ˢЃ˧ˢ˥˟ˢ˦˦Ϡʡ
74
The Bankers Investment Trust PLC Annual Report 2024
Notes to the financial statements continued
1 Accounting policies continued
i) Cash
Cash comprises cash in hand and on demand deposits.
j) Borrowings
Interest-bearing bank loans, overdrafts and loan notes are recorded initially at fair value, being the proceeds received,
net of direct issue costs. They are subsequently measured at amortised cost. Finance costs, including premiums
payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the statement
of comprehensive income using the effective interest rate method and are added to the carrying amount of the
instrument to the extent that they are not settled in the period in which they arise.
k) Issue and repurchase of ordinary shares
The proceeds from the issue of new ordinary shares (including those relating to the sale of shares out of treasury) and
the aggregate cost of repurchasing ordinary shares including related stamp duty and transaction costs are taken
directly to equity and disclosed in the statement of changes in equity. Issue costs incurred in respect of shares sold out
of treasury are offset against proceeds received and dealt with in other capital reserves. Share issues and repurchase
transactions are accounted for on a trade date basis. The nominal value of ordinary share capital repurchased and
cancelled is transferred out of called-up share capital and into the capital redemption reserve.
l) Capital reserves
Other capital reserves are split into two components, the capital reserve arising on investments sold and the capital
reserve arising on revaluation of investments held, together ’Other capital reserves’. The following analyses what is
accounted for in each of these components.
Capital reserve arising on investments sold
The following are accounted for in this reserve:
• gains and losses on the disposals of investments;
• expenses and finance costs allocated to capital net of tax relief;
• realised foreign exchange differences of a capital nature; and
• costs of repurchasing ordinary share capital.
Capital reserve arising on revaluation of investments held
The following are accounted for in this reserve:
• increases and decreases in the valuation of investments held at the year end; and
• unrealised foreign exchange differences of a capital nature.
Revenue reserve
The revenue reserve represents accumulated revenue profits retained by the Company that have not currently been
distributed to shareholders as a dividend.
Capital redemption reserve
The capital redemption reserve represents the nominal value of ordinary shares repurchased and cancelled.
Share capital
Share capital represents the nominal value of ordinary shares in issue.
Share premium
The share premium account represents the premium above nominal value received by the Company on issuing shares
net of issue costs.
m) Distributable reserves
The Company’s capital reserve arising on investments sold of £890,806,000 (2023: £933,252,000) and revenue reserve of
£42,793,000 (2023: £43,511,000) may be distributed by way of a dividend.
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Additional
information
75
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
1 Accounting policies continued
n) Key estimates and assumptions
Estimates and assumptions used in preparing the financial statements are reviewed on an ongoing basis and are
based on historical experience and various other factors that are believed to be reasonable under the circumstances.
The results of these estimates and assumptions form the basis of making judgements about carrying values of assets
and liabilities that are not readily apparent from other sources.
The Directors do not believe there are any estimates and assumptions that have been applied to this set of financial
statements that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities,
nor do they believe that there are any estimates that have a significant risk of causing a material adjustment to the
carrying amount of assets and liabilities within the next financial year. The decision to allocate special dividends as
income or capital is a judgement but not deemed to be a significant judgement. The fair values of investments are
used, whereby quoted prices are used to value the investments in active markets and thereby reflect participants’
views of climate change risk.
o) Receivables
Receivables are amounts due from securities sold for future settlement, withholding tax recoverable, prepayments and
accrued income in the ordinary course of business. Receivables are recognised initially at fair value based on
contractual settlement amounts and subsequently measured at amortised cost using the effective interest rate method.
p) Payables
Trade payables are obligations to pay for securities purchased for future settlement, accruals and deferred income
that have been acquired/incurred in the ordinary course of business. Trade payables are recognised initially at fair
value based on contractual settlement amounts and subsequently measured at amortised cost using the effective
interest rate method.
q) Policy on operating segments
Under IFRS 8, operating segments are considered to be the components of an entity, about which separate financial
information is available, that is evaluated regularly by the chief operating decision-maker (the Board, with support from
Janus Henderson) in deciding how to allocate resources and in assessing performance. The Directors meet regularly to
consider investment strategy and to monitor the Company’s performance. The Fund Manager, who has been
appointed to manage the Company’s investments, attends all Board meetings at which investment strategy and
performance are discussed. The Directors consider that the Company has one operating segment, which invests in
shares and securities primarily for capital appreciation and dividend growth in accordance with the Company’s
published investment objective.
The business is not managed on a geographical basis. However, disclosure by geographical segment has been
provided in note 3 on page 77. Further analyses of expenses, investment gains or losses, profit and other assets and
liabilities by country have not been given as either it is not possible to prepare such information in a meaningful way
or the results are not considered to be significant.
2 Gains on investments held at fair value through profit or loss
2024
£’000
2023
£’000
Gains on sale of investments based on historical cost
61,621 148,532
Class action proceeds
– 81
Revaluation gains recognised in previous years
(25,112) (77,670)
Gains on investments sold in the year based on carrying value at previous statement
of financial position date
36,509 70,943
Revaluation of investments held at 31 October
167,729 (33,090)
Exchange gains/(losses)
1,156 (477)
Gains on Investments held at fair value through profit or loss
205,394 37,376
76
The Bankers Investment Trust PLC Annual Report 2024
Notes to the financial statements continued
3 Investment income
2024
£’000
2023
£’000
UK dividend income – listed
8,341 9,308
Overseas dividend income – listed
28,241 30,205
Overseas dividend income – special dividends
829 702
Property income distributions
241 224
37,652
40,439
Analysis of investment income by geographical region:
Europe and UK
1
now Pan Europe
15,443 16,695
North America
10,478 10,866
Japan
4,073 4,275
Pacific (ex Japan)
1
now Pan Asia
7,658 8,603
37,652
40,439
1 2023 figures have been reclassified as UK has combined with Europe and China has combined with Pacific (ex Japan)
Special dividends received in the year amounted to £974,000 (2023: £816,000), of which £829,000 classified as revenue
(2023: £816,000) and £145,000 (2023: nil) classified as capital.
4 Other operating income
2024
£’000
2023
£’000
Bank interest
990 1,311
Other income
13 15
1,003 1,326
5 Management fees
2024 2023
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Investment management 1,856 4,334 6,190 1,790 4,176 5,966
1,856
4,334 6,190 1,790 4,176 5,966
A summary of the terms of the management agreement is given in the Business Model on page 29 and further details
can be found in note 23.
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Additional
information
77
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
6 Other expenses
2024
£’000
2023
£’000
Directors’ fees and expenses (see page 59)
213 206
Auditors’ remuneration – for audit services
55 52
Expenses payable to Janus Henderson relating to marketing services
182 68
Bank/custody charges
259 259
Depositary fees
60 53
Registrar fees
78 64
Broker fees
70 –
AIC subscriptions
21 21
Printing expenses
30 60
Legal fees
15 (175)
Listing fees
142 109
Irrecoverable VAT
15 14
Loan arrangement & non-utilisation fees
1
25 80
Other expenses
164 159
1,329 970
1 The Company’s multi-currency facility with SMBC Bank International plc expired on 26 February 2024 and has not been renewed
The compensation payable to key management personnel in respect of short term employment benefits was £213,000
(2023: £206,000) which relates wholly to the fees and expenses payable to the Directors in respect of the year.
7 Finance costs
2024 2023
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Interest on bank overdrafts
– 1 1 –11
Interest on debentures repayable:
– less than one year
1
– – – 360 840 1,200
Interest on unsecured loan notes repayable:
– after five years
2
998 2,328 3,326 1,016 2,370 3,386
998
2,329 3,327 1,376 3,211 4,587
1 Repayment of Debenture on 31 October 2023
2 Includes amortisation of issue costs and will therefore vary from year to year
78
The Bankers Investment Trust PLC Annual Report 2024
Notes to the financial statements continued
8 Taxation
a) Analysis of the tax charge for the year
2024 2023
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Overseas tax suffered
3,857 – 3,857 3,322 – 3,322
Indian capital gains tax charge on sales
– 59 59 –––
Overseas tax reclaimable
(663) – (663) (261) – (261)
Total tax charge for the year
3,194 59 3,253 3,061 – 3,061
b) Factors affecting the tax charge for the year
The differences are explained below:
2024 2023
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Profit before taxation
34,472 198,731 233,203 37,629 29,989 67,618
Corporation tax at rate for the year at 25.00%
(2023: 22.50%
1
)
8,618 49,683 58,301 8,467 6,747 15,214
Non-taxable UK dividends
(1,823) – (1,823) (1,972) – (1,972)
Overseas income and non-taxable scrip
dividends
(7,197) – (7,197) (6,717) – (6,717)
Overseas withholding tax suffered
3,194 – 3,194 3,061 – 3,061
Indian capital gains tax charge on sales
– 59 59 –––
Excess management expenses and loan
relationships
402 1,665 2,067 182 1,572 1,754
Interest capping restriction
– – – 40 90 130
Capital gains not subject to tax
– (51,348) (51,348) – (8,409) (8,409)
3,194 59 3,253 3,061 – 3,061
1 The 2023 rate comprised seven months at the rate of 25% and five months at the previous rate of 19%
c) Provision for deferred taxation
No provision for deferred taxation has been made in the current year or in the prior year.
The Company has not provided for deferred tax on capital gains or losses arising on the revaluation or disposal of
investments as it is exempt from tax on these items because of its status as an investment trust, which it intends to
maintain for the foreseeable future.
d) Factors that may affect future tax charges
The Company can offset management fees, other administrative expenses and interest costs against taxable income
to eliminate any tax charge on such income. The tax legislation refers to these as management expenses
(management fees and other administrative expenses) and non-trade loan relationship deficits (interest costs) and
these are captured together under the heading ‘Excess management expenses and loan relationships’ in the table
above. Where these are not fully utilised, they can be carried forward to future years. As the Company is unlikely to
generate future taxable profits to utilise these amounts, the Company cannot recognise an asset to reflect them, but
must still disclose the deferred tax amount carried forward arising from any unutilised amounts.
Consequently, the Company has not recognised a deferred tax asset totalling £23,763,000 (2023: £21,687,000) arising as
a result of having unutilised management expenses and unutilised non-trade loan relationship deficits totalling
£95,053,000 (2023: £86,749,000) and based on the prospective tax rate of 25% (2023: 25%).
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Additional
information
79
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
9 Earnings per ordinary share
The total earnings per ordinary share is based on the net profit attributable to the ordinary shares of £229,950,000
(2023: profit of £64,557,000) and on 1,189,599,929 ordinary shares (2023: 1,272,116,196), being the weighted average
number of shares in issue during the year.
The total earnings can be further analysed as follows:
2024
£’000
2023
£’000
Revenue profit
31,278 34,568
Capital profit
198,672 29,989
Profit for the year
229,950 64,557
Weighted average number of ordinary shares
1,189,599,929
1,272,116,196
Revenue earnings per ordinary share
2.63p 2.72p
Capital earnings per ordinary share
16.70p 2.35p
Earnings per ordinary share
19.33p 5.07p
The Company does not have any dilutive securities therefore basic and diluted earnings are the same.
10 Dividends on ordinary shares
Dividends on ordinary shares Record date Payment date
2024
£’000
2023
£’000
Third interim dividend (0.60p) for the year ended
31 October 2022 28 October 2022 30 November 2022
– 7,771
Final dividend (0.60p) for the year ended 31 October 2022 27 January 2023 28 February 2023
– 7,764
First interim dividend (0.62p) for the year ended
31 October 2023 28 April 2023 31 May 2023
– 7,879
Second interim dividend (0.62p) for the year ended
31 October 2023 28 July 2023 31 August 2023
– 7,802
Third interim dividend (0.66p) for the year ended
31 October 2023 26 October 2023 30 November 2023
8,155 –
Final dividend (0.66p) for the year ended 31 October 2023 25 January 2024 29 February 2024
8,050 –
First interim dividend (0.672p) for the year ended
31 October 2024 25 April 2024 31 May 2024
7,968 –
Second interim dividend (0.672p) for the year ended
31 October 2024 25 July 2024 31 August 2024
7,823 –
31,996 31,216
The total dividends payable in respect of the financial year, which form the basis of the calculation of the retention test
under Section 1158 of the Corporation Tax Act 2010, are set out below. All dividends have been paid or will be paid out of
revenue profits.
2024
£’000
2023
£’000
Revenue available for distribution by way of dividend for the year
31,278 34,568
First interim dividend (0.672p) (2023: 0.62p)
(7,968) (7,879)
Second interim dividend (0.672p) (2023: 0.62p)
(7,823) (7,802)
Third interim dividend (0.672p) paid on 29 November 2024 (2023: 0.66p paid on 30 November 2023)
(7,711) (8,155)
Final dividend (0.672p) payable on 28 February 2025 (2023: 0.66p paid on 28 February 2024)
1
(7,553) (8,050)
Revenue surplus for Section 1158 purposes
223 2,682
1 Based on the number of shares in issue, excluding shares held in treasury of 1,123,904,454, on 13 January 2025 being the latest practicable date prior to the
publication of this report
80
The Bankers Investment Trust PLC Annual Report 2024
Notes to the financial statements continued
11 Investments held at fair value through profit or loss
2024
£’000
2023
£’000
Valuation at start of year
1,428,787 1,433,728
Investment holding gain at start of year
(152,333) (263,093)
Cost at start of year
1,276,454 1,170,635
Acquisitions at cost
1,013,738 830,071
Disposals at cost
(1,129,809) (724,252)
Cost at end of year
1,160,383 1,276,454
Investment holding gains at end of year
294,950 152,333
Valuation of investments at end of year
1,455,333 1,428,787
The Company received £1,191,430,000 (2023: £872,784,000) from investments sold in the year. The book cost of these
investments when they were purchased were £1,129,809,000 (2023: £724,252,000). These investments have been
revalued over time, until they were sold any unrealised gains/losses were included in the fair value of investments.
Purchase and sale transaction costs for the year ended 31 October 2024 were £1,069,000 and £548,000 respectively
(2023: transaction costs of purchases £470,000; transaction costs of sales £255,000). These comprise mainly stamp
duty and commission
The Company has no interests of 3% or more of any class of capital of the companies in its portfolio (2023: none).
12 Current asset investment
The Company has a holding in Deutsche Global Liquidity Series Fund, a money market fund which is viewed as a readily
disposable store of value and which is used to invest cash balances that would otherwise be placed on short-term
deposit. At 31 October 2024 this holding had a value of £33,549,000 (2023: £13,116,000).
13 Other receivables
2024
£’000
2023
£’000
Securities sold for future settlement
– 13,559
Other taxes recoverable
2,166 2,428
Prepayments and accrued income
2,400 2,902
Other receivables
80 112
4,646
19,001
14 Current liabilities
2024
£’000
2023
£’000
Accruals
1,153 1,647
Securities purchased for future settlement
– 13,721
Buyback of shares into treasury for future settlement
347 1,223
Other payables
815 415
2,315
17,006
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Additional
information
81
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
15 Non-current liabilities: amounts falling due after more than one year
2024
£’000
2023
£’000
Borrowings: Loan note (unsecured):
3.68% unsecured loan notes 2035
49,869 49,859
1.67% unsecured loan notes 2041 (Euro)
37,024 38,183
2.28% unsecured loan notes 2045
36,863 36,858
123,756
124,900
The £50,000,000 3.68% unsecured loan notes 2035 were issued on 27 May 2015 and are redeemable at par on
27 May 2035. The unsecured loan notes were issued net of costs totalling £210,000.
The €44,000,000 1.67% unsecured loan notes 2041 were issued on 3 August 2021 and are redeemable at par on
3 August 2041. The unsecured loan notes were issued net of costs totalling £155,000.
The £37,000,000 2.28% unsecured loan notes 2045 were issued on 3 August 2021 and are redeemable at par on
3 August 2045. The unsecured loan notes were issued net of costs totalling £152,000.
16 Risk management policies and procedures
16.1 Market risk
Janus Henderson assesses the exposure to market risk when making each investment decision and monitors the
overall level of market risk on the whole of the investment portfolio on an ongoing basis.
16.1.1 Market price risk
Market price risk (i.e. changes in market prices other than those arising from interest rate risk or currency risk) may
affect the fair value of quoted and unquoted investments.
Management of the risk
The Board of Directors manages the risks inherent in the investment policy by ensuring full and timely reporting of
relevant information from Janus Henderson. Investment performance is reviewed at each Board meeting. The Board
monitors Janus Henderson’s compliance with the Company’s objectives and is directly responsible for investment
strategy and asset allocation, including as between countries and economies.
The Company’s exposure to changes in market prices on its investments was as follows:
2024
£’000
2023
£’000
Equities
1,455,333 1,428,786
1,455,333 1,428,786
Market price risk sensitivity
The following table illustrates the sensitivity of the profit after taxation for the year and the Company’s net assets to
an increase or decrease of 20% (2023: 20%) in the fair values of the Company’s investments at each statement of
financial position date. This level of change is considered to be reasonably possible based on observation of current
market conditions.
2024 2023
Increase
in
fair
value
£’000
Decrease in
fair
value
£’000
Increase in
fair value
£’000
Decrease in
fair value
£’000
Statement of comprehensive income – profit after tax
Revenue return
(349) 349 (343) 343
Capital return
290,252 (290,252) 284,957 (284,957)
Change to profit after tax for the year and net assets
289,903 (289,903) 284,614 (284,614)
82
The Bankers Investment Trust PLC Annual Report 2024
Notes to the financial statements continued
16 Risk management policies and procedures continued
16.1.2 Currency risk
Almost all of the Company’s assets, liabilities and income are denominated in currencies other than sterling (the
Company’s functional currency and presentational currency). As a result, movements in exchange rates may affect the
sterling value of those items.
Management of the risk
Janus Henderson monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board
at each Board meeting. Janus Henderson measures the risk to the Company of the foreign currency exposure by
considering the effect on the Company’s net asset value and total return of a movement in the exchange rates to
which the Company’s assets, liabilities, income and expenses are exposed.
Foreign currency borrowings may be used to limit the Company’s exposure to future changes in exchange rates which
might otherwise adversely affect the value of the portfolio of investments. These borrowings are limited to 20% of the
adjusted net asset value at the time of any draw down.
Investment income denominated in foreign currencies is converted into sterling on receipt. The Company did not use
financial instruments to mitigate the currency exposure in the period between the time that income is included in the
financial statements and its receipt
During the year, derivative contracts were not used to hedge against exposure to currency risk.
Foreign currency exposure
The fair values of the Company’s monetary items that have foreign currency exposure at 31 October are shown below.
Where the Company’s equity investments (which are not monetary items) are denominated in a foreign currency,
they have been included separately in the analysis so as to show the overall level of exposure.
2024
US$
£’000
Euro
£’000
Japanese
Yen
£’000
Chinese
Yuan
£’000
Swiss
Franc
£’000
Other
£’000
Other receivables/(payables)
528 776 1,348 – 1,087 269
Cash and cash equivalents
637 – 34 35,005 – 137
Non-current liabilities
– (37,024) – – – –
Total foreign currency exposure on net
monetary items
1,165 (36,248) 1,382 35,005 1,087 406
Investments at fair value through profit or loss
that are equities
733,223 216,217 197,238 17,956 36,584 155,017
Total net foreign currency exposures
734,388 179,969 198,620 52,961 37,671 155,423
2023
US$
£’000
Euro
£’000
Japanese
Yen
£’000
Chinese
Yuan
£’000
Swiss
Franc
£’000
Other
£’000
Other receivables/(payables)
804 1,015 1,443 – 1,074 299
Cash and cash equivalents
796 – – 271 – 75
Non-current liabilities
– (38,183) – – – –
Total foreign currency exposure on net
monetary items
1,600 (37,168) 1,443 271 1,074 374
Investments at fair value through profit or loss
that are equities
593,456 174,967 186,857 71,582 45,133 133,413
Total net foreign currency exposures
595,056 137,799 188,300 71,853 46,207 133,787
Foreign currency sensitivity
The table below illustrates the sensitivity of the total profit after tax for the year and the net assets in regard to movements
in the Company’s foreign currency financial assets and financial liabilities caused by 10% changes in the exchange rates
for the US dollar/sterling, euro/sterling, Japanese yen/sterling, Swiss franc/sterling and Chinese yuan/sterling.
The percentage is deemed reasonable based on the average market volatility in exchange rates in recent years. The
sensitivity analysis is based on the Company’s foreign currency financial assets and financial liabilities held at each
statement of financial position date, with all other variables held constant.
Strategic report Governance
Additional
information
83
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
16 Risk management policies and procedures continued
The impact on the total profit after tax and the year end net assets of a depreciation of 10% in the year end exchange
rate for sterling against the currencies shown would have been as follows:
2024 2023
US$
£’000
Euro
£’000
Japanese
Yen
£’000
Swiss
Franc
£’000
Chinese
Yuan
£’000
US$
£’000
Euro
£’000
Japanese
Yen
£’000
Swiss
Franc
£’000
Chinese
Yuan
£’000
Statement of
Comprehensive Income
– profit after tax
Revenue return
1,440 621 464 157 170 1,471 660 460 124 289
Capital return
81,469 19,896 21,916 4,065 1,995 65,940 15,182 20,762 5,015 7,946
Change to profit after
tax for the year and
net assets
82,909 20,517 22,380 4,222 2,165 67,411 15,842 21,222 5,139 8,235
The impact on the total profit after tax and the year end net assets of an appreciation of 10% in the year end exchange
rate for sterling against the currencies shown would have been as follows:
2024 2023
US$
£’000
Euro
£’000
Japanese
Yen
£’000
Swiss
Franc
£’000
Chinese
Yuan
£’000
US$
£’000
Euro
£’000
Japanese
Yen
£’000
Swiss
Franc
£’000
Chinese
Yuan
£’000
Statement of
Comprehensive Income
– profit after tax
Revenue return
(1,178) (508) (380) (129) (139) (1,204) (540) (377) (101) (236)
Capital return
(66,657) (16,278) (17,931) (3,327) (1,632) (53,950) (12,422) (16,987) (4,103) (6,513)
Change to profit after
tax for the year and
net assets
(67,835) (16,786) (18,311) (3,456) (1,771) (55,154) (12,962) (17,364) (4,204) (6,749)
In the opinion of the Directors, the above sensitivity analyses are not representative of the year as a whole, since the level
of exposure changes frequently as part of the currency risk management process used to meet the Company’s objective.
16.1.3 Interest rate risk
Interest rate movements may affect the level of interest receivable from cash at bank, the current asset investment
and the value of fixed interest investments.
Management of the risk
The Company’s exposure to interest rate risk is managed by Janus Henderson and is reported to the Board on a
regular basis.
Interest rate exposure
The exposure at 31 October of financial assets and (financial liabilities) to interest rate risk is shown below. Floating
interest rates exposure is by reference to when the interest rate is due to be re-set.
2024 2023
Within
one
year
£’000
More than
one
year
£’000
Total
£’000
Within
one year
£’000
More than
one year
£’000
Total
£’000
Exposure to floating interest rates:
Cash and cash equivalents
66,689 – 66,689 14,525 – 14,525
Current asset investment
33,549 – 33,549 13,116 – 13,116
Exposure to fixed interest rates:
Fixed interest investments
– – – –––
Unsecured loan notes
– (123,756) (123,756) – (124,900) (124,900)
100,238
(123,756) (23,518) 27,641 (124,900) (97,259)
84
The Bankers Investment Trust PLC Annual Report 2024
Notes to the financial statements continued
16 Risk management policies and procedures continued
The above amounts are not necessarily representative of the exposure to interest rates during the year, as the level of
exposure changes as investments are made and borrowings are drawn down and repaid.
Interest receivable and finance costs are at the following rates:
• Interest received on cash balances, or paid on bank overdrafts, is at a margin over SONIA or its foreign currency
equivalent (2023: same).
• Interest paid on unsecured loan notes is set out in note 7.
Interest rate sensitivity
The Company is primarily exposed to interest rate risk through its cash balances, bank loans, its current asset
investments and fixed income investments. The sensitivity of each exposure is as follows:
• Cash – Cash balances vary throughout the year. Cash balances at the year end were £66,689,000 (2023: £14,525,000)
and, if that level of cash was maintained for a full year, a 100 basis points change in interest rates (up or down) would
increase or decrease total net return after taxation by approximately £667,000 (2023: £145,000).
• Bank loans – Amounts drawn down vary throughout the year. During the year the Company did not renew the loan
facility which expired in February 2024 and therefore there was no amounts outstanding at the year end (2023: nil).
• Current asset investment sensitivity – The Company’s interest bearing current asset investment at the year end was
£33,549,000 (2023: £13,116,000) and, if that level of investment was maintained for a full year, a 100 basis points change
in interest rates (up or down) would increase or decrease total net return after taxation by approximately £335,000
(2023: £131,000).
There is no exposure to interest rate risk through the loan notes because the interest is at a fixed rate.
16.2 Liquidity risk
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
Management of the risk
ʿ˜ˤ˨˜˗˜˧ˬ˥˜˦˞˜˦ˡˢ˧˦˜˚ˡ˜Ѓ˖˔ˡ˧˔˦˧˛˘ˠ˔˝ˢ˥˜˧ˬˢ˙˧˛˘ʶˢˠˣ˔ˡˬϠ˦˔˦˦˘˧˦˔˥˘˜ˡ˩˘˦˧ˠ˘ˡ˧˦˜ˡˤ˨ˢ˧˘˗˦˘˖˨˥˜˧˜˘˦˧˛˔˧˔˥˘
readily realisable. During the year 2024 the Company did not renew the unsecured sterling loan facility with SMBC Bank
International plc. totalling £20,000,000; the facility expired in February 2024.
The Board gives guidance to Janus Henderson as to the maximum amounts of the Company’s resources that should
be invested in any one company.
The policy is that the Company should generally remain fully invested and that short-term borrowings be used to
manage short-term cash requirements.
Liquidity risk exposure
The remaining contractual maturities of the financial liabilities at 31 October, based on the earliest date on which
payment could be required was as follows:
2024 2023
Due
within
three
months
£’000
Due between
three
months
and
one
year
£’000
Due after
one
year
£’000
Due within
three
months
£’000
Due between
three
months and
one year
£’000
Due after
one year
£’000
Unsecured loan notes
920 2,384 169,356 920 2,404 174,164
Other payables
2,315 – – 17,006 – –
3,235 2,384 169,356 17,926 2,404 174,164
Strategic report Governance
Additional
information
85
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
16 Risk management policies and procedures continued
16.3 Credit and counterparty risk
The failure of the counterparty to a transaction to discharge its obligations under that transaction could result in the
Company suffering a loss.
Management of the risk
Credit risk is managed as follows:
• investment transactions are carried out with a large number of approved brokers, whose credit-standard is reviewed
periodically by Janus Henderson, and limits are set on the amount that may be due from any one broker; and
• cash at bank is held only with reputable banks with high quality external credit ratings and is subject to continual review.
Outstanding settlements are subject to credit risk. Credit risk is mitigated by the Company through its decision to
transact with counterparties of high credit quality. The Company only buys and sells investments through brokers which
are approved counterparties, thus minimising the risk of default through settlement. The credit ratings of brokers are
reviewed periodically by Janus Henderson, and limits are set on the amount that may be due from any one broker.
The Company is exposed to credit risk through the use of banks for its cash position. Bankruptcy or insolvency of banks
may cause the Company’s rights with respect to cash held by banks to be delayed or limited. The Company’s cash
balances are held by its custodian, BNP Paribas SA as banker. The Directors believe the counterparty is of high credit
quality and, therefore, the Company has minimal exposure to credit risk.
ˁˢˡ˘ˢ˙˧˛˘ʶˢˠˣ˔ˡˬϠ˦Ѓˡ˔ˡ˖˜˔˟˔˦˦˘˧˦˔˥˘ˣ˔˦˧˗˨˘˔ˡ˗˧˛˘˘˫ˣ˘˖˧˘˗˖˥˘˗˜˧˟ˢ˦˦˪˜˧˛˜ˡʼʹ˅ˆʬ˙ˢ˥˖˔˟˖˨˟˔˧˜ˡ˚
impairment on such balances is immaterial.
Credit risk exposure
The table below summarises the maximum credit risk exposure of the Company as at year end.
2024
£’000
2023
£’000
Fixed interest securities
– –
Current asset investment
33,549 13,116
Cash and cash equivalents
66,689 14,525
Receivables:
Other receivables
4,646 19,001
104,884 46,642
16.4 Fair values of financial assets and financial liabilities
ʹ˜ˡ˔ˡ˖˜˔˟˔˦˦˘˧˦˔ˡ˗Ѓˡ˔ˡ˖˜˔˟˟˜˔˕˜˟˜˧˜˘˦˔˥˘˘˜˧˛˘˥˖˔˥˥˜˘˗˜ˡ˧˛˘˦˧˔˧˘ˠ˘ˡ˧ˢ˙Ѓˡ˔ˡ˖˜˔˟ˣˢ˦˜˧˜ˢˡ˔˧˧˛˘˜˥˙˔˜˥˩˔˟˨˘
ʛ˜ˡ˩˘˦˧ˠ˘ˡ˧˦ʜˢ˥˧˛˘˦˧˔˧˘ˠ˘ˡ˧ˢ˙Ѓˡ˔ˡ˖˜˔˟ˣˢ˦˜˧˜ˢˡ˔ˠˢ˨ˡ˧˜˦˔˥˘˔˦ˢˡ˔˕˟˘˔ˣˣ˥ˢ˫˜ˠ˔˧˜ˢˡˢ˙˙˔˜˥˩˔˟˨˘ʛ˗˨˘˙˥ˢˠ
brokers, dividend and interest receivable, due to brokers, accruals, cash at bank, bank overdrafts).
With effect from 31 December 2023, the Board decided to include the fair value adjustment within a separate fair value
daily NAV. The fair value of the loan notes has been estimated to be £92,618,000 (2023: £88,985,000) and is categorised
as Level 3 in the fair value hierarchy as described below.
The fair value of the unsecured loan notes is calculated using a discount rate which reflects the yield of a UK gilt of
similar maturity plus a suitable credit spread. The fair value of the Euro unsecured loan notes is calculated using a
discount rate which reflects the yield of a Euro swap of similar maturity plus a suitable credit spread.
86
The Bankers Investment Trust PLC Annual Report 2024
Notes to the financial statements continued
16 Risk management policies and procedures continued
16.5 Fair value hierarchy disclosures
The table below sets out the fair value measurements using IFRS 13 fair value hierarchy.
Categorisation within the hierarchy has been determined on the basis of the lowest level of input that is significant to
the fair value measurement of the relevant asset as follows:
Level 1 – valued using quoted prices in active markets for identical assets.
Level 2 – valued by reference to valuation techniques using observable inputs other than quoted prices included
within Level 1.
Level 3 – valued by reference to valuation techniques using inputs that are not based on observable market data.
2024 2023
Level
1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Equity investments
1,455,333 – – 1,455,333 1,428,787 – – 1,428,787
Fixed interest investments
– – – – ––––
Current asset investments
33,549 – – 33,549 13,116 – – 13,116
1,488,882 – – 1,488,882 1,441,903 – – 1,441,903
16.6 Capital management policies and procedures
The Company’s capital management objectives are:
• to ensure that it will be able to continue as a going concern; and
• to generate total return to its equity shareholders in accordance with its investment objectives through an
appropriate balance of equity capital and debt.
The Company’s capital at 31 October 2024 comprised its equity share capital, reserves and debt that are shown in the
statement of financial position at a total of £1,557,902,000 (2023: £1,458,423,000).
The Board, with the assistance of Janus Henderson, monitors and reviews the broad structure of the Company’s capital
on an ongoing basis. This review includes:
• the desirability to buy back equity shares for cancellation or to be held in treasury, which takes account of the
difference between the net asset value per share and the share price (i.e. the level of share price discount or premium);
• the desirability for new issues of equity shares; and
• the extent to which revenue in excess of that which is required to be distributed should be retained.
The Company’s policies and processes for managing capital are unchanged from the preceding accounting period.
The Company is subject to several externally imposed capital requirements:
• as a public company, the Company has a minimum share capital of £50,000;
• in order to be able to pay dividends out of profits available for distribution by way of dividends, the Company has to
be able to meet one of the capital restriction tests imposed on investment companies by law and its Articles of
Association; and
• the terms of the loan notes have various covenants which must also be observed, including that total indebtedness
shall not exceed 40% of net asset value and that the net asset value shall not be less than £500 million.
The Company has complied with these throughout the year.
Strategic report Governance
Additional
information
87
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
17 Net asset value per ordinary share
The net asset value per ordinary share is based on net assets attributable to ordinary shares of £1,434,146,000 (2023:
£1,333,523,000) and on 1,145,890,870 ordinary shares in issue at 31 October 2024 (2023: 1,234,232,277). The Company has
no securities in issue that could dilute the net asset value per ordinary share.
The movements during the year in net assets attributable to the ordinary shares were as follows:
2024
£’000
2023
£’000
Net assets attributable to ordinary shares at start of year
1,333,523 1,360,666
Total net profit on ordinary activities after taxation
229,950 64,557
Buyback of ordinary shares
(97,331) (60,484)
Dividends paid
(31,996) (31,216)
Net assets attributable to ordinary shares at end of year
1,434,146 1,333,523
18 Called up share capital
Number of
shares
held in
treasury
Number of
shares
entitled
to
dividend
Total number
of
shares
Nominal value
of
shares
in
issue
£’000
Ordinary shares
At 1 November 2023
80,870,553 1,234,232,277 1,315,102,830 32,878
Buyback of ordinary shares
88,341,407 (88,341,407) – –
At 31 October 2024
169,211,960 1,145,890,870 1,315,102,830 32,878
During the year, no new shares were issued and 88,341,407 shares were bought back in to treasury for a net payment
of £97,331,000.
Number of
shares held in
treasury
Number of
shares entitled
to dividend
Total number
of shares
Nominal value
of shares
in issue
£’000
Ordinary shares
At 1 November 2022
20,251,624 1,294,851,206 1,315,102,830 32,878
Buyback of ordinary shares
60,618,929 (60,618,929) – –
At 31 October 2023
80,870,553 1,234,232,277 1,315,102,830 32,878
In the year ended 31 October 2023, no new shares were issued and 60,618,929 shares were bought back in to treasury
for a net payment of £60,484,000.
88
The Bankers Investment Trust PLC Annual Report 2024
Notes to the financial statements continued
19 Capital redemption and other capital reserves
Capital
redemption
reserve
£’000
Capital reserve
arising
on
investments
sold
£’000
Capital reserve
arising
on
revaluation
of
investments
held
£’000
Total
other
capital
reserves
£’000
At 1 November 2023
12,489 933,252 151,596 1,084,848
Transfer on disposal of assets
– 25,112 (25,112) –
Net gains on investments
– 36,509 167,729 204,238
Net (losses)/gains on foreign exchange
– (14) 1,170 1,156
Buyback of shares into treasury
– (97,331) – (97,331)
Expenses and finance costs allocated
to capital
– (6,722) – (6,722)
At 31 October 2024
12,489 890,806 295,383 1,186,189
Capital
redemption
reserve
£’000
Capital reserve
arising on
investments sold
£’000
Capital reserve
arising on
revaluation of
investments held
£’000
Total
other capital
reserves
£’000
At 1 November 2022
12,489 852,429 262,914 1,115,343
Transfer on disposal of assets
– 77,670 (77,670) –
Net gains/(losses) on investments
– 70,943 (33,090) 37,853
Net gains/(losses) on foreign exchange
– 81 (558) (477)
Buyback of shares into treasury
– (60,484) – (60,484)
Expenses and finance costs allocated
to capital
– (7,387) – (7,387)
At 31 October 2023
12,489 933,252 151,596 1,084,848
20 Revenue reserve
2024
£’000
2023
£’000
At start of year
43,511 40,159
Net revenue profit after tax for the year
31,278 34,568
Dividends paid
(31,996) (31,216)
At end of year
42,793 43,511
21 Reconciliation of liabilities arising from financing activities
ˇ˛˘˙ˢ˟˟ˢ˪˜ˡ˚˧˔˕˟˘˦˛ˢ˪˦˧˛˘ˠˢ˩˘ˠ˘ˡ˧˦˗˨˥˜ˡ˚˧˛˘ˣ˘˥˜ˢ˗ˢ˙Ѓˡ˔ˡ˖˜˔˟˟˜˔˕˜˟˜˧˜˘˦˜ˡ˧˛˘˦˧˔˧˘ˠ˘ˡ˧ˢ˙Ѓˡ˔ˡ˖˜˔˟ˣˢ˦˜˧˜ˢˡʭ
Non-cash changes
At 1 November
2023
£’000
Cash flows
£’000
Amortisation
of
issue costs
£’000
Foreign
exchange
£’000
At 31 October
2024
£’000
Financing activities
Financing liabilities
124,900 – 26 (1,170) 123,756
Total liabilities from financing activities
124,900 – 26 (1,170) 123,756
Non-cash changes
At 1 November
2022
£’000
Cash flows
£’000
Amortisation
of issue costs
£’000
Foreign
exchange
£’000
At 31 October
2023
£’000
Financing activities
Financing liabilities
139,280 (15,000) 62 558 124,900
Total liabilities from financing activities
139,280 (15,000) 62 558 124,900
Strategic report Governance
Additional
information
89
The Bankers Investment Trust PLC Annual Report 2024
Financial
statements
Notes to the financial statements continued
22 Contingent Liabilities, Guarantees and Financial Commitments
At 31 October 2024 there were no contingent liabilities, guarantees or financial commitments (2023: £nil).
23 Transactions with the Manager and other related parties
Under the terms of an agreement effective from 22 July 2014 and most recently revised in November 2024 (see
page 29) the Company appointed Janus Henderson to provide investment management and accounting,
administrative and secretarial services. Janus Henderson has contracted with BNP Paribas SA to provide accounting
and administration services.
Details of the management fee arrangements for these services are given in the Business Model on page 29.
The management fee is calculated on a tiered basis at the rate of 0.45% per annum on the first £750 million of net assets,
0.40% per annum on net assets in excess of £750 million up to £1.5 billion and 0.35% of net assets in excess of £1.5 billion.
For the purpose of the fee calculation, the net assets are as at the last day of the quarter immediately preceding the
quarter in respect of which the calculation is made. The total of the management fees paid or payable to
Janus Henderson under this agreement in respect of the year ended 31 October 2024 were £6,190,000 (2023: £5,966,000).
The amount outstanding at 31 October 2024 was £512,000 (2023: £484,000).
In addition to the above services, Janus Henderson facilitates marketing activities with third parties which are
recharged to the Company. The total fees paid or payable for these services for the year ended 31 October 2024
amounted to £182,000 (2023: £68,000), of which £49,000 was outstanding at 31 October 2024 (2023: £53,000).
Janus Henderson also provides marketing services, there is no separate charge for these services.
24 Subsequent Events
There have been no subsequent events since the end of the Company’s financial year on 31 October 2024.
90
The Bankers Investment Trust PLC Annual Report 2024
Additional
information
In this section
92 Glossary
93 Alternative Performance Measures
95 General Shareholder Information
96 Distribution of Assets, Rates of Exchange,
Historical Record
97 Corporate Information
Strategic report Governance
Financial
statements
The Bankers Investment Trust PLC Annual Report 2024
91
Additional
information
The Bankers Investment Trust PLC Annual Report 2024
91
Glossary
Alternative Investment Fund
Managers Directive (‘AIFMD’)
Agreed by the European Parliament and the Council
of the European Union and adopted into UK legislation,
the AIFMD classifies certain investment vehicles, including
investment companies, as Alternative Investment Funds
(‘AIFs’) and requires the Company to appoint an
Alternative Investment Fund Manager (‘AIFM’) and
Depositary to manage and oversee the operations of the
investment vehicle. The Board of the Company retains
responsibility for strategy, operations and compliance and
the Directors retain a fiduciary duty to shareholders.
Association of Investment Companies (‘AIC’)
The Company is a member of the AIC which is the trade
body for investment companies and represents the
industry in relation to various matters which impact
the regulation of such entities.
Custodian
The Custodian is responsible for ensuring the safe custody
of the Company’s assets and that all transactions in the
underlying holdings are transacted in an accurate and
timely manner.
Depositary
From 22 July 2014 AIFs were required to appoint a Depositary
which has responsibility for overseeing the operations of
the Company, including safekeeping, cash monitoring
and verification of ownership and record keeping. The
Depositary is strictly liable for the loss of any investments
or other assets in its custody unless it has notified that it
has discharged its liability in certain markets. The
Depositary has confirmed that it has not discharged
liability in relation to any of the Company’s assets.
Derivative
A contract between two or more parties in relation to an
underlying security. The value of a derivative will fluctuate
in accordance with the value of the security and is a form
of gearing as the fluctuations in value are usually greater
than the fluctuations in the underlying security’s value.
Examples of derivatives are put and call options, swap
contracts, futures and contracts for difference.
Dividend dates
When declared or recommended, each dividend has
three key dates applied to it. The payment date is the date
on which shareholders are to receive their dividend either
by BACS transfer or by receipt of a dividend cheque. The
record date applied to the dividend is used as a cut-off
for the Company’s Registrars to know which shareholders
should be paid a dividend. Only shareholders on the
register of members at the close of business on the record
date will receive the dividend. The ex-dividend date is the
business day before the record date and is the date upon
which the Company’s net asset value per share and share
price is to be disclosed ex-dividend.
Dividend growth
The amount by which the Company’s annual dividend has
increased compared to the previous year, expressed as a
percentage of the previous annual dividend.
Gearing
Gearing means borrowing money to buy assets with the
expectation that the return on investments bought exceeds
the interest cost of the borrowings. The gearing percentage
reflects the amount of borrowings (e.g. bank loans, overdrafts
and debt securities) the Company has used to invest in the
market and is calculated by taking the difference between
non-current asset investments (see note 11) and equity
shareholders’ funds (see statement of financial position)
dividing by equity shareholders’ funds and multiplying by 100.
The Company can use synthetic gearing through derivatives.
None were used in the year under review.
Investment trusts
Investment trusts are public limited companies, listed on
the London Stock Exchange, which provide shareholders
with a professionally managed portfolio of investments.
Investment trusts are exempt from tax on the capital
gains arising on their investments subject to meeting
certain criteria. Income, net of expenses and tax, is
substantially distributed to shareholders. Investment trusts
are also known as investment companies although the
tax legislation retains the reference to investment trusts.
Liquidity
In the context of the liquidity of shares in the stock market,
this refers to the availability of buyers in the market for the
share in question. Where the market in a particular share
is described as liquid that share is in demand and holders
wishing to sell their shares should find ready buyers.
Conversely, where the market in a share is illiquid the
difficulty of finding a buyer tends to depress the price
that might be negotiated for a sale.
Market capitalisation (‘market cap’)
The market value of a company calculated by multiplying
the mid-market price per share by the number of shares
in issue.
Treasury shares
Shares repurchased by the Company but not cancelled.
92
The Bankers Investment Trust PLC Annual Report 2024
Alternative Performance Measures
The Company uses the following Alternative Performance Measures (‘APMs’) throughout the Annual Report, financial
statements and notes to the financial statements. The APMs are reconciled to the financial statements through the
narrative below. The Board believes that each of the APMs, which are typically used within the investment trust sector,
provide additional useful information to shareholders to help assess the Company’s performance against its peer group.
Capital Return per Ordinary Share
The capital return per ordinary share is the capital profit/(loss) for the year (see Income Statement) divided by the
weighted average number of ordinary shares in issue during the year (see note 9 on page 80).
Discount or premium
The amount by which the market price per share of an investment trust is either higher (premium) or lower (discount)
than the NAV per share, expressed as a percentage of the NAV per ordinary share.
31 October
2024
31 October
2023
Net asset value with debt at fair value per ordinary share (pence)
(A) 127.9 111.0
Share price per share (pence)
(B) 110.8 93.5
(Discount) or Premium (C = (B-A)/A) (%)
(C) (13.4) (15.8)
Gearing/(net cash)
Gearing represents the excess amount above shareholders’ funds of total investments, expressed as a percentage
of the shareholders’ funds. If the amount calculated is negative, this is a ‘net cash’ position and no gearing.
2024 2023
Investments held at fair value through profit or loss (page 81) (£’000)
(A) 1,455,333 1,428,787
Net assets (page 71) (£’000)
(B) 1,434,146 1,333,523
Gearing/(net cash) (C = (A/B) – 1) (%)
(C) 1.5 7.1
Net asset value (‘NAV ‘) with debt at par and fair value
2024
£’000
2023
£’000
Investments held at fair value through profit or loss (see note 11)
1,455,333 1,428,787
Current assets investments (see note 12)
33,549 13,116
Current assets other receivables (see note 13)
4,646 19,001
Cash and cash equivalents
66,689 14,525
Current liabilities (see note 14)
(2,315) (17,006)
Non-current liabilities (see note 15)
(123,756) (124,900)
NAV with debt at par (A)
1,434,146 1,333,523
Less: fair value of unsecured loan notes (see note 16.3)
(92,618) (88,985)
Add back: amortised cost of unsecured loan notes
123,756 124,900
NAV with debt at fair value (B)
1,465,284 1,369,438
Ordinary shares in issue (see note 18) (C)
1,145,890,870 1,234,232,277
NAV per ordinary share with debt at par (A/C x 100) (p)
125.2 108.0
NAV per ordinary share with debt at fair value (B/C x 100) (p)
127.9 111.0
The aggregate NAV is also referred to as Total Equity in the Statement of Financial Position. The NAV per ordinary share is
published daily and the year end NAV can be found on page 71 and further information is available on page 88 in note
17 within the notes to the financial statements.
In the prior year, following the repayment of the debenture on 31 October 2023, a single NAV was published with debt at
par, and the fair value of the loan notes was disclosed to comply with the accounting disclosures only. With effect from
31 December 2023 the board reassessed this and decided to include the fair value adjustment to the loan notes within
a separate fair value daily NAV. The prior year financial statements also disclosed what this NAV with debt at fair value
would have been as at 31 October 2023 and has been included in the table above.
Strategic report Governance
Financial
statements
The Bankers Investment Trust PLC Annual Report 2024
93
Additional
information
Ongoing charge
The ongoing charge has been calculated in accordance with guidance issued by the AIC as the total investment
management fees and administrative expenses and expressed as a percentage of the average daily net asset values
throughout the year.
2024
£’000
2023
£’000
Management fee (note 5)
6,190 5,966
Other administrative expenses (note 6)
1,329 970
Less: non-recurring expenses
1
(77) 137
Ongoing charge
7,442 7,073
Average net assets
2
1,465,773 1,413,254
Ongoing charge ratio
0.51% 0.50%
1 The prior year amount is an add back of £137,000 as this included adding back a reversal of legal fees that had previously been deducted as non-
recurring expenses in the ongoing charge calculation
2 Calculated using the average daily net asset value
Revenue return per share
The revenue return per share is the revenue return for the year (see statement of comprehensive income) divided
by the weighted average number of ordinary shares in issue during the year (see note 9 on page 80).
Total return
The return on the share price or NAV with debt at fair value taking into account both the rise and fall of NAVs/share
prices and dividends paid to shareholders. Any dividends received by a shareholder are assumed to have been
reinvested in either additional shares (for share price total return) or the Company’s assets (for NAV with debt at fair
value total return). Dividends paid and payable are set out in note 10 on page 80.
NAV per
share Share price
NAV/share price per share at 31 October 2023 (pence)
111.0 93.5
NAV/share price per share at 31 October 2024 (pence)
127.9 110.8
Change in the year (%)
15.2 18.5
Impact of dividends reinvested (%)
2.2 2.5
Total return for the year (%)
21.1 21.4
Yield
The yield is the annual dividend expressed as a percentage of the year end share price.
31 October
2024
31 October
2023
Annual dividend (pence)
(A) 2.688 2.56
Share price (pence)
(B) 110.80 93.5
Yield (C=A/B) (%)
(C) 2.4 2.7
Alternative Performance Measures continued
94
The Bankers Investment Trust PLC Annual Report 2024
General Shareholder Information
AIFMD disclosures
In accordance with the Alternative Investment Fund
Managers Directive (‘AIFMD’), information in relation
to the Company’s leverage and remuneration of
Janus Henderson, as the Company’s Alternative Investment
Fund Manager (‘AIFM’) are required to be made available to
investors. These disclosures, including those on the AIFM’s
remuneration policy, are contained in a separate document
called ‘AIFMD Disclosure’ which can be found on the
Company’s website www.bankersinvestmenttrust.com.
BACS
Dividends can be paid to shareholders by means of BACS
(Bankers’ Automated Clearing Services); mandate forms for
this purpose are available from the UK Registrar, Equiniti Limited.
Alternatively, shareholders can write to the UK Registrar (the
address is given on page 97) to give their instructions; these
must include the bank account number, the bank account
title and the sort code of the bank to which payments are to
be made.
Shareholders on the register in New Zealand can have their
dividends paid in New Zealand dollars by writing to the New
Zealand Registrar, Computershare Investor Services Limited
(the address is given on page 97).
Common Reporting Standard
Tax legislation under the Organisation for Economic
Co-operation and Development Common Reporting
Standard for Automatic Exchange of Financial Account
Information. The legislation requires the Company to
provide personal information to HMRC on certain investors
who purchase shares in investment trusts. This information
is provided annually to the local tax authority of the tax
residencies of a number of non-UK based certificated
shareholders and corporate entities.
Equality Act 2010
This Annual Report and other documents issued by the
Company are available from the corporate secretary and
can be provided in alternative formats, including Braille or
larger type, as appropriate. For deaf and speech-impaired
customers, we welcome calls via Relay UK. Please see
www.relayuk.bt.com for more information. Alternatively,
if you prefer to go through a ‘typetalk’ operator (provided
by the Royal National Institute for Deaf People), dial 18001
followed by the number you wish to dial.
Foreign Account Tax
Compliance Act (‘FATCA’)
FATCA is a United States federal law whose intent is
to enforce the requirement for United States persons
(including those living outside the US) to file yearly reports on
their non-US financial accounts. As a result of HMRC’s change
of interpretation on the meaning of shares and securities
‘regularly traded on an established securities market’,
investment trusts now need to monitor each year the trading
volume and frequency of their shares and securities to
assess whether they have financial accounts. The Company
therefore needs to make an annual assessment, before the
FATCA return is due, to determine if the shares represent
financial accounts and, where they do, needs to identify and
report US reportable accounts to HMRC, as required.
General Data Protection Regulation (‘GDPR’)
GDPR came into force on 25 May 2018. A privacy statement
can be found on the website www.janushenderson.com.
ISA
The Company intends to continue to manage its affairs in
order to qualify as an eligible investment for a stocks and
shares ISA.
Non-Mainstream Pooled Investments
(‘NMPI’) status
The Company currently conducts its affairs so that its ordinary
shares of 2.5p each can be recommended by IFAs to ordinary
retail investors in accordance with the Financial Conduct
Authority’s (‘FCA’) rules in relation to non-mainstream
investment products and intends to continue to do so for the
foreseeable future. The shares are excluded from the FCA’s
restrictions which apply to non-mainstream investment
products because they are shares in an investment trust.
Performance details/share price information
Details of the Company’s share price and NAV per share
can be found on www.bankersinvestmenttrust.com.
The Company’s NAV per share is published daily.
Shareholder details
Shareholders who hold their shares in certificated form can
check their shareholding with the Registrar (contact details
can be found on page 97).
There is now a range of shareholder information online.
You can check your holding and find practical help on
transferring shares or updating your details at
www.shareview.co.uk.
Share price listings
The market price of the Company’s ordinary shares is
published daily in the Financial Times. The Financial Times
also shows figures for the estimated NAV per share and the
discount.
The market price of the Company’s shares can also be
found in the London Stock Exchange Daily Official List.
Taxonomy Regulation
Regulation (EU) 2020/852 (‘Taxonomy Regulation’) establishes
the basis for the EU taxonomy. The EU taxonomy is a
classification system, establishing a list of environmentally
sustainable economic activities to provide companies,
investors and policymakers with appropriate definitions for
which economic activities can be considered environmentally
sustainable. In accordance with the Taxonomy Regulation, the
Company states that the investments underlying this financial
product do not take into account the EU criteria for
environmentally sustainable economic activities.
Strategic report Governance
Financial
statements
The Bankers Investment Trust PLC Annual Report 2024
95
Additional
information
Distribution of Assets and Liabilities
At 31 October 2024
Currency exposure
of net assets
Equities
£’000
Current
assets
£’000
Total
assets
£’000 %
Total
liabilities
£’000 £’000 %
Pan Europe (Europe & UK)
372,391 69,081 441,472 28.3 (126,071) 315,401 22.0
North America
721,377 637 722,014 46.3 – 722,014 50.3
Japan
197,238 24 197,262 12.6 – 197,262 13.8
Pan Asia (Pacific & China, ex Japan)
164,327 35,142 199,469 12.8 – 199,469 13.9
Total
1,455,333 104,884 1,560,217 100 (126,071) 1,434,146 100
101.5% 7.3% 108.8% (8.8%) 100.0%
Expense debtors and creditors have been allocated to sterling for the purposes of this table.
Rates of Exchange
The principal exchange rates at 31 October
2024 2023 2024 2023
US Dollar
1.29 1.21
Chinese Yuan Renminbi
9.15 8.88
Japanese Yen
195.84 183.77
New Taiwanese Dollar
41.19 39.36
Euro
1.18 1.15
Korean Won
1774.20 1638.83
Hong Kong Dollar
10.00 9.49
Swiss Franc
1.11 1.10
Australian Dollar
1.96 1.92
New Zealand Dollar
2.16 2.09
Historical Record
At 31 October
Earnings and dividends
per ordinary share Indices of growth
2
Gross
revenue
£’000
Earnings
net
1
p
Total
dividends
net
1
p
Ongoing
charge
%
Total assets
less current
liabilities
£’000
Net asset
value per
ordinary
share
p
3
Market
price per
ordinary
share
p
1
Net asset
value
Market
price per
ordinary
share
FTSE
All-Share
Index
FTSE
World
Index
Dividend
per
ordinary
share net
UK
Consumer
Price
Index
2014
20,748 1.51 1.48 0.53 693,196 60 56 100 100 100 100 100 100
2015
22,767 1.72 1.58 0.52 777,428 63 62 105 110 99 102 107 100
2016
24,916 1.75 1.70 0.52 991,544 76 69 126 123 108 129 115 101
2017
29,634 2.05 1.86 0.44 1,142,379 88 85 147 151 118 143 126 104
2018
30,547 2.08 1.97 0.50 1,126,410 87 84 145 148 111 146 133 106
2019
31,752 2.16 2.09 0.52 1,228,032 95 93 159 165 114 159 141 108
2020
26,761 1.68 2.15 0.50 1,325,803 98 98 164 174 90 163 146 109
2021
35,027 2.17 2.18 0.48 1,726,067 121 114 203 202 118 211 147 113
2022
38,208 2.34 2.33 0.50 1,484,946 105 97 177 172 111 201 157 126
2023
41,765 2.72 2.56 0.50 1,458,423 108 94 182 166 113 207 173 131
2024
38,655 2.63 2.688 0.51 1,557,902 125 111 215 197 126 256 182 134
1 Comparative figures for the year ended 31 October 2014 to 31 October 2021 have been restated due to the sub-division of each ordinary share of 25p into
10 ordinary shares of 2.5p each on 1 March 2021
2 Rebased to 100
3 NAV with debt at par
Source: Morningstar Direct, Janus Henderson
Distribution of Assets, Rates of Exchange, Historical Record
96
The Bankers Investment Trust PLC Annual Report 2024
Corporate Information
Registered office
201 Bishopsgate
London EC2M 3AE
Service providers
Alternative Investment Fund Manager
Janus Henderson Fund Management UK Limited
201 Bishopsgate
London EC2M 3AE
Corporate Secretary
Janus Henderson Secretarial Services UK Limited
201 Bishopsgate
London EC2M 3AE
Telephone: 020 7818 1818
Depositary and Custodian
BNP Paribas SA
10 Harewood Avenue
London NW1 6AA
Corporate Brokers
UK
J.P. Morgan Cazenove
25 Bank Street
Canary Wharf
London E14 5JP
Peel Hunt LLP
7th Floor
100 Liverpool St
London EC2M 2AT
New Zealand
Craigs Investment Partners Limited
Head Office
P.O Box 13155
Tauranga 3141 New Zealand
Registrar
UK
The Company’s Registrar is Equiniti Limited.
Equiniti provide a range of services to shareholders.
Extensive information including many answers to frequently
asked questions can be found online. Use the QR code to
register for FREE at www.shareview.co.uk. Equiniti’s
registered address is: Aspect House, Spencer Road,
Lancing, West Sussex, BN99 6DA.
New Zealand
Computershare Investor Services Limited
Private Bag 92119
Victoria Street West
Auckland 1142 New Zealand
Telephone: (New Zealand) (64) 09 488 8777
Independent Auditor
Ernst & Young LLP
25 Churchill Place
London E14 5EY
Financial calendar
Annual results announced January 2025
Ex dividend date 23 January 2025
Dividend record date 24 January 2025
Annual General Meeting 25 February 2025
Final dividend payable on 28 February 2025
1st interim dividend payable on 30 May 2025
Half year results announced June 2025
2nd interim dividend payable on 29 August 2025
3rd interim dividend payable on 28 November 2025
Information sources
For more information about The Bankers Investment
Trust PLC, visit the website at
www.bankersinvestmenttrust.com.
To sign up for expert insights about investment trusts,
updates from our fund managers as well as AGMs
please visit this page:
www.janushenderson.com/en-gb/investor/subscriptions
Follow the Janus Henderson Investment Trusts on
LinkedIn – Janus Henderson Investment Trusts, UK.
Investing
Shares can be purchased in the market via a stockbroker
or through share dealing platforms. They can also be held
through share plans, ISAs or pensions and links to various
providers are included on the website.
Potential investors are reminded that the value of
investments and the income from them may go down
as well as up and investors may not receive back the
full amount invested. Tax benefits may vary as a result
of statutory changes and their value depends on
individual circumstances.
97
The Bankers Investment Trust PLC Annual Report 2024
Additional
information
Financial
statementsGovernanceStrategic report
Telephone: 020 7818 1818
Email: itsecretariat@janushenderson.com
www.bankersinvestmenttrust.com
The
Bankers Investment Trust PLC Registered as an investment company
in England and Wales with registration number 00026351
Registered office
201 Bishopsgate,
London EC2M 3AE
ISIN code
GB00BN4NDR39
SEDOL number
BN4NDR3
London Stock Exchange
(TIDM) Code
BNKR
New Zealand Stock
Exchange Code
BIT
Global Intermediary
Identification Number (GIIN)
L5YVFP.99999.SL.826
Legal Entity Identifier (LEI)
213800B9YWXL3X1VMZ69
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