BIT – Annual Financial Report

LEGAL ENTITY IDENTIFIER: 213800B9YWXL3X1VMZ69




THE BANKERS INVESTMENT TRUST PLC

Annual Financial Report for the year ended 31 October 2022

This announcement contains regulated information


Performance Highlights
1
31 October 2022 31 October 2021
Net Asset Value per ordinary share
- With debt at par 105.1p 120.9p
- With debt at market value 105.0p 120.7p
Share price at year end
2
96.6p 114.0p
Dividend per share for year
3
2.328p 2.176p

31 October 2022 31 October 2021
Dividend growth 7.0% 1.0%
(Discount)/premium at year end
4
(8.1%) (5.7%)
Net gearing/(cash) at year end
5
(5.4%) (6.6%)
Ongoing Charge for year 0.50% 0.48%



Long term track record to
31 October 2022
1 year
%
3 years
%
5 years
%
10 years
%
15 years
%

Capital return
6



Net asset value
7
-13.1 11.1 20.0 124.2 108.7
Share price -15.3 4.2 13.4 123.0 120.1
FTSE World Index
8
-4.9 26.0 40.2 90.8 67.1

Total Return
9

Net Asset Value
7
-11.3 18.1 33.4 181.9 202.4
Share price -13.4 10.9 26.3 182.0 226.4
FTSE World Index
8
-2.8 34.1 56.9 155.0 168.3


Dividend increase 7.0 11.5 25.3 75.2 109.9
Consumer Price Index 11.1 16.5 21.1 30.1 53.4


1

A glossary of terms and alternative performance measures can be found in the Annual Report
2

Share price is the mid-market closing price

3 This represents the four ordinary dividends recommended or paid for the year (see the Annual Report for more details)
4 Based on the mid-market closing price with debt at par
5 Net gearing/(cash) is calculated in accordance with the gearing definition in the alternative performance measures in the Annual Report
6 Capital return excludes all dividends
7 The net asset values shown for the periods up to 15 years include debt at market value, whereas for 15 years it is shown
with debt at par value
8 For the 5, 10 and 15 years, this is a composite of the FTSE World Index and the FTSE All-Share Index
9 Total return assumes dividends reinvested

Sources: Morningstar Direct, Janus Henderson, Refinitv Datastream

CHAIR’S STATEMENT

Performance
This past year has been one of the most turbulent in recent history. Inflation has surged to levels not seen
since the 1980s and the deteriorating economic outlook has resulted in sharp falls in both bond and equity
prices. Stock picking has been challenging.

The Company’s share price has reflected these uncertain markets. The NAV total return was down 11.3%
(2021: an increase of 26.5%) underperforming the FTSE World Index on a relative basis as the index only
fell by 2.8% on a total return basis (2021: rise of 32.3%). The share price total return was down by 13.4%
(2021: an increase of 18.6%). All returns are in sterling. The principal drivers of underperformance were
the lower exposure to the US market when compared to the benchmark combined with weakness in Asian
markets as Covid continued to affect trade and travel.

The Managers’ report in the Annual Report contains detailed information together with market commentary.

The Company has successfully steered through two world wars, the Great Depression and in the past half
century the internet boom, the technology bubble and the financial crisis. These events are part of our
economic history and will no doubt be repeated. They have honed the knowledge, insight and resilience
needed to invest in periods of high volatility and economic stagnation. The Board is confident that the
Manager is well placed to navigate the current market with its global approach.

Revenue, dividends and share buy-backs
One of the Company’s key objectives is to achieve long term dividend growth in excess of the UK
Consumer Price Index figure (‘CPI’). Revenue earnings per share of 2.34p (2021: 2.17p) exceeded
expectations for the year which has enabled a greater increase in the dividend than we forecast last year.
The Board is therefore recommending a final quarterly dividend of 0.60p per share, resulting in total
dividends per share for the year of 2.328p (2021: 2.176p), an increase over last year of 7%. This will be
paid on 28 February 2023 to shareholders on the register of members at the close of business on 27
January 2023. This will be the Company’s 56th successive year of annual dividend growth.

Inflation, as measured by the CPI, was 11.1% for the year to 31 October 2022 (2021: 4.2%). Beating this
level of dividend growth was always going to be a challenge, but judged over the past 10 years, dividend
distributions are comfortably ahead of inflation.

For the current financial year, the Board expects to recommend dividend growth of at least 5%, which
would equate to a full year dividend of 2.44p per share.

Over the year the discount range of share price to asset value varied from just under par to 8.1% (2021:
discount of 5.7%). No shares were issued during the year and 18,219,870 (2021: 2,031,754) shares were
bought back and held in treasury, representing 1.5% of the Company’s share capital. We will continue to
buy-back shares to be held in treasury as appropriate. As at 16 January 2023, being the latest practicable
date, the share price was 103.8p and the discount was 8.7%.

The Board and Manager
In the half year report, I said that whilst there was no requirement to alter our long-term objectives which
had stood the test of time, there were opportunities to tighten up the ways in which the Company operates,
communicates and attracts new investors. This process continues and as the shareholder base changes
and the proportion of retail investors increases, it is incumbent upon the Board and the Manager to ensure
that the key investment narrative, the proposition and story appeal more to the wider shareholder base.

In this context shareholders will also note that in the Annual Report our purpose statement has been
updated to give a clearer statement of what the Company aspires to achieve.

We said that the search for a new non-executive Director would be completed by the year end. In the event
the Board decided to appoint two new Directors, Charlotte Valeur and Hannah Philp. Both appointments
increase the skill set and the diversity of the Board. Charlotte worked for many years in the capital markets
in Denmark and the UK and is an experienced FTSE Chair and non-executive director. She is currently
visiting professor in Governance at the University of Strathclyde and on the advisory board of the Møller
Institute at Churchill College, Cambridge. Hannah worked for Edison Investment Research and then
became director of marketing at Witan Investment Trust plc. She now sits on the board of JPMorgan Mid
Cap Investment Trust plc.

Our Manager has made various key appointments to its investment trust team. As mentioned at the half
year Mike Kerley has been appointed as Deputy Fund Manager and since the year end Jeremiah Buckley
has succeeded Gordon Mackay as the regional portfolio manager for the US portfolio.

Management fee
The management fee remains competitive, and for the year was at the rate of 0.45% per annum on net
assets up to £750 million, 0.40% per annum on net assets in excess of £750 million and 0.35% per annum
on net assets in excess of £1.5 billion. At the timing of writing, the Company had net assets of
approximately £1.4 billion.

Annual General Meeting (‘AGM’)
The Company’s AGM is scheduled to take place at 12 noon on Thursday, 23 February 2023 at the offices
of Janus Henderson Investors at 201 Bishopsgate, London EC2M 3AE and I very much look forward to
welcoming you. 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/trustslive. 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.

Outlook
The extraordinary economic policies enacted to protect populations and economies against Covid are still
unravelling and the war in Ukraine has exacerbated the supply imbalances in the food and energy markets.
It has been some considerable time since interest rates have risen as quickly as they have this year and
the effects of moving from near zero to a peak, currently forecast around 4-5% in the UK, will undoubtedly
cause real pain for many. Share prices have reacted to corrective actions and may be discounting a slow-
down or a recession. We have faith in our regional portfolio managers to invest in companies that are both
able to withstand more difficult times ahead and well placed to prosper as economies recover.


Simon Miller
Chair
18 January 2023

FUND MANAGER’S REPORT

It has been another very eventful year. Exuberance in markets at the start of our financial year soon
subsided as inflationary pressures rose, followed by central banks scrambling to raise interest rates.
Latterly a more sombre mood descended on investors, fearful of the impact of a possible global recession
on share prices.

The year started well with Covid cases declining and economies opening up as restrictions on movement
were steadily lifted. Economic activity picked up pace and this boosted investor sentiment, with most stock
markets reaching new highs in late December. Behind the increasing activity, bottlenecks in supplies and
limited transportation led to goods price inflation increasing across a multitude of different items. As
economies opened up, consumers started spending the savings they had accumulated during the two
years of lockdown. Furloughed employees were reabsorbed into the workforce and the increasing activity
created new jobs that were hard to fill. By the end of January inflation in the US was already 7.5%; the
highest level since 1982.

The Russian invasion of Ukraine unfolded slowly, as troops built up on the border before crossing in
multiple places on 24 February 2022. The international response to the war was swift, with trade and
financial sanctions imposed on Russia. The resulting impact on energy and food prices was profound. We
had not anticipated a full invasion of Ukraine and the portfolio was not positioned for the subsequent
increase in gas and fuel prices. We have been trying to catch up with the benchmark index since March
when the US Federal Reserve decided to increase interest rates for the first time since 2018. The pressure
on goods prices was a global phenomenon as tight supply and labour shortages were compounded by
input price inflation, particularly energy costs. The global response from central banks was to increase
interest rates, but they were too late to take the ‘punch bowl away from the party’, and all year their actions
have struggled to result in the desired impact of suppressing aggregate demand.

A direct consequence of US interest rates rising earlier and quicker than most countries was a resurgence
in the strength of the US dollar compared to most major currencies. Other factors such as the flight of
capital to the safer haven of the US further compounded the move. Markets inflicted a harsh lesson on the
UK in September as Liz Truss’ new government enacted a naive set of economic policies, forcing sterling
almost to parity with the US dollar. That government did not last long and by the end of our financial year
sterling had recovered a little but still fell in value by 16% against the US dollar over the year.

This year has been one of the most challenging against the benchmark index, given that over two thirds
of the index is US listed, benefitting from the strength of the US dollar. The underperformance of the
portfolio by 8.5% was principally down to the underweight exposure to the US market compared to the
benchmark. But if the portfolio were rebalanced, it would be challenging to deliver the required level of
dividends from the portfolio given the low level of yield and high valuations of the US stocks. The US
economy was better shielded from rising energy costs compared to Europe and Asia as energies are
priced in US dollars and the US is largely self-sufficient in both oil and food supply. Other contributory
factors behind the disappointing year were the overweight exposure to Asia, and China in particular,
combined with the low exposure to oil stocks in the portfolio.

Our fundamental outlook for oil is a forecast of declining demand as governments, supported by consumer
demand, impose measures to mitigate climate change. Furthermore, oil company returns on invested
capital are declining as they invest in non-carbon generating assets which tend to be much lower return
than traditional oil fields. This long-term view proved wrong this year as the price of gas and oil rose
dramatically following Russian supplies being removed from Western Europe. The price of oil has fallen
back recently but gas prices could remain elevated for some years to come. However, our long-term view
that carbon-based energy will be supplanted by wind, solar and other greener energies has been
reinforced by the volatility and uncertainty of supply of carbon-based energies as illustrated this year by
the war in Ukraine.

Sharply increasing interest rates have had a further impact on the valuations of equities. A growth style of
investing benefitted from near zero interest rates in recent years because low discount rates on future
earnings resulted in elevated valuations. Value investing has benefitted this year, helped by the energy
sector and financials, the latter supported by growing returns on cash following the increase in interest
rates. The regional portfolios are more growth orientated in North America, Europe and Japan. All three
struggled during the year with this changing dynamic and underperformed their regional benchmarks, but
it was most profound in North America. The three-year returns from these regions remain positive.

Underperformance in the UK was exclusively down to a lack of exposure to oil companies BP and Shell in
the energy sector, while China struggled from continuing strict Covid lockdowns impacting the consumer
related stocks in the portfolio. Only Asia Pacific (ex Japan and China) outperformed its benchmark, as
exposure to Australian resource stocks and financials helped the portfolio be more resilient. However, all
the portfolios fell in value over the year as fears of a recession, created by rapidly rising interest rates,
dampened investor sentiment.

Regional portfolio managers
In the interim report we announced that Mike Kerley would support me as deputy fund manager and that
Sat Duhra would in turn co-manage the Asia Pacific portfolio with Mike. We have also reviewed the North
America portfolio management and decided to change manager by appointing Jeremiah Buckley,
replacing Gordon Mackay. Gordon has had a fine record since taking over the portfolio in 2019 but we feel
that an overall investment style that is more balanced between growth and value is likely to perform better
in the coming years. I would like to thank Gordon for his hard work and commitment to the investment
team. Our new North America portfolio manager Jeremiah Buckley joined Janus Henderson in 1998 and
is based in Denver, where Janus Henderson employs over 40 analysts covering the North American
market. The portfolio was transitioned in mid-December and it has retained a similar exposure to growth
factors such as forward earnings growth while exhibiting an increased exposure to lower price to earnings
and higher dividend yielding companies. I look forward to working with Jeremiah in the coming year.

Environmental, social and governance factors (‘ESG’)
As reported last year, ESG considerations are integrated into our investment decision-making and
ownership processes. We do not exclude sectors or stocks purely for ESG reasons, as we believe this will
not lead to improvements in their actions. Our preferred route is through engagement with company
management to encourage change and investment in safer or more environmentally friendly processes
and in societal and governance improvements. A sample of some of the engagement that Janus
Henderson conducted on the Company’s behalf last year is listed in the Annual Report. The collection of
data relating to ESG factors is still developing and companies are improving the quality and scope of this
data. Our investment teams consider a wide range of ESG information alongside financial measures when
deciding what investment changes to make within the portfolio.

Income
Growth in portfolio income led to revenue earnings increasing by 8% over the year. Companies generally
increased dividends on the back of better results while we also benefitted from the weakness of sterling
when translating back US dollar dividends. The helpful tailwind from weak sterling should continue in the
current year. There were fewer special dividends, as most companies that suspended dividends during
the Covid pandemic returned to normal regular payments. It is difficult to predict what effect higher levels
of inflation will have on dividends. The expected recession should be shallower than past recessions while
many high-quality companies should benefit from reduced competition or their ability to pass on higher
pricing.

Asset allocation and gearing
The issuance of the long-term loan notes in 2021 is now looking very timely as interest rates today for
comparable securities are now approximately twice as high. The Company’s £15 million 8% debenture
stock is due to be repaid at the end of this financial year which will reduce the Company’s overall average
borrowing cost to 2.7%. The next loan stock is not due for repayment until 2035. There is sufficient cash
on deposit to repay the 8% debenture and we do not currently see the need to raise further loan stock.
The net gearing at the end of the year was 5.4%. However, this figure fluctuated through the year as
investments were sold in the UK and Europe. The UK stock market showed marked resilience during the
year and we used the relative strength to direct more investment into other regions.

Outlook
The outlook appears bleak if we only read the news headlines. A well flagged recession in Europe, the UK
and possibly the US is predicted. This may be combined with increasing inflation and interest rates rising
further. Central banks are undoubtedly talking tough to try to influence consumers into curtailing spending
and thus reduce both inflation and the likely peak in interest rates. Underlying data is clearly pointing to
inflation peaking soon and it is conceivable that interest rates, certainly in Europe, will get cut before the
year end. Inflation is by no means a negative for stock prices, with good companies taking opportunities
to prosper.

The US stock market has led the way relative to the rest of the world in nine of the last ten years. This
relentless performance has resulted in over 70% of the FTSE World index being represented by the US
market. For many decades, the Company’s philosophy of diversification, investing across the globe and
focusing on both capital and income, has benefitted our investors. The growth investment style, so
successful in the last decade, has now started to unwind. We are striving for an increased exposure to
value stocks within the portfolio, which should help the income generated by the portfolio and reduce
exposure to expensive growth stocks that may continue to come under pressure as interest rates stay
elevated. There will certainly be more challenges for investors in the coming year but it will also not take
much good news to lift the current downbeat mood.


Alex Crooke
Fund Manager
18 January 2023

LARGEST INVESTEMENTS at 31 October 2022



Rank
2022
Rank
2021


Company Country
Valuation
2021
£’000
Purchases
£’000

Sales
proceeds
£’000
Appreciation/
(depreciation)
£’000
Valuation
2022
£’000
1 5 ADP US 29,085 2,290 – 8,791 40,166
2 # Berkshire Hathaway US – 32,323 – 959 33,282
3 # Oracle US – 24,963 – 4,830 29,793
4 21 Roper Technologies US 18,630 9,620 – 748 28,998
5 2 American Express US 34,616 – (5,685) (11) 28,920
6 4 CME US 30,852 – – (1,990) 28,862
7 1 Microsoft US 46,870 – (10,855) (7,266) 28,749
8 # The Coca-Cola Company US – 25,960 – 598 26,558
9 13 Visa US 22,418 – – 3,695 26,113
10 9 Otis Worldwide US 25,547 5,047 (6,142) 1,595 26,047
11 20 Zoetis US 19,578 6,686 – (3,265) 22,999
12 17 MasterCard US 21,732 – (2,848) 3,042 21,926
13 # Progressive Corporation US – 21,207 – 664 21,871
14 8 Intuit US 26,526 – – (4,960) 21,566
15 # Thermo Fisher Scientific US 14,326 7,129 – (316) 21,139
16 10 Intercontinental
Exchange
US 25,072 – – (4,462) 20,610
17 16 AstraZeneca UK 21,880 – (5,074) 2,851 19,657
18 14 Sherwin-Williams US 22,082 – – (3,381) 18,701
19 11 Union Pacific US 24,456 2,967 (8,680) (726) 18,017
20 6 American Tower US 28,797 – (7,393) (4,146) 17,258
21 7 Home Depot US 27,220 – (8,728) (1,457) 17,035
22 19 Diageo UK 19,733 – (2,784) (23) 16,926
23 3 Estée Lauder US 31,924 1,252 (11,038) (5,895) 16,243
24 # TotalEnergies France 9,791 2,745 – 3,442 15,978
25 # Nestlé Switzerland 13,607 3,009 (578) (345) 15,693


------------ ----------- ----------- ----------- -----------

514,742 145,198 (69,805) (7,028) 583,107

======= ====== ====== ====== ======
All securities are equity investments
# Not in the top 25 last year
Convertibles and all classes of equity in any one company are treated as one investment


CHANGES IN INVESTMENTS at 31 October 2022



Valuation
2021
£’000

Purchases
£’000
Sales
proceeds
£’000
Appreciation/
(depreciation)
£’000
Valuation
2022
£’000
UK 305,922 15,891 (46,773) (26,677) 248,363
Europe (ex UK) 318,859 110,564 (139,445) (46,191) 243,787
North America 599,315 139,442 (139,533) (43,310) 555,914
Japan 199,230 62,819 (58,247) (27,508) 176,294
Pacific (ex Japan and China) 169,272 52,259 (56,774) (25,548) 139,209
China 99,571 38,686 (36,182) (31,914) 70,161

-------------- -------------- -------------- -------------- --------------

1,692,169 419,661 (476,954) (201,148) 1,433,728

======== ====== ======= ======= ========

MANAGING OUR RISKS
The Board, with the assistance of Janus Henderson, has carried out a robust assessment of the principal risks
and uncertainties including emerging risks facing the Company 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 put in place 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 that are considered to be
of significance are included in the Company’s risk register together with any mitigating actions required.

The Board pro-actively monitors all of 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 in the Annual Report. 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 the Annual Report.

The Board’s policy on risk management has not materially changed during the course of the reporting period
and up to the date of the Annual 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 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 the global Covid pandemic and
other health emergencies are now considered within
Portfolio and Market Risks, a grouping which has
been extended to cover 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.







↑


The Fund Manager seeks to maintain a
diversified portfolio to mitigate against this
risk. The Board regularly reviews the
portfolio, investment activity and
performance.

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.

Financial risks

By its nature as an investment trust, the Company’s
business activities are exposed to market risk
(including market price risk, currency risk and
interest rate risk), liquidity risk and 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 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 in the Annual Report.


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.




↔


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 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 in the Annual Report for
further details.

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 considered that certain characteristics of the Company’s business model and strategy were 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 to take advantage of recovering markets.

Also relevant were a number of aspects of the Company’s operational arrangements:

• 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 £15 million 8% debenture stock 2023, £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 10.2%.

• Short-term borrowing of £20 million with SMBC Bank International plc. The facility was not drawn down at
the year-end and expires in February 2024.

• Revenue and expenditure forecasts are reviewed by the Directors at each Board meeting.

• 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 in the 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 24 in the Annual Report.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES UNDER DISCLOSURE GUIDANCE AND
TRANSPARENCY RULE 4.1.12
Each of the Directors, who are listed in the Annual Report, 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 the 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


Simon Miller
Chair
18 January 2023

STATEMENT OF COMPREHENSIVE INCOME



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.
All of the Company’s profits are from continuing operations.
Year ended 31 October 2022 Year ended 31 October 2021




Notes
Revenue
return
£'000
Capital
return
£'000
Total
return
£'000
Revenue
return
£'000
Capital
return
£'000
Total
return
£’000
(Losses)/gains on investments
held at fair value through profit
and loss – (202,031) (202,031) - 308,991 308,991
Investment income 2 37,814 – 37,814 34,939 - 34,939
Other operating income 3 394 – 394 88 - 88

--------- ------------ ------------ --------- --------- ---------
Total income 38,208 (202,031) (163,823) 35,027 308,991 344,018

--------- ------------ ------------ --------- --------- ---------
Expenses


Management fees 4 (1,905) (4,446) (6,351) (1,843) (4,300) (6,143)
Other expenses 5 (1,364) – (1,364) (1,074) - (1,074)

--------- --------- --------- --------- --------- ---------
Profit/(loss) before finance
costs and taxation 34,939 (206,477) (171,538) 32,110 304,691 336,801
Finance costs 6 (1,346) (3,141) (4,487) (1,037) (2,423) (3,460)

--------- ------------ ------------ --------- ---------- ---------
Profit/(loss) before taxation 33,593 (209,618) (176,025) 31,073 302,268 333,341



--------- ---------- --------- --------- ---------- ---------
Taxation 7 (3,001) (145) (3,146) (2,705) - (2,705)
--------- ---------- --------- --------- ---------- ---------
Profit/(loss) for the year and
total comprehensive income 30,592 (209,763) (179,171) 28,368 302,268 330,636
====== ======= ======= ====== ====== ======
Earnings/(loss) per ordinary
share – basic and diluted 8 2.34p (16.04p) (13.70p) 2.17p 23.13p 25.30p

STATEMENT OF CHANGES IN EQUITY


Year ended 31 October 2022

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 2021 32,827 159,797 12,540 1,343,631 38,589 1,587,384
Total comprehensive income:
- (Loss)/profit for the year – – – (209,763) 30,592 (179,171)
Transactions with owners, recorded
directly to equity:
- Buy-back of shares to treasury
(note 9) 51 – (51) (18,525) – (18,525)
Ordinary dividends paid (note 11) – – – – (29,022) (29,022)
---------- ---------- ----------- ------------- ---------- -------------
Total equity at 31 October 2022 32,878 159,797 12,489 1,115,343 40,159 1,360,666

====== ====== ====== ======== ====== =======


Year ended 31 October 2021

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 2020 32,289 134,125 12,489 1,043,682 38,386 1,260,971
Total comprehensive income:
- Profit for the year - - - 302,268 28,368 330,636
Transactions with owners, recorded
directly to equity:
- Buy-back of shares to treasury
(note 9) (51) - 51 (2,274) - (2,274)
- Issue of new shares (note 9) 589 25,862 - - - 26,451
Share issue costs (note 9) - (190) - - - (190)
Costs relating to sub-division of shares - - - (45) - (45)
Ordinary dividends paid (note 11) - - - - (28,165) (28,165)
---------- ---------- ----------- ------------- ---------- -------------
Total equity at 31 October 2021 32,827 159,797 12,540 1,343,631 38,589 1,587,384
====== ====== ====== ======= ====== =======

STATEMENT OF FINANCIAL POSITION


At 31 October
2022
£'000
At 31 October
2021
£'000

Non-current assets

Investments held at fair value through profit or loss 1,433,728 1,692,169

-------------- --------------



Current assets


Investments held at fair value through profit or loss 1 8,598
Other receivables 4,497 3,621
Cash and cash equivalents 65,871 25,429

-------------- --------------

70,369 37,648

-------------- --------------
Total assets 1,504,097 1,729,817

-------------- --------------
Current liabilities


Other payables (4,151) (3,750)
Debenture stocks (15,000) -
-------------- --------------

(19,151) (3,750)

------------ -------------
Total assets less current liabilities 1,484,946 1,726,067

------------ --------------
Non-current liabilities


Debenture stock - (15,000)
Unsecured loan notes (124,280) (123,683)
------------ --------------
(124,280) (138,683)
------------ --------------
Net assets 1,360,666 1,587,384
======= ========



Equity attributable to equity shareholders


Share capital (note 9) 32,878 32,827
Share premium account 159,797 159,797
Capital redemption reserve 12,489 12,540
Retained earnings:


Other capital reserves 1,115,343 1,343,631
Revenue reserve 40,159 38,589
------------ -------------
Total equity 1,360,666 1,587,384
======= =======
Net asset value per ordinary share (note 10) 105.1p 120.9p
======= =======




The financial statements in the Annual Report were approved by the Board of Directors on 18 January 2023.

CASH FLOW STATEMENT

Reconciliation of profit before taxation to
net cash flow from operating activities
Year ended
31 October
2022
£’000
Year ended
31 October
2021
£'000
Operating activities

(Loss)/profit before taxation (176,025) 333,341
Less: loss/(gain) on investments held at fair value through profit or loss 202,031 (308,991)
Purchases of investments (419,661) (614,490)
Sales of investments 476,954 478,300
Purchases of current asset investments (17,498) (67,151)
Sales of current asset investments 26,095 83,323
Increase in securities purchased for future settlement 1,602 -
Decrease in other receivables 1 2
(Decrease)/increase in other payables (1,479) 374
(Increase)/decrease in accrued income (257) 42
Add back interest payable (‘finance costs’) 4,487 3,460
-------------- --------------
Net cash inflow/(outflow) from operating activities before interest
and taxation 96,250

(91,790)
------------- --------------
Interest paid (4,503) (3,072)
Taxation on investment income (3,766) (3,103)
------------- --------------
Net cash inflow/(outflow) from operating activities 87,981 (97,965)
------------- --------------
Financing activities
Equity dividends paid (29,022) (28,165)
Issue of loan notes - 74,232
Costs relating to sub-division of shares - (45)
Share issue proceeds - 26,451
Share issue costs - (190)
Share buy-backs (18,207) (2,274)
------------- -------------
Net cash (outflow)/inflow from financing activities (47,229) 70,009
------------- -------------

Increase/(decrease) in cash 40,752 (27,956)
Cash and cash equivalents at the start of the year 25,429 54,221
Exchange movements (310) (836)
------------- -----------
Cash and cash equivalents at the end of the year 65,871 25,429
======= =======

In accordance with IAS 7.31 cash inflow from dividends was £34,030,000 (2021: £34,960,000) and cash
inflows from interest was £245,000 (2021: £26,000).

NOTES:
1. Accounting policies

The Bankers Investment Trust PLC is a company incorporated and domiciled in the United Kingdom
under the Companies Act 2006. The financial statements of the Company for the year ended 31 October
2022 have been prepared in accordance with UK-adopted International Accounting Standards.

The financial statements have been prepared on a going concern basis and on the historical cost basis,
except for the revaluation of certain financial instruments held at fair value through profit or loss. The
principal accounting policies adopted are set out in the Annual Report. 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’) in April 2021 is consistent with the requirements of UK-adopted International
Accounting Standards
, the Directors have sought to prepare the financial statements on a basis
consistent with the recommendations of the SORP.

Going Concern
In reviewing viability (see Annual Report) 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, including the ongoing
impact of the war in Ukraine. 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. Accordingly, the Directors continue to adopt the going concern basis in preparing the
financial statements.


2022 2021
2. Investment income £’000 £’000
UK dividend income - listed 10,349 10,461
UK dividend income - special dividends 288 673
Overseas dividend income - listed 26,291 22,257
Overseas dividend income - special dividends 659 1,395
Property income distributions 227 153
----------- -----------
37,814 34,939
====== ======
Analysis of investment income by geographical
region:

UK 9,402 11,287
Europe (ex UK) 7,735 8,202
North America 6,909 4,683
Japan 3,723 3,726
Pacific (ex Japan and China) 7,362 5,117
China 2,683 1,924
----------- -----------
37,814
======
34,939
======

2022 2021
3. Other operating income £’000 £’000
Bank interest 344 24
Stock lending revenue 48 60
Other income 2 4
----- -----
394 88
=== ===
The Company terminated its stock lending agreement with the agent (BNP Paribas Securities Services) on 23
May 2022. The maximum aggregate value of securities on loan at any one time during the year ended 31
October 2022 was £63,630,000 (2021: £98,840,000). At 31 October 2022 the total value of securities on loan
by the Company for stock lending purposes was £nil (2021: £71,929,000). The Company’s agent held collateral
at 31 October 2022 with a value of £nil (2021: £79,628,000) in respect of securities on loan. The value of
securities held on loan, comprising Corporate and Government Bonds with a minimum market value of 105%
of the market value of any securities on loan, was reviewed on a daily basis. The Company terminated its stock
lending agreement during the year so there was no stock on loan at 31 October 2022.

2022 2021


4. Management fees
Revenue
return
£’000
Capital
return
£’000
Total return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Investment management 1,905 4,446 6,351 1,843 4,300 6,143
------- ------- ------- ------- ------- -------
1,905 4,446 6,351 1,843 4,300 6,143
==== ==== ==== ==== ==== ====

A summary of the terms of the management agreement is given in the Business Model in the Annual Report.


5. Other Expenses
2022 2021
£’000 £’000
Directors' fees and expenses (see Annual Report) 141 165
Auditors' remuneration – for audit services 45 40
Auditors' remuneration – for non-audit services
1
3 3
Expenses payable to Janus Henderson (relating to marketing services) 138 115
Bank/custody charges 287 258
Depositary fees 54 55
Registrar fees 72 59
AIC subscriptions 21 21
Printing expenses 36 43
Legal fees
2
184 35
Listing fees 119 98
Irrecoverable VAT 19 19
Loan arrangement & non-utilisation fees 76 51
Other expenses 169 112
----------- -----------
1,364 1,074
====== ======

The compensation payable to key management personnel in respect of short term employment benefits was
£141,000 (2021: £165,000) which relates wholly to the fees and expenses payable to the Directors in respect
of the year.

1 Non-audit services relate to the provision of a debenture covenant compliant certificate

2 Following the judgement of the supreme court hearing in November 2021, which was in favour of HMRC, the Company
withdrew its claims in respect of Manufactured Overseas Dividends. The Company is expecting to incur legal costs to close
this case and an estimate of £150,000 has been included in the current year expenses

2022 2021
6. Finance Costs
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Interest on bank overdrafts – 1 1 – – –
Interest on debentures
repayable:

- less than one year 360 840 1,200 – – –
- between one and five years – – – 360 840 1,200
Interest on unsecured loan
notes repayable:

- after five years
1
986 2,300 3,286 677 1,583 2,260
------- ------- ------- ------- ------- -------
1,346 3,141 4,487 1,037 2,423 3,460
==== ==== ==== ==== ==== ====


1
Includes amortisation of issue costs and may therefore vary from year to year

2022 2021
7.


Taxation
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
a) Analysis of the tax charge
for the year

Overseas tax suffered 3,637 145 3,782 3,103 - 3,103
Overseas tax reclaimable (636) – (636) (398) - (398)
------- ------- ------- ------- ------- -------
Total tax charge for the year 3,001 145 3,146 2,705 - 2,705
==== ==== ==== ==== ==== ====

b) Factors affecting the tax charge for the year

The differences are explained below:
2022 2021

Revenue
return
£’000
Capital
return
£’000
Total
return

£’000
Revenue
return
£’000
Capital
return
£’000
Total
return

£’000
Profit before taxation 33,593 (209,618) (176,025) 31,073 302,268 333,341
Corporation tax for the year at
19% (2021: 19%) 6,383 (39,827) (33,444) 5,904 57,431 63,335
Non-taxable UK dividends (2,020) – (2,020) (2,117) - (2,117)
Overseas income and non-
taxable scrip dividends (4,869) – (4,869) (4,294) - (4,294)
Overseas withholding tax
suffered 3,001 145 3,146 2,705 - 2,705
Excess management expenses
and loan relationships 374 1,152 1,526 420 1,084 1,504
Interest capping restriction 132 290 422 87 193 280
Capital gains not subject to tax – 38,385 38,385 - (58,708) (58,708)
-------- -------- -------- -------- ----------- -----------
3,001 145 3,146 2,705 - 2,705
===== ===== ===== ===== ====== =====


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 £19,730,000 (2021:
£17,695,000) arising as a result of having unutilised management expenses and unutilised non-trade loan
relationship deficits totalling £78,749,000 (2021: £70,780,000) and based on the prospective tax rate of 25%
(2021: 25%).


8. Earnings per ordinary share
The total earnings per ordinary share is based on the net loss attributable to the ordinary shares of
£179,171,000 (2021: profit of £330,636,000) and on 1,307,589,615 ordinary shares (2021: 1,306,988,584),
being the weighted average number of shares in issue during the year.

The total earnings can be further analysed as follows:
2022 2021
£’000 £’000
Revenue profit 30,592 28,368
Capital (loss)/profit (209,763) 302,268
------------------ ------------------
(Loss)/profit for the year (179,171) 330,636

------------------- -------------------
Weighted average number of ordinary shares 1,307,589,615 1,306,988,584
------------------- -------------------
Revenue earnings per ordinary share 2.34p 2.17p
Capital (loss)/earnings per ordinary share (16.04p) 23.13p
------------- -------------
(Loss)/earnings per ordinary share (13.70p) 25.30p
======= =======

The Company does not have any dilutive securities. Therefore basic and diluted earnings are the same.

9.



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 2021 2,031,754 1,313,071,076 1,315,102,830 32,827
Buy-back of ordinary shares 18,219,870 (18,219,870) – 51
1

---------------- ------------------- ------------------- -----------
At 31 October 2022 20,251,624 1,294,851,206 1,315,102,830 32,878
========= =========== =========== ======

1
The nominal value of the share buy-backs which were held in treasury during the year to 31 October 2021 was transferred to
the capital redemption reserve but should have remained in share capital. This transfer of £51,000 has been reversed in the
current period.

During the year no new shares were issued and 18,219,870 shares were bought back into treasury for a net
payment of £18,525,000.

Since the year end, the Company has bought back 808,270 shares into treasury for a net payment of
£802,000.





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 2020 – 129,157,783 129,157,783 32,289
Issue of new ordinary shares of 25p – 975,000 975,000 244
----------------- ----------------- ----------------- -----------
– 130,132,783 130,132,783 32,533
----------------- ----------------- ----------------- -----------
Issue of new ordinary shares
following 10:1 stock split
– 1,171,195,047 1,171,195,047 –
Issue of new ordinary shares of 2.5p – 13,775,000 13,775,000 345
Buy-back of ordinary shares 2,031,754 (2,031,754) – (51)
----------------- ------------------- ------------------- -----------------
At 31 October 2021 2,031,754 1,313,071,076 1,315,102,830 32,827
========== =========== =========== ======


In the year ended 31 October 2021, 975,000 new shares were issued prior to the 10 for 1 share split and
13,775,000 following the 10 for 1 share split for proceeds of £26,261,000 and 2,031,754 shares were bought
back into treasury for a net payment of £2,274,000.

10. Net asset value per ordinary share
The net asset value per ordinary share is based on net assets attributable to ordinary shares of
£1,360,666,000 (2021: £1,587,384,000) and on 1,294,851,206 ordinary shares in issue (excluding shares
held in treasury) at 31 October 2022 (2021: 1,313,071,076). 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:
2022 2021
£’000 £’000
Net assets attributable to ordinary shares at start of year 1,587,384 1,260,971
Total net (loss)/profit on ordinary activities after taxation (179,171) 330,636
Issue of shares (18,525) 23,942

Dividends paid (29,022) (28,165)
------------- -------------
Net assets attributable to ordinary shares at end of year 1,360,666 1,587,384
========

========
11.

Dividend
A final dividend of 0.60p per share (2021: 0.55p), if approved by shareholders at the Annual General Meeting,
will be paid on 28 February 2023 to shareholders on the register on 27 January 2023. The shares go ex-
dividend on 26 January 2023. This final dividend, together with the three interim dividends already paid brings
the total dividend for the year to 2.328p (2021: 2.176p) per share.

12. 2022 Financial Information
The figures and financial information for the year ended 31 October 2022 are extracted from the Company’s
annual financial statements for that year and do not constitute statutory accounts. The Company’s annual
financial statements for the year to 31 October 2022 have been audited but have not yet been delivered to
the Registrar of Companies. The Auditor’s report on the 2022 annual financial statements was unqualified,
did not include a reference to any matter to which the Auditor drew attention without qualifying the report,
and did not contain any statements under Section 498 of the Companies Act 2006.

13. 2021 Financial Information
The figures and financial information for the year ended 31 October 2021 are compiled from an extract of the
published accounts for that year and do not constitute statutory accounts. Those accounts have been
delivered to the Registrar of Companies and included the report of the Auditor which was unqualified and did
not contain a statement under Sections 498(2) or 498(3) of the Companies Act 2006.

14. Annual Report
Copies of the Annual Report will be posted to shareholders by the end of January 2023 and will be available
on the Company’s website (www.bankersinvestmenttrust.com
) or in hard copy format from the Registered
Office, 201 Bishopsgate, London EC2M 3AE.

15. Annual General Meeting
The Annual General Meeting will be held at 12 noon on Thursday, 23 February 2023 at the registered office,
201 Bishopsgate, London, EC2M 3AE. The Notice of Meeting will be sent to shareholders with the Annual
Report.

16. General information

Company Status
The Company is a UK domiciled investment trust company.
London Stock Exchange Daily Official List (SEDOL): BN4NDR3 / ISIN number is GB00BN4NDR39
London Stock Exchange (TIDM) Code: BNKR
Global Intermediary Identification Number (GIIN): L5YVFP.99999.SL.826
Legal Entity Identifier (LEI): 213800B9YWXL3X1VMZ69

Registered Office
UK: 201 Bishopsgate, London EC2M 3AE.

Company Registration Number
UK: 00026351
NZ: 645360

Directors
The Directors of the Company are Simon Miller (Chair), Julian Chillingworth (Senior Independent Director),
Isobel Sharp (Audit Committee Chair), Richard West, Charlotte Valeur and Hannah Philp.

Corporate Secretary
Janus Henderson Secretarial Services UK Limited, represented by Wendy King, FCG.


Website
Details of the Company’s share price and net asset value, together with general information about the
Company, monthly factsheets and data, copies of announcements, reports and details of general meetings
can be found at www.bankersinvestmenttrust.com.

For further information contact:

Alex Crooke
Fund Manager
The Bankers Investment Trust PLC
Telephone: 020 7818 4447


Simon Miller
Chair
The Bankers Investment Trust PLC
Telephone: 020 7818 4233

Dan Howe
Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 4458


Harriet Hall
PR Manager, Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 2919

Neither the contents of the Company’s website nor the contents of any website accessible from hyperlinks
on the Company’s website (or any other website) is incorporated into, or forms part of, this announcement.