BIT – Annual Financial Report

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LEGAL ENTITY IDENTIFIER: 213800B9YWXL3X1VMZ69

THE BANKERS INVESTMENT TRUST PLC
Financial results for the year ended 31 October 2023
This announcement contains regulated information

PERFORMANCE HIGHLIGHTS
1, 2



31 October 2023 31 October 2022
Net Asset Value per ordinary share
- With debt at par 108.0p 105.1p
- With debt at fair value 111.0p 105.0p
Share price at year end
3
93.5p 96.6p
Dividend per share for year
4
2.56p 2.328p
Dividend growth 10.0% 7.0%
(Discount)/premium at year end
5
(13.4%) (8.1%)
Net (gearing)/cash at year end
6
(7.1%) (5.4%)
Ongoing Charge for year 0.50% 0.50%


LONG TERM TRACK RECORD TO 31 OCTOBER 2023

1 year
%
3 years
%
5 years
%
10 years
%
15 years
%
Capital return
7

Net asset value
8
2.8 10.9 25.2 85.6 215.2
Share price -3.2 -4.6 12.0 61.2 206.6
FTSE World Index
9
3.3 27.5 41.7 66.3 173.1

Total Return
10

Net Asset Value
8
5.2 17.9 39.2 132.7 354.9
Share price -0.7 1.9 25.1 103.7 352.5
FTSE World Index
9
5.7 35.8 58.4 119.5 331.9

Dividend increase 10.0 18.8 29.8 81.2 131.5
Consumer Price Index 4.6 21.1 23.7 33.2 53.6




1
A glossary of terms can be found in the Annual Report

2
The alternative performance measures can be found in the Annual Report
3
Share price is the mid-market closing price
4
This represents the four ordinary dividends recommended or paid for the year (see the Annual Report for more details)
5
Based on the mid-market closing price with debt at par
6
Net (gearing)/cash calculated in accordance with the gearing definition in the alternative performance measures in the
Annual Report
7
Capital return excludes all dividends

8
The net asset values shown for the periods up to 15 years include debt at fair value, whereas for 15 years it is shown with
debt at par value
9
For the 5, 10 and 15 years, this is a composite of the FTSE World Index and the FTSE All-Share Index
10
Total return assumes dividends reinvested

Sources: Morningstar Direct, Janus Henderson, LSEG Datastream

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CHAIR’S STATEMENT

Dear shareholder

Performance
Throughout the year economists worldwide have predicted a recession in the western world caused principally
by sharply rising interest rates. The real data have shown a more robust picture with employment remaining
near historic highs, inflation falling and, particularly in the US, healthy economic activity. The arrival this year
of ChatGPT bringing to the fore generative Artificial Intelligence (‘AI’) was a seminal moment in the free usage
of AI.

Your Company has delivered a net asset value total return over the year ended 31 October 2023 of 5.2%
(2022: -11.3%) just narrowly underperforming the FTSE World Index total return of 5.7% (2022: -2.8%) and a
share price total return of -0.7% (2022: -13.4%). Over the year, performance relative to the AIC Global peer
group placed Bankers at eighth position on share price total return performance out of 13 comparable trusts
and similarly sixth position out of 13 on net asset value total return.

The principal reason for poor performance against the benchmark over three years was on account of our
comparatively low exposure (40% vs 68% in the benchmark) to the US market and in particular the largest
technology companies which now dominate the US market. Often called the ‘Magnificent Seven’ (Microsoft,
Apple, Amazon, Alphabet, Meta, Nvidia and Tesla), these stocks collectively increased in value by 64% during
the twelve months to the end of October 2023. This was in stark comparison to the performance of the
remaining 493 stocks in the US S&P 500 index, which barely moved, combined only increasing in value by
+0.5% in the year.

The Asian and Chinese portfolios underperformed partially due to the late lifting of Covid restrictions and in
China in particular due to the continued weakness in the property market impacting consumer sentiment.
European and Japanese portfolios performed well and the UK portfolio made a modest contribution.

The Board has long set a twin objective to grow capital and dividends. The US market is increasingly
dominated by zero yielding stocks, which is causing problems for income investors, with five of the Magnificent
Seven not paying a dividend. We therefore only own two of these seven companies. Other funds and in
particular some in our peer group hold all seven and this is reflected in their performance this year. Our
investment style has long focussed on those growth stocks that pay dividends. The size and scale of these
companies that probably have little prospect of paying a dividend now means we need to be more flexible with
revenue reserves to enable a broader investment pool. However, history has taught us we must be careful of
not being blind to valuation, that the technology space is disruptive and has previously been vulnerable to
over-exuberance.

The Fund Managers’ report contains more detailed information regarding performance, together with market
commentary.

Borrowings
The £15 million 8% Debenture Stock matured on 31 October 2023 and was repaid in full. The Company
continues to have longer term debt in the form of the loan notes which were issued in 2015 and 2021 at lower
interest rates than the debenture stock. Following repayment of the debenture, the Company’s overall cost of
borrowing has fallen to 2.7%, in line with the dividend yield on the portfolio. The Company has historically only
fair valued the debenture in the published daily net asset value but having reviewed best practice and that of
our peer group, daily fair value net asset values will be published incorporating a revaluation of the loan notes
based on equivalent dated government bond yields plus a margin.

Revenue, dividends and share buybacks
Revenue earnings per share of 2.72p (2022: 2.34p) exceeded expectations for the year and has enabled a
greater increase in the dividend than the Board had forecast this time last year. One of the Company’s key
objectives is to achieve long-term dividend growth in excess of inflation, measured by the UK Consumer Price
Index (‘CPI’). This objective has been challenging in recent years but inflation has now started to moderate
and CPI rose by 4.6% for the year to 31 October 2023 (2022: 11.1%).

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The Board is therefore recommending a final quarterly dividend of 0.66p per share, resulting in total dividends
per share for the year of 2.56p (2022: 2.328p), an increase over last year of 10%. The final dividend will be
paid on 29 February 2024 to shareholders on the register of members at the close of business on 26 January
2024. This will be the Company’s 57th successive year of annual dividend growth.

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 2.69p per share.

In common with the investment trust sector, the Company’s shares have traded at a wide discount to net asset
value but we have taken advantage of this opportunity to buyback shares from the market. This activity is
beneficial to ongoing shareholders, as shares are only purchased when the Company’s shares are trading at
a discount thereby enhancing shareholder value; in this last year increasing the net asset value by 0.5%. A
total of 60,618,929 shares were bought back in the year ended 31 October 2023 (2022: 18,219,870 shares
were repurchased). The Company will continue to buyback shares to be held in treasury as appropriate.

The Board and Manager
Ankush Nandra, joined the Board on 1 September 2023 and is Chair of the renamed Audit and Risk Assurance
Committee. His appointment increases the diversity and skill set of the Board. Ankush is a qualified accountant
with extensive financial management and accounting experience gained through several roles in industry. He
has over 20 years' experience mainly in the pharmaceutical industry. He is currently Vice President Finance
and Chief Financial Officer (CFO) International Region and Enabling Units at AstraZeneca.

Julian Chillingworth, our Senior Independent Director, who joined the Board in 2015 is to retire at the
conclusion of the 2024 Annual General Meeting when he will have served for nine years. I would like to take
this opportunity to thank Julian for his outstanding contribution and commitment to Bankers and his wise
counsel during his long association with the Company.

To ensure a greater focus on marketing the Company, the Board has established a Marketing Committee,
which is chaired by Hannah Philp. The role of the Committee will be to support and scrutinise the increased
marketing efforts of the Manager.

Recently our Deputy Fund Manager, Mike Kerley, has indicated he will be retiring in 2024 and in due course
a replacement will be announced. The Board would like to thank Mike for his contribution to the Company
since taking on the Asian Pacific portfolio in 2006. Sat Duhra, who has worked alongside Mike for the past
eleven years, will be taking over the portfolio management of the Asian Pacific portfolio.

Annual General Meeting (‘AGM’)
The Company’s AGM is scheduled to take place at 12 noon on Thursday, 22 February 2024 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
A key element will be to attract new investors who have yet to learn the benefits of long-term investing in a
Company such as Bankers Investment Trust, with an established record of dividend and capital growth over
generations of shareholders. This will be achieved by greater focus on potential retail investors through a
variety of channels including advertisements in publications and an enhanced website.

The Fund Manager is currently reviewing portfolio construction in the light of the low exposure in particular to
US non-yielding stocks. This includes assessing how the Company’s revenue reserves and the investment
trust structure can better serve the ability to pay a progressive dividend and yet invest in a wider range of
stocks.

Now that inflation is moderating, there is an expectation that interest rates in western markets will be cut in
2024. It remains to be seen whether central banks can engineer a soft landing, not impacting growth while
reducing inflation.

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Equity markets have been driven higher by a small set of companies supported by investors’ enthusiasm for
the transformative power of generative AI. In the rush to invest in the US and these few leaders, the vast bulk
of quoted companies are trading on undemanding valuations and look attractively priced for patient investors,
like ourselves.


Simon Miller
Chair
17 January 2024

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FUND MANAGER’S REPORT

This year has seen a titanic battle between rising interest rates and, at least initially, stubbornly high inflation.
Central banks have few tools to reduce inflation other than by raising interest rates, which drains cash from
the economy through the higher cost of mortgages and loans. A major challenge is that not all consumers or
companies are affected in the same way. Pensioners with cash deposits have benefitted from higher rates,
whilst younger mortgagees on variable rates faced a sharp rise in payments. There is also a one to two-year
lag as fixed term lending gradually rolls over. It is difficult to tell whether the recent moderation in inflation is
simply down to supply bottlenecks easing rather than higher rates reducing demand. For the past year G7
economies in general have worn higher interest rates rather well since there has not been much economic
growth but neither has there been a recession nor a significant increase in unemployment. The reasons behind
this perfect slowdown are down to increased government spending, propping up investment into reshoring
supply chains. In addition, consumers have benefitted from high demand for workers driving wage growth
while they also are dipping into their savings, which were boosted by Covid payments, all helping to maintain
their confidence and ability to spend. The former can keep going as long as investors support record
government debt issuance but spending savings is finite.

The global bond markets have experienced a bear market as yields have increased to reflect the increase in
interest rates and their initially modest impact on inflation. Meanwhile equity markets recovered from the lows
in 2022 when many investors worried about a recession which never materialised. However, on more careful
examination of the global indices, it is clear that relatively few stocks are driving forward the level of the indices.
These key companies, now named the Magnificent
Seven, rather than FAANG, comprise the largest
technology companies listed in the US (Microsoft, Apple, Amazon, Meta, Nvidia, Alphabet and Tesla). Since
the launch of the launch of ChatGPT in November 2022, they have caught the imagination of investors. The
advent of computer systems so powerful that they can replicate human thought through generative Artificial
Intelligence (‘AI’) lit the touchpaper on the share price of any companies involved in AI.

These seven companies now comprise over 30% of the US market valuation and nearly 20% of our
benchmark the FTSE World Index. Our belief in the long-term attractiveness of companies that pay a dividend
is being tested by the continued performance of these seven companies, only two of which pay shareholders
a dividend. The valuation of the Magnificent Seven is high, an average of 32x price to earnings ratio (P/E),
compared to a P/E of 19x for the rest of the US market. Cutting costs and raising margins through charging
higher prices supported the earnings this year for these companies but their revenues will need to increase
rapidly on the back of selling AI. We are still at an early point in the adoption of AI and there remains a large
degree of uncertainty in terms of evaluating the risks, opportunities and eve
n potential regulation of the
technology.

The contribution to performance from asset allocation was positive this year despite having a lower percentage
of assets in North America compared to the index. Japan has been a standout performer with corporate profits
surprising positively and improving corporate governance leading to greater returns for shareholders. Although
the Japanese Yen weakened, this helped many of the exporters and local returns more than offset the
translation reduction into sterling. The allocation to Europe also benefitted performance as share prices
bounced from an oversold position in 2022 and the anticipated recession was narrowly avoided. Stock
selection was more challenging in the year, principally in North America where we only owned 2 of the
Magnificent Seven companies referenced above. The impact of not owning Nvidia has alone reduced
performance of the total portfolio by 1.50% relative to the benchmark. Stock selection was positive in Europe,
UK and Japan as quality and defensively positioned businesses performed better than the market. In the
Pacific and China, consumer orientated companies, which comprise the bulk of our investments in these
regions, performed very well at the start of the year as China reopened from Covid restrictions. However, the
positive effects of freedom to move around soon gave way to fears of a property market crash which
dampened consumer spending. The Company’s net asset value total return was 0.5% behind the benchmark
over the year, as the benefits of Japan, Europe and the UK just failed to offset the disappointing Chinese
equity market and limited exposure to the highly valued US technology sector.

I have rarely seen markets so narrowly focussed on a few winners where the decision to own one or two
stocks has meant the difference in under or outperforming the index. The last time this occurred was at the
height of the (technology-media-telecoms) bubble, led by Vodafone in the UK, which did not end well for them
and now they trade nearly 80% down from their peak in 2000. In the last decade the proportion of our
benchmark represented by zero yielding stocks has risen from under 10% to 20%. This year we have seen
performance impacted by not owning zero dividend yielding stocks and we are reviewing how to deliver
progressive dividend growth while allowing greater investment into zero yielding companies. Outside the large
technology stocks, it is apparent that investor demand for equities is weak. Market flows have been impacted

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by the opportunity cost to investors of owning cash, yielding a risk free 5%. This opportunity cost is impacting
demand for equities generally across the world and is likely to remain a negative until interest rates are
meaningfully cut from their current levels.

Environmental, social and governance factors
As mentioned in previous reports, we do not exclude sectors or stocks purely for environmental, social and
governance (‘ESG’) reasons, as we feel ultimately that excluding them will not lead to improvements in their
behaviour. Our preferred strategy is through engagement with company management to encourage change
and invest in safer or more environmentally sustainable processes. A sample of some of the engagement that
Janus Henderson conducted on our behalf last year is listed in the Annual Report.

Our favoured measure of the environmental impact of the portfolio is its Carbon Intensity, which calculates
the absolute carbon emissions divided by the revenues generated by the companies.
We consider this
measure useful in comparing companies, as it is less volatile than others and should reduce if companies find
ways to be more efficient in how they produce goods or operate. At the year-end we had a carbon intensity
37% lower than the benchmark. This is principally due to a lower exposure to utilities, materials and energy
compared to the benchmark. However, the exposure to energy has increased in the year as there are now
clearer and more realistic investment plans from the oil majors, however we remain below the benchmark
weight due to uncertainty over the future demand for oil.

The collection of data relating to ESG factors has clearly improved in recent years, although understanding
the assumptions behind various figures can be challenging. Companies continue advancing the quality and
scope of this data which now gives us the confidence to publish a TCFD report in 2024, giving greater detail
of the portfolio company’s environmental impact and expanding on other governance and social factors.

Income
The level of investment income from the portfolio increased by 7% over the year, driven by a continuation of
special dividends and underlying growing dividends. Inflation has had a positive impact on some companies
who can pass on higher prices and grow their margins. The US portfolio grew its dividends by 57% year on
year through an increased allocation of the total portfolio and stock selection favouring strongly growing
dividend payers. Europe and the Pacific were negatively impacted by a lower proportion of financials and the
lack of economic gr
owth. China also saw a decrease in dividends as we sought out more defensively
orientated companies in healthcare and alternative energy providers which yield less than the market.

The outlook for income is largely dependent on economic growth improving, which might be challenging in
the coming year unless interest rates are materially reduced. We are endeavouring to favour companies that
have the scope to raise the proportion of profits they pay out and are well positioned compared to their
competitors. The repayment of the 2023 debenture also saves the Company £1.2m annually in interest costs
which should allow more of the investment income to be distributed to shareholders.

Gearing
The Company’s £15 million 8% debenture was repaid at the end of the 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.
The current outstanding loan stock issuance results in a maximum gross gearing of 9.3% at the year-end. If
the cash balances are netted off, then net gearing at the year-end was 7.1%. We view our default geared
position as being close to the maximum gross gearing with a small cash balance to manage transitioning
between trades. To determine whether we fully gear the Company, or hold tactical cash, we have a number
of statistics such as excess money supply, the rate of corporate profit growth and valuations relative to
historical levels that we review. We have maintained a fairly full level of gearing this year, which has been
beneficial, but in the latter part of the year have started to raise cash, reducing net gearing. The key indicator
of global excess money supply has turned negative, impacted by rising interest rates and increased bond
sales from central banks.

Outlook
Leading indicators for the global economy continue to point to fading growth, and in particular a contraction in
Europe where money supply is negative and the highest interest rates starting to bite. The more positive news
is that the valuation of most stocks appears to be now factoring in a mild recession. Forecasts for profit growth
are modest with the exception of the companies associated with the Artificial Intelligence boom, where the
bubble continues to inflate. The declining inflation numbers are also good news but it is hard to judge when
central banks will start cutting rates as inflation approaches or subsides below their 2% targets. We feel that
inflation could surprise on the downside as China is now in outright deflation and, barring an energy crisis,
most goods and services are in surplus.

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As we look forward, employment is key to the direction of both the economy and, importantly, sentiment. So
far into this interest rate cycle employment has held up very well, as many companies remember recent times
when labour was hard to find so are consequently reluctant to shed labour as the economy slows. The market
consensus view has swung towards a soft landing scenario led by the US, in which interest rates are cut in
the early summer of 2024 and provide the stimulus to offset fading demand. We are a little more cautious as
this type of soft landing has rarely been engineered successfully by central banks and we expect some
overshoot to the downside.

US companies increasingly see share buybacks as their preferred method to return cash to investors and less
companies in the US now pay dividends. We have undoubtedly missed some opportunities in the US market
through our preference for dividend paying companies. We intend to widen our focus in the coming year
although we will maintain our preference for cash generative companies with well defended market positions.
Our stock selection seeks to avoid the overvalued and under invested companies, prioritising higher quality
and lower geared companies, offering earnings resilience. Now that the cost of capital and debt is no longer
close to zero, companies need to generate proper returns to justify their valuations, and our investment
process aims to seek out these opportunities.


Alex Crooke
Fund Manager
17 January 2024

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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 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 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 regularl
y 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.

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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 or that Artificial Intelligence


↑

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 fair 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.

Page 10 of 21

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 £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 9.4% (2022:
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.

•
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 in the Annual Report.

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 buy-
backs. 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.

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 2028.

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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 marketin
g 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.

For and on behalf of the Board
Simon Miller
Chair
17 January 2024

Page 12 of 21


STATEMENT OF COMPREHENSIVE INCOME



Year-ended
31 October 2023
(Audited)
Year-ended
31 October 2022
(Audited)

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

Gains/(losses) on
investments held at fair value
through profit and loss - 37,376 37,376 – (202,031) (202,031)
Investment income (note 2) 40,439 - 40,439 37,814 – 37,814
Other operating income
(note 3) 1,326 - 1,326 394 – 394
----------- ------------ ------------ --------- ------------- --------------
Total income 41,765
-----------
37,376
------------
79,141
------------
38,208
---------
(202,031)
-------------
(163,823)
--------------

Expenses
Management fees (note 4) (1,790) (4,176) (5,966) (1,905) (4,446) (6,351)
Other expenses (note 5) (970) - (970) (1,364) – (1,364)
--------- --------- --------- --------- --------- ---------
Profit/(loss) before finance
costs and taxation 39,005 33,200 72,205 34,939 (206,477) (171,538)
Finance costs (note 6) (1,376) (3,211) (4,587) (1,346) (3,141) (4,487)
--------- ------------ ------------ --------- ------------ ------------
Profit/(loss) before taxation 37,629 29,989 67,618 33,593 (209,618) (176,025)

--------- ---------- --------- --------- ---------- ----------
Taxation (note 7) (3,061) - (3,061) (3,001) (145) (3,146)
--------- ---------- --------- --------- ---------- ----------
Profit/(loss) for the year
and total comprehensive
income 34,568 29,989 64,557 30,592 (209,763) (179,171)
====== ======= ======= ====== ======= =======
Earnings per ordinary
share – basic and diluted
(note 8) 2.72p 2.35p 5.07p 2.34p (16.04p) (13.70p)
====== ======= ======= ====== ======= =======

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.

Page 13 of 21

STATEMENT OF CHANGES IN EQUITY

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:
- Buyback of shares to treasury
(note 9) - - - (60,484) - (60,484)
Ordinary dividends paid (note
11)

-

-

- - (31,216) (31,216)
---------- ---------- ----------- ------------- ---------- -------------
Total equity at 31 October 2023 32,878 159,797 12,489 1,084,848 43,511 1,333,523
====== ====== ====== ======= ====== ========

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:
- Buyback 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
====== ====== ====== ======== ====== =======

Page 14 of 21

STATEMENT OF FINANCIAL POSITION


At 31 October 2023
£’000
At 31 October 2022
£’000
Non-current assets
Investments held at fair value through profit or loss 1,428,787 1,433,728
-------------- --------------
Current assets
Investments held at fair value through profit or loss 13,116 1
Other receivables 19,001 4,497
Cash and cash equivalents 14,525 65,871
-------------- --------------
46,642 70,369
-------------- --------------
Total assets 1,475,429 1,504,097
-------------- --------------
Current liabilities
Other payables (17,006) (4,151)
Debenture stock - (15,000)
-------------- --------------
(17,006) (19,151)
-------------- --------------
Total assets less current liabilities 1,458,423 1,484,946
-------------- --------------
Non-current liabilities
Unsecured loan notes (124,900) (124,280)
-------------- ------------
(124,900) (124,280)
-------------- -------------
Net assets 1,333,523 1,360,666

========
========
Equity attributable to equity shareholders
Share capital (note 9) 32,878 32,878
Share premium account 159,797 159,797
Capital redemption reserve 12,489 12,489
Retained earnings:
Other capital reserves 1,084,848 1,115,343
Revenue reserve 43,511 40,159
-------------- --------------
Total equity 1,333,523 1,360,666
======== ========
Net asset value per ordinary share (note 10) 108.0p
========
105.1p
========




The financial statements in the Annual Report were approved by the Board of Directors on 17 January 2024.

Page 15 of 21

CASH FLOW STATEMENT

Reconciliation of profit before taxation to net cash flow from
operating activities
Year ended
31 October
2023
£’000
Year ended
31 October
2022
£'000
Operating activities

Profit/(loss) before taxation 67,618 (176,025)
Less: (gain)/loss on investments held at fair value through profit or loss (37,376) 202,031
Purchases of investments (830,071) (419,661)
Sales of investments 872,865 476,954
Purchases of current asset investments (80,700) (17,498)
Sales of current asset investments 67,585 26,095
Increase in securities purchased for future settlement 12,119 1,602
(Increase)/decrease in other receivables (58) 1
Decrease in other payables (169) (1,479)
Increase in accrued income (14,217) (257)
Add back interest payable (‘finance costs’) 4,587 4,487
----------- -----------
Net cash inflow from operating activities before interest and
taxation 62,183 96,250
----------- -----------
Interest paid (4,525) (4,503)
Taxation on investment income (3,290) (3,766)
----------- -----------

Net cash inflow from operating activities 54,368 87,981
----------- -----------

Financing activities
Equity dividends paid (net of refund of unclaimed distributions) (31,216) (29,022)
Redemption of debenture (15,000) -
Share buybacks (59,579) (18,207)
------------- -------------
Net cash (outflow)/inflow from financing activities (105,795) (47,229)
------------- -------------

(Decrease)/increase in cash (51,427) 40,752
Cash and cash equivalents at the start of the year 65,871 25,429
Exchange movements 81 (310)
------------- -------------
Cash and cash equivalents at the end of the year 14,525 65,871
======= =======


In accordance with IAS 7.31 cash inflow from dividends was £36,225,000 (2022: £34,030,000) and cash inflows
from interest was £1,349,000 (2022: £245,000).

Page 16 of 21

NOTES TO THE FINANCIAL STATEMENTS

1a. 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 2023 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’) amended in July 2022 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.

In line with UK-adopted International Accounting Standards, investments are valued at fair value which are quoted
prices in active markets and therefore reflect participants’ view of climate change risk.

1b. 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 and the impact of the war in Ukraine and Gaza-Israel conflict.
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.
2. Investment income
2023
£’000
2022
£’000
UK dividend income - listed 9,308 10,349
UK dividend income - special dividends - 288
Overseas dividend income - listed 30,205 26,291
Overseas dividend income - special dividends 702 659
Property income distributions 224 227
----------- -----------
40,439 37,814
====== ======
Analysis of investment income by geographical region:
UK 9,780 9,402
Europe (ex UK) 6,915 7,735
North America 10,866 6,909
Japan 4,275 3,723
Pacific (ex Japan and China) 6,805 7,362
China 1,798 2,683
----------- -----------
40,439
======
37,814
======

3. Other operating income
2023
£’000
2022
£’000
Bank interest 1,311 344
Stock lending revenue - 48
Other income 15 2
-------- --------
1,326 394
===== =====

Page 17 of 21





2023 2022
4. Management fees
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Investment Management 1,790 4,176 5,966 1,905 4,446 6,351
-------- -------- -------- ------- -------- --------
1,790 4,176 5,966 1,905 4,446 6,351
===== ===== ===== ==== ===== =====

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

5. Other expenses
2023
£’000
2022
£’000
Directors' fees and expenses (see Annual Report) 206 141
Auditors' remuneration – for audit services 52 45
Auditors' remuneration – for non-audit services
1
- 3
Expenses payable to Janus Henderson (relating to marketing services) 68 138
Bank/custody charges 259 287
Depositary fees 53 54
Registrar fees 64 72
AIC subscriptions 21 21
Printing expenses 60 36
Legal fees
2
(175) 184
Listing fees 109 119
Irrecoverable VAT 14 19
Loan arrangement & non-utilisation fees 80 76
Other expenses 159 169
----------- -----------
970 1,364
====== ======

The compensation payable to key management personnel in respect of short term employment benefits was
£206,000 (2022: £141,000) 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. The debenture was repaid on 31 October
2023

2 Following the judgment 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 expected to incur legal costs to close this case at an estimate
of £150,000 and this was included in the prior year expenses. Subsequently, the legal fees did not crystalise and have been written
back to the account.


2023 2022
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 – 1 1
Interest on debenture repayable:
- less than one year 360 840 1,200 360 840 1,200
Interest on unsecured loan notes
repayable:

- after five years
1
1,016 2,370 3,386 986 2,300 3,286
--------- --------- --------- --------- --------- ---------
1,376 3,211 4,587 1,346 3,141 4,487
===== ===== ===== ===== ===== =====

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

Page 18 of 21


2023 2022


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 3,322 - 3,322 3,637 145 3,782
Overseas tax reclaimable (261) - (261) (636) – (636)
-------- -------- -------- -------- -------- --------
Total tax charge for the year 3,061 - 3,061 3,001 145 3,146
===== ===== ===== ===== ===== =====

b) Factors affecting the tax charge for the year
The differences are explained below:
2023 2022
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Profit/(loss) before taxation 37,629 29,989 67,618 33,593 (209,618) (176,025)
Corporation tax for the year at 22.50%
1
(2022: 19.00%)
8,467 6,747 15,214 6,383 (39,827) (33,444)
Non-taxable UK dividends
(1,972) - (1,972) (2,020) – (2,020)
Overseas income and non-taxable scrip
dividends
(6,717) - (6,717) (4,869) – (4,869)
Overseas withholding tax suffered
3,061 - 3,061 3,001 145 3,146
Excess management expenses and
loan relationships
182 1,572 1,754 374 1,152 1,526
Interest capping restriction
40 90 130 132 290 422
Capital gains not subject to tax
- (8,409) (8,409) – 38,385 38,385

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

3,061 - 3,061 3,001 145 3,146

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

1
Seven months at the new rate of 25% and five months at 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 £21,687,000 (2022: £19,730,000)
arising as a result of having unutilised management expenses and unutilised non-trade loan relationship deficits
totalling £86,749,000 (2022: £78,749,000) and based on the prospective tax rate of 25% (2022: 25%).

Page 19 of 21





8. Earnings/(loss) per ordinary share
The total earnings per ordinary share is based on the net profit attributable to the ordinary shares of £64,557,000
(2022: loss of £179,171,000) and on 1,272,116,196 ordinary shares (2022: 1,307,589,615), being the weighted
average number of shares in issue, excluding shares held in treasury, during the year.

The total earnings can be further analysed as follows:
2023
£’000
2022
£’000
Revenue profit 34,568 30,592
Capital profit/(loss) 29,989 (209,763)
------------------- -------------------
Profit/(loss) for the year 64,557 (179,171)
------------------- -------------------
Weighted average number of ordinary shares 1,272,116,196 1,307,589,615
------------------- -------------------
Revenue earnings per ordinary share 2.72p 2.34p
Capital earnings/(loss) per ordinary share 2.35p (16.04p)
------------------ ------------------
Earnings/(loss) per ordinary share 5.07p (13.70p)
========== ==========

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

During the year no new shares were issued and 60,618,929 shares were bought back into treasury for a net
payment of £60,484,000.


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 2021 2,031,754 1,313,071,076 1,315,102,830 32,827
Buyback of ordinary shares at 31
October 2022
18,219,870 (18,219,870) - 51
1

----------------- -------------------- -------------------- -----------
20,251,624 1,294,851,206 1,315,102,830 32,878
----------------- -------------------- -------------------- -----------
1
The nominal value of the share buybacks 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 prior period.

In the year ended 31 October 2022, no new shares were issued and 18,219,870 shares were bought back into
treasury for a net payment of £18,525,000.

Page 20 of 21

Since the year end, the Company has not issued any shares, and 13,225,970 shares have been bought back into
treasury for a net payment of £13,238,307.

10. Net asset value per ordinary share
The net asset value per ordinary share is based on net assets attributable to ordinary shares of £1,333,523,000
(2022: £1,360,666,000) and on 1,234,232,277 ordinary shares in issue at 31 October 2023 (2022: 1,294,851,206),
excluding shares held in treasury. 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:

2023
£’000
2022
£’000
Net assets attributable to ordinary shares at start of year
1,360,666 1,587,384
Total net profit/(loss) on ordinary activities after taxation
64,557 (179,171)
Buyback of ordinary shares
(60,484) (18,525)
Dividends paid
(31,216) (29,022)
------------- -------------
Net assets attributable to ordinary shares at end of year 1,333,523 1,360,666
======== ========

11. Dividend
A final dividend of 0.66p per share (2022: 0.60p), if approved by shareholders at the Annual General Meeting, will
be paid on 29 February 2024 to shareholders on the register on 26 January 2024. The shares go ex-dividend on
25 January 2024. This final dividend, together with the three interim dividends already paid brings the total dividend
for the year to 2.56p (2022: 2.328p) per share.

12. 2023 Financial Information
The figures and financial information for the year ended 31 October 2023 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 2023 have been audited but have not yet been delivered to the Registrar of
Companies. The Auditor’s report on the 2023 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. 2022 Financial Information
The figures and financial information for the year ended 31 October 2022 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
The Annual Report will be posted to shareholders in January 2024 and will be available at
www.bankersinvestmenttrust.com or in hard copy from the Corporate Secretary at the Company’s registered
office, 201 Bishopsgate, London, EC2M 3AE.

15. Annual General Meeting (‘AGM’)
The AGM will be held at 12 noon on Thursday, 22 February 2024 at the Company’s 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 with registered number 00026351.

SEDOL/ISIN number: BN4NDR3/GB00BN4NDR39
London Stock Exchange (TIDM) Code: BNKR
Global Intermediary Identification Number (GIIN): L5YVFP.99999.SL.826
Legal Entity Identifier (LEI): 213800B9YWXL3X1VMZ69

Registered Office
201 Bishopsgate, London, EC2M 3AE.

Page 21 of 21


Company Registration Number
UK: 00026351
NZ: 645360

Directors
The Directors of the Company are Simon Miller (Chair), Julian Chillingworth (Senior Independent Director), Ankush
Nandra (Audit and Risk Assurance Committee Chair), Richard West, Charlotte Valeur and Hannah Philp (Marketing
Committee Chair).

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 please contact:

Alex Crooke
Fund Manager
Janus Henderson Investors
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
Investment Trust PR Director
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) are incorporated into, or form part of, this announcement.

----------