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The Bankers Investment Trust PLC
Annual Report 2022
Strategic Report | |
Performance Highlights & | |
Long-term track record | 1 |
Our Investment Philosophy | 2 |
Investment Principles | 3 |
Chair's Statement | 6 |
Our Investment Process | 8 |
Fund Manager's Report | 11 |
Portfolio Structure | 13 |
Largest Investments | 15 |
Changes in Investments | 15 |
Regional Portfolio Manager Reports | |
United Kingdom Portfolio | 16 |
Europe (ex UK) Portfolio | 18 |
North America Portfolio | 20 |
Japan Portfolio | 22 |
Pacific (ex Japan and China) Portfolio | 24 |
China Portfolio | 26 |
Distribution of Assets | |
and Liabilities | 28 |
Rates of Exchange | 28 |
Historical Record | 28 |
Our Approach to Environmental, | |
Social and Governance Matters | 29 |
Business Model | 32 |
Governance | |
Board of Directors | 43 |
Directors' Report | 45 |
Corporate Governance Report | 47 |
Audit Committee Report | 53 |
Management Engagement Committee | |
Report | 56 |
Nominations Committee Report | 57 |
Directors' Remuneration Report | 59 |
Statement of Directors' | |
Responsibilities | 62 |
Independent Auditor's Report | 63 |
Financial Statements | |
Statement of Comprehensive Income | 70 |
Statement of Changes in Equity | 71 |
Statement of Financial Position | 72 |
Cash Flow Statement | 73 |
Notes to the Financial Statements | 74 |
Other Shareholder information | |
Glossary | 94 |
Alternative Performance Measures | 95 |
General Shareholder Information | 97 |
Securities Financing Transactions | 98 |
Corporate Information | 99 |
FCA Share Fraud Warning | 100 |
Leading
diversified portfolios
Performance Highlights1
Net asset value per | Dividend |
ordinary share | Per share for year2 |
With debt at par |
Strategic
105.1p 2022
120.9p (2021)
With debt at market value
105.0p 2022
120.7p (2021)
Share price at year end3
96.6p 2022
114.0p (2021)
Net (gearing)/cash at year end5
(5.4%) 2022
(6.6%) (2021)
2.328p 2022
2.176p (2021)
Dividend Growth
7.0% 2022
1.0% (2021)
(Discount)/premium at year end4
(8.1%) 2022
(5.7%) (2021)
Ongoing charge for year
0.50% 2022
0.48% (2021)
Report
Long term track record to 31 October 2022
1 year | 3 years | 5 years | 10 years | 15 years | |
% | % | % | % | % | |
Capital return6 | |||||
Net asset value7 | -13.1 | 11.1 | 20.0 | 124.2 | 108.7 |
Share price | -15.3 | 4.2 | 13.4 | 123.0 | 120.1 |
FTSE World Index8 | -4.9 | 26.0 | 40.2 | 90.8 | 67.1 |
Total return9 | |||||
Net asset value7 | -11.3 | 18.1 | 33.4 | 181.9 | 202.4 |
Share price | -13.4 | 10.9 | 26.3 | 182.0 | 226.4 |
FTSE World Index8 | -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 |
- A glossary of terms and alternative performance measures can be found on pages 94 to 96
- This represents the four ordinary dividends recommended or paid for the year (see page 81 for more details)
- Share price is the mid-market closing price
- Based on the mid-market closing price with debt at par
- Net (gearing)/cash calculated in accordance with the gearing definition in the alternative performance measures on page 95
- Capital return excludes all dividends
- 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
- For 5, 10 and 15 years, this is a composite of the FTSE World Index and the FTSE All-Share Index
- Total return assumes dividends reinvested
Sources: Morningstar Direct, Janus Henderson, Refinitiv Datastream
The Bankers Investment Trust PLC Annual Report 2022 | 1 |
Our Investment Philosophy
Stewardship, consistency and diversification are the core principles that define how we invest and safeguard our shareholders' money. They are why we have produced stable and consistent income and capital growth over decades. We have paid a dividend for the last 132 years and it has been increased every year for the previous 56 years. This record is a testament to these principles and our approach to long- term investing.
Our enduring core principles have remained unchanged:
- Stewardship - Since the Company was launched in 1888, the Company's purpose has remained unchanged. We are stewards of shareholders' financial aspirations and our role is to generate long-term returns while taking care of their assets over multiple generations with the utmost care and responsibility. Long-term to us means taking decisions that may affect the Company in five years time and beyond, such as the placing of long dated loan notes. An independent board acts as a guardian of shareholder interests and works closely with the Manager to ensure that these long-term objectives are achieved.
- Consistency - The price you pay for a company will determine your long-term stock market returns. Investing over a century has taught us to seek successful global companies that are growing year after year. Buying these companies at the right time and price is key to sustaining our long-term track record.
- Diversification - Diversification is vital when investing globally. We invest across six different regions: UK, Europe (ex UK), North America, Japan, the Pacific region (ex-Japan and China) and China each managed by a regional portfolio manager. Fund Manager Alex Crooke has been with Janus Henderson, the Company's Investment Manager, since 1994 and oversees the investment team. While each regional portfolio manager invests based on their own style, Alex Crooke and his deputy Mike Kerley work closely with each of them to ensure they find the best opportunities.
2 The Bankers Investment Trust PLC Annual Report 2022
Investment Principles
Our principles are aligned with investors seeking to achieve their financial goals by investing for the long-term. There are key advantages to this approach:
Stewardship
1. Long-term investing - 7 reasons why we are aligned with your savings/investment goals:
Strategic Report
-
Benefits of diversification - investing your money across different regions, sectors, and businesses to build a diversified equity portfolio reflects our core investment objective to achieve both capital growth greater than
the FTSE World Index and dividend growth greater than the UK's Consumer Price Index ('CPI') over the long-term. - Time in the market - time in the market beats timing the market. Trying to time the best point during the year to invest is difficult as stock markets are unpredictable over the short-term. We believe that staying invested in good quality companies is more likely to produce good returns over the long term.
- Beating inflation - inflation is the enemy of returns because it erodes the value of your assets over time. That's why it's essential to have a portfolio that generates strong returns above the rate of inflation and why one of our performance targets is to achieve long-term dividend growth ahead of CPI.
- Managing risk - we monitor different types of risk - economic, political and investment risk. The Fund Manager and the Board meet regularly to monitor and assess the Company's appropriate level of risk. Core to reducing risk is a globally diversified portfolio resulting from our investment team's best ideas, investing across six geographical regions and eleven different sectors of the stock markets.
- Compounding benefit- if you reinvest your dividends, you can supercharge your long-term returns because of the power of compounding. Your dividends buy more shares, which increases your dividend next time, which lets you buy even more shares and so on. We focus on global companies that can generate positive returns whilst growing their dividends.
- Steward of shareholder interests - the independent Board of Directors exists to safeguard the interests of shareholders while leading on governance. The Board is there to ensure that the Fund Manager and the investment team are managing the portfolio to serve shareholders' long-term interests. This covers the appropriate level of risk, the charges paid by shareholders and the level of dividends paid to shareholders annually. See page 34 for a broader definition of the role of the Board.
- Costs - Fees and ongoing charges can erode your investment returns over time. That is why the Company's ongoing charges are some of the lowest amongst other active investment trusts. We want our shareholders to retain as much of their investment to achieve their long-term financial goals.
The Company's dividend growth as compared to the Retail Prices Index and Consumer Price Index
7,000
6,000
5,000
4,000
% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
3,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||
Dividend per share | Retail Prices Index ('RPI') until 31 October 2020 and the Consumer Price Index ('CPI') from this date | |||||||||||||||||||||||||||||||||||||||||||||||||||||
This is in line with the Company's income objective as defined by the Board |
Source: Datastream, Morningstar
The Bankers Investment Trust PLC Annual Report 2022 | 3 |
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The Bankers Investment Trust plc published this content on 26 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2023 12:22:08 UTC.