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RNS
Bankers Investment Trust PLC  -  BNKR   

Half-year Report

Released 07:00 13-Jul-2017

RNS Number : 9198K
Bankers Investment Trust PLC
13 July 2017
 

LEGAL ENTITY IDENTIFIER: - 213800B9YWXL3X1VMZ69

 

THE BANKERS INVESTMENT TRUST PLC

 

Unaudited results for the half-year ended 30 April 2017

 

 

This announcement contains regulated information

 

The Company aims to provide investors with an attractive total return, focused on growing both capital and income for shareholders.

 

OBJECTIVES

 

Capital - To achieve long term asset growth through active stock selection.

Income - To achieve regular dividend growth greater than inflation.

 

INVESTMENT POLICY 

 

To achieve both these objectives by investing in a broadly diversified international portfolio of shares.

 

 

Performance Highlights 

 

Total return performance for the six months to

 30 April 2017

Net asset value ("NAV")1 per share

7.0%

FTSE All-Share Index2

7.1%

Share price3

12.3%

 

 

 

 

 30 April 2017

 

 

30 April 2016

NAV per share

798.3p

623.7p

Share price

765.5p

587.0p

Revenue return per share

9.35p

8.57p

Discount

4.1%

5.9%

Dividend (1st and 2nd interims)

 

9.1p

8.0p

 

                                               

Total Return Performance to 30 April 2017

(including dividends reinvested and excluding transaction costs)

 

 

 

6 months

%

 

1 year

%

 

3 years

%

 

5 years

%

 

10 years

 %

NAV1

7.0

31.3

49.2

93.0

114.6

FTSE All-Share Index2

7.1

20.1

21.8

58.6

68.9

Share price3

12.3

33.7

48.4

112.0

139.9

 

 

1 Net asset value total return per share with income reinvested for 6 months, 1, 3 and 5 years and capital NAV plus income reinvested for 10 years

2 The FTSE All-Share Index expressed on a total return basis

3 Share price total return using mid-market closing price

 

Sources: Morningstar for the AIC and Datastream.

 

INTERIM MANAGEMENT REPORT

 

CHAIRMAN'S STATEMENT

 

Review

It is pleasing to be able to report a positive return from our diversified portfolio of international equities. Global equity markets have continued to attain record high levels in most markets, led by North America, as the economic growth outlook has become established and the corporate outlook more positive. For the six month period under review the NAV total return increased by 7.0% (FTSE All-Share Index 7.1%) and for the twelve month period to end of April, the NAV total return was 31.3% (FTSE All-Share Index 20.1%). This latter period reflects, in part, the positive impact of currency movements post the "Brexit" vote on the value of the portfolio when translated into sterling.

 

We have gradually increased our weighting to North America during the past three years and, at one point during the period under review, this region represented our largest regional weighting in the portfolio. In the six months to the end of April the North American region rose in sterling terms by 10%, significantly ahead of the local index return of just under 7%. Towards the end of the period we began to reduce our North American exposure primarily as a result of valuation concerns but also in anticipation of the potential negative impact further increases in US interest rates could have on investor sentiment. Monies raised by this shift in asset allocation have been redeployed into Continental Europe and Asia where valuation and yields are at a discount to those which we observe in North America.

 

Continental Europe was the second best performing region during the period recording an increase of 9.7%. The additional monies added to the region have taken our total exposure up to 17%. Elsewhere in the portfolio the Far East recorded mixed returns. Our exposure to the Chinese market continued to generate strong returns, 9.3%, which was especially pleasing against a local index decline of 4.4%. Our Japanese and Pacific exposure did not contribute to the overall positive return of the portfolio albeit that the overall negative impact was negligible.

 

Finally, in the UK our exposure was reduced marginally after a strong period of positive performance (7.3%) and the recovery in the share prices of domestic companies.

 

Revenue Returns and Dividend

In my last Chairman`s statement I was able to project a dividend increase of at least 6% for the year to 31 October 2017. I am able to reiterate this forecast with greater optimism at the half-year as our revenue account has again generated a significant surplus relative to this anticipated pay-out. This surplus reflects the higher dividend growth that our portfolio is securing from our international holdings, the continued receipt of special dividends from UK companies and the positive translation effect of overseas dividends into sterling. The Board is very aware of the potential temporary nature of this last point but, in our thinking on the recommended dividend pay-out, we are increasingly focused upon seeking to increase the level of dividends to shareholders. The Board declares a second interim dividend of 4.70p per share payable on 31 August 2017 to shareholders on the register on 28 July 2017.

 

Janus Henderson Investors

Henderson Group plc and Janus Capital Group Inc announced in May that the merger between the two companies had been completed and was effective as of 30 May 2017. The Board believe that the opportunities that this merger will bring specifically in regard to greater global fund management resource being available will be positive for the employees and also for the longer term management of the Company.

 

Outlook

In reviewing my past statements to shareholders I have referred to the potential negative impact of global politics on investor sentiment. I have been too cautious. Yet as I write this report the political instability in the UK, following the general election, could still generate unwelcome surprises and the outcome was certainly not the strong mandate which the Prime Minister was seeking ahead of the "Brexit" negotiations. The twists and turns of these negotiations will definitely impact UK sentiment during the next two years.

 

Elsewhere the focus will remain on the economic backdrop and the ability of the corporate sector to improve revenue and earnings growth. On both fronts the picture is more positive than for some time and, despite an uplift in inflationary expectations, there has been no disconcerting jump in wage inflation which gives greater confidence that this inflationary increase will be temporary.

 

Thus, overall I remain cautiously optimistic regarding the short and medium term outlook for equity markets and the returns which we will likely witness from our portfolio.

 

Principal Risks and Uncertainties

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

 

·           Investment Activity and Performance Risks

·           Portfolio and Market Risks

·           Tax, Legal and Regulatory Risks

·           Financial Risks 

·           Operational Risks

 

Information on these risks and how they are managed are given in the Annual Report for the year ended 31 October 2016.  In the view of the Board these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the six months under review.

 

Directors' Responsibility Statement

 

The Directors confirm that, to the best of their knowledge:

 

 

(a)

the condensed set of financial statements has been prepared in accordance with IAS 34;

 

 

(b)

the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

 

 

(c)

the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

 

 

For and on behalf of the Board

Richard Killingbeck

Chairman

 

 

For further information contact:                                                                     

 

Alex Crooke

Fund Manager

The Bankers Investment Trust PLC

Telephone: 020 7818 4447

 

Richard Killingbeck

Chairman

The Bankers Investment Trust PLC

Telephone: 020 7818 4233

James de Sausmarez

Director and Head of Investment Trusts

Janus Henderson Investors

Telephone: 020 7818 3349

Sarah Gibbons-Cook

Investor Relations and PR Manager

Janus Henderson Investors

Telephone: 020 7818 3198

 

 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

 

 

(Unaudited)

Half-year ended

30 April 2017

(Unaudited)

Half-year ended

30 April 2016

(Audited)

Year ended

31 October 2016

 

Revenue return £'000

Capital return £'000

 

Total £'000

Revenue return £'000

Capital return £'000

 

Total £'000

Revenue  return £'000

Capital return £'000

 

Total

£'000

Gains/(losses) from investments held at fair value through profit or loss

-

53,802

53,802

-

(6,624)

(6,624)

-

156,527

156,527

Investment income

13,606

-

13,606

11,667

-

11,667

24,661

-

24,661

Other operating income

111

-

111

145

-

145

255

-

255

 

---------

---------

---------

---------

---------

---------

---------

---------

---------

Gross revenue and capital gains/(losses)

13,717

53,802

67,519

11,812

(6,624)

5,188

24,916

156,527

181,443

 

----------

---------

---------

----------

---------

---------

---------

---------

---------

Expenses

 

 

 

 

 

 

 

 

 

Management fees (note 2)

(505)

(1,179)

(1,684)

(463)

(1,082)

(1,545)

(959)

(2,237)

(3,196)

Other expenses

(483)

-

(483)

(406)

(2)

(408)

(811)

(3)

(814)

 

---------

---------

---------

---------

---------

---------

---------

---------

---------

Profit/(loss) before finance costs and taxation

12,729

52,623

65,352

10,943

(7,708)

3,235

23,146

154,287

177,433

 

 

 

 

 

 

 

 

 

 

Finance costs

(454)

(1,059)

(1,513)

(612)

(1,428)

(2,040)

(1,227)

(2,863)

(4,090)

 

---------

---------

---------

---------

---------

---------

---------

---------

---------

Profit/(loss) before taxation

12,275

51,564

63,839

10,331

(9,136)

1,195

21,919

151,424

173,343

 

 

 

 

 

 

 

 

 

 

Taxation

(807)

-

(807)

(520)

-

(520)

(1,090)

-

(1,090)

 

---------

---------

---------

---------

---------

---------

---------

---------

---------

Profit/(loss) for the period

11,468

51,564

63,032

9,811

(9,136)

675

20,829

151,424

172,253

 

=====

=====

=====

=====

=====

=====

=====

=====

=====

Earnings/(loss) per ordinary share (note 3)

9.35p

42.06p

51.41p

8.57p

(7.98p)

0.59p

17.53p

127.45p

144.98p

 

The total columns of this statement represent the Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the European Union.  The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. 

 

All income is attributable to the equity shareholders of The Bankers Investment Trust PLC. 

 

The accompanying condensed notes are an integral part of the financial statements.

 

 

 

 

 

CONDENSED STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

Half-year ended 30 April 2017 (Unaudited)

 Called up

share capital

£'000

 Share premium

account

£'000

Capital  redemption

reserve

£'000

Other capital

reserves

£'000

 

Revenue reserve

£'000

 

Total

equity

£'000

Total equity at 1 November 2016

30,986

78,541

12,489

767,317

37,405

926,738

Total comprehensive income:

 

 

 

 

 

 

Profit for the period

-

-

-

51,564

11,468

63,032

Transactions with owners, recorded

directly to equity:

 

 

 

 

 

 

Payment of third interim dividend (4.40p) in respect of the year ended 31 October 2016

-

-

-

-

(5,395)

(5,395)

Payment of the  final dividend (4.60p) in respect of the year ended 31 October 2016

-

-

-

-

(5,640)

(5,640)

 

----------

----------

----------

----------

----------

----------

Total equity at 30 April 2017

30,986

78,541

12,489

818,881

37,838

978,735

 

======

======

======

======

======

======

 

 

 

 

 

 

 

 

 

 

Half-year ended 30 April 2016 (Unaudited)

 Called up

share capital

£'000

Share premium

account £'000

Capital  redemption

reserve

£'000

Other capital

reserves £'000

 

Revenue reserve £'000

 

Total

equity

£'000

Total equity at 1 November 2015

28,271

12,722

12,489

624,099

35,052

712,633

Total comprehensive income:

 

 

 

 

 

 

(Loss)/profit for the period

-

-

-

(9,136)

9,811

675

Transactions with owners, recorded

directly to equity:

Buy-back of 500,000 ordinary shares

-

-

-

(2,875)

-

(2,875)

Issue of 10,863,453 ordinary shares

2,715

65,822

-

-

-

68,537

Payment of third interim dividend (4.00p) in respect of the year ended 31 October 2015

-

-

-

-

(4,523)

(4,523)

Payment of the final dividend (4.00p) in respect of the year ended 31 October 2015

-

-

-

-

(4,581)

(4,581)

 

----------

----------

----------

----------

----------

----------

Total equity at 30 April 2016

30,986

78,544

12,489

612,088

35,759

769,866

 

======

======

======

======

======

======

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 31 October 2016 (Audited)

 Called up

share capital

£'000

 Share premium

account £'000

Capital  redemption

reserve £'000

Other capital

reserves £'000

 

Revenue reserve £'000

 

Total

equity £'000

Total equity at 1 November 2015

28,271

12,722

12,489

624,099

35,052

712,633

Total comprehensive income:

 

 

 

 

 

 

Profit for the year

-

-

-

151,424

20,829

172,253

Transactions with owners, recorded

 directly to equity:

 

 

 

 

 

 

Buy-back of 1,338,509 ordinary shares

-

-

-

(8,206)

-

(8,206)

Issue of  10,863,453 ordinary shares

2,715

65,819

-

-

-

68,534

Ordinary dividends paid

-

-

-

-

(18,476)

(18,476)

 

----------

----------

----------

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

----------

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

Total equity at 31 October 2016

30,986

78,541

12,489

767,317

37,405

926,738

 

======

======

======

======

======

======

 

The accompanying condensed notes are an integral part of the financial statements.

 

CONDENSED STATEMENT OF FINANCIAL POSITION

 

 

(Unaudited)

As at 30 April

2017

£'000

(Unaudited)

As at 30 April

2016

£'000

(Audited)

As at 31 October

2016

£'000

 

 

 

 

Non-current assets

 

 

 

Investments held at fair value through profit or loss

1,002,383

772,839

951,219

 

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

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

-----------

 

 

 

 

Current assets

 

 

 

Investments held at fair value through profit or loss (note 4)

15,600

48,763

21,354

Other receivables

12,943

6,932

7,817

Cash and cash equivalents

21,476

50,765

23,271

 

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

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

-----------

 

50,019

106,460

52,442

 

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

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

-----------

Total assets

1,052,402

879,299

1,003,661

 

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

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

-----------

Current liabilities

 

 

 

Other payables

(8,856)

(34,633)

(12,117)

Debenture stock

-

(10,000)

-

 

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

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

----------

Net current liabilities

(8,856)

(44,633)

(12,117)

 

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

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

----------

Total assets less current liabilities

1,043,546

834,666

991,544

 

 

 

 

Non-current liabilities

 

 

 

Debenture stock

(15,000)

(15,000)

(15,000)

Unsecured loan notes

(49,811)

(49,800)

(49,806)

 

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

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

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

Net assets

978,735

769,866

926,738

 

=======

=======

=======

 

 

 

 

Equity attributable to equity shareholders

 

 

 

Share capital (note 5)

30,986

30,986

30,986

Share premium account

78,541

78,544

78,541

Capital redemption reserve

12,489

12,489

12,489

Retained earnings:

 

 

 

  Other capital reserves

818,881

612,088

767,317

  Revenue reserve

37,838

35,759

37,405

 

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

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

-----------

Total equity

978,735

769,866

926,738

 

=======

=======

=======

Net asset value per ordinary share (note 6)

798.3p

623.7p

755.9p

 

=======

=======

======

 

The accompanying condensed notes are an integral part of the financial statements.

 

 

CONDENSED CASH FLOW STATEMENT

 

 

(Unaudited)

Half-year ended

 30 April

2017

£'000

(Unaudited)

Half-year ended

30 April

2016

£'000 

(Audited)

Year ended

31 October

 2016

£'000

 

 

 

 

Net profit before taxation

63,839

1,195

173,343

Add interest payable ('finance costs')

1,513

2,040

4,090

Amortisation of loan note issue costs

5

5

11

(Less)/add: (gains)/losses on investments held at fair value through profit or loss

(53,802)

6,624

(156,527)

Increase in accrued income

(2,407)

(2,295)

(454)

Decrease/(increase) in other receivables

52

18

(28)

(Decrease)/increase in other payables

(102)

228

113

Purchase of investments

(143,632)

(73,278)

(215,420)

Sales of investments

146,046

72,683

199,472

Purchases of current asset investments

(26,802)

(74,674)

(45,156)

Sales of current asset investments

32,555

54,282

52,125

Increase in securities sold for future settlement

(2,711)

(2,094)

(4,754)

(Decrease)/increase in securities purchased for future settlement

(3,144)

32,392

10,168

 

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

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

-----------

Net cash inflow from operating activities before interest and taxation

11,410

17,126

16,983

Interest paid

(1,520)

(2,051)

(4,102)

Taxation on investment income

(911)

(693)

(1,302)

 

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

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

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

Net cash inflow from operating activities

8,979

14,382

11,579

 

=======

=======

=======

 

 

 

 

Financing activities

 

 

 

Equity dividends paid (net of refund of unclaimed distributions and reclaimed distributions)

(11,035)

(9,104)

(18,476)

Issue of ordinary shares

-

9,007

9,007

Buy-backs of own shares

-

(2,875)

(8,206)

Repayment of debenture stock

-

-

(10,000)

Cash received from the liquidation of Henderson Global Trust plc

-

7,320

7,160

 

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

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

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

Net cash (outflow)/inflow from financing activities

(11,035)

4,348

(20,515)

 

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

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

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

 

 

 

 

(Decrease)/Increase in cash

(2,056)

18,730

(8,936)

Cash and cash equivalents at start of year

23,271

31,762

31,762

Exchange movements

261

273

445

 

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

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

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

Cash and cash equivalents at end of period

21,476

50,765

23,271

 

=======

=======

=======

 

The accompanying condensed notes are an integral part of the financial statements.

  

 

 

NOTES TO THE CONDENSED FINANCIAL STATEMENTS:

 

1.

Accounting Policies

 

The Bankers Investment Trust PLC  ("the Company") is a company incorporated and domiciled in the United Kingdom under the Companies Act 2006.

 

These condensed financial statements comprise the unaudited results of the Company for the half-year ended 30 April 2017.  They have been prepared on a going concern basis and in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union and with the Statement of Recommended Practice for Investment Trust ("SORP") issued by the Association of Investment Companies dated November 2014, and updated in January 2017 with consequential amendments, where the SORP is consistent with the requirements of IFRS.

 

For the period under review the Company's accounting policies have not varied from those described in the annual report for the year ended 31 October 2016.  These financial statements have not been either audited or reviewed by the Company's Auditor.

 

 

2.

Management Fees

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

Half-year ended

30 April 2017

Half-year ended

30 April 2016

Year ended

31 October 2016

 

 

Revenue return

£'000

Capital  return

£'000

Total

£'000

Revenue return

£'000

Capital  return

£'000

Total

£'000

Revenue return

£'000

Capital  return

£'000

Total

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Management fees

505

1,179

1,684

463

1,082

1,545

959

2,237

3,196

 

 

=====

=====

====

=====

=====

=====

=====

=====

=====

 

 

A summary of the terms of the management agreement is given in the Strategic Report on page 4 of the Annual Report for the year ended 31 October 2016.

 

 

3.

Earnings per Ordinary Share

 

The earnings per ordinary share figure is based on the net profit for the half-year of £63,032,000 (30 April 2016: £675,000; year ended 31 October 2016: £172,253,000) and on 122,606,783 (30 April 2016: 114,521,215; year ended 31 October 2016: 118,813,485) ordinary shares, being the weighted average number of ordinary shares in issue during the period.                                                 

 

 

 

The return per share detailed above can be further analysed between revenue and capital, as below.

 

 

 

(Unaudited)

Half-year ended

30 April 2017

£'000

(Unaudited)

 Half-year ended

30 April 2016

£'000

(Audited)

Year ended

31 October 2016

£'000

 

 

 

 

 

 

Revenue profit

11,468

9,811

20,829

 

Capital profit/(loss)

51,564

(9,136)

151,424

 

 

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

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

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

 

Total profit

63,032

675

172,253

 

 

=======

=======

=======

 

Weighted average number of ordinary  shares in issue during each period

122,606,783

114,521,215

118,813,485

 

 

 

 

 

 

Revenue earnings per ordinary share

9.35p

8.57p

17.53p

 

Capital earnings/(loss) per ordinary share

42.06p

(7.98p)

127.45p

 

 

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

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

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

 

Total earnings per ordinary share

51.41p

0.59p

144.98p

 

 

=======

=======

=======

 

 

 

4.

Current Asset Investment

 

 

The Company has a holding in the Deutsche Bank Liquidity Fund, a money market fund which is used to hold what would otherwise be short term cash balances. At 30 April 2017 this holding had a value of £15,600,000 (30 April 2016: £47,501,000; 31 October 2016: £21,354,000).  The Company no longer has a holding in a US Treasury Bill (30 April 2016: £1,262,000; 31 October 2016: £nil).

 

 

5.

Share Capital

 

 

At 30 April 2017 there were 122,606,783 ordinary shares of 25p each in issue (30 April 2016: 123,945,292; 31 October 2016: 122,606,783).  During the half-year ended 30 April 2017 no shares were issued and no shares bought back (30 April 2016: 10,863,453 shares were issued and 500,000 shares bought back for holding in treasury; 31 October 2016: 10,863,453 shares were issued and 1,338,509 shares bought back for holding in treasury).  During the half-year ended 30 April 2017 there were no share issues or buy-backs into treasury (30 April 2016: proceeds of £68,537,000 and cost of buy-backs £2,875,000; year ended 31 October 2016: proceeds of £68,534,000 and cost of buy-backs £8,206,000).

 

At the end of the period 1,338,509 shares were held in treasury (30 April 2016: 500,000; 31 October 2016: 1,338,509).

 

Included with the issue of 10,863,453 shares during the year ended 31 October 2016 were 9,413,453 shares issued for net proceeds of £59,527,000 following the liquidation of Henderson Global Trust plc ('HGT') whereby investors in HGT were given the option of receiving shares in either The Bankers Investment Trust PLC or Henderson International Income Trust plc as an alternative roll-over option for investors wishing to maintain a global growth mandate.

 

 

6.

Net Asset Value per Ordinary Share

 

 

The net asset value per ordinary share is based on the net assets attributable to equity shareholders of £978,735,000 (30 April 2016: £769,866,000; 31 October 2016: £926,738,000) and on 122,606,783 (30 April 2016: 123,445,292; 31 October 2016: 122,606,783) ordinary shares, being the number of ordinary shares in issue at the period end.

 

 

7.

Related Party Transactions

 

 

The Company's current related parties are its directors and Janus Henderson. There have been no material transactions between the Company and its directors during the period. The only amounts paid to them were in respect of expenses and remuneration for which there were no outstanding amounts payable at the period end.

 

In relation to the provision of services by Janus Henderson (other than fees payable by the Company in the ordinary course of business and the provision of marketing services) there have been no material transactions with Janus Henderson affecting the financial position of the Company during the period under review.

 

 

8.

Financial Instruments

 

At the period end the carrying value of financial assets approximates their fair value.

 

Financial Instruments Carried at Fair Value                          

 

Fair value hierarchy

The debenture stock and unsecured loan notes are valued at par in the Statement of Financial Position. The fair value of the 8% debenture stock at 30 April 2017 was £20,009,000 (30 April 2016: £19,619,000; 31 October 2016: £19,944,000). The 10.5% debenture was repaid on 31 October 2016. Its fair value at 30 April 2016 was £10,452,000. The fair values are calculated using prices quoted on the exchange on which the instruments trade and are categorised as Level 1 as described below. In order to comply with fair value accounting disclosures only, the fair value of the loan note at 30 April 2017 has been estimated to be £56,028,000 (30 April 2016: £50,000,000; 31 October 2016: £54,483,000) and is categorised as Level 3 in the fair value hierarchy as described below. However, for the purpose of the daily NAV announcements, the unsecured loan notes are valued at par in the fair value NAV because they are not traded and the Directors expect them to be held to maturity and, accordingly, the Directors have assessed that par value is the most appropriate value to be applied for this purpose.                                     

                                               

The following table analyses recurring fair value measurements for financial assets. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to valuation techniques used.                                                                                               

 

 

 

Financial assets at fair value through profit or loss at

30 April 2017 (Unaudited)

    Level 1

Level 2

    

Level 3

        Total

 

 

     £'000

       £'000

    £'000

 £'000

 

Investments including derivatives:

 

 

 

 

 

- Equity investments

1,001,990

-

376

1,002,366

 

- Fixed interest investments

-

-

17

17

 

  - Current asset investments

15,600

-

-

15,600

 

  - Foreign exchange contracts

-

19

-

19

 

 

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

----------

---------

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

 

Total financial assets carried at fair value

1,017,590

19

393

1,018,002

 

 

========

======

======

=======

 

Financial assets at fair value through profit or loss at

30 April 2016 (Unaudited)

     Level 1

Level 2

  Level 3

        Total

 

 

     £'000

       £'000

    £'000

 £'000

 

Investments including derivatives:

 

 

 

 

 

- Equity investments

772,814

-

-

772,814

 

- Fixed interest investments

-

-

25

25

 

  - Current asset investments

47,501

-

-

47,501

 

  - Foreign exchange contracts

-

(169)

-

(169)

 

 

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

----------

---------

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

 

Total financial assets carried at fair value

820,315

(169)

25

820,171

 

 

========

======

======

=======

 

 

Financial assets at fair value through profit or loss at

31 October 2016 (Audited)

    Level 1

Level 2

     

  Level 3

        Total

 

 

     £'000

       £'000

    £'000

 £'000

 

Investments including derivatives:

 

 

 

 

 

- Equity investments

951,197

-

-

951,197

 

- Fixed interest investments

-

-

22

22

 

  - Current asset investments

21,354

-

-

21,354

 

 

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

----------

---------

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

 

Total financial assets carried at fair value

972,551

-

22

972,573

 

 

========

======

======

=======

 

 

 

(Unaudited) Half-year

(Unaudited) Half-year

(Audited)  Year ended

 

Level 3 investments at fair value through profit or loss

30 April

     2017

   £'000

30 April

     2016

   £'000

31 October

2016

£'000

 

Opening balance

22

23

23

 

Transferred into Level 3

487

-

-

 

 

-------

--------

-----------

 

 

509

23

23

 

Disposal proceeds

-

-

(19)

 

Total (losses)/gains included in the Statement of Comprehensive Income - on assets held at year end

(116)

(2)

18

 

 

   -------

   --------

----------

 

Closing balance

393

25

22

 

 

====

====

=====

 

 

 

Transfers between levels of fair    value hierarchy are deemed to have occurred at the date of the event or change in circumstances that caused the transfer.       

                                                                                   

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset as follows:                                                                                      

Level 1: valued using quoted prices in active markets for identical assets.                                      

                                               

Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in Level 1.                                           

                                               

Level 3: valued by reference to valuation techniques using inputs that are not based on observable market data.                                        

                                               

The valuation techniques used by the Company are explained in the accounting policies note 1(b) of the Company's Annual Report.        

                                               

 

9.

Going Concern

 

 

The assets of the Company consist of securities that are readily realisable and, accordingly, the directors believe that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.

 

 

10.

Interim Dividend

 

 

A first interim dividend of 4.40p (2016: 4.00p) per ordinary share, was paid on 31 May 2017 to shareholders registered on 21 April 2017. The shares were quoted ex-dividend on 20 April 2017. Based on the number of ordinary shares in issue at 20 April 2017 of 122,606,783 the cost of this dividend was £5,395,000.

 

The Directors have declared a second interim dividend of 4.70p (2016: 4.00p) and is payable to shareholders on 31 August 2017 to shareholders on the register on 28 July 2017. The shares will be quoted ex-dividend on 27 July 2017. Based on the number of shares in issues at 12 July 2017 of 122,606,783 the cost of this dividend will be £5,763,000.

 

 

11.

Comparative Information

 

 

The financial information contained in this half-year report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the half-years ended 30 April 2017 and 2016 has not been audited or reviewed by the auditors.

 

The figures and financial information for the year ended 31 October 2016 have been extracted from the latest published financial statements of the Company. These financial statements have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

 

 

12.

Half-Year Report

 

 

The half-year report will shortly be available on the Company's website (www.bankersinvestmenttrust.com) or in hard copy from the Company's registered office. An abbreviated version of this half-year report, the 'update', will be circulated to shareholders in July 2017.

 

 

13.

General Information

 

Company Status

The Company is a UK domiciled investment trust company.

London Stock Exchange Daily Official List (SEDOL) 0076700 / ISIN number is GB0000767003

Global Intermediary Identification Number (GIIN) is L5YVFP.99999.SL.826

Legal Entity Identifier (LEI) is 213800B9YWXL3X1VMZ69

 

Registered Office

UK: 201 Bishopsgate, London EC2M 3AE.

 

Company Registration Number

UK:  00026351

NZ:  645360

 

Directors

The Directors of the Company are Richard Killingbeck (Chairman), Susan Inglis (Senior Independent Director), Matthew Thorne (Audit Committee Chairman), David Wild and Julian Chillingworth.

 

Corporate Secretary

Henderson Secretarial Services Limited, represented by Wendy King FCIS.

 

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.

 

 

50 LARGEST INVESTMENTS at 30 April 2017         

                       

 

 

Holding

Market value

30 April 2017

£'000

 

 

 

Holding

Market value

30 April 2017

£'000

 

 

 

 

 

BP

21,593

 

Walt Disney

8,172

British American Tobacco

18,261

 

Persimmon

8,120

Apple

15,922

 

Berkshire Hathaway

8,115

Comcast

14,483

 

Netease

8,107

American Tower

14,280

 

MasterCard

7,989

Alphabet

13,242

 

Macquarie

7,968

Facebook

12,310

 

Colgate-Palmolive

7,892

American Express

11,958

 

AmerisourceBergen

7,779

Royal Dutch Shell

11,943

 

SK Telecom

7,579

The Cooper Companies

11,909

 

Mercadolibre

7,557

Amazon

11,828

 

Deutsche Post

7,478

Samsung

11,330

 

Lloyds Banking

7,198

Fidelity National Information Services

11,041

 

Cognizant Technology Solutions

6,867

FedEx

10,534

 

Cranswick

6,710

Delphi Automotive

10,463

 

Fisher (James) & Sons

6,705

Taiwan Semiconductor Manufacturing

10,049

 

Fujitsu

6,704

GlaxoSmithKline

9,927

 

KB Financial

6,670

Cognex

9,857

 

Prudential

6,440

Visa

9,768

 

Roper Technologies

6,339

Priceline

9,266

 

Mitsubishi UFJ Financial

6,309

ITV

8,964

 

Diageo

6,270

Galliford Try

8,954

 

Activision Blizzard

6,257

Reckitt Benckiser

8,533

 

Jaingsu Expressway

6,199

Christian Dior

8,384

 

Amcor

6,132

Barclays

8,217

 

ANTA Sports

6,074

 

These investments total £470,646,000 which represents 47.0% of the portfolio.

 

Convertibles, fixed interest and all classes of equity in any one company being treated as one investment.                      

 

 

GEOGRAPHICAL DISTRIBUTION

 

 

Valuation of investments

Currency exposure of net assets

 

30 April 2017

%

31 October 2016

%

30 April 2017

%

31 October 2016

%

UK

28.2

29.0

24.0

25.1

Europe (ex UK)

17.2

14.3

19.4

17.0

North America

26.0

27.7

26.6

28.1

Japan

10.9

11.5

11.4

11.8

China

3.9

4.3

4.4

4.5

Pacific (ex Japan, China)

11.3

10.7

11.6

10.9

Emerging Markets

2.5

2.5

2.6

2.6

 

---------

---------

---------

---------

 

100.0

100.0

100.0

100.0

 

=====

=====

=====

=====

Source: Janus Henderson

 

 

 

SECTOR ANALYSIS

 

30 April 2017

%

31 October 2016

%

Financials

23.6

20.8

Consumer Goods

19.9

16.8

Industrials

15.3

17.6

Consumer Services

14.1

14.7

Technology

8.8

10.8

Health Care

6.5

6.5

Oil & Gas

4.6

4.8

Telecommunications

3.9

4.1

Basic Materials

2.0

1.8

Utilities

1.3

2.1

 

---------

---------

 

100.0

100.0

 

=====

=====

Source: Janus Henderson

 

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.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Half-year Report - RNS