The Bankers Investment Trust plc

The Bankers Investment Trust aims to grow the value of shareholders’ investments and provide an increasing level of income by investing in a broad and diverse range of companies globally, including the UK.

What does it do?

The Trust invests in a broadly diversified range of companies around the world. It aims to grow the value of your investment (or capital) as well as providing an income (or dividends). The Trust was launched in 1888 with the aim of providing low cost access to international markets, something which still holds true today.

How does it do it?

The Trust is run by a team of Janus Henderson’s best managers who are focused on the dual aims of the company:

• For capital growth, the aim is to find companies around the world with an attractive share price that the team thinks will grow.
• For income, they look for companies that generate cash and strong profits which will support dividends now and in the future.

Alex Crooke runs the team and decides which geographic regions to allocate money to. Regional specialists then make investments in companies which meet the brief.

Why does Alex do it?

Bankers goes back a long way – to 1888 in fact, and is one of 27 investment trusts that are more than 100 years old. I started managing it in 2003 and I am one of only 3 managers in the last 45 years. Because of that I feel a sense of immense responsibility to ensure that the Trust’s long term future is secure, but also a sense of pride to be part of something that has been around for so long.

The other aspect I really enjoy is working with the people who help me run the Trust – the Board for their steady hand, guidance and independent thinking, but also my team of regional managers who are specialists in their local territory for their input which makes the whole very much greater than the sum of its parts.

What are the Risks?

Share prices go up and down. If you sell your shares at a lower price than you bought them, you will have lost money. You should be comfortable with this risk before investing. See Step 2 for more information on risk, if you haven’t already.

Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.

This Trust is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this Trust.

Derivatives use exposes the Trust to risks different from, and potentially greater than, the risks associated with investing directly in securities and may therefore result in additional loss, which could be significantly greater than the cost of the derivative.

The return on your investment is directly related to the prevailing market price of the Trust’s shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Trust. As a result losses (or gains) may be higher or lower than those of the Trust’s assets.

Global portfolios may include some exposure to Emerging Markets, which tend to be less stable than more established markets and can be affected by local political and economic conditions, reliability of trading systems, buying and selling practices and financial reporting standards.

Where the Trust invests in assets which are denominated in currencies other than the base currency then currency exchange rate movements may cause the value of investments to fall as well as rise.

The trust may borrow money (gearing) as part of its investment strategy. If the Trust utilises its ability to gear, the profits and losses incured by the trust can be greater than those of a Trust that does not use gearing.

All or part of the Trust's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.