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WHITE PAPER HOW WE’LL ALL BE DOING THINGS DIFFERENTLY
HOW WE’LL ALL BE
DOING THINGS DIFFERENTLY
The past 18 months or so have prompted a good deal of rethinking on several fronts, by consumers
and asset managers alike, not least the myriad of societal changes with which we have already come
to terms. The phenomena being experienced are universal, and therefore of relevance to those
investing on a global basis, such as Alex Crooke, Co-Head of Equities, EMEA & Asia Pacific at Janus
Henderson and portfolio manager of The Bankers Investment Trust PLC, a global equity fund within
the Janus Henderson range of investment trusts.
In the light of recent events, one might be forgiven for thinking that no-one will return to the office
full-time, overseas holidays will become a rarity rather than the norm, cinemas will disappear in the
face of the relentless advance of digital streaming services, and that the majority of meals will be
home-delivered rather than home cooked.
Some – possibly most – of this may turn out to be true… but it’s unlikely, and we should be wary of
allowing conjecture to displace reality. Food delivery firm Deliveroo listed on the UK stock exchange at
the end of March 2020 in what was the London Stock Exchange’s largest IPO for a decade and fared
poorly. Shares in the business had been offered to investors at 390p but closed 14% lower at 284p per
share at the end of the first day’s trading, having fallen by as much as 30% initially.
TOP 10 UK IPO POPS AND FLOPS SINCE 2018
Difference between issue price on IPO and opening price on first day of dealing (%)
-100 0 100 200 300
Cellular Goods 300.0
Panther Metals 125.0
Helium One Global 107.0
Wildcat Petroleum 70.0
Dev Clever 63.0
MGC Pharmaceuticals 41.9
Cornish Metals 39.3
Verici DX 37.5
Immotion 35.0
Moonpig 25.7
The past 18 months or so Average* 11.6
Avast -0.4
have prompted a good deal Renalytrix AI -0.8
Bigdish -2.2
of rethinking on several fronts, Crossword Cybersecurity -2.2
Finablr -3.5
by consumers and asset Artel Africa -3.8
Aston Martin Lagonda -4.5
managers alike. Ferro-Alloy Resources -8.6
The Barkby -11.7
Deliveroo -15.1
* Average of all IPOs analysed since the beginning of 2008
Source: AJ Bell, as of April 2021
2 3
As the table above illustrates, Deliveroo’s IPO in the depression of the 1930s. Its enduring
exhibited the worst opening day performance legacy, however, may be a better world of work The transition has unfolded
since the beginning of 2018. In the quest on the basis that it has accelerated positive rather better than expected:
for an explanation, opinions are many and changes that were already underway whilst also
varied. Some attribute it to the company’s refocussing attention on areas that were ripe for people are working longer
dual share structure, which gives CEO
Will Shu shares with 20 times the voting
improvement.
hours but reporting enhanced
power of other shareholders. Others claim Thanks to the rise of remote working, more levels of both job satisfaction
it was down to regulatory concerns about
the employment status, pay and working
individuals will have a greater say in when,
where and how they earn a living. Prior to the
and productivity.
conditions of Deliveroo’s ‘gig-working’ riders, pandemic, estimates suggested that no more
which prompted a number of the UK’s largest than a quarter of all US full-time employees
asset managers to withdraw from the issue. worked from home but, since March 2020, that
Fundamentally, however, it may simply have number has climbed to at least 37%; some
been mispricing. In the eyes of many, perhaps estimates suggest the actual figure is closer to
it won’t now be home delivery forever. 50%. In certain industries, the current number is
significantly higher than that: computing, legal,
Nevertheless, the pandemic has undoubtedly business, education and finance occupations all
transformed the dynamics of global economies reported at least 88% of their employees working
substantially and may well be compelling from home.1 This shift to a ‘hybrid’ model of
us all to revisit key aspects of how we work, work, with some occurring in an office and
shop, travel, and entertain ourselves – some at home, is already compelling managers
possibly for good. History reveals that to raise their game, placing greater trust
necessity has often proved to be the mother in technology in order to become better
of invention: the death of thousands of communicators rather than relying on
horses in an 1815 famine led to the creation subordinates to pick up information by osmosis,
of the bicycle, whilst the manufacturing as in an office, to get the message across.
assembly line became prevalent after the
Spanish flu pandemic. In this piece, we For most businesses, the expectation is that
examine each of those four areas in turn – a home/office scenario offers compound
the worlds of working, shopping, travelling benefits, the former allowing employees to be
and entertainment – in an attempt to take a more focused, to avoid the lengthy commute
glimpse into the future and understand how and to balance professional and personal life
the world might be changing … not beyond better, whilst the latter becomes a destination
all recognition, but sufficiently to force a for collaboration, innovation, coaching and
reappraisal of the investment opportunities, networking. The transition has unfolded rather
and pitfalls, that may lie ahead. better than expected: people are working longer
hours but reporting enhanced levels of both job
satisfaction and productivity.
HOW WE’LL WORK A growing body of research sheds light on what
post-pandemic working patterns may look
The pandemic has taken a severe toll on the like. In one paper, a survey of thousands of
world’s workers. It has destroyed millions of Americans indicated that the average employee
jobs and caused a drop in employment that would like to work from home nearly half the time;
was 14 times larger than the global financial employers were somewhat less enthusiastic, but
crisis of 2008, taking the numbers out of their prognosis – that one working day a week
work in many countries to levels last seen is likely to be spent at home – is nevertheless
Source: “How Many Jobs Can be Done at Home?”, Jonathan I Dingel and Brent Neiman, Becker Friedman Institute, June 2020
1
4 5
Firms have digitised many a significant departure from the current norm. that their office space will shrink by 20%
activities 20 to 25 times faster Interestingly, something of a transatlantic divide and 40%, respectively. Moreover, no crystal
has opened up, with US employers broadly ball is required to foresee the implications for
in the first seven months of adopting a less accommodative approach. the armies of retailers, hospitality providers
2020 than they had previously Take the banking sector for example: JP
Morgan Chase and Goldman Sachs summoned
and other support services which rely in large
part for their revenues on a large, stable, and
thought possible. all US staff back to the office as early as June, relatively affluent universe of urban workers.
whilst European banks from HSBC to Société
Générale are returning more cautiously The marked transition in the role of the home
and adopting a more relaxed attitude to – from family sanctuary to multi-functional live/
remote working. workspace – has catalysed a host of changes
in patterns of consumption. Home improvement
‘Remote-only’ businesses seem set to remain businesses are enjoying strong growth for
a small minority; therefore, cities will not empty example, whilst e-commerce and streaming
of workers; and firms will not replace full-time services, have experienced significant uplifts
employees with lower-cost freelancers across in demand: indeed, the demand for data itself
the board, as might be enticing were the will likely see a sharp increase as businesses
workforce to be wholly remote. The ongoing migrate their need for physical space to a
conflation of domestic and office life will have need for more digital space. Supporting remote
profound and enduring consequences workers through file storage, video-conferencing,
however, with clear implications for certain and collaborative platforms requires major
investment sectors. investment in cloud-based infrastructure for
example. Similarly, public bodies will encounter
Recent research reveals a marked rise in patent an increased appetite for data with contact
applications for ‘work from home’ technologies, tracing technology, early-warning systems and
with companies operating in that field set to healthcare databases all requiring significant
prosper. Similarly, businesses have endeavoured digital footprints.
to control costs and mitigate uncertainty during
historic downturns by adopting automation and Considerable disparity is evident between those
redesigning work processes. In a survey of nations that were early adopters in this area,
800 senior executives in July 2020, McKinsey such as South Korea, and those that remain
reported that two-thirds said they were off the pace: the US, Canada and much of
accelerating investment in automation and Europe. In short, those segments of the economy
artificial intelligence either somewhat or correlated with rising demand in digital channels
significantly. Firms have digitised many activities are likely to prove well positioned for the years
20 to 25 times faster in the first seven months of to come; those less able to adapt will likely be
2020 than they had previously thought possible. left behind.
Production figures for robotics in China exceeded
pre-pandemic levels by June 2020.2 The Bankers Investment Trust owns positions
in electronics companies Apple and Samsung
Research by Microsoft among 30,000 employees Electronics which should benefit both from
across the world found that 70% want flexible increased usage of technology in the home and
working to remain an option and 66% of data proliferation. The Trust also has a large
business decision-makers are contemplating holding in Microsoft which is a direct beneficiary
alternative physical spaces more suited to hybrid of this trend through its cloud business as well
work, significantly reducing the demand for as a number of high-profile productivity tools
commercial real estate. Lloyds Banking Group such as Office and Teams.
and HSBC, for example, have said
Source: McKinsey, The future of work after COVID-19, 18.02.21
2
6 7
HOW WE’LL SHOP shift to online will be fully reversed. Predictions acquired by private equity firm TDR and the
of a retail apocalypse may well be overstated petrol-station billionaire Issa brothers in
It was not long after the arrival of the coronavirus of course – although the collapse of the February; and Morrisons accepted the £7 billion
before it became clear that certain sectors once-mighty retail giant Arcadia has served to takeover bid by US private equity firm Clayton,
faced an existential threat, few more so than fuel that particular fire – and old habits die hard. Dubilier & Rice in October.
the traditional ‘bricks and mortar’ retailers which Nevertheless, the eye-watering valuations of
have been serving consumers in person for tech-driven e-tailers would seem to suggest The absence of a daily commute, widespread
decades, and in some cases centuries. It is that the online revolution will persist long after furloughs, and more time for householders to
somewhat unsurprising, given the UK’s status COVID-19 remains a daily concern. assess their living arrangements – both now
as the most mature e-commerce market in and in a remote-working world of the future
Europe; it’s a story which long predates the An obvious development is the hybrid concept – have combined to see home improvement
pandemic and one which has been hastened, of ‘click-and-collect’. Prior to the pandemic, providers prosper also, as discussed earlier.
not catalysed, by lockdowns. it accounted for roughly a third of transaction Research undertaken by Aldermore Bank
volumes, with non-grocery items representing midway through 2020 showed that, even at
John Lewis can safely be regarded as emblematic the lion’s share. Other physical retailers that point, 38% of adults had undertaken DIY
of the sector. In March 2021, it reported the first have begun to embrace the model however, or renovation tasks. The healthy stimulus to
loss in its history. In the financial year to January increasingly conscious of the fact that the final DIY sales is evidenced by the likes of
2008, it had 3.5m square feet of retail space mile of a package’s journey is the most costly Kingfisher – the parent group of B&Q and
across 26 stores; by 2016, it had grown 40% and the most problematic. For evidence, look Screwfix – which has seen like-for-like sales
to 4.9m square feet across 46 stores, going no further than the banks of Amazon lockers increase substantially, and with online sales to
into the pandemic larger still with 50 stores. Of at your local railway station, supermarket or the fore. Its share price is currently up some
those, eight have since closed with a further mixed-use site, a clear indication of growing 290% from its 2020 low.3
eight now under threat. During this period, its symbiosis in the e-commerce space.
online business grew from circa 10% of sales in It would seem that a nation of shopkeepers
2008, to 33% in 2016, and to 40% on the eve of Clear beneficiaries of the disruption have faces a long and potentially painful battle to
the pandemic. been the revitalised grocery retailers, a sector adjust not only to the effects of the pandemic
historically seen as low growth, low margin, but also to the multitude of challenges that
Recent data from consultancy Springboard capital intensive and competitive. However, new have beset the sector in recent years. However,
confirms that visitor numbers to UK retail management teams, years of restructuring those businesses that have adapted well to
destinations are substantially depressed: in and a scaling up of their online offerings have online without abandoning the physical
the four weeks to the end of May 2021, they put the big players back on their feet and, for presence that evidence suggests will remain
were 27% below 2019 levels, although the the first time in a decade, the threat of the a key element of the consumer experience for
pattern of out-of-town retail parks outperforming discounters – primarily Aldi and Lidl – has years to come, are likely to hold fast.
continued, with the visitor decline closer to 6% been countered. Moreover, calculations by
as opposed to a drop in 36% for high street Atrato Capital show that the significant uplift in The Bankers Investment Trust benefits from
traffic. Whilst coronavirus cases have surged online order volumes during the pandemic has trends in e-commerce growth via its holding
and declined over the past 18 months, the pile of transformed the profitability of home delivery: in Amazon, as well as cashless payments
rent that has gone unpaid thanks to government for almost two decades, it has been dilutive businesses Visa, Mastercard and Paypal.
to the big supermarkets’ profits, the delivery The Trust also holds stakes in a number of
mandated closures has continued to grow,
currently standing at £6.4bn according to charges rarely covering the costs of picking and luxury brands, such as Hermes, ANTA sports
The eye-watering valuations
Remit Consulting. despatch, but it is now estimated to be almost and Burberry, which are direct beneficiaries of of tech-driven e-tailers
as profitable as in-store shopping. strengthening consumer balance sheets.
The extent to which employees return to office
would seem to suggest that
work after the eventual full easing of restrictions Vesa, the investment vehicle of Czech the online revolution will
will be an important driver of footfall in the billionaire Daniel Kretinsky, doubled its stake
coming months, although few anticipate that the in Sainsbury’s to 9.9% in April, becoming the persist long after COVID-19
retailer’s largest shareholder; Asda was
remains a daily concern.
Source: Bloomberg, 20.03.20 to 16.08.21
3
8 9International travel stopped
almost entirely between
March and May 2020, HOW WE’LL TRAVEL
with the United Nations The suitcase appeared at the end of the 19th century when spending several weeks
World Tourism Organisation abroad each year became more common for the wealthy. Cheaper airline fares were the
‘game-changer’ in terms of democratising international travel but, irrespective of levels
estimating a shortfall in of affluence, many of us will have not packed a suitcase for the best part of 18 months,
travel spending 10 times for leisure or business. COVID-19 has ravaged an industry that relies on freedom of
movement. International travel stopped almost entirely between March and May 2020,
that which followed the with the United Nations World Tourism Organisation (UNWTO) estimating a shortfall in
global financial crisis. travel spending 10 times that which followed the global financial crisis.
All parties involved in the fields of leisure or business travel have found themselves
adversely affected by the pandemic: airlines, hotel chains, car hire firms, travel agents
and restaurants have suffered. When rental car group Hertz filed for bankruptcy in May
2020 – in April alone, turnover was down by 73% – it became the pandemic’s highest
profile travel-related casualty and portended a great many corporate failures to come.
Travel is a resilient industry, but it is facing a downturn like no other.
The trough currently being experienced by the airline industry comes after years of
healthy growth. In each 15-year period since 1988, total revenue passenger kilometres
(RPKS) doubled, and were expected to continue to do so between 2018 and 2033
according to Airbus, the European half of the duopoly which manufactures the world’s
largest commercial aircraft. It will be a turbulent ride for airlines however, with signs of a
full recovery still scant: only 2.8bn passengers are forecast to fly in 2021. Whilst long-haul
flying will be hit particularly hard, all airlines face a bleak short-term future. In a good year,
the industry makes an operating profit of circa $50bn; in 2020, losses were estimated to
be more than double that figure. For operators keen to attract the business traveller, the
long-awaited arrival of reliable video-conferencing services – Zoom, Microsoft Teams,
Google Hangouts et al – has made matters worse.
A host of carriers has succumbed – Norwegian Air Shuttle, FlyBe, Virgin Australia, Avianca
and Stobart Air amongst others – with smaller operators lacking access to substantial
capital finding themselves particularly vulnerable. For IAG, the parent company of British
Airways and Iberia, capacity in the second quarter of this year was just over a fifth of
that seen for the same period in 2019. It has seen its share price plummet from circa £5
in mid-2018 to less than £2 three years later. Two types of carrier are likely to survive:
those with sound business models and strong balance sheets – Ryanair in Europe
(whose share price has recovered to mid-2018 levels), Southwest in the US and AirAsia,
Source: Bloomberg, 21.06.18 to 18.06.21
4
10 11all low-cost operators – and legacy carriers, carmakers. Tesla, the industry’s prime disruptor,
mostly sustained by government funding. Just is ahead of everyone else by a country mile and
as PanAm and TWA are relics of the past, so completing the universe of four are Uber, the
a number of familiar names may no longer find app-based ride-hailing giant now valued at over
themselves on the tarmac. $100bn.
Let’s turn our attention to travel of a different Having been slow to the electrification party,
kind: the train and the car. established carmakers are catching up but
are also finding themselves having to confront
Sir Peter Hendy, chairman of Network Rail a new societal challenge: the transition from
which owns and manages the railway’s ownership to ‘usership’. The private car will
infrastructure, estimates 20% of passenger remain a significant element of the new
traffic may not return while Abellio, which runs ecosystem – for every 10 miles travelled,
franchises including Greater Anglia and East Americans drive eight, Europeans seven and
Midlands Railway, has suggested that the the Chinese six – but its dominance may well
drop-off will be closer to a quarter. At the low be under threat as we begin to rethink the
point, passenger numbers fell to 5% of concept of mobility… and it’s in city centres
pre-pandemic levels; it has climbed since but has where the revolution begins. Uber and Lyft,
not consistently exceeded 40%. Just 12% of its smaller US rival, have lost money for years
commuters are planning to travel five days a but are forecast to become profitable in 2022
week after the pandemic. according to Morgan Stanley. Zipcar lets people
rent vehicles by the hour. Turo, a Californian
Whilst rail operators are drawing up plans business, offers peer-to-peer car-sharing.
for flexible season tickets, industry figures BlaBlaCar, a French firm that connects car
believe that the Treasury, which has pumped drivers with spare seats with passengers
over £10bn into keeping the railways running looking to travel in the same direction, has
during the past year, is resisting more sweeping succeeded in generating 90m members in 22
reforms. Even before COVID-19, the regular countries. Bike-sharing schemes and e-scooters
commute was in gradual decline due to flexible for hire are now commonplace in urban areas.
working. Petrol has effectively been poured onto As an additional layer of mobility, specialist
what was already a burning platform, with the journey-planning apps – Whim of Finland and
franchise model set to disappear, replaced by a Germany’s Deutsche Bahn are good examples
fixed fee for running services, thereby reducing – are now able to stitch these various options
the risk of fluctuating passenger numbers. There together to build a seamless trip, charging the
is even talk of prioritising the needs of leisure individual service providers a commission.
rail-travellers, who have long been subjected Subscription services, where a fixed monthly
to delays and reduced services as a result of fee covers all costs other than fuel, are also
regular weekend engineering works. growing in popularity.
Unsurprisingly, the world’s mainstream
Turning to cars, in the 1980s and 1990s, the
likes of General Motors (GM) and Toyota carmakers are keen to get a piece of this new
Having been slow to the
boasted some of the world’s largest market action: in 2016, GM invested $500m into Lyft, electrification party, established
capitalisations; the picture looks rather different Volkswagen has invested $300m into Gett,
today. Of the four most valuable corporations a European taxi-hailing app, and Toyota has carmakers are catching up
in the business of moving people around, only invested in Uber and Grab, a Singaporean but are also finding themselves
two – Toyota and Volkswagen – are traditional ride-hailing app.
having to confront a new societal
challenge: the transition from
ownership to ‘usership’.
12 13The Bankers Investment Trust owns positions in Toyota Motor. The motor company has joined The shape of the economic recovery is therefore to a large
the electrification race and plans to spend $9 billion over the next decade to build factories extent dependent on what consumers choose to do with
for electric-car batteries. The US sleeve also owns a position in American Express. The these untold riches, and to what extent. Andy Haldane, the
eventual recovery in global travel should benefit the financial services company. In Asia, Bank of England’s chief economist, talks about a “coiled
another beneficiary of the return of international travel is likely to be the Trust’s holding in spring” of pent-up demand waiting to be released as the
duty-free business China Tourism. government’s lockdown shackles continue to be relaxed.
Healthier savings should result in higher levels of
consumption, on the basis that people will feel less
compelled to set aside an overly prudent proportion of
HOW WE’LL ENTERTAIN OURSELVES their future earnings.
UK household balance sheets have rarely been healthier, the government having absorbed Households are unlikely to remedy missed trips to the
considerably more of the economic pain of the pandemic than in a normal downturn through hairdressers in 2020 by visiting their stylists more frequently,
the furlough scheme, tax concessions and soft loans. Despite 2020’s double-digit fall in GDP, but they are widely expected to visit the pub and eat out at
unemployment never rose above 5%. Business insolvencies were lower than in 2019. The restaurants more often, particularly as, since 17th May, they
household savings ratio – the percentage of disposable income that people save rather than have been able to do so inside. It’s not a secret that we like
spend – climbed to its highest level on record (see chart below)5, with circa £180bn added to a drink in these islands. Analysis from Nielsen Scantrack
personal bank accounts between the start of the pandemic and the end of June 2021. shows that, whilst sales of supermarket alcohol went sky
high during the initial lockdown (the 17 weeks to 11 July
2020), the overall volume of alcohol purchased was
lower than in 2019. Perhaps, for us Brits, the social aspect
HOUSEHOLD SAVINGS of drinking is as important as the boozing itself! However,
Per cent of disposable income supply rather than demand may prove to be the prevailing
issue, given that the British Beer & Pub Association, an
influential trade body, predicts that some 30,000 pubs –
35 80% of those in England – are at risk of closing as certain
lockdown constraints persist. Food delivery apps have,
30 needless to say, been one of the success stories of the
pandemic – the merger of the Just Eat and Takeaway
25 businesses is now valued at over £6bn – but it remains to
be seen to what extent our enthusiasm for ‘at home’ dining
20 remains undimmed.
Other sectors likely to see a marked and sustained uplift
15
in sales are consumer durables – car sales were extremely
weak throughout most of 2020 for example – home
10 entertainment technology, equipment which facilitates
home working and streaming entertainment services: Netflix,
5 Disney et al. As people seek to reward themselves after
months of lockdown containment and enforced saving,
0 increased consumer spending on personal and luxury
2015 2016 2017 2018 2019 2020 2021 products is also widely anticipated.
US Euro area UK
The Bankers Investment Trust owns positions in tech-enabled
Source, Refinitiv Datastream/Fathom Consulting as of July 2021 media companies Netflix (online streaming), Facebook
(social media) and Alphabet (YouTube) which have all seen
substantial growth in their userbase and revenue over the
last few years.
Source, Refinitiv Datastream/Fathom Consulting as of July 2021
5
14 15A TIME TO BE NIMBLE GLOSSARY
Some of the societal and consumer behaviours we’ve described are hard-wired, of course, Bond yields It includes controlling interest rates and the
and so we may well see a good degree of bounce-back as economies across the world The level of income on a security, typically supply of money. Monetary stimulus refers to
continue to re-open. People like working together, for example, and so offices are unlikely to be expressed as a percentage rate. Note, lower a central bank increasing the supply of money
redundant, although we will probably need less space. Home delivery is useful, but many would bond yields mean higher prices and vice versa. and lowering borrowing costs. Monetary
prefer to sit in a restaurant with friends, and so we should see bricks and mortar dining return tightening refers to central bank activity aimed at
over the coming year. A great many businesses have disappeared needless to say, particularly Gross domestic product (GDP) curbing inflation and slowing down growth in the
in saturated sectors, and so the silver lining to a particularly dark cloud is that competition will The value of all finished goods and services economy by raising interest rates and reducing
have lessened for the survivors. produced by a country, within a specific time the supply of money.
period (usually quarterly or annually). It is
It’s ironic to note that Bankers Investment Trust – one of the UK’s oldest listed vehicles – has usually expressed as a percentage comparison NAV Net asset value (NAV)
remained consistently fleet of foot in adapting the portfolio allocation to prevailing market to a previous time period and is a broad measure The total value of a fund’s assets less
conditions. Performance has been consistently impressive. Over the longer term, the share of a country’s overall economic activity. its liabilities.
price and NAV total return are both well ahead of the benchmark over five and 10 years.6 Over
the most recent financial year, with dividends reinvested, the net asset value (NAV) total return Inflation Premium
was 5.3%, outperforming the FTSE World Index total return of 4.3%, whilst the share price total The rate at which the prices of goods and When the market price of a security is thought
return was higher still, at 8.1%, due to the narrowing of the discount to NAV at which the shares services are rising in an economy. The CPI and to be more than its underlying value, it is said
are traded: a premium of 0.4% at the year-end compared to a discount of 2.2% for the previous RPI are two common measures. to be ‘trading at a premium’. Within investment
financial year.7 trusts, this is the amount by which the price per
IPO share of an investment trust is higher than the
There is, of course, an ever-present threat that robust growth prospects and all this new-found Initial public offering: when shares in a private value of its underlying net asset value.
demand generate inflation, pushing up bond yields and prompting central banks to be less company are offered to the public for the
accommodative with regard to monetary policy. Binges and hangovers do, after all, tend to go first time. Valuation
together. Despite that, the Organisation for Economic Co-operation and Development (OECD) Metrics used to gauge a company’s perfor-
is predicting that, of the G20 nations, only six will have restored per capita GDP to pre-pandemic Monetary policy mance, financial health, and expectations for
levels by the end of 2021. The UK is forecast to achieve that goal in mid-2022.8 Our current The policies of a central bank aimed at influencing future earnings eg, price to earnings (P/E) ratio
economic summer may well prove to resemble our summers in general therefore: pleasant, the level of inflation and growth in an economy. and return on equity (ROE).
warm, and fun but with low risk of overheating.
ANNUAL PERFORMANCE (CUM INCOME) (%)
Discrete year performance % change
Share Price Nav
(updated quarterly)
30/06/2020 to 30/06/2021 11.0 18.6
28/06/2019 to 30/06/2020 9.1 6.5
29/06/2018 to 28/06/2019 8.1 6.6
6
Source: Janus Henderson, The Bankers Investment Trust PLC factsheet, as at 30.06.21
7
Source: Janus Henderson factsheet, The Bankers Investment Trust PLC annual report, 2020
8
Source: OECD Economic Outlook, May 2021
30/06/2017 to 29/06/2018 11.5 12.4
30/06/2016 to 30/06/2017 27.6 19.4
All performance, cumulative growth and annual growth data is sourced from Morningstar
16 17IMPORTANT INFORMATION
References made to individual securities should not constitute or form part of any offer or
solicitation to issue, sell, subscribe, or purchase the security. Janus Henderson Investors, one
of its affiliated advisors, or its employees, may have a position mentioned in the securities
mentioned in the report.
For promotional purposes. Not for onward distribution. Before investing in an investment trust
referred to in this document, you should satisfy yourself as to its suitability and the risks involved,
you may wish to consult a financial adviser. Past performance is not a guide to future performance.
The value of an investment and the income from it can fall as well as rise and you may not get
back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s
particular circumstances and may change if those circumstances or the law change. Nothing
in this document is intended to or should be construed as advice. This document is not a
recommendation to sell or purchase any investment. It does not form part of any contract for the
sale or purchase of any investment. [We may record telephone calls for our mutual protection,
to improve customer service and for regulatory record keeping purposes.]
Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which
investment products and services are provided by Janus Capital International Limited (reg no. 3594615),
Henderson Global Investors Limited (reg. no. 906355), Henderson Investment Funds Limited (reg. no.
2678531), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and
Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and
Henderson Management S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated
by the Commission de Surveillance du Secteur Financier).
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and Knowledge Labs] are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus
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