Half Yearly Report

RNS Number : 1453O

Bankers Investment Trust PLC

24 June 2010

 



Page 1 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

This announcement contains regulated information

Interim Management Report:

Review of the period including material events and transactions

Compared to the first half of last year we would appear to have returned to a period of comparative normality. Indeed at first glance, the performance over the first half of our financial year appears steady, with the Net Asset Value per share rising by 12.2% compared to a rise in the FTSE All-Share Index of 10.8% and a rise of 14.3% in the 50/50 Composite Index.  However, as was the case during last year, stock markets continue to be characterised by periods of volatility leading to sharply rising or falling share prices on a monthly or weekly basis. When making longer term investment decisions in these periods, we should recognise that the fundamental valuations of and prospects for individual companies may become distorted by macro issues such as Greek default, Chinese slowdown or increasing LIBOR borrowing rates.

Until the end of 2009, investors remained optimistic that economic recovery would gather pace and analysts felt confident in terms of upgrading corporate prospects.  Generally consumer spending held up well in the face of limited job creation and even the obvious efforts of the Chinese administration to cool parts of their economy had a limited effect on stock prices.  Cracks in the bullish outlook began to appear early in the new year when the UK and European economies failed to come out of the recession at the same pace as the US, combined with the realisation that governments around the world just could not sustain their level of public spending.  Later in the period, the refinancing of Greece and austerity budgets announced by other countries running high budget deficits focussed investors' minds  on the likelihood that economic recovery will be hard to maintain and modest at best.

In my Chairman's statement in January, I made reference to the importance of the banking sector in terms of its shortage of capital and limited capacity to lend money.  This remains the case in western markets, where new lending, year on year, is now negative as companies are reducing their borrowings and consumers have limited access to or appetite for more debt.  However, the 2009 results from many companies exceeded expectations, exhibiting good growth in profits. Profit forecasts for 2010 and beyond have been increased on the back of further efficiency savings, lower levels of debt and reduced interest costs. However, investors seem reluctant to believe these projected increases in earnings unless revenue growth has been the key determining factor behind upgrades. 

Our performance in this period fell squarely between that of the UK market and our composite benchmark, with the latter being enhanced by the overseas element benefitting from the weakness in sterling.   In particular the sterling - US dollar rate moved in our favour from $1.65 on 31 October to $1.53 at the end of April, enhancing the returns from US equities.   While we have been increasing the portfolio's exposure to US$ assets in recent years (currently 19.4%), this still remains less than that of the 50/50 Composite Index (26.9%) and this underweight exposure largely explains why our performance in the period lagged the Composite Index.

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Page 2 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

The major change in the portfolio has been to reduce fixed interest holdings.  The fixed interest portfolio was purchased in late 2008 at a time when we held significant amounts of cash and as corporate bond yields rose into double digits.  While not quite picking the bottom, the subsequent performance in terms of income and capital from the bonds has far outstripped the returns from holding cash.  As dividend growth from equities resumes, it is our view that the prospects for equity returns look better than those for fixed interest.  Therefore we have begun selling bonds.

The gearing has risen gently in the period from 0.9% to 2.8%, through steadily investing the cash holdings.  The regions where we have increased our equity investment include the UK, because the fall in sterling should benefit exporters and valuations remain low despite a steady stream of profit upgrades to the multi-national companies listed in London.  The Pacific region remains a favoured area for investment and the weak markets there have given us an opportunity to raise exposure to nearly 13% of the portfolio.

Revenue return and dividends

This current year was always going to be a challenge in terms of rebalancing our investments from higher yielding bonds, the low interest rates on cash and the lingering effects of annualising previous cuts in dividends from holdings like HSBC.  Our significant revenue reserves, covering nearly 2.5 times our annual dividend, gave us the confidence that the transitional effects outlined above could be withstood and lay behind our forecast in January of a 4.3% rise in annual dividends in the current year, to 12.0p. Our second interim dividend of 3.0p per ordinary share will be paid on 31 August 2010.

We remain confident in reiterating this dividend target despite the effect on our income from BP's suspension of its dividends. The weakness in sterling has improved the translation value of our overseas dividends at a time when nearly 60% of our investments are denominated in currencies other than sterling.  Underlying dividend growth from equities has now turned positive year on year but we expect it to lag the growth in corporate profits over the shorter term.  There have also been positive outcomes from individual holdings, especially those that had passed paying dividends now distributing again, such as Barclays and J D Wetherspoon; the latter actually paying a higher dividend than previously. 

Related party transactions

Details of related party transactions are contained in the annual report.  There have been no material transactions with our related party during the six month period affecting the financial position or performance of the Group other than the investment in the Henderson Liquid Assets Fund, a money market fund, where we enjoy a higher rate of interest than has been on offer from the clearing banks (see note 3).

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Page 3 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

Outlook for the six months to 31 October 2010

Over the last 20 years, and maybe longer, there has been a sustained build up in the level of debt held by companies, financial institutions and consumers.  In bailing out all three groups over the last few years, much of this debt now persists as record levels of sovereign debt. It is patently obvious that goverments are realising now is the time to reduce spending. As the old quote goes, "if you find yourself in a hole, stop digging".  Accordingly, we are now witnessing austerity budgets across Europe and it is likely that in the early part of next year the US will need to address its own budget deficit (actually bigger as a percentage of GDP than Europe's).

Companies were early to address their high levels of borrowings and the anaemic recovery can partly be blamed on their lack of investment spending.  Companies turned sales into cash, didn't hire new staff or replace machinery and have been paying down borrowings for each of the last two years.  These actions will make them safer investments but the investment cycle does need to turn soon, with companies taking advantage of low interest rates to invest for future growth.

The big macro issues surrounding sovereign default or the future viability of the euro will not be resolved quickly and are likely to continue casting a shadow over equity markets.  However, we are investors in companies and not countries.  Corporate profitability is expected to continue its recovery, albeit we expect a lower trajectory than historically at this point in an economic recovery.  The volatility in markets is likely to be an ongoing feature but underlying equity valuations do not look stretched and offer attractive returns, especially compared to holding cash. In our view, an international spread of equity investments, selected prudently and offering fundamental value, continues to provide better prospects of growth and income than most other investment alternatives.

For further information contact:                                                            

Alex Crooke Fund Manager The Bankers Investment Trust PLC Telephone: [phone] or 07939 021208	Richard Brewster Chairman The Bankers Investment Trust PLC Telephone: [phone]
James de Sausmarez Director of Investment Trusts Henderson Global Investors Telephone: [phone]	Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

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Page 4 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

FINANCIAL HIGHLIGHTS

	(Unaudited)		(Audited)
	30 April		31 October		%
	2010		2009		Change
Assets
Net asset value per ordinary share (with debt at book value)	448.7p		399.9p		12.2
Ordinary share mid-market price	380.8p		347.5p		9.6
Discount (share price to net asset value)	15.1%		13.1%
Total assets less current liabilities (£'000)	£524,673		£473,863		10.7
Indices
FTSE All-Share Index	2,863.35		2,584.59		10.8
S&P 500 Composite Index	1,186.69		1,036.19		23.3	#
FTSE World Europe (ex UK) Index (£)	369.19		353.12		4.6
TOPIX (Tokyo First Section Index)	987.04		894.67		14.3	#
FTSE World (ex UK) Index (£)	341.59		290.33		17.7
50/50 FTSE All-Share Index/
FTSE World (ex UK) Index (£)	228.50		200.00	*	14.3
# - £ adjusted
* - rebased as at 31 October 2009
	(Unaudited)		(Unaudited)
	Half year ended		Half year ended
	30 April		30 April		%
	2010		2009		Change
Revenue
Gross revenue (£'000)	£8,145		£8,364		-2.6
Earnings per ordinary share	6.08p		5.84p		4.1

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Page 5 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

CONSOLIDATED INCOME STATEMENT

for the half year ended 30 April 2010

	(Unaudited) Half year ended 30 April 2010			(Unaudited) Half year ended 30 April 2009			(Audited) Year ended 31 October 2009
	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 on investments held at fair value through profit or loss	-	54,967	54,967	-	11,809	11,809	-	66,848	66,848
Investment income	7,988	-	7,988	7,829	-	7,829	15,596	-	15,596
Other operating income	157	-	157	535	-	535	893	-	893
Interest on VAT refunds	-	-	-	-	-	-	377	-	377
	---------	---------	---------	---------	---------	---------	---------	---------	---------
Total income	8,145	54,967	63,112	8,364	11,809	20,173	16,866	66,848	83,714
	---------	---------	---------	---------	---------	---------	---------	---------	---------
Expenses
Management fees	(431)	(232)	(663)	(491)	(264)	(755)	(982)	(529)	(1,511)
Write back of prior years' VAT	-	-	-	-	-	-	525	-	525
Other expenses	(327)	-	(327)	(291)	-	(291)	(562)	-	(562)
	---------	---------	---------	---------	---------	---------	---------	---------	---------
Profit before finance costs and taxation	7,387	54,735	62,122	7,582	11,545	19,127	15,847	66,319	82,166
Finance costs	(339)	(790)	(1,129)	(338)	(790)	(1,128)	(676)	(1,578)	(2,254)
	---------	---------	---------	---------	---------	---------	---------	---------	---------
Profit before taxation	7,048	53,945	60,993	7,244	10,755	17,999	15,171	64,741	79,912
Taxation	(254)	-	(254)	(643)	401	(242)	(1,797)	1,240	(557)
	---------	---------	---------	---------	---------	---------	---------	---------	---------
Profit for the period	6,794	53,945	60,739	6,601	11,156	17,757	13,374	65,981	79,355
	=====	=====	=====	=====	=====	=====	=====	=====	=====
Earnings per ordinary share (note 2)	6.08p	48.24p	54.32p	5.84p	9.86p	15.70p	11.83p	58.35p	70.18p

The total columns of this statement represent the Group's Income Statement, prepared in accordance with IFRS.  The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.  All items in the above statement derive from continuing operations.  All income is attributable to the equity shareholders of The Bankers Investment Trust PLC.  There are no minority interests.

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

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Page 6 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half year ended 30 April 2010

	Called up share capital	Share premium account	Capital  redemption reserve	Other capital reserves	Revenue reserve	Total
Half year ended 30 April 2010 (Unaudited)	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 October 2009	28,062	452	12,148	377,462	30,739	448,863
Buy back of 879,711 ordinary shares	(221)	-	221	(3,204)	-	(3,204)
Net profit from ordinary activities after tax	-	-	-	53,945	6,794	60,739
Payment of 3rd interim dividend (3.00p) in respect of the year ended 31 October 2009	-	-	-	-	(3,368)	(3,368)
Payment of final dividend (3.00p) in respect of the year ended 31 October 2009	-	-	-	-	(3,357)	(3,357)
	----------	----------	----------	----------	----------	----------
Balance at 30 April 2010	27,841	452	12,369	428,203	30,808	499,673
	======	======	======	======	======	======
	Called up share capital	Share premium account	Capital  redemption reserve	Other capital reserves	Revenue reserve	Total
Half year ended 30 April 2009 (Unaudited)	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 October 2008	28,290	452	11,920	314,783	30,216	385,661
Buy back of 50,000 ordinary shares	(13)	-	13	(143)	-	(143)
Net profit from ordinary activities after tax	-	-	-	11,156	6,601	17,757
Payment of 3rd interim dividend (2.93p) in respect of the year ended 31 October 2008	-	-	-	-	(3,315)	(3,315)
Payment of final dividend (2.93p) in respect of the year ended 31 October 2008	-	-	-	-	(3,314)	(3,314)
	----------	----------	----------	----------	----------	----------
Balance at 30 April 2009	28,277	452	11,933	325,796	30,188	396,646
	======	======	======	======	======	======
	Called up share capital	Share premium account	Capital  redemption reserve	Other capital reserves	Revenue reserve	Total
Year ended 31 October 2009 (Audited)	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 October 2008	28,290	452	11,920	314,783	30,216	385,661
Buy back of 913,774 ordinary shares	(228)	-	228	(3,302)	-	(3,302)
Net profit from ordinary activities after tax	-	-	-	65,981	13,374	79,355
Payment of 3rd interim dividend (2.93p) in respect of the year ended 31 October 2008	-	-	-	-	(3,315)	(3,315)
Payment of final dividend (2.93p) in respect of the year ended 31 October 2008	-	-	-	-	(3,314)	(3,314)
Payment of 1st interim dividend (2.75p) in respect of the year ended 31 October 2009	-	-	-	-	(3,111)	(3,111)
Payment of 2nd interim dividend (2.75p) in respect of the year ended 31 October 2009	-	-	-	-	(3,111)	(3,111)
	----------	----------	----------	----------	----------	----------
Balance at 31 October 2009	28,062	452	12,148	377,462	30,739	448,863
	======	======	======	======	======	======

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

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Page 7 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

CONSOLIDATED BALANCE SHEET

as at 30 April 2010

	(Unaudited)  30 April 2010	(Unaudited) 30 April 2009	(Audited) 31 October 2009
	£'000	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss	513,842	380,534	452,962
	----------	----------	----------
Current assets
Investment in cash fund (note 3)	8,300	25,000	13,500
Other receivables	5,367	3,942	2,207
Cash and cash equivalents	3,153	13,461	5,989
	----------	----------	----------
	16,820	42,403	21,696
	----------	----------	----------
Total assets	530,662	422,937	474,658
	----------	----------	----------
Current liabilities
Other payables	(5,989)	(1,291)	(795)
	----------	----------	----------
Total assets less current liabilities	524,673	421,646	473,863
Non-current liabilities
Debenture stocks	(25,000)	(25,000)	(25,000)
	----------	----------	----------
Net assets	499,673	396,646	448,863
	======	======	======
Equity attributable to equity shareholders
Called up share capital	27,841	28,277	28,062
Share premium account	452	452	452
Capital redemption reserve	12,369	11,933	12,148
Retained earnings:
Other capital reserves	428,203	325,796	377,462
Revenue reserve	30,808	30,188	30,739
	----------	----------	----------
Total equity	499,673	396,646	448,863
	======	======	======
Net asset value per ordinary share (note 4)	448.7p	350.7p	399.9p
	======	======	======

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

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Page 8 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

CONSOLIDATED CASH FLOW STATEMENT

for the half year ended 30 April 2010

	(Unaudited) Half year ended  30 April 2010	(Unaudited) Half year ended 30 April 2009	(Audited) Year ended 31 October 2009
	£'000	£'000	£'000
Net profit before taxation	60,993	17,999	79,912
Add back interest paid	1,128	1,128	2,254
Less: gains on investments held at fair value through profit or loss	(54,967)	(11,809)	(66,848)
(Increase)/decrease in accrued income	(438)	(1,298)	439
(Increase)/decrease in other debtors	(1)	1,271	1,278
Increase/(decrease) in other creditors	153	(28)	(33)
Net (purchases)/sales of investments	(6,032)	6,373	(10,909)
Net sale/(purchase) of cash fund	5,200	(25,000)	(13,500)
(Increase)/decrease in amounts due from brokers	(2,668)	11,395	11,395
Increase/(decrease) in amounts due to brokers	5,041	(750)	(1,241)
Scrip dividends included in investment income	-	-	(22)
	----------	----------	----------
Net cash inflow/(outflow) from operating activities before interest and taxation	8,409	(719)	2,725
Interest paid	(1,128)	(1,128)	(2,254)
Taxation on investment income	(307)	(220)	(544)
	----------	----------	----------
Net cash inflow/(outflow) from operating activities	6,974	(2,067)	(73)
Financing activities
Equity dividends paid	(6,725)	(6,629)	(12,851)
Purchase of ordinary shares	(3,204)	(143)	(3,302)
	----------	----------	----------
Net cash used in financing	(9,929)	(6,772)	(16,153)
	----------	----------	----------
Decrease in cash	(2,955)	(8,839)	(16,226)
Cash and cash equivalents at start of period	5,989	21,882	21,882
Realised profit on foreign currency	119	418	333
	----------	----------	----------
Cash and cash equivalents at end of period	3,153	13,461	5,989
	======	======	======

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

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Page 9 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

NOTES:

1.	Accounting policies
	The condensed half year financial statements have been prepared on the basis of the accounting policies set out in the Group's financial statements for the year ended 31 October 2009 and in accordance with IAS34.  The tax charge is based on overseas tax suffered during the period.
2.	Earnings per ordinary share
	The earnings per ordinary share figure is based on the net profit for the half year of £60,739,000 (half year ended 30 April 2009: £17,757,000; year ended 31 October 2009: £79,355,000) and on 111,820,912 (half year ended 30 April 2009: 113,119,216; year ended 31 October 2009: 113,068,847) 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 2010	(Unaudited) Half year ended 30 April 2009	(Audited) Year ended 31 October 2009
		£'000	£'000	£'000
	Net revenue profit	6,794	6,601	13,374
	Net capital profit	53,945	11,156	65,981
		----------	----------	----------
	Net total profit	60,739	17,757	79,355
		======	======	======
	Weighted average number of ordinary   shares in issue during each period	111,820,912	113,119,216	113,068,847
	Revenue earnings per ordinary share	6.08p	5.84p	11.83p
	Capital earnings per ordinary share	48.24p	9.86p	58.35p
		----------	----------	----------
	Total earnings per ordinary share	54.32p	15.70p	70.18p
		======	======	======

3.	Current asset investment
	The Group has a holding in Henderson Liquid Assets Fund, a money market fund that is used to hold what would otherwise be short term cash balances.  At 30 April 2010 this holding had a value of £8,300,000 (30 April 2009: £25,000,000; 31 October 2009: £13,500,000).
4.	Net asset value per ordinary share
	The net asset value per ordinary share is based on the net assets attributable to equity shareholders of £499,673,000 (30 April 2009: £396,646,000; 31 October 2009: £448,863,000) and on 111,366,339 (30 April 2009: 113,109,824; 31 October 2009: 112,246,050), being the number of ordinary shares in issue at the period end.
5.	Called up share capital At 30 April 2010 there were 111,366,339 ordinary shares of 25p each in issue (30 April 2009: 113,109,824; 31 October 2009: 112,246,050).  During the half year ended 30 April 2010 the Company bought 879,711 of its own issued ordinary shares in the market for cancellation (half year ended 30 April 2009: 50,000; year ended 31 October 2009: 913,774).  The cost of the share buy-backs, including stamp duty, amounted to £3,204,000 (half year ended 30 April 2009: £143,000; year ended 31 October 2009: £3,302,000).

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Page 10 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

6.	VAT on management fees
	While the Company has received back from HMRC 100% of the VAT which had been borne by the Company on management fees between 1990 and 1996, and 2000 and 2007, as well as simple interest on those amounts, there remains an amount outstanding relating both to VAT reclaims for 1996 to 2000 and compound interest for 1990 to 2007 which has not been recognised.  It is uncertain whether any further amounts will be recovered.
7.	Going concern
	The directors believe that it is appropriate to adopt the going concern basis in preparing the financial statements.  The assets of the Company consist mainly of securities that are readily realisable and, accordingly, the Company has adequate financial resources to continue in operational existence for the foreseeable future.
8.	Interim dividend
	The directors have declared a second interim dividend of 3.00p (2009: 2.75p) net per ordinary share, payable on 31 August 2010 to shareholders registered on 30 July 2010.   The shares will be quoted ex-dividend on 28 July 2010.  Based on the number of ordinary shares in issue at 23 June 2010 of 111,366,339 the cost of this dividend will be £3,341,000.  A first interim dividend of 3.00p (2009: 2.75p) was paid on 28 May 2010 at a total cost of £3,341,000.
9.	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 2010 and 2009 has not been audited or reviewed by the auditors.  The figures and financial information for the year ended 31 October 2009 have been extracted from the latest published accounts of the Company.  These accounts 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.
10.	Half year report
	A copy of the  report for the half year ended 30 April 2010 will be posted to shareholders in July and will be available on the Company's website (www.bankersinvestmenttrust.com).  Copies can also be requested thereafter from the Secretary at the Registered Office at 201 Bishopsgate, London EC2M 3AE.

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 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 and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

On behalf of The Bankers Investment Trust PLC

R D Brewster, Chairman

23 June 2010

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Page 11 of 11

THE BANKERS INVESTMENT TRUST PLC

Unaudited Results for the half year ended 30 April 2010

LARGEST INVESTMENTS

at 30 April 2010

The 50 largest investments (convertibles, fixed interest and all classes of equity in any one company being treated as one investment) were as follows:

	Market value £'000			Market value £'000
BP	20,142		Lloyds Banking*	4,033
HSBC	10,599		Industrial & Commercial Bank of China	3,828
Petroleo Brasileiros	9,972		Quorum Oil & Gas Technology	3,735
Vodafone	9,868		Amcor	3,685
GlaxoSmithKline	9,349		Galliford Try	3,593
Royal Dutch Shell	8,887		Anglo American	3,549
Catlin	8,431		Microsoft	3,500
British American Tobacco	8,360		Novartis	3,467
BG	7,012		QBE Insurance	3,445
Rolls-Royce	6,358		Smiths News	3,405
Barclays*	6,172		Christian Dior	3,345
Essar Energy	5,002		High Tech Computer	3,291
Jardine Lloyd Thompson	4,990		Anglogold Ashanti	3,268
Wetherspoon (J.D.)	4,957		Sino Land	3,267
Fraser & Neave	4,792		Incitec Pivot	3,198
Mitsubishi UFJ Financial	4,737		Santos	3,189
National Grid	4,553		Petrofac	3,184
Xstrata	4,400		ICAP	3,177
Aviva	4,390		Shire	3,175
DBS	4,387		Kasikornbank	3,063
Scottish & Southern Energy	4,340		Ascendas	3,049
Bank of China	4,138		ENI	3,001
Reckitt Benckiser	4,084		Cranswick	2,988
BHP Billiton	4,051		Shanghai Industrial	2,979
Impala Platinum	4,041		Intermediate Capital	2,954

These investments total £251,380,000 which represents 48.9% of the portfolio.

*Includes fixed interest.

GEOGRAPHICAL DISTRIBUTION

	Valuation of investments		Currency exposure of operational assets
	30 April 2010 %	31 October 2009 %	30 April 2010 %	31 October 2009 %
UK	45.3	45.9	42.6	44.5
Europe	9.6	8.6	10.0	9.0
North America	18.1	16.3	19.4	17.0
Japan	9.9	9.7	10.4	9.9
Pacific (ex Japan)	12.2	11.6	12.5	11.7
Emerging Markets	3.6	3.7	3.7	3.7
Fixed Interest	1.3	4.2	1.4	4.2
	------	------	------	------
	100.0	100.0	100.0	100.0
	====	====	====	====

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END

 

 

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