RNS Number : 1457K
Monks Investment Trust PLC
04 December 2025
RNS Announcement
The Monks Investment Trust PLC (MNKS)
Legal Entity Identifier: 213800MRI1JTUKG5AF64
Results for the six months to 31 October 2025
The following is the unaudited Interim Financial Report for the six months to 31 October 2025 which was approved by the Board on 3 December 2025.
Chairman's statement
Performance
The start of the current financial year coincided with uncertainty about the potential impact of US tariffs on the global economy and ended with the US market near its all-time high.
Against this backdrop, I am pleased to report that, during the six months to 31 October 2025, the Company produced a net asset value (NAV*) total return of +29.2% compared to +24.2% for the comparative index (FTSE World in sterling). The share price total return was +35.2%, as the share price discount to NAV narrowed.
Whilst six months represents too short a time frame on which to judge performance, this represents continued progress in the NAV and share price which have returned +21.5% and +29.1% over the past year, compared to the index return of +21.0%.
Commentary on the contributors to performance is contained in the Interim Management Report.
Capital allocation/Share buybacks
The Board believes that shareholders should expect the Company to attempt to restrict any discount to net asset value, with borrowings calculated at fair value, to mid-single digits, in normal market conditions. The Company stepped up its buyback activity over the summer and bought back approximately 19 million shares over the six months to 31 October 2025, at a cost of £268 million. The discount* narrowed from 10.1% to 5.9% over the six-month period.
Gearing
An advantage of the investment trust structure is that the Company can deploy borrowing to enhance returns in the long term. The Company has a mixture of long term, structural debt and shorter term, more flexible debt. At the period end, net gearing was 7.0% and the weighted average interest rate across all borrowings was 3.4%.
The Board
The Board is cognisant of the need to ensure regular refreshment of its composition, whilst also maintaining continuity and corporate memory. Karl Sternberg retired from the Board at the conclusion of the Annual General Meeting, and I succeeded him as Chairman. Compared to Karl and my earlier predecessors, I feel 'like a dwarf perched on the shoulders of a giant' (to quote William of Conches, 1123). I, and all Monks shareholders, owe Karl a great deal of gratitude for steering Monks for many years; I appreciate I have big shoes to fill.
As previously announced, Richard Curling joined the Board in October, adding investment trust experience and wide investment knowledge to the Board. I am confident that his skills and contribution will complement our board.
We have recruited four new directors over the past two years as part of our succession planning. We are currently in a transition period and expect the size of the Board to normalise in due course.
Belinda Richards will pass on her responsibilities as senior independent director to Stacey Parrinder-Johnson from 1 January 2026.
Belinda Richards and Sir Nigel Shadbolt will retire at the next AGM.
The Managers
In September, we announced that Spencer Adair, one of the managers of Monks, will retire on 31 March 2026. The portfolio will continue to be managed by the Global Alpha team at Baillie Gifford. This will comprise current managers Malcolm MacColl and Helen Xiong, who will be joined as co-managers by Michael Taylor from 1 April 2026.
Mr MacColl is a Managing Partner of Baillie Gifford and has managed Monks alongside Spencer since the Global Alpha team took over its management in March 2015. Ms Xiong, a partner of Baillie Gifford, has been a member of the Global Alpha team since 2020. Mr Taylor, a recently appointed partner of Baillie Gifford, began his investment career with Baillie Gifford in 2009. Following seven years at Marathon Asset Management, he returned in 2022 and has worked closely with the team since joining formally as a decision maker in April this year.
Spencer will remain in his current role until his retirement, continuing to work closely with Malcolm, Helen and Michael to ensure a smooth transition and handover of responsibilities. Spencer has spent 26 years at Baillie Gifford, joined the Global Alpha team at its establishment in 2005 and started work on Monks in 2015. He has earned the right to hang up his spurs and deserves thanks from our long standing shareholders.
The quote I mentioned earlier comes from William of Conches' notes on Priscian's Institutiones grammaticae (written around 500 AD). In it, he says 'the younger people see more clearly.' What Priscian and William meant is that younger generations are often more perceptive because they build on the knowledge and experience of those who came before them.
The relevant point for our shareholders is that transitions have happened for centuries in different walks of life; and even in fund management including Monks (perhaps over a shorter timespan). Helen, Michael and Malcolm (who will be delighted to be called 'young') have worked together with Spencer for a number of years (in the case of Malcolm decades). We believe that the process and culture of the Global Alpha team and Baillie Gifford generally, gives assurance to our shareholders that the investment approach and philosophy of Monks is unchanged during this transition.
Manager Review
The Board reassesses the Manager every year, in line with AIC guidelines. This year, the Board supplemented the annual AIC checklist with consideration of the effect of personnel change, any process changes that have occurred during the period, and changing market dynamics. This was the 'deep dive' that Karl mentioned in the last Annual Report. The objective is to ensure that we are ready for a future which, given the political fragmentation of the world, the rate of technological change plus the challenges within and around the fund management industry is going to be increasingly difficult to predict.
Your board undertook a dedicated session in December reviewing our managers' investment philosophy, process, resources, sourcing of ideas and buy / sell criteria. We also discussed lessons learned from the last few years and how that has augmented the investment process.
I will have more to report in the Annual Report, as there are areas the board is scheduled to dive into in future board meetings, but it is fair to report that we were pleased with the response of our managers and their thoughtful engagement and eagerness to refine their process for the benefit of our shareholders.
Outlook
Another version of Conches / Priscinaus' quote is often associated with Isaac Newton who was one of the key figures in the Scientific Revolution of the 16th-17th centuries. This laid the foundation for the subsequent Technological Revolution of the 18th-19th centuries.
As we find ourselves at the beginning of the AI revolution, it is worth remembering that ideas developed centuries ago - like Calculus (by Newton and Leibniz) and Newton's optimisation methods - are the foundation of the algorithms that power modern machine learning. Just as Newton could not have imagined inventions like the steam train or today's Nvidia GPUs, we cannot predict exactly what is coming next - but it is clear that many new opportunities will emerge.
Monks has a well-diversified portfolio of growth stocks. The Board believes that the Company's diversified approach offers investors exposure to a wide range of growth opportunities that are likely to drive returns in the years ahead.
Randeep Grewal
Chairman
3 December 2025
* NAV with debt at fair value. For a definition of terms used see Glossary of terms and Alternative Performance Measures towards the end of this announcement.
Total return information is sourced from Baillie Gifford/LSEG and relevant underlying index providers. See disclaimer on towards the end of this announcement.
Interim management report
The past six month period has been a record breaking one. Equity markets around the world reached new peaks, while Monks' NAV and share price clocked all-time highs in October. The beginning of the period was characterised by great uncertainty about the potential impact of US tariffs on the global economy. In fact, the tariffs imposed and the effects of those (to date) have not been as dramatic as first feared. Certainly, they have done little to quell investor excitement about the transformational potential of artificial intelligence (AI) which has left many asking if we are in an AI market bubble. Technology shifts have the unnerving ability to excite and disconcert. We believe that AI remains in its early 'innings', and its widespread adoption will transform large swathes of the economy (more on this later). However, we remain dedicated to building a Monks portfolio which is diversified and has many paths to compounding shareholder returns over the long term.
Perspective matters
Our North Star remains the identification and patient ownership of growing companies. There is a clear relationship over long periods between companies that grow their earnings the fastest and superior share price performance. Critically, great growth businesses come in all shapes and sizes. Indeed, the past twenty years tells us that the best performing stocks in the global index include (as you might have guessed) some of the world's largest technology businesses, such as current holdings Alphabet, Microsoft and Meta, and others which appear much more grounded in the past;AutoZone (car parts), Sherwin-Williams (paint) and Cintas (uniforms and cleaning supplies) have delivered returns that rank alongside their more illustrious peers. The portfolio is balanced across three growth profiles so that multiple engines can power returns: durable 'Stalwarts' with steadily growing cash flows (34% of portfolio), disruptive 'Rapid' growers with big addressable markets (35% of portfolio), and 'Cyclical' operators managed by skilled counter-cyclical capital allocators (31% of portfolio). This mix changes at the margin as opportunities shift, but the core idea is constant: Monks captures a range of growth opportunities both across and within our growth profiles.
Performance
In the first half of the financial year, the Company produced a net asset value (NAV) total return of +29.2% compared to +24.2% for the comparative index (FTSE World in sterling). The share price total return was +35.2%. This represents continued progress in the portfolio's NAV which is up +21.5% over the past year (modestly ahead of the index). Over the past decade, the NAV total return was +264.8%, while the share price return was +290.7%. The index delivered 273.0%. The table below shows the largest contributors and detractors from Monks' performance relative to its index over the past six months.
Top and bottom five relative stock contributors (%): Six months to end October 2025
Portfolio Weight (avg)
Index Weight (avg)
Active Weight
Total Return
Attribution
AeroVironment
1.4
0.0
1.4
148.2
1.3
Taiwan Semiconductor Manufacturing
3.8
1.1
2.7
76.2
1.2
Prosus N.V.
3.5
0.1
3.4
51.7
0.8
Comfort Systems
0.7
0.0
0.7
147.3
0.6
Applovin Corp
0.8
0.1
0.7
140.6
0.6
Elevance Health
2.0
0.1
1.9
(22.6)
(1.2)
Broadcom*
0.0
1.6
(1.6)
96.0
(0.9)
Alphabet
1.6
2.6
(1.1)
80.4
(0.5)
Tesla*
0.0
1.2
(1.2)
64.5
(0.5)
Paycom Software
0.9
0.0
0.9
(15.7)
(0.4)
* Not held
Source: Revolution, FTSE.
AeroVironment (military drones) was the standout contributor, reflecting record +140% year-on-year (y/y) revenue growth following its completion of the BlueHalo acquisition (which broadens its capabilities into maritime, space and electronic warfare). The underlying business (ex-acquisition) continues to grow strongly (revenues +20% y/y) and a multiyear military upgrade cycle should support growth for many years to come. TSMC (semiconductor manufacturing) also contributed meaningfully as insatiable AI demand supported +40% y/y revenue growth and +5% expansion in gross, operating and net margins. Management is investing for future growth too with new plants in Arizona (US), Japan and Germany better positioning the company to meet demand and grow its market leading position (it has over 60% global market share). We believe TSMC remains a foundational enabler of AI over the next decade and beyond.
The largest detractor was Elevance Health (health insurance). While revenues grew +14% y/y (pricing and continued growth in Medicare Advantage), earnings declined -21% y/y as its Medicaid (government sponsored) programme saw costs increase and profitability fall. Management repurchased over $2bn of shares year-to-date and has indicated a return to 12-15% earnings growth over the next couple of years as its ability to re-price contracts plays through. It is not all bad news, Carelon, its managed-care services arm, is growing strongly (revenues +36% y/y). Elsewhere, some stocks that we do not own (or where we own a smaller proportion than the index) have found strong favour in recent months amid AI fuelled excitement. This hindered relative performance. Examples include an underweight position in Alphabet and nothing in Broadcom or Tesla. These are deliberate choices and reflect the quality of return opportunity we can see elsewhere in the portfolio.
Maintaining many paths
We regularly ask a simple question about every holding: does our view remain differentiated? When a share price races ahead of business progress, we take profits - that is, we reduce the position and redeploy the capital into ideas with more room to run. Earlier this year, we trimmed several 'Rapid' growth positions, namely DoorDash (food delivery), Shopify (ecommerce), and Cloudflare (cloud and internet services) after strong share price performance. Execution remains impressive at each, but we prefer position sizes that reflect the upside we see.
We have continued to keep a steady hand on the valuation tiller. We sold Atlas Copco (industrial compressors), a world class business by any standard, because the qualities we admire had become fully reflected in the price. Selling a great company is never easy, but discipline on price creates room for broadening the base of growth within the portfolio. We also trimmed our position in Comfort Systems (heating ventilation and air conditioning installer). The company has benefited from a surge in data centre demand which has driven a doubling in its order book over the past two years. It is executing well and bringing innovative solutions to market, like its modular offerings which are built offsite and can cut production timeframes by up to 40%. While its shares re rated significantly (to 35x forward earnings), we have moderated the position size but remain supportive long term owners given its growing opportunity set. Similarly, we trimmed AutoZone (car part retailer) which has seen its share price rise +45% since we purchased the shares for Monks in June last year. It has been executing exceptionally well, opening over 300 net new stores over the past twelve months (its highest run-rate in 20 years) and driving steady sales growth. The shares have rerated to 27x forward earnings, so we have taken some profit.
We have redeployed capital into a wide range of new ideas. Dollar General (discount retailer) has over 20,000 locations across rural America and offers low-cost consumables and household items. Having executed poorly in recent years, the return of its former CEO (Todd Vasos) promises a turnaround. He has a formidable track record of execution, and we believe the 'dollar store' value proposition remains attractive. We think growth will be delivered via a combination of store roll outs and greater efficiency and is not reflected in its high-teens earnings multiple. We have also purchased positions in MSCI, whose data and analytics are deeply embedded in investment workflows and provide subscription like durability, and Coinbase, a trusted, regulated US digital asset platform. The story here is broader than trading: revenues from custody, payments (including stablecoins), and subscriptions are growing, which we think should make earnings more resilient over time.
Resilience you can feel: finances and culture
We have talked before about the importance of financial resilience. Companies with low leverage, strong free cash flow, and high margins have the flexibility to keep investing when competitors retreat. They can fund their own growth, pursue acquisitions, or expand capacity, not just surviving, but thriving as competitors are forced to retrench. The scorecard for the Monks portfolio in this regard shows up well. Importantly, we retain our growth focus with both sales and earnings growth forecast to grow materially faster than the market in the years ahead.
Monks (%)
FTSE World (%)
Debt/equity
24
50
Free Cash Flow margin
12.3
8.2
Return on Equity
20.3
15.3
Return on Invested Capital
12.4
9.3
Forecast (3Y) Revenue Growth (% p.a.)
8.4
4.9
Forecast (3Y) Earnings Growth (% p.a.)
13.7
10.5
As at 31st October 2025
Source: Factset
However, balance sheets alone do not build great businesses. It is culture that shapes the decisions that sustain leadership over decades. We have been encouraged to see examples of this at play within the Monks portfolio. We had become concerned that Brazilian digital challenger bank, Nu Holdings (owner of NuBank) might be starting to morph into a more traditional bank. However, CEO David Velez's willingness to embrace a cultural reset by revitalizing his senior leadership team and to sharpen the focus on entrepreneurial dynamism has restored our confidence. With a deepening competitive edge and a superbly profitable operating model, NuBank remains exceptionally well placed to continue winning share across Latin America. Elsewhere, Tobias Lutke's re-embracing of 'founder mode' at Shopify centres on his intensely hands-on leadership approach. Having previously felt the company had matured to a point where he was able to delegate more, he has decisively leant back in. This has ensured the company can execute on strategic decisions quickly, such as when deciding to exit their logistics business in 2023 to refocus on their 'main quest' of making commerce easier for all. The rewards for this clarity of vision have been evident in results, with Shopify maintaining exceptional y/y sales growth of over 20% in each of the last twelve quarters. This ability to pivot as necessary will remain a vital competitive advantage as AI continues to rapidly reshape the ecommerce landscape.
AI: Enablers and Monetisers
We retain a deep conviction that many technological trends can be relied upon to continue apace, independent of the political environment or the specifics of economic policy. AI may well be the single most important growth engine for the portfolio over the next decade.
Why do we believe this? AI has such broad applicability that it has the potential to act as an accelerant to growth across almost every industry. While commentators debate whether this will be a "good bubble" or not, we prefer to focus on individual opportunities. You can't avoid bubbles when you own the whole index. We only own what we think can earn shareholders a return.
Our broad growth approach means that we can access opportunities across the spectrum, from established compounders to early-stage disruptors and, critically, seemingly cyclical supply chain businesses. We estimate that just over 30% of the Monks portfolio is exposed to the AI value chain, divided equally between supply chain enablers and monetisers:
• AI enablers: we think the era-defining enablers will be TSMC (leading edge semiconductor fabricator) and NVIDIA (graphics processing chip designer). We think that the long runway for growth as the utility and ubiquity of AI expands is not reflected in their earnings multiples, at 21x and 30x, respectively. Elsewhere, we've found niche equipment suppliers where rising business quality is meeting long-lasting demand tailwinds. Disco Corporation (manufacturing equipment that slices, polishes and grinds semis) and Kokusai Electric (manufacturer of deposition machines for semis) both command majority global shares in their niches.
• AI monetisers: our largest exposures are in major US platform businesses - companies with vast datasets and distribution reach. Unusually, these incumbents are driving the revolution, not being disrupted by it. We also invest in established software businesses adapting successfully to AI such as Salesforce and Shopify. The recurring feature? Tech-led founders with business control. We are intrigued by this distinctly human edge powering enterprising AI adoption.
We are at an earlier stage of research on AI-native enterprises. Matching AI capability with customer utility and an effective profit engine will be the key unlock for these businesses. This is the thesis behind the recent addition to AppLovin and its AI powered digital advertising platform. It sells advertising inventory primarily in the gaming sector but is expanding into new markets. With costs essentially fixed in advance, a small change in conversion success has a dramatic impact on returns. With superior targeting, a pool of 1.4 billion active gamers in its core market and the potential to expand into ecommerce, AppLovin has realistic ambitions to grow to many multiples of its current size.
Healthcare: Priced for patience
Our portfolio's healthcare exposure has been a persistent detractor from Monks' performance. The sector at large has underperformed in recent years against a backdrop of higher inflation and interest rates (choking risk appetite for biotech funding), shortening time horizons among investors and political uncertainty about the direction of healthcare policy in the US. This is not to diminish stock picking mistakes that we have made.
Over the past 18 months, we have been reshaping Monks' healthcare exposure (around 7% of portfolio), reducing direct clinical risk and tilting towards businesses that provide the "picks and shovels" of medical progress. Take the recent purchase of Medpace, for instance, which designs and runs clinical trials for biotech firms developing treatments in obesity, neurodegeneration and oncology and beyond. As the funding environment normalises, Medpace stands to benefit from pent-up demand for outsourced research and development (R&D) - an approach to innovation that doesn't depend on any single scientific breakthrough. Similarly, The Ensign Group operates skilled nursing and post-acute care facilities that address the realities of ageing populations. These are durable franchises that thrive on continuity rather than volatility.
On the sales side we moved on from Genmab, the Danish biosciences company. Genmab's blockbuster blood cancer drug Darzalex accounts for over 70% of total revenues. After its partner decided not to license the next generation version of the drug, those revenues will disappear by 2031. While Genmab has three late-stage assets with blockbuster potential, its ability to commercialise those drugs is unproven, particularly as it shifts its model from working with partners and earning a royalties-based revenue stream, to building an in-house sales force. Despite its leading scientific expertise, we considered the execution risk attached to this new strategy, and the future Darzalex-sized hole in their revenue, too high to justify maintaining our holding.
As we look ahead, we are optimistic that a more stable macro environment and greater clarity on healthcare policy will provide a more supportive environment for the sector. However, our enthusiasm is stoked by companies and their growth potential. Monks' portfolio is deliberately balanced across the healthcare spectrum - from infrastructure and services (Elevance, Ensign) to enablers (Medpace, Thermo Fisher) and innovators (Novo Nordisk, Alnylam, Royalty Pharma). This diversification, coupled with a disciplined focus on fundamentals, should position Monks well in the years ahead.
Succession planning
In September we announced that Spencer Adair, one of the managers of Monks, will retire on 31 March 2026. The portfolio will continue to be managed by the Global Alpha team at Baillie Gifford. This will comprise current managers Malcolm MacColl and Helen Xiong, who will be joined as co-managers by Michael Taylor from 1 April 2026. Spencer will remain in his current role until his retirement, continuing to work closely with Malcolm, Helen and Michael to ensure a smooth transition and handover of responsibilities. There will be no change to the Company's investment objective or strategy. The full announcement can be found here: Future retirement of Portfolio Manager - 14:00:01 23 Sep 2025 - MNKS News article | London Stock Exchange
Outlook
We expect a broad set of return engines to drive Monks. While headlines will remain preoccupied with tariffs and election cycles, the underlying forces that matter most to long-term compounding -innovation, reinvestment and culture - are well represented in the portfolio. While a third of our capital is tied to the AI value chain, this exposure is broad and deep, and we deliberately recycle capital into new investments that we believe widen the portfolio's base of growth drivers. The portfolio's aggregate forecast earnings growth remains at a healthy premium (+30%) to the index, while its valuation is modest (on a forecast PE basis the portfolio's premium to the index is +12%). To us, this dynamic feels set up for success. Our aim is unchanged: a deliberately diversified collection of growth companies - Stalwarts, Rapid and Cyclical - so that multiple growth opportunities can power returns over the next five years and beyond.
Baillie Gifford & Co
Managers
3 December 2025
* NAV with debt at fair value.
For a definition of terms used see Glossary of terms and Alternative Performance Measures towards the end of this announcement.
Total return information is sourced from Baillie Gifford/LSEG and relevant underlying index providers. See disclaimer towards the end of this announcement.
Past performance is not a guide to future performance.
Responsibility statement
We confirm that to the best of our knowledge:
a. the condensed set of Financial Statements has been prepared in accordance with FRS 104 'Interim Financial Reporting';
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 their impact on the Financial Statements, and a description of principal risks and uncertainties for the remaining six months of the year); and
c. the Interim Financial 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).
On behalf of the Board
RS Grewal
Chairman
3 December 2025
The Managers' core investment beliefs
We believe the following features of Monks provide a sustainable basis for adding value for shareholders.
Active management
• We invest in attractive companies using a 'bottom-up' investment process.
• High active share* provides the potential for adding value.
• We look broadly for growth, spanning regions and sectors deliberately seeking opportunities where we think growth is least recognised.
• As the portfolio is very different from the index, we expect portfolio returns to vary - sometimes substantially and often for prolonged periods.
Committed growth investors
• In the long run, share prices follow fundamentals; growth drives returns.
• We aim to produce a portfolio of stocks with above average growth, this in turn underpins the ability of Monks to add value.
• We have a differentiated approach to growth, focusing on the type of growth that we expect a company to deliver. All holdings fall into one of three growth categories - as set out below.
• The use of these three growth categories ensures a diversity of growth drivers within a disciplined framework.
Long-term perspective
• Long-term holdings mean that company fundamentals are given time to drive returns.
• We prefer companies that are managed with a long-term mindset, rather than those that prioritise the management of market expectations.
• We believe our approach helps us focus on what is important during the inevitable periods of underperformance.
• Short-term portfolio results are random.
• As longer-term shareholders we are able to have greater influence on environmental, social and governance matters.
Dedicated team with clear decision‑making process
• Senior and experienced team drawing on the full resources of Baillie Gifford.
• Alignment of interests - the investment team responsible for Monks all own shares in the Company.
Portfolio construction
• Investments are held in three broad holding sizes, as set out below.
• This allows us to back our judgement in those stocks for which we have greater conviction, and to embrace the asymmetry of returns through 'incubator' positions in higher risk/return stocks.
• 'Asymmetry of returns' - some of our smaller positions will struggle and their share prices will fall; those that are successful may rise many fold. The latter should outweigh the former.
Low cost
• Investors should not be penalised by high management fees.
• Low turnover and trading costs benefit shareholders.
*For a definition of terms used see Glossary of terms and Alternative Performance Measures towards the end of this announcement.
List of investments
as at 31 October 2025
Name
Business
Value £'000
% of total assets *
NVIDIA
Graphics processing, gaming, AI technology
155,714
5.3
TSMC
Semiconductor manufacturer
135,222
4.6
Microsoft
Software and cloud computing
131,318
4.5
Amazon.com
Online retailer and cloud computing platform
121,936
4.2
Meta Platforms
Social networking website
113,661
3.9
Prosus
Media and ecommerce
104,971
3.6
The Schiehallion Fund
Global unlisted growth equity investment company
91,971
3.1
Alphabet
Online search engine
63,533
2.2
Service Corporation International
Funeral and crematoria services
59,939
2.1
Martin Marietta Materials
Cement and aggregates manufacturer
56,780
1.9
Mastercard
Electronic payments network and related services
54,433
1.9
CRH
Diversified building materials
52,620
1.8
Elevance Health
Healthcare insurer
51,659
1.8
DoorDash
Online commerce platform
50,811
1.7
Royalty Pharma
Biopharmaceutical royalties portfolio
50,016
1.7
Ryanair
Low cost European airline
46,200
1.6
Shopify
Online commerce platform
44,310
1.5
CATL
Battery manufacturer
41,535
1.4
AeroVironment
Reconnaissance and defence drones
41,327
1.4
Applovin
Connects businesses and developers to audiences in-app, on mobile and across streaming TV
34,942
1.2
ByteDance§
Online content platform including TikTok
33,290
1.1
Samsung Electronics
Multinational technology
32,122
1.1
MSCI†
Global provider of investment indexes, tools, and analytics
31,576
1.1
Kokusai Electric
Semiconductor manufacturer
30,021
1.0
FTAI Aviation
Aerospace company
29,151
1.0
Nu Holdings
Latin American digital banking and financial services
28,390
1.0
Markel
Markets and underwrites speciality insurance products
Operates skilled nursing and rehabilitation centres in multiple states
24,664
0.8
Autozone
Automotive replacement parts and accessories
24,102
0.8
Netflix
Subscription service for TV shows and movies
23,467
0.8
Uber Technologies
Multinational transportation company
23,049
0.8
Moody's
Credit rating agency
22,491
0.8
PDD Holdings
Chinese real estate development
22,491
0.8
Novo Nordisk
Diabetes and weight loss treatment
22,328
0.8
Paycom Software
Data analytical software products to manage the employment lifecycle
22,010
0.8
Medpace†
Runs and manages clinical trials for biotech and pharmaceutical companies
21,996
0.8
Advanced Drainage Systems
Manufacturer of pipes and drainage systems
21,718
0.8
Auto Trader†
The UK's leading used car website
21,885
0.7
Reliance Industries
Indian energy conglomerate
21,570
0.7
Block
Financial technology
21,434
0.7
Keyence†
Manufacturer of sensors
21,428
0.7
Texas Instruments
Semiconductors
21,157
0.7
Salesforce.com
Cloud based software company
21,122
0.7
Eaton
Industrial engineering products
20,873
0.7
Alnylam Pharmaceuticals
RNA interference based biotechnology
20,870
0.7
Cloudflare
Cloud based IT services
20,798
0.7
Edenred
Prepaid services company
20,573
0.7
Thermo Fisher Scientific
Scientific instruments, consumables and chemicals
19,972
0.7
Brookfield
Asset management company.
19,294
0.7
Stripe§
Payments platform
18,946
0.7
Adyen
Digital payments
18,911
0.6
CoStar
Commercial property portal
18,863
0.6
ON Semiconductor
Semiconductors supplier company
18,710
0.6
Dollar General†
Operates a chain of discount retail stores
18,633
0.6
Disco
Specialist cutting for semiconductors
18,155
0.6
Kweichow Moutai
Spirits manufacturer
18,147
0.6
Walt Disney
Media and theme parks
18,114
0.6
Petroleo Brasileiro ADR
Oil exploration and production
17,748
0.6
Comfort Systems USA
HVAC systems and solutions
17,141
0.6
MercadoLibre
Latin American ecommerce platform
16,887
0.6
Spotify
Online music streaming service
16,354
0.6
Space Exploration Technologies§
Space rockets and satellites
16,136
0.6
ASM International
Vapour deposition technology for semiconductors
15,926
0.6
Epiroc
Construction and mining machinery
15,553
0.5
Rakuten
Online retail and financial services
15,402
0.5
Datadog
Cloud based IT system monitoring application
15,110
0.5
Epic Games§
Gaming software developer
15,042
0.5
Nexans
Manufacturer of cables and electrical parts
13,817
0.5
Arthur J. Gallagher
Insurance broker
13,730
0.5
Nippon Paint
Japanese paint manufacturer
13,651
0.5
Bellway
Home construction
13,377
0.5
Coinbase†
Cryptocurrency trading and investment platform
13,054
0.5
Builders FirstSource
Building products for professional homebuilders
13,091
0.4
Li Auto
Chinese EV manufacturer
12,799
0.4
Auto1†
Online platform for buying and selling used cars in Europe
11,824
0.4
Dutch Bros
Coffee and drinks retailer
11,699
0.4
The Trade Desk
Advertising technology
11,614
0.4
Cosmos Pharmaceutical
Drug store chain
11,609
0.4
LVMH
Luxury goods
10,972
0.4
ICICI Prudential Life Insurance
Life insurance services
9,903
0.3
Brunswick Corp
Recreational boats, marine engines, marine parts and accessories
9,448
0.3
Topicus.com
Vertical market software and solutions
8,714
0.3
Floor & Décor Holdings
Floor and furnishing retailer
7,886
0.3
Willscot Holdings
Specialises in bespoke building space solutions
7,106
0.2
Ant International§
Chinese online payments and financial services business
4,625
0.2
Games Workshop†
Manufacturer and retailer of table top wargames and miniature figurines
4,197
0.1
Enphase Energy
Provider of energy management solutions
3,999
0.1
Olympus
Optoelectronic products
2,792
0.1
Silk Invest Africa Food Fund§
Africa focused private equity fund
2,284
0.1
CyberAgent
Japanese internet advertising and content
702
-
Samsara†
Provides technology to track and manage vehicles, equipment, and operations
577
-
Illumina CVR§
Gene sequencing business
58
-
Abiomed CVR
Medical implant manufacturer
-
-
Sberbank of Russia^
Russian commercial bank
-
-
Total investments
2,900,147
99.2
Net liquid assets*
23,614
0.8
Total assets*
2,923,761
100.0
Borrowings
(224,594)
(7.7)
Shareholders' funds
2,699,168
92.3
Listed equities %
Schiehallion Fund %
Unlisted securities # %
Net liquid assets * %
Total assets * %
31 October 2025
92.9
3.1
3.2
0.8
100.0
30 April 2025
94.1
2.6
2.0
1.3
100.0
* For a definition of terms used see Glossary of terms and Alternative Performance Measures towards the end of this announcement.
§ Denotes unlisted/private company holding.
^ Denotes suspended investment.
† New purchase during the period.
# Includes holdings in preference shares, ordinary shares and contingent value rights (CVR).
Portfolio positioning
as at 31 October 2025*†
Although the Managers' approach to stock picking is resolutely 'bottom-up' in nature and pays no attention to the structure of the index, it is essential to understand the risks of each investment and, in turn, where there may be concentrations of exposures. The charts below outline some key exposures of the portfolio.
Geographical
Geographical region
% at 31 October 2025
% at 30 April 2025
1
North America
61.8
58.0
2
Emerging Markets
15.3
13.9
3
Continental Europe
13.0
16.3
4
United Kingdom
4.4
3.4
5
Japan
3.8
5.1
6
Developed Asia
0.9
2.8
7
Net liquid assets
0.8
0.5
Sectoral
Sector
% at 31 October 2025
% at 30 April 2025
1
Technology
39.5
34.1
2
Industrials
17.9
19.3
3
Consumer Discretionary
17.4
18.9
4
Financials
11.1
10.2
5
Healthcare
7.4
9.5
6
Real Estate
1.5
1.5
7
Energy
1.4
2.0
8
Telecommunications
1.1
0.6
9
Consumer Staples
1.0
1.7
10
Basic Materials
0.9
1.7
11
Net liquid assets
0.8
0.5
* Expressed as a percentage of total assets.
† For a definition of terms used see Glossary of terms and Alternative Performance Measures towards the end of this announcement. Past performance is not a guide to future performance.
Investment portfolio by growth category
as at 31 October 2025*
Holding size
Growth stalwarts
33.8%
Rapid growth
34.9%
Cyclical growth
31.3%
Holding size
Highest conviction holdings c 2.0% each
Microsoft
4.5
NVIDIA
5.4
TSMC
4.7
Total in this holding size 55.2%
Amazon.com
4.2
Prosus
3.6
Martin Marietta Materials
2.0
Meta Platforms
3.9
The Schiehallion Fund
3.2
CRH
1.8
Alphabet
2.2
DoorDash
1.8
Royalty Pharma
1.7
Service Corporation International
2.1
Shopify
1.5
Ryanair
1.6
Mastercard
1.9
AeroVironment
1.4
CATL
1.4
Elevance Health
1.8
Applovin
1.2
Samsung Electronics
1.1
MSCI†
1.1
ByteDance§
1.1
Average sized holdings c1.0% each
Stella-Jones
0.9
Nu Holdings
1.0
FTAI Aviation
1.0
Total in this holding size 34.9%
S&P Global
0.9
Sea Limited
0.9
Markel
1.0
Auto Trader†
0.8
Coupang
0.9
Kokusai Electric
1.0
Moody's
0.8
PDD Holdings
0.8
Richemont
0.9
Autozone
0.8
Uber Technologies
0.8
CBRE Group
0.9
Paycom Software
0.8
Novo Nordisk
0.8
B3 Group
0.9
Thermo Fisher Scientific
0.7
Netflix
0.8
Ensign†
0.9
Texas Instruments
0.7
Block
0.7
Medpace†
0.8
Edenred
0.7
Stripe§
0.7
Eaton
0.7
Keyence†
0.7
Alnylam Pharmaceuticals
0.7
CoStar
0.7
Salesforce.com
0.7
Cloudflare
0.7
Advanced Drainage Systems
0.7
Walt Disney
0.6
Adyen
0.7
Brookfield
0.7
Dollar General†
0.6
Reliance Industries
0.7
Petroleo Brasileiro ADR
0.6
Kweichow Moutai
0.6
Spotify
0.6
Disco
0.6
Space Exploration Technologies§
0.6
Comfort Systems USA
0.6
MercadoLibre
0.6
ON Semiconductor
0.6
Incubator holdings c0.5% each
Arthur J. Gallagher
0.5
Datadog
0.5
ASM International
0.5
Total in this holding size 9.9%
Cosmos Pharmaceutical
0.4
Coinbase†
0.5
Nexans
0.5
LVMH
0.4
Epic Games§
0.5
Epiroc
0.5
Topicus.com
0.3
Dutch Bros
0.4
Rakuten
0.5
Games Workshop†
0.1
Auto1†
0.4
Nippon Paint
0.5
Olympus
0.1
The Trade Desk
0.4
Bellway
0.5
Li Auto
0.4
Builders FirstSource
0.5
ICICI Prudential Life Insurance
0.3
Floor & Décor Holdings
0.3
Ant International§
0.2
Brunswick Corp
0.3
Enphase Energy
0.1
Willscot Holdings
0.2
Samsara†
-
Silk Invest Africa Food Fund
0.1
Abiomed CVR
-
Sberbank of Russia^
-
CyberAgent
-
Illumina CVR§
-
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on towards the end of this announcement.
§ Denotes unlisted/private company investment.
^ Denotes suspended investment.
† New purchase during the period.
Income statement
(unaudited)
For the six months ended 31 October 2025
For the six months ended 31 October 2024
For the year ended 30 April 2025 (audited)
Notes
Revenue £'000
Capital £'000
Total £'000
Revenue £'000
Capital £'000
Total £'000
Revenue £'000
Capital £'000
Total £'000
Gains/(losses) on investments
-
648,363
648,363
-
145,724
145,724
-
(18,354)
(18,354)
Currency gains/(losses)
-
(821)
(821)
-
132
132
-
(1,342)
(1,342)
Income from investments and interest receivable
12,644
-
12,644
13,688
-
13,688
25,953
-
25,953
Investment management fee
3
(4,967)
-
(4,967)
(4,913)
-
(4,913)
(9,707)
-
(9,707)
Other administrative expenses
(992)
-
(992)
(938)
-
(938)
(1,965)
-
(1,965)
Net return before finance costs and taxation
6,685
647,542
654,227
7,837
145,856
153,693
14,281
(19,696)
(5,415)
Finance cost of borrowings
(4,014)
-
(4,014)
(4,297)
-
(4,297)
(8,546)
-
(8,546)
Net return on ordinary activities before taxation
2,671
647,542
650,213
3,540
145,856
149,396
5,735
(19,696)
(13,961)
Tax on ordinary activities
4
(1,047)
87
(960)
(1,142)
(957)
(2,099)
(2,219)
(575)
(2,794)
Net return on ordinary activities after taxation
1,624
647,629
649,253
2,398
144,899
147,297
3,516
(20,271)
(16,755)
Net return per ordinary share
5
0.90p
359.22p
360.12p
1.15p
69.66p
70.81p
1.75p
(10.08p)
(8.33p)
The total column of this statement represents the profit and loss account of the Company. The supplementary revenue and capital columns are prepared under guidance issued by the Association of Investment Companies.
All revenue and capital items in this statement derive from continuing operations.
A Statement of Comprehensive Income is not required as the Company does not have any other comprehensive income and the net return on ordinary activities after taxation is both the profit and total comprehensive income for the period.
Balance sheet
(unaudited)
Notes
At 31 October 2025 £'000
At 30 April 2025 (audited) £'000
Fixed assets
Investments held at fair value through profit or loss
7
2,900,147
2,528,471
Current assets
Debtors
30,752
3,917
Cash and cash equivalents
23,626
21,606
54,378
25,523
Creditors
Amounts falling due within one year
(80,180)
(60,925)
Net current liabilities
(25,802)
(35,402)
Total assets less current liabilities
2,874,345
2,493,069
Creditors
Amounts falling due after more than one year:
Loan notes
8
(174,594)
(173,415)
Provision for tax liability
9
(583)
(748)
(175,177)
(174,163)
Net assets
2,699,168
2,318,906
Capital and reserves
Share capital
12,659
12,659
Share premium account
433,714
433,714
Capital redemption reserve
8,700
8,700
Capital reserve
2,170,781
1,791,234
Revenue reserve
73,314
72,599
Shareholders' funds
10
2,699,168
2,318,906
Shareholders' funds per ordinary share (borrowings at book value)
10
1,601.8p
1,235.9p
Net asset value per ordinary share* (borrowings at par value)
1,601.8p
1,235.9p
Net asset value per ordinary share* (borrowings at fair value)
1,634.5p
1,265.2p
Ordinary shares in issue
168,499,530
187,622,666
* For a definition of terms used see Glossary of terms and Alternative Performance Measures towards the end of this announcement.
Statement of changes in equity
(unaudited)
For the six months ended 31 October 2025
Notes
Share capital £'000
Share premium account £'000
Capital redemption reserve £'000
Capital reserve * £'000
Revenue reserve £'000
Shareholders' funds £'000
Shareholders' funds at 1 May 2025
12,659
433,714
8,700
1,791,234
72,599
2,318,906
Net return on ordinary activities after taxation
-
-
-
647,629
1,624
649,253
Ordinary shares bought back
11
-
-
-
(268,082)
-
(268,082)
Dividends paid during the period
6
-
-
-
-
(909)
(909)
Shareholders' funds at 31 October 2025
12,659
433,714
8,700
2,170,781
73,314
2,699,168
For the six months ended 31 October 2024
Notes
Share capital £'000
Share premium account £'000
Capital redemption reserve £'000
Capital reserve * £'000
Revenue reserve £'000
Shareholders' funds £'000
Shareholders' funds at 1 May 2024
12,659
433,714
8,700
2,132,609
73,455
2,661,137
Net return on ordinary activities after taxation
-
-
-
144,899
2,398
147,297
Ordinary shares bought back
11
-
-
-
(176,217)
-
(176,217)
Dividends paid during the period
6
-
-
-
-
(4,372)
(4,372)
Shareholders' funds at 31 October 2024
12,659
433,714
8,700
2,101,291
71,481
2,627,845
* The Capital Reserve balance at 31 October 2025 includes holding gains on investments of £1,188,044,000 (31 October 2024 - gains of £1,008,555,000).
Condensed cash flow statement
(unaudited)
Notes
Six months to 31 October 2025 £'000
Six months to 31 October 2024 £'000
Cash flows from operating activities
Net return on ordinary activities before taxation
650,213
149,396
Net gains on investments
(648,363)
(145,724)
Currency losses/(gains)
821
(132)
Finance costs of borrowings
4,014
4,297
Overseas tax incurred
(1,162)
(2,869)
Changes in debtors and creditors
957
1,172
Cash from operations*
6,480
6,140
Interest paid
(4,032)
(4,325)
Net cash inflow from operating activities
2,448
1,815
Net cash inflow from investing activities
262,124
176,598
Cash flows from financing activities
Equity dividends paid
6
(909)
(4,372)
Ordinary shares bought back
(261,998)
(170,449)
Borrowings drawn down
50,000
-
Borrowings repaid
(50,000)
-
Net cash outflow from financing activities
(262,907)
(174,821)
Increase in cash and cash equivalents
1,665
3,592
Exchange movements
355
(461)
Cash and cash equivalents at start of period
21,606
38,622
Cash and cash equivalents at end of period
23,626
41,753
* Cash from operations includes dividends received of £12,873,000 (31 October 2024 - £13,123,000) and deposit interest received of £230,000 (31 October 2024 - £940,000).
Notes to the condensed financial statements
(unaudited)
01 Basis of accounting
The condensed Financial Statements for the six months to 31 October 2025 comprise the statements set out above together with the related notes below. They have been prepared in accordance with FRS 104 'Interim Financial Reporting' and the AIC's Statement of Recommended Practice issued in November 2014 and updated in July 2022 with consequential amendments. They have not been audited or reviewed by the Auditor pursuant to the Auditing Practices Board Guidance on 'Review of Interim Financial Information'. The Financial Statements for the six months to 31 October 2025 have been prepared on the basis of the same accounting policies as set out in the Company's Annual Report and Financial Statements at 30 April 2025.
Going concern
The Directors have considered the Company's principal risks and uncertainties, as set out above, together with the Company's current position, investment objective and policy, the level of demand for the Company's shares, the nature of its assets, its liabilities and projected income and expenditure. The Board has, in particular, considered the impact of heightened market volatility owing to macroeconomic and geopolitical concerns and reviewed the results of specific leverage and liquidity stress testing, but does not believe the Company's going concern status is affected. It is the Directors' opinion that the Company has adequate resources to continue in operational existence for the foreseeable future. The vast majority of the Company's investments are readily realisable and can be sold to meet its liabilities as they fall due. All borrowings require the prior approval of the Board. Gearing levels and compliance with covenants are reviewed by the Board on a regular basis. The Company has continued to comply with the investment trust status requirements of section 1158 of the Corporation Tax Act 2010 and the Investment Trust (Approved Company) Regulations 2011. Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these Financial Statements and confirm that they are not aware of any material uncertainties which may affect the Company's ability to continue to do so over a period of at least twelve months from the date of approval of these Financial Statements.
02 Financial information
The financial information contained within this Interim Financial Report does not constitute statutory accounts as defined in sections 434 to 436 of the Companies Act 2006. The financial information for the year ended 30 April 2025 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The Auditor's Report on those accounts was not qualified, did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying its report, and did not contain statements under sections 498(2) or (3) of the Companies Act 2006.
03 Investment managers
Baillie Gifford & Co Limited, a wholly owned subsidiary of Baillie Gifford & Co, has been appointed by the Company as its Alternative Investment Fund Managers (AIFM) and Company Secretary. The investment management function has been delegated to Baillie Gifford & Co. The management agreement can be terminated on six months' notice. The annual management fee is 0.45% on the first £750 million of total assets, 0.33% on the next £1 billion of total assets and 0.30% on the remaining total assets. For fee purposes, total assets is defined as the total value of all assets held less all liabilities (other than any liability in the form of debt intended for investment purposes) and excludes the value of the Company's holding in The Schiehallion Fund a closed-ended investment company managed by Baillie Gifford & Co. The Company does not currently hold any other collective investment vehicles managed by Baillie Gifford & Co. Where the Company holds investments in open-ended collective investment vehicles managed by Baillie Gifford, such as OEICs, Monks' share of any fees charged within that vehicle will be rebated to the Company. All debt drawn down during the periods under review is intended for investment purposes.
04 Tax on ordinary activities
The revenue tax charge arises from withholding tax suffered on overseas dividends. The capital tax charge results from the Provision for Tax Liability in respect of Indian capital gains tax as detailed in note 9.
05 Net return per ordinary share
Six months to 31 October 2025 £'000
Six months to 31 October 2024 £'000
Year to 30 April 2025 (audited) £'000
Revenue return on ordinary activities after taxation
1,624
2,398
3,516
Capital return on ordinary activities after taxation
647,629
144,899
(20,271)
Total net return
649,253
147,297
(16,755)
Net return per ordinary share is based on the above totals of revenue and capital and on 180,288,720 (31 October 2024 - 208,004,715; 30 April 2025 - 201,138,932) ordinary shares, being the weighted average number of ordinary shares in issue during the period.
There are no dilutive or potentially dilutive shares in issue.
06 Dividends
Six months to 31 October 2025 £'000
Six months to 31 October 2024 £'000
Year to 30 April 2025 (audited) £'000
Amounts recognised as distributions in the period: Previous year's final dividend of 0.5p (2024 - 2.10p), paid 16 September 2025
909
4,372
4,372
Amounts paid and payable in respect of the period: Final dividend (2025 - 0.5p)
-
-
909
07 Fair value hierarchy
The Company's investments are financial assets held at fair value through profit or loss. The fair value hierarchy used to analyse the basis on which the fair values of such financial instruments are measured is described below. Fair value measurements are categorised on the basis of the lowest level input that is significant to the fair value measurement.
Level 1 - using unadjusted quoted prices for identical instruments in an active market;
Level 2 - using inputs, other than quoted prices included within Level 1, that are directly or indirectly observable (based on market data); and
Level 3 - using inputs that are unobservable (for which market data is unavailable).
An analysis of the Company's financial asset investments based on the fair value hierarchy described above is shown below.
As at 31 October 2025
Level 1 £'000
Level 2 £'000
Level 3 £'000
Total £'000
Listed equities
2,717,795
91,971
-
2,809,766
Unlisted securities
-
-
90,381
90,381
Total financial asset investments
2,717,795
91,971
90,381
2,900,147
As at 30 April 2025 (audited)
Level 1 £'000
Level 2 £'000
Level 3 £'000
Total £'000
Listed equities
2,379,564
68,420
-
2,447,984
Unlisted securities
-
-
80,487
80,487
Total financial asset investments
2,379,564
68,420
80,487
2,528,471
The fair value of listed investments is either bid price or last traded price depending on the convention of the exchange on which the investment is listed. Listed Investments are categorised as Level 1 if they are valued using unadjusted quoted prices for identical instruments in an active market and as Level 2 if they do not meet all these criteria but are, nonetheless, valued using market data. Unlisted investments are valued at fair value by the Directors following a detailed review and appropriate challenge of the valuations proposed by the Managers. The Managers' unlisted investment policy applies methodologies consistent with the International Private Equity and Venture Capital Valuation Guidelines ('IPEV'). These methodologies can be categorised as follows: (a) market approach (multiples, industry valuation benchmarks and available market prices); (b) income approach (discounted cash flows); and (c) replacement cost approach (net assets). The Company's holdings in unlisted investments are categorised as Level 3 as unobservable data is a significant input to their fair value measurements.
08 Financial liabilities
31 October 2025 £'000
30 April 2025 £'000
Due within one year:
Royal Bank of Scotland International Limited
50,000
50,000
Due after more than one year:
£60 million 1.86% notes 2054
59,911
59,910
£40 million 1.77% notes 2045
39,959
39,958
¥2,500 million 2.17% notes 2037
12,351
13,122
€18 million 4.55% notes 2035
15,813
15,319
€35 million 4.29% notes 2033
30,747
29,787
€18 million 4.30% notes 2030
15,813
15,319
224,594
223,415
The fair value of borrowings at 31 October 2025 was £169,682,000 (30 April 2025 - £168,444,000).
09 Provision for tax liability
The tax liability provision at 31 October 2025 of £583,000 (30 April 2025 - £748,000) relates to a potential liability for Indian capital gains tax that may arise on the Company's Indian investments should they be sold in the future, based on the net unrealised taxable capital gain at the period end and on enacted Indian tax rates. The amount of any future tax amounts payable may differ from this provision, depending on the value and timing of any future sales of such investments and future Indian tax rates.
10 Shareholders' funds
31 October 2025
30 April 2025
Shareholders' funds
£2,699,168,000
£2,318,906,000
Number of ordinary shares in issue excluding treasury shares
168,499,530
187,622,666
Shareholders' funds per ordinary share
1,601.8p
1,235.9p
The shareholders' funds figures above have been calculated after deducting borrowings at book value, in accordance with the provisions of FRS 104. Reconciliations between shareholders' funds and net asset values, calculated after deducting borrowings at par value and fair value, are shown towards the end of this announcement.
11 Share capital
In the six months to 31 October 2025 the Company bought back 19,123,136 ordinary shares into treasury (31 October 2024 - 15,015,000 shares bought back). No shares were issued during the period and 84,671,930 shares were held in treasury at 31 October 2025 (31 October 2024 - 54,055,794, 30 April 2025 - 65,548,794). At 31 October 2025, the Company had authority to buy back 19,818,043 shares and to allot, or sell from treasury, 26,217,332 shares.
12 Related party transactions
There have been no transactions with related parties during the first six months of the current financial year that have materially affected the financial position or the performance of the Company during that period and there have been no changes in the related party transactions described in the last Annual Report and Financial Statements that could have had such an effect on the Company during that period.
Baillie Gifford - valuing private companies
We aim to hold our private company investments at 'fair value' i.e., the price that would be paid in an open-market transaction. Valuations are adjusted both during regular valuation cycles and on an ad hoc basis in response to 'trigger events'. Our valuation process ensures that private companies are valued in both a fair and timely manner.
The valuation process is overseen by a valuations group at Baillie Gifford which takes advice from an independent third party (S&P Global). The valuations group is independent from the investment team, with all voting members being from different operational areas of the firm, and the portfolio managers only receive final valuation notifications once they have been applied.
We revalue the private holdings on a three-month rolling cycle, with one-third of the holdings reassessed each month. During stable market conditions, and assuming all else is equal, each investment would be valued four times in a twelve month period. For investment trusts, the prices are also reviewed twice per year by the respective investment trust boards and are subject to the scrutiny of external auditors in the annual audit process.
Beyond the regular cycle, the valuations team also monitors the portfolio for certain 'trigger events'. These may include: changes in fundamentals; a takeover approach; an intention to carry out an Initial Public Offering (IPO); company news which is identified by the valuation team or by the portfolio managers or significant changes to the valuation of comparable public companies. Any ad hoc change to the fair valuation of any holding is implemented swiftly and reflected in the next published NAV. There is no delay.
The valuations team also monitors relevant market indices on a weekly basis and updates valuations in a manner consistent with our external valuer's (S&P Global) most recent valuation report where appropriate. When market volatility is particularly pronounced the team undertakes these checks daily.
In addition to the 3.2% of the portfolio holdings in direct private company investments, 3.1% of the portfolio is in The Schiehallion Fund, a closed ended investment company investing predominantly in private companies, which Monks values by reference to its market price.
Glossary of terms and Alternative Performance Measures ('APM')
An Alternative Performance Measure is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework.
Total assets
This is the Company's definition of adjusted total assets, being the total value of all assets held less all liabilities (other than liabilities in the form of borrowings).
Shareholders' funds
Shareholders' funds is the value of all assets held less all liabilities, with borrowings deducted at book cost.
Net Asset Value (APM)
Net Asset Value (NAV) is the value of all assets held less all liabilities, with borrowings deducted at either par value or fair value as described below. Per share amounts are calculated by dividing the relevant figure by the number of ordinary shares in issue.
Net Asset Value (borrowings at par value) (APM)
Borrowings are valued at nominal par value. A reconciliation from shareholders' funds (borrowings at book value) to net asset value after deducting borrowings at par value is provided below.
31 October 2025 £'000
31 October 2025 per share
30 April 2025 £'000
30 April 2025 per share
Shareholders' funds (borrowings at book value)
2,699,168
1,601.8p
2,318,906
1,235.9p
Add: book value of borrowings
224,594
133.3p
223,415
119.1p
Less: par value of borrowings
(224,724)
(133.3p)
(223,547)
(119.1p)
Net asset value (borrowings at par value)
2,699,038
1,601.8p
2,318,774
1,235.9p
The per share figures above are based on 168,499,530 (30 April 2025 - 187,622,666) ordinary shares of 5p, being the number of ordinary shares in issue at the period end excluding treasury shares.
Net Asset Value (borrowings at fair value) (APM)
Borrowings are valued at an estimate of market worth. The fair values of the loan notes are calculated using a comparable debt approach, by reference to a basket of corporate debt. The fair value of the Company's short term bank borrowings is equivalent to its book value.
A reconciliation from shareholders' funds (borrowings at book value) to net asset value after deducting borrowings at fair value is provided below.
31 October 2025 £'000
31 October 2025 per share
30 April 2025 £'000
30 April 2025 per share
Shareholders' funds (borrowings at book value)
2,699,168
1,601.8p
2,318,906
1,235.9p
Add: book value of borrowings
224,594
133.3p
223,415
119.1p
Less: fair value of borrowings
(169,682)
(100.7p)
(168,444)
(89.8p)
Net asset value (borrowings at fair value)
2,754,080
1,634.5p
2,373,877
1,265.2p
The per share figures above are based on 168,499,530 (30 April 2025 - 187,622,666) ordinary shares of 5p, being the number of ordinary shares in issue at the period end excluding treasury shares.
Net liquid assets
Net liquid assets comprise current assets less current liabilities (excluding borrowings) and provisions for deferred liabilities.
Discount/premium (APM)
As stock markets and share prices vary, an investment trust's share price is rarely the same as its NAV. When the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount is calculated by subtracting the NAV per share from the share price and is usually expressed as a percentage of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium.
31 October 2025
30 April 2025
Closing NAV per share (borrowings at par)
(a)
1,601.8p
1,235.9p
Closing NAV per share (borrowings at fair value)
(b)
1,634.5p
1,265.2p
Closing share price
(c)
1,538.0p
1,138.0p
Discount to NAV with borrowings at par
(c - a) ÷ a
(4.0%)
(7.9%)
Discount to NAV with borrowings at fair value
(c - b) ÷ b
(5.9%)
(10.1%)
Active share (APM)
Active share, a measure of how actively a portfolio is managed, is the percentage of the listed equity portfolio that differs from its comparative index. It is calculated by deducting from 100 the percentage of the portfolio that overlaps with the comparative index. An active share of 100 indicates no overlap with the index and an active share of zero indicates a portfolio that tracks the index.
Total return (APM)
The total return is the return to shareholders after reinvesting the net dividend on the date that the share price goes ex-dividend, as detailed below.
Net Asset Value total return
31 October 2025 NAV (par)
31 October 2025 NAV (fair)
Closing NAV per share
(a)
1,601.8p
1,634.5p
Dividend adjustment factor*
(b)
1.0003
1.0003
Adjusted closing NAV per share
(c = a x b)
1,602.3p
1,635.0p
Opening NAV per share
(d)
1,235.9p
1,265.2p
Total return
(c ÷ d) -1
29.6%
29.2%
* The dividend adjustment factor is calculated on the assumption that the dividend of 0.5p paid by the Company during the period was reinvested into shares of the Company at the cum income NAV at the ex-dividend date.
Share price total return
31 October 2025 share price
Closing share price
(a)
1,538.0p
Dividend adjustment factor*
(b)
1.0003
Adjusted closing share price
(c = a x b)
1,538.5p
Opening share price
(d)
1,138.0p
Total return
(c ÷ d) -1
35.2%
* The dividend adjustment factor is calculated on the assumption that the dividend of 0.5p paid by the Company during the period was reinvested into shares of the Company at the share price at the ex-dividend date.
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other public company, an investment trust can borrow money to invest in additional investments for its portfolio. The effect of the borrowing on the shareholders' assets is called 'gearing'. If the Company's assets grow, the shareholders' assets grow proportionately more because the debt remains the same. But if the value of the Company's assets falls, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets. The level of gearing can be adjusted through the use of derivatives which affect the sensitivity of the value of the portfolio to changes in the level of markets.
Gross gearing, also referred to as potential gearing is the Company's borrowings expressed as a percentage of shareholders' funds (a ÷ c in the table below).
Net gearing, also referred to as invested or equity gearing is borrowings at book value less cash and cash equivalents (any certificates of deposit are not deducted) expressed as a percentage of shareholders' funds (b ÷ c in the table below)*.
Effective gearing, as defined by the Board and Managers of Monks, is the Company's borrowings at par less cash, brokers' balances and investment grade bonds maturing within one year, expressed as a percentage of shareholders' funds*.
* As adjusted to take into account the gearing impact of any derivative holdings.
