REG - Monks Inv.Trust - Monks Investment Trust Interim Financial Report
04/12/2025 07:00
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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 Index Weight (avg) Active Weight Total Return Attribution
(avg)
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
(https://www.londonstockexchange.com/news-article/MNKS/future-retirement-of-portfolio-manager/17245119)
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 % of total
£'000 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 34,942 1.2
streaming TV
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 27,898 1.0
B3 Group Brazilian stock exchange operator 26,789 0.9
Coupang South Korean ecommerce 26,609 0.9
Sea Limited Online and digital gaming 26,296 0.9
Richemont Luxury goods 26,172 0.9
CBRE Group Commercial real estate 25,838 0.9
S&P Global Credit rating agency 25,469 0.9
Stella-Jones Industrial pressure treated wood products manufacturer 25,030 0.9
Ensign(†) 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 Schiehallion Unlisted Net liquid Total
equities Fund securities (#) assets * 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 % at
31 October
30 April
2025
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 % at
31 October
2025 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 Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'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 At 30 April
2025 2025
£'000 (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 Share Capital Capital Revenue Shareholders'
capital premium redemption reserve * reserve funds
£'000 account reserve £'000 £'000 £'000
£'000 £'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 Share Capital Capital Revenue Shareholders'
capital premium redemption reserve * reserve funds
£'000 account reserve £'000 £'000 £'000
£'000 £'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 Six months to
31 October 2025 31 October 2024
£'000 £'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 Six months to Year to
31 October 2025 31 October 2024 30 April 2025
£'000 £'000 (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 Six months to Year to
31 October 2025 31 October 2024 30 April 2025
£'000 £'000 (audited)
£'000
Amounts recognised as distributions in the period: 909 4,372 4,372
Previous year's final dividend of 0.5p (2024 - 2.10p),
paid 16 September 2025
Amounts paid and payable in respect of the period: - - 909
Final dividend (2025 - 0.5p)
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.
Level 1 Level 2 Level 3 Total
As at 31 October 2025 £'000 £'000 £'000 £'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
Level 1 Level 2 Level 3 Total
As at 30 April 2025 (audited) £'000 £'000 £'000 £'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 30 April 2025
£'000 £'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 30 April
2025 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 31 October 30 April 30 April
2025 2025 2025 2025
£'000 per share £'000 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 31 October 30 April 30 April
2025 2025 2025 2025
£'000 per share £'000 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 31 October 2025
NAV (par) 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.
31 October 2025 30 April 2025
Borrowings (at book cost) (a) £224,594,000 £223,415,000
Less: cash and cash equivalents (£23,626,000) (£21,606,000)
Less: sales for subsequent settlement (£28,537,000) (£1,345,000)
Add: purchases for subsequent settlement £17,333,000 £4,704,000
Adjusted borrowings (b) £189,764,000 £205,168,000
Shareholders' funds (c) £2,699,168,000 £2,318,906,000
Gross (potential) gearing (a ÷ c) 8.3% 9.6%
Net (invested) gearing (b ÷ c) 7.0% 8.9%
Unlisted, unquoted and private company investments
'Unlisted', 'unquoted' and 'private company' investments are investments in
securities not traded on a recognised exchange.
Treasury shares
The Company has the authority to make market purchases of its ordinary shares
for retention as treasury shares for future reissue, resale, transfer, or for
cancellation. Treasury shares do not receive distributions and the Company is
not entitled to exercise the voting rights attaching to them.
Turnover (APM)
Turnover is a measure of portfolio change or trading activity. Monthly
turnover is calculated as the minimum of purchases and sales in a month,
divided by the average market value of the fund. Monthly numbers are added
together to get the rolling 12 month turnover data.
Contingent value rights
'CVR' after an instrument name indicates a security, usually arising from a
corporate action such as a takeover or merger, which represents a right to
receive potential future value, should the continuing company achieve certain
milestones. The Illumina CVR was received on Illumina's takeover of the
Company's private company investment in GRAIL and the Abiomed CVR arose on
Johnson & Johnson's takeover of Abiomed. In both cases the milestones
relate to the performance of the technologies acquired through those
takeovers. Any values attributed to these holdings reflect both the amount of
the future value potentially receivable and the probability of the milestones
being met within the time frames in the CVR agreement.
Automatic exchange of information
In order to fulfil its obligations under UK tax legislation relating to the
automatic exchange of information, the Company is required to collect and
report certain information about certain shareholders.
The legislation requires investment trust companies to provide personal
information to HMRC on certain investors who purchase shares in investment
trusts. Accordingly, the Company will have to provide information annually to
the local tax authority on the tax residencies of a number of non-UK based
certificated shareholders and corporate entities.
Shareholders, excluding those whose shares are held in CREST, who come on to
the share register will be sent a certification form for the purposes of
collecting this information.
For further information, please see HMRC's Quick Guide: Automatic Exchange of
Information - information for account holders
gov.uk/government/publications/exchange-of-information-account-holders.
Third party data provider disclaimer
No third party data provider ('Provider') makes any warranty, express or
implied, as to the accuracy, completeness or timeliness of the data contained
herewith nor as to the results to be obtained by recipients of the data.
No Provider shall in any way be liable to any recipient of the data for any
inaccuracies, errors or omissions in the index data included in this document,
regardless of cause, or for any damages (whether direct or indirect) resulting
therefrom.
No Provider has any obligation to update, modify or amend the data or to
otherwise notify a recipient thereof in the event that any matter stated
herein changes or subsequently becomes inaccurate. Without limiting the
foregoing, no Provider shall have any liability whatsoever to you, whether in
contract (including under an indemnity), in tort (including negligence), under
a warranty, under statute or otherwise, in respect of any loss or damage
suffered by you as a result of or in connection with any opinions,
recommendations, forecasts, judgements, or any other conclusions, or any
course of action determined, by you or any third party, whether or not based
on the content, information or materials contained herein.
FTSE Index Data
London Stock Exchange Group plc and its group undertakings (collectively, the
'LSE Group'). © LSE Group 2025. FTSE Russell is a trading name of certain of
the LSE Group companies. 'FTSE®' 'Russell®', FTSE Russell®, is/are a trade
mark(s) of the relevant LSE Group companies and is/are used by any other LSE
Group company under license. All rights in the FTSE Russell indexes or data
vest in the relevant LSE Group company which owns the index or the data.
Neither LSE Group nor its licensors accept any liability for any errors or
omissions in the indexes or data and no party may rely on any indexes or data
contained in this communication.
No further distribution of data from the LSE Group is permitted without the
relevant LSE Group company's express written consent. The LSE Group does not
promote, sponsor or endorse the content of this communication.
None of the views expressed in this document should be construed as advice to
buy or sell a particular investment.
The printed version of the Interim Financial Report will be sent to
shareholders and will be available on the Monks' page of the Managers' website
monksinvestmenttrust.co.uk ‡ on or around 18 December 2025.
(‡) Neither the contents of the Managers' website nor the contents of
any website accessible from hyperlinks on the Managers' website (or any other
website) is incorporated into, or forms part of, this announcement.
Monks is managed by Baillie Gifford & Co, the Edinburgh based fund
management group with around £205 billion under management and advice in
active equity and bond portfolios for clients in the UK and throughout the
world (as at 2 December 2025).
Investment Trusts are UK public limited companies and are not authorised or
regulated by the Financial Conduct Authority.
Past performance is not a guide to future performance. The value of an
investment and any income from it is not guaranteed and may go down as well as
up and investors may not get back the amount invested. This is because the
share price is determined by the changing conditions in the relevant stock
markets in which the Company invests and by the supply and demand for the
Company's shares.
3 December 2025
For further information please contact:
Client Relations, Baillie Gifford & Co - Tel: 0131 275 2000
Jonathan Atkins, Four Communications - Tel: 0203 920 0555 or 07872 495396
-ends-
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