REG - Monks Inv.Trust - The Monks Investment Trust PLC Annual Results
02/07/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250702:nRSB3081Pa&default-theme=true
RNS Number : 3081P Monks Investment Trust PLC 02 July 2025
RNS Announcement
The Monks Investment Trust PLC (MNKS)
Legal Entity Identifier: 213800MRI1JTUKG5AF64
Results for the year to 30 April 2025
NAV (borrowings at fair value)(*) +0.1%
NAV (borrowings at par)(*) -0.4%
Share Price(*) -1.5%
Index(†) +5.3%
Source: LSEG / Baillie Gifford. All figures are total return(*). See
disclaimer at the end of this announcement.
Alternative Performance Measure - see Glossary of terms and Alternative
Performance Measures at the end of this announcement.
(†) Comparative index: FTSE World Index (in sterling terms).
The following is the Preliminary Results Announcement for the year to 30 April
2025 which was approved by the Board on 1 July 2025.
Chairman's statement
Performance
Global equities performed well in 2024, driven by strong corporate earnings
and the Artificial Intelligence spending boom. Indeed, as recently as February
of this year, Monks' NAV per share surpassed its previous high of £15, last
reached in November 2021. However, a significant selloff occurred in April
2025, triggered by President Trump's 'Liberation Day' announcement of U.S.
tariffs and China's retaliatory measures. Monks was heavily affected by the
subsequent market sell-off, with the NAV and share price reaching their lows
for the year in April 2025, shortly before the Company's year-end.
During the year to 30 April 2025, the net asset value ('NAV') total return,
with borrowings calculated at fair value, was +0.1% and the share price total
return was -1.5%. Over the same period, the FTSE World Index return was +5.3%.
This is clearly a disappointing result, and whilst the team are now in line
with the index again this calendar year, a year-end-date is a year-end-date.
It is particularly disappointing for me to report this underperformance, since
I step down as Chairman of Monks at the forthcoming AGM.
Capital allocation and discount
The Company's shares traded at a discount to net asset value throughout the
year. The Board has been active in buying shares in the open market. Having
issued shares when Monks' shares traded at a premium to net asset value, we
believe that it is our obligation to be ready buyers at a discount. Buying the
Company's own shares at a discount to NAV enhances NAV per share for ongoing
shareholders. Buybacks also improve short-term liquidity in the Company's
shares. We believe that the underlying portfolio is attractive enough for our
shares to trade at close to or above NAV.
Over the course of the Company's financial year, we bought 26.5 million
shares, at a cost of £321.1 million. Since we commenced this active programme
in January 2022, we have bought back 65.5 million shares at a cost of £727.1
million; representing 27.7% of the Company's issued share capital as at 31
December 2021, one of the largest buybacks in the global equity sector. At the
year-end, the discount was 10.1% (30 April 2024 - 8.5%).
The Board will continue its buyback policy as a key part of its overall
capital allocation; we have discussed increasing the intensity of the buyback
so that the shares trade at a much narrower discount. Recent events have
revealed a clearer investor preference for lower and less volatile discounts.
That is what you should expect to see in future at Monks. We are reluctant to
have a zero discount policy, effectively giving up the advantages of not being
open-ended. However, 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.
Borrowings and gearing
Our investment trust structure allows gearing, which should enhance long-term
returns. The Board's strategic borrowing target is 10%. It is expected that
effective gearing will be maintained in the range of minus 15% to plus 15%.
The Company has a mixture of long term, structural debt and shorter term, more
flexible debt. The Company's revolving credit facility of £150 million with
National Australia Bank Limited expired at the end of November 2024 and has
been replaced by a £100 million revolving credit facility with The Royal Bank
of Scotland International; £50 million is drawn under this facility. At the
period end, net gearing was 8.9% and the weighted average interest rate across
all borrowings was approximately 3.6%. Our decision to issue structural debt
at very low rates was the right one. With the benefit of hindsight, I wish we
had issued more debt at such low rates.
Management expenses
Monks remains competitive on fees and expenses: keeping fees as low as
possible maximises the long-term returns to shareholders. The total ongoing
charges ratio for the year to 30 April 2025 was 0.43% down marginally from
0.44% in the prior year. The current tiered management fee scale ensures that
all shareholders will benefit from economies of scale as assets grow, from
markets and performance
Earnings and dividend
Monks invests with the aim of maximising capital growth rather than income.
All costs are charged to the Revenue Account. The Board's policy is to pay the
minimum dividend required to maintain investment trust status. Retained
earnings are reinvested in the portfolio. In order to build in headroom for
further buybacks that would reduce the shares in issue qualifying for
dividends, the Board is recommending that a single final dividend of 0.5p be
paid, compared to 2.10p last year, to ensure that the amount retained for the
year does not exceed that permissible. Subject to shareholder approval at the
AGM, the dividend will be paid on 16 September 2025 to shareholders on the
register at the close of business on 8 August 2025. The ex-dividend date will
be 7 August 2025.
The Board
As previously communicated, I will retire from the Board at the conclusion of
the Annual General Meeting. Randeep Grewal will succeed me as Chair of the
Board, Nomination Committee and Management Engagement Committee.
The Board is cognisant of the need to ensure regular refreshment of its
composition, whilst also maintaining continuity and corporate memory. In
January, Dr Dina Chaya stood down from the Board as a consequence of time
commitments arising from her executive role. The Board undertook a
recruitment process in the first quarter of the year and David Ballance was
appointed as a Director in March. We also announced that Richard Curling would
join the Board in October 2025. David and Richard will both add investment
trust experience and wide investment knowledge to the Board. I think they are
excellent candidates, and I know they will work hard to pursue your interests.
Annual General Meeting
The AGM will be held on Tuesday 9 September 2025 at the Royal Institution, 21
Albemarle Street, London W1S 4BS, at 11.30 am. We look forward to welcoming
shareholders there.
The Board intends to hold the AGM voting on a poll, so encourages all
shareholders to exercise their votes at the AGM by completing and submitting a
form of proxy. We recommend that shareholders monitor the Company's website at
monksinvestmenttrust.co.uk where any updates regarding the meeting will be
posted. Market announcements will also be made in the event of any change to
the scheduled arrangements.
Should shareholders have questions for the Board or the Managers, or any
queries as to how to vote, they are welcome as always to submit them by email
to enquiries@bailliegifford.com or call 0800 917 2113. For shareholders
investing through a platform, the AIC guidance on how to vote shares in
advance or obtain the documentation necessary to vote in person at the AGM,
may be of assistance: theaic.co.uk/how-to-vote-your-shares.
Adoption of new Articles of Association
At the AGM, to protect the interests of all shareholders, we are seeking
shareholder approval to adopt new Articles of Association (the 'New Articles')
in order to update the Company's current Articles of Association (the
'Existing Articles'). The proposed amendments being introduced in the New
Articles will provide that a majority of the board of directors of the Company
(including the Chairman of the Board) must at all times be independent (as
defined by the AIC Code of Corporate Governance) and that proceedings of the
Board must be conducted with a majority of independent directors present.
A copy of the New Articles, which includes the full terms of the proposed
amendments to the Existing Articles, will be available at the registered
office of the Company at 3 St Helen's Place, London, EC3A 6AB between the
hours of 9.00 a.m. and 5.00 p.m. (Saturdays, Sundays and public holidays
excepted) and on the Company's website, monksinvestmenttrust.co.uk from the
date the annual report is posted to shareholders until the close of the
Annual General Meeting. The proposed New Articles will also be available for
inspection at the venue of the Annual General Meeting from 15 minutes before
and during the meeting and on the National Storage Mechanism located at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) , from the date of
the annual report is posted to shareholders.
Outlook
Recent years have been difficult for active managers as stock market returns
have been driven by a small number of companies, which have represented an
increasingly large proportion of global stock market indices. Monks' portfolio
is intentionally diversified, with around 100 holdings. Whilst our managers
have owned most of the companies that have driven stock market returns in
recent years, these companies have represented a smaller proportion of Monks'
portfolio than their index weightings. This is now the longest sequential
period in which the S&P500 has beaten its equally-weighted version. This
has made the index difficult to beat. Nevertheless, our team has made
mistakes, as every team makes mistakes. I have referred in the past to the
importance of refocusing on valuations; and there have (inevitably) been
stock-specific errors. The Board's role is to be constructively critical, to
probe more deeply when things are going well, and to be more supportive during
more difficult periods.
At an AGM some years ago, a shareholder asked what the appropriate assessment
period for a manager should be before reviewing them more formally. I
responded that 5-year periods would be appropriate. The Board reassesses the
Manager every year, in line with AIC guidelines. But the longer the period of
assessment, the greater the information content. Given that we are behind the
index over 5 years, you can expect the Board to be considering this issue in
even greater detail. The longer period allows us to supplement 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.
We all share the view that there need to be a smaller number of very sizeable
investment trusts in future, to reflect the changing shape of our ownership
via wealth management platforms, advised, and self-administered. Monks needs
to be fighting-fit as more mergers occur. I know that my colleagues will apply
a great deal of effort to make sure that Monks should remain a core holding in
the growth category and is in a position to be a consolidator.
KS Sternberg
Chairman
1 July 2025
Past performance is not a guide to future performance. Total return
information is sourced from Baillie Gifford/LSEG. See disclaimer at the end of
this announcement.
For a definition of terms used see Glossary of terms and Alternative
Performance Measures at the end of this announcement.
Managers' review
It is tempting to believe we live in uniquely turbulent times. Yet history
teaches us that every era feels unprecedented to those living through it. In
living memory, we have witnessed the Berlin Wall crumble and a re-shaping of
world order, ridden the dotcom rollercoaster, suffered 9/11, watched China
transform from agrarian society to economic superpower, weathered the 2008
financial hurricane, navigated Brexit, endured a global pandemic, feared the
return of populism and now find ourselves at the dawn of the artificial
intelligence age.
We have no special insight into what President Trump might do next. The range
of potential outcomes remains extraordinarily wide. Policies are announced and
then rescinded almost daily. So, rather than offering predictions that will
likely prove embarrassingly wrong by the time this report reaches your hands,
we will share the principles that we are applying to navigate uncertainty and
how these are reflected in Monks' portfolio.
Performance
The Global Alpha team has managed Monks for ten years. Over this period, the
NAV total return (with debt at fair value) has been +163.3% (share price
+171.6%) compared to the comparative index (FTSE World), which returned
+182.0%. In the twelve months to the end of April, the portfolio
underperformed the comparative index (FTSE World) by 5.2%, delivering a NAV
total return of +0.1% (share price -1.5%) against the index total return
of +5.3%.
Monks' share price rose steadily over the first 10 months of the financial
year, continuing the strong absolute returns of the past couple of years. The
Company's NAV came close to close to its all‑time high of £15 per share in
February of this year.
However, the last two or so months of the year were much weaker, driven
primarily by global trade tensions ignited by President Trump's 'Liberation
Day'. Coupled with strong negative momentum within the US market, this led to
sharp declines in American stocks (the S&P fell 20% from its peak in
February to its lows in April). The US is our largest geographic allocation in
absolute terms, and therefore, Monks gave up 10 months of gains to end the
year flat. A second effect of President Trump's pronouncements and a lack of
clarity on how the budget deficit will be brought under control has been a
weaker dollar, again impacting the Company, whose shares are priced in
sterling but where many of the assets are in US dollars.
Top five contributors and detractors to relative performance by stock for the year end 30 April 2025 (%)
Average weight Average weight Average active Total Attribution
in portfolio in Index weight Return
Top five
DoorDash 2.3 0.1 2.2 40.6 0.8
Prosus 2.9 0.1 2.9 29.9 0.6
Alnylam Pharmaceuticals 1.0 0.0 0.9 70.1 0.6
Sea Limited 0.8 0.0 0.8 98.9 0.5
Shopify 1.4 0.1 1.2 27.2 0.5
Bottom five
Elevance Health 3.1 0.1 3.0 -24.5 -1.0
Novo Nordisk 1.7 0.5 1.2 -51.1 -1.0
Martin Marietta Materials 3.0 0.0 2.9 -15.8 -0.8
Moderna 0.4 0.0 0.4 -70.6 -0.5
Block 1.2 0.1 1.1 -25.1 -0.5
Source: Revolution, FTSE.
All attribution figures are calculated gross of fees, relative to the Index
from stock level up, based on closing prices.
The table above shows the largest contributors and detractors from Monks'
relative performance over the period. A cohort of our healthcare holdings was
among the largest detractors from relative performance for the portfolio.
President Trump's healthcare appointments and their combined pronouncements
have impacted short-term sentiment in healthcare. Against this backdrop,
Elevance Health and Novo Nordisk have both suffered share price falls
following disappointing operational results. Elevance is the second-largest US
health insurer. We believe a growing need for health insurance coverage (as
the population ages and treatment becomes more expensive) provides a
structural tailwind for growth in the years ahead. The recent weakness in
Elevance's shares is a result of the number of government-supported Medicaid
customers falling as eligibility criteria are tightened post-pandemic. This
has increased the company's medical loss ratio and weighed on margins, but we
believe this is temporary. Elevance's pricing power (it can reprice policies
annually) should allow it to grow its margins again and deliver sustainable
double‑digit earnings growth over the long term.
Novo Nordisk could become one of the scale providers of weight loss injections
to a vast and undersupplied market. Its shares fell sharply in December
following late-stage trial results from its latest drug, CagriSema. The
results were market-leading, showing 22.5% average weight loss across the
patient population, but this was lower than anticipated. We think that the
market's reaction to this is overdone. Today, just over 10 million people take
obesity drugs globally (only 1% of the global obese population). As supply
constraints ease, we expect this number to expand significantly. As a leader
in the field of diabetes and metabolic disease, we expect Novo to continue to
garner a significant share of the obesity market and believe the company has
an underappreciated competitive advantage in manufacturing that is difficult
and costly to replicate.
Elsewhere, Block, the peer-to-peer payment platform, saw its shares fall 25%
following the management team's guidance that profit growth will moderate over
the next year. It continues to grow its services across both Square (payments
terminal) and Cash App (consumer finance), which should build scale and
increase its profitability over the long term.
In contrast to Elevance and Novo Nordisk, where we remain confident in the
long-term outlook, we have sold our position in Moderna. Revenue from its
Covid-19 vaccine has disappointed, whilst speed to market with its RSV
(respiratory syncytial virus) vaccine was slow and allowed competitors to
steal the lead. Though we continue to believe that they have a potentially
exciting pipeline of drugs, our patience has been exhausted.
Most of the portfolio holdings are in good shape. Indeed, sticking within
healthcare, Alnylam Pharmaceuticals (gene silencing) reached a significant
milestone after positive results from its late-stage trial to treat a rare
heart condition. This could multiply its addressable patient population
tenfold. We took some profits on shareholders' behalf after the share price
rose by 80%, but we remain excited by the company's potential to address even
larger patient populations.
Top contributors in the year included emerging winners DoorDash (online food
delivery) and Sea Limited (ecommerce, gaming and payments). These companies
are emerging stronger in the face of a higher cost of capital, while weaker
competitors fall by the wayside, and are entrenching their competitive edge
over peers. For example, DoorDash has grown its market share in the US from
57% to nearly 70% over the past three years and continues to scale at pace
(order numbers increased +18% to an astonishing 643 million per quarter).
Excitingly, it is making impressive progress in grocery delivery and in new
markets overseas. Indeed, the news of its recent purchase of Deliveroo in the
UK is evidence of its growth ambitions.
Some of our largest positions have contributed strongly too, with Prosus
(investment holding company) and Meta (advertising) among the most notable.
Prosus - which has a 25% shareholding in Tencent, the Chinese internet giant -
has seen its portfolio of internet assets deliver robust financial growth. Its
recent results showed that its consolidated e-commerce operations delivered
+16% revenue growth, and operating profitability 12 months earlier than
targeted. Meanwhile, Meta continues to excel. AI investments have boosted
advertising quality and targeting, increased user engagement and accelerated
revenue growth (+19% year-on-year).
Successfully navigating uncertainty
The imposition of ever-changing global trade tariffs by the US has stoked
uncertainty and the outlook for global growth. It would be easy to get drawn
into the noise and speculation, but this is not in the best interests of Monks
shareholders. Indeed, the economist Frank Knight made a crucial distinction
between risk and uncertainty. Risk, he explained, describes situations where
outcomes and probabilities can be reasonably estimated, such as the odds when
tossing dice or calculating insurance premiums. Uncertainty, by contrast,
applies to situations where outcomes and their probabilities cannot be
reliably quantified due to insufficient historical precedent. Risk can be
priced, hedged, and insured against. Uncertainty cannot.
This leads to three core principles that help to guide us in the management of
the Monks' portfolio:
1. Build Resilience
2. Retain Perspective
3. Remain reward-seeking
Simple to list yet challenging to execute.
Building Resilience
We recognise that global geopolitics (not just Trump's tariffs) is likely to
lead to more fractious global trade and a wider range of outcomes for
investors. Our focus has been on ensuring that our holdings are sufficiently
adaptable and that the portfolio is positioned to win across a wide range of
scenarios. Rather than attempting to predict the unpredictable, we focus on
building resilience through investing in companies with robust fundamentals
and a diversity of growth drivers.
The portfolio holdings are both higher growth and higher quality than the
market. In aggregate, the companies are conservatively financed with very low
debt compared to the index (20% net debt/equity versus 50%) yet are
structurally more profitable (39% gross margins versus 29%), invest more in
future growth (capex and R&D/sales 14% versus 11%), are higher returning
(return on equity 19% versus 15%) and have historically grown cash profits
faster than the index (free cash flow growth over the last five years 14%
versus 8%).
Nature teaches us that diverse ecosystems demonstrate greater resilience than
monocultures. A field of identical crops may produce impressive yields under
ideal conditions, but a single blight can devastate everything. Biodiverse
ecosystems, meanwhile, contain countless species with different resilience
profiles. When disease strikes, some species suffer while others thrive, and
the ecosystem adapts and flourishes amid change.
This principle shapes our portfolio construction for Monks. We remain
deliberately pragmatic about growth sources, organising our holdings into
three profiles: stalwart, rapid and cyclical growth. These are described
below. In short, the stalwarts are the wealth compounders. They are often
franchise businesses that metronomically increase earnings over decades and
provide portfolio ballast. The rapid growth stocks typically harness
technological innovation to disrupt industries and grow rapidly. Our cyclical
growth stocks are more economically sensitive businesses whose growth arrives
unevenly; the opportunity here lies in finding management teams that invest
counter-cyclically, turning market fluctuations into long-term advantages.
This broad and pragmatic approach to growth gives us degrees of freedom to
adapt to changing conditions, seize emerging opportunities, and shift emphasis
as market cycles evolve.
In this context, position sizing across the portfolio matters too. We invest
over 40% of the portfolio by weight in the top 15 holdings (between 2-4% per
holding), where we believe the likelihood of generating at least a doubling in
return over the next five years is highest. These are typically (but not
always) in large, established companies where the path to growth is clearest.
However, we recognise the asymmetries that equity investing offers and embrace
this by managing a basket of smaller, 'incubator' positions (<0.5%), where
the path to growth is less clear but potentially highly rewarding for
shareholders. We currently have investments in 40 companies that make up
around 15% of the portfolio. The portfolio effect is that Monks' shareholders
are not overly exposed to the fortunes of one company, but instead a diverse
range of holdings (103 holdings as at 30 April 2025), which should be
appealing to investors at a time of heightened uncertainty.
Indeed, over the past year, we have sought to maintain sufficient balance
across our growth profiles and position sizes. We have recycled capital from
some of our strongest performing (mainly US) holdings like Netflix
(entertainment streaming), The Trade Desk (programmatic advertising), Dutch
Bros (coffee) and Shopify (ecommerce). This has been deployed into a wide
range of attractively valued growth opportunities that broaden the base of
growth across the portfolio. Examples of newly established holdings include
the likes of growth stalwart, Paycom (payroll and HR software) and cyclical
stocks, FTAI Aviation (aero engine maintenance and renewal) and WillScot
(temporary construction site office and storage solutions).
Retaining Perspective
Stock markets behave strangely. They overreact to headline news while
simultaneously underreacting to slower, more consequential trends. The
pressure to react to a dramatic headline, to do something, can be
overwhelming. Instead, we concentrate on enduring, structural trends like
long-term opportunities in artificial intelligence (AI) or the penetration of
electric and autonomous vehicles. These shifts will outlast political cycles
and understanding which structural shifts will endure represents our most
important task.
Around 25% of Monks is invested in companies that power, build or benefit from
AI. The bedrock of our exposure includes significant positions in NVIDIA in
Graphics Processing Unit design, Microsoft in enterprise software, and Meta in
social media and advertising. We have deliberately broadened and deepened the
portfolio's exposure to companies across the AI value chain. In the past year,
this includes purchases of semiconductor holdings like Disco Corporation
(dicing, grinding and polishing equipment for semiconductor wafers) and
Kokusai Electric (atomic layer deposition machinery to enable the manufacture
of leading-edge semiconductors). In both cases, the likelihood of greater chip
demand from AI will be a helpful tailwind for growth. Elsewhere, we have been
seeking out the early adopters in the enterprise application space. This has
drawn us to the enterprise management software company Salesforce. It is now
positioning itself to capitalise on the growing AI market through its new
offering, Agentforce. It allows customers to delegate tasks to autonomous AI
agents that are designed to handle tasks such as data analysis, planning, and
execution, thereby enhancing productivity and efficiency. This represents a
potentially valuable shift in Salesforce's business model and pricing
strategy, which could see growth accelerate in the years ahead.
We have significantly less of the portfolio invested directly in the growth of
electric and autonomous vehicles (c. 3.5%), but the direction of travel is
clear. We have long-standing holdings in the likes of CATL, the Chinese
battery manufacturer, Mobileye in driver safety and assistance software and Li
Auto in Chinese EV manufacturing. We have discussed several opportunities over
recent months, alighting on the purchase of a new holding in Uber
Technologies, the pioneering ride-hailing platform that connects drivers and
passengers through its mobile app. Uber's competitive edge lies in its strong
brand recognition, price competitiveness, scale advantage, and powerful
network effects. There remain countless opportunities to increase penetration
and to expand into new geographies and adjacent businesses. With a vast
addressable market, estimated at $3-5 trillion in mobility alone, Uber is
well-positioned to capitalise on the ongoing transformation of the
transportation industry, supported by its strong consumer relationships and
operational expertise. While the market appears to underappreciate Uber's
longevity and robustness, we believe the company has the potential to
transform urban mobility and dominate the autonomous vehicle (AV) future.
Remaining reward-seeking
The fundamental principles of investing sound disarmingly simple: buy low,
sell high. But adhering to these principles amid market turbulence is
difficult. By building resilience and maintaining perspective, we create the
mental space to remain reward-seeking. Indeed, we have been actively upgrading
the portfolio. Over the past year, our valuation premium to the market (on a
forward Price/Earnings basis) has decreased from over 20% to just 7%, while
our three-year forecast earnings growth remains a healthy 45% premium to the
market (12.5% p.a. versus 8.6% p.a.). We are turning volatility into
opportunity.
Volatility has allowed us to purchase shares in companies that we have admired
for some time, too. This was the case for Nu Holdings, the owner of Nubank, a
founder-run digital bank primarily operating in Brazil, Mexico and Colombia.
Its shares fell from $16 to $11 in January, which represented an attractive
entry point. The company has attracted over half of Brazil's adult population,
mainly through organic customer acquisition and its well-regarded reputation.
This demonstrates a strong product-market fit replicated across an
increasingly broad product portfolio, different market segments and multiple
geographies. It leverages its digital business model with an 85% cost
advantage over incumbent banks to undercut fees while offering a superior
customer experience, commanding one of the highest net promoter scores of any
consumer company worldwide.
Gearing and buybacks
The board and manager believe in the importance of utilising gearing and
managing the current discount to best protect existing shareholders. Turning
long-term performance around remains the strongest lever to do this. Our
confidence in the outlook for the portfolio is reflected in an increase to our
geared position, which now stands at 8.9% on an invested basis (it was 6.8% a
year ago). Our largest capital allocation made over the past year was the
£321m to purchase our own shares at an average discount of 10%.
This represents 12.4% of the Company's opening share count, added
approximately 1.1% to the NAV per share and represents a sustained commitment
to buybacks, which began in January 2022.
Outlook
The core approach to managing Monks remains consistent. We select stocks based
on their fundamental attractions; we seek to invest in a diversified
collection of companies that can deliver superior levels of earnings growth;
and we strive to allow compounding to work its magic by being patient. We
overlay these principles - building resilience, retaining perspective and
remaining reward-seeking - to deliver Monk's shareholders a portfolio that is
robust, has many drivers of future returns and will outpace the market in its
delivery of earnings growth. Indeed, the portfolio's fundamentals point to a
platform from which we can be confident Monks will deliver strong relative
returns in the years ahead. Returning to Frank Knight's wisdom about
uncertainty, he argued that true profits-what he called entrepreneurial
returns- arise precisely from bearing uncertainty rather than merely
quantifiable risk. The willingness to operate thoughtfully under conditions of
genuine uncertainty creates the opportunity for extraordinary reward.
In these uncertain times, we remain grateful for your continued trust.
Spencer Adair
Malcolm MacColl
Helen Xiong
Baillie Gifford & Co
1 July 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 diverge - 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 at the end of this announcement.
Investment portfolio by growth category(*)
as at 30 April 2025
Holding size Growth stalwarts 35.7% Rapid growth 33.0% Cyclical growth 31.3% Holding size
Highest conviction holdings Microsoft 4.1 Prosus 3.4 TSMC 3.2 Total in this holding size 41.0%
c.2.0% each
Meta Platforms 4.0 NVIDIA 3.2 Ryanair 2.2
Amazon.com 3.7 The Schiehallion Fund 2.7 Martin Marietta Materials 1.9
Elevance Health 2.7 DoorDash 1.9 Royalty Pharma 1.8
Service Corporation International 2.3 CRH 1.7
Mastercard 2.2
Average sized holdings Autozone 1.5 Novo Nordisk 1.2 Richemont 1.3 Total in this holding size 43.3%
c.1.0% each
Alphabet 1.4 Block 1.2 FTAI Aviation (†) 1.1
AIA 1.0 AeroVironment 1.2 Markel 1.0
S&P Global 1.0 Reliance Industries 1.1 Atlas Copco 1.0
Paycom Software (†) 1.0 ByteDance (§) 1.1 CATL 0.9
Cosmos Pharmaceutical (†) 0.9 Shopify 1.0 B3 Group 0.9
Edenred (†) 0.9 Netflix 0.9 BHP Group 0.9
Texas Instruments 0.9 Sea Limited 0.9 Nippon Paint 0.8
Olympus 0.9 Coupang 0.9 CBRE Group 0.8
Salesforce (†) 0.8 MercadoLibre 0.9 Bellway 0.7
Stella-Jones 0.8 Spotify 0.8 Advanced Drainage Systems 0.7
Moody's 0.8 PDD Holdings 0.8 Petroleo Brasileiro ADR 0.7
Kweichow Moutai 0.8 Uber Technologies (†) 0.8 CoStar 0.7
UnitedHealth 0.8 Li Auto 0.7 Epiroc 0.7
Arthur J. Gallagher 0.7 Alnylam Pharmaceuticals 0.7 Samsung Electronics 0.6
Adyen 0.7
Nu Holdings (†) 0.7
Stripe (§) 0.7
Incubator holdings c.0.5% each Thermo Fisher Scientific 0.6 Dutch Bros 0.6 Eaton 0.6 Total in this holding size 15.7%
Walt Disney 0.6 Epic Games (§) 0.6 Kokusai Electric (†) 0.6
Topicus.com 0.5 Space Exploration Technologies (§) 0.5 Brookfield (†) 0.6
Sartorius Stedim Biotech 0.4 Cloudflare 0.5 ON Semiconductor (†) 0.6
LVMH 0.3 Applovin (†) 0.5 Rakuten 0.5
Neogen Corp 0.1 The Trade Desk 0.5 Comfort Systems USA 0.5
ICICI Prudential Life Insurance 0.5 Builders FirstSource 0.5
CyberAgent 0.4 ASM International 0.5
Datadog 0.4 Entegris 0.5
Genmab 0.3 SMC 0.5
Mobileye 0.3 Disco Corporation (†) 0.5
Enphase Energy (†) 0.2 Nexans 0.4
Ant International (§) 0.2 Floor & Décor Holdings 0.4
Illumina CVR (§) <0.1 WillScot Holdings (†) 0.3
Abiomed CVR - Brunswick Corp 0.3
Soitec 0.2
YETI Holdings 0.1
Silk Invest Africa Food Fund (§) 0.1
Sberbank of Russia(‡) -
(*) For a definition of terms used see Glossary of terms and Alternative
Performance Measures at the end of this announcement.
(§) Denotes unlisted/private company investment.
(‡) Denotes suspended investment.
(†) New purchase during the period.
Portfolio positioning
as at 30 April 2025(*†)
Although the Managers' approach to stock picking is resolutely 'bottom-up' in
nature 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 at the Company's year end.
Geographical
Geographical region % at % at
30 April 30 April
2025 2024
1 North America 58.0 57.4
2 Continental Europe 16.3 17.7
3 Emerging Markets 13.9 12.6
4 Japan 5.1 4.2
5 United Kingdom 3.4 3.6
6 Developed Asia 2.8 3.2
7 Net liquid assets 0.5 1.3
Sectoral
Sector % at % at
30 April 30 April
2025 2024
1 Technology 34.1 28.5
2 Industrials 19.3 18.2
3 Consumer Discretionary 18.9 20.3
4 Financials 10.2 11.7
5 Healthcare 9.5 11.8
6 Energy 2.0 2.6
7 Consumer Staples 1.7 1.2
8 Basic Materials 1.7 1.9
9 Real Estate 1.5 1.6
10 Telecommunications 0.6 0.9
11 Net liquid assets 0.5 1.3
(*) Expressed as a percentage of total assets.
(†) For a definition of terms used see Glossary of terms and
Alternative Performance Measures at the end of this announcement.
Past performance is not a guide to future performance.
List of investments
as at 30 April 2025
Name Business Value % of total
£'000 assets (*)
Microsoft Software and cloud computing 104,501 4.1
Meta Platforms Social networking website 100,603 4.0
Amazon.com Online retailer and cloud computing platform 92,864 3.7
Prosus Media and ecommerce 87,086 3.4
TSMC Semiconductor manufacturer 81,423 3.2
NVIDIA Graphics processing, gaming, AI technology 79,679 3.1
Elevance Health Healthcare insurer 69,262 2.7
The Schiehallion Fund Global unlisted growth equity investment company 68,420 2.7
Service Corporation International Funeral and crematoria services 57,702 2.3
Ryanair Low cost European airline 56,267 2.2
Mastercard Electronic payments network and related services 55,688 2.2
Martin Marietta Materials Cement and aggregates manufacturer 47,633 1.9
DoorDash Online commerce platform 47,362 1.9
Royalty Pharma Biopharmaceutical royalties portfolio 45,581 1.8
CRH Diversified building materials 42,387 1.7
Autozone Automotive replacement parts and accessories 36,885 1.5
Alphabet Online search engine 35,292 1.4
Richemont Luxury goods 31,971 1.3
Novo Nordisk Diabetes and weight loss treatment 29,773 1.2
Block Financial technology 29,556 1.2
AeroVironment Reconnaissance and defence drones 29,292 1.2
FTAI Aviation (†) Aerospace company 27,444 1.1
Reliance Industries Indian energy conglomerate 27,226 1.1
ByteDance (§) Online content platform including TikTok 26,680 1.0
Markel Speciality insurance products 26,502 1.0
Shopify Online commerce platform 26,453 1.0
AIA Asian life insurer 26,371 1.0
S&P Global Credit rating agency 25,693 1.0
Paycom Software (†) Enterprise management software 24,301 1.0
Atlas Copco Industrial equipment 24,233 1.0
CATL Battery manufacturer 23,826 0.9
Netflix Entertainment streaming services 23,324 0.9
B3 Group Brazilian stock exchange operator 22,946 0.9
Cosmos Pharmaceutical (†) Drug store chain 22,896 0.9
BHP Group Mineral exploration and production 22,267 0.9
Sea Limited Online and digital gaming 22,169 0.9
Coupang South Korean ecommerce 22,021 0.9
Edenred (†) Employee benefit administrator 21,881 0.9
Texas Instruments Analog semiconductors 21,746 0.9
Olympus Optoelectronic products 21,686 0.9
MercadoLibre Latin American ecommerce platform 21,520 0.8
Salesforce (†) Cloud based software company 21,378 0.8
Stella-Jones Industrial pressure treated wood products 21,270 0.8
Spotify Online music streaming service 20,954 0.8
Moody's Credit rating agency 20,856 0.8
PDD Holdings Chinese ecommerce 20,542 0.8
Nippon Paint Japanese paint manufacturer 20,454 0.8
Kweichow Moutai Spirits manufacturer 20,428 0.8
CBRE Group Commercial real estate 20,353 0.8
UnitedHealth Healthcare insurer 20,120 0.8
Uber Technologies (†) Ride hailing and food delivery 19,009 0.7
Bellway Housebuilder 18,857 0.7
Li Auto Chinese EV manufacturer 18,493 0.7
Advanced Drainage Systems Manufacturer of pipes and drainage systems 18,418 0.7
Petroleo Brasileiro Oil and gas exploration and production 18,309 0.7
CoStar Commercial property portal 17,733 0.7
Alnylam Pharmaceuticals RNA interference therapeutics 17,488 0.7
Adyen Digital payments 17,449 0.7
Nu Holdings (†) Brazilian digital banking and financial services 17,348 0.7
Arthur J. Gallagher Insurance broker 17,344 0.7
Epiroc Construction and mining machinery 16,894 0.7
Stripe Digital payments platform 16,641 0.7
Samsung Electronics Semiconductors and consumer goods 16,320 0.6
Thermo Fisher Scientific Scientific instruments, consumables and chemicals 16,076 0.6
Dutch Bros Coffee and drinks retailer 15,916 0.6
Eaton Industrial engineering products 15,821 0.6
Walt Disney Media and theme parks 15,507 0.6
Epic Games (§) Gaming software developer 15,494 0.6
Kokusai Electric (†) Semiconductor equipment manufacturer 14,816 0.6
Brookfield (†) Asset management company 14,743 0.6
ON Semiconductor (†) Supplier of power semiconductors 14,167 0.6
Space Exploration Technologies (§) Space rockets and satellites 13,850 0.5
Rakuten Online retail and financial services 13,607 0.5
Cloudflare Cloud based IT services 13,538 0.5
Applovin (†) Online game development platform 13,467 0.5
Comfort Systems USA HVAC systems and solutions 13,437 0.5
Topicus.com Vertical market software and solutions 13,285 0.5
Builders FirstSource Building products for professional homebuilders 13,220 0.5
ASM International Vapour deposition technology for semiconductors 13,064 0.5
The Trade Desk Programmatic advertising platform 12,185 0.5
ICICI Prudential Life Insurance Life insurance services 12,160 0.5
Entegris Supplier of materials to semiconductor industry 11,801 0.5
SMC Factory automation equipment 11,610 0.5
Disco Corporation (†) Precision equipment supplier to the semiconductor sector 11,380 0.5
Sartorius Stedim Biotech Biotechnology, specialised equipment for research 11,179 0.4
Nexans Electrical transmission cabling installer 10,555 0.4
CyberAgent Japanese internet advertising and content 9,558 0.4
Datadog Cloud based IT system monitoring application 9,324 0.4
Floor & Décor Holdings Floor and furnishing retailer 8,856 0.3
LVMH Luxury goods 8,480 0.3
WillScot Holdings (†) Construction site storage and office solutions 8,064 0.3
Genmab Biotechnology 7,970 0.3
Brunswick Corp Recreational boats, marine engines 6,473 0.3
and accessories
Mobileye Advanced driver assistance systems (ADAS) and autonomous driving technologies 6,413 0.3
Enphase Energy (†) Provider of energy management solutions 5,748 0.2
Soitec Manufactures substrates for semiconductor wafers 5,512 0.2
Ant International (§) Chinese online payments and financial services business 5,327 0.2
YETI Holdings Outdoor lifestyle products 3,438 0.1
Neogen Corp Food and animal safety products and services 2,865 0.1
Silk Invest Africa Food Fund (§) Africa focused private equity fund 2,438 0.1
Illumina CVR Gene sequencing business 57 <0.1
Abiomed CVR Medical implant manufacturer - -
Sberbank of Russia ^ Russian commercial bank - -
Total investments 2,528,471 99.5
Net liquid assets(*) 13,850 0.5
Total assets(*) 2,542,321 100.0
Borrowings (at book value) (223,415) (8.8)
Shareholders' funds 2,318,906 91.2
Listed Schiehallion Unlisted Net liquid Total
equities Fund (#) securities (‡) assets (*) assets (*)
% % % % %
30 April 2025 93.7 2.7 3.1 0.5 100.0
30 April 2024 94.1 2.6 2.0 1.3 100.0
(*) For a definition of terms used see Glossary of terms and Alternative
Performance Measures at the end of this announcement.
(§) Denotes unlisted/private company investment.
^ Denotes suspended investment.
(†) New purchase during the period.
Complete sales during the period were: Ashstead Group, BIG Technologies,
Pernod Ricard, Adevinta Asa, Schibsted, Adobe Systems, Advanced Micro Devices,
Albemarle, Alibaba, Analog Devices, Certara, Chewy, HDFC, Hoshizaki Corp,
Lemonade, Moderna, Norwegian Cruise Line, Pool Corporation, Sands China,
Shiseido, SiteOne Landscape Supply, Staar Surgical, Sysmex, Tesla, Woodside
Energy Group.
(#) The Schiehallion Fund is managed by Baillie Gifford. The Company's
holding in The Schiehallion Fund is excluded from its assets when calculating
the management fee. See note 3 to the Financial Statements.
(‡) Includes holdings in preference shares, ordinary shares and
contingent value rights (CVR).
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 committee at Baillie Gifford
which takes advice from an independent third party (S&P Global).
The portfolio managers feed into the process, but the valuations committee
owns the process 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. 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 IPO; or changes to the
valuation of comparable public companies. 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 do these checks daily. Any ad hoc change to the fair valuation of any
holding is implemented swiftly and reflected in the next published net asset
value.
In addition to the 3.1% of the portfolio holdings in direct private company
investments, 2.7% of the portfolio is in The Schiehallion Fund, a closed ended
investment company investing predominantly in private companies, which is
valued at its publicly available market price.
Income statement
For the year ended 30 April
Notes 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on investments - (18,354) (18,354) - 389,428 389,428
Currency (losses)/gains - (1,342) (1,342) - 1,419 1,419
Income 2 25,953 - 25,953 29,888 - 29,888
Investment management fee 3 (9,707) - (9,707) (9,431) - (9,431)
Other administrative expenses (1,965) - (1,965) (1,850) - (1,850)
Net return before finance costs and taxation 14,281 (19,696) (5,415) 18,607 390,847 409,454
Finance costs of borrowings (8,546) - (8,546) (8,264) - (8,264)
Net return on ordinary activities before taxation 5,735 (19,696) (13,961) 10,343 390,847 401,190
Tax on ordinary activities (2,219) (575) (2,794) (2,102) (736) (2,838)
Net return on ordinary activities after taxation 3,516 (20,271) (16,755) 8,241 390,111 398,352
Net return per ordinary share 4 1.75p (10.08p) (8.33p) 3.68p 174.07p 177.75p
Note: 5 0.5p 2.10p
Dividends per share paid and payable in respect of the year
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 year.
Balance sheet
As at 30 April As at 30 April
Notes 2025 2025 2024 2024
£'000 £'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 6 2,528,471 2,847,068
Current assets
Debtors 3,917 12,506
Cash and cash equivalents 21,606 38,622
25,523 51,128
Creditors
Amounts falling due within one year 7 (60,925) (61,987)
Net current liabilities (35,402) (10,859)
Total assets less current liabilities 2,493,069 2,836,209
Creditors
Amounts falling due after more than one year:
Loan notes 7 (173,415) (173,176)
Provision for tax liability 7 (748) (1,896)
(174,163) (175,072)
Net assets 2,318,906 2,661,137
Capital and reserves
Share capital 8 12,659 12,659
Share premium account 433,714 433,714
Capital redemption reserve 8,700 8,700
Capital reserve 1,791,234 2,132,609
Revenue reserve 72,599 73,455
Shareholders' funds 2,318,906 2,661,137
Shareholders' funds per ordinary share (borrowings at book value) 1,235.9p 1,242.8p
Statement of changes in equity
For the year ended 30 April 2025
Notes Share Share Capital redemption Capital Revenue Shareholders'
capital premium reserve Reserve* reserve funds
£'000 account £'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 - - - (20,271) 3,516 (16,755)
Ordinary shares bought back 8 - - - (321,104) - (321,104)
Dividends paid during the year 5 - - - - (4,372) (4,372)
Shareholders' funds at 30 April 2025 12,659 433,714 8,700 1,791,234 72,599 2,318,906
For the year ended 30 April 2024
Notes Share Share Capital redemption Capital Revenue Shareholders'
capital premium reserve Reserve* reserve funds
£'000 account £'000 £'000 £'000 £'000
£'000
Shareholders' funds at 1 May 2023 12,659 433,714 8,700 1,915,385 72,422 2,442,880
Net return on ordinary activities after taxation - - - 390,111 8,241 398,352
Ordinary shares bought back 8 - - - (172,887) - (172,887)
Dividends paid during the year 5 - - - - (7,208) (7,208)
Shareholders' funds at 30 April 2024 12,659 433,714 8,700 2,132,609 73,455 2,661,137
* The Capital Reserve balance at 30 April 2025 includes holding
gains on investments of £651,128,000 (30 April 2024 - gains of
£1,003,962,000).
Cash flow statement
For the year ended 30 April
Notes 2025 2025 2024 2024
£'000 £'000 £'000 £'000
Cash flows from operating activities
Net return on ordinary activities before taxation (13,961) 401,190
Adjustments to reconcile company profit before tax to net cash flow from
operating activities
Net losses/(gains) on investments 18,354 (389,428)
Currency gains 1,342 (1,419)
Finance costs of borrowings 8,546 8,264
Other capital movements
(Increase)/decrease in accrued income (556) 1,586
Decrease/(increase) in debtors 664 (450)
(Increase)/decrease in creditors (402) 476
Taxation
Overseas tax incurred (3,865) (2,074)
Cash from operations(*) 10,122 18,145
Interest paid (7,448) (7,468)
Net cash inflow from operating activities 2,674 10,677
Cash flows from investing activities
Acquisitions of investments (677,505) (467,866)
Disposals of investments 987,588 586,578
Net cash inflow from investing activities 310,083 118,712
Cash flows from financing activities
Equity dividends paid 5 (4,372) (7,208)
Ordinary shares bought back and stamp duty thereon 8 (324,293) (175,482)
Loan notes issued - 74,388
Borrowings drawn down 50,000 -
Borrowings repaid (50,000) (25,000)
Net cash outflow from financing activities (328,665) (133,302)
Decrease in cash and cash equivalents (15,908) (3,913)
Exchange movements (1,108) 344
Cash and cash equivalents at 1 May 38,622 42,191
Cash and cash equivalents at 30 April 21,606 38,622
(*) Cash from operations includes dividends received of £24,140,000
(2024 - £29,805,000) and interest received of £1,257,000 (2024 -
£1,669,000).
The accompanying notes below are an integral part of the Financial Statements.
Notes to the Financial Statements
1. The Financial Statements for the year to 30 April 2025 have
been prepared in accordance with FRS 102 'The Financial Reporting Standard
applicable in the UK and Republic of Ireland' on the basis of the accounting
policies set out below which are unchanged from the prior year and have been
applied consistently. The updates to FRS 102, applicable for financial years
starting on or after 1 January 2025, are not expected to impact the policies
below or the financial statements prepared in accordance with them.
2. Income
2025 2024
£'000 £'000
Income from investments
UK dividends 1,175 3,309
Overseas dividends 23,521 24,910
24,696 28,219
Other income
Deposit interest 1,257 1,669
Total income 25,953 29,888
Total income comprises:
Dividends from financial assets classified as at fair value through profit 24,696 28,219
or loss
Interest from financial assets not at fair value through profit or loss 1,257 1,669
25,953 29,888
Special dividend entitlements arising in the year amounted to £459,000 (2024
- £1,069,000).
3. Baillie Gifford & Co Limited, a wholly owned subsidiary of
Baillie Gifford & Co, has been appointed as the Company's Alternative
Investment Fund Manager (AIFM) and Company Secretary. Baillie Gifford & Co
Limited has delegated portfolio management services to Baillie Gifford &
Co. Dealing activity and transaction reporting have been further sub-delegated
to Baillie Gifford Overseas Limited and Baillie Gifford Asia (Hong Kong)
Limited. The annual management fee payable to Baillie Gifford & Co Limited
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.
4. Net return per ordinary share
2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
Net return after taxation 1.75p (10.08p) (8.33p) 3.68p 174.07p 177.75p
Revenue return per ordinary share is based on the net revenue return on
ordinary activities after taxation of £3,516,000 (2024 - £8,241,000) and on
201,138,932 (2024 - 224,114,021) ordinary shares, being the weighted average
number of ordinary shares in issue during the year.
Capital return per ordinary share is based on the net capital loss for the
financial year of £20,271,000 (2024 - gain of £390,111,000) and on
201,138,932 (2024 - 224,114,021) ordinary shares, being the weighted average
number of ordinary shares in issue during the year.
There are no dilutive or potentially dilutive shares in issue.
5. Ordinary dividends
2025 2024 2025 2024
£'000 £'000
Amounts recognised as distributions in the year:
Previous year's final (paid 17 September 2024) 2.10p 3.15p 4,372 7,208
Set out below are the total dividends paid and proposed in respect of the
financial year, which is the basis on which the requirements of section 1158
of the Corporation Tax Act 2010 are considered. The revenue available for
distribution by way of dividend for the year is £3,516,000 (2024 -
£8,241,000).
2025 2024 2025 2024
£'000 £'000
Amounts paid and payable in respect of the financial year
Proposed final (payable 16 September 2025) 0.5p 2.10p 938 4,497
If approved, the recommended final dividend on the ordinary shares will be
paid on 16 September 2025 to shareholders on the register at the close of
business on 8 August 2025. The ex-dividend date is 7 August 2025. The
Company's Registrar offers a Dividend Reinvestment Plan and the final date for
elections for this dividend is 26 August 2025.
6.Fixed assets - investments
As at 30 April 2025 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed and suspended 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
As at 30 April 2024 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed and suspended equities 2,714,161 73,796 - 2,787,957
Unlisted securities - - 59,111 59,111
Total financial asset investments 2,714,161 73,796 59,111 2,847,068
Investments in securities are financial assets held at fair value through
profit or loss. In accordance with Financial Reporting Standard 102, the
tables above provide an analysis of these investments based on the fair value
hierarchy described below, which reflects the reliability and significance of
the information used to measure their fair value.
Level 2 investments comprise the Company's holding in The Schiehallion Fund.
The suspended investment in Sberbank of Russia has been valued at nil.
Fair value hierarchy
The fair value hierarchy used to analyse the basis on which the fair values of
financial instruments held at fair value through the profit and loss account
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).
Private Company Investments
Private company 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' private company investment policy
applies techniques consistent with the International Private Equity and
Venture Capital Valuation Guidelines 2022 ('IPEV'). The techniques applied are
predominantly market-based approaches. The market-based approaches available
under IPEV are set out below and are followed by an explanation of how they
are applied to the Company's private company portfolio:
¾ Multiples;
¾ Industry Valuation Benchmarks; and
¾ Available Market Prices.
The nature of the private company portfolio currently will influence the
valuation technique applied. The valuation approach recognises that, as stated
in the IPEV Guidelines, the price of a recent investment, if resulting from an
orderly transaction, generally represents fair value as at the transaction
date and may be an appropriate starting point for estimating fair value at
subsequent measurement dates. However, consideration is given to the facts and
circumstances as at the subsequent measurement date, including changes in the
market or performance of the investee company. Milestone analysis is used
where appropriate to incorporate the operational progress of the investee
company into the valuation. Additionally, the background to the transaction
must be considered. As a result, various multiples-based techniques are
employed to assess the valuations particularly in those companies with
established revenues. Discounted cashflows are used where appropriate. An
absence of relevant industry peers may preclude the application of the
Industry Valuation Benchmarks technique and an absence of observable prices
may preclude the Available Market Prices approach. All valuations are
cross-checked for reasonableness by employing relevant alternative techniques.
The private company investments are valued according to a three monthly cycle
of measurement dates. The fair value of the private company investments will
be reviewed before the next scheduled three-monthly measurement date on the
following occasions:
¾ at the year end and half year end of the Company; and
¾ where there is an indication of a change in fair value as defined in the
IPEV guidelines (commonly referred to as 'trigger' events).
2025 2025 2025 2024
Listed Unlisted Total Total
securities securities (*) securities securities
£'000 £'000 £'000 £'000
Cost of investments at start of year 1,784,555 58,551 1,843,106 1,913,829
Investment holding gains/(losses) at start of year 1,003,402 560 1,003,962 660,579
Value of investments at start of year 2,787,957 59,111 2,847,068 2,574,408
Movements in year:
Purchases at cost 678,941 - 678,941 463,039
Sales proceeds received (978,864) (320) (979,184) (579,807)
Gains/(losses) on investments (40,050) 21,696 (18,354) 389,428
Value of investments at end of year 2,447,984 80,487 2,528,471 2,847,068
Cost of investments at end of year 1,819,112 58,231 1,877,343 1,843,106
Investment holding gains at end of year 628,872 22,256 651,128 1,003,962
Value of investments at end of year 2,447,984 80,487 2,528,471 2,847,068
(*) Includes holdings in ordinary shares, preference shares and
contingent value rights.
The Company received proceeds of £979,184,000 (2024 - £579,807,000) from
investments sold during the year. The book cost of these investments when they
were purchased was £644,704,000 (2024 - £533,762,000). These investments
have been revalued over time and, until they were sold, any unrealised
gains/losses were included in the fair value of the investments. Transaction
costs of £433,000 (2024 - £272,000) and £407,000 (2024 - £281,000) were
suffered on purchases and sales respectively.
2025 2024
£'000 £'000
Net gains/(losses) on investments
Realised gains/(losses) on sales 334,480 46,045
Changes in investment holding gains (352,834) 343,383
(18,354) 389,428
Significant Holdings Disclosure Requirements - Companies Act 2006
The following is provided in accordance with the disclosure requirements of
the Companies Act 2006 in relation to investments which amount to 20% or more
of the nominal value of any class of shares in an undertaking.
During the year the Company had a holding in class A shares of Silk Invest
Private Equity Fund S.A. SICAR, compartment 'Silk Invest Africa Food Fund'
which is incorporated in Luxembourg. At 30 April Monks holding was:
2025 2025 2025 2024 2024 2024
Shares Value % of Shares Value % of
held £'000 shares held held £'000 shares held
Silk Invest Africa Food Fund 10,000 2,438 42.6 10,000 2,452 42.6
7. Creditors - amounts falling due within one year
2025 2024
£'000 £'000
Royal Bank of Scotland International Limited 50,000 -
National Australia Bank Limited loan - 50,000
Investment purchases awaiting settlement 4,704 3,268
Share buybacks awaiting settlement 733 3,922
Other creditors and accruals 5,488 4,797
60,925 61,987
None of the above creditors are financial liabilities held at fair value
through profit or loss. Included in other creditors is £2,212,000 (2024 -
£2,464,000) in respect of the investment management fee.
Borrowing facilities
At 30 April 2025 the Company had a 3 year £100 million unsecured floating
rate revolving facility with Royal Bank of Scotland International Limited,
which expires on 28 November 2027.
At 30 April 2025 drawings were as follows:
- The Royal Bank of Scotland International Limited: £50 million at
an interest rate of 1.6% over SONIA, maturing in May 2025 (2024 - National
Australia Bank Limited: £50 million at an interest rate of 1.4% over SONIA,
maturing in October 2024).
The main covenants relating to the above loans are that total borrowings shall
not exceed 30% of the Company's adjusted net asset value and the Company's
minimum adjusted net asset value shall be £650 million.
There were no breaches of loan covenants during the year to 30 April 2025
(2024 - none).
Creditors - amounts falling due after more than one year
Repayment Nominal Effective 2025 2024
date rate rate £'000 £'000
£60 million 1.86% notes 2054 7/8/2054 1.86% 1.86% 59,910 59,907
£40 million 1.77% notes 2045 7/8/2045 1.77% 1.77% 39,958 39,956
¥2,500 million 2.17% notes 2037 12/12/2037 2.17% 2.17% 13,122 12,687
€18 million 4.55% notes 2035 12/12/2035 4.55% 4.55% 15,319 15,370
€35 million 4.29% notes 2033 12/12/2033 4.29% 4.29% 29,787 29,886
€18 million 4.30% notes 2030 12/12/2030 4.30% 4.30% 15,319 15,370
173,415 173,176
Provision for liability in respect of Indian capital gains tax 748 1,896
174,163 175,072
Unsecured loan notes
The unsecured loan notes are stated at the cumulative amount of net proceeds
after issue expenses. The cumulative effect is to reduce the carrying amount
of borrowings by £132,000 (2024 - £137,000).
Provision for tax liability
The tax liability provision at 30 April 2025 of £748,000 (30 April 2024 -
£1,896,000) 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 gains 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.
8. Share capital
2025 2025 2024 2024
Number £'000 Number £'000
Allotted, called up and fully paid ordinary shares of 5p each 187,622,666 9,381 214,130,666 10,707
Treasury shares of 5p each 65,548,794 3,278 39,040,794 1,952
Total 253,171,460 12,659 253,171,460 12,659
The Company's authority permits it to hold shares bought back 'in treasury'.
Such treasury shares may be subsequently either sold for cash (at, or at a
premium to, net asset value per ordinary share) or cancelled. In the year to
30 April 2025, 26,508,000 shares with a nominal value of £1,325,000 were
bought back at a total cost of £319,669,000 to be held in treasury (2024 -
16,666,000 ordinary shares with a nominal value of £833,000 were bought back
at a total cost of £172,887,000 and held in treasury). No shares were issued
from treasury during the year and at 30 April 2025 65,548,794 (2024 -
39,040,794) shares were held in treasury. At 30 April 2025 the Company had
authority to buy back 12,871,293 ordinary shares and to allot or sell from
treasury 21,061,566 ordinary shares without application of pre-emption rights.
Under the provisions of the Company's Articles of Association share buy-backs
are funded from the capital reserve. In the period 1 May 2025 to 26 June 2025
the Company bought back a further 2,647,000 shares with a nominal value of
£132,000 at a total cost of £33,076,000 to be held in treasury. At 26 June
2025 68,195,794 shares were held in treasury and the Company had authority
remaining to buy back a further 10,224,293 ordinary shares.
9. The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 April 2025 or 2024 but is
derived from those accounts. Statutory accounts for 2024 have been delivered
to the Registrar of Companies and those for 2025 will be delivered in due
course. The auditor has reported on these accounts; the reports were (i)
unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
10. Transactions with Related Parties and the Managers and Secretaries
No Director has a contract of service with the Company. During the year no
Director was interested in any contract or other matter requiring disclosure
under section 412 of the Companies Act 2006.
Details of the management fee arrangements are included in note 3 above.
11. The Annual Report and Financial Statements will be available on
the Managers' website monksinvestmenttrust.co.uk(‡) on or around 21 July
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.
None of the views expressed in this document should be construed as advice to
buy or sell a particular investment.
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.
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 liquid assets
This is the Company's definition of net liquid assets, comprising current
assets less current liabilities (excluding borrowings) and provisions.
Active share (APM)
Active share, a measure of how actively a portfolio is managed, is the
percentage of the 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.
Unlisted, unquoted and private company investments
'Unlisted', 'unquoted' and 'private company' investments are investments in
securities not traded on a recognised exchange.
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.
2025 2025 2024 2024
£'000 per share £'000 per share
Shareholders' funds (borrowings at book value) 2,318,906 1,235.9p 2,661,137 1,242.8p
Add: book value of borrowings 223,415 119.1p 223,176 104.2p
Less: par value of borrowings (223,547) (119.1p) (223,313) (104.3p)
Net asset value (borrowings at par value) 2,318,774 1,235.9p 2,661,000 1,242.7p
The per share figures above are based on 187,622,666 (2024 - 214,130,666)
ordinary shares of 5p, being the number of ordinary shares in issue at the
year 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.
2025 2025 2024 2024
£'000 per share £'000 per share
Shareholders' funds (borrowings at book value) 2,318,906 1,235.9p 2,661,137 1,242.8p
Add: book value of borrowings 223,415 119.1p 223,176 104.2p
Less: fair value of borrowings (168,444) (89.8p) (173,210) (80.9p)
Net asset value (borrowings at fair value) 2,373,877 1,265.2p 2,711,103 1,266.1p
The per share figures above are based on 187,622,666 (2024 - 214,130,666)
ordinary shares of 5p, being the number of ordinary shares in issue at the
period end excluding treasury shares.
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.
2025 2024
Closing NAV per share (borrowings at par) a 1,235.9p 1,242.7p
Closing NAV per share (borrowings at fair value) b 1,265.2p 1,266.1p
Closing share price c 1,138.0p 1,158.0p
Discount to NAV with borrowings at par (c - a) ÷ a (7.9%) (6.8%)
Discount to NAV with borrowings at fair value (c - b) ÷ b (10.1%) (8.5%)
Total return (APM)
The total return is the return to shareholders after reinvesting the dividend
on the date that the share price goes ex-dividend, as detailed below.
2025 2025 2025 2024 2024 2024
NAV NAV Share NAV NAV Share
(par) (fair) price (par) (fair) price
Closing NAV per share/share price a 1,235.9p 1,265.2p 1,138.0p 1,242.7p 1,266.1p 1,158.0p
Dividend adjustment factor(*) b 1.0017 1.0017 1.0019 1.0028 1.0028 1.0031
Adjusted closing NAV per share/share price c = a x b 1,238.0p 1,267.3p 1,140.1p 1,246.2p 1,269.6p 1,161.6p
Opening NAV per share/share price d 1,242.7p 1,266.1p 1,158.0p 1,058.5p 1,080.0p 975.0p
Total return (c ÷ d) - 1 (0.4%) 0.1% (1.5%) 17.7% 17.6% 19.1%
(*) The dividend adjustment factor is calculated on the assumption that
the dividend of 2.10p (2024 - 3.15p) paid by the Company during the year was
reinvested into shares of the Company at the cum income NAV/share price, as
appropriate, at the ex-dividend date.
Ongoing charges (APM)
The total expenses (excluding dealing and borrowing costs) incurred by the
Company as a percentage of the daily average net asset value (with borrowings
at fair value), as detailed below.
2025 2024
Investment management fee £9,707,000 £9,431,000
Other administrative expenses £1,965,000 £1,850,000
Total expenses a £11,672,000 £11,281,000
Average net asset value (with borrowings deducted at fair value) b £2,700,317,000 £2,589,210,000
Ongoing charges a ÷ b 0.43% 0.44%
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) and brokers' balances 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.
2025 2024
Borrowings (at book cost) a £223,415,000 £223,176,000
Less: cash and cash equivalents (£21,606,000) (£38,622,000)
Less: sales for subsequent settlement (£1,345,000) (£9,749,000)
Add: purchases for subsequent settlement £4,704,000 £7,086,000
Adjusted borrowings b £205,168,000 £181,891,000
Shareholders' funds c £2,318,906,000 £2,661,137,000
Gross (potential) gearing (a ÷ c) 9.6% 8.4%
Net (equity) gearing (b ÷ c) 8.9% 6.8%
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers (AIFM)
Regulations leverage is any method which increases the Company's exposure,
including the borrowing of cash and the use of derivatives. It is expressed as
a ratio between the Company's exposure and its net asset value and can be
calculated on a gross and a commitment method. Under the gross method,
exposure represents the sum of the Company's positions after the deduction of
sterling cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the
deduction of sterling cash balances and after certain hedging and netting
positions are offset against each other.
Compound annual return (APM)
The compound annual return converts the return over a period of longer than
one year to a constant annual rate of return applied to the compounded value
at the start of each year.
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.
Attribution
Attribution is the analysis of the effect of investment management decisions
on the performance of portfolio. Attribution can be conducted at different
levels depending on the product, these includes region, country, sector and
stock analysis. Attribution can be relative to an index or absolute.
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.
Sustainable Finance Disclosure Regulation ('SFDR')
The EU Sustainable Finance Disclosure Regulation ('SFDR') does not have a
direct impact in the UK due to Brexit, however, it applies to third-country
products marketed in the EU. As The Monks Investment Trust PLC is marketed in
the EU by the AIFM, Baillie Gifford & Co Limited, via the National Private
Placement Regime ('NPPR') the following disclosures have been provided to
comply with the high-level requirements of SFDR.
The AIFM has adopted Baillie Gifford & Co's stewardship principles and
guidelines as its policy on integration of sustainability risks in investment
decisions.
Baillie Gifford & Co believes that a company cannot be financially
sustainable in the long run if its approach to business is fundamentally out
of line with changing societal expectations. It defines 'sustainability' as a
deliberately broad concept which encapsulates a company's purpose, values,
business model, culture, and operating practices.
Baillie Gifford & Co's approach to investment is based on identifying and
holding high quality growth businesses that enjoy sustainable competitive
advantages in their marketplace. To do this it looks beyond current financial
performance, undertaking proprietary research to build up an in-depth
knowledge of an individual company and a view on its long-term prospects. This
includes the consideration of sustainability factors (environmental, social
and/or governance matters) which it believes will positively or negatively
influence the financial returns of an investment.
The likely impact on the return of the portfolio from a potential or actual
material decline in the value of investment due to the occurrence of an
environmental, social or governance event or condition will vary and will
depend on several factors including but not limited to the type, extent,
complexity and duration of an event or condition, prevailing market conditions
and existence of any mitigating factors.
Whilst consideration is given to sustainability matters, there are no
restrictions on the investment universe of the Company, unless otherwise
stated within in its investment objective & policy. Baillie Gifford &
Co can invest in any companies it believes could create beneficial long-term
returns for investors. However, this might result in investments being made in
companies that ultimately cause a negative outcome for the environment or
society.
More detail on the Manager's approach to sustainability can be found in the
stewardship principles and guidelines document, available publicly on the
Baillie Gifford website bailliegifford.com and by scanning the QR code below.
The underlying investments do not take into account the EU criteria for
environmentally sustainable economic activities established under the EU
Taxonomy Regulation.
1 July 2025
For further information please contact:
Jonathan Atkins, Four Communications
Tel: 0203 920 0555 or 07872 495396
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR RBMLTMTBMBBARecent news on Monks Investment Trust
See all newsREG - Monks Inv.Trust - Transaction in Own Shares
AnnouncementREG - Monks Inv.Trust - Net Asset Value(s)
AnnouncementREG - Monks Inv.Trust - Net Asset Value(s)
AnnouncementREG - Monks Inv.Trust - Net Asset Value(s)
AnnouncementREG - Monks Inv.Trust - The Monks Investment Trust PLC Annual Results
Announcement