Annual Report and Financial Statements

30 April 2022

THE MONKS

INVESTMENT TRUST PLC

Global growth from

different perspectives

Notes

None of the views expressed in this document should be construed as advice to buy or sell a particular

investment.

Investment trusts are UK public listed companies and as such comply with the requirements of the UK Listing

Authority. They are not authorised or regulated by the Financial Conduct Authority (FCA).

Monks currently conducts its affairs, and intends to continue to conduct its affairs, so that the Company’s

Ordinary Shares can qualify to be considered as a mainstream investment product and can be recommended

by Independent Financial Advisers to ordinary retail investors in accordance with the rules of the FCA in

relation to non-mainstream investment products.

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.

If you are in any doubt as to the action you should take you should consult your stockbroker, bank manager,

solicitor, accountant or other independent financial advisor authorised under the Financial Services and

Markets Act 2000 immediately if you are in the United Kingdom or, if not, from another appropriately

authorised financial adviser.

If you have sold or otherwise transferred all of your ordinary shares in The Monks Investment Trust PLC, please

forward this document, together with accompanying documents, but not your personalised Form of Proxy,

as soon as possible to the purchaser or transferee or to the stockbroker, bank or other agent through whom

the sale or transfer was or is being effected for delivery to the purchaser or transferee.

Global growth from different perspectives

The Monks Investment Trust aims to deliver above average

long-term returns for shareholders by keeping fees and

costs low and harnessing the long-term growth potential

of companies.

1 Financial Highlights

Strategic Report

2 Chairman’s Statement

4 The Managers’ Core Investment Beliefs

5 Managers’ Report

9 Portfolio Positioning

10 Investment Portfolio by Growth Category

12 List of Investments

15 One Year Summary

16 Five Year Summary

17 Ten Year Summary

18 Business Review

Governance Report

23 Directors and Management

24 Directors’ Report

28 Corporate Governance Report

33 Audit Committee Report

35 Directors’ Remuneration Report

37 Statement of Directors’ Responsibilities

Financial Report

38 Independent Auditor’s Report

44 Income Statement

45 Balance Sheet

46 Statement of Changes in Equity

47 Cash Flow Statement

48 Notes to the Financial Statements

Shareholder Information

65 Notice of Annual General Meeting

70 Further Shareholder Information

70 Analysis of Shareholders

71 Automatic Exchange of Information

71 Alternative Investment Fund

Managers Regulations

72 Sustainable Finance Disclosure Regulation

73 Communicating with Shareholders

73 Third Party Data Provider Disclaimer

74 Glossary of Terms and Alternative

Performance Measures

Contents

Investor Disclosure Document

The UK Alternative Investment Fund Managers Regulations require certain information to be

made available to investors prior to their investment in the Company. The Company’s Investor

Disclosure Document is available for viewing at monksinvestmenttrust.co.uk.

Front cover

Directly below shot of modern

building against sky, Hong Kong.

The Monks Investment Trust PLC 01

Financial Highlights

Source:Refinitiv/BaillieGifford.Allfiguresarestatedonatotalreturnbasis.TotalreturnisanAlternativePerformanceMeasure

–seeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

†

Benchmark–theFTSEWorldIndex(insterlingterms)istheprincipalindexagainstwhichperformanceismeasured.

AlternativePerformanceMeasure–seeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

Pastperformanceisnotaguidetofutureperformance.Seedisclaimeronpage73.

Share Price

-24.6% NAV

-19.5%

(borrowingsatpar)

NAV

-18.9%

(borrowingsat

fairvalue)

Benchmark

†

6.1%

Financial Highlights – Year to 30 April 2022

2021

DJ FMJ J

O N

2022

1600

1200

1000

800

1400

2021

DJ FMJ J

O N

2022

(4)

(8)

2021

DJ FMJ J

O N

2022

120

110

100

Share Price (pence)

Shareprice

Premium/(Discount)

Premium/(Discount)

(afterdeducting

borrowingsatfair

value

)plottedasat

monthenddates

NAV and Benchmark

(figuresrebasedto100

at30April2021)

NAVtotalreturn

(afterdeducting

borrowingsatfairvalue

)

Benchmark

†

totalreturn

02AnnualReport2022

Strategic Report

Totalreturnsfrom31March2015to30April2022.

Pastperformanceisnotaguidetofutureperformance.TotalreturninformationissourcedfromBaillieGifford/Refinitivandrelevantunderlying

indexproviders.Seedisclaimeronpage73.

ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

Chairman’s Statement

TheendofCovidrestrictionsintheWesternworldhasdelivered

anewsetofchallengestoinvestors.Oureconomicproblems

aremanifestingthemselvesinaburstofinflation,leavingcentral

bankerswithnogoodpolicychoices.Wecannotknowwhether

inflationwillbecuredbyaneconomicslowdown,orwhethera

slowdownwillturnintoanastyrecession.Stockmarketshave

reflectedthisgreateruncertaintybymarkingdownthepricesof

allfinancialassets,particularlyhittingthegrowthcompaniesin

whichMonksinvests.

Justasinpreviousinflationaryperiods,anumberofcyclicaland

structuralproblemshavecoincided.Theproblemswefaceare:

scarcityofcommoditiesandfuel;theneedtore-armtoprevent

conflict;andthere-orderingofsupplychains.Underinvestment

inoilandgas,newsourcesofpower,andnaturalresources

extraction,hasboostedthepricesoffuelandcommodities.

Russia’sinvasionofUkrainehasreinforcedthescarcityoffuel,

metalsandsoftcommodities.Ithasalsoledtotheprospectof

greatermilitaryexpenditurebyNATOcountriesafteryearsofthe

‘peacedividend’.Supplychainswereexposedasfragilewhen

Covidstruck,andChina’songoingrestrictionswhiletherestof

theworldreopened,haveexacerbatedtheproblem,ashas

China’stacitsupportforMrPutin.Inanycasethegreat

outsourcingofmanufacturingtoChinawasreachingitsnatural

limitasChina’scostadvantageeroded.

Alloftheseproblemshavearisenaseconomiesrespondedto

pent-updemandafternearlytwoyearsofrestrictionsonnormal

life,andpermanentchangestopatternsoflivingandworking.

Thescaleofmonetarylargesseduringthecriticalearlystagesof

thepandemicturnsout,withthebenefitofhindsight,tohavebeen

toomuch.Excessmoneyisextinguishedonlybyrealsupplyor

pricerises.Unliketheendofthe1970swhencentralbankers

finallytookoninflationandraisedinterestratessubstantially,

policymakersfacetheconstraintofhighlevelsofdebtforthe

state,thecorporatesectorandhouseholds.Thismakesthefuture

pathofratesandtheeconomyparticularlydifficulttogauge.

Afterfivesequentialyearsofoutperformance,theMonksportfolio

hassufferedsincemoreofgrowthcompanies’valueisinthe

future.Whateverthecourseofmacroeconomicpolicy,though,

ourliveswillcontinuetochangeastechnologyevolves,andthe

companiesthatwillultimatelydowellregardless,arethosethat

captureandexploitthischange.ThisiswhattheManagersseek

todothroughtheirbottom-up,stock-pickingapproach.The

identificationandpatientownershipofexceptionalcompanies

drivingfundamentalchangeislikelytosupportrealgrowth.

Thisisstillthebestsourceofwealthcreation.

Performance

DuringtheyeartheNAVtotalreturn,withborrowingscalculated

atfairvalue,was-18.9%andthesharepricetotalreturnwas

-24.6%,whiletheFTSEWorldIndexreturned+6.1%.Thisisa

disappointingoutcomebutshouldbeconsideredinthecontextof

Monks’long-terminvestmentapproach.Indeed,itisnowseven

yearssincethechangeininvestmentapproachwasimplemented

inMarch2015.Fiveyearsandbeyondareappropriateyardsticks

bywhichtomeasurethelong-termstrategyoftheCompany.

SincetheendofMarch2015theNAVtotalreturnhasbeen

147.8%

*againstthecomparativeindexat128.9%*.Overthe

sameperiodthesharepricetotalreturnwas163.6%

Share Capital

Followingseveralyearsofsignificantshareissuance,theBoard

decidedtosupplementnaturalmarketliquiditythroughbuybacks

intotreasuryforsubsequentreissuewhentheCompany’sshares

returntotradingatapremiumtoNAV.BuyingintheCompany’s

ownsharesatadiscounttoNAVenhancesNAVpersharefor

ongoingshareholdersandhelpstorelieveshorttermimbalances

betweenbuyersandsellersintheopenmarket.Withtheshares

tradingataconsistentdiscountthroughouttheyear,the

Companyboughtback8.8millionshares,costing£97.9million.

ThediscounttoNAVwithborrowingscalculatedatfairvaluewas

4.4%asat30April2022,comparedtoapremiumof2.8%at

30April2021.

Borrowings and Gearing

OurInvestmentTruststructureallowsgearing,whichwillenhance

long-termreturns,eveniffutureequityreturnsareclosertothe

long-runaveragethanwehaveexperiencedoverthelastfive

years.TheBoard’sstrategicborrowingtargetis10%anditis

expectedthatgearingwillbemaintainedintherangeofminus

15%toplus15%.Gearingwaslow(1.0%)atthestartofthe

yearandremainedso(0.8%)goingintothesharpsharepricefalls

inlate2021.Itendedtheperiodat7.3%.Ourrevolvingcredit

facilitywasrenewedforathree-yearperiodinNovember2021.

Thisshort-termborrowingiscomplementedbyamixtureof

long-termdebtissuedtoinsurancecompanies,securedatvery

attractiveratesin2020,andalong-standingdebenturematuring

inMarch2023.

Management Expenses

Monksisverycompetitiveonfeesandexpenses,whichhelpsto

enhancereturnstoshareholders.Thetotalongoingchargesratio

fortheyearto30April2022was0.40%,downfrom0.43%in

theprioryearand0.58%atApril2015.Thecurrenttiered

managementfeescaleshouldensurethatallshareholderswill

benefitfromeconomiesofscale.

The Monks Investment Trust PLC 03

Strategic Report

Earnings and Dividend

Monksinvestswiththeaimofmaximisingcapitalgrowthrather

thanincome.Allcostsaretherefore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mayreducethesharesinissuequalifying

fordividends,theBoardisrecommendingthatasinglefinal

dividendof2.35pbepaid,comparedto2.0plastyear,toensure

thattheamountretainedfortheyeardoesnotexceedthat

permissible.

Governance and Sustainability

TheCompany’sManagerscontinuetobeveryfocusedon

ensuringtheholdingsintheportfolioaddresstheneedsofall

stakeholders.Atthesametime,theywishtobackandencourage

ambitionamongstthecompaniesthattheyownforyou.This

requiresdeepunderstandingofindividualcompaniesandthe

patiencetoengagewithmanagement.JustasMonksinvestsfor

thelongterm,weencouragetheinvesteecompaniestodothe

same.EachyeartheManagershavematerialengagementswith

welloverhalftheholdingsintheportfolio.Atpresent,anindustry

isemergingaroundthenarrowmeasurementofEnvironmental,

SocialandGovernancefactors.Whilstwewillpaycloseattention

totheseandintimewillreportonmetricswefeelareappropriate,

wethinkthatpatientengagementwithandencouragementof

companymanagementteamsisthebestwaytoenhance

long-termreturns,andmuchofthiscannotbecaptured

quantitatively.Iwouldstronglyencourageyoutorefertothe

Monks Stewardship Report 2021ontheCompany’pageof

theManagers’websiteandreadmoreabouthowtheManagers

thoughtfullyengagewiththecompaniestheyinvestinon

yourbehalf.

The Board

FollowingtheretirementfromtheBoardofJamesFergusonand

EdwardHarley,theDirectorsreviewedtheskills,experience,and

balanceoftenurelengthsoftheremainingBoardmembers;

consideredrecentandanticipateddevelopmentsinthecommercial

andregulatorylandscape;andappointedOdgersBerndtsonto

commencethesearchforanewDirector.

Outlook

Shareholdershaveexperiencedasharpsharepricedeclineinthe

lastyearbutitisattimeslikethesethatitisofutmostimportance

thattheManagerssticktotheirlongstandinginvestment

approach,whichisbasedonbottom-upstockpickinganda

focusongrowthcompanies.Thevastmajorityoftheportfolio

holdingscontinuetoperformwelloperationally,andinthe

Managers’view,remainstronglyplacedtogrowoverthelong

term.AnimportantaspectoftheapproachisfortheManagers

toremainfarsightedintheiroutlookastheyseektoidentify

long-termstructuralchange.Iwouldencourageshareholdersto

readtheManagers’latestResearchAgenda,whichcanbefound

ontheCompany’spageoftheManagers’website.Thishighlights

ahandfulofareasofsignificantchangewhicharelikelytoyield

someexcitinggrowthopportunitiesinthefuture.Theseinclude

whereopportunitiesmayexistastheWorldtransitionsawayfrom

fossilfuelstowardsrenewableenergyandwheretechnologyand

softwaremayhelptounlockscaleconstraintsforhealthcareand

biotechbusinesses.Wedonotexpectreturnstobelinear–

volatilityispartoflong-terminvesting.TheManagerisinastrong

positiontoidentifyattractivegrowthopportunitiesatcompelling

valuationsinordertodeliverattractivelong-termreturnsfor

shareholders.TheBoardremainconfidentintheinvestment

approachandoptimisticaboutthefuture.

Annual General Meeting

TheCompany’sAGMhasbeenscheduledtotakeplaceon

Tuesday6September2022attheInstituteofDirectors,PallMall,

London,SW1Y5ED.Lastyear,theBoardannouncedandfully

intendedtoholdaphysicalmeetingbut,giventheongoing

uncertaintycreatedbyrisinginfectionsandthepotentialimpact

ofshort-noticecancellationbykeyparticipantsowingtosickness,

revertedtoapurelyadministrativemeetingheldattheManagers’

offices,limitingattendancetothoserequiredforaquorum.

Weverymuchhopethatthisyearcircumstanceswillpermitusto

meettheCompany’sshareholdersinperson.Nevertheless,given

thatCovid-19remainsincirculationandnewvariantsmaypresent

newchallenges,theBoardencouragesallshareholdersto

exercisetheirvotesattheAGMbycompletingandsubmittinga

formofproxy.Wewouldencourageshareholderstomonitorthe

Company’swebsiteatmonksinvestmenttrust.co.ukwhere

anyupdateswillbepostedandmarketannouncementswill

alsobemade.

AmongtheresolutionsbeingputtoshareholdersattheAGM,

newArticlesofAssociationarerecommendedforadoption.

DetailsoftheproposedchangesareprovidedinanAppendixto

theNoticeofAnnualGeneralMeeting.Amongthemarethe

provisionsnecessaryfortheCompanytoholdhybridorremote-

onlygeneralmeetings.Theseprovisionsarebeingintroduced

purelytoenhancetheoperationalresiliencyoftheCompany,to

beusedinextremistoensurethattheessentialbusinessofthe

Companycanbeconducted,shouldcircumstancespreventthe

holdingofphysicalmeetings.Foravoidanceofdoubt,theBoard’s

preferencewillalwaysbetoholdphysicalgeneralmeetings,

allowingshareholderstheopportunitytodiscussthebusiness

arisingwithDirectorsandManagersinperson.

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trustenquiries@bailliegifford.com or

call08009172112.

KSSternberg

Chairman

20June2022

04AnnualReport2022

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onpages10and11.

— 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.

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.Macroeconomicforecastsareofrelatively

littleinteresttous.

— Highactiveshare

*providesthepotentialforaddingvalue.

— Weignorethestructureoftheindex–forexamplethelocation

ofacompany’sHQandthereforeitsdomicilearelessrelevant

tousthanwhereitgeneratessalesandprofits.

— Largeswathesofthemarketareunattractiveandofno

interesttous.

— Asindexagnosticglobalinvestorswecangoanywhereand

onlyinvestinthebestideas.

— 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onpages10and11.

— Theuseofthesethreegrowthcategoriesensuresadiversity

ofgrowthdriverswithinadisciplinedframework.

The Managers’ Core Investment Beliefs

Strategic Report

*ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

The Monks Investment Trust PLC 05

Delivered earnings growth

Delivered total returns

Relative return pa

30%

(10%)

10%

(30%)

20%

(20%)

Excess earnings growth pa

Quintile 5

(Low)

Quintile 4 Quintile 3 Quintile 2 Quintile 1

(High)

15%

(5%)

(15%)

10%

(10%)

Relative return pa

*Totalreturnsfrom31March2015to30April2022.

Pastperformanceisnotaguidetofutureperformance.

TotalreturninformationissourcedfromBaillieGifford/Refinitivandrelevantunderlyingindexproviders.Seedisclaimeronpage73.

ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

Managers’ Report

Strategic Report

Background

ThelatterfourmonthsofMonks’financialyearhasbeenaperfect

stormforgrowthinvestors.Steepsharepricefallshaveoccurred

amidachallengingbackdropofsupplychaindisruptionandrising

levelsofinflation.Alliedtouncertaintyaroundtheregulatoryregime

inChinaandthetragiceventsinUkraine,theresulthasbeena

surgeinvolatilityandanextremeshiftinsentimentcharacterised

byaswingawayfromgrowthtowardsmorevalue-orientedparts

ofthemarket.TheimpactonperformancefortheMonks

investmentTrust,withitsoptimistic,reward-seekingapproach,

hasbeenpainful.

Ameretwelvemonthsago,wewerereflectingonaperiodofvery

strongperformance.Werecognisethatthespeedandsizeofthe

reversalsincethenhasbeenjarringforshareholders.Wehaveno

ideawhattheimmediatefutureholdsandsooffernopredictions

aboutwhatthecomingmonthsmaybring.However,attimeslike

Delivered Median Total Returns on Earnings Growth Quintiles Rolling 5-year Horizons (1992–2021)

Source:FactSet,FTSE,MSCI.TheuniverseconsistsofallstockslistedintheFTSEWorldandMSCIACWIIndicesateachstartingperiodandexcludingrepetitions.

Performance

ThecurrentteamhasmanagedTheMonksInvestmentTrust

forsevenyears.Overthisperiod,thetotalreturnhasbeen

+147.8%

*(shareprice+163.6%*)comparedtothecomparative

index(FTSEWorld)whichisup+128.9%

*.TheyeartoApril2022

hasbeenchallenging.ThefairvalueNAVtotalreturnwas-18.9%

(shareprice-24.9%)againstthecomparativeindextotalreturn

of+6.1%.Thisisdisappointingforshareholdersbutshouldbe

consideredinthecontextofhavingfollowedaperiodof

exceptionalreturns,andtheCompany’slong-terminvestment

horizon.

Underlyingtheextremeshiftawayfromgrowthtowardsvalue

(theMSCIValueindexhasoutperformedthecorresponding

Growthindexby+15.5%inthefourmonthstotheendof

April2022),therehavebeentwoprincipaldriversofMonks’

underperformance.Onerelatestoearly-stagegrowthcompanies

andtheother,toChinesebusinesses.

this,itishelpfultoreturntotheprinciplewhichguideshowwe

looktoaddvalueoverlongperiodsoftime.Thisapproachis

basedontheidentificationandpatientownershipofspecial

companies,definedasthosethathavethepotentialtodeliver

attractiveratesofearningsgrowthoverperiodsoffiveyearsor

more.Thereisaveryhighcorrelationbetweencompaniesthat

ultimatelydeliveronthispotentialandthosethatalsooutperform

inshare-priceterms.Lookingatthethousandsofstocksinthe

globaluniverseofequitiesdatingback30yearsandcategorising

themaccordingtotheirratesofearningsgrowth,share-price

returnsclearlyandconsistentlyfollowoperationalperformance.

Thisrelationshipbetweenthepotentialforlong-termvaluecreation

andshare-priceperformancebreaksdownovershorterperiods

butunderpinsoursteadfastapproachtolong-terminvesting.

06AnnualReport2022

©Shutterstock/hodim.

Mastercard, the digital payments business, continues to grow

at attractive rates.

Strategic Report

Therecentenvironmenthasreflectedahighdegreeofscepticism

withregardstothefuturepotentialofcompaniesyettoachieve

sustainedprofitabilityandtheprobabilitythattheywillbeableto

earnattractivereturnsontheirhighlevelsofcurrentinvestment.

ExcludingMonks’investmentsinprivatecompanies,around

13%ofthelistedportfolioiscurrentlylossmaking.Ourwork

hasprovidedreassurancethatnotonlydoavastmajorityofthe

companiesremainresilient,butthattheycontinuetomake

strongoperationalprogress,despitetheirsharepricetravails.

AmongthemostacuteexamplesisFarfetch,theonlineluxury

goodsmarketplacewhichhasdoubledvolumesandrevenues

inthepasttwoyears.Despitethis,itisamongthelargest

detractorsfromperformance(sharesaredown-74%).

Wecontinuetobelieveinthecompany’spathtoprofitability.

Theshares’currentvaluation(1.1xforward12msales)appears

toustomateriallyundervalueFarfetch’sopportunitynotonlyin

itscoreonlinemarketplace,butinits‘PlatformSolutions’

business,whichenablesbrandsandretailerstodriveonline

growth.AcompanywhichisofconcernisourholdinginPeloton

(homefitness).Thecompanyhassignificantlyoverestimated

demandandcommittedtoomuchcapitaltotheproductionof

itshardware(bikes).Thishasunderminedtheprospectoffuture

profitability.AnewCEOinBarryMcCarthy,formerlyofNetflix

andSpotify,isamoveintherightdirection,howeverthisstock

remainsfirmlyunderreviewandhasbeenadisappointingholding

sincewepurchaseditinAugust2021.

SharepricesofamajorityofMonks’Chineseholdingsfellsharply

followingtheimpositionofwidespreadregulationbycentral

government.HoldingssuchasAlibaba(ecommerceandcloud

computing),Meituan(fooddelivery)andNaspersandProsus

(whichhavelook-throughexposuretoTencentinsocialmedia

andgaming)havefallenbybetween50–70%.Weseektoremain

open-mindedaboutthelong-termregulatoryimplications.Onthe

onehand,webelievethatmuchoftheregulationislikelyto

supportbusinessestobesustainableandoperatewiththegrain

ofsociety(forexample,someoftheregulationsupportssocial

provisionforthelowestpaidworkers).Ontheother,weseekto

remainvigilantwherethereisevidencethattheChinesestateis

limitingtheupsideforprivatecompanies.Wehaveactedwhere

thishasbeenthecaseinsellingPingAnHealthcareand

Technology(telemedicine)andreducingtheportfolio’spositionin

Meituan.Wecontinuetotakesignalsfromwhatweseeatthe

corporatelevelandareactivelyreviewingotherpositionsincluding

KEHoldings(onlinerealestate)andTencentMusicEntertainment

inwhatisanuncertainsituation.

Portfolio Positioning

Widespreadandindiscriminatesharepricefallsbringwiththem

significantchallenges.Ourresponsehasbeentobedisciplined

withregardstoourprocess,toensurethatwecontinuetostretch

outourtimehorizonsandtofocusonfundamentalchangesto

theinvestmentcasesofthecompaniesintheportfolio.A

significantdeclineinacompany’ssharepriceisafarfromreliable

signalthataninvestmentcaseisbroken.Indeed,someofMonks’

highestreturningholdingshaveexperienceddrawdownsofmore

than50percent.ThisincludesthelikesofTesla(electricvehicles),

Amazon(ecommerceandcloud),Moody’s(creditrating)and

Anthem(healthinsurance).Ourexaminationoftheoperational

progressacrosstheportfolioisreassuring.Theportfolio’srevenue

growthisaccelerating.Overthenextyear,salesareforecastto

growat17%(twicetherateoftheprior5-yearaverage)

comparedwithamarketrateof10%.Importantly,thispatternof

accelerationisbroadlyevidentacrossthedifferentpartsofthe

portfolio,incorporatingcompoundingbusinesseslikeMastercard

(digitalpayments)orEstéeLauder(cosmetics);innovative,high

growthcompanieslikeCloudflare(cloudsoftware)orTheTrade

Desk(programmaticadvertising);aswellasmorecyclical

operatorslikeCRH(buildmaterials)orAlbemarle(lithiummining).

©Shutterstock/pornpawit.

Estée Lauder has a high quality portfolio of cosmetic brands.

The Monks Investment Trust PLC 07

Strategic Report

Wehaveassessedalltheportfoliowithregardstohowitmayfare

inanenvironmentofpersistentlyhigherinflation,attemptingtoget

beyondthesimplisticnarrativethathigherlevelsofinflation,and

theaccompanyingpotentialforrisinginterestrates,isbadfor

growthcompanies.Thisworkincorporatedassessingvarious

aspectsofpricingpower,includingthefrequencyofpurchases

andthedegreeofvalue-add,marginstructures,thespeedofthe

businesscycleandcapitalintensity.Ourconclusionisthatthe

portfolioisskewedtowardsbusinesseswithahighdegreeof

flexibilitytocopewithasurgeininflation.Forexample,whilst

MartinMarietta(materialsandbuildingsupplies)isacapital-

intensiveoperator,byvirtueofdominatingitslocalmarketsinthe

US,itpossessesexceptionalpricingpower(ithasincreasedprices

onaverageby4.5%p.a.overthepastdecade).Alternatively,

Mastercard(digitalpayments)withitsinfrastructurelikeposition

inpaymentsandcapitallightbusinessmodelhassignificantroom

formanoeuvreagainstamorechallengingbackdrop.

Asactive,stockpickinginvestorsweareacutelyawareofthe

opportunitiesthatthecurrentmarketvolatilitypresents.While

turnoverhasremainedlow(11%),wehaveadded11new

companiestotheportfolioandmadeadditionswheretheupside

iscompelling.Ourfocushasbeentopayheedtooneofour

centralprocessquestionswhichis‘Whatdoesitbringtothe

portfolio?’Wecontinuetovaluethebenefitsofdiversityinsources

ofrevenue,earningsandcashflowgrowthandhavesoughtto

strengthenthisinrecentmonths.Wehaveaddedtotheportfolio

throughpositionsinthelikesofCertara(biosimulationsoftware),

Chewy(onlinepetconsumables),AnalogDevices(analogue

semiconductors),Adobe(creativedigitalsoftware)andRoyalty

Pharma(lifesciencefunding).Additionshavebeenmadewhere

wefeltthatourviewwasmostdifferentiatedfromthemarket–

examplesincludeadditionstoMartinMarietta(aggregates),

Anthem(healthinsurance)andFarfetch(onlineluxury).Saleshave

comefrompositionswhereweeitherfeltthatvaluationsweretoo

high,oracompetitivepositionwasbeingeroded.Intheformer

camp,Resmed(medicaldevices),Advantest(semiconductor

testing)andICICIBank(retailandcommercialbanking)were

companieswhichhaveexecutedwellbutwheretheshareprice

hasoutstrippedtheirfundamentalprogress.Withthebenefitof

perfecthindsight,weshouldhavegonefurtherinreducingother

positionswithintheportfoliogiventhevoracityofsharepricefalls

recently.Inotherregards,theportfoliowaswellpositioned,for

examplenetgearingwas0.8%inNovembergoingintothe

marketreversal.Inthelattercamp,wesoldLendingTree(online

financialplatform),Hays(recruitment)andInteractiveBrokers

(onlinetrading)onthegroundsthatthecompetitivelandscape

wasintensifying,andwelackedconvictionintheabilityofthose

businessestorespondadequately.Elsewhere,Monkshad

minimalexposuretoRussianstocks(0.64%offundatthe

beginningofJanuary)–holdingsinSberbank(retailbank)and

VKLtd(socialmedia).WebegantosellVKLtdpriortothe

commencementofthewarandactedswiftlytosellSberbank

thereafter.AfinancialmarketshutdowninRussiameantthata

fractionalpositioninthesecompaniesremainswithintheportfolio

(<0.01%offund).Wewillseektoselloutcompletelyatour

earliestopportunity.

©Shutterstock/MichaelJayBerlin.

Adobe, the digital content creation platform, offers an

expanding range of tools to users.

©Bloomberg/GettyImages.

Chewy, an online pet consumables business, was added to the

portfolio in the year.

08AnnualReport2022

Stewardship

Itisattimeslikethesethatwebelieveitbecomesmoreimportant

tobepatientandengagedshareholders.Periodsofshare-price

weaknesscanbringbehaviouralchallengesnotjustforinvestors,

butalsoformanagementteamsandmaybedeeplyunsettling

foremployees.Oneoftherisksinthecurrentportfolioisthat

managementteamsreacttothesignalstheyaregettingfrom

themarket,shorteningtheirowntimehorizons,andreiningin

investment.Therewouldlikelybeasignificantopportunitycost

tosuchactions.Whenwehaveengagedwithcompaniesover

recentmonths,wehavethereforeencouragedthemtotryto

decouplethinkingontheiroperationaldecisionmakingfromshare

pricesasmuchaspossible.Wherewefeelthishasnotbeenthe

case,orwheremanagementarefailingtoinvestforthelongterm,

wehavesold.TherecentsaleofLyft(ridesharing)isacasein

point.WefeltthatthescaleofambitionatLyft–havingoncebeen

tobringfleetsofautonomousvehiclestomarket–hasbeen

curtailed.Thishasbeencoupledwithegregiousstock-based

compensationpay-outswhich,inourview,arenotappropriate

givenunderwhelmingoperationalprogressnoralignedwiththe

long-terminterestsofshareholders.

Continued Improvement

ShareholdersinMonksmaybefamiliarwiththegrowthprofiles

(Stalwart,Rapid,CyclicalandLatent)bywhichwedividethe

portfolio.Thesehelptoprovideclarityabouttheinefficiencywe

seektoexploitinourinvestmentsandourexpectationabout

howgrowthistobedelivered.Ouranalysishasshownthatthe

benefitsofdiversificationacrossthegrowthprofilesisreal.

Wehaveconsistentlyfoundthattheportfolioinaggregate

outperformsmoreoftenthananyoftheindividualgrowth

profilesonastandalonebasis.However,ouranalysissuggest

thattheLatentGrowthprofilehasbeensomewhatofalaggard,

outperformingconsiderablylessthanitssiblings.Inotherwords,

itcontributeslittletothepositivediversificationeffectofthe

portfolio.Wehavethereforedecidedtostopexplicitlyseeking

LatentGrowthopportunitiesforMonks.Inourendeavourto

improveasinvestorsitisimportanttorecognisewherewedo

notexcel.Therefore,webelieveitwillbeadditivetosharpenour

focusacrossthethreeothergrowthprofiles,wherewetypically

seethemostattractivegrowthopportunitiesandhaveastrong

trackrecordofidentifyingwinners.Thereisnochangetothe

underlyingportfolioasthecurrentLatentGrowthpositionswill

beretainedwithintheCyclicalGrowthprofileunlessoruntilthey

meetourcriteriafordisposal.

Outlook

Asanactivemanagerourapproachisbasedonnurturing

investmentinsights,whichleadustoadifferentiatedviewonthe

futurepotentialofcompanies.Monks’long-termreturnsdepend

onthis.Afundamentalfeatureofthisapproachisthattherewill

inevitablybeperiodswhenourviewsareverydifferentiated,and

theresultingperformanceoftheportfoliomightbeuncomfortable.

Themanagersrecognisethis,beingthemselvesmaterially

investedintheCompanyandthereforealignedwithshareholders.

Itisanaturaltendencyattimesofturmoilanduncertaintyfortime

horizonstocontract.Ourbeliefintheimportanceofpatience

meansthatwewillcontinuetoallocateourtimetothoseareasof

researchwhichwethinkwillbemostimpactfuloverthelongterm,

focusingonunearthingthegemswhichmaybehandedtousata

timewhenothersarebeingparticularlyfearful,andwhichwillsow

theseedsforfuturegrowth.Inthissense,weremainforward

lookingandoptimisticaboutthefuture.Thankyouforyour

supportandpatience.

SpencerAdair

MalcolmMacColl

BaillieGifford&Co

20June2022

Strategic Report

Monks

Stewardship

Report

2021

Furtherexamplesofour

engagementwithcompanies

canbeseenintheMonks

Stewardship Report 2021.

©Lyft,Inc.

A combination

of curtailed

growth ambitions

and governance

concerns led to

Lyft, the ride

sharing business,

being sold.

The Monks Investment Trust PLC 09

Portfolio Positioning

As at 30 April 2022

Sectoral 2022 (2021)Geographical 2022 (2021)

Industrials

10.6% (9.6%)

Technology

20.6% (23.6%)

Net Liquid Assets 1.2% (3.2%)

Financials

21.1% (20.2%)

Energy 2.8% (1.4%)

Basic Materials 5.0% (3.7%)

Consumer

Staples

2.0% (1.3%)

Telecommunications

nil (0.8%)

Healthcare

14.5% (13.5%)

Consumer

Discretionary

19.5% (19.3%)

Real Estate 2.7% (3.0%)

Utilities nil (0.4%)

North America

54.0% (49.7%)

Net Liquid Assets 1.2% (3.2%)

Emerging

Markets

12.2% (14.9%)

United Kingdom

8.7% (11.6%)

Developed Asia 4.9% (3.9%)

Continental Europe

14.5% (10.5%)

Japan 4.5% (6.2%)

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chartaboveoutlinesthekey

exposuresoftheportfolioattheCompany’syearend:

— 16.8%oftheportfolioisclassifiedasDevelopedMarketGrowth.

Thisincludesexposuretoindustrialandconsumersectors,among

others.IndustrialbusinessesincludeMartinMarietta,aleadingUS

aggregatessupplier.Intheconsumersetting,thereisexposureto

EstéeLauder,aglobalcosmeticsbrand,andRyanair,thelow-cost

airline.

—

16.2

%oftheportfolioisinvestedinstocksidentifiedtobethe

beneficiariesofgrowthinDevelopingEconomies.Thereismeaningful

exposuretocompanieslikelytoprofitfromincreasingconsumption

levelsandfinancialdevelopmentinemergingmarkets.Intheformer

categoryareminingcompaniesBHPandRioTintoandinthelatter

isAIAGroup,thepan-Asianlifeinsurancecompany.

— 40.8%oftheportfolioisidentifiedasbeingexposedtotheNew

Economy.Thisbracketsadiverserangeofbusinessesfrominternet

winnersindevelopedandemergingeconomiestohealthcareand

semiconductorcompanies.*‘PlatformCrush’typicallyreferstocapital

lightonlinecompanieswhichseektoservemultiplestakeholdersvia

aplatformmodel.ExamplesincludeFarfetch,theonlineluxurygoods

business,andDoordashinonlinefooddeliveryintheUS.Prominent

namesinhealthcareincludeIllumina,thegeneticsequencing

companyandModerna,themRNAdrugdiscoverycompany.

TSMCmakessemiconductor‘chips’,whilstTeradyneprovides

testingequipmentandservicestotheindustry.

—

25.0

%oftheportfolioisclassifiedasEconomicallyAgnostic/

Idiosyncratic.Thisincludesadiversifiedrangeofcompanies,manyof

whicharegrowthstalwartbusinesses,suchasAnthem,theUShealth

insuranceprovider,ServiceCorporation,thecrematoriabusinessand

thedigitalpaymentsbusiness,MasterCard.USinsurancespecialists

ArthurJ.GallagherandMarkelmakeuppartoftheexposuretothe

insurancecycle.

—

 Theremaining

1.2

%iscomposedofnetliquidassets.

Thematic Exposure

ConsumerDemand/

 Employment

4.5%

IndustrialDemand 5.9%

CarbonHeavy 2.9%

CapitalMarkets/

 AssetInflation

3.5%

PlatformCrush*

10.4%

Regulation/Anti-trust 9.2%

TransformationalHealth 6.2%

Transformative/

 UnprovenModel

3.9%

EnterpriseCloud 3.6%

Innovation/Chips 3.1%

Other 4.4%

EmergingMarkets

MiddleClasses

—EMFinancial

Development 6.1%

—EMConsumer

Catch-up 3.5%

9.6%

CarbonHeavy 5.8%

Lending/UnderwritingRisk 0.5%

IndustrialDemand 0.3%

HighlyValued

 Compounders

15.5%

Idiosyncratic 6.5%

InsuranceCycle 3.0%

Net Liquid Assets 1.2%

Developed

Market Growth

16.8%

Developing

Economies

16.2%

New

Economy

40.8%

Economically

Agnostic

25.0%

Strategic Report

10AnnualReport2022

Investment Portfolio by Growth Category

As at 30 April 2022

Growth Stalwarts Rapid Growth

c.10%p.a.earningsgrowth

Company characteristics

Durablefranchise

Deliverrobustprofitabilityinmostmacroeconomic

environments

Competitiveadvantageincludesdominantlocalscale,

customerloyaltyandstrongbrands

c.15%to25%p.a.earningsgrowth

Company characteristics

Earlystagebusinesseswithvastgrowthopportunity

Innovatorsattackingexistingprofitpoolsorcreatingnew

markets

Highest

conviction

holdings

c.2.0% each

Anthem

Microsoft

Alphabet

Moody’s

ServiceCorporation

 International

3.8

2.7

2.5

2.4

2.1

ArthurJ.Gallagher

PernodRicard

MasterCard

AIA

ThermoFisher

 Scientific

2.0

1.9

1.8

1.7

1.6

TheSchiehallion

 Fund

†

RelianceIndustries

Prosus

Amazon.com

4.6

2.8

2.3

1.8

Average sized

holdings

c.1.0% each

Prudential

Olympus

EstéeLauder

S&PGlobal

MetaPlatformsInc

1.4

1.3

1.1

1.0

BroadridgeFinancial

 Solutions

Sysmex

AdobeSystems

0.9

0.7

Tesla

TheTradeDesk

HDFC

Illumina

Moderna

B3Group

Alibaba

SeaLimited

1.4

1.2

1.0

0.9

Alnylam

 Pharmaceuticals

PingAnInsurance

EpicGames

MercadoLibre

Cloudflare

Shopify

Schibsted

0.8

0.7

Incubator

holdings

c.0.5% each

CoStar

adidas

AnalogDevices

Certara

Topicus.com

HoshizakiCorp

ChewyInc

0.6

0.5

0.4

0.3

0.2

Meituan

ByteDance

DENSO

Genmab

Doordash

LiAuto

ICICIPrudential

 LifeInsurance

Abiomed

Farfetch

Twilio

CyberAgent

Adyen

Snowflake

Datadog

Renishaw

AxonEnterprise

Trupanion

Lemonade

DenaliTherapeutics

Novocure

AdevintaAsa

CoupangLLC

Wayfair

0.6

0.5

0.4

0.3

StaarSurgical

Bumble

Spotify

Netflix

OscarHealth

AntInternational

ExactSciences

Ubisoft

 Entertainment

Chegg

SpaceExploration

 Technologies

Teladoc

Stripe

Carvana

PelotonInteractive

TencentMusic

 Entertainment

Vimeo

Oatly

KEHoldings

Naspers

VKCompany

 Limited

0.3

0.3

0.2

0.1

0.0

Total in this growth category 34.0% Total in this growth category 39.7%

Time

Earnings

Time

Earnings

Excludesnetliquidassets.

†

CombinedordinaryandCshareholdings.

Strategic Report

The Monks Investment Trust PLC 11

Cyclical Growth

c.10%to15%p.a.earningsgrowththroughacycle

Company characteristics

Subjecttomacroeconomicandcapitalcycleswithsignificant

structuralgrowthprospects

Strongmanagementteamshighlyskilledatcapitalallocation

MartinMarietta

 Materials

BHPGroup

Ryanair

CRH

TSMC

RioTinto

CBREGroup

2.6

2.1

1.9

1.7

1.6

1.5

Total in this

holding size

47.0%

Albemarle

BookingHoldings

RoyaltyPharma

Markel

Teradyne

Richemont

1.3

1.2

1.1

1.0

CharlesSchwab

AtlasCopco

Epiroc

SMC

SiteOneLandscape

 Supply

0.9

0.7

Total in this

holding size

32.3%

DeutscheBoerse

HowardHughes

Nexans

WizzAirHoldings

SandsChina

IAC/Interactivecorp

BrillianceChina

 Automotive

SilkInvestAfrica

 FoodFund

SberbankofRussia

0.6

0.5

0.3

0.2

0.0

Total in this

holding size

20.7%

Total in this growth category 26.3%

Time

Earnings

Strategic Report

12AnnualReport2022

Name Business

Growth

category

Fair value

£’000

% of

total

assets

Cumulative

% of total

assets

Novocure Biotechnologycompanyfocusingonsolid

 tumourtreatment Rapid 8,889 0.3

AdevintaAsa Mediaandclassifiedadvertisingplatforms Rapid 8,724 0.3

CoupangLLC SouthKoreanecommerce Rapid 8,690 0.3

Wayfair Onlinehomefurnishingsbusiness Rapid 8,027 0.3

StaarSurgical Implantablecontactlenses Rapid 7,707 0.3 94.0

Bumble Datingapplication Rapid 7,643 0.3

Spotify Onlinemusicstreamingservice Rapid 7,626 0.3

Netflix SubscriptionserviceforTVshowsandmovies Rapid 7,065 0.3

SandsChina Macaucasinooperator Cyclical 6,986 0.3

OscarHealth Disruptivepersonalinsuranceprovider Rapid 6,981 0.3

HoshizakiCorp Commercialkitchenequipmentmanufacturer Stalwart 6,898 0.3

AntInternational

Chineseonlinepaymentsandfinancialservicesbusiness Rapid 6,871 0.3

ExactSciences Cancerdetectionandtreatment Rapid 6,574 0.2

IAC/Interactivecorp Holdingcompanyforonlineproperties Cyclical 6,561 0.2

ChewyInc Onlinepetsuppliesretailer Stalwart 6,213 0.2 96.7

UbisoftEntertainment Gamedevelopmentplatform Rapid 6,169 0.2

BrillianceChinaAutomotive

†

Manufactureandsaleofminibusesandautomotive

 components Cyclical 5,636 0.2

Chegg Onlineeducationalplatform Rapid 5,512 0.2

SilkInvestAfricaFoodFund

Africafocusedprivateequityfund Cyclical 4,958 0.2

SpaceExplorationTechnologies

Spacerocketsandsatellites Rapid 4,711 0.2

Teladoc Healthcareservicesprovider Rapid 4,589 0.2

Stripe

Paymentsplatform Rapid 4,469 0.2

Carvana Onlineplatformforbuyingusedcars Rapid 4,251 0.2

PelotonInteractive Interactivefitnessplatform Rapid 4,011 0.1

TencentMusicEntertainment Onlinemusicstreamingandsocialmedia Rapid 3,649 0.1 98.5

Vimeo All-in-onevideosoftwaresolution Rapid 3,310 0.1

Oatly Oat-basedalternativestodairyproducts Rapid 3,020 0.1

KEHoldings Chineserealestateportal Rapid 1,507 0.1

Naspers Mediaandecommercecompany Rapid 1,094 0.0

SberbankofRussia

†

Russiancommercialbank Cyclical – 0.0

VKCompanyLimited

†

Russianinternetandcommunicationservices Rapid – 0.0

Total Investments

2,662,015 98.8 98.8

Net Liquid Assets

31,975 1.2

Total Assets

2,693,990 100.0 100.0

Denotesunlisted(privatecompany)investment.

†

Suspendedinvestment.

ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

The Monks Investment Trust PLC 15

30 April

2022

30 April

2021 % change

Totalassets(beforedeductionofborrowings) £2,694.0m £3,344.8m

Borrowings(atbookvalue) £214.8m £139.8m

Shareholders’funds £2,479.2m £3,205.0m

Shareholders’fundspershare(borrowingsatbookvalue) 1,089.1p 1,355.4p (19.6)

Netassetvalueperordinaryshare(borrowingsatpar)

†

1,089.0p 1,355.3p (19.6)

Netassetvalueperordinaryshare(borrowingsatfairvalue)

†

1,099.8p 1,358.1p (19.0)

Shareprice 1,051.0p 1,396.0p (24.7)

FTSEWorldIndex(insterlingterms)

4.1

Revenueearningsperordinaryshare 3.67p 3.42p 7.3

Dividendspaidandpayableinrespectofthefinancialyear 2.35p 2.00p 17.5

Ongoingcharges

†

0.40% 0.43%

(Discount)/premium(overNAVwithborrowingsatpar)

†

(3.5%) 3.0%

(Discount)/premium(overNAVwithborrowingsatfairvalue)

†

(4.4%) 2.8%

Activeshare

†

87% 86%

Year to 30 April 2022 2021

Total return performance%

‡

Netassetvalue(borrowingsatpar)

†

(19.5) 54.7

Netassetvalue(borrowingsatfairvalue)

†

(18.9) 55.5

Shareprice

†

(24.6) 53.1

FTSEWorldIndex(insterlingterms)

6.1 33.9

Year to 30 April 2022 2022 2021 2021

Year’s high and low High Low High Low

Netassetvalue(borrowingsatpar)

†

1,500.5p 1,050.2p 1,426.6p 861.1p

Netassetvalue(borrowingsatfairvalue)

†

1,500.7p 1,058.6p 1,424.6p 858.4p

Shareprice 1,472.0p 980.0p 1,484.0p 890.0p

Duringtheyearto30April2022thepriceatwhichtheCompany’ssharepricetradedrelativetoitsnetassetvalue(withborrowingsatfairvalue

†

)ranged

fromapremium

†

of4.0%toadiscount

†

of9.8%(yearto30April2021–premium

†

of7.0%toadiscount

†

of1.8%).Thepremium/(discount)graphson

page1andthefollowingpagedonotreflecttheseextremes,beingplottedonamonthlybasis.

Year to 30 April 2022 2021

Net return per ordinary share

Revenue 3.67p 3.42p

Capital (268.58p) 469.83p

Total (264.91p) 473.25p

* ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

†

Alternativeperformancemeasure–seeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

TheFTSEWorldIndex(insterlingterms)istheprincipalindexagainstwhichperformanceismeasured.

‡

Source:BaillieGifford/Refinitivandrelevantunderlyingindexproviders.Seedisclaimeronpage73.

Pastperformanceisnotaguidetofutureperformance.

One Year Summary

Strategic Report

16AnnualReport2022

ThefollowingchartsindicatehowaninvestmentinMonkshasperformedrelativeto

itscomparativeindex

anditsunderlyingnetassetvalueoverthefiveyearperiodto

30April2022.

Premium/(discount)

to Net Asset Value

†

(plottedonamonthlybasis)

5 Year Total Return Performance

†

(figuresrebasedto100at30April2017)

Relative Annual Net Asset Value and Share Price Total

Returns

†

(relative to the FTSE World Index

total return)

Source: Refinitiv/Baillie Gifford

and relevant underlying index providers

Dividends are reinvested.

NAV total return

†‡

Share price total return

†

2018

Years to 30 April

2019 2020

2021

2022

40%

20%

(40%)

(20%)

2017

Cumulative to 30 April

2019 2020

2021

2022

2018

Sour

ce: Refinitiv

and relevant underlying index providers

NAV total return

†‡

Share price total return

†

FTSE World Index

total return

130

250

100

160

190

220

Source: Refinitiv/Baillie Gifford.

Monks premium/(discount) (after deducting borrowings at fair value)

†

Monks premium/(discount) (after deducting borrowings at par)

†

2017

Years to 30 April

2019 2020

2021

2022

2018

(10%)

10%

(5%)

Five Year Summary

Strategic Report

Annual Net Asset Value and Share Price

Total Returns

†

Source: Refinitiv/Baillie Gifford.

Dividends are reinvested.

NAV total return

†‡

Share price total return

†

2018

Years to 30 April

2019 2020

2021

2022

60%

30%

(30%)

The Monks Investment Trust PLC 17

Ten Year Summary

Revenue Gearing Ratios

Year to

30 April

Gross

revenue

£’000

Available

for ordinary

shareholders

£’000

Revenue

earnings per

ordinary

‡

Dividend paid

and proposed

per share

net

Ongoing *

charges

Gearing

Potential

gearing

#§

2012 31,424 13,889 5.35 3.95 0.63 (7) 16

2013 22,983 11,778 4.68 3.95 0.60 1 8

2014 21,585 11,181 4.87 3.95 0.57 (1) 4

2015 20,215 10,549 4.74 3.95 0.58 7 12

2016 15,149 4,954 2.31 1.50 0.59 7 8

2017 17,593 5,043 2.36 1.25 0.59 7 8

2018 19,759 5,588 2.61 1.40 0.52 5 6

2019 23,268 7,186 3.30 1.85 0.50 6 7

2020 26,691 9,319 4.24 2.50 0.48 6 7

2021 22,529 7,801 3.42 2.00 0.43 1 4

2022 27,811 8,644 3.67 2.35 0.40 7 9

Cumulative Performance (taking 2012 as 100)

30 April

NAV

per share

(fair) *

NAV

total return

(fair) *

price

Share price

total *

return

Comparative

Index

Comparative

Index

total

return

Revenue

earnings

per

Dividend

paid and

proposed

per share

(net)

Retail

price

index

2012 100 100 100 100 100 100 100 100 100

2013 107 108 105 106 118 121 87 100 103

2014 111 113 109 112 123 130 91 100 105

2015 124 128 129 133 142 153 89 100 106

2016 123 127 126 131 139 154 43 38 108

2017 172 178 193 202 177 202 44 32 112

2018 198 206 232 243 186 217 49 35 115

2019 222 231 261 274 202 242 62 47 119

2020 229 239 270 284 196 239 79 63 121

2021 355 371 412 435 257 321 64 51 124

2022 287 301 310 328 267 340 69 59 138

Compound annual returns

5year 10.9% 11.1% 10.0% 10.2% 8.5% 11.0% 9.2% 13.5% 4.3%

10year 11.1% 11.7% 12.0% 12.6% 10.3% 13.0% (3.7%) (5.1%) 3.3%

ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76

†

Shareholders’fundspersharehasbeencalculatedafterdeductingborrowingsatbookvalue(seenote15onpage57).Netassetvalue(NAV)persharehasbeencalculated

afterdeductingborrowingsateitherparvalueorfairvalue.SeeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76.

AlternativePerformanceMeasure.SeeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76

‡

Thecalculationofrevenueearningspershareisbasedontherevenuefromordinaryactivitiesaftertaxationandtheweightedaveragenumberofordinarysharesinissue(see

note7onpage53).

Calculatedastotaloperatingcostsdividedbyaveragenetassetvalue(withdebtatfairvalue)inaccordancewithAICguidelines.

Totalborrowingsexpressedasapercentageofshareholders’funds(seeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76).

Source:Refinitivandrelevantunderlyingindexproviders.Seedisclaimeronpage73.

Capital

30 April

Total

assets *

£’000

Borrowings

£’000

Shareholders’

funds *

£’000

Shareholders’

funds

per share

†

NAV

per share

†

(par)

NAV

per share

†

(fair)

price

Premium/ *

(discount)

(par)

Premium/ *

(discount)

(fair)

2012 1,149,366 159,647 989,719 386.4 386.3 382.8 338.5 (12.4) (11.6)

2013 1,065,906 79,679 986,227 410.4 410.2 408.1 355.0 (13.5) (13.0)

2014 1,012,608 39,712 972,896 426.9 426.8 425.2 370.0 (13.3) (13.0)

2015 1,147,620 124,029 1,023,591 478.4 478.3 476.0 435.1 (9.0) (8.6)

2016 1,096,804 85,855 1,010,949 472.5 472.4 470.1 425.3 (10.0) (9.5)

2017 1,521,130 107,056 1,414,074 660.9 660.8 656.8 653.0 (1.2) (0.6)

2018 1,759,541 103,007 1,656,534 762.9 762.8 759.0 785.0 2.9 3.4

2019 2,001,977 139,162 1,862,815 852.2 852.1 848.9 883.0 3.6 4.0

2020 2,107,386 143,762 1,963,624 878.4 878.3 875.6 914.0 4.1 4.4

2021 3,344,768 139,788 3,204,980 1,355.4 1,355.3 1,358.1 1,396.0 3.0 2.8

2022 2,693,990 214,826 2,479,164 1,089.0 1,089.0 1,099.8 1,051.0 (3.5) (4.4)

Strategic Report

Pastperformanceisnotaguidetofutureperformance.

18AnnualReport2022

Business Model

Business and Status

TheMonksInvestmentTrustPLC(‘theCompany’)isapublic

companylimitedbysharesandisincorporatedinEnglandand

Waleswithitsregisteredofficeaddressc/oComputershare

InvestorServicesPLC,MoorHouse,120LondonWall,London

EC2Y5ET.TheCompanyisaninvestmentcompanywithinthe

meaningofsection833oftheCompaniesAct2006andcarries

onbusinessasaninvestmenttrust.InvestmenttrustsareUK

publiclistedcompaniesandtheirsharesaretradedonthe

LondonStockExchange.Theyinvestinaportfolioofassets

inordertospreadrisk.TheCompanyhasafixedsharecapital

although,subjecttoshareholderapprovalsoughtannually,itmay

purchaseitsownsharesorissueshares.Thepriceofthe

Company’ssharesisdetermined,likeotherlistedshares,by

supplyanddemand.

TheCompanyhasbeenapprovedasaninvestmenttrustby

HMRevenue&CustomssubjecttotheCompanycontinuingto

meettheeligibilityconditions.TheDirectorsareoftheopinionthat

theCompanyhascontinuedtoconductitsaffairssoastoenable

ittocomplywiththeongoingrequirementsofsection1158ofthe

CorporationTaxAct2010andtheInvestmentTrust(Approved

Company)(Tax)Regulations2011.

TheCompanyisanAlternativeInvestmentFund(AIF)forthe

purposesoftheUKAlternativeInvestmentFundManagers

Regulations.

Purpose

TheMonksInvestmentTrustaimstodeliveraboveaverage

long-termreturnsforshareholdersbykeepingfeesandcostslow

andharnessingthelong-termgrowthpotentialofcompanies.

Objective and Policy

TheCompany’sobjectiveistoinvestgloballytoachievecapital

growth.Thistakespriorityoverincomeanddividends.

Monksseekstomeetitsobjectivebyinvestingprincipallyina

portfolioofglobalquotedequities.Equitiesareselectedfortheir

inclusionwithintheportfoliosolelyonthebasisofthestrengthof

theinvestmentcase.

Therearenolimitstogeographicalorsectorexposures,butthese

arereportedto,andmonitoredby,theBoardinordertoensure

thatadequatediversificationisachieved.Thenumberofholdings

inequitiestypicallyrangesfrom70to200.Atthefinancialyear

end,theportfoliocontained116equityholdings.Aportfolio

reviewbytheinvestmentmanagersisgivenonpages5to8and

theinvestmentsheldattheyearendarelistedonpages12to14.

Investmentmayalsobemadeinfunds(openandclosed-ended)

includingthosemanagedbyBaillieGifford&Co.Themaximum

permittedinvestmentinUKlistedinvestmentcompaniesin

aggregateis15%ofgrossassets.Assetclassesotherthan

quotedequitiesmaybepurchasedfromtimetotimeincluding

fixedinterestholdings,unquotedsecuritiesandderivatives.

TheCompanymayusederivativesforthepurposeofefficient

portfoliomanagement(includingreducing,transferringor

eliminatinginvestmentriskinitsinvestmentsandprotection

againstcurrencyrisk)andtoachievecapitalgrowth.

Whilethereisacomparativeindexforthepurposeofmeasuring

performance,noattentionispaidtothecompositionofthisindex

whenconstructingtheportfolio;theportfoliomay,therefore,differ

substantiallyfromthatoftheindex.Along-termviewistakenand

theremaybeperiodswhenthenetassetvaluepersharedeclines

bothinabsolutetermsandrelativetothecomparativeindex.

Paymentofdividendsissecondarytoachievingcapitalgrowth.

Thesharesarenotconsideredtobeasuitableinvestmentfor

thoseseekingaregularorrisingincome.

Borrowingsareinvestedinequitiesandotherassetclasseswhen

thisisconsideredtobeappropriateoninvestmentgrounds.

Gearinglevels,andtheextentofequitygearing,arediscussedby

theBoardandinvestmentmanagersateveryBoardmeetingand

adjustedaccordinglywithregardtotheoutlook.Newborrowings

willnotbetakenoutifthistakesthelevelofeffectiveequity

gearingtoover30%ofshareholders’funds.Equityexposuremay,

onoccasions,bebelow100%ofshareholders’funds.

Culture and Values

Inthecontextofacompanywithnoemployees,cultureand

valuesareexpressedbytheCompany’sDirectorsandtheservice

providerswithwhomshareholdersandotherstakeholders

interact,andthroughtherelationshipsbetweentheBoardand

thoseserviceproviders,includingtheManagers.Asnotedin

moredetailinthesection172statementonpages21and22

theBoardseekstoengagewithitsManagersandotherservice

providersinacollaborativeandcollegiatemanner,andtomaintain

thehigheststandardsofbusinessconduct.

Performance

AteachBoardmeeting,theDirectorsconsideranumberof

performancemeasurestoassesstheCompany’ssuccessin

achievingitsobjectives.

Key Performance Indicators

TheBoardusesperformanceindicators(KPIs)tomeasurethe

progressandperformanceoftheCompanyovertimewhen

dischargingitsdutiesassetoutonpage28andevaluatingthe

Managersasnotedonpage24.TheseKPIsareestablished

industrymeasuresandareasfollows:

— themovementinnetassetvalueperordinaryshareon

atotalreturnbasis;

— themovementinthesharepriceonatotalreturnbasis;

— thepremium/discount;and

— ongoingcharges.

AnexplanationofthesemeasurescanbefoundintheGlossary

ofTermsandAlternativePerformanceMeasuresonpages74to

76.Theone,fiveandtenyearrecordsoftheKPIsareshownon

pages15to17.

Inadditiontotheabove,theBoardalsohasregardtothetotal

returnoftheCompany’sprincipalcomparativeindex(FTSEWorld

Indexinsterlingterms)andconsiderstheperformanceof

comparablecompanies.

Strategic Report

Business Review

The Monks Investment Trust PLC 19

Borrowings

TheCompany’sborrowingsat30April2022comprised:

£40million6

8%debenturestockrepayableinMarch2023

(30April2021–£40million);£60million1.86%SeriesANotes

repayablein2054(30April2021–£60million);£40million1.77%

SeriesBNotesrepayablein2045(30April2021–£40million);

and£75millionunderthe£150millionfloatingratefacilitywith

NationalAustraliaBank(30April2021–nil).Furtherdetailsofthe

Company’sborrowingsaresetoutinnotes11and12onpages

55and56anddetailsoftheCompany’sgearinglevelsare

includedintheChairman’sStatementonpage2andtheTenYear

Summaryonpage17.

Principal and Emerging Risks

Ase

xplainedonpage30thereisanongoingprocessforidentifying

,

evaluatingandmanagingtherisksfacedbytheCompanyona

regularbasis.TheDirectorshavecarriedoutarobustassessment

oftheprincipalandemergingrisksfacingtheCompany,including

thosethatwouldthreatenitsbusinessmodel,futureperformance,

solvencyorliquidity.Adescriptionoftheserisksandhowtheyare

beingmanagedormitigatedissetoutbelow.

TheBoardconsiderstheongoingCovid-19pandemic,geopolitical

tensionsarisingfromtheRussianinvasionofUkraine,andthe

impactofBrexittobefactorswhichexacerbateexistingrisks,

ratherthandiscreterisks,withinthecontextofaninvestmenttrust.

Theirimpactisconsideredwithintherelevantrisks.

Financial Risk–theCompany’sassetsconsistmainlyoflisted

securitiesanditsprincipalandemergingfinancialrisksare

thereforemarketrelatedandincludemarketrisk(comprising

currencyrisk,interestrateriskandotherpricerisk),liquidityrisk

andcreditrisk.Anexplanationofthoserisksandhowtheyare

managediscontainedinnote19totheFinancialStatementson

pages58to63.TheBoardhas,inparticular,consideredthe

impactofheightenedmarketvolatilityduringtheCovid-19

pandemicandoverrecentmonthsowingtomacroeconomicand

geopoliticalconcerns,includingtheRussia-Ukraineconflict.To

mitigatetheserisks,thecompositionanddiversificationofthe

portfoliobygeography,industry,growthcategory,holdingsize

andthematicriskcategoryareconsideredateachBoardmeeting

alongwithsalesandpurchasesofinvestments.Individual

investmentsarediscussedwiththeinvestmentmanagers

togetherwiththeirgeneralviewsonthevariousinvestment

marketsandsectors.

Astrategymeetingisheldannually.

Investment Strategy Risk–pursuinganinvestmentstrategyto

fulfiltheCompany’sobjectivewhichthemarketperceivestobe

unattractiveorinappropriate,ortheineffectiveimplementationof

anattractiveorappropriatestrategy,mayleadtoreducedreturns

forshareholdersand,asaresult,adecreaseddemandforthe

Company’sshares.ThismayleadtotheCompany’ssharestrading

atawideningdiscounttotheirNetAssetValue.Tomitigatethis

risk,theBoardregularlyreviewsandmonitors:theCompany’s

objectiveandinvestmentpolicyandstrategy;theinvestment

portfolioanditsperformance;thelevelofdiscount/premiumto

NetAssetValueatwhichthesharestrade;andmovementsin

theshareregister,andraisesanymattersofconcernwiththe

Managers.

Strategic Report

Climate and Governance Risk–asinvestorsplaceincreased

emphasisonEnvironmental,SocialandGovernance(ESG)issues,

perceivedproblemsonESGmattersinaninvesteecompany

couldleadtothatcompany’ssharesbeinglessattractiveto

investors,adverselyaffectingitsshareprice,inadditionto

potentialvaluationissuesarisingfromanydirectimpactofthe

failuretoaddresstheESGweaknessontheoperationsor

managementoftheinvesteecompany(forexampleintheevent

ofanindustrialaccidentorspillage).Repeatedfailurebythe

InvestmentManagertoidentifyESGweaknessesininvestee

companiescouldleadtotheCompany’sownsharesbeingless

attractivetoinvestors,adverselyaffectingitsownshareprice.

ThisismitigatedbytheManager’sstrongESGstewardshipand

engagementpolicies,whichhavebeenendorsedbythe

Company,andwhicharefullyintegratedintotheinvestment

process,aswellastheextensiveup-frontandongoingdue

diligencewhichtheInvestmentManagerundertakesoneach

investeecompany.Thisduediligenceincludesassessmentof

therisksinherentinclimatechange(seepage32).

Regulatory Risk–failuretocomplywithapplicablelegaland

regulatoryrequirementssuchasthetaxrulesforinvestment

trustcompanies,theFCAListingrulesandtheCompaniesAct

couldleadtotheCompanybeingsubjecttotaxoncapitalgains,

suspensionoftheCompany’sStockExchangelisting,financial

penaltiesoraqualifiedauditreport.Tomitigatethisrisk,

BaillieGifford’sBusinessRisk,InternalAuditandCompliance

DepartmentsprovideregularreportstotheAuditCommittee

onBaillieGifford’smonitoringprogrammes.Majorregulatory

changecouldimposedisproportionatecomplianceburdenson

theCompany.Insuchcircumstancesrepresentationismadeto

ensurethatthespecialcircumstancesofinvestmenttrustsare

recognised.Shareholderdocumentsandannouncements,

includingtheCompany’spublishedInterimandAnnualReport

andFinancialStatements,aresubjecttostringentreview

processesandproceduresareinplacetoensureadherenceto

theTransparencyDirectiveandtheMarketAbuseDirectivewith

referencetoinsideinformation.

Custody and Depositary Risk–safecustodyoftheCompany’s

assetsmaybecompromisedthroughcontrolfailuresbythe

Depositary,includingbreachesofcybersecurity.Tomitigatethis

risk,theBoardreceivessix-monthlyreportsfromtheDepositary

confirmingsafecustodyoftheCompany’sassetsheldbythe

Custodian.Cashandportfolioholdingsareindependentlyreconciled

totheCustodian’srecordsbytheManagers.TheCustodian’s

assuredinternalcontrolsreportsarereviewedbyBaillieGifford’s

BusinessRiskDepartmentandasummaryofthekeypointsis

reportedtotheAuditCommitteeandanyconcernsinvestigated.

Operational Risk–failureofBaillieGifford’ssystemsorthoseof

otherthirdpartyserviceproviderscouldleadtoaninabilityto

provideaccuratereportingandmonitoringoramisappropriation

ofassets.Tomitigatethisrisk,BaillieGiffordhasacomprehensive

businesscontinuityplanwhichfacilitatescontinuedoperationof

thebusinessintheeventofaservicedisruption(includingany

disruptionresultingfromtheCovid-19pandemic)ormajordisaster.

BaillieGiffordstaffcontinuedtoworkfromhometomaintaina

business-as-usualservicethroughouttheCovid-19pandemic.

20AnnualReport2022

FollowingtheremovalofCovid-19restrictionsbytheScottish

andUKgovernments,ahybridmodelisnowoperating,withstaff

determiningthemostappropriatesplitbetweenworkingfrom

homeandworkingintheoffice,whichensuresongoingresilience.

TheBoardreviewsBaillieGifford’sReportonInternalControlsand

thereportsbyotherthirdpartyprovidersarereviewedbyBaillie

GiffordonbehalfoftheBoard.Theotherkeythirdpartyservice

providershavenotexperiencedsignificantoperationaldifficulties

affectingtheirrespectiveservicestotheCompany.

Discount Risk –thediscount/premiumatwhichthe

Company’ssharestraderelativetoitsNetAssetValuecan

change.Theriskofawideningdiscountisthatitmayundermine

investorconfidenceintheCompany.Tomanagethisrisk,the

Boardmonitorsthelevelofdiscount/premiumatwhichtheshares

tradeandtheCompanyhasauthoritytobuybackitsexisting

shareswhendeemedbytheBoardtobeinthebestinterests

oftheCompanyanditsshareholders.

Political and Associated Economic Risk –politicalchange

inareasinwhichtheCompanyinvestsormayinvestmay

increasinglyhavepracticalconsequencesfortheCompany.

Tomitigatethisrisk,developmentsarecloselymonitoredand

consideredbytheBoard.TheBoardhasparticularregardto

repercussionsfromtheRussianinvasionofUkraine,andongoing

tensionsbetweentheUSandChina,andmonitorsportfolio

diversificationbyrevenuestreamaswellasbyinvestee

companies’primarylocation,tomitigateagainstthenegative

impactofmilitaryactionortradebarriers.

Leverage Risk–theCompanymayborrowmoneyforinvestment

purposes(sometimesknownas‘gearing’or‘leverage’).Ifthe

investmentsfallinvalue,anyborrowingswillmagnifytheextent

ofthisloss.Ifborrowingfacilitiesarenotrenewed,theCompany

mayhavetosellinvestmentstorepayborrowings.TheCompany

canalsomakeuseofderivativecontracts.Tomitigatethisriskall

borrowingsrequirethepriorapprovaloftheBoardandleverage

levelsarediscussedbytheBoardand

investmentmanagers

at

everymeeting.Covenantlevelsaremonitoredregularly.The

majorityoftheCompany’sinvestmentsareinquotedsecurities

thatarereadilyrealisable.Furtherinformationonleveragecanbe

foundonpage71

andintheGlossaryofTermsandAlternative

Performancemeasuresonpages74to76

Emerging Risks–asexplainedonpage30theBoardhas

regular

discussionsonprincipalrisksanduncertainties,including

anyriskswhicharenotanimmediatethreatbutcouldarisein

thelongerterm.TheBoardconsidersthatthekeyemerging

risksarisefromtheinterconnectednessofglobaleconomies

and

therelatedexposureoftheinvestmentportfoliotoemerging

threatssuchasthesocietalandfinancialimplicationsofthe

escalationoftheRussia-Ukrainemilitaryconflict,cyberrisk,

and

newcoronavirusvariantsorsimilarpublichealththreats.

ThesearemitigatedbytheInvestmentManager’scloselinks

theinvesteecompaniesandtheirabilitytoaskquestionson

contingencyplans.TheInvestmentManagerbelievestheimpact

ofsucheventsmaybetoslowthepaceofgrowthratherthanto

invalidatetheinvestmentrationaleoverthelongterm.

Strategic Report

Viability Statement

Havingregardtoprovision31oftheUKCorporateGovernance

Code,theDirectorshaveassessedtheprospectsofthe

Companyoverathreeyearperiod.TheDirectorsbelieve,having

takenintoaccountanumberoffactorsincludingtheinvestment

managers’investmenthorizon,thisperiodtobeappropriateas,in

theabsenceofanyadversechangetotheregulatoryenvironment

andthefavourabletaxtreatmentaffordedtoUKinvestmenttrusts,

itisaperiodoverwhichtheydonotexpecttheretobeany

significantchangetothecurrentprincipalrisksandtotheadequacy

ofthemitigatingcontrolsinplace.TheDirectorsdonotenvisage

anychangeinstrategyorobjectivesoranyeventsthatwould

preventtheCompanyfromcontinuingtooperateoverthatperiod.

InmakingthisassessmenttheDirectorshavetakenintoaccount

theCompany’scurrentpositionandhaveconductedarobust

assessmentoftheCompany’sprincipalrisksanduncertainties,

includingclimatechange(asdetailedonpages19and20),in

particulartheimpactofmarketriskwhereasignificantfallin

global

equitymarketswouldadverselyimpactthevalueofthe

investmentportfolio.TheDirectorshavealsoconsideredthe

Company’s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vastmajorityofthe

Company’sinvestmentsarereadilyrealisableandcanbesoldto

meetitsliabilitiesastheyfalldue,themainliabilitiescurrentlybeing

thedebenturestockrepayablein2023,revolvingcreditfacility

expiringin2024,andloannotesrepayablein2045and2054.

The

Company’sprimarythirdpartysuppliers,includingits

ManagersandSecretaries,CustodianandDepositary,Registrar,

AuditorandBroker,arenotexperiencingsignificantoperational

difficultiesaffectingtheirrespectiveservicestotheCompany

duringthisperiodofhybridworkingasaresultoftheongoing

Covid-19pandemic.Inaddition,assubstantiallyalloftheessential

servicesrequiredbytheCompanyareoutsourcedtothirdparty

serviceproviders,thisallowskeyserviceproviderstobereplaced

atrelativelyshortnoticewherenecessary.Specificleverageand

liquiditystresstestingwasconductedduringtheyear,including

considerationoftheriskoffurthermarketdeteriorationresulting

fromtheCovid-19pandemicandincreasinggeopoliticalconcerns.

Thestresstestingdidnotindicateanymattersofconcern.

BasedupontheCompany’sprocessesformonitoringoperating

costs,sharepricepremium/discount,theManagers’compliance

withtheinvestmentobjective,theportfolioriskprofile,leverage,

counterpartyexposure,liquidityriskandfinancialcontrols,the

BoardbelievesthattheprospectsoftheCompanyaresoundand

theDirectorsareabletoconfirmthattheyhaveareasonable

expectationthatitwillcontinueinoperationandmeetitsliabilities

astheyfalldueoveraperiodofthreeyears.

The Monks Investment Trust PLC 21

Promoting the Success of the Company

(Section 172 Statement)

Undersection172oftheCompaniesAct2006,thedirectorsofa

companymustactinthewaytheyconsider,ingoodfaith,would

bemostlikelytopromotethesuccessofthecompanyforthe

benefitofitsmembersasawhole,andindoingsohaveregard

(amongstothermattersandtotheextentapplicable)to:a)the

likelyconsequencesofanydecisioninthelongterm,b)the

interestsofthecompany’semployees,c)theneedtofosterthe

company’sbusinessrelationshipswithsuppliers,customersand

others,d)theimpactofthecompany’soperationsonthe

communityandtheenvironment,e)thedesirabilityofthe

companymaintainingareputationforhighstandardsofbusiness

conduct,andf)theneedtoactfairlyasbetweenmembersofthe

company.

Inthiscontext,havingregardtoMonksbeinganexternally-

managedinvestmentcompanywithnoemployees,theBoard

considerstheCompany’skeystakeholderstobe:itsexistingand

potentialnewshareholdersanddebenturestockholders;its

externally-appointedmanagers(BaillieGifford);otherprofessional

serviceproviders(corporatebroker,registraranddepositary);

lenders;widersocietyandtheenvironment.

TheBoardconsidersthattheinterestsoftheCompany’skey

stakeholdersarealigned,intermsofwishingtoseetheCompany

deliversustainablelong-termgrowth,inlinewiththeCompany’s

statedobjectiveandstrategy,andmeetthehigheststandardsof

legal,regulatory,andcommercialconduct,withthedifferences

betweenstakeholdersbeingmerelyamatterofemphasison

thoseelements.TheBoard’smethodsforassessingthe

Company’sprogressinthecontextofitsstakeholders’interests

aresetoutbelow.

TheBoardplacesgreatimportanceoncommunicationwith

shareholders.TheAnnualGeneralMeetingprovidesthekeyforum

fortheBoardandManagerstopresenttoshareholdersonthe

Company’sperformance,futureplansandprospects.Under

normalcircumstancesitalsoallowsshareholderstheopportunity

tomeetwiththeBoardandManagersandraisequestionsand

concerns.Whilethe2021AnnualGeneralMeetingwasclosed,

inresponsetorapidlyrisinginfectionratesassociatedwiththe

Covid-19Omicronvariant,shareholderquestionswereinvited

andrespondedtobyemail,andaManagers’presentationwas

publishedontheCompany’spageoftheManagers’website,

inordertomaintainshareholdercommunicationdespitethe

restrictionsonphysicalgatherings.TheChairmanisavailableto

meetwithshareholdersasappropriate.TheManagersmeet

regularlywithshareholdersandtheirrepresentatives,reporting

theirviewsbacktotheBoard.Directorsalsoattendcertain

shareholderpresentations,inordertogaugeshareholder

sentimentfirsthand.Shareholdersmayalsocommunicatewith

membersoftheBoardatanytimebywritingtothematthe

Company’sregisteredofficeortotheCompany’sbroker.These

communicationopportunitieshelpinformtheBoardwhen

consideringhowbesttopromotethesuccessoftheCompany

forthebenefitofallshareholdersoverthelongterm.

TheBoardseekstoengagewithitsManagersandotherservice

providersinacollaborativeandcollegiatemanner,encouraging

openandconstructivediscussionanddebate,whilstalso

ensuringthatappropriateandregularchallengeisbroughtand

evaluationconducted.Thisapproachaimstoenhanceservice

levelsandstrengthenrelationshipswiththeCompany’sproviders,

withaviewtoensuringtheinterestsoftheCompany’s

shareholdersandstockholdersarebestservedbykeepingcost

levelsproportionateandcompetitive,andbymaintainingthe

higheststandardsofbusinessconduct.

WhilsttheCompany’soperationsarelimited,asthirdpartyservice

providersconductallsubstantiveoperations,theBoardisaware

theneedtoconsidertheimpactoftheCompany’sinvestment

strategyandpolicyonwidersocietyandtheenvironment.The

Boardconsidersthatitsoversightofenvironmental,socialand

governance(‘ESG’)matters,includingtheimpactofclimate

change,isanimportantpartofitsresponsibilitytoallstakeholders

andthatproperconsiderationofESGfactorssitsnaturallywith

Monks’longstandingaimofprovidingasustainablebasisfor

addingvalueforshareholders.TheBoard’sreviewoftheManagers

includesanassessmentoftheirESGapproachanditsapplication

inmakinginvestmentdecisions.TheBoardsupportsthe

Managers’Long-termPerspectiveassetoutintheirCore

InvestmentBeliefsonpage4andregularlyreviewsGovernance

Engagementreports,whichdocumenttheManagers’interactions

withinvesteecompaniesonESGmatters.TheCompany’sAnnual

StewardshipReportispublishedontheManagers’websiteat

monksinvestmenttrust.co.uk.

TheBoardrecognisestheimportanceofkeepingtheinterestsof

theCompany’sshareholders,andofactingfairlybetweenthem,

firmlyfrontofmindinitskeydecisionmaking.TheCompany

SecretariesareatalltimesavailabletotheBoardtoensurethat

suitableconsiderationisgiventotherangeoffactorstowhichthe

Directorsshouldhaveregard.Inadditiontoensuringthatthe

Company’sstatedinvestmentobjectivewasbeingpursued,key

decisionsandactionsduringtheyearwhichrequiredtheDirectors

tohaveregardtoapplicablesection172factorsincluded:

— thedecisiontocommencearecruitmentprocessforanew

Director,seekingtoidentifycandidatesthatmeetthe

NominationCommittee’sobjectiveofdevelopingadiverse

pipelineforBoardsuccession;

— therenewaloftheunsecuredfloatingraterevolvingfacility

withNationalAustraliaBankLimited,andincreasethereof

fromanavailablecommitmentof£100millionto£150million,

providingtheCompanywiththeabilitytosupplementits

long-termfixedborrowingswithshort-termflexible

borrowings,inordertorespondrapidlytomarketconditions;

— thebuyingbackofover£8.8millionoftheCompany’sown

sharesintotreasuryforsubsequentreissue,atadiscountto

netassetvalue,inordertoensuretheCompany’s

shareholdersfoundliquidityfortheirshareswhennatural

marketdemandwasinsufficient,andontermsthatenhance

NAV/shareforremainingshareholders;and

Strategic Report

22AnnualReport2022

— thedecisiontodeclareadividendof2.35p,buildingin

headroomtoallowforfurtherbuybacksinviewofcontinuing

marketvolatility,suchthatthetotaldividendpaidwill

neverthelessexceedtheminimumdistributionpermissible

underinvestmenttrustregulations,balancingthecareful

preservationofthetaxbenefitsofinvestmenttruststatuswith

theambitiontoretainfundsforreinvestment,consistentwith

Monks’growthfocusanditsshareholders’priorities.

Employees, Human Rights and Community Issues

TheBoardrecognisestherequirementtoprovideinformation

aboutemployees,humanrightsandcommunityissues.Asthe

Companyhasnoemployees,allitsDirectorsarenon-executive

andallitsfunctionsareoutsourced,therearenodisclosuresto

bemadeinrespectofemployees,humanrightsandcommunity

issues.

Gender Representation

TheBoardcurrentlycomprisesfiveDirectors,threemaleand

twofemaleandcomplieswiththeHamptonAlexandertargetof

33%femalemembershipandtheFTSEWomenLeaderstargetof

40%.GiventhesmallsizeoftheBoard,however,andambitions

forfurtherrecruitment,whiletheBoardwillaimtomeettarget

diversitycriteriaoverthelongterm,theremaybepointsatwhich

itdoesnot.TheCompanyhasnoemployees.TheBoard’spolicy

ondiversityissetoutonpage28.

Environmental, Social and Governance Policy

DetailsoftheCompany’spolicyonsociallyresponsibleinvestment

canbefoundunderCorporateGovernanceandStewardshipon

page31.

TheCompanyconsidersthatitdoesnotfallwithinthescopeof

theModernSlaveryAct2015anditisnot,therefore,obligedto

makeaslaveryandhumantraffickingstatement.Inanyevent,

theCompanyconsidersitssupplychainstobeoflowriskasits

suppliersaretypicallyprofessionaladvisers.Astatementbythe

ManagersundertheActhasbeenpublishedontheManagers’

websiteatbailliegifford.com.

Future Developments of the Company

TheoutlookfortheCompanyisdependenttoasignificantdegree

oneconomiceventsandthefinancialmarkets.Potentialthreats

arediscussedinthePrincipalRisksanalysisonpages19and20

andfactorswhichtheBoardconsidertoindicatetheCompany’s

positiveprospectsandfinancialhealtharediscussedinthe

ViabilityStatementonpage20.Furthercommentsontheoutlook

fortheCompanyanditsinvestmentportfolioaresetoutinthe

Chairman’sStatementonpages2and3andtheManagers’

Reportonpages5to8.

TheStrategicReportwhichincludespages2to22wasapproved

theBoardofDirectorsandsignedonitsbehalfon20June2022.

KSSternberg

Chairman

Strategic Report

The Monks Investment Trust PLC 23

Directors

KS Sternberg

KarlSternbergwasappointedaDirectorin2013andbecame

Chairmanin2020.HeworkedforMorganGrenfellAsset

Management(ownedbyDeutscheBank)from1992to2005

inavarietyofroles,ultimatelyasthechiefinvestmentofficerof

DeutscheAssetManagementLimited.Heleftthatroleto

establishOxfordInvestmentPartners,aninvestmentmanagement

companyforagroupofOxfordcolleges,wherehewaschief

executiveofficeruntil2013.HeisadirectorofJPMorganElect

Plc,HeraldInvestmentTrustplc,JupiterFundManagementplc

andClipstoneLogisticsREITplc.

CM Boyle

ClaireBoylewasappointedaDirectorin2020.Havingqualified

asacharteredaccountantwithCoopers&Lybrand,whereshe

specialisedinlitigationsupportandforensicaccounting,

MsBoylethenspentthirteenyearsworkinginequityinvestment

managementfor:RobertFlemingInvestmentManagement;

AmericanExpressAssetManagement;andlatterlyOxburgh

PartnersLLP,whereshewasapartnerwithresponsibilityfortheir

EuropeanEquityHedgeFund.Sheisanon-executivedirectorand

chairoftheauditcommitteeofAberdeenJapanInvestmentTrust

PLC,anon-executivedirectorandchairoftheauditcommitteeof

FidelitySpecialValuesPlc,andthenon-executivechairofLife

ScienceREITplc.

BJ Richards

BelindaRichardswasappointedaDirectorin2016.Sheisa

formerseniorpartneratDeloitteLLPwithathirtyyearcareer

specialisinginbusinessoperationsandstrategydevelopment

withaparticularfocusontheFinancialServicesandConsumer

Productssectors.Sheiscurrentlythechairoftheauditcommittee

ofSchroderJapanGrowthFundplcandAvastplcandanon-

executivedirectorofPhoenixGroupHoldings.Inaddition,sheis

atrusteeoftheYouthSportTrust.

Professor Sir Nigel Shadbolt

ProfessorSirNigelShadboltwasappointedaDirectorin2017.

HeisPrincipalofJesusCollege,Oxford,ProfessorialResearch

FellowintheDepartmentofComputerScience,Universityof

OxfordandavisitingProfessorofArtificialIntelligenceatthe

UniversityofSouthampton.Hespecialisesinopendataand

artificialintelligenceandiscurrentlyalsochairmanoftheOpen

DataInstitute.

Directors and Management

JJ Tigue

JeremyTiguewasappointedaDirectorin2014.Hebecame

ChairmanoftheAuditCommitteein2015andSeniorIndependent

Directorin2019.MrTiguewasthefundmanagerofForeign&

ColonialInvestmentTrustPLCfrom1997toJune2014.Heisa

directorofAberdeenStandardEquityIncomeTrustPLCandwasa

directorofTheMercantileInvestmentTrustplc.Hewasadirector

oftheAssociationofInvestmentCompaniesfrom2003to2013.

AlloftheDirectorsaremembersoftheManagementEngagement

CommitteeandtheRemunerationCommittee,andallare

membersoftheAuditCommitteewiththeexceptionof

MrKSSternberg.

Managers and Secretaries

TheCompanyhasappointedBaillieGifford&CoLimited,awholly

ownedsubsidiaryofBaillieGifford&Co,asitsAlternativeInvestment

FundManager(‘AIFM’)andCompanySecretary.BaillieGifford&

CoLimitedhasdelegatedportfoliomanagementservicestoBaillie

Gifford&Co.BaillieGifford&Coisaninvestmentmanagement

firmformedin1927outofthelegalfirmBaillie&Gifford,WS,

whichhadbeeninvolvedininvestmentmanagementsince1908.

BaillieGiffordisoneofthelargestinvestmenttrustmanagersin

theUKandcurrentlymanagesthirteenclosed-endedinvestment

companies.BaillieGiffordalsomanagesopenendedinvestment

companies,togetherwithinvestmentportfoliosonbehalfof

pensionfunds,charitiesandotherinstitutionalclients,bothinthe

UKandoverseas.Fundsunderthemanagementoradviceof

BaillieGiffordtotalaround£230billion.BasedinEdinburgh,itis

oneoftheleadingprivatelyownedinvestmentmanagementfirms

intheUK,with51partnersandastaffofaround1,700.

TheMonksinvestmentmanagersareSpencerAdairandMalcolm

MacColl.SpencerandMalcolmarebothpartnersatBaillieGifford

andhavebeenworkingtogethersince2005.Malcolmisoneof

BaillieGifford’stwojointseniorpartners.

BaillieGifford&CoandBaillieGifford&CoLimitedareboth

authorisedandregulatedbytheFinancialConductAuthority.

Governance Report

24AnnualReport2022

Directors’ Report

TheDirectorspresenttheirReporttogetherwiththeaudited

FinancialStatementsoftheCompanyfortheyearto30April2022.

Corporate Governance

TheCorporateGovernanceReportissetoutonpages28to32

andformspartofthisReport.

Managers and Company Secretaries

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Secretaries.

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InvestmentManagementAgreementsetsoutthematters

overwhichtheManagershaveauthorityinaccordancewiththe

policiesanddirectionsof,andsubjecttorestrictionsimposedby,

theBoard.TheInvestmentManagementAgreementisterminable

onnotlessthansixmonths’notice.Compensationfeeswould

onlybepayableinrespectofthenoticeperiodifterminationwere

tooccursooner.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(seenote

3onpage51formoredetails).

TheBoardconsiderstheCompany’sinvestmentmanagement

andsecretarialarrangementsonanongoingbasisandaformal

reviewisconductedbytheManagementEngagementCommittee

annually.TheCommitteeconsidered,amongstothers,the

followingtopicsinitsreview:thequalityofthepersonnelassigned

tohandletheCompany’saffairs;theinvestmentprocessand

theresultsachievedtodate;investmentperformance;the

administrativeservicesprovidedbytheSecretariesandthequality

ofinformationprovided;themarketingeffortsundertakenbythe

Managers;therelationshipwiththeManagers;and,comparative

peergroupchargesandfees.Followingthemostrecentreview,

theManagementEngagementCommitteeconcludedthatthe

continuingappointmentofBaillieGifford&CoLimitedasAIFM

andthedelegationofinvestmentmanagementservicesto

BaillieGifford&Coandthefurthersub-delegationofdealing

activityandtransactionreportingtoBaillieGiffordOverseas

Limited,onthetermsagreed,isintheinterestsofshareholders

asawhole.ThiswassubsequentlyapprovedbytheBoard.

Depositary

TheBankofNewYorkMellon(International)Limitedhasbeen

appointedastheCompany’sDepositoryinaccordancewith

the

requirementsoftheUKAlternativeInvestmentFundManagers

(AIFM)Regulations.

TheCompany’sDepositaryalsoactsastheCompany’s

Custodian.TheDepositary’sresponsibilitiesincludecash

monitoring,safekeepingoftheCompany’sfinancialinstruments,

verifyingownershipandmaintainingarecordofotherassetsand

monitoringtheCompany’scompliancewithinvestmentlimits

andleveragerequirements.

Directors

InformationabouttheDirectorswhowereinofficeattheyear

endanduptothedatetheFinancialStatementsweresigned,

includingtheirrelevantexperience,canbefoundonpage23.

AllDirectorswillretireattheAnnualGeneralMeetingandall

offer

themselvesforre-election.Followingformalperformance

evaluation,conductedinternallybywayofquestionnaireand

interview,theChairmanconfirmsthattheBoardconsidersthat

the

Directors’performancecontinuestobeeffectiveandthatthey

remaincommittedtotheCompany.TheBoardtherefore

recommendstheirre-electiontoshareholders.

Directors’ Indemnity and Insurance

TheCompanyhasenteredintoqualifyingthirdpartydeedsof

indemnityinfavourofeachofitsDirectors.Thedeeds,which

wereinforceduringtheyearto30April2022anduptothedate

ofapprovalofthisreport,coveranyliabilitiesthatmayarisetoa

thirdparty,otherthantheCompany,fornegligence,defaultor

breachoftrustorduty.TheDirectorsarenotindemnifiedin

respectofliabilitiestotheCompany,anyregulatoryorcriminal

fines,anycostsincurredinconnectionwithcriminalproceedings

inwhichtheDirectorisconvictedorcivilproceedingsbrought

bytheCompanyinwhichjudgementisgivenagainsthim/her.

Inaddition,theindemnitydoesnotapplytoanyliabilitytothe

extentthatitisrecoveredfromanotherperson.TheCompany

alsomaintainsDirectors’andOfficers’liabilityinsurance.

Conflicts of Interest

EachDirectorsubmitsalistofpotentialconflictsofinteresttothe

Boardonanannualbasis.TheBoardconsidersthesecarefully,

takingintoaccountthecircumstancessurroundingthemand,

ifconsideredappropriate,theyareapprovedforaperiodofone

year.Havingconsideredthelistsofpotentialconflictstherewere

noactualdirectorindirectinterestsofaDirectorwhichconflicted

withtheinterestsoftheCompany.

Dividends

TheBoardrecommendsafinaldividendof2.35pperordinary

sharefortheyear.Ifapproved,therecommendedfinaldividend

ontheordinaryshareswillbepaidon9September2022to

shareholdersontheregisteratthecloseofbusinesson29July

2022.Theex-dividenddateis28July2022.TheCompany’s

RegistraroffersaDividendReinvestmentPlan(seepage71)and

thefinaldateforelectionsforthisdividendis18August2022.

Share Capital

Capital Structure

TheCompany’scapitalstructureconsistsof236,453,859ordinary

sharesof5peachasat30April2022,comprising227,645,309

sharesinissueand8,808,550sharesheldintreasury.Thereareno

restrictionsconcerningtheholdingortransferoftheCompany’s

ordinarysharesandtherearenospecialrightsattachedtoanyof

theshares.

Dividends

Theordinarysharescarryarighttoreceivedividends.Interim

dividendsaredeterminedbytheDirectors,whereastheproposed

finaldividendrequiresshareholderapproval.Sharesheldin

treasuryarenotentitledtodividends.

Governance Report

The Monks Investment Trust PLC 25

Capital Entitlement

Onawindingup,aftermeetingtheliabilitiesoftheCompany,the

surplusassetswillbepaidtoordinaryshareholdersinproportion

totheirshareholdings.

Voting

Eachordinaryshareholderpresentinpersonorbyproxyis

entitledtoonevoteonashowofhandsand,onapoll,toone

voteforeveryshareheld.

Informationonthedeadlinesforproxyappointmentscanbe

foundonpages66to68.

Major Interests in the Company’s Shares

TheCompanyhasnotreceivedanynotificationsofmajorinterests

inthevotingrightsoftheCompanyasat30April2022.There

havebeennonotificationsofmajorinterestsintheCompany’s

sharesintimatedupto16June2022.

Annual General Meeting

Issuance of Shares

AtthelastAnnualGeneralMeeting,theDirectorsweregranted

shareholders’approvalforageneralauthoritytoallotsharesand

alsoanauthoritytoissuesharesorsellsharesheldintreasuryon

anonpre-emptivebasis(withoutfirstofferingsuchsharesto

existingshareholderspro-ratatotheirexistingholdingsuptoa

maximumnominalamountof£1,182,269.25).Duringtheyearto

30April2022theCompanyissuednoshares.Between1May

and

16June2022,theCompanyissuednoshares.

BothauthoritiesexpireattheforthcomingAnnualGeneralMeeting

andtheDirectorsareseekingshareholders’approvaltorenew

themforafurtheryear,asdetailedbelow.

Resolution11intheNoticeofAnnualGeneralMeetingseeks

ageneralauthorityfortheDirectorstoallotsharesuptoan

aggregatenominalamountof£

1,124,037.90

.Thisamount

represents10%oftheCompany’stotalordinarysharecapitalin

issueat

June2022andmeetsinstitutionalguidelines.This

authoritywillcontinueuntiltheconclusionoftheAnnualGeneral

Meetingtobeheldin2023orontheexpiryof15monthsfrom

thepassingoftheresolutions,ifearlier.

Resolution12,whichisproposedasaspecialresolution,seeks

authorityfortheDirectorstoissuesharesorsellsharesheldin

treasuryonanonpre-emptivebasisforcashuptoanaggregate

nominalamountof£1,124,037.90(representing10%ofthe

issuedordinarysharecapitaloftheCompanyasat

June

2022).Thisauthoritywillonlybeusedtoissuesharesorsell

sharesfromtreasuryatapremiumtonetassetvalueonthebasis

ofdebtvaluedatparvalueandonlywhentheDirectorsbelieve

thatitwouldbeinthebestinterestsoftheCompanytodoso.

ThisauthoritywillcontinueuntiltheconclusionoftheAnnual

GeneralMeetingtobeheldin2023orontheexpiryof15months

fromthepassingoftheresolutions,ifearlier.

Purchase of Own Shares

AtthelastAnnualGeneralMeetingtheCompanywasgranted

authoritytopurchaseupto35,444,433ordinaryshares

(equivalenttoapproximately14.99%ofitsissuedsharecapital),

suchauthoritytoexpireattheAnnualGeneralMeetinginrespect

oftheyearended30April2022.Duringtheyearto30April2022

theCompanyboughtbackatotalof8,808,550shares,

representing3.7%oftheissuedsharecapitalat30April2021,

atadiscounttonetassetvalue,on42separateoccasionsatan

averagepriceof1,105.75pencepershareandatotalcostof

£97,887,000.Thesesharesareheldintreasuryforreissue.

Nosharesweresoldfromtreasuryduringtheyear,therefore

8,808,550shareswereheldintreasuryat30April2022.Inthe

period1May2022to16June2022,afurther2,837,722shares

wereboughtback.At16June202211,646,272shareswere

heldintreasury.Theprincipalreasonforsharebuy-backsisto

enhancenetassetvaluepershareforcontinuingshareholdersby

purchasingsharesatadiscounttotheprevailingnetassetvalue.

TheCompanymayholdbought-backshares‘intreasury’and

then:

(i) sellsuchshares(oranyofthem)forcash(oritsequivalent

undertheCompaniesAct2006);or

(ii) canceltheshares(oranyofthem).

Shareswillonlybesoldfromtreasuryatapremiumtonetasset

value.

TheDirectorsareseekingshareholders’approvalattheAnnual

GeneralMeetingtorenewtheauthoritytopurchaseupto14.99%

oftheCompany’sordinarysharesinissueatthedateofpassing

oftheresolution,suchauthoritytoexpireattheAnnualGeneral

MeetingoftheCompanytobeheldinrespectoftheyearended

30April2023.

InaccordancewiththeListingRules,themaximumprice

(excludingexpenses)thatmaybepaidontheexerciseofthe

authoritymustnotexceedthehigherof:

(i) 5percent.abovetheaverageclosingpriceontheLondon

StockExchangeofanordinaryshareoverthefivebusiness

daysimmediatelyprecedingthedateofpurchase;and

(ii) thehigherofthepriceofthelastindependenttradeandthe

highestcurrentindependentbidforashareontheLondon

StockExchange.

Theminimumprice(exclusiveofexpenses)thatmaybepaidis

5ppershare.Purchasesofshareswillbemadewithinguidelines

established,fromtimetotime,bytheBoard.TheCompanydoes

nothaveanywarrantsoroptionsinissue.Yourattentionisdrawn

toResolution13intheNoticeofAnnualGeneralMeetingon

page66.Thisauthority,ifconferred,willbeexercisedonlyifto

dosowouldresultinanincreaseinnetassetvalueperordinary

sharefortheremainingshareholdersandifitisinthebest

interestsofshareholdersgenerally.

Governance Report

26AnnualReport2022

Adoption of New Articles of Association

Resolution14,whichwillbeproposedasaspecialresolution,seeks

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primarilyrelatetochangesin

lawandregulationanddevelopmentsinmarketpracticesincethe

ExistingArticleswereadopted,andprincipallyinclude:

(i) provisionsenablingtheCompanytoholdwhollyvirtual

shareholdermeetingsusingelectronicmeans(aswellas

physicalshareholdermeetingsandhybridmeetings);

(ii) amendmentsinresponsetotherequirementsofthe

AlternativeInvestmentFundManagersDirective(2011/61/EU)

asincorporatedintoUKlawbytheEuropeanUnion

(Withdrawal)Act2018;

(iii) amendmentsinresponsetotheintroductionofinternational

taxregimes(notablyFATCAandtheCommonReporting

Standard)requiringtheexchangeofinformationwithtax

authorities;

(iv) increaseinthecaponDirectorsfeesto£400,000toallowfor

recruitmentandpotentialoverlapastheyallowpossiblyless

experiencedDirectorstimetobedinontheBoardbefore

othersstanddown;

(v) provisionswhichenabletheCompanytoholdshareholder

meetingsacrosstwo(ormore)physicallocationsintheevent

thatallshareholderscannotbeaccommodatedinasingle

physicallocationonthedayofameeting;

(vi)provisionswhichenabletheCompanytopostponea

shareholdermeetingwheretheBoardconsidersthatitwould

beimpracticalorundesirabletoholdthemeetingonthedate

whichwasoriginallynotifiedtoshareholders;

(vii)expandingthecircumstancesunderwhichthechairofa

shareholdermeetingmayadjournthemeetingwithoutthe

consentofthemeeting,includingwherethehealth,safetyor

wellbeingofthoseentitledtoattendwouldbeputatriskby

theirattendanceatthemeeting;

(viii)provisionswhichrequireallDirectorstoretireateachAGM

(and,iftheywish,toofferthemselvesforre-election)inline

withtherecommendedcorporategovernanceregimeinthe

UK,andprovisionsdealingwiththepotentialsituation

wherebynoDirectorsarere-electedatanAGM;

(ix)updatingtheprovisionsregardingthepaymentofdividendsto

includetheuseofanyapprovedfundstransfersystemandto

enabletheCompanytospecifywhichpaymentmethod(s)will

beusedbytheCompanyinrespectofanydividend;

(x) provisionswhichclarifythattheCompanymayestablisha

capitalreserveandthat,subjecttotheprovisionsofthe

CompaniesAct2006,capitalprofitsstandingtothecreditof

thecapitalreservemaybeusedtofinancethepaymentof

dividendsandsharebuybacks;

(xi)updatingtheprovisionsregardingtheserviceofnoticesand

otherinformationonshareholderstoreflectthevarious

methodspermittedunderUKcompanylaw;

(xii)removalofhistoricprovisionsrelatingtostocksandwarrants;

and

(xiii)simplifyingtheprocedureinrespectofuntracedshareholders

byremovingtherequirementfortheCompanytopublish

newspaperadvertisements.

Asummaryoftheprincipalamendmentsbeingintroducedin

theNewArticlesissetoutintheappendixtotheAGMNotice

(onpages68and69ofthisdocument).Otheramendments,

whichareofaminor,technicalorclarifyingnature,havenotbeen

summarisedintheappendix.

WhiletheNewArticles(ifadopted)wouldpermitshareholder

meetingstobeconductedusingelectronicmeans,theDirectors

havenopresentintentionofholdingavirtual-onlymeeting.These

provisionswillonlybeusedwheretheDirectorsconsideritisin

thebestofinterestsofshareholdersforhybridorvirtual-only

meetingstobeheld.NothingintheNewArticleswillpreventthe

Companyfromholdingphysicalshareholdermeetings.

ThefulltermsoftheproposedamendmentstotheCompany’s

ArticlesofAssociationareavailableattheofficesofDicksonMinto

W.S.,Level13,BroadgateTower,20PrimroseStreet,LondonEC2A

2EWbetweenthehoursof9.00amand5.00pm(Saturdays,

Sundaysandpublicholidaysexcepted)fromthedateoftheAGM

Notice,andacopyoftheNewArticles,togetherwithacopy

showingalloftheproposedchangestotheExistingArticles,

willbeavailableforinspectionontheCompany’swebsite,

monksinvestmenttrust.co.uk

fromthedateoftheAGMNotice

untilthecloseoftheAGM,andwillalsobeavailableforinspection

atthevenueoftheAGMfrom15minutesbeforeandduring

theAGM.

Articles of Association

TheCompany’sArticlesofAssociationmayonlybeamendedby

specialresolutionatageneralmeetingofshareholders.

Financial Instruments

TheCompany’sfinancialinstrumentscompriseitsinvestment

portfolio,cashbalances,borrowingsanddebtorsandcreditors

thatarisedirectlyfromitsoperationssuchassalesandpurchases

awaitingsettlementandaccruedincome.Thefinancialrisk

managementobjectivesandpoliciesarisingfromitsfinancial

instrumentsandtheexposureoftheCompanytoriskare

disclosedinnote

totheFinancialStatements.

Disclosure of Information to Auditor

TheDirectorsconfirmthatsofaraseachoftheDirectorsisaware

thereisnorelevantauditinformationofwhichtheCompany’s

AuditorisunawareandtheDirectorshavetakenallthestepsthat

theymightreasonablybeexpectedtohavetakenasDirectorsin

ordertomakethemselvesawareofanyrelevantauditinformation

andtoestablishthattheCompany’sAuditorisawareofthat

information.

Post Balance Sheet Events

Subsequenttothe30April2022yearend,thenetassetvalue

persharewithdebtatfairvaluefellby11.1%to977.8p(asat

16June2022)asmarketsreactedtomacroeconomicand

geopoliticalconcerns.

Governance Report

The Monks Investment Trust PLC 27

Independent Auditor

TheAuditor,Ernst&YoungLLP,iswillingtocontinueinoffice

and,inaccordancewithsection489andsection491(1)ofthe

CompaniesAct2006,resolutionsconcerningErnst&Young

LLP’sreappointmentandremunerationwillbesubmittedtothe

AnnualGeneralMeeting.

Greenhouse Gas Emissions and Streamlined

Energy & Carbon Reporting (‘SECR’)

AlloftheCompany’sactivitiesareoutsourcedtothirdparties.

TheCompanythereforehasnogreenhousegasemissionsto

reportfromitsoperations,nordoesithaveresponsibilityforany

otheremissionsproducingsourcesundertheCompaniesAct

2006(StrategicReportandDirectors’Reports)Regulations2013.

Forthesamereasonsassetoutabove,theCompanyconsiders

itselftobealowenergyuserundertheSECRregulationsand

therefore,isnotrequiredtodiscloseenergyandcarbon

information.

Bribery Act

TheCompanyhasazerotolerancepolicytowardsbriberyandis

committedtocarryingoutbusinessfairly,honestlyandopenly.

TheManagersalsoadoptazerotoleranceapproachandhave

policiesandproceduresinplacetopreventbribery.

Criminal Finances Act 2017

TheCompanyhasacommitmenttozerotolerancetowardsthe

criminalfacilitationoftaxevasion.

Recommendation

TheDirectorsunanimouslyrecommendyouvoteinfavourof

theresolutionstobeproposedattheAnnualGeneralMeeting

asitistheirviewthattheresolutionsareinthebestinterestsof

shareholdersasawhole.

OnbehalfoftheBoard

KSSternberg

Chairman

June2022

Governance Report

28AnnualReport2022

Corporate Governance Report

TheBoardiscommittedtoachievinganddemonstratinghigh

standardsofCorporateGovernance.Thisstatementoutlineshow

theprinciplesofthe2018UKCorporateGovernanceCode(the

‘Code’)whichcanbefoundatfrc.org.uk,andtherelevant

principlesoftheAssociationofInvestmentCompanies(AIC)

CodeofCorporateGovernancewereappliedthroughoutthe

financialyear.TheAICCodeprovidesaframeworkofbest

practiceforinvestmentcompaniesandcanbefoundat

theaic.co.uk.

Compliance

TheFRChasconfirmedthatAICmembercompanieswhoreport

againsttheAICCodewillbemeetingtheirobligationsinrelationto

theUKCode(theAICCodecanbefoundattheaic.co.uk).The

Companyhascompliedthroughouttheyearunderreviewwiththe

relevantprovisionsoftheCodeandtherecommendationsofthe

AICCode.TheCodeincludesprovisionsrelatingtotheroleofthe

chiefexecutive,executivedirectors’remunerationandtheneedfor

aninternalauditfunction.GiventhattheCompanyisanexternally-

managedinvestmenttrust,theBoardconsiderstheseprovisions

tobeinapplicabletotheCompany.Theneedforaninternalaudit

functionspecifictotheCompanyisaddressedonpage33.

The Board

TheBoardhasoverallresponsibilityfortheCompany’saffairs,

includingthedeterminationandembodimentofitscultureand

values.Ithasanumberofmattersreservedforitsapproval

includingstrategy,investmentpolicy,currencyhedging,

borrowings,gearing,treasurymatters,dividendandcorporate

governancepolicy.Aseparatestrategysessionisheldannually.

TheBoardalsoreviewstheFinancialStatements,investment

transactions,revenuebudgetsandperformance.Fullandtimely

informationisprovidedtotheBoardtoenableittofunction

effectivelyandtoallowDirectorstodischargetheirresponsibilities.

TheBoardcurrentlycomprises

five

Directorsallofwhomare

non-executive.

TheChairmanisresponsiblefororganisingthebusinessof

theBoard,ensuringitseffectivenessandsettingitsagenda.

Theexecutiveresponsibilityforinvestmentmanagementhas

beendelegatedtotheCompany’sAlternativeInvestmentFund

Manager(‘AIFM’),BaillieGifford&CoLimited,and,inthecontext

ofaBoardcomprisingonlynon-executiveDirectors,thereis

nochiefexecutiveofficer.

TheSeniorIndependentDirector(SID)isMrJJTigue,and,

assuch,heisavailabletoshareholdersasanalternativetothe

Chairmaniftheyhaveconcerns.TheSIDleadstheChairman’s

performanceappraisalandchairstheNominationCommittee

whenitconsiderstheChairman’ssuccession.

TheDirectorsbelievethattheBoardhasabalanceofskillsand

experiencethatenablesittoprovideeffectivestrategicleadership

andpropergovernanceoftheCompany.Informationaboutthe

Directors,includingtheirrelevantexperience,canbefoundon

page23.

ThereisanagreedprocedureforDirectorstoseekindependent

professionaladvice,ifnecessary,attheCompany’sexpense.

Diversity Policy

AppointmentstotheBoardaremadeonmeritwithdueregard

forthebenefitsofdiversity,includinggender,socialandethnic

backgrounds,cognitiveandpersonalstrengths.Thepriorityin

appointingnewDirectorsistoidentifythecandidatewiththebest

rangeofskillsandexperiencetocomplementexistingDirectors.

TheBoardthereforedoesnotconsideritappropriatetoset

diversitytargets.

Appointments to the Board

FollowingtheNominationCommittee’sannualreviewofthe

Board’scompositionandbearinginmindtheBoard’sambition

todevelopadiversepipelineforsuccession,theCommittee

determinedthatasearchshouldcommence,inordertoidentify

acandidatewiththerequisiteskillsandexperienceandwith

particularregardtotherecommendationsoftheParkerReview.

OdgersBerndtsonhavebeenappointedtosearchforanew

Director.

ThetermsandconditionsofDirectors’appointmentsaresetout

informallettersofappointmentwhichareavailableforinspection

onrequest.

ADirectorappointedduringtheyearisrequiredtoretireandseek

electionbyshareholdersatthenextAnnualGeneralMeeting.

InaccordancewiththeCode,allDirectorsofferthemselvesfor

re-electionannually.

Independence of Directors

AlltheDirectorsareconsideredbytheBoardtobeindependentof

theManagersandfreeofanybusinessorotherrelationshipwhich

couldinterferewiththeexerciseoftheirindependentjudgement.

TheDirectorsrecognisetheimportanceofsuccessionplanning

forcompanyboardsandtheBoard’scompositionisreviewed

annually.TheBoardisoftheviewthatlengthofservicewillnot

necessarilycompromisetheindependenceorcontributionof

directorsofaninvestmenttrustcompany,wherecontinuityand

experiencecanbeabenefittotheBoard.

Policy on Chairman’s Tenure

TheBoardconsidersthatthetenureoftheChairshouldbe

determinedprincipallybytheBoard’sroleinprovidingstrategic

leadership,governance,challengeandsupporttotheManagers,

whilstbalancingtheimportanceofindependence,refreshment

anddiversitywithretentionofthecorporatememory.Itfirmly

believesthatanappropriatecombinationofthesefactorsis

essentialforaneffectiveBoard.This,attimes,willnaturallyresult

insomelongerservingdirectors,includingtheChair.The

NominationCommitteeoftheBoardconsiderslongterm

successionplanningforthisroleaspartofitsbroaderremitto

ensureanappropriatelevelofrefreshmentanddiversityonthe

Board.Itdoesnotbelievetheimpositionofhardtimelimitstobe

helpfulinrespectofthisrole,anymorethanforthetenureof

Directorsoverall.

Governance Report

The Monks Investment Trust PLC 29

Meetings

ThereisanannualcycleofBoardmeetingswhichisdesigned

toaddress,inasystematicway,overallstrategy,reviewof

investmentpolicy,investmentperformance,marketing,revenue

budgets,dividendpolicyandcommunicationwithshareholders.

TheBoardconsidersthatitmeetssufficientlyregularlyto

dischargeitsdutieseffectively.Thetablebelowshowsthe

attendancerecordforthecoreBoardandCommitteemeetings

heldduringtheyear,excludingancillaryandsub-committee

meetings.TheAnnualGeneralMeetingwasattendedbyall

theDirectors.

Directors’ Attendance at Meetings

Board

Audit

Committee

Management

Engagement

Committee

Nomination

Committee

Number of meetings 4 2 1 1

CMBoyle 4 2 1 1

BJRichards 4 2 1 1

ProfessorSirNigelShadbolt 4  2 1 1

KSSternberg 4 2

1 1

JJTigue 4 2 1 1

* MrKSSternbergisnotamemberoftheAuditCommitteebut

attendsbyinvitation.

Performance Evaluation

AnappraisaloftheChairman,eachDirectorandaperformance

evaluationandreviewoftheBoardasawholeandtheAudit

Committeewascarriedoutduringtheyear.Afterconsideringand

respondingtoanevaluationquestionnaireeachDirectorhadan

interviewwiththeChairman.TheChairman’sappraisalwasledby

MrJJTigue,theSeniorIndependentDirector.Theappraisalsand

evaluationsconsidered,amongstothercriteria,thebalanceof

skillsoftheBoard,traininganddevelopmentrequirements,the

contributionofindividualDirectorsandtheoveralleffectivenessof

theBoardanditsCommittees.Followingthisprocessitwas

concludedthattheperformanceofeachDirector,theChairman,

theBoardanditsCommitteescontinuestobeeffectiveandthat

eachDirectorandtheChairmanremaincommittedtothe

Company.Foritsappraisalduring2021,theBoardsecuredthe

servicesofLintstock,anindependentcorporateadvisorwhich

hasnootherrelationshipwiththeCompanyoritsDirectors,in

accordancewiththerequirementforFTSE350companiesto

haveBoardevaluationsexternallyfacilitatedeverythreeyears.

ExternalfacilitationwillnextbeconsideredforBoardevaluations

in2024.

AreviewoftheChairman’sandotherDirectors’commitments

wascarriedoutandtheBoardissatisfiedthattheyarecapableof

devotingsufficienttimetotheCompany.

Induction and Training

NewDirectorsareprovidedwithaninductionprogrammewhichis

tailoredtotheparticularcircumstancesoftheappointee.Duringthe

yearbriefingsonindustryandregulatorymatterswereprovidedto

theBoardbytheManagersandSecretaries.Directorsreceive

otherrelevanttrainingasnecessary.

Management Engagement Committee

TheroleoftheManagementEngagementCommitteeistoensure

thattheManagerremainssuitabletomanagetheportfolio,that

themanagementcontractiscompetitiveandreasonableforthe

shareholders,andthattheCompanymaintainsappropriate

administrativeandcompanysecretarialsupport.AllDirectorsare

membersoftheManagementEngagementCommittee,whichis

chairedbytheChairmanoftheBoard.TheBoardconsiderseach

memberoftheCommitteetobeindependent.Todischargeits

duties,theCommitteemetononeoccasionduringtheyearto

consider:theperformanceandsuitabilityoftheManager;the

termsandconditionsoftheAIFMAgreement,includingfees;and

theCommittee’sTermsofReference.TheCommittee’sTermsof

ReferenceareavailableonrequestfromtheCompanyandonthe

Company’spageoftheManagers’website:

monksinvestmenttrust.co.uk.

Nomination Committee

TheNominationCommitteeconsistsofalltheDirectorsandKarl

SternbergistheChairmanoftheCommittee.TheCommittee

meetsonanannualbasisandatsuchothertimesasmaybe

required.TheCommitteehaswrittentermsofreferencewhich

includereviewingthecompositionoftheBoard,identifyingand

nominatingnewcandidatesforappointmenttotheBoard,Board

appraisal,successionplanningandtraining.TheCommittee

alsoconsiderswhetherDirectorsshouldberecommendedfor

re-electionbyshareholders.TheCommittee’sTermsofReference

areavailableonrequestfromtheCompanyandonthe

Company’spageoftheManagers’website:

monksinvestmenttrust.co.uk.

Remuneration

AstheBoardconsidersallitsmemberstobeindependent,and

alltheDirectorsarenon-executive,theBoarddoesnotconsider

itnecessarytoformaseparateRemunerationCommittee.

Directors’feesareconsideredbytheBoardasawholewithin

thelimitsapprovedbyshareholders.TheCompany’spolicyon

remunerationissetoutintheDirectors’RemunerationReport

onpages35and36.

Audit Committee

ThereportoftheAuditCommitteeissetoutonpages33and34.

Governance Report

30AnnualReport2022

Internal Controls and Risk Management

TheDirectorsacknowledgetheirresponsibilityfortheCompany’s

riskmanagementandinternalcontrolsystemsandforreviewing

theireffectiveness.Thesystemsaredesignedtomanagerather

thaneliminatetheriskoffailuretoachievebusinessobjectives

andcanonlyprovidereasonablebutnotabsoluteassurance

againstmaterialmisstatementorloss.

TheBoardconfirmsthatthereisanongoingprocessfor

identifying,evaluatingandmanagingthesignificantrisksfacedby

theCompanyinaccordancewiththeFRCguidance‘Guidanceon

RiskManagement,InternalControlandRelatedFinancialand

BusinessReporting’.

Thepracticalmeasuresinrelationtothedesign,implementation

andmaintenanceofcontrolpoliciesandprocedurestosafeguard

theCompany’sassetsandtomanageitsaffairsproperly,

includingthemaintenanceofeffectiveoperationalandcompliance

controlshavebeendelegatedtotheManagersandSecretaries.

TheBoardoverseesthefunctionsdelegatedtotheManagers

andSecretariesandthecontrolsmanagedbytheAIFMin

accordancewiththeUKAlternativeInvestmentFundManagers

Regulations(asdetailedbelow).BaillieGifford&Co’sInternal

AuditandComplianceDepartmentsandtheAIFM’spermanent

riskfunctionprovidetheAuditCommitteewithregularreportson

theirmonitoringprogrammes.Thereportingproceduresforthese

departmentsaredefinedandformalisedwithinaservicelevel

agreement.BaillieGifford&Coconductsanannualreviewofits

systemofinternalcontrolswhichisdocumentedwithinaninternal

controlsreportwhichcomplieswithISAE3402–Assurance

ReportsonControlsataServiceOrganization.Thisreportis

independentlyreviewedbyBaillieGifford&Co’sauditorsanda

copyissubmittedtotheAuditCommittee.

AreportidentifyingthematerialrisksfacedbytheCompanyand

thekeycontrolsemployedtomanagetheserisksisreviewedby

theAuditCommittee.

Theseproceduresensurethatconsiderationisgivenregularly

tothenatureandextentofrisksfacingtheCompanyandthat

theyarebeingactivelymonitored.Wherechangesinriskhave

beenidentifiedduringtheyeartheyalsoprovideamechanismto

assesswhetherfurtheractionisrequiredtomanagetheserisks.

TheDirectorsconfirmthattheyhavereviewedtheeffectiveness

oftheCompany’sriskmanagementandinternalcontrolssystems,

whichaccordwiththeFRC‘GuidanceonRiskManagement,

InternalControlandRelatedFinancialandBusinessReporting’,

andtheyhaveproceduresinplacetoreviewtheireffectiveness

onaregularbasis.Nosignificantweaknesseswereidentifiedin

theyearunderreviewanduptothedateofthisReport.

TheBoardconfirmsthattheseprocedureshavebeeninplace

throughouttheCompany’sfinancialyearandcontinuetobein

placeuptothedateofapprovalofthisReport.

TocomplywiththeUKAlternativeInvestmentFundManagers

Regulations,TheBankofNewYorkMellon(International)Limited

actsastheCompany’sDepositaryandBaillieGifford&CoLimited

actsasitsAIFM.

TheDepositary’sresponsibilitiesincludecashmonitoring,safe

keepingoftheCompany’sfinancialinstruments,verifying

ownershipandmaintainingarecordofotherassetsand

monitoringtheCompany’scompliancewithinvestmentlimits

andleveragerequirements.TheDepositaryisliablefortheloss

offinancialinstrumentsheldincustody.TheDepositarywill

ensurethatanydelegatesegregatestheassetsoftheCompany.

TheCompany’sDepositaryalsoactsastheCompany’s

Custodian.TheCustodianpreparesreportsonitskeycontrols

andsafeguardswhichareindependentlyreviewedbyits

appointedauditors,KPMGLLP.Thereportsarereviewedby

BaillieGifford’sBusinessRiskDepartmentandasummaryofthe

keypointsisreportedtotheAuditCommitteeandanyconcerns

areinvestigated.

TheDepositaryprovidestheAuditCommitteewithareportonits

monitoringactivities.

TheAIFMhasestablishedapermanentriskmanagementfunction

toensurethateffectiveriskmanagementpoliciesandprocedures

areinplaceandtomonitorcompliancewithrisklimits.TheAIFM

hasariskmanagementpolicywhichcoverstherisksassociated

withthemanagementoftheportfolio,andtheadequacyand

effectivenessofthispolicyisreviewedandapprovedatleast

annually.Thisreviewincludestheriskmanagementprocesses

andsystemsandlimitsforeachriskarea.

Therisklimits,whicharesetbytheAIFMandapprovedbythe

Board,takeintoaccounttheobjectives,strategyandriskprofile

oftheportfolio.Theselimits,includingleverage(seepage71),

aremonitoredandthesensitivityoftheportfoliotokeyrisksis

reviewedperiodicallyasappropriatetoascertaintheimpactof

changesinkeyvariablesintheportfolio.Exceptionsfromlimits

monitoringandstresstestingundertakenbyBaillieGifford’s

BusinessRiskDepartmentareescalatedtotheAIFMand

reportedtotheBoardalongwithremedialmeasuresbeingtaken.

Noexceptionsoccurredduringtheyear.

Governance Report

The Monks Investment Trust PLC 31

Going Concern

InaccordancewithTheFinancialReportingCouncil’sguidanceon

goingconcernandliquidityrisk,includingitsCovid-19guidance,

theDirectorshaveundertakenarigorousreviewoftheCompany’s

abilitytocontinueasagoingconcernandspecificallyinthe

contextoftheCovid-19pandemic.

TheCompany’sprincipalrisksaremarketrelatedandinclude

marketrisk,liquidityriskandcreditrisk.Anexplanationofthese

risksandhowtheyaremanagediscontainedonpages19and

20andinnote19totheFinancialStatements.TheBoardhas,in

particular,consideredtheimpactofheightenedmarketvolatility

duringtheCovid-19pandemicand,overrecentmonths,owingto

macroeconomicandgeopoliticalconcerns,includingtheRussia-

Ukraineconflict,butdoesnotbelievetheCompany’sgoing

concernstatusisaffected.

TheCompany’sassets,themajorityofwhichareinvestments

inquotedsecuritieswhicharereadilyrealisable(Level1),exceed

itsliabilitiessignificantlyandcouldbesoldtorepayborrowingsif

required.AllborrowingsrequirethepriorapprovaloftheBoard.

Gearinglevelsandcompliancewithborrowingcovenantsare

reviewedbytheBoardonaregularbasis.Duringtheyear,the

Companysecureda£150millionthreeyearflexiblefacilitywith

NationalAustraliaBankLimited(‘NAB’)toreplacethe£100million

NABfacilityexpiring30November2021andtheupto£50million

Scotiabank(Ireland)facilityexpiring13March2022.TheBoardis

consideringthebestformofborrowingstoreplacethe

Company’s£40milliondebenturestockmaturingon1March

2023,butisconfidentthatappropriatefinancingwillbesecured.

Inthemeantime,the£150millionNABfacilityhas£75million

commitmentstillundrawn.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.TheCompany’sprimary

thirdpartysuppliers,includingitsManagersandSecretaries,

CustodianandDepositary,Registrar,AuditorandBroker,havenot

experiencedsignificantoperationaldifficultiesaffectingtheir

respectiveservicestotheCompany,asaresultoftheCovid-19

pandemic.Accordingly,theFinancialStatementshavebeen

preparedonthegoingconcernbasisasitistheDirectors’

opinion,havingassessedtheprincipalandemergingrisksand

othermattersincludingtheimpactoftheCovid-19pandemicset

outintheViabilityStatementonpage20,whichassessesthe

prospectsoftheCompanyoveraperiodofthreeyears,thatthe

Companywillcontinueinoperationalexistencefortheperiodto

31July2023,whichisforaperiodofatleasttwelvemonthsfrom

thedateofapprovaloftheseFinancialStatements.

Relations with Shareholders

TheBoardplacesgreatimportanceoncommunicationwith

shareholders.TheCompany’sManagersmeetregularlywith

shareholdersandreportshareholders’viewstotheBoard.

The

Chairmanhasmaintainedopenlinesofcommunicationwith

marketparticipantsandinvestorsintheCompany,separateof

Managerinvolvement,inordertoascertainviewsoncorporate

matters.TheChairmanisavailabletomeetwithshareholders

appropriate.Shareholderswishingtocommunicatewithany

membersoftheBoardmaydosobywritingtothematthe

Secretaries’addressorthroughtheCompany’sBroker,Investec

Bankplc(seecontactdetailsonthebackcover).

TheCompany’sAnnualGeneralMeetingprovidesaforumfor

communicationwithallshareholders.Thelevelofproxieslodged

foreachresolutionisannouncedatthemeetingandispublished

atmonksinvestmenttrust.co.uksubsequenttothemeeting.

ThenoticeperiodfortheAnnualGeneralMeetingisatleast

twentyworkingdays.

Shareholdersandpotentialinvestorsmayobtainup-to-date

informationontheCompanyatmonksinvestmenttrust.co.uk.

Corporate Governance and Stewardship

TheBoardhasgivendiscretionaryvotingpowerstoBaillieGifford

&Co.TheManagersvoteagainstresolutionstheyconsidermay

damageshareholders’rightsoreconomicinterestsandreport

theiractionstotheBoard.

TheBoardbelievesthatitisintheshareholders’intereststo

considerenvironmental,socialandgovernance(ESG)factors

whenselectingandretaininginvestmentsandhasaskedthe

Managerstotaketheseissuesintoaccount.TheManagersdonot

excludecompaniesfromtheirinvestmentuniversepurelyonthe

groundsofESGfactors.Apositiveengagementapproachis

employedwherebymattersarediscussedwithmanagement

withtheaimofimprovingtherelevantpoliciesandmanagement

systemsandenablingtheManagerstoconsiderhowESG

factorscouldimpactlong-terminvestmentreturns.TheManagers’

statementofcompliancewiththeUKStewardshipCodecan

befoundontheManagers’websiteat bailliegifford.com.

TheManagers’policyhasbeenreviewedandendorsedbythe

Board.Inaddition,theMonksStewardshipReport,whichoutlines

theManagers’approachtoengagementandprovidesexamples,

ispreparedannually,andisavailableontheCompany’spageof

theManagers’websiteatmonksinvestmenttrust.co.uk.

Governance Report

32AnnualReport2022

Climate Change

TheBoardrecognisesthatclimatechangeposesaseriousthreat

toourenvironment,oursocietyandtoeconomiesandcompanies

aroundtheglobe.Addressingtheunderlyingcausesislikelyto

resultincompaniesthatarehighemittersofcarbonfacinggreater

societalandregulatoryscrutinyandhighercoststoaccountforthe

trueenvironmentalimpactoftheiractivities.

TheManagershaveengagedanexternalprovidertomapthe

carbonfootprintoftheequityportfolio,usingtheinformationto

prioritiseengagementandunderstandwhathigheremitting

companiesaredoingtomanageclimateriskbetter.Thecarbon

intensityofTheMonksInvestmentTrust’sportfoliois25%higher

thantheCompany’sbenchmark(FTSEWorldIndex).Thisanalysis

estimateisbasedon90%ofthevalueoftheCompany’sequity

portfoliowhichreportsoncarbonemissionsandothercarbon-

relatedcharacteristics.TheManagersareliaisingwiththeexternal

providertounderstandarecentchangeinitsmethodology,which

hasalteredthedataprovidedontheMonksportfolio,worsening

itsreportedrelativepositionat30April2022whencomparedto

similardatapreviouslyprovided.Theoutcomeofthatdiscussion

willinformtheManagers’futureportfolioanalysis.

BaillieGifford’sTaskForceonClimate-RelatedFinancial

Disclosures(‘TCFD’)ClimateReportisavailableonthe

Managers’websiteatbailliegifford.com.BaillieGiffordwill

provideaTCFDclimatereportforMonkswhichisexpected

tobeavailableduring2023.

TheManagershaveconsideredtheSustainableFinance

DisclosuresRegulation(‘SFDR’)andfurtherdetailscanbefound

onpage72.

TheManagersaresignatoriestotheUnitedNationsPrinciplesfor

ResponsibleInvestment,theCarbonDisclosureProject,theNet

ZeroAssetManagersinitiative,andarealsomembersoftheAsian

CorporateGovernanceAssociationandtheInternational

CorporateGovernanceNetwork.

OnbehalfoftheBoard

KSSternberg

Chairman

June2022

Governance Report

The Monks Investment Trust PLC 33

Audit Committee Report

TheAuditCommitteeconsistsofMsCMBoyle,MsBJRichards,

ProfessorSirNigelShadboltandMrJJTigue,whoisthe

ChairmanoftheCommittee.ThemembersoftheCommittee

considerthattheyhavetherequisitefinancialskillsandexperience

tofulfiltheresponsibilitiesoftheCommittee.TheCommittee’s

authorityanddutiesareclearlydefinedwithinitswrittentermsof

referencewhichareavailableonrequestfromtheCompany

Secretaryandatmonksinvestmenttrust.co.uk.Thetermsof

referencearereviewedannually.

TheCommittee’seffectivenessisreviewedonanannualbasisas

partoftheBoard’sperformanceevaluationprocess.

AtleastonceayeartheCommitteemeetswiththeexternal

AuditorwithoutanyrepresentativeoftheManagersbeingpresent.

Main Activities of the Committee

TheCommitteemettwiceduringtheyearandtheexternal

Auditor,Ernst&YoungLLP,attendedoneofthosemeetingsand

heldseparatemeetingswiththeAuditCommitteeChairin

advanceofbothCommitteemeetings.BaillieGifford&Co’s

InternalAuditandComplianceDepartmentsandtheAIFM’s

permanentriskfunctionprovidedreportsontheirmonitoring

programmesforthesemeetings.Inaddition,theexternalAuditor

metwiththeAuditCommitteeChaironanad-hocbasisto

discussmatterspertinenttotheCommitteeastheyarose.

Themattersconsidered,monitoredandreviewedbythe

Committeeduringthecourseoftheyearincludedthefollowing:

— theresultsannouncementandtheAnnualandInterimReports;

— theCompany’saccountingpoliciesandpracticesandthe

implementationoftheManagers’valuationpolicyfor

investmentsinunquotedcompanies;

— theregulatorychangesimpactingtheCompany;

— thefairness,balanceandunderstandabilityoftheAnnual

ReportandFinancialStatementsandwhetheritprovided

theinformationnecessaryforshareholderstoassessthe

Company’sperformance,businessmodelandstrategy;

— theeffectivenessoftheCompany’sinternalcontrolenvironment;

— reappointment,remunerationandtermsofengagementof

theexternalAuditor;

— whethertheauditservicescontractshouldbeputouttotender;

— thepolicyontheengagementoftheexternalAuditorto

supplynon-auditservices;

— theindependenceandobjectivityoftheexternalAuditor

andeffectivenessoftheexternalauditprocess;

— theneedfortheCompanytohaveitsowninternalauditfunction;

— internalcontrolsreportsreceivedfromtheManagersand

Custodians;and

— thearrangementsinplacewithinBaillieGifford&Cowhereby

theirstaffmay,inconfidence,raiseconcernsaboutpossible

improprietiesinmattersoffinancialreportingorothermatters.

Internal Audit

TheCommitteecontinuestobelievethatthecomplianceandinternal

controlsystemsandtheinternalauditfunctioninplacewithinthe

Managersprovidesufficientassurancethatasoundsystemof

internalcontrol,whichsafeguardsshareholders’investmentand

theCompany’sassets,ismaintained.Aninternalauditfunction,

specifictotheCompany,isthereforeconsideredunnecessary.

Financial Reporting

TheCommitteeconsidersthatthemostsignificantissueslikelyto

impacttheFinancialStatementsaretheexistenceandvaluation

ofinvestments,astheyrepresent

98.8

%oftotalassets,andthe

accuracyandcompletenessofincomefrominvestments.

Themajorityoftheinvestmentsareinlistedsecuritiesandmarket

pricesarereadilyavailablefromindependentexternalpricing

sources.TheCommitteereviewedtheManagers’Reporton

InternalControlswhichdetailsthecontrolsinplaceregarding

recordingandpricingofinvestmentsandthereconciliationof

investmentholdingstothirdpartydata.

Thevalueofallthelistedinvestmentsasat30April2022was

agreedtoexternalpricesources.TheCommitteeconsidered

theManagers’proposedvaluationofallunquotedandsuspended

investmentsat30April2022,whicharedeterminedusing

valuationtechniquesbaseduponnetassetvalues,comparable

companymultiplesandperformance,achievementofcompany

milestonesandotherinformationasappropriate,andassessed

theappropriatenessofthejudgementsandassumptionsusedin

valuingsuchinvestments.TheManagersagreedtheportfolio

holdingstoconfirmationsfromtheCompany’sCustodian.

TheCommitteereviewedtheManagers’ReportonInternal

Controlswhichdetailsthecontrolsinplaceregarding

completenessandaccuraterecordingofinvestmentincome.

Theaccountingtreatmentofeachspecialdividendreceivedor

receivableduringtheyearwasreviewedbytheManagers.

TheCommitteeconsideredthefactors,includingtheimpactof

Covid-19,thatmightaffecttheCompany’sviabilityoveraperiod

ofthreeyearsanditsabilitytocontinueasagoingconcernforthe

periodto31July2023,togetherwithreportsfromtheManagers

onthecashpositionandcashflowprojectionsoftheCompany,

theliquidityofitsinvestmentportfolio,compliancewithdebt

covenants,availabilityofborrowingfacilities,andtheCompany’s

abilitytomeetitsobligationsastheyfalldue.TheCommitteealso

reviewedtheViabilityStatementonpage20andstatementon

GoingConcernonpage31includingthepotentialimpactof

Covid-19.Followingthisassessment,theCommittee

recommendedtotheBoardtheappropriatenessoftheGoing

ConcernbasisinpreparingtheFinancialStatementsand

confirmedtheaccuracyoftheViabilityStatementandstatement

onGoingConcern.

TheManagersconfirmedtotheCommitteethattheywerenot

awareofanymaterialmisstatementsinthecontextoftheFinancial

StatementsasawholeandthattheFinancialStatementsarein

accordancewithapplicablelawandaccountingstandards.

Governance Report

34AnnualReport2022

Internal Controls and Risk Management

TheCommitteereviewedtheeffectivenessoftheCompany’s

riskmanagementandinternalcontrolssystemsasdescribed

onpage30.Nosignificantweaknesseswereidentified

intheyearunderreview.

External Auditor

Tofulfilitsresponsibilityregardingtheindependenceand

objectivityoftheexternalAuditor,theCommitteereviewedthe

Auditor’sauditplan,whichincludesadescriptionoftheAuditor’s

arrangementstomanageindependence,areportfromtheAuditor

ontheconclusionoftheauditsettingoutwhytheAuditorremains

independentandtheextentandnatureofnon-auditservices

providedbytheAuditor.Non-auditfeesincurredbytheCompany

fortheyearto30April2022amountto£1,500(2021–£1,250)

andrelatedtothecertificationoffinancialinformationtothe

debenturetrustee.

TheCommitteehasreviewedandapprovedthenon-audit

servicesprovidedbytheAuditorduringtheyearanddoesnot

believethattheyhaveimpairedtheAuditor’sindependenceasthe

amountinvolvedisimmaterial.

ToassesstheeffectivenessoftheAuditorandtheexternalaudit

process,theCommitteereviewedandconsideredtheauditplan,

thefulfilmentbytheAuditoroftheagreedauditplan,areportfrom

theAuditorontheconclusionoftheaudit,feedbackfromthe

SecretariesontheperformanceoftheauditteamandtheAudit

QualityInspectionReportonErnst&YoungLLPissuedbythe

FRC’sAuditQualityReviewTeam(AQRT).

Followingacompetitivetenderprocess,Ernst&YoungLLPwas

appointedastheCompany’sAuditorattheAnnualGeneral

Meetingheldon2August2017,withCarolineMercerasthelead

auditpartner.Theauditpartnersresponsiblefortheauditaretobe

rotatedatleasteveryfiveyearsinaccordancewithprofessionaland

regulatorystandardsinordertoprotectindependenceand

objectivityandtoprovidefreshchallengetothebusiness.Thisis

CarolineMercer’sfifthandfinalyearasleadauditpartnerforthe

Company’saudit.AsuccessortoCarolineMercerhasbeen

proposed,andwillleadnextyear’sauditsubjecttotheAudit

Committee’sapproval.

Ernst&YoungLLPhasconfirmedthatitbelievesitisindependent

withinthemeaningofregulatoryandprofessionalrequirements

andthattheobjectivityoftheauditpartnerandstaffisnotimpaired.

Havingcarriedoutthereviewdescribedabove,theCommitteeis

satisfiedthattheAuditorremainsindependentandeffectivefor

thepurposesofthisyear’sauditand,assuch,hasnotconsidered

itnecessarytoputtheauditservicescontractouttotender.

Inaccordancewithregulationsinrelationtothestatutoryaudits

oflistedcompanies,theCompanyisrequiredtoputtheaudit

outtotenderforthe2028yearend.

TherearenocontractualobligationsrestrictingtheCommittee’s

choiceofexternalAuditor.

Regulatory Compliance

TheCommitteeconfirmsthattheCompanyisincompliancewith

therequirementsoftheStatutoryAuditServicesforLarge

CompaniesMarketInvestigation(MandatoryUseofCompetitive

TenderProcessesandAuditCommitteeResponsibilities)Order

2014,whichrelatestothefrequencyandgovernanceoftenders

fortheappointmentoftheexternalauditorandthesettingof

policyontheprovisionofnon-auditservices.

Accountability and Audit

TherespectiveresponsibilitiesoftheDirectorsandtheAuditor

inconnectionwiththeFinancialStatementsaresetoutonpages

37to43.

OnbehalfoftheBoard

JJTigue

ChairmanoftheAuditCommittee

June2022

Governance Report

The Monks Investment Trust PLC 35

Directors’ Remuneration Report

Thisreporthasbeenpreparedinaccordancewiththe

requirementsoftheCompaniesAct2006.

Statement by the Chairman

TheDirectors’RemunerationPolicyissubjecttoshareholder

approvaleverythreeyearsorsoonerifanalterationtothepolicy

proposed.TheRemunerationPolicywhichissetoutbelow,was

approvedbyshareholdersattheAnnualGeneralMeetingheldin

September2020,andnochangesareproposed.

TheBoardreviewedtheleveloffeesduringtheyearanditwas

agreedthatwitheffectfrom1May2022theChairman’sFee

and

Directors’Feesshouldeachincreaseby£1,500perannum

with

nochangetotheincrementfortheAuditChairorSenior

IndependentDirector.Thefeelevelswerelastincreasedon

May2021.

Directors’ Remuneration Policy

TheBoardiscomposedwhollyofnon-executiveDirectors,none

ofwhomhasaservicecontractwiththeCompany.Thereisno

separateremunerationcommitteeandtheBoardasawhole

considerschangestoDirectors’feesfromtimetotime.BaillieGifford

&CoLimited,theCompanySecretaries,providecomparative

informationwhentheBoardconsidersthelevelofDirectors’fees.

TheBoard’spolicyisthattheremunerationofDirectorsshouldbe

setatareasonablelevelthatiscommensuratewiththeduties

andresponsibilitiesoftheroleandconsistentwiththerequirement

toattractandretainDirectorsoftheappropriatequalityand

experience.TheBoardbelievesthatthefeespaidtotheDirectors

shouldreflecttheexperienceoftheBoardasawhole,befair

andshouldtakeaccountoftheleveloffeespaidbycomparable

investmenttrusts.Anyviewsexpressedbyshareholdersonthe

feesbeingpaidtoDirectorswillbetakenintoconsiderationby

theBoardwhenreviewingtheBoard’spolicyonremuneration.

Non-executiveDirectorsarenoteligibleforanyotherremuneration

orbenefitsapartfromthereimbursementofallowableexpenses.

TherearenoperformanceconditionsrelatingtoDirectors’fees

andtherearenolong-termincentiveschemesorpension

schemes.Thereisnonoticeperiodandnocompensationis

payableonlossofoffice.

Limits on Directors’ Remuneration

Thefeesforthenon-executiveDirectorsarepayablemonthly

arrearsandaredeterminedwithinthelimitsetoutinthe

Company’sArticlesofAssociation,whichiscurrently£300,000

aggregate.Anychangetothislimitrequiresshareholder

approval.Itisproposedthatthislimitbeincreasedto£400,000

perannuminaggregate,toallowheadroomforrecruitmentand

refreshmentincludingserviceoverlap,andaresolutionwillbeput

toshareholdersattheforthcomingAnnualGeneralMeetingin

conjunctionwiththewiderrefreshmentoftheArticles.

ThefeespaidtoDirectorsinrespectoftheyearended30April

2022andtheexpectedfeespayableinrespectoftheyearending

30April2023aresetoutinthetablebelow.Thefeespayableto

theDirectorsinthesubsequentfinancialperiodswillbedetermined

followinganannualreviewoftheDirectors’fees.

Expected

fees for

year ending

30 Apr 2023

Fees as at

30 Apr 2022

Chairman’sfee 47,500 46,000

Non-executiveDirectorfee 32,500 31,000

AdditionalfeeforChairmanofthe

AuditCommittee

* 6,000 6,000

AdditionalfeefortheSenior

IndependentDirector

* 3,000 3,000

* TheAuditChairperformsadditionalresponsibilitiesasnotedin

theAuditCommitteeReportonpages33and34.TheSenior

IndependentDirector(‘SID’)performsadditionalresponsibilitiesas

notedonpage28.

Annual Report on Remuneration

Anordinaryresolutionfortheapprovalofthisreportwillbeputto

themembersattheforthcomingAnnualGeneralMeeting.

ThelawrequirestheCompany’sAuditortoauditcertainofthe

disclosuresprovidedinthisreport.Wheredisclosureshavebeen

audited,theyareindicatedassuch.TheAuditor’sopinionis

includedintheIndependentAuditor’sReportonpages38to43.

Directors’ Remuneration for the Year (audited)

TheDirectorswhoservedduringtheyearreceivedthefollowingremunerationintheformoffeesandtaxablebenefits.Thisrepresents

theentireremunerationpaidtotheDirectors.

Name

2022

Fees

2022

Taxable

benefits

†

2022

Total

2021

Fees

2021

Taxable

benefits

†

2021

Total

CMBoyle 31,000 165 31,165 30,000 – 30,000

JGDFerguson(retired1September2020) – – – 14,836 196 15,032

EMHarley(retired16March2021) – – – 26,685 – 26,685

BJRichards 31,000 – 31,000 30,000 – 30,000

ProfessorSirNigelShadbolt 31,000 – 31,000 30,000 – 30,000

KSSternberg(Chairfrom1September2020) 46,000 – 46,000 39,333 – 39,333

JJTigue(AuditCommitteeChair) 40,000 – 40,000 35,000 – 35,000

179,000 165 179,165 205,854 196 206,050

†

ComprisesexpensesincurredbyDirectorsinthecourseoftraveltoattendBoardandCommitteemeetingsheldattheofficesofBaillieGifford

&CoLimited,theCompany’sSecretaries.Theseamountshavebeengrossedupforincometax.

Governance Report

36AnnualReport2022

Annual Percentage Change in Remuneration

Thisrepresentstheannualpercentagechangeinthetotalremuneration

paidtotheDirectors.

Name

% change

from 2021

to 2022

% change

from 2020

to 2021

CMBoyle(appointed1May2020) 3.9 –

JGDFerguson(retired1September2020) – (65.8)

EMHarley(retired16March2021) – (8.0)*

BJRichards 3.3 3.4

ProfessorSirNigelShadbolt 3.3 3.4

KSSternberg(Chairfrom

 1September2020) 17.0 35.6

JJTigue(AuditCommitteeChair

 andSID) 14.3 4.5

* Thes

epercentagemovementsreflecttheDirectors’retirement/

appointmentsintheperiod.

Directors’ Interests (audited)

TheDirectorsattheyearend,andtheirinterests(includingthoseof

connectedpersons)intheCompanyareasshowninthefollowing

table.TherehavebeennochangesintimatedintheDirectors’

interestsupto16June2022.

Name

Nature

of interest

Ordinary 5p

shares held at

30 April 2022

Ordinary 5p

shares held at

30 April 2021

CMBoyle Beneficial – –

BJRichards Beneficial 11,397 11,397

ProfessorSir

 NigelShadbolt

Beneficial – –

KSSternberg Beneficial 19,189 18,189

JJTigue Beneficial 41,231 41,176

Statement of Voting at Annual General Meeting

AtthelastAnnualGeneralMeeting,oftheproxyvotesreceived

inrespectoftheDirectors’RemunerationReport,99.8%werein

favour,0.1%wereagainstandvoteswithheldwere0.1%.Atthe

lastAnnualGeneralMeetingatwhichtheDirectors’Remuneration

Policywasconsidered(September2020)99.8%oftheproxy

votesreceivedwereinfavour,0.1%wereagainstand0.1%were

withheld.

Relative Importance of Spend on Pay

Thetablebelowshowstheactualexpenditureduringtheyear

inrespectofDirectors’remunerationanddistributionsto

shareholdersbywayofdividends.

2022

£’000

2021

£’000

Change

Directors’remuneration 179 206 (13.1)

Dividendspaidtoshareholders 5,350 4,729 13.1

Cumulative years to 30 April

2014 2017 20202019

20222021

Source: Refinitiv/Baillie Gifford

and relevant underlying index providers

Monks share price

FTSE All-Share

FTSE World Index

Past performance is not a guide to future performance.

ll figures are total returns (see Glossary of Terms and Alternative Performance

Measures on pages 74 to 76).

See disclaimer on page 73.

2012

201620152013 2018

450

150

350

250

200

100

400

300

Performance Graph

(figuresrebasedto100at30April2012)

Company Performance

Thefollowinggraphcomparesthesharepricetotalreturn

(assumingalldividendsarereinvested)toMonks’ordinary

shareholderscomparedwiththetotalshareholderreturnona

notionalinvestmentmadeupofsharesinthecomponentpartsof

theFTSEAll-ShareIndex.Thisindexwaschosenforcomparison

purposesasitisawidelyusedmeasureofperformanceforUK

listedcompanies(FTSEWorldIndex,whichistheCompany’s

comparativeindex,isprovidedforinformationpurposesonly).

Approval

TheDirectors’RemunerationReportonpages35and36was

approvedbytheBoardofDirectorsandsignedonitsbehalfon

20June2022.

KSSternberg

Chairman

Governance Report

The Monks Investment Trust PLC 37

TheDirectorsareresponsibleforpreparingtheAnnualReport

andtheFinancialStatementsinaccordancewithapplicablelaw

andregulations.

CompanylawrequirestheDirectorstoprepareFinancial

Statementsforeachfinancialyear.Underthatlawtheyhave

electedtopreparetheFinancialStatementsinaccordancewith

applicablelawandUnitedKingdomAccountingStandards

(UnitedKingdomGenerallyAcceptedAccountingPractice)

includingFRS102‘TheFinancialReportingStandardapplicable

intheUKandRepublicofIreland’.

UndercompanylawtheDirectorsmustnotapprovetheFinancial

Statementsunlesstheyaresatisfiedthattheygiveatrueandfair

viewofthestateofaffairsoftheCompanyandoftheprofitor

lossoftheCompanyforthatperiod.InpreparingtheseFinancial

Statements,theDirectorsarerequiredto:

— selectsuitableaccountingpoliciesandthenapplythem

consistently;

— makejudgementsandaccountingestimatesthatare

reasonableandprudent;

— statewhetherapplicableUnitedKingdomAccounting

Standardshavebeenfollowed,subjecttoanymaterial

departuresdisclosedandexplainedintheFinancial

Statements;

— assesstheCompany’sabilitytocontinueasagoingconcern,

disclosing,asapplicable,mattersrelatedtogoingconcern;and

— preparetheFinancialStatementsonthegoingconcernbasis

unlessitisinappropriatetopresumethattheCompanywill

continueinbusiness.

TheDirectorsareresponsibleforkeepingadequateaccounting

recordsthataresufficienttoshowandexplaintheCompany’s

transactionsanddisclosewithreasonableaccuracyatanytime

thefinancialpositionoftheCompanyandenablethemtoensure

thattheFinancialStatementsandtheDirectors’Remuneration

ReportcomplywiththeCompaniesAct2006.Theyarealso

responsibleforsafeguardingtheassetsoftheCompanyand

hencefortakingreasonablestepsforthepreventionand

detectionoffraudandotherirregularities.

Underapplicablelawsandregulations,theDirectorsarealso

responsibleforpreparingaStrategicReport,Directors’Report,

aDirectors’RemunerationReportandaCorporateGovernance

Statementthatcomplieswiththatlawandthoseregulations.

TheDirectorshavedelegatedresponsibilitytotheManagersfor

themaintenanceandintegrityoftheCompany’spageofthe

Managers’website.LegislationintheUnitedKingdomgoverning

thepreparationanddisseminationofFinancialStatementsmay

differfromlegislationinotherjurisdictions.Theworkcarriedout

bytheAuditordoesnotinvolveanyconsiderationofthese

mattersand,accordingly,theAuditoracceptsnoresponsibilityfor

anychangesthatmayhaveoccurredtotheFinancialStatements

sincetheywereinitiallypresentedonthewebsite.

EachoftheDirectors,whosenamesandfunctionsarelisted

withintheDirectorsandManagementsection,confirmthat,

tothebestoftheirknowledge:

— theFinancialStatements,whichhavebeenpreparedin

accordancewithapplicablelawandUnitedKingdom

AccountingStandards(UnitedKingdomGenerallyAccepted

AccountingPractice)includingFRS102‘TheFinancial

ReportingStandardapplicableintheUKandRepublicof

Ireland’,giveatrueandfairviewoftheassets,liabilities,

financialpositionandnetreturnoftheCompany;

— theAnnualReportandFinancialStatementstakenasawhole

isfair,balancedandunderstandableandprovidesthe

informationnecessaryforshareholderstoassessthe

Company’sperformance,businessmodelandstrategy;and

— theStrategicReportincludesafairreviewofthedevelopment

andperformanceofthebusinessandthepositionofthe

Company,togetherwithadescriptionoftheprincipalrisks

anduncertaintiesthatitfaces.

OnbehalfoftheBoard

KSSternberg

Chairman

20June2022

Statement of Directors’ Responsibilities in Respect

of the Annual Report and the Financial Statements

Governance Report

38AnnualReport2022

Opinion

WehaveauditedthefinancialstatementsofTheMonks

InvestmentTrustPLC(the‘Company’)fortheyearended30April

2022whichcomprisetheIncomeStatement,BalanceSheet,

StatementofChangesinEquity,CashFlowStatementandthe

relatednotes1to21,includingasummaryofsignificant

accountingpolicies.Thefinancialreportingframeworkthathas

beenappliedintheirpreparationisapplicablelawandUnited

KingdomAccountingStandardsincludingFRS102“TheFinancial

ReportingStandardapplicableintheUKandRepublicofIreland”

(UnitedKingdomGenerallyAcceptedAccountingPractice).

Inouropinion,thefinancialstatements:

— giveatrueandfairviewoftheCompany’saffairsasat

30April2022andofitslossfortheyearthenended;

— havebeenproperlypreparedinaccordancewithUnited

KingdomGenerallyAcceptedAccountingPractice;and

— havebeenpreparedinaccordancewiththerequirementsof

theCompaniesAct2006.

Basis for Opinion

WeconductedourauditinaccordancewithInternational

StandardsonAuditing(UK)(ISAs(UK))andapplicablelaw.

Ourresponsibilitiesunderthosestandardsarefurtherdescribed

intheAuditor’sresponsibilitiesfortheauditofthefinancial

statementssectionofourreport.Webelievethattheaudit

evidencewehaveobtainedissufficientandappropriateto

provideabasisforouropinion.

Independence

WeareindependentoftheCompanyinaccordancewiththe

ethicalrequirementsthatarerelevanttoourauditofthefinancial

statementsintheUK,includingtheFRC’sEthicalStandardas

appliedtopublicinterestentities,andwehavefulfilledourother

ethicalresponsibilitiesinaccordancewiththeserequirements.

Thenon-auditservicesprohibitedbytheFRC’sEthicalStandard

werenotprovidedtotheCompanyandweremainindependentof

theCompanyinconductingtheaudit.

Conclusions Relating to Going Concern

Inauditingthefinancialstatements,wehaveconcludedthatthe

Directors’useofthegoingconcernbasisofaccountinginthe

preparationofthefinancialstatementsisappropriate.Our

evaluationoftheDirectors’assessmentoftheCompany’sability

tocontinuetoadoptthegoingconcernbasisofaccounting

included:

— WeconfirmedourunderstandingoftheCompany’sgoing

concernassessmentprocessanddiscussedwiththe

DirectorsandtheCompanySecretarythosefactorsthey

consideredimportantintheirassessment.Weconsidered

whetherthefactorstakenaccountofintheDirectors’

assessmentaddressedthosematterswhichweconsidered

important.

— WeinspectedtheDirectors’assessmentofgoingconcern,

includingthecashflowforecast,fortheperiodto31July

2023whichisatleasttwelvemonthsfromthedatethe

financialstatementswereauthorisedforissue.Inpreparing

therevenueforecast,theCompanyhasconcludedthatitis

abletocontinuetomeetitsongoingcostsastheyfalldue.

— Wereviewedthefactorsandassumptions,includingthe

impactoftheCOVID-19pandemicandothersignificant

eventsthatcouldgiverisetomarketvolatility.Wealso

reviewedandchallengedthereversestresstestingperformed

andassessedtheindicativeimpactontheCompany’snet

assetvalue.Weconsideredtheappropriatenessofthe

methodsusedtobeabletomakeanassessmentforthe

Company.

— InrelationtotheCompany’sborrowingarrangements,we

assessedtheriskofbreachingthedebtcovenantsasaresult

ofareductioninthevalueoftheCompany’sportfolio.We

calculatedtheCompany’scompliancewithdebtcovenants

andperformedreversestresstestinginordertoidentifywhat

factorswouldleadtotheCompanybreachingthefinancial

covenants.

— Weconsideredthemitigatingfactorsincludedinthecashflow

forecastsandcovenantcalculationsthatarewithinthecontrol

oftheCompany.WereviewedtheCompany’sassessmentof

theliquidityofinvestmentsheldandevaluatedtheCompany’s

abilitytosellthoseinvestmentsinordertocoverworking

capitalrequirementsshouldrevenuedeclinesignificantly.

— WereviewedtheCompany’sgoingconcerndisclosures

includedintheannualreportinordertoassessthatthe

disclosureswereconsistentwiththefinancialstatementsand

ourunderstandingoftheCompanyandinconformitywiththe

reportingstandards.

Basedontheworkwehaveperformed,wehavenotidentified

anymaterialuncertaintiesrelatingtoeventsorconditionsthat,

individuallyorcollectively,maycastsignificantdoubtonthe

Company’sabilitytocontinueasagoingconcernforaperiod

to31July2023.

InrelationtotheCompany’sreportingonhowtheyhaveapplied

theUKCorporateGovernanceCode,wehavenothingmaterialto

addordrawattentiontoinrelationtotheDirectors’statementin

thefinancialstatementsaboutwhethertheDirectorsconsideredit

appropriatetoadoptthegoingconcernbasisofaccounting.

OurresponsibilitiesandtheresponsibilitiesoftheDirectorswith

respecttogoingconcernaredescribedintherelevantsectionsof

thisreport.However,becausenotallfutureeventsorconditions

canbepredicted,thisstatementisnotaguaranteeastothe

Company’sabilitytocontinueasagoingconcern.

Financial Report

Independent Auditor’s Report

To the Members of The Monks Investment Trust PLC

The Monks Investment Trust PLC 39

Overview of Our Audit Approach

Key audit matters

Riskofincorrectvaluationandownership

ofthelistedandunquotedinvestments.

Riskofincompleteorinaccuraterevenue

recognition,includingtheclassificationof

specialdividendsasrevenueorcapitalin

theIncomeStatement.

Materiality

Overallmaterialityof£24.79mwhich

represents1%ofshareholders’funds.

An Overview of the Scope of Our Audit

Tailoring the Scope

Ourassessmentofauditrisk,ourevaluationofmaterialityandour

allocationofperformancematerialitydetermineourauditscope

fortheCompany.Thisenablesustoformanopiniononthe

financialstatements.Wetakeintoaccountsize,riskprofile,the

organisationoftheCompanyandeffectivenessofcontrols,

includingcontrolsandchangesinthebusinessenvironmentwhen

assessingthelevelofworktobeperformed.Allauditworkwas

performeddirectlybytheauditengagementteamwhichincluded

ourvaluationspecialists.

Climate Change

Therehasbeenincreasinginterestfromstakeholdersastohow

climatechangewillimpactcompanies.TheCompanyhas

determinedthatclimateproblemsmayimpactinvesteeCompany

valuationsandinturntheCompany’sownshareprice.Thisis

explainedonpage19intheprincipalandemergingriskssection,

whichformpartofthe“Otherinformation,”ratherthantheaudited

financialstatements.Ourproceduresonthesedisclosures

thereforeconsistedsolelyofconsideringwhethertheyare

materiallyconsistentwiththefinancialstatementsorour

knowledgeobtainedinthecourseoftheauditorotherwise

appeartobemateriallymisstated.

Financial Report

Ourauditeffortinconsideringclimatechangewasfocusedon

theadequacyoftheCompany’sdisclosuresinthefinancial

statementsassetoutinNote1aandconclusionthattherewas

nofurtherimpactofclimatechangetobetakenintoaccountas

theinvestmentsarevaluedbasedonmarketpricingasrequired

byFRS102andunquotedinvestmentsarevaluedwithreference

tolistedcomparablecompaniesthereforereflectiveofmarket

participantsviews.WealsochallengedtheDirectors’

considerationsofclimatechangeintheirassessmentofviability

andassociateddisclosures.

Key Audit Matters

Keyauditmattersarethosemattersthat,inourprofessional

judgment,wereofmostsignificanceinourauditofthefinancial

statementsofthecurrentperiodandincludethemostsignificant

assessedrisksofmaterialmisstatement(whetherornotdueto

fraud)thatweidentified.Thesemattersincludedthosewhichhad

thegreatesteffecton:theoverallauditstrategy,theallocationof

resourcesintheaudit;anddirectingtheeffortsoftheengagement

team.Thesematterswereaddressedinthecontextofouraudit

ofthefinancialstatementsasawhole,andinouropinionthereon,

andwedonotprovideaseparateopiniononthesematters.

40AnnualReport2022

Risk

Our response

to the risk

Key observations communicated to the

Audit Committee

Incorrect valuation and ownership of

the listed and unquoted investments

(asdescribedonpage33intheReport

theAuditCommitteeandasperthe

accountingpolicysetoutonpage49).

Thevaluationoftheinvestmentportfolio

at30April2022was£2,662.01m

(2021 – £3,238.13m)consistingof

quotedinvestmentswithan

aggregatevalueof£2,599.76m

(2021 – £3,158.82m)andunquotedand

suspendedequitieswithanaggregate

valueof£62.25m(2021 – £74.15m).

Thevaluationoftheassetsheldinthe

investmentportfolioisthekeydriverof

theCompany’snetassetvalueandtotal

return.Incorrectinvestmentpricing,ora

failuretomaintainproperlegaltitletothe

investmentsheldbytheCompanycould

haveasignificantimpactontheportfolio

valuationandthereturngeneratedfor

shareholders.

Thefairvalueofquotedinvestmentsis

determinedbyreferencetobidvalueor

thelasttradedpricedependingonthe

conventionoftheexchangeonwhichthe

investmentisquoted.

Unquotedinvestmentsarevaluedatfair

valuebytheDirectorsfollowingadetailed

reviewandappropriatechallengeofthe

valuationsproposedbytheBaillieGifford

FairValuePricingGroup.Theunquoted

investmentpolicyappliesmethodologies

consistentwiththeInternationalPrivate

EquityandVentureCapitalValuation

guidelines(‘IPEV’).

Thevaluationofunquotedand

suspendedinvestments,andtheresultant

impactontheunrealisedgains/(losses),

isthearearequiringthemostsignificant

judgementandestimationinthe

preparationofthefinancialstatements

andhasbeenclassifiedasanareaof

fraudriskashighlightedbelowon

page43.

erformed the following procedures:

WeobtainedanunderstandingofBaillieGifford’s

processesandcontrolssurroundinglegaltitleandpricing

ofquotedandunquotedinvestmentsbyperforming

walkthroughprocedures.

Forallquotedinvestmentsintheportfolio,wecompared

themarketpricesandexchangeratesappliedtoan

independentpricingvendorandrecalculatedthe

investmentvaluationsasattheyear-end.

Weinspectedthestalepricingreportsproducedby

BaillieGiffordtoidentifypricesthathavenotchanged

withinonebusinessdayandverifiedwhetherthequoted

priceisavalidfairvalue.Weidentifiedtwostalepricesin

relationtoRussianstocks,wenotedthesewerenil

valuedandagreedthesetopricingvendorinformation,

verifyingthecircumstancestoconfirmanilvaluewas

appropriate.

Fortheunquotedandsuspendedinvestmentsheldasat

30April2022theauditteamorourvaluationspecialists

reviewedandchallengedthevaluations.Thisincluded:

— Reviewingthevaluationpaperspreparedbythe

PrivateCompaniesValuationGroupandFairValue

PricingGrouptogainanunderstandingof,and

commenton,thevaluationmethodologiesand

assumptions;

— InitialdiscussionwiththeManager’sPrivate

CompaniesValuationGrouptounderstandtheir

valuationapproachandafollowupmeetingto

challengecertainareasoftheirapproach,

documentationandvaluationconclusions;

— Assessingwhetherthevaluationshavebeen

performedinlinewiththevaluationapproachesas

setoutinUKGAAPandtheInternationalPrivate

EquityandVenturecapital(‘IPEV’)guidelines;

— Assessingtheappropriatenessofthedatainputs

andchallengingtheassumptionsusedtosupport

thevaluations;

— Assessingotherfactsandcircumstances,suchas

marketmovementandcomparativeCompany

information,thathaveanimpactonthefairmarket

valueoftheinvestments;andassessingwhether

managementsvaluationisreasonable.

Werecalculatedtheunrealisedgains/losseson

investmentsasattheyear-endusingthebook-cost

reconciliation.

WecomparedtheCompany’sinvestmentholdingsat

April2022toindependentconfirmationsreceived

directlyfromtheCompany’sCustodianorfromthe

investeecompany.

The results of our procedures

identified no material misstatement

in relation to the risk of incorrect

valuation or ownership of the

investment portfolio.

Financial Report

The Monks Investment Trust PLC 41

Risk

Our response

to the risk

Key observations communicated to the

Audit Committee

Incomplete or inaccurate revenue

recognition, including the classification

of special dividends as revenue or

capital items in the Income Statement

(pertheAuditCommitteereportsetout

onpages33to34andtheaccounting

policysetoutonpage50).

Thetotalrevenuefortheyearto30April

2022was£27.81m(2021–£22.53m).

Includedintotalrevenuewasrevenue

specialdividendswithavalueof£2.42m

(2021–£1.07m).Capitalspecial

dividendswithavalueof£0.13m

(2021–£0.04m)arereflectedinnet

gains/(losses)oninvestmentsinthe

IncomeStatement.

Thereisariskofincompleteorinaccurate

recognitionofrevenuethroughthefailure

torecogniseproperincomeentitlements

ortoapplyanappropriateaccounting

treatment.

TheDirectorsmayberequiredtoexercise

judgmentindeterminingwhetherincome

receivableintheformofspecialdividends

shouldbeclassifiedas‘revenue’or

‘capital’intheIncomeStatementandhas

beenclassifiedasanareaoffraudriskas

highlightedbelowonpage43.

We have performed the following procedures:

WeobtainedanunderstandingofBaillieGifford’s

processesandcontrolssurroundingrevenuerecognition

includingtheclassificationofspecialdividendsby

performingwalkthroughprocedures.

Foralldividends,werecalculatedtheincomeby

multiplyingtheinvestmentholdingsattheex-dividend

date,tracedfromtheaccountingrecords,bythe

dividendpershare,whichwasagreedtoanindependent

datavendor.Weagreedasampletobankstatements

and,whereapplicable,wealsoagreedtheexchange

ratestoanexternalsource.

Totestcompletenessofrecordedincome,wetestedthat

dividendshadbeenrecordedforasampleofinvestee

companieswithreferencetoinvesteecompany

announcementsobtainedfromanindependentdata

vendor.

Foralldividendsaccruedattheyearend,wereviewed

theinvesteecompanyannouncementstoassess

whetherthedividendobligationarosepriorto30April

2022.Weagreedthedividendratetocorresponding

announcementsmadebytheinvesteecompany,

recalculatedthedividendamountreceivableand

confirmedthiswasconsistentwithcashreceivedas

shownonpostyearendbankstatements.

Weperformedareviewoftheincomeandacquisition

anddisposalreportsproducedbyBaillieGiffordto

identifyallspecialdividendsreceivedandaccruedduring

theperiod,aboveourtestingthreshold.Weidentified

11specialdividendsthathadbeenreceivedbythe

Companyintheyearwhichwereallindividuallybelowour

testingthreshold.Forasampleofspecialdividends

whichwereindividuallybelowourthresholdbuttotalled

£2.33mweassessedtheappropriatenessof

management’sclassification.Weconfirmedthroughan

independentreviewthattheclassificationofthespecial

dividendswereconsistentwiththeunderlyingmotives

andcircumstancesforthepayments.

The results of our procedures

identified no material misstatement in

relation to the risk of incomplete or

inaccurate revenue recognition,

including incorrect classification of

special dividends as revenue or

capital items in the Income

Statement.

Therehavebeennochangestotheareasofauditfocusraisedintheaboverisktablefromtheprioryear.

Our Application of Materiality

Weapplytheconceptofmaterialityinplanningandperforming

theaudit,inevaluatingtheeffectofidentifiedmisstatementson

theauditandinformingourauditopinion.

Materiality

The magnitude of an omission or misstatement that, individually

or in the aggregate, could reasonably be expected to influence

the economic decisions of the users of the financial statements.

Materiality provides a basis for determining the nature and

extent of our audit procedures.

WedeterminedmaterialityfortheCompanytobe£24.79million

(2021–£32.05million),whichis1%(2021–1%)ofshareholders’

funds.Webelievethatshareholders’fundsprovidesuswitha

materialityalignedtothekeymeasureoftheCompany’s

performance.

Performance Materiality

The application of materiality at the individual account or

balance level. It is set at an amount to reduce to an

appropriately low level the probability that the aggregate of

uncorrected and undetected misstatements exceeds materiality.

Onthebasisofourriskassessments,togetherwithour

assessmentoftheCompany’soverallcontrolenvironment,

ourjudgementwasthatperformancematerialitywas75%

(2021

–

75%)ofourplanningmateriality,namely£18.59m

(2021

–

£24.04m).Wehavesetperformancematerialityatthis

percentageduetoourexperienceinprioryearsofworkingwith

thekeyserviceprovidersthatindicatesalowerriskof

misstatements,bothcorrectedanduncorrected.

Giventheimportanceofthedistinctionbetweenrevenueand

capitalforinvestmenttrusts,wehaveappliedaseparatetesting

thresholdfortherevenuecolumnoftheIncomeStatementof

£1.24m(2021

–

£1.07m),beingourreportingthreshold.

Financial Report

42AnnualReport2022

Reporting Threshold

An amount below which identified misstatements are

considered as being clearly trivial.

WeagreedwiththeAuditCommitteethatwewouldreportto

themalluncorrectedauditdifferencesinexcessof£1.24m

(2021–£1.07m),whichissetat5%ofplanningmateriality,as

wellasdifferencesbelowthatthresholdthat,inourview,

warrantedreportingonqualitativegrounds.

Weevaluateanyuncorrectedmisstatementsagainstboththe

quantitativemeasuresofmaterialitydiscussedaboveandinlight

ofotherrelevantqualitativeconsiderationsinformingouropinion.

Other Information

Theotherinformationcomprisestheinformationincludedinthe

annualreportotherthanthefinancialstatementsandourauditor’s

reportthereon.TheDirectorsareresponsiblefortheother

informationcontainedwithintheannualreport.

Ouropiniononthefinancialstatementsdoesnotcovertheother

informationand,excepttotheextentotherwiseexplicitlystatedin

thisreport,wedonotexpressanyformofassuranceconclusion

thereon.

Ourresponsibilityistoreadtheotherinformationand,indoingso,

considerwhethertheotherinformationismateriallyinconsistent

withthefinancialstatementsorourknowledgeobtainedinthe

courseoftheauditorotherwiseappearstobematerially

misstated.Ifweidentifysuchmaterialinconsistenciesorapparent

materialmisstatements,wearerequiredtodeterminewhetherthis

givesrisetoamaterialmisstatementinthefinancialstatements

themselves.If,basedontheworkwehaveperformed,we

concludethatthereisamaterialmisstatementoftheother

information,wearerequiredtoreportthatfact.

Wehavenothingtoreportinthisregard.

Opinions on Other Matters Prescribed by the

Companies Act 2006

InouropinionthepartoftheDirectors’RemunerationReportto

beauditedhasbeenproperlypreparedinaccordancewiththe

CompaniesAct2006.

Inouropinion,basedontheworkundertakeninthecourseofthe

audit:

— theinformationgivenintheStrategicReportandtheDirectors’

Reportforthefinancialyearforwhichthefinancialstatements

arepreparedisconsistentwiththefinancialstatements;and

— theStrategicReportandDirectors’Reportshavebeen

preparedinaccordancewithapplicablelegalrequirements.

Matters on Which we are Required to Report by

Exception

InthelightoftheknowledgeandunderstandingoftheCompany

anditsenvironmentobtainedinthecourseoftheaudit,wehave

notidentifiedmaterialmisstatementsintheStrategicReportor

Directors’Report.

Wehavenothingtoreportinrespectofthefollowingmattersin

relationtowhichtheCompaniesAct2006requiresustoreportto

youif,inouropinion:

— adequateaccountingrecordshavenotbeenkept,orreturns

adequateforouraudithavenotbeenreceivedfrombranches

notvisitedbyus;or

— thefinancialstatementsandthepartoftheDirectors’

RemunerationReporttobeauditedarenotinagreementwith

theaccountingrecordsandreturns;or

— certaindisclosuresofDirectors’remunerationspecifiedbylaw

arenotmade;or

— wehavenotreceivedalltheinformationandexplanationswe

requireforouraudit.

Corporate Governance Statement

WehavereviewedtheDirectors’statementinrelationtogoing

concern,longer-termviabilityandthatpartoftheCorporate

GovernanceStatementrelatingtotheCompany’scompliance

withtheprovisionsoftheUKCorporateGovernanceCode

specifiedforourreviewbytheListingRules.

Basedontheworkundertakenaspartofouraudit,wehave

concludedthateachofthefollowingelementsoftheCorporate

GovernanceStatementismateriallyconsistentwiththefinancial

statementsorourknowledgeobtainedduringtheaudit:

— Directors’statementwithregardstotheappropriatenessof

adoptingthegoingconcernbasisofaccountingandany

materialuncertaintiesidentifiedsetoutonpage31;

— Directors’explanationastoitsassessmentoftheCompany’s

prospects,theperiodthisassessmentcoversandwhythe

periodisappropriatesetoutonpage20;

— Directors’statementonwhethertheyhaveareasonable

expectationthattheCompanywillbeabletocontinuein

operationandmeetsitsliabilitiessetoutonpage20;

— Directors’statementonfair,balancedandunderstandableset

outonpage37;

— Board’sconfirmationthatithascarriedoutarobust

assessmentoftheemergingandprincipalriskssetouton

pages19and20;

— Thesectionoftheannualreportthatdescribesthereviewof

effectivenessofriskmanagementandinternalcontrolsystems

setoutonpage30;and;

— Thesectiondescribingtheworkoftheauditcommitteeset

outonpages33and34.

Financial Report

The Monks Investment Trust PLC 43

Responsibilities of Directors

AsexplainedmorefullyintheDirectors’responsibilitiesstatement

setoutonpage37,theDirectorsareresponsibleforthe

preparationofthefinancialstatementsandforbeingsatisfiedthat

theygiveatrueandfairview,andforsuchinternalcontrolasthe

Directorsdetermineisnecessarytoenablethepreparationof

financialstatementsthatarefreefrommaterialmisstatement,

whetherduetofraudorerror.

Inpreparingthefinancialstatements,theDirectorsareresponsible

forassessingtheCompany’sabilitytocontinueasagoing

concern,disclosing,asapplicable,mattersrelatedtogoing

concernandusingthegoingconcernbasisofaccountingunless

theDirectorseitherintendtoliquidatetheCompanyortocease

operations,orhavenorealisticalternativebuttodoso.

Auditor’s Responsibilities for the Audit of the

Financial Statements

Ourobjectivesaretoobtainreasonableassuranceaboutwhether

thefinancialstatementsasawholearefreefrommaterial

misstatement,whetherduetofraudorerror,andtoissuean

auditor’sreportthatincludesouropinion.Reasonableassurance

isahighlevelofassurance,butisnotaguaranteethatanaudit

conductedinaccordancewithISAs(UK)willalwaysdetecta

materialmisstatementwhenitexists.Misstatementscanarise

fromfraudorerrorandareconsideredmaterialif,individuallyorin

theaggregate,theycouldreasonablybeexpectedtoinfluencethe

economicdecisionsofuserstakenonthebasisofthesefinancial

statements.

Explanation as to What Extent the Audit was

Considered Capable of Detecting Irregularities,

Including Fraud

Irregularities,includingfraud,areinstancesofnon-compliance

withlawsandregulations.Wedesignproceduresinlinewithour

responsibilities,outlinedabove,todetectirregularities,including

fraud.Theriskofnotdetectingamaterialmisstatementdueto

fraudishigherthantheriskofnotdetectingoneresultingfrom

error,asfraudmayinvolvedeliberateconcealmentby,for

example,forgeryorintentionalmisrepresentations,orthrough

collusion.Theextenttowhichourproceduresarecapableof

detectingirregularities,includingfraudisdetailedbelow.

However,theprimaryresponsibilityforthepreventionand

detectionoffraudrestswithboththosechargedwithgovernance

oftheCompanyandmanagement.

— Weobtainedanunderstandingofthelegalandregulatory

frameworksthatareapplicabletotheCompanyand

determinedthatthemostsignificantareUnitedKingdom

GenerallyAcceptedAccountingPractice,theCompaniesAct

2006,theListingRules,UKCorporateGovernanceCode,the

AssociationofInvestmentCompanies’CodeandStatement

ofRecommendedPractice,Section1158oftheCorporation

TaxAct2010andTheCompanies(MiscellaneousReporting)

Regulations2018.WeunderstoodhowtheCompanyis

complyingwiththoseframeworksthroughdiscussionswith

theAuditCommitteeandCompanySecretaryandreviewof

Boardminutes.

— WeassessedthesusceptibilityoftheCompany’sfinancial

statementstomaterialmisstatement,includinghowfraud

mightoccurbyconsideringthekeyrisksimpactingthe

financialstatements.Weidentifiedafraudriskwithrespectto

theincompleteorinaccuraterevenuerecognitionthrough

incorrectclassificationofspecialdividendsasrevenueor

capitalitemsintheIncomeStatement.Wealsoidentifieda

fraudriskwithrespecttotheincorrectvaluationofthe

unquotedandsuspendedinvestmentsandtheresultant

impactonunrealisedgains/(losses).Furtherdiscussionofour

approachissetoutinthesectiononkeyauditmattersabove

whichincludeourresponsetothefraudrisksandotherareas

ofauditfocus.

— Basedonthisunderstandingwedesignedouraudit

procedurestoidentifynon-compliancewithsuchlawsand

regulations.Ourproceduresinvolvedreviewofthereporting

totheDirectorswithrespecttotheapplicationofthe

documentedpoliciesandproceduresandreviewofthe

financialstatementstoensurecompliancewiththereporting

requirementsoftheCompany.

Afurtherdescriptionofourresponsibilitiesfortheauditofthe

financialstatementsislocatedontheFinancialReportingCouncil’s

websiteatfrc.org.uk/auditorsresponsibilities.Thisdescription

formspartofourauditor’sreport.

Other Matters we are Required to Address

— FollowingtherecommendationfromtheAuditCommittee,we

wereappointedbytheCompanyon2August2017toaudit

thefinancialstatementsfortheyearending30April2018and

subsequentfinancialperiods.Theperiodoftotaluninterrupted

engagementincludingpreviousrenewalsandreappointments

is5years,coveringtheyearsending30April2018to30April

2022.

— Theauditopinionisconsistentwiththeadditionalreporttothe

AuditCommittee.

Use of Our Report

ThisreportismadesolelytotheCompany’smembers,asabody,

inaccordancewithChapter3ofPart16oftheCompaniesAct

2006.Ourauditworkhasbeenundertakensothatwemight

statetotheCompany’smembersthosematterswearerequired

tostatetotheminanauditor’sreportandfornootherpurpose.

Tothefullestextentpermittedbylaw,wedonotacceptor

assumeresponsibilitytoanyoneotherthantheCompanyandthe

Company’smembersasabody,forourauditwork,forthisreport,

orfortheopinionswehaveformed.

CarolineMercer(Seniorstatutoryauditor)

forandonbehalfofErnst&YoungLLP,StatutoryAuditor

Edinburgh

20June2022

Financial Report

44AnnualReport2022

Income Statement

For the year ended 30 April

Notes

2022

Revenue

£’000

2022

Capital

£’000

2022

Total

£’000

2021

Revenue

£’000

2021

Capital

£’000

2021

Total

£’000

(Losses)/gainsoninvestments 9 – (631,829) (631,829) – 1,069,700 1,069,700

Currency(losses)/gains 14 – (308) (308) – 1,916 1,916

Income 2 27,811 – 27,811 22,529 – 22,529

Investmentmanagementfee 3 (10,465) – (10,465) (10,011) – (10,011)

Otheradministrativeexpenses 4 (1,888) – (1,888) (1,656) – (1,656)

Net return before finance costs

and taxation 15,458 (632,137) (616,679) 10,862 1,071,616 1,082,478

Financecostsofborrowings 5 (5,298) – (5,298) (5,027) – (5,027)

Net return on ordinary activities

before taxation 10,160 (632,137) (621,977) 5,835 1,071,616 1,077,451

Taxonordinaryactivities 6 (1,516) 293 (1,223) 1,966 (958) 1,008

Net return on ordinary activities

after taxation 8,644 (631,844) (623,200) 7,801 1,070,658 1,078,459

Net return per ordinary share 7 3.67p (268.58p) (264.91p) 3.42p 469.83p 473.25p

Note:

Dividendspersharepaidandpayable

inrespectoftheyear 8 2.35p 2.00p

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.

Theaccompanyingnotesonpages48to64areanintegralpartoftheFinancialStatements.

Financial Report

The Monks Investment Trust PLC 45

Balance Sheet

Theaccompanyingnotesonpages48to64areanintegralpartoftheFinancialStatements.

As at 30 April

Notes

2022

£’000

2022

£’000

2021

£’000

2021

£’000

Fixed assets

Investmentsheldatfairvaluethroughprofitorloss 9 2,662,015 3,238,130

Current assets

Debtors 10 8,072 3,936

Cashandcashequivalents 19 35,879 108,723

43,951 112,659

Creditors

Amountsfallingduewithinoneyear 11 (126,257) (5,063)

Net current (liabilities)/assets (82,306) 107,596

Total assets less current liabilities 2,579,709 3,345,726

Creditors and Provisions

Amountsfallingdueaftermorethanoneyear:

Debenturestock 12 – (39,940)

Loannotes 12 (99,853) (99,848)

Provisionfortaxliability 12 (692) (958)

(100,545) (140,746)

2,479,164 3,204,980

Capital and reserves

Sharecapital 13 11,823 11,823

Sharepremiumaccount 14 262,183 262,183

Capitalredemptionreserve 14 8,700 8,700

Capitalreserve 14 2,129,483 2,859,214

Revenue reserve 14 66,975 63,060

Shareholders’ funds 15 2,479,164 3,204,980

Shareholders’ funds per ordinary share 15 1,089.0p 1,355.4p

(borrowingsatbookvalue)

TheFinancialStatementsofTheMonksInvestmentTrustPLC(Companyregistrationnumber236964)onpages44to64wereapprovedand

authorisedforissuebytheBoardandweresignedon20June2022.

KSSternberg

Chairman

Financial Report

46AnnualReport2022

Statement of Changes in Equity

For the year ended 30 April 2022

Notes

capital

£’000

premium

account

£’000

Capital

redemption

reserve

£’000

Capital

reserve

£’000

Revenue

reserve

£’000

Shareholders’

funds

£’000

Shareholders’fundsat1May2021 11,823 262,183 8,700 2,859,214 63,060 3,204,980

Netreturnonordinaryactivitiesaftertaxation – – – (631,844) 8,644 (623,200)

Ordinarysharesboughtback 13 – – – (97,887) – (97,887)

Dividendspaidduringtheyear 8 – – – – (4,729) (4,729)

Shareholders’ funds at 30 April 2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164

Theaccompanyingnotesonpages48to64areanintegralpartoftheFinancialStatements.

For the year ended 30 April 2021

Notes

capital

£’000

premium

account

£’000

Capital

redemption

reserve

£’000

Capital

reserve

£’000

Revenue

reserve

£’000

Shareholders’

funds

£’000

Shareholders’fundsat1May2020 11,178 94,328 8,700 1,788,556 60,862 1,963,624

Netreturnonordinaryactivitiesaftertaxation – – – 1,070,658 7,801 1,078,459

Ordinarysharesissued 13 645 167,855 – – – 168,500

Dividendspaidduringtheyear 8 – – – – (5,603) (5,603)

Shareholders’ funds at 30 April 2021 11,823 262,183 8,700 2,859,214 63,060 3,204,980

Financial Report

The Monks Investment Trust PLC 47

Theaccompanyingnotesonpages48to64areanintegralpartoftheFinancialStatements.

Cash Flow Statement

For the year ended 30 April

Notes

2022

£’000

2022

£’000

2021

£’000

2021

£’000

Cash flows from operating activities

Netreturnonordinaryactivitiesbeforetaxation (621,977) 1,077,451

Netlosses/(gains)oninvestments 631,829 (1,069,700)

Currencylosses/(gains) 308 (1,916)

Financecostsofborrowings 5,298 5,027

Overseastaxincurred (1,586) (1,718)

Corporationtaxrefund – 3,664

Changesindebtorsandcreditors 452 1,650

Cash from operations

* 14,324 14,458

Interestpaid (4,991) (4,547)

Net cash inflow from operating activities 9,333 9,911

Cash flows from investing activities

Acquisitionsofinvestments (484,720) (573,161)

Disposalsofinvestments 424,157 490,209

Net cash outflow from investing activities (60,563) (82,952)

Cash flows from financing activities

Equitydividendspaid 8 (4,729) (5,603)

Ordinarysharesboughtback (91,577) –

Ordinarysharesissued – 169,924

Privateplacementdebtnotesissued – 99,844

Borrowingsrepaid – (99,596)

Borrowingsdrawndown 75,000 –

Net cash (outflow)/inflow from financing activities (21,306) 164,569

(Decrease)/increase in cash and cash equivalents (72,536) 91,528

Exchangemovements (308) (2,342)

Cashandcashequivalentsat1May 108,723 19,537

Cash and cash equivalents at 30 April 35,879 108,723

* Cashfromoperationsincludesdividendsreceivedof£28,165,000(2021–£22,668,000)andinterestreceivedof£1,000(2021–£365,000).

Financial Report

48AnnualReport2022

TheMonksInvestmentTrustPLC(‘theCompany’)isapublic

companylimitedbysharesandisincorporatedinEnglandand

Wales.TheCompanyisaninvestmentcompanywithinthemeaning

ofsection833oftheCompaniesAct2006andcarriesonbusiness

asaninvestmenttrust.

1 Principal Accounting Policies

TheFinancialStatementsfortheyearto30April2022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.

(a) Basis of Accounting

AlloftheCompany’soperationsareofacontinuingnatureandthe

FinancialStatementsarepreparedonagoingconcernbasisunder

thehistoricalcostconvention,modifiedtoincludetherevaluationof

fixedassetinvestmentsatfairvaluethroughprofitorloss,andon

theassumptionthatapprovalasaninvestmenttrustundersection

1158oftheCorporationTaxAct2010andtheInvestmentTrust

(ApprovedCompany)(Tax)Regulations2011willberetained.

The

Boardhas,inparticular,consideredtheimpactofheightened

marketvolatilityduringtheCovid-19pandemicandoverrecent

monthsowingtomacroeconomicandgeopoliticalconcerns,

includingtheRussia-Ukraineconflict,butdoesnotbelievethe

Company’sgoingconcernstatusisaffected.

 TheCompany’sassets,themajorityofwhichareinvestmentsin

quotedsecuritieswhicharereadilyrealisable(Level1),exceedits

liabilitiessignificantlyandcouldbesoldtorepayborrowingsif

required.AllborrowingsrequirethepriorapprovaloftheBoard.

Gearinglevelsandcompliancewithborrowingcovenantsare

reviewedbytheBoardonaregularbasis.Duringtheyear,the

Companysecureda£150millionthreeyearflexiblefacilitywith

NationalAustraliaBankLimited(‘NAB’)toreplacethe£100million

NABfacilityexpiring30November2021andtheupto£50million

Scotiabank(Ireland)facilityexpiring13March2022.TheBoardis

consideringthebestformofborrowingstoreplacetheCompany’s

£40milliondebenturestockmaturingon1March2023butis

confidentthatappropriatefinancingwillbesecured.Inthe

meantime,the£150millionNABfacilityhas£75millioncommitment

stillundrawn.

 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.TheCompany’sprimarythirdpartysuppliers,includingits

ManagersandSecretaries,CustodianandDepositary,Registrar,

AuditorandBroker,havenotexperiencedsignificantoperational

difficultiesaffectingtheirrespectiveservicestotheCompany,asa

resultoftheCovid-19pandemic.

 Accordingly,theFinancialStatementshavebeenpreparedonthe

goingconcernbasisasitistheDirectors’opinion,havingassessed

theprincipalandemergingrisksandothermattersincludingthe

impactoftheCovid-19pandemicsetoutintheViabilityStatement

onpage20,whichassessestheprospectsoftheCompanyovera

periodofthreeyears,thattheCompanywillcontinueinoperational

existencefortheperiodto31July2023,whichisaperiodofat

leasttwelvemonthsfromthedateofapprovaloftheseFinancial

Statements.

 TheFinancialStatementshavebeenpreparedinaccordancewith

theCompaniesAct2006,applicableUnitedKingdomAccounting

StandardsandwiththeAIC’sStatementofRecommended

Practice‘FinancialStatementsofInvestmentTrustCompaniesand

VentureCapitalTrusts’issuedinNovember2014andupdatedin

April2021withconsequentialamendments.

 InordertoreflectbettertheactivitiesoftheCompanyandin

accordancewithguidanceissuedbytheAIC,supplementary

informationwhichanalysestheprofitandlossaccountbetween

itemsofarevenueandcapitalnaturehasbeenpresentedinthe

IncomeStatement.

 InpreparingtheseFinancialStatementstheDirectorshave

consideredtheimpactofclimatechangeriskasaprincipalrisk

assetoutonpage19.InlinewithFRS102investmentsare

valuedatfairvalue,beingprimarilyquotedpricesforinvestments

inactivemarketsatthebalancesheetdate,andthereforereflect

marketparticipants’viewofclimatechangerisk.Unlisted

investments,valuedbyreferencetocomparablecompanies

(see1(d)below),similarlyreflectmarketparticipants’viewof

climatechangerisk.

 TheDirectorsconsidertheCompany’sfunctionalcurrencyto

besterlingastheCompany’sshareholdersarepredominantly

basedintheUK,theCompanyissubjecttotheUK’sregulatory

environmentanditisthecurrencyinwhichitsdividendsand

expensesaregenerallypaid.

(b) Financial Instruments

Financialassetsandfinancialliabilitiesarerecognisedinthe

Company’sBalanceSheetwhenitbecomesapartytothe

contractualprovisionsoftheinstrument.

ThepreparationoftheFinancialStatementsrequirestheuse

ofestimates,assumptionsandjudgements.Theseestimates,

assumptionsandjudgementsaffectthereportedamountsof

assetsandliabilities,atthereportingdate.Whileestimatesare

basedonbestjudgementusinginformationandfinancialdata

available,theactualoutcomemaydifferfromtheseestimates.

Thekeysourcesofestimationanduncertaintyrelatetothefair

valueoftheunlistedinvestments.

Estimates

 ThekeyestimateintheFinancialStatementsisthedetermination

ofthefairvalueoftheunlistedinvestmentsbytheManagersfor

considerationbytheDirectors.Thisestimateiskeyasit

significantlyimpactsthevaluationoftheunlistedinvestmentsat

theBalanceSheetdate.Thefairvaluationprocessinvolves

estimationusingsubjectiveinputsthatareunobservable(for

whichmarketdataisunavailable).Themainestimatesinvolvedin

theselectionofthevaluationprocessinputsare:

(i) theselectionofappropriatecomparablecompaniesinorder

toderiverevenuemultiplesandmeaningfulrelationships

betweenenterprisevalue,revenueandearningsgrowth.

Comparablecompaniesarechosenonthebasisoftheir

businesscharacteristicsandgrowthpatterns;

(ii) theselectionofarevenuemetric(eitherhistoricalorforecast);

(iii) theapplicationofanappropriatediscountfactortoreflectthe

reducedliquidityofunlistedcompaniesversustheirlisted

peers;

(iv) theestimationoftheprobabilityassignedtoanexitbeing

throughaninitialpublicoffering(‘IPO’)oracompanysale;

(v) theselectionofanappropriateindustrybenchmarkindex

toassistwiththevaluationvalidationortheapplicationof

valuationadjustments,particularlyintheabsenceof

establishedearningsorcloselycomparablepeers;and

(vi) thecalculationofvaluationadjustmentsderivedfrom

milestoneanalysis(i.e.incorporatingoperationalsuccess

againsttheplan/forecastsofthebusinessintothevaluation).

Notes to the Financial Statements

Financial Report

The Monks Investment Trust PLC 49

 Fairvalueestimatesarecross-checkedtoalternativeestimation

methodswherepossibletoimprovetherobustnessofthe

estimates.Asthevaluationoutcomesmaydifferfromthefair

valueestimatesapricesensitivityanalysisisprovidedinOther

PriceRiskSensitivityinnote19onpages60to62toillustratethe

effectontheFinancialStatementsofanoverorunderestimation

offairvalues.Theriskofanoverorunderestimationoffairvalues

isgreaterwhenmethodologiesareappliedusingmoresubjective

inputs.

Assumptions

ThedeterminationoffairvaluebytheManagersinvolveskey

assumptionsdependentuponthevaluationtechniqueused.As

explainedin1(d)below,theprimarytechniqueappliedunderthe

IPEVGuidelinesistheMultiplesapproach.WheretheMultiples

approachisusedthevaluationprocessrecognisesalso,asstated

intheIPEVGuidelines,thatthepriceofarecentinvestmentmay

beanappropriatecalibrationforestimatingfairvalue.The

Multiplesapproachinvolvessubjectiveinputsandtherefore

presentsagreaterriskofoverorunderestimationandparticularly

intheabsenceofarecenttransaction.

 ThekeyassumptionsfortheMultiplesapproacharethatthe

selectionofcomparablecompaniesprovidesareasonablebasis

foridentifyingrelationshipsbetweenenterprisevalue,revenueand

growthtoapplyinthedeterminationoffairvalue.Other

assumptionsinclude:

(i) thediscountappliedforreducedliquidityversuslistedpeers;

(ii) theprobabilitiesassignedtoanexitbeingthrougheitheran

IPOoracompanysale;and

(iii)thattheapplicationofmilestoneanalysisandindustry

benchmarkindicesareareasonablebasisforapplying

appropriateadjustmentstothevaluations.Valuationsare

cross-checkedforreasonablenesstoalternativeMultiples-

basedapproachesorbenchmarkindexmovementsas

appropriate.

Judgements

TheDirectorsconsiderthatthepreparationoftheFinancial

Statementsinvolvesthefollowingkeyjudgements:

(i) thedeterminationofthefunctionalcurrencyoftheCompany

assterling(seerationalein1(a)above);and

(ii) thefairvaluationoftheunlistedinvestments.

 Thekeyjudgementsinthefairvaluationprocessare:

(i) theManagers’determinationoftheappropriateapplicationof

theInternationalPrivateEquityandVentureCapitalValuation

(‘IPEV’)Guidelines2018toeachunlistedinvestment;and

(ii) theDirectors’considerationofwhethereachfairvalueis

appropriatefollowingdetailedreviewandchallenge.The

judgementappliedintheselectionofthemethodologyused

(see1(d)below)fordeterminingthefairvalueofeachunlisted

investmentcanhaveasignificantimpactuponthevaluation.

(d) Investments

TheCompany’sinvestmentsareclassified,recognisedand

measuredatfairvaluethroughprofitandlossinaccordancewith

sections11and12ofFRS102.Investmentpurchasesandsales

arerecognisedonatradedatebasis.Investmentsareinitially

measuredatfairvalue,whichistakentobetheircostexcluding

expensesincidentaltopurchaseswhichareexpensedtocapital

onacquisition.Gainsandlossesoninvestments,includingthose

arisingfromforeigncurrencyexchangedifferencesandexpenses

incidentaltothepurchaseandsaleofinvestments,are

recognisedintheIncomeStatementascapitalitems.

 Thefairvalueoflistedinvestmentsiseitherthebidpriceorthe

lasttradedpricedependingontheconventionoftheexchange

onwhichtheinvestmentislisted.Thefairvalueofsuspended

investmentsisthelasttradedprice,adjustedfortheestimated

impactonthebusinessofthesuspension.

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

2018(‘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:

— Multiples;

— IndustryValuationBenchmarks;and

— 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:

— attheyearendandhalfyearendoftheCompany;and

— wherethereisanindicationofachangeinfairvalueas

definedintheIPEVguidelines(commonlyreferredtoas

‘trigger’events).

Financial Report

50AnnualReport2022

(e) Cash and Cash Equivalents

 Cashequivalentscompriseshort-termhighlyliquidinvestments

thatarereadilyconvertibletoknownamountsofcashandare

subjecttoaninsignificantriskofchangesinvalue.

(f) Income

(i) Incomefromequityinvestmentsisbroughtintoaccounton

thedateonwhichtheinvestmentsarequotedex-dividendor,

wherenoex-dividenddateisquoted,whentheCompany’s

righttoreceivepaymentisestablished.Equityinvestment

incomeincludesdistributionsfromCollectiveInvestment

Schemes,otherthanthosethatrelatetoequalisationwhich

aretreatedascapitalitems.Specialdividendsaretreatedas

revenueorcapitalitemsdependingonthefactsofeach

particularcase.

 Ifscripistakeninlieuofdividendsincash,thenetamount

ofthecashdividenddeclarediscreditedtotherevenue

account.Anyexcessinthevalueofthesharesreceivedover

theamountofthecashdividendforegoneisrecognisedas

capital.

(ii) Interestfromfixedinterestsecuritiesisrecognisedonan

effectiveyieldbasis.

(iii) Unfrankedinvestmentincomeandoverseasdividends

includethetaxesdeductedatsource.

(iv) Interestreceivableondepositsisrecognisedonanaccruals

basis.

(g) Expenses

Allexpensesareaccountedforonanaccrualsbasisandare

chargedtotherevenueaccountexceptwhere:(i)theyrelateto

expensesincidentaltothepurchaseorsaleofinvestments

(transactioncosts)whicharechargedtocapital.Transactioncosts

aredetailedinnote

onpage54;or(ii)theyrelatedirectlytothe

buy-back/issuanceofshares,inwhichcasetheyareaddedtothe

buy-backcostordeductedfromtheshareissuanceproceeds.

(h) Borrowings and Finance Costs

 Borrowings,whichcompriseinterestbearingbankloans,loan

notesanddebenturesarerecognisedinitiallyatthefairvalueof

theconsiderationreceived,netofanyissueexpenses,and

subsequentlyatamortisedcostusingtheeffectiveinterestrate

method.Thefinancecostsofsuchborrowingsareaccounted

foronanaccrualsbasisusingtheeffectiveinterestratemethod

andareallocatedtorevenueintheIncomeStatement.

(i) Taxation

 Thetaxationchargerepresentsthesumofcurrenttaxandthe

movementintheprovisionfordeferredtaxationduringtheyear.

Currenttaxationrepresentsnon-recoverableoverseastaxes

whichischargedtotherevenueaccountswhereitrelatesto

incomereceivedandtocapitalwhereitrelatestoitemsofa

capitalnature.Deferredtaxationisprovidedonalltiming

differenceswhichhaveoriginatedbutnotreversedbytheBalance

Sheetdate,calculatedonanon-discountedbasisatthetaxrates

expectedtoapplywhenthetimingdifferencesreverse,basedon

whathasbeenenactedorsubstantivelyenacted,relevanttothe

benefitorliability.Deferredtaxassetsarerecognisedonlytothe

extentthatitismorelikelythannotthattherewillbetaxable

profitsfromwhichunderlyingtimingdifferencescanbededucted.

(j) Dividend Distributions

 Whererelevant,interimdividendsarerecognisedintheperiodin

whichtheyarepaid.Finaldividendsarerecognisedintheperiod

inwhichthedividendsareapprovedbytheCompany’s

shareholders.

(k) Foreign Currencies

 Transactionsinvolvingforeigncurrenciesareconvertedattherate

rulingatthetimeofthetransaction.Monetaryassetsandliabilities

andfixedassetinvestmentinforeigncurrenciesaretranslated

attheclosingratesofexchangeattheBalanceSheetdate.

Anygainorlossarisingfromachangeinexchangerate

subsequenttothedateofthetransactionisincludedasan

exchangegainorlossintheIncomeStatementascapitalor

revenueasappropriate.

(l) Share Premium Account

Thebalanceclassifiedassharepremiumrepresents:

—theexcessoftheproceedsofissuanceofnewsharesover

thenominalvalue;and

—theproceedsofsalesofsharesheldintreasuryinexcessof

theweightedaveragepricepaidbytheCompanyto

repurchasetheshares.

(m) Capital Redemption Reserve

 Thenominalvalueofordinarysharecapitalrepurchasedand

cancelledistransferredoutofthecalled-upsharecapitalandinto

thecapitalredemptionreserve.

(n) Capital Reserve

 Gainsandlossesonrealisationofinvestments,changesinthe

fairvalueofinvestmentsheldandexchangedifferencesofa

capitalnaturearedealtwithinthisreserve.Purchasesofthe

Company’sownsharesarealsofundedfromthisreserve.The

salesproceedsoftreasurysharesreissuedaretreatedasa

realisedprofituptotheamountoftheweightedaveragepurchase

priceofthosesharesandtransferredtothecapitalreserve.

(o) Revenue Reserve

 Therevenueprofitorlossfortheyearistakentoorfromthis

reserve.Therevenuereservemaybedistributedbywayofa

dividend.

(p) Single Segment Reporting

 TheCompanyisengagedinasinglesegmentofbusiness,

beingthatofaninvestmenttrustcompany,consequently

nobusinesssegmentalanalysisisprovided.

Financial Report

The Monks Investment Trust PLC 51

2 Income

2022

£’000

2021

£’000

Income from investments

UKdividends 10,519 4,785

Overseasdividends 17,291 17,379

Other Income 27,810 22,164

DepositInterest 1 365

Total Income 27,811 22,529

Total income comprises:

Dividendsfromfinancialassetsdesignatedatfairvaluethroughprofitorloss 27,810 22,164

Interestfromfinancialassetsnotatfairvaluethroughprofitorloss 1 365

27,811 22,529

Specialdividendentitlementsarisingintheyearamountedto£2,526,000(2021–£1,096,000)with£2,393,000(2021–£1,096,000)

classifiedasrevenueand£133,000(2021–nil)classifiedascapital.

3 Investment Management Fee

2022

£’000

2021

£’000

Investmentmanagementfee 10,465 10,011

DetailsoftheInvestmentManagementAgreementaredisclosedonpage24.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holdings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 Other Administrative Expenses

2022

£’000

2021

£’000

Generaladministrativeexpenses 1,658 1,407

Directors’fees(seeDirectors’RemunerationReportonpage35) 179 206

Auditor’sremuneration–statutoryauditofannualFinancialStatements

* 50 42

Auditor’snon-auditremuneration–non-auditservices(seepage33) 1 1

1,888 1,656

*IrrecoverableVATonauditfeesisincludedwithingeneraladministrativeexpenses.

5 Finance Costs of Borrowings

2022

£’000

2021

£’000

Bankloans 886 1,113

Debenturestocks 2,583 2,583

Loannotes 1,829 1,331

5,298 5,027

Financial Report

52AnnualReport2022

6 Tax on Ordinary Activities

2022

Revenue

£’000

2022

Capital

£’000

2022

Total

£’000

2021

Revenue

£’000

2021

Capital

£’000

2021

Total

£’000

Overseastaxation 1,516 – 1,516 1,698 – 1,698

UKcorporationtaxrefunded – – – (3,664) – (3,664)

Indiancapitalgainstaxpaidandprovidedfor – (293) (293) – 958 958

1,516 (293) 1,223 (1,966) 958 (1,008)

2022

£’000

2021

£’000

Thetaxchargefortheyearishigher(2021–lower)thanthestandardrateofcorporationtax

 intheUKof19%(2021–19%).Thedifferencesareexplainedbelow:

Netreturnbeforetaxation (621,977) 1,077,451

Netreturnbeforetaxationmultipliedbytheaveragestandardrateofcorporationtax

 intheUKof19%(2021–19%) (118,176) 204,716

Capitalreturnsnottaxable 120,106 (203,607)

Incomenottaxable (5,067) (3,927)

Taxableexpensesintheyearnotutilised 3,137 2,818

Overseastax 1,516 1,698

Corporationtaxrefundinrespectofprioryears – (3,664)

Revenuetaxchargefortheyear 1,516 (1,966)

(Decrease)/increaseinprovisionfortaxliabilityinrespectofIndiancapitalgains (266) 958

RefundofIndiantaxinrespectofpriorperiods (27) –

Capitaltaxchargefortheyear (293) 958

Totaltaxchargefortheyear 1,223 (1,008)

Asaninvestmenttrust,theCompany’scapitalgainsarenottaxableintheUnitedKingdom.

Therevenuetaxchargefortheyearto30April2021includes£3,664,000UKcorporationtaxrepaidinrespectoftheCompany’sfinancial

yearsto2008,2009and2010,followingsuccessfullegalactionregardingthetaxtreatmentofoverseasdividendincome.Thisamounthad

notpreviouslybeenprovidedfor,asrecoverywasnotconsideredsufficientlyprobable.Itwasthereforerecognisedonreceipt.Asit

exceededtheoverseaswithholdingtaxsufferedintheperiod,thisresultedinapositiverevenuetaxcharge.

Interestonthecorporationtaxrepaymentwasincludedwithininterestincome.

ThecapitaltaxchargeresultsfromthemovementintheprovisionfortaxliabilityinrespectofIndiancapitalgainstaxasdetailedinnote12.

Factors that may Affect Future Tax Charges

At30April2022theCompanyhadsurplusmanagementexpensesandlossesonnon-tradingloanrelationshipsof£108,019,000(2021–

£94,683,000)whichhavenotbeenrecognisedasadeferredtaxasset.ThisisbecausetheCompanyisnotexpectedtogeneratetaxable

incomeinafutureperiodinexcessofthedeductibleexpensesofthatfutureperiodand,accordingly,itisunlikelythattheCompanywillbe

abletoreducefuturetaxliabilitiesthroughtheuseofexistingsurplusexpenses.

Financial Report

The Monks Investment Trust PLC 53

7 Net Return per Ordinary Share

2022

Revenue

2022

Capital

2022

Total

2021

Revenue

2021

Capital

2021

Total

Netreturnperordinaryshare 3.67p (268.58p) (264.91p) 3.42p 469.83p 473.25p

Revenuereturnperordinaryshareisbasedonthenetrevenuereturnonordinaryactivitiesaftertaxationof£8,644,000(2021–£7,801,000)

andon235,252,716(2021–227,881,626)ordinarysharesof5p,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£631,844,000(2021–gainof£1,070,658,000)and

on235,252,716(2021–227,881,626)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.

8 Ordinary Dividends

2022 2021 2022

£’000

2021

£’000

Amounts recognised as distributions in the year:

Previousyear’sfinal(paid7September2021) 2.00p 2.50p 4,729 5,603

Wealsosetoutbelow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

£8,644,000(2021–£7,801,000).

2022 2021 2022

£’000

2021

£’000

Amounts paid and payable in respect of the financial year:

Proposedfinal(payable9September2022) 2.35p 2.00p 5,350 4,729

9 Fixed Assets – Investments

As at 30 April 2022

Level 1

£’000

Level 2

£’000

Level 3

£’000

Total

£’000

Listedandsuspendedequities 2,479,464 120,306 5,636 2,605,406

Unlistedequities – – 56,609 56,609

Totalfinancialassetinvestments 2,479,464 120,306 62,245 2,662,015

As at 30 April 2021

Level 1

£’000

Level 2

£’000

Level 3

£’000

Total

£’000

Listedandsuspendedequities 3,039,527 129,609 – 3,169,136

Unlistedequities – – 68,994 68,994

Totalfinancialassetinvestments 3,039,527 129,609 68,994 3,238,130

 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.Duringtheyear,anunlistedinvestment(GRAIL)wasacquiredbyalisted

entity(Illumina),resultinginatransferof£6,429,000bookcost(£10,329,000fairvalue)fromLevel3toLevel1.Level2investmentscomprise

theordinaryandCshareholdingsinTheSchiehallionFund.ThesuspendedinvestmentinBrillianceChinaAutomotivewasmovedfrom

Level2toLevel3intheyear.SuspendedinvestmentsinSberbankofRussiaandVKCompanyhavebeenvaluedatnil.

Financial Report

54AnnualReport2022

9 Fixed Assets – Investments (continued)

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).

 ThevaluationtechniquesusedbytheCompanyareexplainedintheaccountingpoliciesonpage49.Asensitivityanalysisbyvaluation

techniqueoftheunlistedsecuritiesisgivenonpage61.

2022

Listed

securities

£’000

2022

Unlisted

securities *

£’000

2022

Total

securities

£’000

2021

Total

securities

£’000

Costofinvestmentsatstartofyear 1,684,937 54,195 1,739,132 1,445,130

Investmentholdinggainsatstartofyear 1,484,199 14,799 1,498,998 643,697

Valueofinvestmentsatstartofyear 3,169,136 68,994 3,238,130 2,088,827

Movementsinyear:

Purchasesatcost 481,752 2,860 484,612 568,212

Salesproceedsreceived (428,898) – (428,898) (488,609)

(Losses)/gainsoninvestments (623,013) (8,816) (631,829) 1,069,700

Changeinlisting 6,429 (6,429) – –

Valueofinvestmentsatendofyear 2,605,406 56,609 2,662,015 3,238,130

Costofinvestmentsatendofyear 1,888,016 50,626 1,938,642

1,739,132

Investmentholdinggainsatendofyear 717,390 5,983 723,373 1,498,998

Valueofinvestmentsatendofyear 2,605,406 56,609 2,662,015 3,238,130

*Includesholdingsinordinarysharesandpreferenceshares.

 Thepurchasesandsalesproceedsfiguresaboveincludetransactioncostsof£374,000(2021–£714,000)and£173,000(2021–£192,000)

respectively.TheCompanyreceived£428,898,000(2021–£488,609,000)frominvestmentssoldduringtheyear.Thebookcostofthese

investmentswhentheywerepurchasedwas£285,102,000(2021–£274,210,000).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.Oftherealisedgainsonsalesof

investmentsduringtheyearof£143,796,000(2021–gainsonsalesof£214,399,000),anetgainof£238,816,000(2021–gainof

£117,824,000)wasincludedininvestmentholdinggainsatthepreviousyearend.

2022

£’000

2021

£’000

Net (losses)/gains on investments:

Realisedgainsonsales 143,796 214,399

Changesininvestmentholdinggains (775,625) 855,301

(631,829) 1,069,700

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:

2022

held

2022

Value

£’000

2022

% of Shares

held

2021

held

2021

Value

£’000

2021

% of Shares

held

SilkInvestAfricaFoodFund 10,000 4,958 42.6 10,000 6,065 42.6

Financial Report

The Monks Investment Trust PLC 55

10 Debtors

2022

£’000

2021

£’000

Amounts falling due within one year:

Accruedincome 2,461 2,719

Investmentsalesawaitingsettlement 4,741 –

Shareissuanceproceedsawaitingsettlement 60 60

Overseastaxationrecoverable 655 1,032

Otherdebtorsandprepaidexpenses 155 125

8,072 3,936

Noneoftheabovedebtorsarefinancialassetsheldatfairvaluethroughprofitorloss.Thecarryingamountofdebtorsisareasonable

approximationoffairvalue.

11 Creditors – Amounts falling due within one year

2022

£’000

2021

£’000

NationalAustraliaBankLimitedloan 75,000 –

£40million6

%debenturestock2023 39,973 –

Investmentpurchasesawaitingsettlement 833 941

Sharebuybacksawaitingsettlement 6,310 –

Corporationtax 45 45

Othercreditorsandaccruals 4,096 4,077

126,257 5,063

Noneoftheabovecreditorsarefinancialliabilitiesheldatfairvaluethroughprofitorloss.Includedinothercreditorsis£2,286,000

(2021–£2,771,000)inrespectoftheinvestmentmanagementfee.

Borrowing Facilities

At30April2022theCompanyhada3year£150millionunsecuredfloatingraterevolvingfacilitywithNationalAustraliaBankLimited,which

expireson29November2024.

At30April2022drawingswereasfollows:

— NationalAustraliaBankLimited:£75millionataninterestrateof1.4%overSONIA,being£50millionmaturinginAugust2022and

£25millionmaturinginSeptember2022(2021–nil).

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2022(2021

–

none).

Financial Report

56AnnualReport2022

12 Creditors and Provisions – Amounts falling due after more than one year

Repayment

date

Nominal

rate

Effective

rate

2022

£’000

2021

£’000

£40million6

%debenturestock2023 1/3/2023 6.375% 6.5% – 39,940

£60million1.86%SeriesAnotes2054 7/8/2054 1.86% 1.86% 59,901 59,898

£40million1.77%SeriesBnotes2045 7/8/2045 1.77% 1.77% 39,952 39,950

99,853 139,788

ProvisionfortaxliabilityinrespectofIndiancapitalgainstax 692 958

100,545 140,746

Debenture Stock

Thedebenturestockisstatedatamortisedcost(seenote1(h)onpage50);thecumulativeeffectistodecreasethecarryingamount

ofborrowingsby£27,000(2021–£60,000).ThedebenturestockissecuredbyafloatingchargeovertheassetsoftheCompany.

UnderthetermsoftheDebentureAgreement,totalborrowingsshouldnotexceednetassetsandtheCompanycannotundertake

sharebuy-backsifthiswouldresultintotalborrowingsexceeding66.67%.

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£147,000(2021–£152,000).

Provision for Tax Liability

Thetaxliabilityprovisionat30April2022of£692,000(30April2021–£958,000)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.

13 Share Capital

2022

Number

2022

£’000

2021

Number

2021

£’000

Allotted,calledupandfullypaidordinarysharesof5peach 227,645,309 11,382 236,453,859 11,823

Treasurysharesof5peach 8,808,550 441 – –

Total 236,453,859 11,823 236,453,859 11,823

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2022,8,808,550shareswithanominalvalue

of£441,000wereboughtbackatatotalcostof£97,887,000tobeheldintreasury(2021–12,900,000ordinaryshareswereissuedata

nominalvalueof£645,000,raisingnetproceedsof£168,500,000).Noshareswereissuedduringtheyearandat30April2022,8,808,550

shareswereheldintreasury.At30April2022theCompanyhadauthoritytobuyback26,635,883ordinarysharesandtoallotorsellfrom

treasury23,645,385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2022to16June2022theCompanyboughtbackafurther

2,837,722shareswithanominalvalueof£142,000attotalcostof£27,412,000tobeheldintreasury.At16June202211,646,272shares

wereheldintreasuryandtheCompanyhadauthorityremainingtobuybackafurther23,798,161ordinaryshares.

Financial Report

The Monks Investment Trust PLC 57

14 Capital and Reserves

capital

£’000

premium

account

£’000

Capital

redemption

reserve

£’000

Capital

reserve

£’000

Revenue

reserve

£’000

Shareholders’

funds

£’000

At1May2021 11,823 262,183 8,700 2,859,214 63,060 3,204,980

Gainsoninvestments – – – (631,829) – (631,829)

Otherexchangedifferences – – – (308) – (308)

MovementinprovisionfortaxonIndian

 notionalcapitalgains – – – 293 – 293

Revenuereturnonordinaryactivities

 aftertaxation – – – – 8,644 8,644

Ordinarysharesboughtback – – – (97,887) – (97,887)

Dividendspaidintheyear – – – – (4,729) (4,729)

At30April2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164

capital

£’000

premium

account

£’000

Capital

redemption

reserve

£’000

Capital

reserve

£’000

Revenue

reserve

£’000

Shareholders’

funds

£’000

At1May2020 11,178 94,328 8,700 1,788,556 60,862 1,963,624

Gainsoninvestments – – – 1,069,700 – 1,069,700

Exchangedifferencesonbankloans – – – 4,258 – 4,258

Otherexchangedifferences – – – (2,342) – (2,342)

MovementinprovisionfortaxonIndian

 notionalcapitalgains – – – (958) – (958)

Revenuereturnonordinaryactivities

 aftertaxation – – – – 7,801 7,801

Ordinarysharesissued 645 167,855 – – – 168,500

Dividendspaidintheyear – – – – (5,603) (5,603)

At30April2021 11,823 262,183 8,700 2,859,214 63,060 3,204,980

Thecapitalreservebalanceat30April2022includesinvestmentholdinggainsoninvestmentsof£723,373,000(2021–gainsof

£1,498,988,000)asdetailedinnote9onpage54.Therevenuereserveisdistributablebywayofdividend.

15 Shareholders’ Funds Per Ordinary Share

2022 2021

Shareholders’funds £2,479,164,000 £3,204,980,000

Numberofordinarysharesinissueattheyearend 227,645,309 236,453,859

Shareholders’fundsperordinaryshare 1,089.0p 1,355.4p

Theshareholders’fundsfiguresabovehavebeencalculatedafterdeductingborrowingsatbookvalue,inaccordancewiththeprovisions

ofFRS102.Thenetassetvaluefigureshavebeencalculatedafterdeductingborrowingsateitherparvalueorfairvalue.Reconciliations

betweenshareholders’fundsandbothNAVmeasuresareshownintheGlossaryofTermsandAlternativePerformanceMeasuresonpages

74to76.

Financial Report

58AnnualReport2022

16 Analysis of Change in Net Debt

At 1 May

2021

£’000

Cash flows

£’000

Other

non-cash

changes

£’000

Exchange

movement

£’000

At 30 April

2022

£’000

Cashatbankandinhand 108,723 (72,536) – (308) 35,879

Loansduewithinoneyear – (75,000) – – (75,000)

Debenturestocks (39,940) – (33) – (39,973)

Loannotes (99,848) – (5) – (99,853)

(31,065) (147,536) (38) (308) (178,947)

At 1 May

2020

£’000

Cash flows

£’000

Other

non-cash

changes

£’000

Exchange

movement

£’000

At 30 April

2021

£’000

Cashatbankandinhand 19,537 91,528 – (2,342) 108,723

Loansduewithinoneyear (103,854) 99,596 – 4,258 –

Debenturestocks (39,908) – (32) – (39,940)

Loannotes – (99,844) (4) – (99,848)

(124,225) 91,280 (36) 1,916 (31,065)

17 Contingent Liabilities, Guarantees and Financial Commitments

 At30April2022and30April2021theCompanyhadnocontingentliabilities,guaranteesorfinancialcommitments.

18 Transactions with Related Parties and the Managers and Secretaries

 TheDirectors’feesandshareholdingsaredetailedintheDirectors’RemunerationReportonpages35and36.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.

 BaillieGifford&CoLimitedhasbeenappointedastheCompany’sAlternativeInvestmentFundManager(‘AIFM’)andCompanySecretaries.

DetailsofthetermsoftheInvestmentManagementAgreementaresetoutonpage24anddetailsofthefeesduringtheyearandthe

balancesoutstandingattheyearendareshowninnotes3and11respectively.

19 Financial Instruments

Asaninvestmenttrust,theCompanyinvestsinequitiesandmakesotherinvestmentssoastosecureitsinvestmentobjectiveofcapital

growth.TheCompanyborrowsmoneywhentheBoardandinvestmentmanagershavesufficientconvictionthattheassetsfundedby

borrowedmonieswillgenerateareturninexcessofthecostofborrowing.Inpursuingitsinvestmentobjective,theCompanyisexposedto

avarietyofrisksthatcauseshorttermvariationintheCompany’snetassetsandcouldresultineitherareductionintheCompany’snet

assetsorareductionintheprofitsavailablefordividend.

 Theserisksarecategorisedhereasmarketrisk(comprisingcurrencyrisk,interestrateriskandotherpricerisk),liquidityriskandcreditrisk.

TheBoardmonitorscloselytheCompany’sexposurestotheserisksbutdoessoinordertoreducethelikelihoodofapermanentreduction

intheCompany’snetassetsratherthantominimisetheshorttermvolatility.

 Theriskmanagementpoliciesandproceduresoutlinedinthisnotehavenotchangedsubstantiallyfromthepreviousaccountingperiod.

Market Risk

ThefairvalueorfuturecashflowsofafinancialinstrumentorotherinvestmentheldbytheCompanymayfluctuatebecauseofchangesin

marketprices.Thismarketriskcomprisesthreeelements–currencyrisk,interestrateriskandotherpricerisk.TheBoardreviewsand

agreespoliciesformanagingtheserisksandtheCompany’sinvestmentmanagersbothassesstheexposuretomarketriskwhenmaking

individualinvestmentdecisionsandmonitortheoveralllevelofmarketriskacrosstheinvestmentportfolioonanongoingbasis.

 DetailsoftheCompany’sinvestmentportfolioareshowninnote9.

Financial Report

The Monks Investment Trust PLC 59

19 Financial Instruments (continued)

Currency Risk

CertainoftheCompany’sassets,liabilitiesandincomearedenominatedincurrenciesotherthansterling(theCompany’sfunctionalcurrency

andthatinwhichitreportsitsresults).Consequently,movementsinexchangeratesmayaffectthesterlingvalueofthoseitems.

 TheinvestmentmanagersmonitortheCompany’sexposuretoforeigncurrenciesandreporttotheBoardonaregularbasis.TheInvestment

ManagerassessestherisktotheCompanyoftheforeigncurrencyexposurebyconsideringtheeffectontheCompany’snetassetvalue

andincomeofamovementintheratesofexchangetowhichtheCompany’sassets,liabilities,incomeandexpensesareexposed.

However,thecurrencyinwhichacompany’ssharepriceisquotedisnotnecessarilytheoneinwhichitearnsitsprofits.

 Themovementinexchangeratesonoverseasearningsmayhaveamoresignificantimpactuponacompany’svaluationthanasimple

translationofthecurrencyinwhichthesharepriceofthecompanyisquoted.

 ForeigncurrencyborrowingscanlimittheCompany’sexposuretoanticipatedfuturechangesinexchangerateswhichmightotherwise

adverselyaffectthevalueoftheportfolioofinvestments.

 Exposuretocurrencyriskthroughassetallocation,whichiscalculatedbyreferencetothecurrencyinwhichtheassetorliabilityisquoted,

isshownbelow.

At 30 April 2022

Investments

£’000

Cash and

cash

equivalents

£’000

Loans, loan

notes and

debentures

£’000

Other debtors

and creditors *

£’000

Net

exposure

£’000

USdollar 1,756,724 – – 162 1,756,886

Euro 233,942 – – 1,845 235,787

Japaneseyen 121,500 – – 574 122,074

Otheroverseascurrencies 344,848 4,602 – 4,012 353,462

Totalexposuretocurrencyrisk 2,457,014 4,602 – 6,593 2,468,209

Sterling 205,001 31,277 (214,826) (10,497) 10,955

2,662,015 35,879 (214,826) (3,904) 2,479,164

*Includesnon-monetaryassetsof£155,000.

At 30 April 2021

Investments

£’000

Cash and

cash

equivalents

£’000

Loans, loan

notes and

debentures

£’000

Other debtors

and creditors *

£’000

Net

exposure

£’000

USdollar 2,118,184 438 – 122 2,118,744

Euro 203,677 – – 1,032 204,709

Japaneseyen 206,572 – – 699 207,271

Otheroverseascurrencies 452,759 4,686 – 957 458,402

Totalexposuretocurrencyrisk 2,981,192 5,124 – 2,810 2,989,126

Sterling 256,938 103,599 (139,788) (4,895) 215,854

3,238,130 108,723 (139,788) (2,085) 3,204,980

*Includesnon-monetaryassetsof£76,000.

Currency Risk Sensitivity

At30April2022,ifsterlinghadstrengthenedby5%inrelationtoallcurrencies,withallothervariablesheldconstant,totalnetassetsand

totalreturnonordinaryactivitieswouldhavedecreasedbytheamountsshownbelow.A5%weakeningofsterlingagainstallcurrencies,

withallothervariablesheldconstant,wouldhavehadanequalbutoppositeeffectontheFinancialStatementamounts.Theanalysisis

performedonthesamebasisfor2021.

2022

£’000

2021

£’000

USdollar 87,844 105,937

Euro 11,789 10,235

Japaneseyen 6,104 10,364

Otheroverseascurrencies 17,673 22,920

123,410 149,456

Financial Report

60AnnualReport2022

19 Financial Instruments (continued)

Interest Rate Risk

 Interestratemovementsmayaffectdirectly:

— thefairvalueofanyinvestmentsinfixedinterestratesecurities;

— thelevelofincomereceivableoncashdeposits;

— thefairvalueoftheCompany’sfixed-rateborrowings;and

— theinterestpayableonanyvariablerateborrowingswhichtheCompanymaytakeout.

InterestratemovementsmayalsoimpactuponthemarketvalueoftheCompany’sinvestments.Theeffectofinterestratemovementsupon

theearningsofaninvesteecompanymayhaveasignificantimpactuponthevaluationofthatcompany’sequity.Thepossibleeffectsonfair

valueandcashflowsthatcouldariseasaresultofchangesininterestratesaretakenintoaccountwhenmakinginvestmentdecisionsand

whenenteringborrowingagreements.TheBoardreviewsonaregularbasistheamountofinvestmentsincashandfixedincomesecurities

andtheincomereceivableoncashdeposits,floatingratenotesandothersimilarinvestments.TheCompanyfinancespartofitsactivities

throughborrowingsatapprovedlevels.Theamountofsuchborrowingsandtheapprovedlevelsaremonitoredandreviewedregularlyby

theBoard.

 Movementsininterestrates,totheextentthattheyaffectthefairvalueoftheCompany’sfixedrateborrowings,mayalsoaffecttheamount

bywhichtheCompany’ssharepriceisatadiscountorapremiumtothenetassetvalue(withborrowingsatfairvalue)assumingthatthe

Company’ssharepriceisunaffectedbymovementsininterestrates.

Financial Assets

TheCompany’sinterestrateriskexposureonitsfinancialassetsat30April2022amountedto£35,879,000(2021–£108,723,000),

comprisingitscashandshorttermdeposits.

 Thecashdepositsgenerallycomprisecallorshorttermmoneymarketdepositsoflessthanonemonthwhicharerepayableondemand.

Thebenchmarkratewhichdeterminestheinterestpaymentsreceivedoncashbalancesisthebankbaserate.

Financial Liabilities

 TheinterestrateriskprofileoftheCompany’sbankloans,loannotesanddebentures(atamortisedcost)andthematurityprofileofthe

undiscountedfuturecashflowsinrespectoftheCompany’scontractualfinancialliabilitiesat30Aprilareshownbelow.

Interest Rate Risk Profile

2022

£’000

2021

£’000

Floatingrate–sterling 75,000 –

Fixedrate–sterling 139,826 139,788

214,826 139,788

Maturity Profile

2022

Within

1 year

£’000

2022

Between 1

and 5 years

£’000

2022

More than

5 years

£’000

2021

Within

1 year

£’000

2021

Between 1

and 5 years

£’000

2021

More than

5 years

£’000

Repaymentofloansanddebentures 115,000 – 100,000 – 40,000 100,000

Interestonloansanddebentures 5,327 7,296 43,788 4,374 9,846 45,612

120,327 7,296 143,788 4,374 49,846 145,612

Interest Rate Risk Sensitivity

Anincreaseof100basispointsinbondyieldsappliedtotheCompany’sfinancialliabilitiesasat30April2022wouldhavedecreasedtotal

netassetsandtotalreturnonordinaryactivitiesby£138,000(2021–nil)andwouldhaveincreasedthenetassetvaluepershare(with

borrowingsatfairvalue)by7.8p(2021–9.8p).Adecreaseof100basispointswouldhaveincreasedtotalnetassetsandtotalreturnon

ordinaryactivitiesby£80,000(2021–nil)andwouldhavedecreasednetassetvaluepershare(withborrowingsatfairvalue)by7.9p

(2021–9.8p).

Other Price Risk

ChangesinmarketpricesotherthanthosearisingfrominterestrateriskorcurrencyriskmayalsoaffectthevalueoftheCompany’snet

assets.TheBoardmanagesthemarketpricerisksinherentintheinvestmentportfoliobyensuringfullandtimelyaccesstorelevant

informationfromtheInvestmentManager.TheBoardmeetsregularlyandateachmeetingreviewsinvestmentperformance,theinvestment

portfolioandtherationaleforthecurrentinvestmentpositioningtoensureconsistencywiththeCompany’sobjectiveandinvestmentpolicy.

Financial Report

The Monks Investment Trust PLC 61

19 Financial Instruments (continued)

Other Price Risk Sensitivity

AfulllistoftheCompany’sinvestmentsisshownonpages12to14.Inaddition,variousanalysesoftheportfoliobygrowthcategory,

thematicriskcategory,geographyandbroadindustrialorcommercialsectorarecontainedintheStrategicReport.105.1%ofthe

Company’snetassetsareinvestedinquotedequities(2021–98.9%).A10%increaseinquotedequityvaluationsat30April2022would

haveincreasedtotalassetsandtotalreturnonordinaryactivitiesby£260,541,000(2021–£316,914,000).Adecreaseof10%wouldhave

hadanequalbutoppositeeffect.

2.3%(2021–2.2%)oftheCompany’snetassetsareinvestedinunlistedsecurities.Thefairvaluationoftheunlistedinvestmentsis

influencedbytheestimates,assumptionsandjudgementsmadeinthefairvaluationprocess(see1(c)onpages48and49).

Asensitivityanalysisisprovidedbelowwhichrecognisesthatthevaluationmethodologiesemployedinvolvesubjectivityintheirsignificant

unobservableinputsandillustratesthesensitivityofthevaluationstotheseinputs.Theinputshavebeenflexedby+/-10%withthe

exceptionoftheRecentTransactionPricevaluationapproachasitdoesnotinvolvesignificantsubjectivity.

As at 30 April 2022 Positive impact Negative impact

Valuation Technique

Fair value of

investments

£’000

Key variable input*

Variable input

sensitivity

(%)

£’000

†

of net

assets

£’000

†

of net

assets

RecentTransaction 19,613 n/a n/a n/a n/a n/a n/a

Marketapproach

usingcomparable

tradedmultiples

27,327 Applicationofvaluationbasis

Probabilityofestimationofliquidation

events

Selectionofcomparablecompanies

Estimatedsustainableearnings

±10 2,589 0.1 (2,535) (0.1)

Applicationofilliquiditydiscount ±10 98 0.0 (94) 0.0

Comparable

Company

performance

4,711 Applicationofvaluationbasis

Probabilityofestimationofliquidation

events

Selectionofappropriatebenchmarks

±10 471 0.0 (471) 0.0

SumoftheParts 4,958 Applicationofvaluationbasis

Selectionofcomparablecompanies

Estimatedsustainableearnings

±10 543 0.0 (543) 0.0

Total 56,609 3,701 0.1 (3,643) (0.1)

As at 30 April 2021 Positive impact Negative impact

Valuation Technique

Fair value of

investments

£’000

Key variable input* encompassing

possible fluctuations due to Covid-19

Variable input

sensitivity

(%)

£’000

†

of net

assets

£’000

†

of net

assets

RecentTransaction 21,171 n/a

n/a n/a n/a n/a n/a

Marketapproach

usingcomparable

tradedmultiples

29,779 Applicationofvaluationbasis

Probabilityofestimationofliquidation

events

Selectionofcomparablecompanies

Estimatedsustainableearnings

±10 2,255 0.1 (2,255) (0.1)

Applicationofilliquiditydiscount ±10 449 0.0 (448) 0.0

SumoftheParts 6,065 Applicationofvaluationbasis

Selectionofcomparablecompanies

Estimatedsustainableearnings

±10 609 0.0 (609) 0.0

Priceofexpected

transaction

11,979 Applicationofvaluationbasis

Probabilityofestimationofliquidation

events

Selectionofcomparablecompanies

Estimatedsustainableearnings

10 1,198 0.0 (1,198) 0.0

Total 68,994 4,511 0.1 (4,510) (0.1)

†

Impactonnetassetsandnetreturnaftertaxation.

Aliquidationeventistypicallyacompanysaleoraninitialpublicoffering(‘IPO’).InassessingfairvaluetheCompanyhasdeterminedthe

likelyenterprisevalueattributedtothedifferentinvestmentclassesheldbytheCompany.

Financial Report

62AnnualReport2022

19 Financial Instruments (continued)

Other Price Risk Sensitivity (continued)

* Key Variable Inputs

Thevariableinputsapplicabletoeachbroadcategoryofvaluationbasiswillvarydependentontheparticularcircumstancesofeachunlisted

companyvaluation.Anexplanationofeachofthekeyvariableinputsisprovidedbelowandincludesanindicationoftherangeinvaluefor

eachinput,whererelevant.Theassumptionsmadeintheproductionoftheinputsaredescribedinnote1(c)onpages48and49.

Selection of Appropriate Benchmarks

Theselectionofappropriatebenchmarksisassessedindividuallyforeachinvestment.Theindustryandgeographyofeachcompanyarekey

inputstothebenchmarkselection,witheitheroneortwokeyindicesorbenchmarksbeingusedforcomparison.

Selection of Comparable Companies

Theselectionofcomparablecompaniesisassessedindividuallyforeachinvestmentatthepointofinvestment,andtherelevanceofthe

comparablecompaniesiscontinuallyevaluatedateachvaluation.Thekeycriteriausedinselectingappropriatecomparablecompaniesare

theindustrysectorinwhichtheyoperate,thegeographyofthecompany’soperations,therespectiverevenueandearningsgrowthrates

andtheoperatingmargins.Typically,between4and10comparablecompanieswillbeselectedforeachinvestment,dependingonhow

manyrelevantcomparablecompaniesareidentified.Theresultantrevenueorearningsmultiplesderivedwillvarydependingonthe

companiesselectedandtheindustriestheyoperateinandcanvaryintherangeof1xto10x.

Probability Estimation of Liquidation Events

Theprobabilityofaliquidationeventsuchasacompanysale,oralternativelyaninitialpublicoffering(‘IPO’),isakeyvariableinputinthe

Transaction-basedandMultiples-basedvaluationtechniques.TheprobabilityofanIPOversusacompanysaleistypicallyestimatedfromthe

outsettobe50:50iftherehasbeennoindicationbythecompanyofpursuingeitheroftheseroutes.Ifthecompanyhasindicatedan

intentiontoIPO,theprobabilityisincreasedaccordinglyto75%andifanIPOhasbecomeacertaintytheprobabilityisincreasedto100%.

Likewise,inascenariowhereacompanyispursuingatradesaletheweightingswillbeadjustedaccordinglyinfavourofasalescenario,or

inasituationwhereacompanyisunderperformingexpectationssignificantlyandthereforedeemedveryunlikelytopursueanIPO.

Application of Valuation Basis

Eachinvestmentisassessedindependently,andthevaluationbasisappliedwillvarydependingonthecircumstancesofeachinvestment.

Whenaninvestmentispre-revenue,thefocusofthevaluationwillbeonassessingtherecenttransactionandtheachievementofkey

milestonessinceinvestment.Adjustmentsmayalsobemadedependingontheperformanceofcomparablebenchmarksandcompanies.

ForthoseinvestmentswhereatradingMultiplesapproachcanbetaken,themethodologywillfactorinrevenue,earningsornetassetsas

appropriatefortheinvestment,andwhereasuitablecorrelationcanbeidentifiedwiththecomparablecompaniesthenaregressionanalysis

willbeperformed.Discountedcashflowswillalsobeconsideredwhereappropriateforecastsareavailable.

Estimated Sustainable Earnings

Theselectionofsustainablerevenueorearningswilldependonwhetherthecompanyissustainablyprofitableornot,andwhereitisnot

thensustainablerevenueswillbeusedinthevaluation.Thevaluationapproachwilltypicallyassesscompaniesbasedonthelasttwelve

monthsofrevenueorearnings,astheyarethemostrecentavailableandthereforeviewedasthemostreliable.Whereacompanyhas

reliablyforecastedearningspreviouslyorthereisachangeincircumstanceatthebusinesswhichwillimpactearningsgoingforward,then

forwardestimatedrevenueorearningsmaybeusedinstead.

Application of Liquidity Discount

Theapplicationofaliquiditydiscountwillbeappliedeitherthroughthecalibrationofavaluationagainstthemostrecenttransaction,orby

applicationofaspecificdiscount.Thediscountappliedwhereacalibrationisnotappropriateistypically10%,reflectingthatthemajorityof

theinvestmentsheldaresubstantialcompanieswithsomesecondarymarketactivity.

Liquidity Risk

ThisistheriskthattheCompanywillencounterdifficultyinmeetingobligationsassociatedwithfinancialliabilities.Liquidityriskisnot

significantasthemajorityoftheCompany’sassetsareinvestmentsinlistedsecuritiesthatarereadilyrealisable.TheBoardalsosets

parametersforthedegreetowhichtheCompany’snetassetsareinvestedinlistedequities.TheCompanyhasthepowertotakeout

borrowings,whichgiveitaccesstoadditionalfundingwhenrequired.TheCompany’scurrentliabilitiesandborrowingfacilitiesaredetailed

innotes11and12andthematurityprofileofitsborrowingsissetoutonpage60.

Financial Report

The Monks Investment Trust PLC 63

19 Financial Instruments (continued)

Credit Risk

ThisistheriskthatafailureofacounterpartytoatransactiontodischargeitsobligationsunderthattransactioncouldresultintheCompany

sufferingaloss.Thisriskismanagedasfollows:

— wheretheinvestmentmanagersmakeaninvestmentinabondorothersecuritywithcreditrisk,thatcreditriskisassessedandthen

comparedtotheprospectiveinvestmentreturnofthesecurityinquestion;

— theDepositaryisliableforthelossoffinancialinstrumentsheldincustody.TheDepositarywillensurethatanydelegatesegregatesthe

assetsoftheCompany.TheDepositaryhasdelegatedthecustodyfunctiontoTheBankofNewYorkMellon(International)Limited.

BankruptcyorinsolvencyofthecustodianmaycausetheCompany’srightswithrespecttosecuritiesheldbythecustodiantobe

delayed.TheManagersmonitortheCompany’sriskbyreviewingtheDepositary’sinternalcontrolreportsandreportingtheirfindingsto

theBoard;

— investmenttransactionsarecarriedoutwithalargenumberofbrokerswhosecreditworthinessisreviewedbytheManagers.

TransactionsareordinarilydoneonadeliveryversuspaymentbasiswherebytheCompany’scustodianbankensuresthatthe

counterpartytoanytransactionenteredintobytheCompanyhasdeliveredonitsobligationsbeforeanytransferofcashorsecurities

awayfromtheCompanyiscompleted;and

— cashisonlyheldatbanksthathavebeenidentifiedbytheManagersasreputableandofhighcreditquality.

Credit Risk Exposure

TheamountthatbestrepresentstheCompany’smaximumexposuretodirectcreditriskat30Aprilwas:

2022

£’000

2021

£’000

Cashandcashequivalents 35,879 108,723

Debtors 8,072 3,936

43,951 112,659

NoneoftheCompany’sfinancialassetsarepastdueorimpaired.

Fair Value of Financial Assets and Financial Liabilities

TheDirectorsareoftheopinionthatthereisnodifferencebetweentheamountsatwhichthefinancialassetsandliabilitiesoftheCompany

arecarriedintheBalanceSheetandtheirfairvalues,withtheexceptionoflongtermborrowings.ThefairvaluesoftheCompany’s

borrowingsareshownbelow.Thefairvalueofthe6

8%debenturestock2023iscalculatedusingacomparabledebtapproachand/or

brokerquoteswhereavailable(2021–pricesourceBarclaysBXEC).Usingthe2021pricesourceasat30April2022wouldhavereduced

thefairvalueofthedebentureby£189,000andincreasedthefairvalueNAVby0.1ppershare.Thefairvaluesoftheloannotesare

calculatedusingacomparabledebtapproach,byreferencetoabasketofcorporatedebt(2021–calculatedbyreferencetoUKGiltswith

comparablematurities,applyingafairvaluespreadusingnon-Giltbondindicesofsimilarduration).Thisadjustmenttomethodologyisnot

consideredtodiffersignificantlyfromthepriorapproach.

2022

Par

value

£’000

2022

Book

value

£’000

2022

Fair

value

£’000

2021

Par

value

£’000

2021

Book

value

£’000

2021

Fair

value

£’000

Bankloansduewithinoneyear 75,000 75,000 75,000 – – –

debenturestock2023

40,000 39,973 41,001 40,000 39,940 43,207

SeriesANotes1.86%2054 60,000 59,901 43,700 60,000 59,898 54,302

SeriesBNotes1.77%2045 40,000 39,952 30,607 40,000 39,950 36,015

215,000 214,826 190,308 140,000 139,788 133,524

Financial Report

64AnnualReport2022

20 Capital Management

ThecapitaloftheCompanyisitssharecapitalandreservesassetoutinnote14togetherwithitsborrowings(seenotes11and12).

TheobjectiveoftheCompanyistoinvestgloballytoachievecapitalgrowth,whichtakespriorityoverincomeanddividends.

TheCompany’sinvestmentpolicyissetoutonpage18.InpursuitoftheCompany’sobjective,theBoardhasaresponsibilityforensuring

theCompany’sabilitytocontinueasagoingconcernanddetailsoftherelatedrisksandhowtheyaremanagedaresetoutonpages19,20

and30.

TheCompany

hastheabilitytoissueandbuybackitsshares(seepage25)andanychangestothesharecapitalduringtheyear

are

setoutinnote

TheCompanydoesnothaveanyexternallyimposedcapitalrequirementsotherthanthecovenantsonitsloans,loannotesanddebentures

whicharedetailedinnotes11and12.

21 Subsequent Events

Subsequenttothe30April2022yearend,thenetassetvaluepersharewithdebtatfairvaluefellby11.1%to977.8p(asat16June2022)

asmarketsreactedtomacroeconomicandgeopoliticalconcerns.

Financial Report

The Monks Investment Trust PLC 65

Noticeisherebygiventhattheninety-thirdAnnualGeneral

MeetingofTheMonksInvestmentTrustPLCwillbeheldatthe

InstituteofDirectors,116PallMall,LondonSW1Y5EDon

Tuesday,6September2022,at11.00amforthefollowing

purposes:

Ordinary Business

Toconsiderand,ifthoughtfit,passthefollowingresolutionsas

ordinaryresolutions:

1. ToreceiveandadopttheFinancialStatementsofthe

Companyfortheyearended30April2022withtheReports

oftheDirectorsandoftheIndependentAuditorthereon.

2. ToapprovetheDirectors’AnnualReportonRemunerationfor

theyearended30April2022.

3. Todeclareafinaldividendof2.35pperordinaryshare.

4. Tore-electMrKSSternbergasaDirector.

5. Tore-electMrJJTigueasaDirector.

6. Tore-electMsBJRichardsasaDirector.

7. Tore-electProfessorSirNigelShadboltasaDirector.

8. Tore-electMsCMBoyleasaDirector.

9. ToreappointErnst&YoungLLPasIndependentAuditorof

theCompanytoholdofficeuntiltheconclusionofthenext

AnnualGeneralMeetingatwhichtheFinancialStatements

arelaidbeforetheCompany.

10.ToauthorisetheDirectorstodeterminetheremunerationof

theIndependentAuditor.

11.That,insubstitutionforanyexistingauthoritybutwithout

prejudicetotheexerciseofanysuchauthoritypriortothedate

hereof,theDirectorsoftheCompanybeandtheyarehereby

generallyandunconditionallyauthorisedinaccordancewith

section551oftheCompaniesAct2006(the‘Act’)toexercise

allthepowersoftheCompanytoallotsharesintheCompany

andtograntrightstosubscribeforortoconvertanysecurity

intosharesintheCompany(‘Securities’)providedthatsuch

authorityshallbelimitedtotheallotmentofsharesandthe

grantofrightsinrespectofshareswithanaggregatenominal

valueofupto£1,124,037.90(representing10%ofthe

Company’stotalissuedsharecapitalasat16June2022),

Piccadilly

Pall Mall

Haymarket

Regent Street

St. James’s Street

Piccadilly

Circus

The Mall

Charing

Cross

Whitehall

Strand

King St

St James Sq

Pall Mall East

A400

INSTITUTE OF

DIRECTORS

Trafalgar

Square

SubjecttoGovernmentmeasuresrestrictingpublicgatherings,and

relatedpublichealthguidanceassociatedwiththeCovid-19

pandemic,theAnnualGeneralMeetingoftheCompanywillbeheld

attheInstituteofDirectors,116PallMall,LondonSW1Y5EDon

Tuesday,6September2022,at11.00am.Giventheongoing

uncertainty,theBoardwillcontinuetomonitordevelopmentsandmay

beforcedtoprohibitshareholdersfromattendinginperson.The

Boardthereforeencouragesallshareholderstoexercisetheirvotesat

theAnnualGeneralMeetingbycompletingandsubmittingaformof

proxy;andtomonitortheCompany’swebsitewhereanyupdateswill

beposted.

Ifyouhaveanyqueriesastohowtovoteorhowtoattendthe

meeting,pleasecalluson08009172112.

BaillieGiffordmayrecordyourcall.

suchauthoritytoexpireattheconclusionofthenextAnnual

GeneralMeetingoftheCompanyafterthepassingofthis

resolutionorontheexpiryof15monthsfromthepassingof

thisresolution,whicheveristheearlier,unlesspreviously

revoked,variedorextendedbytheCompanyinageneral

meeting,savethattheCompanymayatanytimepriortothe

expiryofthisauthoritymakeanofferorenterintoan

agreementwhichwouldormightrequireSecuritiestobe

allottedorgrantedaftertheexpiryofsuchauthorityandthe

DirectorsshallbeentitledtoallotorgrantSecuritiesin

pursuanceofsuchanofferoragreementasifsuchauthority

hadnotexpired.

Toconsiderand,ifthoughtfit,topassresolutions12,13and14

asspecialresolutions:

12.That,subjecttothepassingofresolution11above,andin

substitutionforanyexistingpowerbutwithoutprejudiceto

theexerciseofanysuchpowerpriortothedatehereof,the

DirectorsoftheCompanybeandtheyareherebygenerally

empowered,pursuanttosections570and573ofthe

CompaniesAct2006(the‘Act’)toallotequitysecurities

(withinthemeaningofsection560(1)oftheAct)forcash

eitherpursuanttotheauthoritygivenbyresolution11above

orbywayofthesaleoftreasuryshareswhollyforcashasif

section561(1)oftheActdidnotapplytoanysuchallotment

orsale,providedthatthispower:

(a)expiresattheconclusionofthenextAnnualGeneral

MeetingoftheCompanyafterthepassingofthisresolution

orontheexpiryof15monthsfromthepassingofthis

resolution,whicheveristheearlier,savethattheCompany

may,beforesuchexpiry,makeanofferoragreement

whichwouldormightrequireequitysecuritiestobe

allottedaftersuchexpiryandtheDirectorsmayallotequity

securitiesinpursuanceofanysuchofferoragreementasif

thepowerconferredherebyhadnotexpired;and

(b)shallbelimitedtotheallotmentofequitysecuritiesor

thesaleoftreasurysharesuptoanaggregatenominal

valueof£1,124,037.90,beingapproximately10%ofthe

nominalvalueoftheissuedsharecapitaloftheCompany

asat16June2022.

Notice of Annual General Meeting

Shareholder Information

66AnnualReport2022

13.That,insubstitutionforanyexistingauthority,butwithout

prejudicetotheexerciseofanysuchauthoritypriortothe

datehereof,theCompanybeandisherebygenerallyand

unconditionallyauthorised,pursuanttoandinaccordance

withsection701oftheCompaniesAct2006(the‘Act’),to

makemarketpurchases(withinthemeaningofsection693(4)

oftheAct)offullypaidordinarysharesof5peachinthe

capitaloftheCompany(‘Shares’),(eitherforretentionas

treasurysharesforfuturereissue,resale,transferorfor

cancellation)providedthat:

(a)themaximumaggregatenumberofShareshereby

authorisedtobepurchasedis33,698,657,or,ifless,the

numberrepresentingapproximately14.99%oftheissued

ordinarysharecapitaloftheCompanyasatthedateof

thepassingofthisresolution;

(b)theminimumprice(exclusiveofexpenses)whichmaybe

paidforeachShareis5p;

(c)themaximumprice(exclusiveofexpenses)whichmay

bepaidforaShareshallbenotmorethanthehigherof:

(i)5percentabovetheaverageclosingpriceonthe

LondonStockExchangeofaShareoverthefivebusiness

daysimmediatelyprecedingthedateofpurchase;and

(ii)thehigherofthepriceofthelastindependenttradeof,

andthehighestcurrentindependentbidfor,aShareon

theLondonStockExchange;and

(d)unlesspreviouslyvaried,revokedorrenewedbythe

Companyinageneralmeeting,theauthorityhereby

conferredshallexpireattheconclusionoftheAnnual

GeneralMeetingoftheCompanytobeheldinrespectof

theyearending30April2023,savethattheCompany

may,priortosuchexpiry,enterintoacontractto

purchaseSharesundersuchauthoritywhichwillormay

beexecutedwhollyorpartlyaftertheexpirationofsuch

authorityandmaymakeapurchaseofSharespursuant

toanysuchcontract.

14.ThattheArticlesofAssociationproducedtothemeetingand

signedbytheChairmanofthemeetingforthepurposesof

identificationbeapprovedandadoptedastheArticlesof

AssociationoftheCompanyinsubstitutionfor,andtothe

exclusionof,theexistingArticlesofAssociationwitheffect

fromtheconclusionofthemeeting.

ByorderoftheBoard

BaillieGifford&CoLimited

CompanySecretary

6July2022

Notes

1. Asamemberyouareentitledtoappointaproxyorproxiesto

exercisealloranyofyourrightstoattend,speakandvoteat

theAGM.AproxyneednotbeamemberoftheCompanybut

mustattendtheAGMtorepresentyou.Youmayappoint

morethanoneproxyprovidedeachproxyisappointedto

exerciserightsattachedtodifferentshares.Youcanonly

appointaproxyusingtheproceduresetoutinthesenotes

andthenotestotheproxyform.Youmaynotuseany

electronicaddressprovidedeitherinthisnoticeoranyrelated

documents(includingtheFinancialStatementsandproxy

form)tocommunicatewiththeCompanyforanypurpose

otherthanthoseexpresslystated.

2. Tobevalidanyproxyformorotherinstrumentappointinga

proxy,togetherwithanypowerofattorneyorotherauthority

underwhichitissignedoracertifiedcopythereof,mustbe

receivedbypostor(duringnormalbusinesshoursonly)by

handattheRegistrarsoftheCompanyatComputershare

InvestorServicesPLC,ThePavilions,BridgwaterRoad,

Bristol,BS996ZYoreproxyappointment.comnolaterthan

twodays(excludingnon-workingdays)beforethetimeofthe

meetingoranyadjournedmeeting.

3. CRESTmemberswhowishtoappointaproxyorproxies

throughtheCRESTelectronicproxyappointmentservicemay

dosobyusingtheproceduresdescribedintheCRESTManual

and/orbyloggingontothewebsiteeuroclear.com/CREST.

CRESTpersonalmembersorotherCRESTsponsored

members,andthoseCRESTmemberswhohaveappointeda

votingserviceprovider(s),shouldrefertotheirCRESTsponsor

orvotingserviceprovider(s),whowillbeabletotakethe

appropriateactionontheirbehalf.

4. Inorderforaproxyappointmentorinstructionmadeusing

the

CRESTservicetobevalid,theappropriateCREST

message(a‘CRESTProxyInstruction’)mustbeproperly

authenticatedinaccordancewithEuroclearUK&Ireland

Limited’sspecifications,andmustcontaintheinformation

requiredforsuchinstruction,asdescribedintheCREST

Manual.Themessage,regardlessofwhetheritconstitutesthe

appointmentofaproxyorisanamendmenttotheinstruction

giventoapreviouslyappointedproxymust,inordertobevalid,

betransmittedsoastobereceivedbytheCompany’sregistrar

(ID3RA50)nolaterthantwodays(excludingnon-workingdays)

beforethetimeofthemeetingoranyadjournment.Forthis

purpose,thetimeofreceiptwillbetakentobethetime(as

determinedbythetimestampappliedtothemessagebythe

CRESTApplicationHost)fromwhichtheCompany’sregistrar

isabletoretrievethemessagebyenquirytoCRESTinthe

mannerprescribedbyCREST.Afterthistimeanychangeof

instructionstoproxiesappointedthroughCRESTshouldbe

communicatedtotheappointeethroughothermeans.

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The Monks Investment Trust PLC 67

5. CRESTmembersand,whereapplicable,theirCREST

sponsors,orvotingserviceprovidersshouldnotethat

EuroclearUK&IrelandLimiteddoesnotmakeavailable

specialproceduresinCRESTforanyparticularmessage.

Normalsystemtimingsandlimitationswill,therefore,apply

inrelationtotheinputofCRESTProxyInstructions.Itisthe

responsibilityoftheCRESTmemberconcernedtotake(or,

iftheCRESTmemberisaCRESTpersonalmember,or

sponsoredmember,orhasappointedavotingservice

provider(s),toprocurethathis/herCRESTsponsororvoting

serviceprovider(s)take(s)suchactionasshallbenecessaryto

ensurethatamessageistransmittedbymeansoftheCREST

systembyanyparticulartime.Inthisconnection,CREST

membersand,whereapplicable,theirCRESTsponsorsor

votingserviceprovidersarereferred,inparticular,tothose

sectionsoftheCRESTManualconcerningpracticallimitations

oftheCRESTsystemandtimings.

6. TheCompanymaytreatasinvalidaCRESTProxyInstruction

inthecircumstancessetoutinRegulation35(5)(a)ofthe

UncertificatedSecuritiesRegulations2001.

7. Thereturnofacompletedproxyformorotherinstrumentof

proxywillnotpreventyouattendingtheAGMandvotingin

personifyouwish.

8. PursuanttoRegulation41oftheUncertificatedSecurities

Regulations2001andsection311oftheCompaniesAct2006

theCompanyspecifiesthattobeentitledtoattendandvote

attheAnnualGeneralMeeting(andforthepurposeofthe

determinationbytheCompanyofthevotestheymaycast),

shareholdersmustberegisteredintheRegisterofMembers

oftheCompanynolaterthanthecloseofbusinesstwodays

(excludingnon-workingdays)priortothecommencementof

theAGMoranyadjournedmeeting.ChangestotheRegister

ofMembersaftertherelevantdeadlineshallbedisregardedin

determiningtherightsofanypersontoattendandvoteatthe

meeting.

9. Anypersontowhomthisnoticeissentwhoisaperson

nominatedundersection146oftheCompaniesAct2006to

enjoyinformationrights(a‘NominatedPerson’)may,underan

agreementbetweenhim/herandtheshareholderbywhom

he/shewasnominated,havearighttobeappointed(orto

havesomeoneelseappointed)asaproxyfortheAnnual

GeneralMeeting.IfaNominatedPersonhasnosuchproxy

appointmentrightordoesnotwishtoexerciseit,he/shemay,

underanysuchagreement,havearighttogiveinstructions

totheshareholderastotheexerciseofvotingrights.

10.Thestatementoftherightsofshareholdersinrelationtothe

appointmentofproxiesinnotes1and2abovedoesnotapply

toNominatedPersons.Therightsdescribedinthosenotes

canonlybeexercisedbyshareholdersoftheCompany.

11.Undersection338oftheCompaniesAct2006,members

meetingthequalificationcriteriasetoutinnote14belowmay,

subjecttocertainconditions,requiretheCompanytocirculate

tomembersnoticeofaresolutionwhichmayproperlybe

movedandisintendedtobemovedatthatmeeting.The

conditionsarethat:(a)theresolutionmustnot,ifpassed,

beineffective(whetherbyreasonofinconsistencywithany

enactmentortheCompany’sconstitutionorotherwise);

(b)theresolutionmustnotbedefamatoryofanyperson,

frivolousorvexatious;and(c)therequest:(i)maybeinhard

copyformorinelectronicform;(ii)mustidentifytheresolution

ofwhichnoticeistobegivenbyeithersettingoutthe

resolutioninfullor,ifsupportingaresolutionsentbyanother

member,clearlyidentifyingtheresolutionwhichisbeing

supported;(iii)mustbeauthenticatedbythepersonor

personsmakingit;and(iv)mustbereceivedbytheCompany

notlaterthanMonday25July2022.

12.Undersection338AoftheCompaniesAct2006,members

meetingthequalificationcriteriasetoutatnote14belowmay

requiretheCompanytoincludeinthebusinesstobedealt

withattheAnnualGeneralMeetingamatter(otherthana

proposedresolution)whichmayproperlybeincludedinthe

business(amatterofbusiness).Therequestmusthavebeen

receivedbytheCompanynotlaterthanMonday25July

2022.Theconditionsarethatthematterofbusinessmust

notbedefamatoryofanyperson,frivolousorvexatious.The

requestmustidentifythematterofbusinessbyeithersetting

itoutinfullor,ifsupportingastatementsentbyanother

member,clearlyidentifythematterofbusinesswhichisbeing

supported.Therequestmustbeaccompaniedbyastatement

settingoutthegroundsfortherequest.Membersseekingto

dothisshouldwritetotheCompanyprovidingtheirfullname

andaddress.

13.Undersection527oftheCompaniesAct2006,members

meetingthequalificationcriteriasetoutatnote14belowmay

requiretheCompanytopublish,onitswebsite,(without

payment)astatement(whichisalsopassedtotheAuditor)

settingoutanymatterrelatingtotheauditoftheCompany’s

FinancialStatements,includingtheAuditor’sReportandthe

conductoftheaudit.Suchrequestsmustbemadeinwriting

andmuststateyourfullnameandaddress.

14.Inordertobeabletoexercisethemembers’rightsinnotes

11to13,therelevantrequestmustbemadeby:(a)members

representingatleast5%ofthetotalvotingrightsofallthe

memberswhohavearighttovoteontheresolutiontowhich

therequestsrelate;or(b)atleast100memberswhohavea

righttovoteontheresolutiontowhichtherequestsrelate

andholdsharesintheCompanyonwhichtherehasbeen

paidupanaveragesum,permember,ofatleast£100.Such

requestsshouldbesenttotheCompanyatCaltonSquare,

1GreensideRow,Edinburgh,EH13AN.Electronicrequests

permittedundersection338(seenote11)shouldbesentto

trustenquiries@bailliegifford.com.

Shareholder Information

68AnnualReport2022

15.InformationregardingtheAnnualGeneralMeeting,including

informationrequiredbysection311AoftheCompaniesAct

2006,isavailablefromtheCompany’spageoftheManagers’

websiteatmonksinvestmenttrust.co.uk.

16.Membershavetherighttoaskquestionsatthemeetingin

accordancewithsection319AoftheCompaniesAct2006.

17.Anycorporationwhichisamembercanappointoneormore

corporaterepresentativeswhomayexerciseonitsbehalfall

ofitspowersasamemberprovidedthattheydonotdosoin

relationtothesameshares.

18.Asat16June2022(beingthelastpracticabledatepriorto

thepublicationofthisnotice)theCompany’sissuedshare

capitalconsistedof224,807,587ordinaryshares,carrying

onevoteeach.Therefore,thetotalvotingrightsinthe

Companyasat16June2022were224,807,587votes.

Summary of the Principal Amendments to the Company’s

Articles of Association

Setoutbelowisasummaryoftheprincipalamendmentswhich

willbemadetotheCompany’sExistingArticlesthroughthe

adoptionoftheNewArticlesifResolution14tobeproposedat

theAGMisapprovedbyshareholders.

Thissummaryisintendedonlytohighlighttheprincipalamendments

whicharelikelytobeofinteresttoshareholders.Itisnotintended

tobecomprehensiveandcannotbereliedupontoidentify

amendmentsorissueswhichmaybeofinteresttoallshareholders.

Thissummaryisnotasubstituteforreviewingthefulltermsofthe

NewArticleswhichwillbeavailableforinspectionattheofficesof

DicksonMintoW.S.,Level13,BroadgateTower,20Primrose

Street,LondonEC2A2EWbetweenthehoursof9.00amand

5.00pm(Saturdays,Sundaysandpublicholidaysexcepted),and

ontheCompany’swebsite,monksinvestmenttrust.co.uk,from

thedateoftheAGMNoticeuntilthecloseoftheAGM,andwill

alsobeavailableforinspectionatthevenueoftheAGMfrom

15minutesbeforeandduringtheAGM.

Hybrid/Virtual-Only Shareholder Meetings

TheNewArticlespermittheCompanytoholdshareholder

meetingsonavirtualbasis,wherebyshareholdersarenot

requiredtoattendthemeetinginpersonataphysicallocation

butmayinsteadattendandparticipateusingelectronicmeans.

Ashareholdermeetingmaybevirtual-onlyifattendeesparticipate

onlybywayofelectronicmeans,ormaybeheldonahybridbasis

wherebysomeattendeesattendinpersonataphysicallocation

andothersattendremotelyusingelectronicmeans.Thisshould

makeiteasierfortheCompany’sshareholderstoattendshareholder

meetingsiftheBoardelectstoconductmeetingsusingelectronic

means.AmendmentshavebeenmadethroughouttheNewArticles

tofacilitatetheholdingofhybridorvirtual-onlyshareholdermeetings.

WhiletheNewArticles(ifadopted)wouldpermitshareholder

meetingstobeconductedusingelectronicmeans,theDirectors

havenopresentintentionofholdingavirtual-onlymeeting.These

provisionswillonlybeusedwheretheDirectorsconsideritisin

thebestofinterestsofshareholdersforahybridorvirtual-only

meetingtobeheld.NothingintheNewArticleswillpreventthe

Companyfromholdingphysicalshareholdermeetings.

The Alternative Investment Fund Managers Directive

(2011/61/EU) (‘AIFMD’) as incorporated into UK law by the

European Union (Withdrawal) Act 2018 and the Alternative

Investment Fund Managers Regulations 2013 (SI 2013/1773)

(the ‘AIFM Regulations’)

TheBoardisproposingtotakethisopportunitytomake

amendmentstotheExistingArticlesinresponsetotheAIFM

Regulationsandallapplicablerulesandregulationsimplementing

theAIFMD.Theproposednewprovisionsareasfollows:

(i) TheExistingArticleswillbeamendedtoprovidethatthenet

assetvaluepershareoftheCompanyshallbecalculatedat

leastannuallyandbedisclosedtoshareholdersfromtimeto

timeinsuchmannerasmaybedeterminedbytheBoard.The

amendmentwillhavenobearingoncurrentpracticeandsimply

articulatestheminimumrequirementsoftheAIFMRegulations.

(ii) TheNewArticlesstipulatethatthevaluationoftheCompany’s

assetswillbeperformedinaccordancewithprevailingaccounting

standards,theAIFMRules,orsuchotheraccountingstandards,

bases,policiesandproceduresastheBoardmaydetermine

fromtimetotime.Thisreflectsbestpracticeandhasno

bearingoncurrentpracticeandsimplyarticulatestheminimum

requirementsoftheAIFMRegulations.

International Tax Regimes Requiring the Exchange

of Information

TheBoardisproposingtoincludeprovisionsintheNewArticles

toprovidetheCompanywiththeabilitytorequireshareholdersto

co-operateinrespectoftheexchangeofinformationinorderto

complywiththeCompany’sinternationaltaxreportingobligations,

including,withoutlimitation,underorinrelationtoFATCA,the

CommonReportingStandardandtheEuropeanUnion’sDirective

onAdministrativeCooperation(‘TaxReportingRequirements’).

TheExistingArticlesarebeingamendedtoprovidetheCompany

withtheabilitytorequireshareholderstoco-operatewithitin

ensuringthattheCompanyisabletocomplywithitsTaxReporting

Requirements.TheExistingArticleswillalsobeamendedtoprovide

that(i)whereanymemberfailstosupplytherelevantinformation

totheCompanywithintherelevanttimeperiod,thememberwill

bedeemedtohaveforfeitedtheirshares;and(ii)theCompanywill

notbeliableforanymoniesthatbecomesubjecttoadeduction

orwithholdingrelatingtoFATCA,theCommonReportingStandard

oranysimilarlawsassuchliabilitywouldbetothedetrimentof

shareholdersasawhole.

19.Anypersonholding3%ormoreofthetotalvotingrightsofthe

CompanywhoappointsapersonotherthantheChairmanof

themeetingashis/herproxywillneedtoensurethatbothhe/

sheandhisproxycomplieswiththeirrespectivedisclosure

obligationsundertheUKDisclosureandTransparencyRules.

20.NoDirectorhasacontractofservicewiththeCompany.

21.Thefulltermsoftheproposedamendmentstothe

Company’sArticlesofAssociationareavailableatthe

officesofDicksonMintoW.S.,Level13BroadgateTower,

20PrimroseStreet,LondonEC2A2EWbetweenthehours

of9.00amand5.00pm(Saturdays,Sundaysandpublic

holidaysexcepted)andontheCompany’swebsite,

monksinvestmenttrust.co.ukfromthedateoftheAGM

NoticeuntilthecloseoftheAGM,andwillalsobeavailablefor

inspectionatthevenueoftheAGMfrom15minutesbefore

andduringtheAGM.

Shareholder Information

Appendix

The Monks Investment Trust PLC 69

Directors’ Remuneration

TheBoardisproposingtoamendtheExistingArticlestoincreasethe

capontheaggregateofallfeespaidtoDirectorsfrom£300,000per

annumto£400,000perannum.Theproposedincreaseisconsistent

withmarketpractice.Shareholderslastapprovedanincreasein

Directors’remunerationon2August2017whentheaggregate

caponallfeeswasincreasedfrom£200,000to£300,000.The

Directorsbelievethiscapisappropriateatthisjuncturetoallowfor

recruitmentandpotentialoverlapastheyallowpotentiallyless

experienceddirectorstimetobedinontheBoardbeforeothers

standdown.AnysuchpaymentoffeestoDirectorswillbein

accordancewiththeremunerationpolicyoftheCompanyfromtime

totime.

BoththeExistingArticlesandtheNewArticlesallowforahigher

amounttobeapprovedfromtimetotimebyordinaryresolutionof

theCompany.

Minor Amendments

TheBoardisalsotakingtheopportunitytomakesomeadditional

minorortechnicalamendmentstotheExistingArticles,including:

(i) provisionswhichenabletheCompanytoholdshareholder

meetingsacrosstwo(ormore)physicallocationsintheevent

thatallshareholderscannotbeaccommodatedinasingle

physicallocationonthedayofameeting;

(ii) provisionswhichenabletheCompanytopostponea

shareholdermeetingwheretheBoardconsidersthatitwould

beimpracticalorundesirabletoholdthemeetingonthedate

whichwasoriginallynotifiedtoshareholders;

(iii) expandingthecircumstancesunderwhichthechairofa

shareholdermeetingmayadjournthemeetingwithoutthe

consentofthemeeting,includingwherethehealth,safetyor

wellbeingofthoseentitledtoattendwouldbeputatriskby

theirattendanceatthemeeting;

(iv)provisionswhichrequireallDirectorstoretireateachAGM

(and,iftheywish,toofferthemselvesforre-election)inline

withtherecommendedcorporategovernanceregimeinthe

UK,andprovisionsdealingwiththepotentialsituation

wherebynoDirectorsarere-electedatanAGM;

(v) updatingtheprovisionsregardingthepaymentofdividendsto

includetheuseofanyapprovedfundstransfersystemandto

enabletheCompanytospecifywhichpaymentmethod(s)will

beusedbytheCompanyinrespectofanydividend;

(vi)provisionswhichclarifythattheCompanymayestablisha

capitalreserveandthat,subjecttotheprovisionsofthe

CompaniesAct2006,capitalprofitsstandingtothecreditof

thecapitalreservemaybeusedtofinancethepaymentof

dividendsandsharebuybacks;

(vii)updatingtheprovisionsregardingtheserviceofnoticesand

otherinformationonshareholderstoreflectthevarious

methodspermittedunderUKcompanylaw;

(viii)deletinghistoricstocksandwarrantsprovisions;and

(ix)simplifyingtheprocedureinrespectofuntracedshareholders

byremovingtherequirementfortheCompanytopublish

newspaperadvertisements.

Thesechangesgenerallyreflectmodernbestpracticeandshould

assistinrelievingcertainadministrativeburdensontheCompany.

Shareholder Information

70AnnualReport2022

Company History

Monkswasincorporatedin1929andwasoneofthreetrusts

foundedinthelate1920sbyagroupofinvestorsheadedby

SirAuckland(laterLord)Geddes.Theothertwotrustswere

TheFriarsInvestmentTrustandTheAbbotsInvestmentTrust.

Thecompanysecretary’sofficewasat13/14AustinFriarsin

theCityofLondon,hencethenames.

In1931,BaillieGifford&Cotookoverthemanagementofallthree

trustsandMonksbecameafoundermemberoftheAssociation

ofInvestmentTrustsin1932.

In1968,underaSchemeofArrangement,thethreetrustswere

mergedwithMonksacquiringtheordinarysharecapitalofFriars

andAbbots.

Monks is an Investment Trust. Investment Trusts

Offer Investors the Following:

— participationinadiversifiedportfolioofshares;

— constantsupervisionbyexperiencedprofessionalmanagers;

and

— theCompanyisfreefromcapitalgainstaxoncapitalprofits

realisedwithinitsportfolioalthoughinvestorsarestillliablefor

capitalgainstaxonprofitswhensellingtheirinvestment.

How to Invest

TheCompany’ssharesaretradedontheLondonStockExchange.

Theycanbeboughtbyplacinganorderwithastockbrokerorby

askingaprofessionaladvisertodoso.Ifyouareinterestedin

investingdirectlyinMonks,youcandosoonline.Therearea

numberofcompaniesofferingrealtimeonlinedealingservices–

findoutmorebyvisitingmonksinvestmenttrust.co.uk.

Sources of Further Information on the Company

ThepriceofsharesisquoteddailyintheFinancialTimes

andcanalsobefoundontheCompany’swebsiteat

monksinvestmenttrust.co.uk andonotherfinancialwebsites.

CompanyfactsheetsarealsoavailableontheCompany’swebsite

andareupdatedmonthly.TheseareavailablefromBaillieGiffordon

request.

Monks Share Identifiers

ISIN GB0030517261

Sedol 3051726

Ticker MNKS

LegalEntityIdentifier213800MRI1JTUKG5AF64

TheordinarysharesoftheCompanyarelistedontheLondon

StockExchangeandtheirpriceisshownintheFinancialTimes

under‘InvestmentCompanies’.

Key Dates

TheInterimReportisissuedinDecemberandtheAnnualReport

isnormallyissuedinJuly.The2022AGMisbeingheldatthestart

ofSeptember.Dividendswillbepaidbywayofasinglefinal

paymentshortlyaftertheCompany’sAGM.

Capital Gains Tax

ForCapitalGainsTaxindexationpurposes,themarketvalueofan

ordinaryshareintheCompanyasat31March1982(asadjusted

forthefiveforonesharesplitinJuly2001)was14.1p.

Analysis of Shareholders at 30 April

Name

2022

Number

2022

2021

Number

2021

Institutions 30,293,640 13.3 35,471,681 15.0

Intermediaries 186,542,056 81.9 185,179,929 78.3

Individuals 10,247,908 4.5 14,363,343 6.1

Marketmakers 561,705 0.3 1,438,906 0.6

227,645,309 100.0 236,453,859 100.0

Share Register Enquiries

ComputershareInvestorServicesPLCmaintainstheshareregister

onbehalfoftheCompany.Intheeventofqueriesregarding

sharesregisteredinyourownname,pleasecontacttheRegistrars

on03707071170.Thishelplinealsooffersanautomated

self-servicefunctionality(available24hoursaday,7daysaweek)

whichallowsyouto:

— hearthelatestshareprice;

— confirmyourcurrentshareholdingbalance;

— confirmyourpaymenthistory;and

— orderChangeofAddress,DividendBankMandateandStock

Transferforms.

YoucanalsocheckyourholdingontheRegistrars’websiteat

investorcentre.co.uk.Theyalsoofferafree,secureshare

managementwebsiteservicewhichallowsyouto:

— viewyourshareportfolioandseethelatestmarketpriceof

yourshares;

— calculatethetotalmarketpriceofeachshareholding;

— viewpricehistoriesandtradinggraphs;

— registertoreceivecommunicationsfromtheCompany,

includingtheAnnualReport,inelectronicformat;

— updatebankmandatesandchangeaddressdetails;and

— useonlinedealingservices.

Totakeadvantageofthisservice,pleaseloginat

investorcentre.co.ukandenteryourShareholderReference

NumberandCompanyCode(thisinformationcanbefoundon

thelastdividendvoucheroryoursharecertificate).

Further Shareholder Information

Shareholder Information

The Monks Investment Trust PLC 71

Dividend Reinvestment Plan

ComputershareoperateaDividendReinvestmentPlanwhichcan

beusedtobuyadditionalsharesinsteadofreceivingyourdividend

viachequeorintoyourbankaccount.Forfurtherinformationlog

on to investorcentre.co.ukandfollowtheinstructionsor

telephone03707071694.

Electronic Proxy Voting

Ifyouholdstockinyourownnameyoucanchoosetovoteby

returningproxieselectronicallyateproxyappointment.com.

Ifyouhaveanyquestionsaboutthisservicepleasecontact

Computershareon03707071170.

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.

Automatic Exchange of Information

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.

InaccordancewiththeAIFMRegulations,informationinrelation

totheCompany’sleverageandtheremunerationofthe

Company’sAIFM,BaillieGifford&CoLimited,isrequiredtobe

madeavailabletoinvestors.InaccordancewiththeRegulations,

theAIFMremunerationpolicyisavailableatbailliegifford.com or

onrequest(seecontactdetailsonthebackcover).Thenumerical

remunerationdisclosuresinrespectoftheAIFM’sreportingperiod

arealsoavailableatbailliegifford.com.

Alternative Investment Fund Managers (AIFM) Regulations

TheCompany’smaximumandactualleveragelevels(seeGlossary

ofTermsandAlternativePerformanceMeasuresonpages74to

76)at30April2022areasfollows:

Leverage

Gross method Commitment method

Maximumlimit 2.50:1 2.00:1

Actual 1.07:1 1.08:1

CREST Proxy Voting

IfyouareauseroftheCRESTsystem(includingaCRESTPersonal

Member),youmayappointoneormoreproxiesorgiveaninstruction

toaproxybyhavinganappropriateCRESTmessagetransmitted.

ForfurtherinformationpleaserefertotheCRESTManual.

Shareholder Information

72AnnualReport2022

Risks

Pastperformanceisnotaguidetofutureperformance.

MonksisaUKlistedcompany.Thevalueofitssharesandany

incomefromthemcanfallaswellasriseandinvestorsmaynot

getbacktheamountinvested.

Monksinvestsinoverseassecurities.Changesintheratesof

exchangemayalsocausethevalueofyourinvestment(andany

incomeitmaypay)togodownorup.

Marketvaluesforsecuritieswhichhavebecomedifficulttotrade

maynotbereadilyavailable,andtherecanbenoassurancethat

anyvalueassignedtosuchsecuritieswillaccuratelyreflectthe

priceMonksmightreceiveupontheirsale.

TheCompany’sriskcouldbeincreasedbyitsinvestmentin

unlisted(privatecompany)investments.Theseassetsmaybe

moredifficulttobuyorsell,sochangesintheirpricesmaybe

greater.

Monksinvestsinemergingmarketswheredifficultiesindealing,

settlementandcustodycouldarise,resultinginanegativeimpact

onthevalueofyourinvestment.

Monkshasborrowedmoneytomakefurtherinvestments

(sometimesknownas‘gearing’or‘leverage’).Theriskisthat

whenthismoneyisrepaidbytheCompany,thevalueofthe

investmentsmaynotbeenoughtocovertheborrowingand

interestcosts,andtheCompanywillmakealoss.Ifthe

Company’sinvestmentsfallinvalue,anyinvestedborrowings

willincreasetheamountofthisloss.

Monkscanbuybackitsownshares.Therisksfromborrowing,

referredtoabove,areincreasedwhentheCompanybuysback

itsownshares.

Monkscanmakeuseofderivativeswhichmayimpactonits

performance.Currently,theCompanydoesnotmakeuseof

derivatives.

Chargesaredeductedfromincome.Whereincomeislow,the

expensesmaybegreaterthanthetotalincomereceived,meaning

thattheCompanymaynotpayadividendandthecapitalvalue

wouldbereduced.

Sharepricesmayeitherbebelow(atadiscountto)orabove(ata

premiumto)thenetassetvalue(NAV).TheCompanymayissue

newshareswhenthepriceisatapremiumwhichwillreducethe

shareprice.Sharesboughtatapremiumcanthereforequickly

losevalue.

AstheaimofMonksistoachievecapitalgrowthyoushouldnot

expectasignificant,orsteady,annualincomefromtheCompany.

Youshouldnotethattaxratesandreliefsmaychangeatanytime

andtheirvaluedependsonyourcircumstances.

MonksislistedontheLondonStockExchangeandassuch

complieswiththerequirementsoftheFinancialConduct

Authority.ItisnotauthorisedorregulatedbytheFinancial

ConductAuthority.

Furtherdetailsoftherisksassociatedwithinvestinginthe

Company,includingaKeyInformationDocumentandhowcharges

areapplied,canbefoundatmonksinvestmenttrust.co.uk,orby

callingBaillieGiffordon08009172112.Thisinformationhasbeen

issuedandapprovedbyBaillieGifford&CoLimited,theManagers

andSecretaries,anddoesnotinanywayconstituteinvestment

advice.

TheFinancialStatementshavebeenapprovedbytheDirectorsof

The Monks Investment Trust PLC. Theinformationandopinions

expressedinthisdocumentaresubjecttochangewithoutnotice.

ThestaffofBaillieGiffordandMonksDirectorsmayholdsharesin

Monksandmaybuyorsellsuchsharesfromtimetotime.

Shareholder Information

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,

BG&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Governanceand

SustainablePrinciplesandGuidelinesasitspolicyonintegration

ofsustainabilityrisksininvestmentdecisions.

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.

MoredetailontheInvestmentManager’sapproachto

sustainabilitycanbefoundintheGovernanceandSustainability

PrinciplesandGuidelinesdocument,availablepubliclyonthe

BaillieGiffordwebsite(bailliegifford.com).

Taxonomy Regulation

TheTaxonomyRegulationestablishesanEU-wideframework

orcriteriaforenvironmentallysustainableeconomicactivitiesin

respectofsixenvironmentalobjectives.Itbuildsonthedisclosure

requirementsunderSFDRbyintroducingadditionaldisclosure

obligationsinrespectofAIFsthatinvestinaneconomicactivity

thatcontributestoanenvironmentalobjective.

TheCompanydoesnotcommittomakesustainableinvestments

asdefinedunderSFDR.Assuch,theunderlyinginvestmentsdo

nottakeintoaccounttheEUcriteriaforenvironmentally

sustainableeconomicactivities.

The Monks Investment Trust PLC 73

Monks on the Web

Up-to-dateinformationaboutMonkscanbefoundonthe

Company’spageoftheManagers’websiteat

monksinvestmenttrust.co.uk.YouwillfindfulldetailsonMonks,

includingrecentportfolioinformationandperformancefigures.

Trust Magazine

TrustistheBaillieGiffordinvestmenttrustmagazinewhichis

publishedtwiceayear.Itprovidesaninsighttoourinvestment

approachbyincludinginterviewswithourfundmanagers,aswell

ascontaininginvestmenttrustnews,investmentfeaturesand

articlesaboutthetrustsmanagedbyBaillieGifford,including

Monks. Trustplaysanimportantroleinhelpingtoexplainour

productssothatreaderscanreallyunderstandthem.

YoucansubscribetoTrustmagazineorviewadigitalcopyat

bailliegifford.com/trust.

Suggestions and Questions

Anysuggestionsonhowcommunicationswithshareholderscan

beimprovedarewelcome.PleasecontacttheBaillieGiffordClient

RelationsTeam(seecontactdetailsinthe‘FurtherInformation’

boxonthebackcover)andgivethemyoursuggestions.Theywill

alsobeveryhappytoanswerquestionsthatyoumayhaveabout

Monks.

Client Relations Team Contact Details

YoucancontacttheBaillieGiffordClientRelationsTeamby

telephone(yourcallmayberecordedfortrainingormonitoring

purposes),email,faxorpost.Seecontactdetailsinthe‘Further

Information’boxonthebackcover.

Please note that Baillie Gifford is not permitted to give

financial advice. If you would like advice please ask an

authorised intermediary.

Communicating with Shareholders

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therefrom.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,

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FTSE Index Data

Source:LondonStockExchangeGroupplcanditsgroup

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’‘Russell

’,‘FTSERussell

’,is/areatrade

mark(s)oftherelevantLSEGroupcompaniesandis/areusedby

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Shareholder Information

74AnnualReport2022

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

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.

2022

£’000

2022

per share

2021

£’000

2021

per share

Shareholders’funds(borrowingsatbookvalue) 2,479,164 1,089.0p 3,204,980 1,355.4p

Add:bookvalueofborrowings 214,826 94.4p 139,788 59.1p

Less:parvalueofborrowings (215,000) (94.4p) (140,000) (59.2p)

Netassetvalue(borrowingsatparvalue) 2,478,990 1,089.0p 3,204,768 1,355.3p

Thepersharefiguresabovearebasedon227,645,309(2021–236,453,859)ordinarysharesof5p,beingthenumberofordinarysharesin

issueattheyearend.

Net Asset Value (Borrowings at Fair Value) (APM)

Borrowingsarevaluedatanestimateofmarketworth.Thefairvalueofthe6

8%debenturestock2023iscalculatedusinga

comparabledebtapproachand/orbrokerquoteswhereavailable.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.

2022

£’000

2022

per share

2021

£’000

2021

per share

Shareholders’funds(borrowingsatbookvalue) 2,479,164 1,089.0p 3,204,980 1,355.4p

Add:bookvalueofborrowings 214,826 94.4p 139,788 59.1p

Less:fairvalueofborrowings (190,308) (83.6p) (133,524) (56.4p)

Netassetvalue(borrowingsatfairvalue) 2,503,682 1,099.8p 3,211,244 1,358.1p

Thepersharefiguresabovearebasedon227,645,309(2021–236,453,859)ordinarysharesof5p,beingthenumberofordinarysharesin

issueattheyearend.

Glossary of Terms and Alternative Performance Measures (APM)

Shareholder Information

The Monks Investment Trust PLC 75

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sharepricefrom

theNAVpershare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.

2022 2021

ClosingNAVpershare(borrowingsatpar) a 1,089.0p 1,355.3p

ClosingNAVpershare(borrowingsatfairvalue) b 1,099.8p 1,358.1p

Closingshareprice c  1,051.0p 1,396.0p

(Discount)/premium to NAV with borrowings at par (c-a)÷a (3.5%) 3.0%

(Discount)/premium to NAV with borrowings at fair value (c-b)÷b (4.4%) 2.8%

Net Liquid Assets

Netliquidassetscomprise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.

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.

2022

NAV

(par)

2022

NAV

(fair)

2022

Price

2021

NAV

(par)

2021

NAV

(fair)

2021

Price

ClosingNAVpershare/shareprice a 1,089.0p 1,099.8p 1,051.0p 1,355.3p 1,358.1p 1,396.0p

Dividendadjustmentfactor

* b 1.0015 1.0015 1.0014 1.0024 1.0024 1.0023

AdjustedclosingNAVpershare/shareprice c=axb 1,090.6p 1,101.4p 1,052.5p 1,358.5p 1,361.3p 1,399.2p

OpeningNAVpershare/shareprice d 1,355.3p 1,358.1p 1,396.0p 878.3p 875.6p 914.0p

Totalreturn (c÷d)-1 (19.5%) (18.9%) (24.6%) 54.7% 55.5% 53.1%

* Thedividendadjustmentfactoriscalculatedontheassumptionthatthedividendof2.00p(2021–2.50p)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.

2022 2021

Investmentmanagementfee £10,465,000 £10,011,000

Otheradministrativeexpenses £1,888,000 £1,656,000

Totalexpenses a £12,353,000 £11,667,000

Averagenetassetvalue(withborrowingsdeductedatfairvalue) b £3,114,257,000 £2,697,905,000

Ongoingcharges a÷b 0.40% 0.43%

Shareholder Information

76AnnualReport2022

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.ThegearingratiosdescribedbelowareincludedintheTenYearSummaryonpage17.

Grossgearing,alsoreferredtoaspotentialgearingistheCompany’sborrowingsexpressedasapercentageofshareholders’funds



cinthetablebelow).

Netgearing,alsoreferredtoasinvested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.

2022 2021

Borrowings(atbookcost) a £214,826,000 £139,788,000

Less:cashandcashequivalents (£35,879,000) (£108,723,000)

Less:salesforsubsequentsettlement (£4,741,000) –

Add:purchasesforsubsequentsettlement £7,045,000 £941,000

Adjustedborrowings b £181,251,000 £32,006,000

Shareholders’funds c £2,479,164,000 £3,204,980,000

Gross (potential) gearing a÷c 8.7% 4.4%

Net (invested) gearing b÷c 7.3% 1.0%

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.Theleveragefiguresat30April2022aredetailedonpage71.

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

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.

Shareholder Information

Directors

Chairman:

KS Sternberg

CM Boyle

BJ Richards

Professor Sir Nigel Shadbolt

JJ Tigue

Registered Office

Computershare

Investor Services PLC

Moor House

120 London Wall

London

EC2Y 5ET

Alternative Investment

Fund Managers and

Secretaries

Baillie Gifford & Co Limited

Calton Square

1 Greenside Row

Edinburgh

EH1 3AN

Tel: 0131 275 2000

bailliegifford.com

Registrar

Computershare

Investor Services PLC

The Pavilions

Bridgwater Road

Bristol

BS99 6ZZ

Tel: 0370 707 1170

Independent Auditor

Ernst & Young LLP

Atria One

144 Morrison Street

Edinburgh

EH3 8EX

Brokers

Investec Bank plc

30 Gresham Street

London

EC2V 7QP

Depositary

Bank of New York Mellon

(International) Limited

1 Canada Square

London

E14 5AL

Company Details

monksinvestmenttrust.co.uk

Incorporated in England and Wales

Company Registration

No. 00236964

ISIN GB0030517261

Sedol 3051726

Ticker MNKS

Legal Entity Identifier:

213800MRI1JTUKG5AF64

Further Information

Client Relations Team

Baillie Gifford & Co

Calton Square

1 Greenside Row

Edinburgh

EH1 3AN

Tel: 0800 917 2112

Email:

trustenquiries@bailliegifford.com