Annual Report and Financial Statements
30 April 2023
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 Financial
Conduct 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,
Markets Act 2000 immediately if you are in the United Kingdom or, if not, from another appropriately
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 Managers’ Report
7 The Managers’ Core Investment Beliefs
8 Investment Portfolio by Growth Category
10 Portfolio Positioning
11 List of Investments
14 Baillie Gifford’s Approach to Valuing
Private Companies
15 One Year Summary
16 Five Year Summary
17 Ten Year Summary
18 Business Review
Governance Report
23 Directors and Management
25 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
66 Notice of Annual General Meeting
68 Further Shareholder Information
68 Analysis of Shareholders
70 Automatic Exchange of Information
70 Alternative Investment Fund
Managers Regulations
70 Sustainable Finance Disclosure Regulation
71 Communicating with Shareholders
71 Third Party Data Provider Disclaimer
72 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.
The Monks Investment Trust PLC 01
Financial Highlights
Past performance is not a guide to future performance.
Share Price
*
(7.0%) NAV
*
(2.6%)
(borrowings at par)
NAV
*
(1.6%)
(borrowings at
fair value)
Benchmark
*
†
3.2%
*
Financial Highlights – Year to 30 April 2023
A
2022
DJ FMJ J
A
S
O N
A
2023
M
1200
1000
900
800
1100
A
2022
DJ FMJ J
A
S
O N
A
2023
M
(4)
(8)
(10)
(12)
(6)
A
2022
DJ FMJ J
A
S
O N
A
2023
M
110
105
100
90
95
Share Price (pence)
Share price
Discount
#
Discount (after deducting
borrowings at fair value
#
)
plotted as at month end
dates
NAV and Benchmark
(after deducting
borrowings at fair value
#
)
†
total return
†
#
02
Strategic Report
*
Past performance is not a guide to future performance.
Chairman’s Statement
Performance
**.
*.
Share Capital
we were pleased to issue new shares to former shareholders of
estimated reduction to the ongoing charges ratio of two basis
shares in the open market. Having issued shares when Monks
Borrowings and Gearing
Unlisted Exposure
the valuations of the small number of investments we hold
believe that unquoted companies offer us the means to gain
Management Expenses
enhance returns to shareholders. The total ongoing charges ratio
as asset growth recovers.
Earnings and Dividend
maintain investment trust status. Retained earnings are reinvested
Governance and Sustainability
individual businesses face is critical as the Manager seeks to
supports the portfolio managers in their engagement with
Monks Stewardship Report
The Monks Investment Trust PLC 03
Strategic Report
The Board
considered recent and anticipated developments in the commercial
and unquoted investment.
that there is an equal need to manage succession so as to ensure
adequate handover periods and retention of the corporate
Outlook
of the importance of valuation discipline. The aggressive period of
attractive growth companies with sustainable business models.
Annual General Meeting
at monksinvestmenttrust.co.uk
the meeting will be posted. Market announcements will also be
trustenquiries@bailliegifford.com or
KS Sternberg
Chairman
04
*
Past performance is not a guide to future performance.
Managers’ Report
Strategic Report
An environment for growth
than in the preceding decade and the operating environment is
stronger aggregate balance sheets than the broader market
to outcompete their peers over time and entrench their
competitive positions.
potential to drive positive returns for investors over the long term.
Performance
The current team has managed The Monks Investment Trust for
**) compared to the
*.
companies. This precipitated a sharp contraction in valuations
This has been the case where:
There have been companies in the portfolio for which strong
operational performance has been rewarded in share price terms.
has been taking positive steps in broadening the application of its
The market for Alnylam’s gene silencing treatment is expanding
The Monks Investment Trust PLC 05
Strategic Report
Positioning and optimism
and decisive moves on our part to sell holdings where operational
to capture this. Our latest Research Agenda outlines areas of
— Increased Return from Patience – during periods of fear and
— Infrastructure Upgrade
to be rebuilt and rewired to cope with more people and a
— New Growth Frontiers – if the growth engines of the past
concerns about falling enrolment numbers and the risk posed
Floor and Décor has been driving growth by
expanding across the US
The ongoing maintenance and upgrades of existing swimming
pools forms an important part of Pool Corp’s business model
06
Strategic Report
— Supply Side Importance
a preferred partner has been elevated as rates have increased.
Independent Investment Trust
Governance and Sustainability
numerous productive discussions with the management and the
Tencent to acquire shares at levels that appeared to favour the
seen in the Monks Stewardship Report 2022.
© CRH.
Following discussions with CRH management, the company’s
new decarbonisation target is encouraging
Outlook
broadening and the prospects for growth companies are as
compelling as ever. The operating environment for companies
invest in companies that grow their earnings over long periods –
look across the growth spectrum and around the world for ideas.
the greatest underappreciation of future growth. It is this future
the future.
Malcolm MacColl
The Monks Investment Trust PLC 07
Long-term Perspective
given time to drive returns.
during the inevitable periods of underperformance.
Dedicated Team with Clear Decision-making Process
Portfolio Construction
–
some of our smaller positions will
Low Cost
basis for adding value for shareholders.
Active Management
little interest to us.
— High active share
* provides the potential for adding value.
— Large swathes of the market are unattractive and of no
interest to us.
often for prolonged periods.
Committed Growth Investors
drives returns.
value.
of growth drivers within a disciplined framework.
The Managers’ Core Investment Beliefs
Strategic Report
*
08
Investment Portfolio by Growth Category
*
As at 30 April 2023
Growth Stalwarts Rapid Growth
Company characteristics
Durable franchise
environments
Company characteristics
markets
Highest
conviction
holdings
c.2.0% each
Microsoft
Service Corporation
International
Pernod Ricard
MasterCard
Prosus
Reliance Industries
Average sized
holdings
c.1.0% each
Meta Platforms
Prudential
Shiseido
Solutions
CoStar
The Trade Desk
Pharmaceuticals
The Schiehallion
Moderna
The Schiehallion
MercadoLibre
Illumina
Sea Limited
Incubator
holdings
c.0.5% each
adidas
Certara
Topicus.com
Doordash
Tesla
Coupang
Schibsted
Stripe
Staar Surgical
ICICI Prudential Life
Insurance
Midwich
Meituan
Novocure
Datadog
Technologies
Lemonade
Total in this growth category 36.8% Total in this growth category 30.7%
Time
Time
*
Strategic Report
The Monks Investment Trust PLC 09
Cyclical Growth
Company characteristics
structural growth prospects
Martin Marietta
Materials
CRH
Total in this
holding size
39.0%
Rio Tinto
TSMC
Richemont
Markel
Charles Schwab
SiteOne Landscape
SMC
Total in this
holding size
39.6%
Holdings
Pool Corporation
Howard Hughes
Sands China
Redrow
Persimmon
Sberbank of Russia
Total in this
holding size
21.4%
Total in this growth category 32.5%
Time
Strategic Report
10
Portfolio Positioning
As at 30 April 2023
Sectoral 2023 Geographical 2023
Industrials
13.3% (10.6%)
Technology
21.6% (20.6%)
Net Liquid Assets 1.7% (1.2%)
Financials
17.8% (21.1%)
Energy 2.6% (2.8%)
Basic Materials 4.0% (5.0%)
Consumer Staples
2.3% (2.0%)
Healthcare
12.5% (14.5%)
Consumer
Discretionary
22.4% (19.5%)
Real Estate 1.8% (2.7%)
North America
52.4% (54.0%)
Net Liquid Assets 1.7% (1.2%)
Emerging
Markets
10.9% (12.2%)
United Kingdom
8.6% (8.7%)
Developed Asia 4.9% (4.9%)
Continental Europe
16.3% (14.5%)
Japan 5.2% (4.5%)
airline.
—
This brackets a diverse range of businesses from internet winners in
developed and emerging economies to healthcare and semiconductor
companies. *
companies which seek to serve multiple stakeholders via a platform
—
—
Thematic Exposure
Industrial Demand
Platform Crush*
Transformational Health
Other
Middle Classes
Industrial Demand
Compounders
Net Liquid Assets 1.7%
Developed
Market Growth
18.4%
Developing
Economies
16.9%
New
Economy
37.9%
Economically
Agnostic
25.1%
Strategic Report
The Monks Investment Trust PLC 11
Name Business
Growth
category
Fair value
£’000
% of
total
assets
Cumulative
% of total
assets
Equities
Microsoft Software and cloud computing enterprise Stalwart 3.3
Elevance Health Healthcare insurer Stalwart
Prosus Rapid
Martin Marietta Materials Cement and aggregates manufacturer
Moody’s Stalwart
Service Corporation International Death care services Stalwart
Reliance Industries Rapid
Amazon.com Online retailer Rapid
Pernod Ricard Stalwart
CRH 25.8
The Schiehallion Fund* Rapid
The Schiehallion Fund – C Shares* Rapid
MasterCard Stalwart
Online search engine Stalwart
Insurance broker Stalwart
Stalwart
Meta Platforms Social networking website Stalwart
Optoelectronic products Stalwart 43.1
Rio Tinto
Prudential International life insurance Stalwart
TSMC Semiconductor manufacturer
Shiseido Stalwart
The Trade Desk Rapid
Richemont
Stalwart
Indian mortgage provider
Rapid
Chinese life insurer 55.4
Integrated circuits Stalwart
Stalwart
Markel
Moderna Rapid
Stalwart
Industrial equipment
Semiconductor testing equipment manufacturer
Software products and technologies Stalwart
List of Investments
As at 30 April 2023
*
Strategic Report
12
Strategic Report
Name Business
Growth
category
Fair value
£’000
% of
total
assets
Cumulative
% of total
assets
Stalwart 64.7
Charles Schwab Online savings and trading platform
Rapid
Rapid
Manufacturer of law enforcement devices Rapid
Online commerce platform Rapid
MercadoLibre Rapid
CoStar Stalwart
Commercial real estate operator
SMC 72.3
Industrial engineering products
Medical testing equipment Stalwart
Illumina Rapid
Sea Limited Online and digital gaming Rapid
Rapid
Online content platform including TikTok Rapid
Doordash Online commerce platform Rapid 79.0
Tesla Rapid
Coupang South Korean ecommerce Rapid
adidas Sports apparel manufacturer Stalwart
Schibsted Rapid
Rapid
Reseller of computer software Rapid
Online pet supplies retailer Stalwart
Rapid
Manufacturer of cables and electrical parts 84.4
Certara Stalwart
Pool Corporation Swimming pool supplies and equipment
Low cost airline
Rapid
Howard Hughes
Rapid
Sands China Macau casino operator 89.0
Topicus.com Stalwart
Cloud based data insight application Rapid
Redrow
The Monks Investment Trust PLC 13
Strategic Report
Name Business
Growth
category
Fair value
£’000
% of
total
assets
Cumulative
% of total
assets
Stripe Rapid
Rapid
Cloud based IT services business Rapid
Staar Surgical Implantable contact lenses Rapid
ICICI Prudential Life Insurance Life insurance services Rapid 93.0
Midwich Rapid
Rapid
Rapid
Rapid
Meituan Online commerce platform Rapid
Novocure
treatment Rapid
Cancer detection and treatment Rapid
Commercial kitchen equipment manufacturer Stalwart
96.1
Online fashion retailer Rapid
Online music streaming service Rapid
Persimmon
Datadog Rapid
Space rockets and satellites Rapid
Dating application Rapid
Lemonade Rapid
Rapid
98.2
Online home furnishings business Rapid
Rapid
Rapid
Sberbank of Russia
†
Russian commercial bank –
Medical implant manufacturer Rapid –
Total Investments 2,574,408 98.3 98.3
Net Liquid Assets
#
Total Assets
#
2,617,738 100.0 100.0
†
Suspended investment.
#
Listed
equities
%
Schiehallion
Fund
%
Unlisted
securities
‡
%
Net liquid
assets
#
%
Total
assets
#
%
30 April 2023 94.4 2.0 1.9 1.7 100.0
‡
#
14
process ensures that private companies are valued in both a fair
process.
or changes to the valuation of comparable public companies.
The valuations committee also monitors relevant market indices
Baillie Gifford’s Approach to Valuing Private Companies
companies (unquoted investments) as part of their audit.
The Monks Investment Trust*
Instruments valued 9
Revaluations performed
*
reporting period end.
prevailing market conditions. The average movement in both
is shown below.
Average
movement
in investee
company
valuation
Average
movement
in investee
company
share price
Instruments valued*
*
reporting period end.
which provides some downside protection.
the event of a corporate sale or liquidation.
Strategic Report
Private Company Instruments
Name Instrument
Fair value at
30 April 2023
£’000 % of total assets
Common Stock
Stripe
Stripe Series H Preference
Stripe Series I Preference
Class C Common
Total private company investments 53,137 1.9
*
Total unlisted investments 54,418 1.9
Total direct and indirect unlisted exposure 107,695 3.9
*
The Monks Investment Trust PLC 15
30 April
2023
30 April
2022 % change
Total assets (before deduction of borrowings)
†
†
Share price
#
Ongoing charges
†
†
†
†
Net gearing
†
†
Year to 30 April 2023 2022
Total return performance%
‡
Net asset value (borrowings at par)
†
Net asset value (borrowings at fair value)
†
Share price
†
#
Year to 30 April 2023 2023 2022 2022
Year’s high and low High Low High Low
Net asset value (borrowings at par)
†
Net asset value (borrowings at fair value)
†
Share price
†
) ranged
from a discount
†
†
†
†
Year to 30 April 2023 2022
Net return per ordinary share
Revenue
Capital
Total (29.77p) (264.91p)
*
†
#
‡
One Year Summary
*
Strategic Report
Past performance is not a guide to future performance.
16
The following charts indicate how an investment in Monks has performed relative to
†
Premium/(discount)
to Net Asset Value
#
5 Year Total Return Performance
#
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
‡
.
NAV total return
#¶
Share price total return
#
2019
Years to 30 April
2020 2021
2022
2023
40%
0%
20%
(40%)
(20%)
2018
Cumulative to 30 April
2020 2021
2022
2023
2019
Sour
ce: Refinitiv
and relevant underlying index providers
‡
.
NAV total return
#¶
Share price total return
#
FTSE World Index
†
total return
80
120
200
100
140
160
180
Source: Refinitiv/Baillie Gifford.
Monks premium/(discount) (after deducting borrowings at fair value)
#
Monks premium/(discount) (after deducting borrowings at par)
#
2018
Years to 30 April
2020 2021
2022
2023
2019
(15%)
10%
(10%)
(5%)
5%
0%
Five Year Summary
*
Strategic Report
Annual Net Asset Value and Share Price
Total Returns
#
Source: Refinitiv/Baillie Gifford.
NAV total return
#¶
Share price total return
#
2019
Years to 30 April
2020 2021
2022
2023
60%
0%
30%
(30%)
Past performance is not a guide to future performance.
*
†
#
‡
¶
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
share
‡
p
Dividend paid
and proposed
per share
net
p
Ongoing *
charges
¶
%
Net
(invested)
gearing
#
%
Gross
(potential)
gearing
#§
%
9
2023 30,211 10,714 4.70 3.15 0.43 5 7
Cumulative Performance (taking 2013 as 100)
At
30 April
NAV
per share
(fair) *
NAV
total return
^
(fair) *
Share
price
Share price
total *
return
^
Comparative
Index
^
Comparative
Index
total
return
^
Revenue
earnings
per
share
Dividend
paid and
proposed
per share
(net)
Retail
price
index
^
333 393
2023 265 276 275 287 228 289 100 80 149
Compound annual returns
*
†
#
‡
¶
§
^
Capital
At
30 April
Total
assets *
£’000
Borrowings
£’000
Shareholders’
funds *
£’000
Shareholders’
funds
per share
†
p
NAV
per share
†
(par)
p
NAV
per share
†
(fair)
p
Share
price
p
Premium/ *
(discount)
#
(par)
%
Premium/ *
(discount)
#
(fair)
%
2023 2,617,738 174,858 2,442,880 1,058.5 1,058.5 1,080.0 975.0 (7.9) (9.7)
Strategic Report
Past performance is not a guide to future performance.
18
Business Model
Business and Status
public listed companies and their shares are traded on the
Regulations.
Purpose
The Monks Investment Trust aims to deliver above average
Objective and Policy
the investment case.
eliminating investment risk in its investments and protection
The shares are not considered to be a suitable investment for
those seeking a regular or rising income.
this is considered to be appropriate on investment grounds.
Culture and Values
providers with whom shareholders and other stakeholders
the highest standards of business conduct.
Performance
Key Performance Indicators
— ongoing charges.
comparable companies.
Strategic Report
Business Review
The Monks Investment Trust PLC 19
Borrowings
Principal and Emerging Risks
regular basis. The Directors have carried out a robust assessment
being managed or mitigated is set out below.
the relevant risks.
Financial Risk
therefore market related and include market risk (comprising
pandemic and owing to macroeconomic and geopolitical
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
Investment Strategy Risk
Manager.
Strategic Report
Climate and Governance Risk – as investors place increased
includes assessment of the risks inherent in climate change
Regulatory Risk
change could impose disproportionate compliance burdens on
ensure that the special circumstances of investment trusts are
processes and procedures are in place to ensure adherence to
reference to inside information.
Custody and Depositary Risk
Operational Risk
provide accurate reporting and monitoring or a misappropriation
20
Discount Risk
shareholders.
Political and Associated Economic Risk – political change
Leverage Risk
can also make use of derivative contracts. To mitigate this risk
investment
managers
.
Emerging Risks
risks arise from the interconnectedness of global economies
than to invalidate the investment rationale over the long term.
Strategic Report
Viability Statement
taken into account a number of factors including the investment
to operate over that period.
In making this assessment the Directors have taken into account
investment portfolio. The Directors have also considered the
consideration of risk of further market deterioration resulting from
geopolitical concerns and macroeconomic pressures. The stress
The Monks Investment Trust PLC 21
Promoting the Success of the Company
(Section 172 Statement)
below.
pandemic. The Chairman is available to meet with shareholders
when considering how best to promote the success of the
ensuring that appropriate and regular challenge is brought and
evaluation conducted. This approach aims to enhance service
business conduct.
longstanding aim of providing a sustainable basis for adding value
monksinvestmenttrust.co.uk.
suitable consideration is given to the range of factors to which
the Directors should have regard. In addition to ensuring that the
of the recruitment process and subsequent appointment of
3
— the decision to authorise the preparation of a prospectus
shareholder approval for a combination with The Independent
Strategic Report
22
Employees, Human Rights and Community Issues
issues.
Gender Representation
Environmental, Social and Governance Policy
website at bailliegifford.com.
Future Developments of the Company
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.
CM Boyle
Claire Boyle was appointed a Director in 2020.
Directors and Management
Dr D Chaya
Dina Chaya was appointed a Director with effect from
30 November 2022.
BJ Richards
Belinda Richards was appointed a Director in 2016. She is a
Governance Report
24
Governance Report
Prof Sir Nigel Shadbolt
Professor Sir Nigel Shadbolt was appointed a Director in 2017.
Data Institute.
JJ Tigue
Jeremy Tigue was appointed a Director in 2014. He became
Mercantile Investment Trust plc. He was a director of the
Managers and Secretaries
Spencer Adair
Malcolm MacColl
The Monks Investment Trust PLC 25
Directors’ Report
The Directors present their Report together with the audited
Corporate Governance
and forms part of this Report.
Managers and Company Secretaries
and secretarial arrangements on an ongoing basis and a formal
and the delegation of investment management services to
Depositary
and leverage requirements.
Directors
shareholders.
Directors’ Indemnity and Insurance
in which the Director is convicted or civil proceedings brought
Dividends
Share Capital
Capital Structure
the shares.
Governance Report
26
Dividends
Capital Entitlement
proportion to their shareholdings.
Voting
Major Interests in the Company’s Shares
Annual General Meeting
Issuance of Shares
Reconstruction as set out in the Circular and Prospectus dated
if earlier.
Purchase of Own Shares
purchasing shares at a discount to the prevailing net asset value.
then:
value.
(ii) the higher of the price of the last independent trade and the
highest current independent bid for a share on the London
Governance Report
The Monks Investment Trust PLC 27
share for the remaining shareholders and if it is in the best
Articles of Association
Financial Instruments
disclosed in note
Disclosure of Information to Auditor
information.
Post Balance Sheet Events
Independent Auditor
Greenhouse Gas Emissions and Streamlined
Energy & Carbon Reporting (‘SECR’)
information.
Bribery Act
Criminal Finances Act 2017
Recommendation
as it is their view that the resolutions are in the best interests
of shareholders as a whole.
KS Sternberg
Chairman
Governance Report
28
Corporate Governance Report
companies and can be found at theaic.co.uk
frc.org.uk.
Compliance
The Board
including the determination and embodiment of its culture and
values. It has a number of matters reserved for its approval
Directors all of whom are
The Chairman is responsible for organising the business of
performance appraisal and chairs the Nomination Committee
There is an agreed procedure for Directors to seek independent
Nomination Committee
The Nomination Committee consists of all the Directors and Karl
Sternberg is the Chairman of the Committee. The Committee
required. The Committee has written terms of reference which
also considers whether Directors should be recommended for
monksinvestmenttrust.co.uk.
Appointments to the Board
in formal letters of appointment which are available for inspection
on request.
Diversity Policy
prefer not to disclose their ethnic background. In such
Governance Report
The Monks Investment Trust PLC 29
Diversity of the Board
to the Parker Review recommendations. The Nomination
criteria.
Board as at 30 April 2023
Sex Number %
Senior
roles
Men 3 3
3
Ethnic Background Number %
Senior
roles
3
Independence of Directors
The Directors recognise the importance of succession planning
Chair and Senior Independent Director.
Governance Report
Policy on Chairman’s Tenure
that an appropriate combination of these factors is essential for
Committee considers long term succession planning for this role
as part of its broader remit to ensure an appropriate level of
Meetings
the combination with The Independent Investment Trust PLC.
serving at that date.
Directors’ Attendance at Meetings
Board
Audit
Committee
Management
Engagement
Committee
Nomination
Committee
Number of meetings 4 2 1 1
*
Professor Sir Nigel Shadbolt
KS Sternberg
†
*
†
30
Performance Evaluation
responding to an evaluation questionnaire each Director had an
contribution of individual Directors and the overall effectiveness
each Director and the Chairman remain committed to the
Induction and Training
New Directors are provided with an induction programme which is
tailored to the particular circumstances of the appointee. During the
Management Engagement Committee
the management contract is competitive and reasonable for the
member of the Committee to be independent. To discharge its
monksinvestmenttrust.co.uk.
Remuneration
Audit Committee
Internal Controls and Risk Management
against material misstatement or loss.
and maintenance of control policies and procedures to safeguard
including the maintenance of effective operational and compliance
controls have been delegated to the Managers and Secretaries.
their monitoring programmes. The reporting procedures for these
assess whether further action is required to manage these risks.
place up to the date of approval of this Report.
Governance Report
The Monks Investment Trust PLC 31
ownership and maintaining a record of other assets and
are investigated.
monitoring activities.
to ensure that effective risk management policies and procedures
Going Concern
concern.
status is affected.
principal and emerging risks and other matters set out in the
which is for a period of at least twelve months from the date of
Relations with Shareholders
The Chairman has maintained open lines of communication with
matters. The Chairman is available to meet with shareholders
for each resolution is announced at the meeting and is published
at monksinvestmenttrust.co.uk subsequent to the meeting.
monksinvestmenttrust.co.uk.
Corporate Governance and Stewardship
when selecting and retaining investments and has asked the
Managers to take these issues into account. The Managers do
with the aim of improving the relevant policies and management
bailliegifford.com.
monksinvestmenttrust.co.uk.
Governance Report
32
Climate Change
result in companies that are high emitters of carbon facing greater
true environmental impact of their activities.
prioritise engagement and understand what higher emitting
bailliegifford.com
monksinvestmenttrust.co.uk.
KS Sternberg
Chairman
Governance Report
The Monks Investment Trust PLC 33
Audit Committee Report
its written terms of reference which are available on request from
monksinvestmenttrust.co.uk.
Main Activities of the Committee
permanent risk function provided reports on their monitoring
— internal controls reports received from the Managers and
Internal Audit
The Committee continues to believe that the compliance and internal
Financial Reporting
Internal Controls which details the controls in place regarding
recording and pricing of investments and the reconciliation of
in valuing such investments. The Managers agreed the portfolio
Controls which details the controls in place regarding
completeness and accurate recording of investment income.
The accounting treatment of each special dividend received
The Committee considered the factors that might affect the
together with reports from the Managers on the cash position
accordance with applicable law and accounting standards.
Governance Report
34
Internal Controls and Risk Management
External Auditor
combination with The Independent Investment Trust PLC (IIT) in
debenture trustee. Costs of the combination with IIT have been
connection with share issuance.
audit partner. The audit partners responsible for the audit are to be
Regulatory Compliance
Accountability and Audit
Governance Report
The Monks Investment Trust PLC 35
Directors’ Remuneration Report
This report has been prepared in accordance with the
Statement by the Chairman
Chair or Senior Independent Director. The fee levels were last
Directors’ Remuneration Policy
set at a reasonable level that is commensurate with the duties
and responsibilities of the role and consistent with the requirement
schemes. There is no notice period and no compensation is
Limits on Directors’ Remuneration
in arrears and are determined within the limit set out in the
in aggregate.
Expected
fees for
year ending
30 Apr 2024
£
Fees as at
30 Apr 2023
£
*
Independent Director
*
*
Annual Report on Remuneration
Directors’ Remuneration for the Year (audited)
the entire remuneration paid to the Directors.
Name
2023
Fees
£
2023
Taxable
benefits
†
£
2023
Total
£
2022
Fees
£
2022
Taxable
benefits
†
£
2022
Total
£
– – – –
–
Professor Sir Nigel Shadbolt –
KS Sternberg (Chair) –
–
200,167 4,064 204,231 179,000 165 179,165
†
Governance Report
36
Annual Percentage Change in Remuneration
This represents the annual percentage change in the fees paid to the Directors.
Name % change from 2022 to 2023 % change from 2021 to 2022 % change from 2020 to 2021
3.3 –
* – –
3.3
Professor Sir Nigel Shadbolt 3.3
3.3
*
* Thes
Cumulative years to 30 April
2015 2018 20212020
20232022
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.
A
ll figures are total returns (see Glossary of Terms and Alternative Performance
Measures on pages 72 to 74).
#
See disclaimer on page 71.
2013
201720162014 2019
50
450
150
350
250
200
100
400
300
Performance Graph
Company Performance
The following graph compares the share price total return
shareholders compared with the total shareholder return on a
notional investment made up of shares in the component parts of
Approval
KS Sternberg
Chairman
Governance Report
Directors’ Interests (audited)
Name
Nature
of interest
Ordinary 5p
shares held at
30 April 2023
Ordinary 5p
shares held at
30 April 2022
– –
– –
Professor Sir
Nigel Shadbolt
– –
KS Sternberg
Statement of Voting at Annual General Meeting
were withheld.
Relative Importance of Spend on Pay
2023
£’000
2022
£’000
Change
%
Dividends paid to shareholders
The Monks Investment Trust PLC 37
and regulations.
continue in business.
The Directors are responsible for keeping adequate accounting
hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
Statement that complies with that law and those regulations.
to the best of their knowledge:
— the Strategic Report includes a fair review of the development
and performance of the business and the position of the
and uncertainties that it faces.
KS Sternberg
Chairman
Statement of Directors’ Responsibilities in Respect
of the Annual Report and the Financial Statements
Governance Report
38
Opinion
reporting framework that has been applied in their preparation is
— have been prepared in accordance with the requirements
Basis for opinion
Independence
ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
to adopt the going concern basis of accounting included:
addressed those matters which we considered important.
statements were authorised for issue. In preparing the cash
the debt covenants as a result of a reduction in the value of
in the annual report in order to assess that the disclosures
reporting standards.
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
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 or ownership of
the investment portfolio
Risk of Incomplete or inaccurate revenue
special dividends as revenue or capital in
the Income Statement
Materiality
An Overview of the Scope of Our Audit
Tailoring the Scope
the potential impact of climate change and changes in the
business environment when assessing the level of work to be
engagement team which included our valuation specialists.
Climate Change
There has been increasing interest from stakeholders as to
misstated.
Our audit effort in considering climate change was focused on
no further impact of climate change to be taken into account as
the investments are valued based on market pricing as required
listed comparable companies or recent market transactions and
Financial Report
Key Audit Matters
assessed risks of material misstatement (whether or not due to
and we do not provide a separate opinion on these matters.
40
Risk
Our response
to the risk
Key observations communicated
to the Audit Committee
Incorrect valuation or ownership of the
investment portfolio
(as described on
Committee and as per the accounting
The valuation of the investment portfolio
quoted investments with an aggregate
and unquoted investments (including
The valuation of the assets held in the
return. Incorrect investment pricing or a
failure to maintain proper legal title to the
valuation and the return generated for
shareholders.
The fair value of quoted investments is
the last traded price depending on the
investment is quoted.
review and appropriate challenge of the
consistent with the International Private
and the resultant impact on the unrealised
as an area of fraud risk as highlighted
We performed the following procedures:
and controls surrounding legal title and pricing of quoted
procedures in which we evaluated the design of controls.
pricing vendor and recalculated the investment valuations as
the audit team or our valuation specialists reviewed and
challenged the valuations. This included:
the valuation methodologies and assumptions.
valuation approach and a follow up meeting to challenge
that have an impact on the fair market value of the
valuation is reasonable.
valuation process and requested further support for the
purchase cost per the accounting records and to the bank
statements.
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,
special dividends as revenue or capital
items in the Income Statement (per the
Included in total revenue was revenue
received from special dividends of
There is a risk of incomplete or inaccurate
recognition of revenue through the failure
to recognise proper income entitlements
treatment.
income receivable in the form of special
area of fraud risk as highlighted below on
We have performed the following procedures:
and controls surrounding revenue recognition including the
procedures.
dividends had been recorded for a sample of investee
obtained from an independent data vendor.
the dividend rate to corresponding announcements made
above our testing threshold.
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.
Our Application of Materiality
the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually
Materiality provides a basis for determining the nature and
performance.
Performance Materiality
The application of materiality at the individual account or
low level the probability that the aggregate of uncorrected and
threshold for the revenue column of the Income Statement of
Financial Report
42
Reporting Threshold
warranted reporting on qualitative grounds.
of other relevant qualitative considerations in forming our opinion.
Other Information
The other information comprises the information included in
the other information contained within the annual report.
thereon.
we conclude that there is a material misstatement of the other
Opinions on Other Matters Prescribed by the
Companies Act 2006
the audit:
prepared in accordance with applicable legal requirements.
Matters on Which we are Required to Report by
Exception
adequate for our audit have not been received from branches
Remuneration Report to be audited are not in agreement
we require for our audit.
Corporate Governance Statement
concluded that each of the following elements of the Corporate
assessment of the emerging and principal risks set out
— The section of the annual report that describes the review
of effectiveness of risk management and internal control
Financial Report
The Monks Investment Trust PLC 43
Responsibilities of Directors
to fraud or error.
concern and using the going concern basis of accounting unless
Auditor’s Responsibilities for the Audit of the
Financial Statements
the economic decisions of users taken on the basis of these
Explanation as to What Extent the Audit was
Considered Capable of Detecting Irregularities,
Including Fraud
fraud. The risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from
detection of fraud rests with both those charged with governance
to the incomplete or inaccurate revenue recognition through
fraud risk with respect to the incorrect valuation of the
unquoted investments and the resultant impact on unrealised
response to the fraud risks and other areas of audit focus.
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
website at frc.org.uk/auditorsresponsibilities. This description
Other Matters we are Required to Address
of total uninterrupted engagement including previous
— The audit opinion is consistent with the additional report
Use of Our Report
or for the opinions we have formed.
Financial Report
44
Income Statement
For the year ended 30 April
Notes
2023
Revenue
£’000
2023
Capital
£’000
2023
Total
£’000
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
Losses on investments 9 – (78,421) – (631,829)
– 293 – (308)
Income – 30,211 – 27,811
Investment management fee 3 – (8,878) – (10,465)
– (1,833) – (1,888)
and taxation (58,628) (616,679)
– (7,225) – (5,298)
Net return on ordinary activities
before taxation (65,853) (621,977)
(1,991) (1,223)
Net return on ordinary activities
after taxation 10,714 (78,558) (67,844) 8,644 (631,844) (623,200)
Net return per ordinary share 4.70p (34.47p) (29.77p) 3.67p (268.58p) (264.91p)
Note:
3.15p 2.35p
Financial Report
The Monks Investment Trust PLC 45
Balance Sheet
As at 30 April
Notes
2023
£’000
2023
£’000
2022
£’000
2022
£’000
Fixed assets
9
Current assets
Debtors
Cash and cash equivalents
Creditors
Net current liabilities
Total assets less current liabilities
Creditors and Provisions
Loan notes
2,442,880 2,479,164
Capital and reserves
Share capital
Share premium account
Capital redemption reserve
Capital reserve
Revenue reserve
Shareholders’ funds 2,442,880 2,479,164
Shareholders’ funds per ordinary share 1,058.5p 1,089.0p
(borrowings at book value)
KS Sternberg
Chairman
Financial Report
46
Statement of Changes in Equity
For the year ended 30 April 2023
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
2,479,164
– – – (67,844)
– – – – (135,221)
– – 172,048
– – – – (5,267)
Shareholders’ funds at 30 April 2023 12,659 433,714 8,700 1,915,385 72,422 2,442,880
For the year ended 30 April 2022
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
3,204,980
– – – (623,200)
– – – – (97,887)
– – – – (4,729)
Shareholders’ funds at 30 April 2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164
Financial Report
The Monks Investment Trust PLC 47
Cash Flow Statement
For the year ended 30 April
Notes
2023
£’000
2023
£’000
2022
£’000
2022
£’000
Net losses on investments
Decrease in creditors
Cash from operations
*
Interest paid
Disposals of investments
–
Debenture repaid –
–
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 30 April 42,191 35,879
*
Financial Report
48
as an investment trust.
1 Principal Accounting Policies
of the accounting policies set out below which are unchanged from
(a) Basis of Accounting
the assumption that approval as an investment trust under section
concern status is affected.
the principal and emerging risks and other matters set out in the
which is a period of at least twelve months from the date of approval
items of a revenue and capital nature has been presented in the
Income Statement.
considered the impact of climate change risk as a principal risk
climate change risk.
(b) Financial Instruments
contractual provisions of the instrument.
(c) Accounting Estimates and Judgements
affect the reported amounts of assets and liabilities at the
Estimates
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
Comparable companies are chosen on the basis of their
to assist with the valuation validation or the application of
Notes to the Financial Statements
Financial Report
The Monks Investment Trust PLC 49
methods where possible to improve the robustness of the
of fair values. The risk of an over or under estimation of fair
values is greater when methodologies are applied using more
Judgements
(ii) the fair valuation of the unlisted investments.
appropriate following detailed review and challenge. The
(d) Investments
recognised in the Income Statement as capital items.
The fair value of listed investments is either the bid price or the
on which the investment is listed. The fair value of suspended
investments and unlisted investments in listed companies is
circumstances of the instrument in question.
Private Company Investments
Directors following a detailed review and appropriate challenge of
the valuation technique applied. The valuation approach recognises
appropriate starting point for estimating fair value at subsequent
including changes in the market or performance of the investee
— where there is an indication of a change in fair value as
(e) Cash and Cash Equivalents
(f) Income
income includes distributions from Collective Investment
are treated as capital items. Special dividends are treated as
revenue or capital items depending on the facts of each
particular case.
of the cash dividend declared is credited to the revenue
over the amount of the cash dividend foregone is recognised
as capital.
(iv) Interest receivable on deposits is recognised on an
accruals basis.
Financial Report
50
(g) Expenses
(transaction costs) which are charged to capital. Transaction costs
are detailed in note
9
(h) Borrowings and Finance Costs
for on an accruals basis using the effective interest rate method
and are allocated to revenue in the Income Statement.
(i) Taxation
which is charged to the revenue accounts where it relates to
income received and to capital where it relates to items of a
(j) Dividend Distributions
shareholders.
(k) Foreign Currencies
Transactions involving foreign currencies are converted at the rate
subsequent to the date of the transaction is included as an
revenue as appropriate.
(l) Share Premium Account
repurchase the shares.
(m) Capital Redemption Reserve
into the capital redemption reserve.
(n) Capital Reserve
capital nature are dealt with in this reserve. Purchases of the
purchase price of those shares and transferred to the capital
reserve.
(o) Revenue Reserve
dividend.
(p) Single Segment Reporting
Financial Report
The Monks Investment Trust PLC 51
2 Income
2023
£’000
2022
£’000
Income from investments
Overseas dividends
Other Income
Deposit Interest
Total Income 30,211 27,811
Total income comprises:
30,211 27,811
3 Investment Management Fee
2023
£’000
2022
£’000
Investment management fee 8,878 10,465
4 Other Administrative Expenses
2023
£’000
2022
£’000
*
†
†
–
1,833 1,888
*
run the programme.
†
Financial Report
52
5 Finance Costs of Borrowings
2023
£’000
2022
£’000
Debenture stocks
Loan notes
7,225 5,298
6 Tax on Ordinary Activities
2023
Revenue
£’000
2023
Capital
£’000
2023
Total
£’000
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
– –
– –
1,561 430 1,991 1,516 (293) 1,223
2023
£’000
2022
£’000
1,561 1,516
430 (293)
1,991 1,223
Factors that may Affect Future Tax Charges
Financial Report
The Monks Investment Trust PLC 53
7 Net Return per Ordinary Share
2023
Revenue
2023
Capital
2023
Total
2022
Revenue
2022
Capital
2022
Total
4.70p (34.47p) (29.77p) 3.67p (268.58p) (264.91p)
8 Ordinary Dividends
2023 2022 2023
£’000
2022
£’000
Amounts recognised as distributions in the year:
2023 2022 2023
£’000
2022
£’000
9 Fixed Assets – Investments
As at 30 April 2023
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed and suspended equities – 2,519,990
– – 54,418
2,466,713 53,277 54,418 2,574,408
As at 30 April 2022
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed and suspended equities 2,605,406
– – 56,609
2,479,464 120,306 62,245 2,662,015
Financial Report
54
9 Fixed Assets – Investments (continued)
Fair Value Hierarchy
to the fair value measurement.
Level 1
Level 2
Level 3 – using inputs that are unobservable (for which market data is unavailable).
2023
Listed
securities
£’000
2023
Unlisted
securities *
£’000
2023
Total
securities
£’000
2022
Total
securities
£’000
2,605,406 56,609 2,662,015 3,238,130
Purchases at cost
†
– –
Sales proceeds received –
Losses on investments
2,519,990 54,418 2,574,408 2,662,015
2,519,990 54,418 2,574,408 2,662,015
* Includes holdings in ordinary shares, preference shares and contingent value rights.
†
See notes 13 and 14 for further detail on the Scheme of Reconstruction and issuance of new shares in the Company to former shareholders of
The Independent Investment Trust PLC (IIT) in return for cash and equities from the former IIT portfolio.
2023
£’000
2022
£’000
Net (losses)/gains on investments:
Changes in investment holding gains
(78,421) (631,829)
2023
Shares
held
2023
Value
£’000
2023
% of Shares
held
2022
Shares
held
2022
Value
£’000
2022
% of Shares
held
Financial Report
The Monks Investment Trust PLC 55
10 Debtors
2023
£’000
2022
£’000
Amounts falling due within one year:
Investment sales awaiting settlement
Share issuance proceeds awaiting settlement
20,441 8,072
11 Creditors – Amounts falling due within one year
2023
£’000
2022
£’000
3
–
Investment purchases awaiting settlement
–
Other creditors and accruals
93,142 126,257
Borrowing Facilities
million
.
–
none).
Debenture Stock
3
Financial Report
56
12 Creditors and Provisions – Amounts falling due after more than one year
Repayment
date
Nominal
rate
Effective
rate
2023
£’000
2022
£’000
99,858 99,853
101,018 100,545
Unsecured Loan Notes
Provision for Tax Liability
13 Share Capital
2023
Number
2023
£’000
2022
Number
2022
£’000
Total 253,171,460 12,659 236,453,859 11,823
Financial Report
The Monks Investment Trust PLC 57
14 Capital and Reserves
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
2,479,164
Losses on investments – – – – (78,421)
– – – – 293
notional capital gains – – – – (430)
– – – – 10,714
– – – – (135,221)
– – 172,048
– – – – (5,267)
12,659 433,714 8,700 1,915,385 72,422 2,442,880
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
3,204,980
– – – – (631,829)
– – – – (308)
notional capital gains – – – – 293
– – – – 8,644
– – – – (97,887)
– – – – (4,729)
11,823 262,183 8,700 2,129,483 66,975 2,479,164
15 Shareholders’ Funds Per Ordinary Share
2023 2022
Financial Report
58
16 Analysis of Change in Net Debt
At 1 May
2022
£’000
Cash flows
£’000
Other
non-cash
changes
£’000
Exchange
movement
£’000
At 30 April
2023
£’000
Cash at bank and in hand –
– – –
Debenture stocks – –
Loan notes – –
(178,947) 46,019 (32) 293 (132,667)
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 –
– – –
Debenture stocks – (33) –
Loan notes – –
(31,065) (147,536) (38) (308) (178,947)
17 Contingent Liabilities, Guarantees and Financial Commitments
18 Transactions with Related Parties and the Managers and Secretaries
19 Financial Instruments
Market Risk
individual investment decisions and monitor the overall level of market risk across the investment portfolio on an ongoing basis.
Financial Report
The Monks Investment Trust PLC 59
19 Financial Instruments (continued)
Currency Risk
is shown below.
At 30 April 2023
Investments
£’000
Cash and
cash
equivalents
£’000
Loans, loan
notes and
debentures
£’000
Other debtors
and creditors *
£’000
Net
exposure
£’000
–
– –
– –
Other overseas currencies –
–
Sterling
2,574,408 42,191 (174,858) 1,139 2,442,880
*
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
– –
– –
– –
Other overseas currencies –
–
Sterling 10,955
2,662,015 35,879 (214,826) (3,904) 2,479,164
*
Currency Risk Sensitivity
2023
£’000
2022
£’000
Other overseas currencies
115,737 123,410
Financial Report
60
19 Financial Instruments (continued)
Interest Rate Risk
Financial Assets
comprising its cash and short term deposits.
Financial Liabilities
2023
£’000
2022
£’000
174,858 214,826
2023
Within
1 year
£’000
2023
Between 1
and 5 years
£’000
2023
More than
5 years
£’000
2022
Within
1 year
£’000
2022
Between 1
and 5 years
£’000
2022
More than
5 years
£’000
– –
Interest on loans and debentures
78,950 7,296 141,964 120,327 7,296 143,788
Interest Rate Risk Sensitivity
Other Price Risk
Financial Report
The Monks Investment Trust PLC 61
19 Financial instruments (continued)
Other price risk sensitivity
had an equal but opposite effect.
As at 30 April 2023 Significant unobservable inputs*
Valuation approach
Fair value as
at 30 April
2023
£’000
Key
unobservable
inputs
Other
unobservable
inputs† Range
Sensitivity
%
Sensitivity to changes
in significant
unobservable inputs
Market approach
using comparable
traded multiples
multiple
#
and Discounts
g
the fair value would
If the transaction
discount is changed
performance
Selection of
comparable
companies and
relevant indices
¶
If input comparable
the fair value would
Sum of the parts
^
multiple
#
and input comparable
the fair value would
Recent transaction
price
*
†
#
¶
^
valuations.
Financial Report
62
19 Financial instruments (continued)
Other price risk sensitivity (continued)
As at 30 April 2022 Significant unobservable inputs*
Valuation approach
Fair value as
at 30 April
2022
£’000
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Sensitivity
%
Sensitivity to changes
in significant
unobservable inputs
Market approach
using comparable
trading multiples
multiple
#
Discount for lack of
e
the fair value would
If the transaction
discount is changed
value would change
performance
Selection of
comparable
companies and
relevant indices
¶
If input comparable
the fair value would
Recent transaction
price
Sum of the parts
^
multiple
#
Selection of
comparable
companies
¶
and input comparable
the fair value would
†
#
¶
^
overall valuation is the summation of these separate valuations.
*
(a) Application of valuation basis
Financial Report
The Monks Investment Trust PLC 63
19 Financial Instruments (continued)
(b) Probability estimation of liquidation events
(c) Selection of comparable companies
(d) Estimated sustainable earnings
(e) Application of illiquidity discount
(f) Selection of appropriate benchmarks
(g) Valuation premium and discount
(h) Execution risk
deal has been assessed and legal documentation received.
Liquidity Risk
Financial Report
64
19 Financial Instruments (continued)
Credit Risk
suffering a loss. This risk is managed as follows:
Credit Risk Exposure
2023
£’000
2022
£’000
Cash and cash equivalents
Debtors
62,632 43,951
Fair Value of Financial Assets and Financial Liabilities
3
of corporate debt with similar rates and maturities.
2023
Par
value
£’000
2023
Book
value
£’000
2023
Fair
value
£’000
2022
Par
value
£’000
2022
Book
value
£’000
2022
Fair
value
£’000
3
– – –
175,000 174,858 125,404 215,000 214,826 190,308
20 Capital Management
are set out in note
.
Financial Report
The Monks Investment Trust PLC 65
Meeting of The Monks Investment Trust PLC will be held at the
purposes:
grant of rights in respect of shares with an aggregate nominal
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
intend to attend in person). Shareholders are recommended to
agreement which would or might require Securities to be
the Directors shall be entitled to allot or grant Securities in
as special resolutions:
Notice of Annual General Meeting
Shareholder Information
66
cancellation) provided that:
be paid for a Share shall be not more than the higher of:
Notes
eproxyappointment.com no later than
euroclear.com/CREST.
appropriate action on their behalf.
communicated to the appointee through other means.
Ireland Limited does not make available special procedures in
Shareholder Information
The Monks Investment Trust PLC 67
sponsor or voting service provider(s) take(s) such action as
shareholders must be registered in the Register of Members
of Members after the relevant deadline shall be disregarded in
meeting.
to Nominated Persons. The rights described in those notes
and is intended to be moved at that meeting. The conditions
(a matter of business). The request must have been received
The conditions are that the matter of business must not be
the grounds for the request. Members seeking to do this should
conduct of the audit. Such requests must be made in writing
members who have a right to vote on the resolution to which
right to vote on the resolution to which the requests relate
trustenquiries@bailliegifford.com.
website at monksinvestmenttrust.co.uk.
relation to the same shares.
Shareholder Information
68
Company History
Monks is an Investment Trust. Investment Trusts
Offer Investors the Following:
and
realised within its portfolio although investors are still liable for
How to Invest
number of companies offering real time online dealing services –
monksinvestmenttrust.co.uk.
Sources of Further Information on the Company
monksinvestmenttrust.co.uk
request.
Ticker MNKS
Key Dates
Capital Gains Tax
Analysis of Shareholders at 30 April
Name
2023
Number
2023
%
2022
Number
2022
%
Institutions
Intermediaries
Individuals
Marketmakers
230,796,666 100.0 227,645,309 100.0
Share Register Enquiries
Computershare Investor Services PLC maintains the share register
Transfer forms.
at investorcentre.co.uk
— use online dealing services.
investorcentre.co.uk
Further Shareholder Information
Shareholder Information
The Monks Investment Trust PLC 69
Dividend Reinvestment Plan
Computershare operate a Dividend Reinvestment Plan which can
log on to investorcentre.co.uk and follow the instructions or
Electronic Proxy Voting
eproxyappointment.com.
CREST Proxy Voting
Risks
Past performance is not a guide to future performance.
get back the amount invested.
Monks invests in overseas securities. Changes in the rates of
price Monks might receive upon their sale.
greater.
the amount of this loss.
its own shares.
derivatives.
would be reduced.
of loss than those bought at a discount.
monksinvestmenttrust.co.uk
advice.
The Monks Investment Trust PLC. The information and opinions
Shareholder Information
70
Shareholder Information
Sustainable Finance Disclosure Regulation (‘SFDR’)
sustainable competitive advantages in their marketplace. To do
bailliegifford.com).
Taxonomy Regulation
sustainable economic activities.
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
shareholders and corporate entities.
Automatic Exchange of Information
for the purposes of collecting this information.
holders gov.uk/government/publications/exchange-of-
information-account-holders.
bailliegifford.com or
on request (see contact details on the back cover). The numerical
are also available at bailliegifford.com.
Alternative Investment Fund Managers (AIFM) Regulations
Leverage
Gross method Commitment method
The Monks Investment Trust PLC 71
Monks on the Web
monksinvestmenttrust.co.uk
Trust Magazine
Trust
Monks. Trust
Trust
bailliegifford.com/trust.
Suggestions and Questions
Monks.
Client Relations Team Contact Details
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
timeliness of the data contained herewith nor as to the results
(whether direct or indirect) resulting there from. No Provider has
information or materials contained herein.
Third Party Data Provider Disclaimer
FTSE Index Data
contained in this communication. No further distribution of data
Shareholder Information
72
Total Assets
of all borrowings.
Shareholders’ Funds
Net Asset Value (APM)
Net Asset Value (Borrowings at Par Value) (APM)
is provided below.
2023
£’000
2023
per share
2022
£’000
2022
per share
Less: par value of borrowings
Net asset value (borrowings at par value) 2,442,738 1,058.5p 2,478,990 1,089.0p
Net Asset Value (Borrowings at Fair Value) (APM)
provided below.
2023
£’000
2023
per share
2022
£’000
2022
per share
Less: fair value of borrowings
Net asset value (borrowings at fair value) 2,492,334 1,080.0p 2,503,682 1,099.8p
Glossary of Terms and Alternative Performance Measures (APM)
Shareholder Information
The Monks Investment Trust PLC 73
Discount/Premium (APM)
this situation is called a premium.
2023 2022
a
b
Closing share price c
Discount to NAV with borrowings at par (7.9%) (3.5%)
Discount to NAV with borrowings at fair value (9.7%) (4.4%)
Net Liquid Assets
Active Share (APM)
Unlisted, Unquoted and Private Company Investments
Total Return (APM)
below.
2023
NAV
(par)
2023
NAV
(fair)
2023
Share
Price
2022
NAV
(par)
2022
NAV
(fair)
2022
Share
Price
a
* b
d
Total return (2.6%) (1.6%) (7.0%) (19.5%) (18.9%) (24.6%)
*
Ongoing Charges (APM)
2023 2022
Investment management fee
a
b
Ongoing charges 0.43% 0.40%
Shareholder Information
74
Gearing (APM)
(a
c in the table below).
c in the table below)*.
*.
*
2023 2022
a
Less: cash and cash equivalents
Less: sales for subsequent settlement
b
c
Gross (potential) gearing 7.2% 8.7%
Net (invested) gearing 5.3% 7.3%
Leverage (APM)
Compound Annual Return (APM)
Treasury Shares
rights attaching to them.
Turnover (APM)
Shareholder Information
Directors
Chairman:
KS Sternberg
CM Boyle
Dr D Chaya
BJ Richards
Professor Sir Nigel Shadbolt
JJ Tigue
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
160 Queen Victoria Street
London
EC4V 4LA
Company Details
monksinvestmenttrust.co.uk
Incorporated in England and Wales
Company Registration
No. 00236964
ISIN GB0030517261
Sedol 3051726
Ticker MNKS
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