Annual Report and
Financial Statements
The Monks
Investment
Trust PLC
30 April 2024
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 (‘FCA’). They are not
authorised or regulated by the FCA.
The Monks Investment Trust PLC 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.
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.
If you reside in the United Kingdom and 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 reside outside the
United Kingdom, you should consult an 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.
01
The Monks Investment Trust PLC
Introduction
Financial highlights 02
Key characteristics 03
Strategic report
Chairman’s statement 06
Managers’ review 10
The Managers’ core investment beliefs 14
Environmental, social and governance engagement 15
Ten largest investments 16
Investment portfolio by growth category 20
List of investments 22
Baillie Gifford – valuing private companies 26
Portfolio positioning 27
One year summary 28
Five year summary 30
Ten year record 32
Business review 35
Governance report
Directors and managers 48
Directors’ report 52
Corporate governance report 57
Audit Committee report 65
Directors’ remuneration report 68
Statement of Directors’ responsibilities 72
Financial report
Independent auditor’s report 75
Income statement 82
Balance sheet 83
Statement of changes in equity 84
Cash flow statement 85
Notes to the Financial Statements 86
Shareholder information
Notice of Annual General Meeting 106
Further shareholder information 112
Third party data provider disclaimer 114
Sustainable Finance Disclosure Regulation (‘SFDR’) 115
Communicating with shareholders 116
Insights 117
Glossary of terms and Alternative Performance Measures 118
Company information 123
Contents
Introduction
Annual Report and Financial Statements 2024
02
Global growth from different perspectives
The objective of Monks 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.
Financial highlights
Performance for the year to 30 April 2024
Share price
*
+19.1%
NAV (borrowings
at par value)
*
†
+17.7%
NAV (borrowings
at fair value)
*
†
+17.6%
Comparative
index
*
#
+19.1%
* Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 114. All figures are stated on a total return basis.
Total return and discount are Alternative Performance Measures – see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
†
Net Asset Value per share (‘NAV’).
#
The comparative index is the FTSE World Index (in sterling terms).
Past performance is not a guide to future performance.
NAV, share price and index total return
*
(figures rebased to 100 at 30 April 2023)
Discount to net asset value
*
(figures plotted on a weekly basis)
A
2024
A
2023
MJ JASOND F
JM
● Share price*
●
NAV (fair)*
†
●
Index*
#
90
130
120
110
100
2024
2023
A
AM JJASONDF
JM
●
Discount*
●
Average discount
(16%)
(10%)
(8%)
(14%)
(12%)
The Monks Investment Trust PLC
03
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
Key characteristics
Growth
Portfolio of growth
equities (c.100 holdings),
unconstrained by region
or sector.
Exposure spread across
three distinct growth profiles,
offering a diversified portfolio
designed to deliver capital
growth.
Geared
Enhancement of
shareholder returns
via the deployment
of structural gearing.
Net gearing
*
6.8%.
A tiered management
fee means that average
costs fall as assets rise.
Ongoing charges
ratio
*
0.44%; among the
lowest in the sector.
Low
cost
An investment horizon
of 5 years or more allows
the growth potential of
investee companies to
be fulfilled and Monks’
shareholders to benefit
from the power of
compound growth.
Annualised turnover
*
15.5%.
Patience
Active
A portfolio that differs
significantly from the
comparative index.
The Managers invest in
companies with distinct
competitive advantages
and harness the potential
to deliver superior earnings
growth over time.
Active share
*
81%.
Capital
discipline
An active approach to
both issuance and
buybacks to maximise
shareholder return.
Buybacks of £173 million in
the year to 30 April 2024;
7.2% of issued share capital.
Introduction
Annual Report and Financial Statements 2024
04
This Strategic report, which
includes pages 5 to 46 and
incorporates the Chairman’s
statement, has been prepared in
accordance with the Companies
Act 2006.
Strategic
report
Strategic report
Annual Report and Financial Statements 2024
06
Chairman’s
statement
Karl Sternberg
Chairman
Appointed to the
Board in 2013,
and as Chairman
in 2020
Performance
During the year the net asset value (‘NAV’) total
return, with borrowings calculated at fair value,
was +17.6%. The share price total return was
+19.1%, matching the FTSE World Index return of
+19.1%. The second half of the year provided much
stronger returns than the first half, with a NAV total
return of +21.6% and a share price total return
of +28.5% compared to +16.6% from the index.
This is an encouraging return to positive relative
performance after the last two years’ declines; but
we are well aware that on a NAV basis, this is the
third year of underperformance.
The Managers have been actively repositioning the
Company’s portfolio, identifying growth equities with
the characteristics to perform well even in the more
challenging economic environment. The essential
thesis of the Managers’ original investment approach
is unchanged, but the experience gained in the last
few years has refined its application, particularly
focusing on valuation discipline.
Capital allocation
The Company’s shares traded at a discount to net
asset value throughout the year. The Board has
been active in buying shares in the open market.
Having issued shares when Monks’ shares traded at
a premium to net asset value, we believe that it is our
obligation to be ready buyers at a discount. Buying
the Company’s own shares at a discount to NAV
enhances NAV per share for ongoing shareholders.
Buybacks also improve short-term liquidity in the
Company’s shares. We believe that the underlying
portfolio is attractive enough for our shares to trade
at close to or above NAV.
Over the course of the Company’s financial year,
we bought 16.7 million shares, at an average
discount of 10.4% and a cost of £172.9 million.
Since we commenced this active programme in
January 2022, we have bought back 39.0 million
shares at a cost of £406.0 million; representing
The Monks Investment Trust PLC
07
16.5% of the Company’s issued share capital as at
31 December 2021 and one of the highest buybacks
as a percentage of issued share capital in the global
equity sector. At the year-end, the discount had
narrowed to 8.5% (30 April 2023 – 9.7%). The
Board will continue its buyback policy as a key part
of its overall capital allocation.
Borrowings and gearing
Our investment trust structure allows gearing, which
should enhance long-term returns. The Board’s
strategic borrowing target is 10%. It is expected that
effective gearing will be maintained in the range of
minus 15% to plus 15%. Gearing rose moderately
from 5.3% at the start of the year to 6.8% by the
end as a result of obtaining new private placement
debt and funding buybacks.
In December 2023, the Company issued four
tranches of private placement debt totalling £73
million, three euro-denominated, and one in yen,
across a range of maturities from 2030 to 2037.
This was used in part to repay higher cost floating
rate bank debt. The Company’s structural debt with
a current weighted average interest rate of 2.74%
is supplemented by a revolving, floating rate facility
with National Australia Bank Limited which expires
in November 2024. At the year end, £50 million
(30 April 2023 – £75 million) of this £150 million
facility was drawn. The Board values the flexibility
offered by the bank loan and will consider a renewal
of this facility later this year.
Management expenses
Monks remains competitive on fees and expenses:
keeping fees as low as possible maximises the
long-term returns to shareholders. The total ongoing
charges ratio for the year to 30 April 2024 was
0.44%, up marginally from 0.43% in the prior year.
The current tiered management fee scale should
ensure that all shareholders will benefit from
economies of scale as assets grow.
Earnings and dividend
Monks invests with the aim of maximising capital
growth rather than income. All operating costs
are charged to the Revenue Account. The Board’s
policy is to pay the minimum dividend required to
maintain investment trust status. Retained earnings
are reinvested in the portfolio. In order to build in
headroom for further buybacks that would reduce
the shares in issue qualifying for dividends, the
Board is recommending that a single final dividend
of 2.10p be paid, compared to 3.15p last year,
to ensure that the amount retained for the year
does not exceed that permissible.
Addressing sustainability and
fossil fuel investments
Many shareholders will be aware of the public
debate surrounding investments in fossil fuels.
The Board and the Managers take their stewardship
responsibilities very seriously. Environmental, Social,
and Governance (ESG) factors are intrinsically linked
with long-term investing. The Managers embed the
analysis of these factors into their core research
when searching for high-quality growth companies.
They are supported by a dedicated ESG analyst
who assists with the ongoing stewardship of each
holding; he is part of a wider team of more than
40 people. The objective is not to seek perfection
but to focus on materiality and the direction of travel.
Engagement can encourage responsible behaviour
and meaningful change. The Company’s direct
investments in businesses with fossil-fuel-related
activities totalled 2.6% versus 4.8% for the index
at the year end.
Strategic report
Annual Report and Financial Statements 2024
08
Engaging with portfolio companies
Throughout the year, the Managers regularly engage
with portfolio companies. An interesting case study
is the building materials company, CRH, which is
the largest contributor to the portfolio’s carbon
footprint. However, CRH’s products are essential
for investments in our built environment, including
new energy infrastructure crucial for the energy
transition. The Managers have engaged with CRH
about their carbon emissions for an extended period,
playing a crucial role in the company becoming a
leader in lower-carbon solutions and setting some of
the industry’s most ambitious carbon reduction plans.
Importantly, if the Managers believe that insufficient
progress is being made relating to important
ESG factors, they will sell a stock. A recent
example includes the miner Rio Tinto, where
concerns regarding governance and the approach
to environmental impact were not adequately
addressed. The Company has since sold its holding.
The Board
The Board is cognisant of the need to ensure
regular refreshment of its composition, whilst also
maintaining continuity and corporate memory.
In particular, we believe that succession should
incorporate adequate handover periods. As part
of this ongoing succession planning, the Directors
reviewed the skills and experience of the Board;
considered recent and anticipated developments
in the commercial and regulatory landscape; and
appointed Cornforth Consulting to commence the
search for two new Directors. As a result of this
process, the Board is pleased to welcome Randeep
Grewal and Stacey Parrinder-Johnson, who were
appointed with effect from 1 March 2024. They
bring diverse investment industry experience and
breadth of perspective to the Board. We expect their
appointments to strengthen further its debate and
challenge of the Managers.
Jeremy Tigue, who joined the Board in September
2014 will not offer himself for re-election at the
forthcoming Annual General Meeting. Belinda
Richards took over from Jeremy as Senior
Independent Director in December 2023, and
Claire Boyle will succeed him as Audit Committee
Chair. We will miss his wise counsel and depth of
knowledge; he has been a super colleague for all
of us and a model non-executive.
My colleagues have asked that I remain Chairman
after this AGM; and the Board will make an
announcement about future succession plans
in due course.
The Managers
The Board believes that Baillie Gifford is an
impressive investment house, with excellent minds
applied to finding the best way of profiting from the
accelerating change in the global economy. We have
continued to bolster the lead investment team, with
Baillie Gifford’s joint managing partner Malcolm
MacColl and partner Spencer Adair being joined by
Helen Xiong as deputy portfolio manager. Helen is
an investment manager in Baillie Gifford’s Global
Alpha Team and a partner in the firm.
We are encouraged by the robustness of analysis
of the portfolio, and its diversified distillation of
Baillie Gifford’s best ideas. It is well placed to deliver
superior returns to shareholders, whatever the
short-run impact of inflation concerns, interest rates
or geopolitical risk. It is encouraging that recent
performance has improved significantly, and that the
portfolio outperformed its comparative index in the
second half of the year.
The Monks Investment Trust PLC
09
Outlook
The Board shares the enthusiasm of our Managers
for the underlying portfolio. Although our portfolio
is a growth portfolio it has very few loss-making
firms. There are ideas from across the economy, not
just in technology. We have very limited exposure to
unquoted companies. The valuation premium over
the market is quite narrow, on a range of measures,
whereas the expected growth in revenues and profits
for portfolio companies is much higher than the
market’s overall growth rate. We are not reliant on a
small number of big winners. We believe that Monks
is the growth portfolio that all investors can consider
to be a core holding.
Annual General Meeting
Shareholders who have been accustomed to
attending the Company’s AGM for many years
in the same venue should take note of a change
of location. This year, the AGM will be held on
Tuesday 10 September 2024 at the Royal Institution,
21 Albemarle Street, London W1S 4BS, at the
slightly later time than previously of 11.30 am. We
look forward to welcoming shareholders there.
In line with last year’s procedure, the Board intends
to hold the AGM voting on a poll, rather than on
a show of hands, so encourages all shareholders
to exercise their votes at the AGM by completing
and submitting a form of proxy. We recommend
that shareholders monitor the Company’s website
at monksinvestmenttrust.co.uk where any updates
regarding the meeting will be posted. Market
announcements will also be made in the event
of any change to the scheduled arrangements.
Should shareholders have questions for the Board
or the Managers, or any queries as to how to vote,
they are welcome as always to submit them by email
to trustenquiries@bailliegifford.com or call
0800 917 2112. For shareholders investing through
a platform, the AIC guidance on how to vote shares
in advance or obtain the documentation necessary
to vote in person at the AGM, may be of assistance:
theaic.co.uk/how-to-vote-your-shares.
KS Sternberg
Chairman
1 July 2024
Past performance is not a guide to future performance. Total return information is sourced from Baillie Gifford/LSEG. See disclaimer on page 114.
For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
Strategic report
Annual Report and Financial Statements 2024
10
Managers’ review
The past year in financial markets may best be
described as a ‘game of two halves’. The first
was a cagey and nervous affair. The dominant
narrative was uncertainty relating to the prospect
of a US recession. The second half was much
more encouraging. Against a backdrop of growing
optimism as inflation stabilised and central banks
paused interest rate increases, investors continued
to recognise the transformational potential of
artificial intelligence (AI). This manifested most
obviously in the share prices of some of the world’s
largest technology stocks (several of which we own
within Monks). Equity indices rallied, driven by these
companies, and, in some cases, hit new highs.
Similarly, the second half of our financial year
delivered markedly stronger results than the first.
A net asset value (NAV) total return
*
of +21.6%
(the index delivered +16.6%) compares strongly
to the first half of the year. This was underpinned
by solid operational progress for our portfolio: the
holdings saw earnings growth of +12% compared
to -0.8% for the index. Our investments continue
to adapt positively to the operating backdrop (see
‘Performance’ section below).
Conviction in our approach
While we have adapted the way we manage the
portfolio, such as strengthening the analytical inputs
around valuations and stock correlations, the core
approach to managing Monks remains consistent.
We select stocks based on their fundamental
attractions without reference to the index (over 80%
of the portfolio is different to the index); we seek to
invest in a diversified collection of companies that
can deliver superior levels of earnings growth; and
we strive to allow compounding to work its magic
by being patient (our turnover is 15%, implying an
average holding period of 6 years). We continue
to have absolute conviction that this approach will
deliver attractive long-term returns for shareholders.
Spencer Adair
Lead portfolio
manager
Malcolm MacColl
Deputy portfolio
manager
Helen Xiong
Deputy portfolio
manager
* NAV with debt at fair value. Total return information is sourced from Baillie Gifford/LSEG and relevant underlying index providers. See disclaimer
on page 114. For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121. Past performance is
not a guide to future performance.
The Monks Investment Trust PLC
11
The foundation of our conviction lies in the
portfolio’s financial characteristics. We therefore
make no apologies for citing (as we have in past
reports) the strength of our holdings’ balance sheets,
superior gross margins, and stronger forecast
earnings growth. This is accompanied by a valuation
premium consistent with our long-run average
(+23% on a forward price-to-earnings basis).
Source: Baillie Gifford & Co, FactSet, FTSE, sterling. As at 30 April 2024.
Based on The Monks Investment Trust PLC.
1
Excludes financials. Total may not sum due to rounding.
2
Excludes companies with negative earnings.
Growth companies excite us. From AI, to gravel,
to storm drains, to digital payments, Monks seeks
to give shareholders exposure to the world’s leading
beneficiaries of change, whatever the sector,
wherever in the world.
Performance
The Global Alpha team has managed Monks for
nine years. Over this period, the fair value NAV total
return has been +166.6%
*
(share price +175.6%
*
)
compared to the comparative index (FTSE World)
which returned +170.8%
*
. In the twelve months to
the end of April, the portfolio underperformed the
comparative index (FTSE World) by -1.5%, delivering
a NAV total return of +17.6% (share price +19.1%)
against the index total return of +19.1%.
Our insurance and healthcare holdings were among
the largest detractors from relative performance.
The share prices of AIA, Ping An and Prudential
(totalling 3.0% of the portfolio) fell by an average
of -34% in the period. The lingering effect of the
pandemic on the Chinese economy curtailed active
selling opportunities (as sales force activity remains
below pre-pandemic levels) and weakened consumer
demand. We have sold our positions in Ping An and
Prudential. We believe that AIA is best placed to
take advantage of the significant structural long-
term growth opportunity that remains in China (and
across Asia more broadly), where the ‘protection
gap’ is large. AIA is seeing demand return, is
growing its salesforce once again (having cut back
during COVID), and has recently been granted
licenses in five new Chinese territories expanding its
addressable market.
The healthcare sector is navigating a challenging
period against a backdrop of excess inventory
build-up following the pandemic (which has
suppressed demand) and a much more difficult
funding environment for drug developers. In relation
to the latter, we believe this supports our position
in Royalty Pharma, a provider of capital to late-
stage drug developers. Whilst its share price has
been weak, down -20% in the year, we continue
to believe that operational progress is on track.
Its stream of royalties from its existing portfolio of
drugs continues to grow healthily and the company
is deploying capital well ahead of the pace needed
to support double-digit growth rates (US$1.6bn
deployed in the latest quarter, compared to a 5-year
average of US$2bn annually).
We have sold Novocure (cancer treatment). Our
central expectation was that it could successfully
expand its addressable market by applying its
tumour treatment field technology, designed to treat
solid-state brain tumours, to cancers affecting other
vital organs. Setbacks in recent clinical trials have
negatively affected the probabilities of success and
weakened our conviction in the investment case.
The majority of the portfolio holdings are adapting
and executing well. Several holdings have proven
their adaptability by exerting exceptional pricing
power and have been the strongest positive
contributors to portfolio return. Martin Marietta
(aggregates and building supplies) is a case in
point. It has been able to increase aggregate pricing
significantly (+14% year-on-year
†) and deliver
record levels of profitability. It has been a similar
story at CRH (cement and building supplies), which
was the second-largest contributor to portfolio
return. Elsewhere, Meta (social media) as one of our
‘Stalwart’ growth holdings, has unleashed the power
of its advertising estate by leveraging its growing
AI capabilities to improve its utility to merchants.
This has driven demand for its advertising capacity
and gradually improved pricing. In conjunction with
sensible cost control and more disciplined growth
spending, Meta has delivered a doubling of net
income (+117%) year-over-year†.
Net debt to
equity ratio
1
Gross
margin
Earnings
3y forward
growth (p.a.)
2
● Monks ● FTSE World Index
60%
40%
20%
0%
40%
20%
0%
15%
10%
5%
0%
* Total returns from 31 March 2015 to 30 April 2024.
† Q1 2024 versus Q1 2023.
Strategic report
Annual Report and Financial Statements 2024
12
Others have executed flawlessly. Rapid Growth
holding DoorDash, the leading US food delivery
platform, was the third largest positive contributor
to the portfolio’s return. The company’s commitment
to improving its offerings for consumers, merchants,
and delivery riders (known as Dashers) has propelled
monthly active users to a record high, alongside a
significant increase in average order frequency. It
now has almost two-thirds of the online meal delivery
market in the US and grew revenues at +27% year-
on-year
*
. DoorDash is making strong progress in
new markets too, including online grocery delivery,
as it seeks to become the convenience platform of
choice for consumers in the US.
Innovation beyond the obvious
Whilst markets have been narrowly focused over
the past year, we have continued to embrace a
wide array of opportunities. These span both digital
and physical spheres – from enterprise cloud
computing and digital payments to telegraph poles
and HVAC (heating, ventilation, and air conditioning)
installation. We expect market returns to broaden
over time. The Monks portfolio should benefit as it is
aligned with deep structural trends that will support
long-term growth.
By way of illustration, we highlight below some of
these structural trends and related changes to the
portfolio over the last year:
Digital Payments – the digital payments market has
developed hugely since the first consumer payment
was recorded in 1994 (a CD copy of Sting’s ‘Ten
Summoner’s Tales’ for US$12.48 on NetMarket,
for the trivia aficionados among you). Indeed, the
value of global digital payment transactions has
doubled (to over US$6 trillion) in the past 5 years
alone and there remains much to go for. We have
purchased a new position in Block which owns
Cash App, the most popular finance application
in the US with over 80 million users. Started as a
peer-to-peer payments application, it has developed
into a fully-fledged consumer ‘app’ offering multiple
services. The other part of its offering is its ‘Square’
point-of-sale hardware, which enables merchants
(often small or micro businesses without an online
presence) to accept digital payments. It is a simple,
convenient, and easy-to-use solution for merchants
to accept a wide variety of digital payments. We
are excited about Block’s potential to integrate
these two offerings and build significant long-term
value. Indeed, we have added to the position since
purchase. The portfolio has exposure to a range
of other digital payment businesses, including
Mastercard, the rapidly growing MercadoPago
(operated by MercadoLibre) in South America,
and Adyen, the Dutch payments business
(to which we added in the period).
Semiconductors – technological advancement
in semiconductors is driving the exponential
acceleration of computing power. This has potentially
profound implications for what computers are able
to do in the future, from driving cars autonomously
(at scale) to producing music, content and
independently writing computer code. We have
deliberately grown the portfolio’s exposure to the
semiconductor industry (now 10% of the portfolio)
over the past couple of years. In our interim report,
we underlined our enthusiasm for the purchase of
NVIDIA as the leading global designer of graphics
processing units (GPUs), a key enabler of artificial
intelligence (AI) applications. In recent months we
have added holdings in semiconductor companies
Texas Instruments and Samsung Electronics. Growth
in both cases will be driven by the secular trends
towards greater electrification (for example in the
automotive market), the use of consumer electronics
(think smartphones, laptops, and tablets), and
the ongoing build-out of data centres to support
increasing cloud computing capacity.
Healthcare – the long-term drivers of the need for
healthcare are clear. The global number of people
aged over 60 will double by 2050. The number of
people over 80 will triple. As we age, we consume
much more healthcare. We added a position in
the Danish insulin business, Novo Nordisk. It has
seen a recent rapid transformation from a steadily
compounding business focusing on diabetes
care and clotting, to leading the way in GLP-1
weight-loss drugs. Novo’s drug, Wegovy, has opened
a huge, global market and is addressing one of the
world’s biggest health challenges. The opportunity
could reach hundreds of millions of individuals
who are clinically obese, as well as unlock further
opportunities by reducing the long list of health
complications that come with obesity (heart disease,
certain types of cancer, liver disease etc).
Infrastructure – we have continued to invest where
companies may be beneficiaries of an ‘Infrastructure
Upgrade’, particularly in the US. There are several
factors including re-shoring trends and infrastructure
spending (supported by legislation like the Inflation
Reduction Act) which are likely to support a material
uptick in capital spending on areas including roads,
energy, and digital networks. We wrote about our
enthusiasm for Comfort Systems, the HVAC installer,
in our interim update, and we recently established
a position in the Canadian company Stella-Jones.
It is North America’s largest manufacturer of
pressure-treated wood products. The growth case
* Q4 2023 versus Q4 2022.
The Monks Investment Trust PLC
13
rests on its core product, wooden utility poles, used
for electrical and communications infrastructure.
For the US to decarbonise its energy systems and
have a chance of achieving its Net Zero ambitions,
substantial investment will be required in its national
power grid. We believe volume growth and pricing
power will boost profitability in the coming years.
Remaining ambitious
We have sold several positions as we seek to
upgrade the portfolio’s growth prospects. Some of
these generated strong returns for the portfolio, but
the likelihood of similar returns in the future looked
unlikely. Examples include the semiconductor testing
equipment business, Teradyne (up five-fold since
purchase), and the governance and data services
business Broadridge (up two-fold since purchase).
In other cases, despite signs of some progress, our
patience was exhausted with the likes of Adidas
(sports apparel) and Wayfair (online furniture retail).
Adidas’ new management team must reposition
the Adidas brand and assess how to tap into large
markets like China, where they are currently being
outcompeted by Nike and domestic brands. Wayfair
has successfully restructured its debt position, but
we have reservations that the business can return
to volumes supportive of margin expansion and
attractive profit growth. There was also a higher
number of complete sales of smaller positions within
the portfolio. We chose to sell several holdings
inherited as part of the rollover of assets from the
Independent Investment Trust in November 2022.
These included travel businesses Jet2 (travel) and
On the Beach (online travel). Strong travel-related
demand has returned post-pandemic. The share
prices of these companies now better reflect their
long-term growth potential so we have redeployed
the proceeds elsewhere.
Governance and Sustainability
The building blocks of our investment philosophy –
bottom-up stock-level research and long-termism
– chime with an increasing focus on stewardship and
focus on Environmental, Social, and Governance
factors. We understand that businesses operate in
a complex and dynamic world where their activities
may have positive and negative impacts. There
are no shortcuts. We believe that getting to know
companies on a case-by-case basis is essential as
we seek to understand their unique circumstances
and assess material factors that may influence their
sustainability. This directly impacts our assessment
of holdings within the Monks portfolio.
Our latest thinking can be found within our dedicated
Monks Stewardship Report on our website.
Improving our team
We are pleased that the Board agreed to appoint
Helen Xiong as a Deputy Manager of Monks with
effect from 1 July 2024. Helen is a partner of Baillie
Gifford and has been at the firm since 2008. She
works closely with us on Baillie Gifford’s Global
Alpha strategy and has contributed strongly to ideas
that we have adopted for the portfolio in recent
years including DoorDash (food delivery) and, more
recently, Block (payments).
Outlook
Across our portfolio, companies are successfully
fine-tuning operations to adjust to present
conditions, while continuing to invest for the
future. This has translated into strong delivered
and forecast earnings growth. Pleasingly, there
are encouraging signs that investment markets
– against a backdrop of stabilising inflation and
interest rates – are more willing to recognise this,
and relative performance has begun to rebound
strongly. Our optimism is reflected in our decision
to raise medium-term debt (£73m) in the private
placement market (net gearing was 6.8% at year-
end). Our blended cost of fixed rate borrowing is
now 2.74%, which we consider to be a low hurdle
when set against future investment opportunities.
As we look forward, what is most exciting is that
the rate of change and technological development
is accelerating and underpins a growing, and
often underappreciated, opportunity set. By virtue
of our willingness to take a wide-angled view of
growth (defined by our growth profiles – Stalwart,
Rapid and Cyclical growth), we have the latitude
to invest beyond the obvious. This allows us to
harness the growth potential of lesser-known but
nevertheless exceptional growth companies. We
are therefore enthusiastic about the potential
of SiteOne Landscape Supply and its ability to
consolidate the wholesale landscaping supply
market in the US, while concurrently embracing the
latest advancements in semiconductor design by
owning positions in the likes of NVIDIA and ASM
International. Our portfolio reflects an eclectic and
growing opportunity set and we are confident that
it will deliver for shareholders in the years ahead.
Spencer Adair
Malcolm MacColl
Helen Xiong
Baillie Gifford & Co
1 July 2024
Strategic report
Annual Report and Financial Statements 2024
14
The Managers’ core
investment beliefs
We believe the following features of Monks provide a
sustainable basis for adding value for shareholders.
Active management
• We invest in attractive companies using a ‘bottom-
up’ investment process. 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
20 and 21.
• The use of these three growth categories ensures
a diversity of growth drivers within a disciplined
framework.
Long-term perspective
• Long-term holdings mean that company
fundamentals are given time to drive returns.
• We prefer companies that are managed with a
long-term mindset, rather than those that prioritise
the management of market expectations.
• We believe our approach helps us focus on what
is important during the inevitable periods of
underperformance.
• Short-term portfolio results are random.
• As longer-term shareholders we are able to have
greater influence on environmental, social and
governance matters.
Dedicated team with clear decision-making
process
• Senior and experienced team drawing on the
full resources of Baillie Gifford.
• Alignment of interests – the investment team
responsible for Monks all own shares in the
Company.
Portfolio construction
• Investments are held in three broad holding sizes,
as set out on pages 20 and 21.
• This allows us to back our judgement in those
stocks for which we have greater conviction, and
to embrace the asymmetry of returns through
‘incubator’ positions in higher risk/return stocks.
• ‘Asymmetry of returns’ – some of our smaller
positions will struggle and their share prices will
fall; those that are successful may rise many fold.
The latter should outweigh the former.
Low cost
• Investors should not be penalised by high
management fees.
• Low turnover and trading costs benefit shareholders.
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
15
The Monks Investment Trust PLC
Environmental, social and
governance engagement
The Board has given discretionary voting powers
to Baillie Gifford. 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
but adopt a positive engagement approach
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:
bailliegifford.com. The Managers’ policy has been
reviewed and endorsed by the Board. The Managers,
Baillie Gifford & Co, are signatories to the United
Nations Principles for Responsible Investment.
The Company publishes an annual stewardship
report which includes examples of engagement on
ESG matters, as well as setting out the Managers’
approach to proxy voting. The annual stewardship
report is available on the Company’s website
monksinvestmenttrust.co.uk.
The Monks
Investment
Trust PLC
Stewardship Report
Year ended 31 December 2023
Strategic report
Annual Report and Financial Statements 2024
16
Ten largest
investments
A review of the Company’s
ten largest investments as
at 30 April 2024.
Martin Marietta Materials
Martin Marietta Materials owns
and operates quarries and is
one of the largest suppliers of
building materials in the US. These
materials – including aggregates,
cement, ready mixed concrete
and asphalt – are crucial for
the revitalisation of American
infrastructure.
Microsoft
Microsoft is the world’s dominant
enterprise software company.
Having first risen to prominence
with its Windows operating
system and Office software, it
is now a major player in cloud
computing and generative artificial
intelligence (AI).
Geography North America
Valuation at
30 April 2024
£102,564,000
% of total assets 3.6%
Valuation at
30 April 2023
£86,844,000
% of total assets 3.3%
Net purchases/(sales)
in the year
(£6,795,000)
Geography North America
Valuation at
30 April 2024
£106,974,000
% of total assets 3.7%
Valuation at
30 April 2023
£68,423,000
% of total assets 2.6%
Net purchases/(sales)
in the year
(£4,104,000)
© Martin Marietta Materials Company © Jae C. Hong/AP/REX/Shutterstock
17
The Monks Investment Trust PLC
Elevance Health
Elevance Health is a major US
health insurance company. In
addition to writing health insurance
policies for millions of Americans,
the company offers services to
support people’s health throughout
their lives, with an increasing
focus on preventative care. These
include pharmacy services, mental
health support, and programmes to
manage chronic health conditions.
Meta Platforms
Meta is a globally dominant social
media and advertising platform,
reaching over 3 billion daily
active users across its four apps:
Facebook, Messenger, Instagram
and WhatsApp. Meta provides
digital advertising infrastructure
that helps businesses connect
with consumers and is a significant
player in this large and growing
industry.
Amazon.com
Amazon is a global ecommerce
company that has expanded
into areas including media and
entertainment, advertising,
and logistics. Through its cloud
platform, Amazon Web Services
(AWS), the company is the leader
in the growth area of cloud
computing.
Geography North America
Valuation at
30 April 2024
£98,576,000
% of total assets 3.4%
Valuation at
30 April 2023
£59,105,000
% of total assets 2.3%
Net purchases/(sales)
in the year
nil
Geography North America
Valuation at
30 April 2024
£97,183,000
% of total assets 3.4%
Valuation at
30 April 2023
£81,325,000
% of total assets 3.1%
Net purchases/(sales)
in the year
£4,525,000
Geography North America
Valuation at
30 April 2024
£99,850,000
% of total assets 3.5%
Valuation at
30 April 2023
£38,940,000
% of total assets 1.5%
Net purchases/(sales)
in the year
£23,200,000
© Shutterstock/Melnikov Dmitriy © UCG/Getty Images
Strategic report
Annual Report and Financial Statements 2024
18
Ryanair
Ryanair is Europe’s leading low-
cost airline, with an extensive route
network covering 200 destinations
in over 30 countries. By offering
competitive prices and expanding
its fleet, the airline is on track to
almost double passenger numbers
to 300 million by 2034.
CRH
CRH is a diversified building
materials business. The company
produces and distributes materials
(cement, aggregates and
asphalt) and products (including
breezeblock, bricks, and tiles)
to the US, Europe and emerging
markets that are vital for the
upgrade of critical infrastructure
in the US and beyond.
The Schiehallion Fund
The Schiehallion Fund seeks
to generate capital growth for
investors through long-term
investments in later-stage private
businesses that have the potential
for transformational growth and
to become publicly traded.
Geography United Kingdom
Valuation at
30 April 2024
£73,796,000
% of total assets 2.6%
Valuation at
30 April 2023
£53,277,000
% of total assets 2.0%
Net purchases/(sales)
in the year
nil
Geography Continental Europe
Valuation at
30 April 2024
£78,023,000
% of total assets 2.7%
Valuation at
30 April 2023
£53,739,000
% of total assets 2.1%
Net purchases/(sales)
in the year
(£7,862,000)
Geography Continental Europe
Valuation at
30 April 2024
£79,927,000
% of total assets 2.8%
Valuation at
30 April 2023
£47,645,000
% of total assets 1.8%
Net purchases/(sales)
in the year
£13,875,000
© Ryanair © CRH
19
The Monks Investment Trust PLC
© Bloomberg/Getty Images © Shutterstock/Mehaniq
Moody’s
Moody’s is a financial services
company that is a global leader
in credit ratings research and risk
analysis. The core ratings business
is supported by the growing
Moody’s Analytics division, which
provides an expanding suite of
research and analytics products
that help customers assess and
manage risk and make informed
investment decisions.
Reliance Industries
Reliance Industries is an Indian
conglomerate that started as an
oil refining and petrochemicals
business. In recent years it has
moved into renewables and
other areas, including media,
telecommunications and retail.
Its businesses directly and
indirectly connect to every citizen
in a diverse and growing market.
Geography Emerging Markets
Valuation at
30 April 2024
£69,172,000
% of total assets 2.4%
Valuation at
30 April 2023
£60,455,000
% of total assets 2.3%
Net purchases/(sales)
in the year
(£6,855,000)
Geography North America
Valuation at
30 April 2024
£72,668,000
% of total assets 2.5%
Valuation at
30 April 2023
£65,934,000
% of total assets 2.5%
Net purchases/(sales)
in the year
(£5,833,000)
Strategic report
Annual Report and Financial Statements 2024
20
Investment portfolio
by growth category
*
as at 30 April 2024
* Excludes net liquid assets.
Holding size Growth stalwarts 34.4% Rapid growth 34.4% Cyclical growth 31.2% Holding size
Highest conviction
holdings
c.2.0% each
Microsoft 3.6 Amazon.com 3.5
Martin Marietta Materials 3.8
Total in this
holding size
45.2%
Meta Platforms 3.5 The Schiehallion Fund 2.6 Ryanair 2.8
Elevance Health 3.4 Reliance Industries 2.4 CRH 2.7
Moody’s 2.6 Prosus 2.2 TSMC 2.3
Service Corporation International 2.3 NVIDIA 1.7
Mastercard 2.1 DoorDash 1.6
Alphabet 2.1
Average sized holdings
c.1.0% each
Analog Devices 1.3 The Trade Desk 1.2
Royalty Pharma 1.1
Total in this
holding size
36.4%
Arthur J. Gallagher 1.2 Novo Nordisk 1.1 Atlas Copco 1.0
Pernod Ricard 1.2 Cloudflare 1.0 BHP Group 1.0
AIA 1.1 Shopify 1.0 Advanced Drainage Systems 1.0
Olympus 1.0 Block 1.0 Eaton 1.0
Texas Instruments 0.9 HDFC 1.0 Richemont 0.9
S&P Global 0.9 MercadoLibre 1.0 Samsung Electronics 0.9
UnitedHealth 0.9 Spotify 0.9 Markel 0.8
Thermo Fisher Scientific 0.8 Schibsted 0.9 Entegris 0.8
Alnylam Pharmaceuticals 0.8 CoStar 0.8
Moderna 0.7 CATL 0.8
Netflix 0.7 CBRE Group 0.8
Coupang 0.7 SiteOne Landscape Supply 0.7
Alibaba 0.7 SMC 0.7
B3 Group 0.7 ASM International 0.7
Comfort Systems USA 0.7
Incubator holdings
c.0.5% each
Walt Disney 0.6 ByteDance 0.6
Epiroc 0.6
Total in this
holding size
18.4%
Shiseido 0.5 Sea Limited 0.5 Nexans 0.6
Advanced Micro Devices 0.5 PDD Holdings 0.5 Floor & Décor Holdings 0.5
LVMH 0.5 Stripe 0.5 Albemarle 0.5
Sysmex 0.5 Mobileye 0.5 Nippon Paint 0.5
Topicus.com 0.5 Epic Games 0.4 Pool Corporation 0.5
Adobe Systems 0.4 ICICI Prudential Life Insurance 0.4 YETI Holdings 0.4
Chewy 0.4 Datadog 0.4 Bellway 0.4
Stella-Jones 0.4 Adevinta Asa 0.4 Brunswick Corp 0.4
Certara 0.3 Genmab 0.4 Rakuten 0.4
Neogen Corp 0.3 Li Auto 0.3 Ashtead Group 0.4
Sartorius Stedim Biotech 0.3 Adyen 0.3 Sands China 0.4
Hoshizaki Corp 0.3 Space Exploration Technologies 0.3 Woodside Energy Group 0.2
CyberAgent 0.3 Silk Invest Africa Food Fund 0.1
Tesla 0.3 Sberbank of Russia –
Lemonade 0.3
Staar Surgical 0.2
Ant International 0.2
BIG Technologies 0.2
AeroVironment <0.1
Illumina CVR <0.1
Abiomed CVR –
The Monks Investment Trust PLC
21
Holding size Growth stalwarts 34.4% Rapid growth 34.4% Cyclical growth 31.2% Holding size
Highest conviction
holdings
c.2.0% each
Microsoft 3.6 Amazon.com 3.5
Martin Marietta Materials 3.8
Total in this
holding size
45.2%
Meta Platforms 3.5 The Schiehallion Fund 2.6 Ryanair 2.8
Elevance Health 3.4 Reliance Industries 2.4 CRH 2.7
Moody’s 2.6 Prosus 2.2 TSMC 2.3
Service Corporation International 2.3 NVIDIA 1.7
Mastercard 2.1 DoorDash 1.6
Alphabet 2.1
Average sized holdings
c.1.0% each
Analog Devices 1.3 The Trade Desk 1.2
Royalty Pharma 1.1
Total in this
holding size
36.4%
Arthur J. Gallagher 1.2 Novo Nordisk 1.1 Atlas Copco 1.0
Pernod Ricard 1.2 Cloudflare 1.0 BHP Group 1.0
AIA 1.1 Shopify 1.0 Advanced Drainage Systems 1.0
Olympus 1.0 Block 1.0 Eaton 1.0
Texas Instruments 0.9 HDFC 1.0 Richemont 0.9
S&P Global 0.9 MercadoLibre 1.0 Samsung Electronics 0.9
UnitedHealth 0.9 Spotify 0.9 Markel 0.8
Thermo Fisher Scientific 0.8 Schibsted 0.9 Entegris 0.8
Alnylam Pharmaceuticals 0.8 CoStar 0.8
Moderna 0.7 CATL 0.8
Netflix 0.7 CBRE Group 0.8
Coupang 0.7 SiteOne Landscape Supply 0.7
Alibaba 0.7 SMC 0.7
B3 Group 0.7 ASM International 0.7
Comfort Systems USA 0.7
Incubator holdings
c.0.5% each
Walt Disney 0.6 ByteDance 0.6
Epiroc 0.6
Total in this
holding size
18.4%
Shiseido 0.5 Sea Limited 0.5 Nexans 0.6
Advanced Micro Devices 0.5 PDD Holdings 0.5 Floor & Décor Holdings 0.5
LVMH 0.5 Stripe 0.5 Albemarle 0.5
Sysmex 0.5 Mobileye 0.5 Nippon Paint 0.5
Topicus.com 0.5 Epic Games 0.4 Pool Corporation 0.5
Adobe Systems 0.4 ICICI Prudential Life Insurance 0.4 YETI Holdings 0.4
Chewy 0.4 Datadog 0.4 Bellway 0.4
Stella-Jones 0.4 Adevinta Asa 0.4 Brunswick Corp 0.4
Certara 0.3 Genmab 0.4 Rakuten 0.4
Neogen Corp 0.3 Li Auto 0.3 Ashtead Group 0.4
Sartorius Stedim Biotech 0.3 Adyen 0.3 Sands China 0.4
Hoshizaki Corp 0.3 Space Exploration Technologies 0.3 Woodside Energy Group 0.2
CyberAgent 0.3 Silk Invest Africa Food Fund 0.1
Tesla 0.3 Sberbank of Russia –
Lemonade 0.3
Staar Surgical 0.2
Ant International 0.2
BIG Technologies 0.2
AeroVironment <0.1
Illumina CVR <0.1
Abiomed CVR –
Growth stalwarts
Earnings
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
Time
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
Time
Rapid growth
Earnings
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
Time
Cyclical growth
Earnings
Strategic report
Annual Report and Financial Statements 2024
22
List of
investments
as at 30 April 2024
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
Denotes unlisted/private company investment.
†
New purchase during the period.
Name Business
Value
£’000
% of total
assets *
Martin Marietta Materials Cement and aggregates manufacturer 106,974 3.7
Microsoft Software and cloud computing 102,564 3.6
Meta Platforms Social networking website 99,850 3.5
Amazon.com Online retailer and cloud computing platform 98,576 3.4
Elevance Health Healthcare insurer 97,183 3.4
Ryanair Low cost European airline 79,927 2.8
CRH Diversified building materials 78,023 2.7
The Schiehallion Fund Global unlisted growth equity investment company 73,796 2.6
Moody’s Credit rating agency 72,668 2.5
Reliance Industries Indian energy conglomerate 69,172 2.4
TSMC Semiconductor manufacturer 65,975 2.3
Service Corporation International Funeral and crematoria services 65,691 2.3
Prosus Media and ecommerce 61,462 2.1
Mastercard Electronic payments network and related services 60,789 2.1
Alphabet Online search engine 59,533 2.1
NVIDIA
†
Graphics processing, gaming, AI technology 49,131 1.7
DoorDash Online commerce platform 45,626 1.6
Analog Devices Integrated circuits 37,576 1.3
Arthur J. Gallagher Insurance broker 33,600 1.2
Pernod Ricard Global spirits manufacturer 33,392 1.2
The Trade Desk Advertising technology 32,887 1.1
AIA Asian life insurer 30,975 1.1
Novo Nordisk
†
Diabetes and weight loss treatment 30,953 1.1
Royalty Pharma Biopharmaceutical royalties portfolio 30,491 1.1
Olympus Optoelectronic products 29,854 1.0
Cloudflare Cloud based IT services 29,854 1.0
Shopify Online commerce platform 29,783 1.0
Atlas Copco Industrial equipment 29,717 1.0
Block
†
Financial technology 29,085 1.0
HDFC Indian mortgage provider 28,106 1.0
BHP Group Mineral exploration and production 27,910 1.0
MercadoLibre Latin American ecommerce platform 27,844 1.0
The Monks Investment Trust PLC
23
Name Business
Value
£’000
% of total
assets *
Advanced Drainage Systems Manufacturer of pipes and drainage systems 27,182 0.9
Eaton Industrial engineering products 27,067 0.9
Texas Instruments
†
Semiconductors 26,922 0.9
Richemont Luxury goods 26,916 0.9
Spotify Online music streaming service 26,692 0.9
S&P Global Credit rating agency 25,550 0.9
UnitedHealth
†
Healthcare 25,232 0.9
Samsung Electronics
†
Multinational technology producer 25,048 0.9
Schibsted Media and classified advertising platforms 24,222 0.8
Markel Markets and underwrites speciality insurance products 23,974 0.8
Entegris Supplier of materials to high-tech industries 23,533 0.8
CoStar Commercial property portal 23,339 0.8
Thermo Fisher Scientific Scientific instruments, consumables and chemicals 22,744 0.8
CATL
†
Battery manufacturer 22,310 0.8
Alnylam Pharmaceuticals RNA interference based biotechnology 22,126 0.8
CBRE Group Commercial real estate 22,026 0.8
Moderna Drug discovery using mRNA technology 20,781 0.7
Netflix Subscription service for TV shows and movies 20,488 0.7
SiteOne Landscape Supply US distributor of landscaping supplies 20,313 0.7
SMC Factory automation equipment 20,176 0.7
Coupang South Korean ecommerce 19,922 0.7
ASM International Vapour deposition technology for semiconductors 19,918 0.7
Alibaba Ecommerce 19,274 0.7
B3 Group Brazilian stock exchange operator 18,954 0.7
Comfort Systems USA
†
HVAC systems and solutions 18,794 0.6
ByteDance
Online content platform including TikTok 18,249 0.6
Walt Disney
†
Media and theme parks 17,602 0.6
Epiroc Construction and mining machinery 17,410 0.6
Nexans Manufacturer of cables and electrical parts 16,869 0.6
Shiseido Japanese cosmetics manufacturer 15,335 0.5
Floor & Décor Holdings Speciality retailer 14,601 0.5
Albemarle Lithium miner 14,408 0.5
*
For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
Denotes unlisted/private company investment.
†
New purchase during the period.
Strategic report
Annual Report and Financial Statements 2024
24
Name Business
Value
£’000
% of total
assets *
Nippon Paint
†
Japanese paint manufacturer 14,273 0.5
Sea Limited Online and digital gaming 14,268 0.5
Advanced Micro Devices
†
Semiconductors 13,772 0.5
PDD Holdings
†
Chinese real estate development 13,758 0.5
LVMH
†
Luxury goods 13,506 0.5
Sysmex Medical testing equipment 13,500 0.5
Topicus.com
Vertical market software and solutions 13,310 0.5
Pool Corporation Swimming pool supplies 13,296 0.5
Stripe
Payments platform 13,093 0.4
Mobileye
†
Advanced driver assistance systems (ADAS) and autonomous
driving technologies
12,922 0.4
Epic Games
Gaming software developer 12,688 0.4
YETI Holdings
†
Outdoor lifestyle products 12,630 0.4
Bellway Home construction 12,441 0.4
Adobe Systems Software products and technologies 12,418 0.4
ICICI Prudential Life Insurance Life insurance services 12,248 0.4
Datadog Cloud based IT system monitoring application 12,223 0.4
Brunswick Corp
†
Recreational boats, marine engines, marine parts
and accessories
12,099 0.4
Rakuten
†
Online retail and financial services 11,966 0.4
Chewy Online pet supplies retailer 11,691 0.4
Ashtead Group Industrial equipment rental 11,684 0.4
Sands China Macau casino operator 11,410 0.4
Adevinta Asa Media and classified advertising platforms 11,346 0.4
Genmab Biotechnology 11,332 0.4
Stella-Jones
†
Industrial pressure treated wood products manufacturer 10,461 0.4
Li Auto Chinese EV manufacturer 9,929 0.3
Certara Drug discovery and development 9,306 0.3
Neogen Corp
†
Food and animal safety products and services 9,260 0.3
Sartorius Stedim Biotech
†
Biotechnology, specialised equipment for research 8,691 0.3
Adyen Digital payments 8,666 0.3
Space Exploration Technologies
Space rockets and satellites 7,747 0.3
Hoshizaki Corp Commercial kitchen equipment manufacturer 7,525 0.3
*
For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
Denotes unlisted/private company investment.
†
New purchase during the period.
The Monks Investment Trust PLC
25
Name Business
Value
£’000
% of total
assets *
CyberAgent Japanese internet advertising and content 7,470 0.3
Tesla Electric cars and renewable energy solutions 7,311 0.2
Lemonade Data and insurance 7,142 0.2
Staar Surgical
Implantable contact lenses 6,206 0.2
Woodside Energy Group Australian gas and oil 5,484 0.2
Ant International
Chinese online payments and financial services business 4,551 0.2
BIG Technologies Electronic monitoring solutions 4,485 0.2
Silk Invest Africa Food Fund
Africa focused private equity fund 2,452 0.1
AeroVironment
†
Small unmanned aircraft and tactical missile systems 1,233 <0.1
Illumina CVR
Gene sequencing business 331 <0.1
Sberbank of Russia
Russian commercial bank – –
Abiomed CVR Medical implant manufacturer – –
Total investments 2,847,068 98.7
Net liquid assets* 37,245 1.3
Total assets* 2,884,313 100.0
Borrowings (at book value) (223,176) (7.7)
Shareholders' funds 2,661,137 92.3
Listed
equities
%
Schiehallion
Fund
#
%
Unlisted
securities
‡
%
Net liquid
assets *
%
Total
assets *
%
30 April 2024 94.1 2.6 2.0 1.3 100.0
30 April 2023 94.4 2.0 1.9 1.7 100.0
*
For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
Denotes unlisted/private company investment.
Denotes suspended investment.
†
New purchase during the period. Complete sales during the period were: Bytes Technology Group, Farfetch, Jet2, Midwich, On the Beach, Persimmon,
Prudential, Redrow, Rio Tinto, Team 17 Group, Wizz Air Holdings, adidas, Deutsche Boerse, Axon Enterprise, Booking Holdings, Broadridge Financial
Solutions, Bumble, Charles Schwab, Estée Lauder, Exact Sciences, Howard Hughes, Illumina, Novocure, Snowflake, Teradyne, Wayfair, DENSO,
Meituan, Ping An Insurance.
#
The Schiehallion Fund is managed by Baillie Gifford. The Company’s holding in The Schiehallion Fund is excluded from its assets when calculating
the management fee. See note 3 on page 90.
‡
Includes holdings in preference shares, ordinary shares and contingent value rights (CVR).
Strategic report
Annual Report and Financial Statements 2024
26
We aim to hold our private company investments
at ‘fair value’ i.e. the price that would be paid in an
open-market transaction. Valuations are adjusted
both during regular valuation cycles and on an
ad hoc basis in response to ‘trigger events’.
Our valuation process ensures that private companies
are valued in both a fair and timely manner.
The valuation process is overseen by a valuations
committee at Baillie Gifford which takes advice
from an independent third party (S&P Global).
The portfolio managers feed into the process,
but the valuations committee owns the process and
the portfolio managers only receive final valuation
notifications once they have been applied.
We revalue the private holdings on a three-month
rolling cycle, with one-third of the holdings
reassessed each month. For investment trusts,
the prices are also reviewed twice per year by the
respective investment trust boards and are subject
to the scrutiny of external auditors in the annual
audit process.
Beyond the regular cycle, the valuations team also
monitors the portfolio for certain ‘trigger events’.
These may include: changes in fundamentals; a
takeover approach; an intention to carry out an IPO;
or changes to the valuation of comparable public
companies. The valuations team also monitors
relevant market indices on a weekly basis and
updates valuations in a manner consistent with our
external valuer’s (S&P Global) most recent valuation
report where appropriate. When market volatility is
particularly pronounced the team do these checks
daily. Any ad hoc change to the fair valuation of any
holding is implemented swiftly and reflected in the
next published net asset value.
In addition to the 2.0% of the portfolio holdings in
direct private company investments, 2.6% of the
portfolio is in The Schiehallion Fund, a closed ended
investment company investing predominantly in
private companies, which is valued by reference to
its publicly available market price.
Baillie Gifford – valuing
private companies
27
The Monks Investment Trust PLC
Portfolio
positioning
as at 30 April 2024
*
†
Although the Managers’ approach to stock picking is resolutely ‘bottom-up’ in nature
and pays no attention to the structure of the index, it is essential to understand the risks
of each investment and, in turn, where there may be concentrations of exposures.
The charts below outline some key exposures of the portfolio at the Company’s year end.
Sectoral
Geographical
1
2
3
4
5
6
7
8
1
2
3
4
5
6
Sector % at
30 April
2024
% at
30 April
2023
1 Technology 28.5 21.6
2 Consumer discretionary 20.3 22.4
3 Industrials 18.2 13.3
4 Healthcare 11.8 12.5
5 Financials 11.7 17.8
6 Energy 2.6 2.6
7 Basic materials 1.9 4.0
8 Real estate 1.6 1.8
9 Consumer staples 1.2 2.3
10 Telecommunications 0.9 –
11 Net liquid assets 1.3 1.7
Geographical region % at
30 April
2024
% at
30 April
2023
1 North America 57.4 52.4
2 Continental Europe 17.7 16.3
3 Emerging Markets 12.6 10.9
4 Japan 4.2 5.2
5 United Kingdom 3.6 8.6
6 Developed Asia 3.2 4.9
7 Net liquid assets 1.3 1.7
* Expressed as a percentage of total assets.
†
For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
Past performance is not a guide to future performance.
Strategic report
Annual Report and Financial Statements 2024
28
One year
summary
The following information
illustrates how Monks has
performed over the year
to 30 April 2024.
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
†
Key Performance Indicator.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 114.
Past performance is not a guide to future performance.
30 April
2024
30 April
2023 % change
Total assets
(before deduction of borrowings)
£2,884.3m £2,617.7m
Borrowings (at book value) £223.2m £174.8m
Shareholders’ funds £2,661.1m £2,442.9m
Net asset value per ordinary share
(borrowings at par)*
1,242.7p 1,058.5p 17.4
Net asset value per ordinary share
(borrowings at fair value)*
1,266.1p 1,080.0p 17.2
Share price 1,158.0p 975.0p 18.8
FTSE World Index
(in sterling terms)
16.6
Ongoing charges*
†
0.44% 0.43%
Discount
(to NAV with borrowings at par)*
(6.8%) (7.9%)
Discount
(to NAV with borrowings at fair value)*
†
(8.5%) (9.7%)
Active share* 81% 86%
Revenue earnings per ordinary share 3.68p 4.70p (21.7)
Dividends paid and payable in respect
of the year
2.10p 3.15p (33.3)
Gross gearing* 8.4% 7.2%
Net gearing* 6.8% 5.3%
29
The Monks Investment Trust PLC
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
†
Key performance indicator.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 114.
Past performance is not a guide to future performance.
Year to 30 April 2024 2023
Total return performance (%)*
Net asset value per ordinary share (borrowings at par)
†
17.7 (2.6)
Net asset value per ordinary share (borrowings at fair value)
†
17.6 (1.6)
Share price
†
19.1 (7.0)
FTSE World Index (in sterling terms) 19.1 3.2
Year to 30 April 2024 2024 2023 2023
Year’s high and low High Low High Low
Net asset value per ordinary share (borrowings at par)* 1,292.1p 1,003.3p 1,170.0p 962.1p
Net asset value per ordinary share (borrowings at fair value)* 1,314.1p 1,028.1p 1,184.2p 977.8p
Share price 1,158.0p 890.0p 1,098.0p 888.0p
Discount (borrowings at fair value)*
†
(8.6%) (14.8%) (4.8%) (13.0%)
Year to 30 April 2024 2023
Net return per ordinary share
Revenue 3.68p 4.70p
Capital 174.07p (34.47p)
Total 177.75p (29.77p)
Strategic report
Annual Report and Financial Statements 2024
30
Premium/(discount)* to NAV
‡
(figures plotted on a monthly basis)
20242019 2020 2021 2022 2023
Years to 30 April
● Premium/(discount)
Source: LSEG/Baillie Gifford.
(20%)
(15%)
10%
5%
0%
(10%)
(5%)
* See Glossary of terms and Alternative Performance Measures on pages 118 to 121.
†
See disclaimer on page 114.
#
The comparative index is the FTSE World Index (in sterling terms).
‡
With borrowings deducted at fair value.
Past performance is not a guide to future performance.
Five year total return performance
(figures rebased to 100 at 30 April 2019)
20242019 2020 2021 2022 2023
Cumulative to 30 April
● NAV
‡
● Share price ● Index#
Source: LSEG/Baillie Gifford and relevant underlying index providers
†
.
Dividends are reinvested.
50
250
200
150
100
Five year
summary
The following charts indicate
how an investment in
Monks has performed
relative to its comparative
index and its underlying NAV
*
over the five year period
to 30 April 2024.
31
The Monks Investment Trust PLC
20242020 2021 2022 2023
Years to 30 April
● NAV
†
● Share price
Source: LSEG/Baillie Gifford and relevant underlying index providers
#
.
(40%)
(20%)
60%
40%
20%
0%
* See Glossary of terms and Alternative Performance Measures on pages 118 to 121.
†
With borrowings deducted at fair value.
#
See disclaimer on page 114.
‡
The comparative index is the FTSE World Index (in sterling terms).
Past performance is not a guide to future performance.
Annual NAV and share price total returns*
(relative to the index
‡
)
Annual NAV and share price total returns*
2024
2020
2021 2022 2023
Years to 30 April
● NAV
†
● Share price
Source: LSEG/Baillie Gifford and relevant underlying index providers
#
.
(60%)
60%
40%
20%
0%
(40%)
(20%)
Strategic report
Annual Report and Financial Statements 2024
32
Capital
At
30 April
Total
assets
£’000 *
Borrowings
£’000
Shareholders’
funds
£’000
NAV per share
(par) *
†
p
NAV per share
(fair) *
†
p
Share
price
p
(Discount )/
premium
(par) *
†
%
(Discount )/
premium
(fair) *
†
%
2014 1,012,608 39,712 972,896 426.8 425.2 370.0 (13.3) (13.0)
2015 1,147,620 124,029 1,023,591 478.3 476.0 435.1 (9.0) (8.6)
2016 1,096,804 85,855 1,010,949 472.4 470.1 425.3 (10.0) (9.5)
2017 1,521,130 107,056 1,414,074 660.8 656.8 653.0 (1.2) (0.6)
2018 1,759,541 103,007 1,656,534 762.8 759.0 785.0 2.9 3.4
2019 2,001,977 139,162 1,862,815 852.1 848.9 883.0 3.6 4.0
2020 2,107,386 143,762 1,963,624 878.3 875.6 914.0 4.1 4.4
2021 3,344,768 139,788 3,204,980 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 1,099.8 1,051.0 (3.5) (4.4)
2023 2,617,738 174,858 2,442,880 1,058.5 1,080.0 975.0 (7.9) (9.7)
2024 2,884,313 223,176 2,661,137 1,242.7 1,266.1 1,158.0 (6.8) (8.5)
Ten year
record
Source: LSEG/Baillie Gifford. See disclaimer on page 114.
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 118 to 121.
†
Alternative Performance Measure.
Past performance is not a guide to future performance.
Revenue Gearing ratios
Year to
30 April
Gross
revenue
£’000
Available
for ordinary
shareholders
£’000
Revenue
earnings per
ordinary share
p
Dividends paid
and proposed
per share
p
Ongoing
charges ratio *
†
%
Net
(equity)
gearing *
%
Gross
gearing *
%
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
2023 30,211 10,714 4.70 3.15 0.43 5 7
2024 29,888 8,241 3.68 2.10 0.44 7 8
33
The Monks Investment Trust PLC
Source: Baillie Gifford/LSEG and underlying data providers. See disclaimer on page 114.
* See Glossary of terms and Alternative Performance Measures on pages 118 to 121.
†
FTSE World Index (in sterling terms).
Past performance is not a guide to future performance.
Cumulative performance (taking 2014 as 100)
At 30 April
NAV per
share (fair)
NAV total
return (fair) *
Share
price
Share price
total return * Index
†
Index
total return
†
Revenue
earnings
per ordinary
share
Dividends
paid and
proposed
per ordinary
share
2014 100 100 100 100 100 100 100 100
2015 112 113 118 119 115 118 97 100
2016 111 113 115 117 113 119 47 38
2017 154 158 176 180 144 155 48 32
2018 179 182 212 217 151 167 54 35
2019 200 204 239 245 165 186 68 47
2020 206 211 247 254 159 185 87 63
2021 319 328 377 389 209 247 70 51
2022 259 266 284 293 217 262 75 59
2023 254 262 264 272 219 271 97 80
2024 298 308 313 325 255 322 76 53
Compound annual returns (%)
5 year 8.3% 8.6% 5.6% 5.8% 9.2% 11.6% 2.2% 2.6%
10 year 11.5% 11.9% 12.1% 12.5% 9.8% 12.4% (2.8%) (6.1%)
Cumulative to 30 April
20242014 2016 2019 2021 20232015 20182017 2020 2022
● Share price
*
● NAV (fair)
*
● Index
*†
0
450
400
300
350
150
100
50
250
200
Ten year total return performance
*
Strategic report
Annual Report and Financial Statements 2024
34
35
The Monks Investment Trust PLC
Business model
Business and status
The Monks Investment Trust PLC (‘the Company’) is
a public company limited by shares and 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.
Business review
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 105 equity holdings.
A portfolio review by the investment managers
is given on pages 10 to 13 and the investments
held at the year end are listed on pages 22 to 25.
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.
Strategic report
Annual Report and Financial Statements 2024
36
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 43 to 45 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 57 and when evaluating the
Managers as noted on page 53. 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 118 to 121. The one, five and
ten year records of the KPIs are shown on pages
28 to 33.
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.
Value assessment
Baillie Gifford & Co Limited undertakes regular
value assessments of its products. Following the
assessment in 2024, it was concluded that the
Company was expected to provide fair value for
a reasonably foreseeable period.
Borrowings
The Company’s borrowings at 30 April 2024
comprised:
• £60 million 1.86% Notes repayable in 2054
(30 April 2023 – £60 million);
• £40 million 1.77% Notes repayable in 2045
(30 April 2023 – £40 million);
• ¥2,500 million 2.17% Notes repayable in 2037
(30 April 2023 – nil);
• €18 million 4.55% Notes repayable in 2035
(30 April 2023 – nil);
• €35 million 4.29% Notes repayable in 2033
(30 April 2023 – nil);
• €18 million 4.30% Notes repayable in 2030
(30 April 2023 – nil); and
• £50 million under the £150 million floating rate
facility with National Australia Bank (30 April 2023
– £75 million).
Further details of the Company’s borrowings are set
out in notes 11 and 12 on pages 94 and 95 and details
of the Company’s gearing levels are included in the
Chairman’s Statement on page 7 and the Ten Year
Record on page 32.
37
The Monks Investment Trust PLC
Principal and emerging risks
As explained on pages 62 and 63 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.
Decreasing RiskIncreasing Risk No Change
An upwards arrow, dash or downwards arrow has
been included to show if the risk level has increased,
not changed, or decreased since it was last
reported in last year’s Annual Report and Financial
Statements. The Board considers geopolitical
tensions including hostilities in Ukraine and Gaza,
and macroeconomic factors such as the interest rate
environment, 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.
Investment and strategic risks
Investment
strategy risk
What is the 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.
How is it managed?
To mitigate this risk, the Board
regularly reviews and monitors:
the Company’s objective and
investment policy and strategy;
the investment portfolio
and its absolute and relative
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.
Change in
risk level
Current assessment of risk
This risk is considered to
be stable as there are signs
that the market’s appetite for
growth stocks, typically held
by the Company, is recovering
following the recent period of
heightened macroeconomic
and geopolitical concerns.
Financial
risk
What is the 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 98 to
104.
How is it managed?
In order to oversee this risk,
the Board considers at each
meeting various metrics
including the composition and
diversification of the portfolio
by geography, industry, growth
category and holding size
along with sales and purchases
of investments. Individual
investments are discussed with
the portfolio managers together
with their general views on the
various investment markets and
sectors. A strategy meeting is
held annually. The Board has, in
particular, considered the impact
of heightened market volatility
owing to macroeconomic and
geopolitical concerns. The value
of the Company’s investment
portfolio would be affected
by any impact, positively or
negatively, on sterling but such
impact would be partially offset
by the effect of exchange rate
movements on the Company’s
euro and yen denominated
borrowings.
Change in
risk level
Current assessment of risk
This risk is considered to be
high but unchanged as a result
of heightened macroeconomic
and geopolitical concerns which
continue to create a challenging
environment for businesses, but
with some signs that interest
rate pressures, for example,
may be starting to recede.
Strategic report
Annual Report and Financial Statements 2024
38
Discount
risk
What is the 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.
How is it managed?
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 or issue shares
(including authority to sell
shares held in treasury), when
deemed by the Board to be
in the best interests of the
Company and its shareholders.
Change in
risk level
Current assessment of risk
The Company’s discount
remained relatively steady
during the year. The Company
has been buying back shares
for treasury since January 2022
and shareholder feedback
indicates that this has been a
welcome strategy to maintain
liquidity in the Company’s
shares.
Political and
associated
economic
risk
What is the risk?
Political change in areas in
which the Company invests
or may invest may have
practical consequences
for the Company.
How is it managed?
To mitigate this risk,
developments are closely
monitored and considered
by the Board. The Board
has particular regard
to macroeconomic and
geopolitical tensions
and monitors portfolio
diversification by revenue
stream where appropriate, as
well as by investee companies’
primary location and considers
the potential for negative
impacts arising from military
action, trade barriers
or other political factors.
Change in
risk level
Current assessment of risk
This risk is increasing as
governments and consumers
around the world continue to
assess the impact of heightened
geopolitical tensions and
conflicts as well as challenging
macroeconomic conditions.
Climate and
governance
risk
What is the risk?
Perceived problems on
environmental, social and
governance (‘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 Managers 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.
How is it managed?
This is mitigated by the
Managers’ strong ESG
stewardship and engagement
policies, which have been
endorsed by the Company,
and which are fully integrated
into the investment process.
Further details of the Managers’
approach are set out on page
15 and also on the Managers’
website bailliegifford.com/esg.
The Directors have considered
the impact of climate change on
the Financial Statements of the
Company and this is included
in note 1a to the Financial
Statements on page 86.
Change in
risk level
Current assessment of risk
The Managers continue to
embed analysis of ESG factors
within the investment process.
Although climate activists have
recently targeted the Managers’
sponsorship of cultural events,
media coverage has been
balanced and has largely
recognised that the objective
is not to seek perfection but
to focus on materiality and the
direction of travel, with the
understanding that engagement
can encourage responsibility
and meaningful change.
Decreasing RiskIncreasing Risk No Change
39
The Monks Investment Trust PLC
Regulatory
risk
What is the 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.
Changes to the regulatory
environment could negatively
impact the Company.
How is it managed?
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. Should major
regulatory change seem likely
to impose disproportionate
compliance burdens on the
Company, representations are
made to the relevant authorities
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 with
reference to inside information.
Change in
risk level
Current assessment of risk
All control procedures are
working effectively. There have
been no material regulatory
changes that have impacted
the Company during the year.
Custody and
depositary
risk
What is the risk?
Safe custody of the
Company’s assets may be
compromised through control
failures by the depositary,
including breaches of cyber
security.
How is it managed?
To mitigate this risk, the Audit
Committee 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 who
also agree uncertificated
unlisted portfolio holdings to
confirmations from investee
companies. In addition, the
existence of assets is subject
to annual external audit and
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.
Change in
risk level
Current assessment of risk
All control procedures are
working effectively.
Decreasing RiskIncreasing Risk No Change
Strategic report
Annual Report and Financial Statements 2024
40
Operational
risk
What is the 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.
How is it managed?
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 or major
disaster. The Audit Committee
reviews Baillie Gifford’s Report
on Internal Controls and the
reports by other key third party
providers are reviewed by
Baillie Gifford on behalf of the
Board and a summary of the key
points is reported to the Audit
Committee and any concerns
investigated. The key third
party service providers have
not experienced significant
operational difficulties affecting
their respective services to
the Company.
Change in
risk level
Current assessment of risk
All control procedures are
working effectively.
Leverage
risk
What is the 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 impact 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,
although it does not currently
do so. The use of such
contracts may have a gearing
effect so as to enhance, or
worsen, returns relative to the
amount invested in this way.
How is it managed?
To mitigate this risk, all
borrowings require the prior
approval of the Board and
leverage levels are discussed
by the Board and Managers
at every meeting. Covenant
levels are monitored regularly.
Details of the Company’s
current borrowing facilities and
drawings can be found in notes
11 and 12 on pages 94 and 95.
The majority of the Company’s
investments are in quoted
securities that are readily
realisable. Further information
on leverage can be found on
page 114 and in the Glossary
of terms and Alternative
Performance Measures on
pages 118 to 121.
Change in
risk level
Current assessment of risk
No significant change in risk
level. The Company secured
four new tranches of
medium-term private placement
loan notes during the year,
allowing it to lower its use
of the higher-cost revolving
credit facility.
Decreasing RiskIncreasing Risk No Change
41
The Monks Investment Trust PLC
Cyber
security risk
What is the risk?
A cyber-attack on
Baillie Gifford’s network
or that of a third party
service provider could
impact the confidentiality,
integrity or availability
of data and systems.
How is it managed?
To mitigate this risk, the Audit
Committee reviews Reports
on Internal Controls published
by Baillie Gifford and other
third party service providers.
Baillie Gifford’s Business Risk
Department report to the Audit
Committee on the effectiveness
of information security controls
in place at Baillie Gifford and its
business continuity framework.
Cyber security due diligence
is performed by Baillie Gifford
on third party service providers
which includes a review of crisis
management and business
continuity frameworks.
Change in
risk level
Current assessment of risk
This risk is seen as increasing
due to recent indications that
the continuation of geopolitical
tensions could lead to cyber
attacks. Emerging technologies,
including AI, could potentially
increase information security
risks.
Emerging
risks
As explained on page 62 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.
Decreasing RiskIncreasing Risk No Change
Strategic report
Annual Report and Financial Statements 2024
42
Viability statement
Having regard to provision 31 of the UK Corporate
Governance Code, the Directors have assessed the
prospects of the Company over a five year period.
The Directors consider 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
37 to 41), 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 revolving credit facility
expiring in 2024, and loan notes repayable in 2030,
2033, 2035, 2037, 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. 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 risk of further market deterioration resulting
from geopolitical concerns and macroeconomic
pressures. 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 five years.
43
The Monks Investment Trust PLC
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; 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.
Stakeholder Why we engage How we engage and what we do
Shareholders Shareholders are, collectively, the
Company’s owners: providing them with
a return for their investment in accordance
with the Company’s investment policy and
objective is the reason for its existence.
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.
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.
Baillie Gifford –
Managers and
Secretaries
The Company’s Board has delegated the
management of the Company’s portfolio,
and the administration of the Company’s
operations including fulfilment of regulatory
and taxation reporting requirements, to
Baillie Gifford. Baillie Gifford is therefore
responsible for the substantial activities of
the Company and has the most immediate
influence on its conduct towards the other
stakeholders, subject to the oversight and
strategic direction provided by the Board.
The Board seeks to engage with its Managers in a collaborative
and collegiate manner, encouraging open and constructive
discussion and debate, while 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 are best
served, by keeping cost levels proportionate and competitive
and by maintaining the highest standards of business conduct.
Strategic report
Annual Report and Financial Statements 2024
44
Stakeholder Why we engage How we engage and what we do
Portfolio
companies
As all of the Company’s operations are
conducted by third party professional
providers, it is the companies held in its
investment portfolio which have the primary
real-world impact in terms of social and
environmental change, both positively
and negatively, as well as generating,
through their commercial success, the
investment growth sought by the Company’s
shareholders. The investee companies
have an interest in understanding their
shareholders’ investment rationale in
order to assure themselves that long-term
business strategies will be supported.
The Board is cognisant of 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
is an important part of its responsibility to all stakeholders.
The Board’s review of the Managers includes an assessment of
their ESG approach and its application in making investment
decisions. The Board regularly reviews Governance Engagement
reports, which document the Managers’ interactions with
investee companies on ESG matters (see page 15).
Brokers The Company’s brokers provide an interface
between the Company’s Board and its
institutional shareholders.
The Company’s brokers regularly attend Board meetings, and
provide reports to those meetings, in order to keep the Board
apprised of shareholder and wider market sentiment regarding
the Company. They also arrange forums for shareholders to
meet the Chairman, or other Directors, outwith the normal
general meeting cycle.
Registrars The Company’s registrars provide an
interface with those shareholders who hold
the Company’s shares directly.
The Company Secretaries liaise with the registrars to ensure the
frequency and accuracy of communications to shareholders is
appropriate, and monitor shareholder correspondence to ensure
that the level of service provided by the registrars is acceptable.
The Manager’s risk function reviews the registrars’ internal
controls report and reports on the outcome of this review to the
Audit Committee.
Auditor The Company’s auditor has a responsibility
to provide an opinion on whether the
Company’s financial statements as a whole
are free from material misstatement, as set
out in more detail in the Auditor’s Report to
the Members on pages 75 to 81.
The Company’s auditor meets with the Audit Committee, in the
absence of the Managers where deemed necessary, and the
Managers undertake to provide all information requested by the
auditor in connection with the Company’s annual audit promptly
and to ensure that it is complete and accurate in all respects.
Depositary and
custodian
The depositary and custodian are
responsible for the safekeeping of the
Company’s financial instruments, as set
out in more detail on page 53.
The depositary provides the Audit Committee with a report
on its monitoring activities. The Board and Managers seek to
engage with the depositary and custodian in a collaborative
and collegiate manner, encouraging open and constructive
discussion and debate, while 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 are best
served by keeping cost levels proportionate and competitive,
and by maintaining the highest standards of business conduct.
Lenders Lenders such as holders of debt instruments
(debentures, bonds and private placement
loan notes) and banks providing fixed
or revolving credit facilities provide the
Company’s gearing and have an interest
in the Company’s ongoing financial health
and viability.
The Company’s legal advisers review all legal agreements in
connection with the Company’s debt arrangements and advise
the Board on the appropriateness of the terms and covenants
therein. The Managers and Secretaries ensure that the
frequency and accuracy of reporting on, for example, covenant
certification, is appropriate and that correspondence from the
lenders receives a prompt response.
AIC/industry peers The Association of Investment Companies
(‘AIC’) and the Company’s investment
trust industry peers have an interest in
the Company’s conduct and performance,
as adverse market sentiment towards one
investment trust can affect attitudes towards
the wider industry.
The Company is a member of the AIC, and the Directors and/
or the Managers and Secretaries (as appropriate) participate in
technical reviews, requests for feedback on proposed legislation
or regulatory developments, corporate governance discussions
and/or training.
45
The Monks Investment Trust PLC
Stakeholder Why we engage How we engage and what we do
Investment
platforms
Investment platforms provide an interface
with shareholders who invest in the
Company indirectly.
The Managers liaise with the various investment platforms on
strategies for improving communications with the Company’s
shareholders who hold their shares via these platforms. An
annual timetable of key dates is published on the Company’s
website, for the ease of reference of such shareholders.
Wider society and
the environment
No entity, corporate or otherwise, can
exist without having an influence on the
society in which it operates or utilising the
planet’s resources. Through its third-party
relationships, as noted above, the Company
seeks to be a positive influence and, in
circumstances where that is not possible,
to mitigate its negative impacts insofar as
is possible.
The Board and Managers’ interactions with the various
stakeholders as noted above form the principal forms of
direct engagement with wider society and in respect of the
environment (commercial, financial, and in terms of planetary
health and resources).
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 securing in December 2023 of four tranches
of medium-term private placement debt, across
a range of maturities, to lower the average interest
rate of the Company’s financing;
• the buying back of over 16 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 enhanced
NAV per share for remaining shareholders;
• the decision to declare a dividend of 2.10p,
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;
• as part of the Board’s succession planning,
the completion of the recruitment process and
subsequent appointment of Randeep Grewal
and Stacey Parrinder-Johnson, with effect from
1 March 2024, to enhance the Board’s fund
management and investment industry expertise.
This appointment is consistent with the AIC
Corporate Governance Code principle that ‘a
successful company is led by an effective board,
whose role is to promote the long-term success
of the company, generating value for shareholders
and contributing to wider society.’ The search
was conducted using external consultants
Cornforth Consulting with due regard for gender
and ethnic diversity.
Strategic report
Annual Report and Financial Statements 2024
46
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.
Board representation
The Board’s policy on diversity and relevant
disclosures are set out on pages 59 and 60.
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 64.
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 37 to 41 and
factors which the Board consider to indicate the
Company’s positive prospects and financial health
are discussed in the Viability statement on page 42.
Further comments on the outlook for the Company
and its investment portfolio are set out in the
Chairman’s statement on pages 6 to 9 and the
Managers’ report on pages 10 to 13.
The Strategic report which includes pages 5 to 46
was approved by the Board of Directors and signed
on its behalf on 1 July 2024.
KS Sternberg
Chairman
Governance
report
This Governance report, which includes
pages 47 to 73 outlines the Board’s
approach to the governance of your
Company. We believe that good governance
builds better outcomes and we are
committed to high standards of corporate
governance and transparency.
Governance report
Annual Report and Financial Statements 2024
48
Directors and
managers
Directors
Karl Sternberg
Chairman
Appointed to the
Board in 2013
and as Chairman
in 2020
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 Jupiter Fund Management plc,
Clipstone Logistics REIT plc and Apax Global Alpha
Limited, where he will become chairman 1 July 2024.
Claire Boyle
Director
Appointed 2020
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 of Nippon Active Value Fund
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.
Dr Dina Chaya
Director
Appointed 2022
Dina Chaya was appointed a Director in 2022. She
is a partner at OrbiMed and has been investing in the
private equity and venture capital healthcare industry
since 2001. Previously Dr Chaya worked for Omega
Funds, NeoMed, 3i and Index Ventures. She received
a BA in Natural Sciences from the University of
Cambridge, a PhD in Molecular and Cellular Biology
from Paris VI University and is a CFA charterholder.
49
The Monks Investment Trust PLC
Belinda Richards
Director
Appointed 2016
Belinda Richards was appointed a Director in 2016
and became Senior Independent Director in December
2023. 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
a non-executive director of Phoenix Group Holdings.
Randeep Singh Grewal was appointed a Director with
effect from 1 March 2024. He has been chair of BB
Healthcare Trust plc since July 2019, having served
as a non-executive director on that board since
December 2016. He is also a non-executive director
of the Global Smaller Companies Trust plc. Having
read Medicine and Computer Science at Jesus
College, Cambridge, he trained as a vascular surgeon
before transferring his skills in healthcare and
technology to working as an analyst and portfolio
manager with Tudor Capital in 1998. He was a senior
portfolio manager at F&C Asset Management from
2010 to 2012 and for Trium Opportunistic Equity
Fund from 2015 to 2019.
Randeep Grewal
Director
Appointed 2024
Stacey
Parrinder-Johnson
Director
Appointed 2024
Stacey Parrinder-Johnson was appointed a Director
with effect from 1 March 2024. She was, until
September 2023, chief investment officer of Investec
Wealth & Investment UK, where she was also a
member of the executive management committee,
chair of the investment committee, and a member
of the executive risk management committee. Stacey
brings twenty years of experience in asset selection,
portfolio management, and manager analysis across
UK and international mandates, and has particular
strength in investment trust governance, sustainability
and risk issues. She has previously served as a
pension trustee and has been a governor of the
University of Portsmouth since November 2023.
Governance report
Annual Report and Financial Statements 2024
50
All of the Directors are non-executive, all are members of the
Management Engagement Committee and the Nomination Committee,
and all are members of the Audit Committee with the exception
of Karl Sternberg, who attends the Audit Committee by invitation.
Professor
Sir Nigel Shadbolt
Director
Appointed 2017
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 chair
of the Open Data Institute.
Jeremy Tigue
Audit Committee
Chair
Appointed 2014
Jeremy Tigue was appointed a Director in 2014.
He became Audit Committee Chair in 2015 and
Senior Independent Director in 2019, handing that
role to Belinda Richards in December 2023. Mr
Tigue was the fund manager of F&C Investment
Trust PLC from 1997 to 2014. He was a director of
abrdn Equity Income Trust plc until February 2024
and of The Mercantile Investment Trust plc until
March 2022. He was a director of the Association
of Investment Companies from 2003 to 2013.
51
The Monks Investment Trust PLC
Spencer Adair
Spencer is an investment manager in the Global
Alpha Team. He joined Baillie Gifford in 2000
and became a partner in 2013. He has been an
investment manager in the Global Alpha Team since
its inception in 2005 and for Monks Investment Trust
since 2015. He became an investment manager in
the International Concentrated Growth Strategy
in 2021. Spencer has also spent time working in
the Fixed Income, Japanese, European, Emerging
Markets and UK Equities teams. He graduated
BSc in Medicine from the University of St Andrews
in 1997.
Malcolm MacColl
Malcolm has been an investment manager in the
Global Alpha Team since its inception in 2005 and
this is his sole portfolio responsibility. He joined
Baillie Gifford in 1999 and has worked in the UK
Small Cap and North American teams. He became
a partner of the firm in 2011 and Managing Partner
in 2021. Malcolm graduated MA in Economics and
History in 1998 and MLitt in Economics, Politics
and Management in 1999 from the University of
St Andrews.
Portfolio Managers
Spencer Adair
Lead portfolio
Manager
Malcolm MacColl
Deputy portfolio
Manager
Helen Xiong
Helen is an investment manager in the Global Alpha
Team. She joined Baillie Gifford in 2008 and became
a partner in 2020. In addition to Global Alpha, Helen
has spent time working in the Developed Asia, UK, US
Equity Growth, and Emerging Markets Equity teams.
She graduated BSc (Hons) in Economics from the
University of Warwick in 2007 and MPhil in Economics
from the University of Cambridge in 2008.
Helen Xiong
Deputy portfolio
Manager
Governance report
Annual Report and Financial Statements 2024
52
The Directors present their
report together with the Financial
Statements of the Company for
the year to 30 April 2024.
Directors’ report
Corporate governance
The Corporate governance report is set out on pages
57 to 64 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.
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
& Co Limited and Baillie Gifford & Co are both
authorised and regulated by the Financial
Conduct Authority.
Baillie Gifford is one of the largest investment trust
managers in the UK and currently manages twelve
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
£225 billion. Based in Edinburgh, it is one of the
leading privately owned investment management firms
in the UK, with 58 partners and a staff of around 1,800.
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.
53
The Monks Investment Trust PLC
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 90 for more details).
The Board considers the Company’s investment
management and secretarial arrangements on a
ongoing basis and a formal review is conducted by
the Management Engagement Committee annually.
The Committee considered the following topics,
amongst others, 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 pages 48 to 50.
All Directors will retire at the Annual General
Meeting. Randeep Grewal and Stacey Parrinder-
Johnson offer themselves for election, it being the
first such meeting following their appointment,
and all the other Directors offer themselves for
re-election, with the exception of Jeremy Tigue.
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 2024 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 for consideration on an
ongoing basis and, as part of its due diligence,
to the Nomination Committee on an annual basis.
The Committee considers these carefully, taking into
account the circumstances surrounding them, and
makes a recommendation to the Board on whether
or not the potential conflicts should be authorised.
Board authorisation is for a period of one year.
Having considered the lists of potential conflicts
there were no situations which gave rise to a direct
or indirect interest of a Director which conflicted
with the interests of the Company.
Governance report
Annual Report and Financial Statements 2024
54
Dividends
The Board recommends a final dividend of 2.10p
per ordinary share for the year. If approved, the
recommended final dividend on the ordinary shares
will be paid on 17 September 2024 to shareholders
on the register at the close of business on 9 August
2024. The ex-dividend date is 8 August 2024. The
Company’s Registrar offers a Dividend Reinvestment
Plan (see page 113) and the final date for elections
for this dividend is 27 August 2024.
Share capital
Capital structure
The Company’s capital structure consists of
253,171,460 ordinary shares of 5p each as at 30
April 2024, comprising 214,130,666 shares in issue
and 39,040,794 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.
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 109 to 111.
Major interests disclosed in the Company’s shares
Name
No. of ordinary
5p shares held at
30 April 2024
% of
issue
Rathbone Investment
Management Ltd
19,341,323 9.0
Holdings above are stated as per the most recent
notification to a Regulatory Information Service.
There have been no changes to the major interests
in the Company’s shares disclosed between
30 April 2024 and 26 June 2024.
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
£1,149,433.30). During the year to 30 April 2024
the Company issued no shares using this authority.
Between 1 May and 26 June 2024, the Company
issued no shares.
The issuance 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 13 in the Notice of Annual General
Meeting seeks a general authority for the Directors
to allot shares up to an aggregate nominal amount
of £1,053,078.33. This amount represents 10% of
the Company’s total ordinary share capital in issue
at 26 June 2024 and meets institutional guidelines.
This authority will continue until the conclusion of
the Annual General Meeting to be held in 2025 or
on the expiry of 15 months from the passing of the
resolutions, if earlier.
Resolution 14, 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 £1,053,078.33 (representing
10% of the issued ordinary share capital of the
Company as at 26 June 2024).
These authorities 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 2025 or
on the expiry of 15 months from the passing of the
resolutions, if earlier.
55
The Monks Investment Trust PLC
Purchase of own shares
At the last Annual General Meeting the Company
was granted authority to purchase up to 34,023,652
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 2024. During the year to 30
April 2024 the Company bought back a total of
16,666,000 shares, representing 7.2% of the issued
share capital at 30 April 2023, at a discount to net
asset value, on 86 separate occasions at an average
price of 1,032.2 pence per share and a total cost of
£172,887,000. These shares are held in treasury for
reissue. No shares were sold from treasury during
the year, therefore 39,040,794 shares were held in
treasury at 30 April 2024. In the period 1 May 2024
to 26 June 2024, a further 3,515,000 shares were
bought back. At 26 June 2024 42,555,794 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 2025.
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 15 in the Notice of Annual General
Meeting on page 108. 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.
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 19 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.
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.
Governance report
Annual Report and Financial Statements 2024
56
Post Balance Sheet events
The Directors confirm that there have been no post
Balance Sheet events which require adjustment of,
or disclosure in, the Financial Statements or notes
thereto up to 1 July 2024.
Greenhouse Gas Emissions and Streamlined
Energy and Carbon Report (‘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
reasons set out above, the Company considers
itself to be a low energy user and, therefore, is not
required to disclose energy and carbon information
under the SECR regulations.
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
1 July 2024
57
The Monks Investment Trust PLC
Compliance
The Board confirms that the Company has complied
throughout the year under review with the relevant
provisions of the UK Code and the recommendations
of the AIC Code with the following exceptions. The
UK 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 are not
relevant to the Company. The need for an internal
audit function specific to the Company has been
addressed on page 66. The decision to defer, for one
year, incurring shareholder expense to arrange for
an externally-facilitated Board appraisal, given the
recruitment of two new Directors during the year and
anticipated departure of another, is discussed on
page 61.
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 eight 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.
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 UK ‘Code’) which can be
found at frc.org.uk, and the relevant
principles of the Association of
Investment Companies Code
of Corporate Governance (‘AIC
Code’) issued in 2019 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.
Governance report
Annual Report and Financial Statements 2024
58
Ernst & Young LLP
Auditor
The Bank of
New York Mellon
(International) Limited
Depositary and custodian
Computershare
Investor Services
PLC
Registrar
Investec
Bank plc
Company broker
Board of Directors
Comprises independent
non-executive directors
Chairman: Karl Sternberg
Senior Independent Director:
Belinda Richards
Audit
Committee
Chair: Jeremy Tigue
*
Purpose: The primary purpose of the
Audit Committee is to provide oversight
of the financial reporting process,
the audit process, the Company’s system
of internal controls and compliance with
laws and regulations.
Management Engagement
Committee
Chair: Karl Sternberg
Purpose: The role of the Management
Engagement Committee is to ensure that
the Managers remain 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.
Nomination
Committee
Chair: Karl Sternberg
Purpose: The main purpose of the
Nomination Committee is to oversee Board
recruitment and succession planning as
well as Board appraisals including
identifying training needs.
Third-party service providers
appointed by the Board
Alternative Investment Fund Managers,
Company Secretaries and fund administrators:
Baillie Gifford & Co Limited (wholly owned
subsidiary of Baillie Gifford & Co)
Dealing activity and transaction reporting:
Baillie Gifford Overseas Limited and
Baillie Gifford Asia (Hong Kong) Limited
*To be succeeded by Claire Boyle at 2024 AGM
59
The Monks Investment Trust PLC
Belinda Richards took over as Senior Independent
Director (SID) from Jeremy Tigue in December 2023,
and, as such, she 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 pages 48 to 50.
There is an agreed procedure for Directors to seek
independent professional advice, if necessary, at the
Company’s expense.
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 is responsible for considering
Directors’ potential conflicts of interest and for
making recommendations on whether or not
the potential conflicts should be authorised.
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.
Appointments to the Board
New Directors are appointed by the Board, following
recommendation by the Nomination Committee.
During the year, the Committee engaged Cornforth
Consulting, an external search consultancy with
no other connection to the Company or any of its
Directors, to recruit new Directors to join the Board
in anticipation of a programme of Board refreshment
over the coming years. Randeep Grewal and Stacey
Parrinder-Johnson were identified as the preferred
candidates and appointed to the Board with effect
from 1 March 2024 as the Committee concluded that
their knowledge and experience, particularly of the
investment industry, would be of great benefit to
the Company.
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.
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
those of existing Directors, with a view to ensuring
that the Board remains well-placed to help the
Company achieve its investment and governance
objectives. Within the context of a small, entirely
non-executive Board, a single appointment or
retirement can have a significant impact on
percentage representation, and a limited number
of senior roles are available. The Board will
endeavour to comply with the FCA Listing Rules
targets but notes that the circumstances of
Directors may prevent them from accepting the
additional responsibilities of a senior role and that
Directors may prefer not to disclose their ethnic
background. In such circumstances, the value
brought to the Board by their inclusion outweighs
the ambition of meeting diversity targets.
Diversity of the Board
As noted above, during the year external search
consultancy Cornforth Consulting was appointed to
search for new Directors with the requisite skills and
experience. The Nomination Committee considered
a longlist that was 29% women, 7% candidates of
non-white or mixed race ethnicity, and a shortlist
that was 38% women, 13% candidates of
non-white or mixed race ethnicity.
The following disclosures are provided in respect
of the FCA Listing rules targets that: i) 40% of a
board should be women; ii) at least one senior role
should be held by a woman; and iii) at least one
board member should be from a non-white ethnic
background, as defined by the Office of National
Statistics (ONS) criteria.
Governance report
Annual Report and Financial Statements 2024
60
As an externally managed investment company with
no chief executive officer (CEO) or chief financial
officer (CFO), the roles which qualify as senior under
FCA guidance are Chair and Senior Independent
Director (SID). The Board also considers Audit
Committee Chair to represent a senior role within
this context. At 30 April 2024, which shall be
used as the reference date for the disclosures in
accordance with the Listing Rules 9.8.6R(9), the
Board met the targets. There have been no changes
to Board membership between 30 April 2024 and
26 June 2024.
Gender Number %
Senior
roles *
Men 4 50 1
Women 4 50 1
Prefer not to say – – –
* The Board also considers Audit Committee Chair to be a senior role.
The role of Audit Committee Chair is currently held by a man.
Ethnic background Number %
Senior
roles *
White 6 75.0 2
Mixed/Multiple 1 12.5 –
Asian/Asian British 1 12.5 –
Prefer not to say – – –
* The Board also considers Audit Committee Chair to be a senior role.
The current Audit Committee Chair’s ethnic background is white.
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.
Mr Jeremy Tigue, who joined the Board at the end
of September 2014, has indicated an intention not to
offer himself for re-election at the 2024 AGM, when
he will reach ten years in the role. His role as Senior
Independent Director passed to Belinda Richards in
December 2023, and Claire Boyle will succeed him
as Audit Committee Chair at the AGM.
Mr Karl Sternberg has been a Director since 2013 and
will therefore have served 11 years at the AGM date.
He became Chairman in 2020. Over the last five years
the Board has seen the retirement of three Directors
with combined service of over 56 years. The Board
therefore considers it a matter of good succession
planning, to retain his services as Chairman, in order
to manage an orderly succession as discussed in the
Chairman’s Statement on page 8.
Policy on Chair’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 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.
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. There
were also a number of ancillary and sub-committee
meetings during the year to 30 April 2024, in
particular to consider Director recruitment and private
placement note issuance, which are not included.
The Annual General Meeting was attended by all
the Directors serving at that date, with the exception
of Belinda Richards, who was prevented from
attending by illness.
61
The Monks Investment Trust PLC
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
Dr D Chaya 4 2 1 1
R Grewal* 1 0 1 1
S Parrinder-
Johnson*
1 0 1 1
BJ Richards 3 2 1 1
Professor
Sir Nigel Shadbolt
4 2 1 1
KS Sternberg 4 2
†
1 1
JJ Tigue 4 2 1 1
*
Appointed effective 1 March 2024; attended all meetings held between
appointment date and year end.
†
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 Belinda Richards, 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 was given due consideration for
Board evaluations in 2024 but, given the addition of
two new Directors and the forthcoming departure of
a long-standing Board member, it was not felt that
the expense of such a process would represent good
value for shareholders.
The Board has appointed Lintstock to conduct an
externally facilitated review for 2025, to reflect on
the new Board dynamics and identify any skills gaps
for future recruitment.
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 Managers
remain 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 Managers;
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.
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 68 to 71.
Governance report
Annual Report and Financial Statements 2024
62
Audit Committee
The report of the Audit Committee is set out on
pages 65 to 67.
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 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
63
The Monks Investment Trust PLC
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 114),
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.
Going Concern
In accordance with The Financial Reporting
Council’s guidance on going concern and liquidity
risk, the Directors have undertaken a rigorous review
of the Company’s ability to continue as a going
concern.
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 37 to 41 and in
note 19 to the Financial Statements. The Board has,
in particular, considered the impact of heightened
market volatility arising from macroeconomic and
geopolitical concerns, including hostilities in Ukraine
and Gaza, US-China and China-Taiwan tensions and
global inflationary pressures, but does not believe
the Company’s going concern status is affected.
The Company’s assets, the majority of which are
investments in listed 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 four tranches of private placement debt
across a range of maturities. As at 30 April 2024,
the £150 million NAB facility had £100 million
available commitment 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, are not experiencing significant
operational difficulties affecting their respective
services to the Company. 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 set out in the Viability Statement on page
42, which assesses the prospects of the Company
over a period of five years, that the Company will
continue in operational existence for the period to
31 July 2025, 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
as 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 page 123).
The Company’s Annual General Meeting provides
a forum for communication with all shareholders.
The votes lodged for each resolution are announced
as soon as practicable following the meeting and is
published at monksinvestmenttrust.co.uk. 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.
Governance report
Annual Report and Financial Statements 2024
64
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.
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 utilise data sourced from a third-
party 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.
Best practice in this area is evolving rapidly, and
it is therefore challenging to establish reliable
comparisons company-to-company and
year-on-year. Based on the most recent analysis,
as at 30 April 2024 the carbon intensity of The
Monks Investment Trust’s portfolio was 71% lower
than the Company’s benchmark (FTSE World
Index). This analysis estimate is based on 81% of
the value of the Company’s equity portfolio which
reports on carbon emissions and other carbon-
related characteristics and Scope 1&2 Weighted
Average Carbon Intensity (WACI) by Revenue. Based
on reported and estimated Scope 1,2&3 WACI by
Revenue, covering 93% of the Company’s portfolio,
carbon intensity was 61% lower than the benchmark
index at 30 April 2024.
Baillie Gifford’s Task Force on Climate-Related
Financial Disclosures (‘TCFD’) Climate Report
is available on the Managers’ website at
bailliegifford.com. A Monks-specific TCFD climate
report is also available on the Company’s page of the
Managers’ website at monksinvestmenttrust.co.uk.
The Managers have considered the EU Sustainable
Finance Disclosures Regulation (‘SFDR’) and further
details can be found on page 115. The Managers
are reviewing the UK FCA’s sustainability disclosure
requirements and investment labels regime (‘SDR’).
The Managers consider that all materials published
in connection with the Company are in compliance
with the anti-greenwashing rule effective from
31 May 2024, and are assessing the appropriateness
for the Company of the various labels available
under the regime, in advance of their introduction.
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
1 July 2024
65
The Monks Investment Trust PLC
The Audit Committee consists of
all Directors, with the exception
of Karl Sternberg, who attends
by invitation. The members of
the Committee consider that
they have the requisite financial
skills and experience to fulfil the
responsibilities of the Committee.
Jeremy Tigue is the Audit
Committee Chair.
The Audit Committee consists of Claire Boyle,
Dr Dina Chaya, Randeep Grewal, Stacey
Parrinder-Johnson, Belinda Richards, Professor
Sir Nigel Shadbolt and Jeremy Tigue, who is
the Audit Committee Chair. 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 Secretaries 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 both
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.
Audit
Committee report
Governance report
Annual Report and Financial Statements 2024
66
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 98.7% 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 2024 was agreed to external price sources.
The Committee considered the Managers’ proposed
valuation of all unlisted and suspended investments
at 30 April 2024, 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 that might
affect the Company’s viability over a period of five
years and its ability to continue as a going concern
for the period to 31 July 2025, 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 42 and statement on going
concern on page 63. 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.
67
The Monks Investment Trust PLC
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.
Internal controls and risk management
The Committee reviewed the effectiveness of the
Company’s risk management and internal controls
systems as described on pages 62 and 63. 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. No non-audit fees were incurred by the
Company during the year to 30 April 2024 (2023 –
£22,500 being assurance work in connection with
the Company’s combination with The Independent
Investment Trust PLC (IIT) in November 2022).
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. Accordingly,
Ahmer Huda became the lead audit partner for the
Company’s audit for the year ended 30 April 2023
and subsequent years.
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 72 to 81.
On behalf of the Board
JJ Tigue
Audit Committee Chair
1 July 2024
Governance report
Annual Report and Financial Statements 2024
68
Statement by the Chairman
The Directors’ Remuneration Policy is subject to
shareholder approval every three years, or sooner
if an alteration to the policy is proposed. The
Remuneration Policy, which is set out below, was
approved by shareholders at the Annual General
Meeting held in September 2023, and is therefore
subject to shareholder approval at the 2026 Annual
General Meeting.
The Board reviewed the level of fees during the
year and it was agreed that with effect from 1 May
2024 the Chairman’s fee should increase by £1,000
and Directors’ fees should increase by £1,000 per
annum with the increments for the Audit Committee
Chair and Senior Independent Director both also to
increase by £1,000. The fee levels were last increased
on 1 May 2023.
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.
Directors’
remuneration report
This report has been prepared in
accordance with the requirements
of the Companies Act 2006.
69
The Monks Investment Trust PLC
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 in arrears and are determined within the limit
set out in the Company’s Articles of Association,
which is currently £400,000 in aggregate.
The fees paid to Directors in respect of the year
ended 30 April 2024 and the expected fees payable
in respect of the year ending 30 April 2025 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 the year
ending 30 April
2025
£
Fees for the
year ended
30 April
2024
£
Chairman’s fee 51,000 50,000
Non-executive Director fee 35,000 34,000
Additional fee for
Audit Committee Chair*
7,000 6,000
Additional fee for the Senior
Independent Director*
4,000 3,000
* The Audit Committee Chair performs additional responsibilities as
noted in the Audit Committee Report on pages 65 to 67. The Senior
Independent Director (‘SID’) performs additional responsibilities as noted
on page 59.
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 75 to 81.
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 26 June 2024.
Name
Nature
of interest
Ordinary
shares held
at 30 April
2024
Ordinary
shares held
at 30 April
2023
CM Boyle n/a – –
Dr D Chaya n/a – –
RS Grewal Beneficial 875 –
SL Parrinder-
Johnson
Beneficial 3,250 –
BJ Richards Beneficial 13,205 11,397
Professor Sir
Nigel Shadbolt
Beneficial 2,305 –
KS Sternberg Beneficial 25,147 25,147
JJ Tigue Beneficial 41,456 41,320
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, 99.5% were in favour, 0.3% were against
and votes withheld were 0.2%. At the last Annual
General Meeting at which the Directors’ Remuneration
Policy was considered (September 2023) 99.5% of
the proxy votes received were in favour, 0.3% were
against and 0.2% were withheld.
Governance report
Annual Report and Financial Statements 2024
70
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
2024
Fees
£
2024
Taxable
benefits *
£
2024
Total
£
2023
Fees
£
2023
Taxable
benefits *
£
2023
Total
£
CM Boyle 34,000 875 34,875 32,500 2,027 34,527
Dr D Chaya (appointed 30 November 2022) 34,000 523 34,523 13,667 – 13,667
RS Grewal (appointed 1 March 2024) 5,667 – 5,667 – – –
SL Parrinder-Johnson
(appointed 1 March 2024)
5,667 – 5,667 – – –
BJ Richards (SID from 1 December 2023) 35,192 282 35,474 32,500 1,154 33,654
Professor Sir Nigel Shadbolt 34,000 1,104 35,104 32,500 158 32,658
KS Sternberg (Chairman) 50,000 517 50,517 47,500 567 48,067
JJ Tigue (Audit Committee Chair, and SID
to 1 December 2023)
41,808 282 42,090 41,500 158 41,658
240,334 3,583 243,917 200,167 4,064 204,231
*
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.
Annual percentage change in remuneration
This represents the annual percentage change in the fees paid to the Directors.
Name
% from
2023 to
2024
% from
2022 to
2023
% from
2021 to
2022
% from
2020 to
2021
CM Boyle (appointed 1 May 2020) 4.6 4.8 3.3 n/a
Dr D Chaya (appointed 30 November 2022) 148.8 * n/a n/a n/a
RS Grewal (appointed 1 March 2024) n/a n/a n/a n/a
SL Parrinder-Johnson (appointed 1 March 2024) n/a n/a n/a n/a
BJ Richards (SID from 1 December 2023) 8.3 * 4.8 3.3 3.4
Professor Sir Nigel Shadbolt 4.6 4.8 3.3 3.4
KS Sternberg (Chairman from 1 September 2020) 5.3 3.3 17.0 35.6 *
JJ Tigue (Audit Committee Chair, and SID to 1 December 2023) 0.7 * 3.8 14.3 4.5
Total Directors’ fees paid by the Company in the year 20.1 11.8 (13.1) 6.5
*
These percentage movements reflect the Directors’ retirement, appointment, or role change in the period or the prior period as applicable. In such
circumstances the movement in actual fees paid in the year will differ from the movement in annualised fees payable. Details are only shown for
Directors serving on the Board in the current or prior financial year. The movement in total Directors’ fees paid by the Company in the year may
further be affected by the retirement of other Directors, whose details are no longer shown in the table above.
71
The Monks Investment Trust PLC
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 and
shares bought back.
Name
2024
£’000
2023
£’000
Change
%
Directors’ total remuneration 244 204 19.6
Dividends paid to shareholders 4,497 7,208 (37.6)
Shares bought back 172,887 135,221 27.9
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).
Performance graph
(figures rebased to 100 at 30 April 2014)
Past performance is not a guide to future performance.
Approval
The Directors’ Remuneration Report on pages 68
to 71 was approved by the Board of Directors and
signed on its behalf on 1 July 2024.
KS Sternberg
Chairman
Cumulative to 30 April
20242014 2016 2019 2021 20232015 20182017 2020 2022
●
Share price
Source:
LSEG/Baillie Gifford and relevant underlying index providers.
See disclaimer on page 114.
All figures are to
tal returns (see Glossary of terms and Alternative
Pe
rformance Measures on pages 118 to 121).
● FTSE All-Share
Index
● Comparative Index
(in sterling terms)
*
0
500
100
400
300
200
Governance report
Annual Report and Financial Statements 2024
72
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.
The Directors are responsible for preparing
the Annual Report and 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.
Statement of Directors’
responsibilities
in respect of the Annual Report and the Financial Statements
73
The Monks Investment Trust PLC
Each of the Directors, who were in office at the date
of approval of the Financial Statements and 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
1 July 2024
Financial
report
The Financial Statements for
the year to 30 April 2024 set
out on pages 82 to 104 have been
prepared in accordance with
FRS 102 ‘The Financial Reporting
Standard applicable in the UK
and Republic of Ireland’.
75
The Monks Investment Trust PLC
Independent
auditor’s report
to the Members of The Monks Investment Trust PLC
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:
• Confirming our understanding of the Company’s
going concern assessment process by engaging
with the Directors and the Company Secretary
to determine if all key factors were considered
in their assessment. We considered whether
the factors taken account of in the Directors’
assessment addressed those matters which we
considered important.
• Inspecting the Directors’ assessment of going
concern, including the revenue forecast, for the
period to 31 July 2025 which is at least 12 months
from the date the financial statements were
authorised for issue. The Company has concluded
that it is able to continue to meet its ongoing costs
as they fall due.
• Reviewing the factors and assumptions as applied
to the Company’s forecast and the liquidity
assessment of the investments. We considered
the appropriateness of the methods used to
calculate the revenue forecast and the liquidity
assessment and determined, through testing
of the methodology and calculations, that the
methods, inputs and assumptions utilised were
appropriate to be able to make an assessment for
the Company.
Opinion
We have audited the Financial Statements of The
Monks Investment Trust PLC (the ‘Company’) for
the year ended 30 April 2024 which comprise the
Income Statement, Balance Sheet, Statement
of Changes in Equity, Cash Flow Statement, and
the related notes 1 to 20, including the principal
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 2024 and of its profit 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.
Financial report
Annual Report and Financial Statements 2024
76
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, the potential impact
of climate change 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 38 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.
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 the conclusion therein 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.
Unquoted investments are valued with reference
to listed comparable companies or recent market
transactions and therefore are reflective of market
participants’ views. We also challenged the Directors’
considerations of climate change in their assessment
of viability and associated disclosures.
• Assessing the risk of breaching the debt
covenants as a result of a reduction in the value
of the Company’s portfolio. We calculated and
reviewed the Company’s compliance with debt
covenants throughout the year, validated the
inputs used to the underlying information and
we performed reverse stress testing in order to
identify what factors would lead to the Company
breaching the financial covenants.
• Considering the mitigating factors 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.
• Reviewing the Company’s going concern
disclosures included in the annual report to assess
whether the disclosures were appropriate 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
2025, which is at least 12 months from the approval
of these Financial Statements on 1 July 2024.
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.
Overview of our audit approach
Key audit matters • Risk of incorrect valuation or
ownership of the investment portfolio
• 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 £26.61m which
represents 1% of shareholders’ funds
77
The Monks Investment Trust PLC
Key audit matters
Key audit matters are those matters that, in our professional judgement, 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.
Risk Our response to the risk
Key observations
communicated to
the Audit Committee
Incorrect valuation or ownership of
the investment portfolio (as described
on page 66 in the Report of the Audit
Committee and as per the accounting
policy set out on page 88).
The valuation of the investment
portfolio at 30 April 2024 was
£2,847.07m (2023: £2,574.41m)
consisting of quoted investments
with an aggregate value of
£2,787.96m (2023: £2,519.99m)
and unquoted investments (including
CVR and suspended investments)
with an aggregate value of £59.11m
(2023: £54.42m).
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
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 81.
We performed 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 in which we
evaluated the design of controls.
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 reviewed the prices for all quoted investments in the portfolio
to identify prices that have not changed near the year end of the
Company. Our testing of quoted investments did not identify any
prices for which there was no active market.
For the unquoted investments held as at 30 April 2024 the audit
team with the assistance of 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.
• We have assessed the competence, capability and objectivity
of the Baillie Gifford Fair Value Pricing Group.
• Discussing the unquoted valuations with the Manager’s Private
Companies Valuation team 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 Valuation (‘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 management’s valuation is reasonable.
• Where our testing identified instances where valuations were
outside the expected range, we held further discussions with
Baillie Gifford and the Audit Committee. In those discussions,
we discussed market trends and the valuation process and
requested further support for the valuation assumptions where
appropriate.
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 30 April 2024
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
Annual Report and Financial Statements 2024
78
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 65 to 67
and the accounting policy set out
on page 88).
The total revenue for the year to
30 April 2024 was £29.89m (2023:
£30.21m). Included in total revenue
was revenue received from special
dividends of £1.07m, all of which
were classified as revenue in nature
(2023: £0.49m revenue).
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 judgement in determining
whether income receivable in the
form of special dividends should be
classified as ‘revenue’ or ‘capital’ in
the Income Statement and this has
been classified as an area of fraud
risk as highlighted below on page 81.
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 2024. 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.
For all investments held during the year, we compared the type of
dividends paid with reference to an external data source to identify
those which were ‘special’. We confirmed 4 special dividends,
amounting to £1.07m, were received during the year of which all
were classified as revenue. We tested a sample of two special
dividends, by assessing the appropriateness of the classification
between revenue and capital by reviewing the underlying rationale
of the distribution.
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
£26.61 million (2023: £24.43 million), which is 1%
(2023: 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% (2023: 75%) of our planning
materiality, namely £19.96m (2023: £18.32m). We
have set performance materiality at this percentage
due to our experience of working in prior years 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 £1.33m (2023:
£1.22m), being our reporting threshold.
79
The Monks Investment Trust PLC
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.
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 £1.33mm (2023: £1.22m) 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.
Financial report
Annual Report and Financial Statements 2024
80
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 63;
• 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 42;
• Director’s statement on whether it has a
reasonable expectation that the Company will
be able to continue in operation and meets its
liabilities set out on page 42;
• Directors’ statement on fair, balanced and
understandable set out on page 73;
• Board’s confirmation that it has carried out a
robust assessment of the emerging and principal
risks set out on page 37;
• The section of the annual report that describes the
review of effectiveness of risk management and
internal control systems set out on pages 62 and
63; and
• The section describing the work of the Audit
Committee set out on pages 65 to 67.
Responsibilities of Directors
As explained more fully in the Directors’
responsibilities statement set out on pages
72 and 73, 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.
81
The Monks Investment Trust PLC
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 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
www.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 7 years, covering the years ending
30 April 2018 to 30 April 2024.
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.
Ahmer Huda (Senior statutory auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor
London
1 July 2024
Financial report
Annual Report and Financial Statements 2024
82
For the year ended 30 April
Notes
2024
Revenue
£’000
2024
Capital
£’000
2024
Total
£’000
2023
Revenue
£’000
2023
Capital
£’000
2023
Total
£’000
Gains/(losses) on investments 9 – 389,428 389,428 – (78,421) (78,421)
Currency gains 14 – 1,419 1,419 – 293 293
Income 2 29,888 – 29,888 30,211 – 30,211
Investment management fee 3 (9,431) – (9,431) (8,878) – (8,878)
Other administrative expenses 4 (1,850) – (1,850) (1,833) – (1,833)
Net return before finance costs
and taxation
18,607 390,847 409,454 19,500 (78,128) (58,628)
Finance costs of borrowings 5 (8,264) – (8,264) (7,225) – (7,225)
Net return on ordinary activities
before taxation
10,343 390,847 401,190 12,275 (78,128) (65,853)
Tax on ordinary activities 6 (2,102) (736) (2,838) (1,561) (430) (1,991)
Net return on ordinary activities
after taxation
8,241 390,111 398,352 10,714 (78,558) (67,844)
Net return per ordinary share 7 3.68p 174.07p 177.75p 4.70p (34.47p) (29.77p)
Note:
Dividends per share paid and
payable in respect of the year 8 2.10p 3.15p
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 86 to 104 are an integral part of the Financial Statements.
Income
statement
The Monks Investment Trust PLC
83
Balance sheet
* The accompanying notes on pages 86 to 104 are an integral part of the Financial Statements.
As at 30 April
Notes
2024
£’000
2024
£’000
2023
£’000
2023
£’000
Fixed assets
Investments held at fair value through profit or loss 9 2,847,068 2,574,408
Current assets
Debtors 10 12,506 20,441
Cash and cash equivalents 19 38,622 42,191
51,128 62,632
Creditors
Amounts falling due within one year
11 (61,987) (93,142)
Net current liabilities
(10,859) (30,510)
Total assets less current liabilities 2,836,209 2,543,898
Creditors
Amounts falling due after more than one year:
Loan notes 12 (173,176) (99,858)
Provision for tax liability 12 (1,896) (1,160)
(175,072) (101,018)
Net assets 2,661,137 2,442,880
Capital and reserves
Share capital 13 12,659 12,659
Share premium account 14 433,714 433,714
Capital redemption reserve 14 8,700 8,700
Capital reserve 14 2,132,609 1,915,385
Revenue reserve 14 73,455 72,422
Shareholders’ funds 15 2,661,137 2,442,880
Shareholders’ funds per ordinary share
(borrowings at book value)
15 1,242.8p 1,058.5p
The Financial Statements of The Monks Investment Trust PLC (Company registration number 236964) on
pages 82 to 104 were approved and authorised for issue by the Board and were signed on 1 July 2024.
KS Sternberg
Chairman
Financial report
Annual Report and Financial Statements 2024
84
The accompanying notes on pages 86 to 104 are an integral part of the Financial Statements.
For the year ended 30 April 2024
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
Shareholders’ funds at 1 May 2023 12,659 433,714 8,700 1,915,385 72,422 2,442,880
Net return on ordinary activities after
taxation
– – – 390,111 8,241 398,352
Ordinary shares bought back 13 – – – (172,887) – (172,887)
Dividends paid during the year 8 – – – – (7,208) (7,208)
Shareholders’ funds at 30 April 2024 12,659 433,714 8,700 2,132,609 73,455 2,661,137
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
Shareholders’ funds at 1 May 2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164
Net return on ordinary activities after
taxation
– – – (78,558) 10,714 (67,844)
Ordinary shares bought back 13 – – – (135,221) – (135,221)
Ordinary shares issued 13, 14 836 171,531 – (319) – 172,048
Dividends paid during the year 8 – – – – (5,267) (5,267)
Shareholders’ funds at 30 April 2023 12,659 433,714 8,700 1,915,385 72,422 2,442,880
Statement of
changes in equity
The Monks Investment Trust PLC
85
The accompanying notes on pages 86 to 104 are an integral part of the Financial Statements.
For the year ended 30 April
Notes
2024
£’000
2024
£’000
2023
£’000
2023
£’000
Cash flows from operating activities
Net return on ordinary activities before taxation 401,190 (65,853)
Adjustments to reconcile company profit before tax to net cash flow from operating activities
Net (gains)/losses on investments (389,428) 78,421
Currency gains (1,419) (293)
Finance costs of borrowings 8,264 7,225
Other capital movements
Decrease/(increase) in accrued income 1,586 (70)
Increase in debtors (450) (513)
Increase/(decrease) in creditors 476 (357)
Taxation
Overseas tax incurred (2,074) (1,575)
Cash from operations* 18,145 16,985
Interest paid (7,468) (7,402)
Net cash inflow from operating activities 10,677 9,583
Cash flows from investing activities
Acquisitions of investments (467,866) (255,559)
Disposals of investments 586,578 361,027
Net cash inflow from investing activities 118,712 105,468
Cash flows from financing activities
Equity dividends paid 8 (7,208) (5,267)
Ordinary shares bought back and stamp duty thereon 14 (175,482) (135,014)
Ordinary shares issued 14 – 71,249
Loan notes issued 74,388 –
Debenture repaid – (40,000)
Borrowings repaid (25,000) –
Net cash outflow from financing activities (133,302) (109,032)
(Decrease)/increase in cash and cash equivalents (3,913) 6,019
Exchange movements 344 293
Cash and cash equivalents at 1 May 42,191 35,879
Cash and cash equivalents at 30 April 38,622 42,191
*
Cash from operations includes dividends received of £29,805,000 (2023 – £29,285,000) and interest received of £1,669,000 (2023 – £856,000).
Cash flow
statement
Financial report
Annual Report and Financial Statements 2024
86
Notes to the
Financial Statements
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.
01 Principal accounting policies
The Financial Statements for the year to 30 April 2024 have
been prepared in accordance with FRS 102 ‘The Financial
Reporting Standard applicable in the UK and Republic of
Ireland’ on the basis of the accounting policies set out below
which are unchanged from the prior year and have been
applied consistently. The updates to FRS 102, applicable
for financial years starting on or after 1 January 2025,
have been reviewed, but none of the updates is currently
expected to impact the policies below or the financial
statements prepared in accordance with them.
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
arising from macroeconomic and geopolitical concerns,
including hostilities in Ukraine and Gaza, US-China and
China-Taiwan tensions and global inflationary pressures,
but does not believe the Company’s going concern status
is affected.
The Company’s assets, the majority of which are
investments in listed 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 four tranches of private placement
debt across a range of maturities. As at 30 April 2024,
the £150 million NAB facility had £100 million available
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, are not experiencing significant operational
difficulties affecting their respective services to the
Company.
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 set out in the Viability Statement on page
42, which assesses the prospects of the Company over
a period of five years, that the Company will continue
in operational existence for the period to 31 July 2025,
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 July 2022.
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 38. 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.
The Monks Investment Trust PLC
87
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.
c. Significant accounting judgements and estimates
The preparation of the Financial Statements requires
the use of judgements and estimates. These judgements
and estimates 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.
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 2022
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.
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).
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 101 to 103 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.
Financial report
Annual Report and Financial Statements 2024
88
d. Investments
Purchases and sales
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 transaction price 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.
Listed investments
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 and unlisted investments
in listed companies is determined on a case by case basis,
to reflect the unique circumstances of the instrument in
question.
Private company investments
Private company investments are valued at fair value by
the Directors following a detailed review and appropriate
challenge of the valuations proposed by the Managers.
The Managers’ private company investment policy applies
techniques consistent with the International Private Equity
and Venture Capital Valuation Guidelines 2022 (‘IPEV’).
The techniques applied are predominantly market-based
approaches. The market-based approaches available
under IPEV are set out below and are followed by an
explanation of how they are applied to the Company’s
private company portfolio:
• 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).
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.
The Monks Investment Trust PLC
89
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 9 on page
93; 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 (the transaction price), 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,
the movement in the provision for Indian Capital Gains
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. Dividends payable
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
Annual Report and Financial Statements 2024
90
02 Income
2024
£’000
2023
£’000
Income from investments
UK dividends 3,309 4,688
Overseas dividends 24,910 24,667
28,219 29,355
Other income
Deposit interest 1,669 856
Total income 29,888 30,211
Total income comprises:
Dividends from financial assets classified as at fair value through profit or loss 28,219 29,355
Interest from financial assets not at fair value through profit or loss 1,669 856
29,888 30,211
Special dividend entitlements arising in the year amounted to £1,069,000 (2023 – £492,000).
03 Investment management fee
2024
£’000
2023
£’000
Investment management fee 9,431 8,878
Details of the Investment Management Agreement are disclosed on pages 52 and 53. The annual management fee payable to
Baillie Gifford & Co Limited is 0.45% on the first £750 million of total assets, 0.33% on the next £1 billion of total assets and
0.30% on the remaining total assets. For fee purposes, total assets is defined as the total value of all assets held less all liabilities
(other than any liability in the form of debt intended for investment purposes) and excludes the value of the Company’s holding
in The Schiehallion Fund, a closed-ended investment company managed by Baillie Gifford & Co. The Company does not currently
hold any other collective investment vehicles managed by Baillie Gifford & Co. Where the Company holds investments in
open-ended collective investment vehicles managed by Baillie Gifford, such as OEICs, Monks’ share of any fees charged within
that vehicle will be rebated to the Company. All debt drawn down during the periods under review is intended for investment
purposes. For the quarters to 31 January 2023 and 30 April 2023, the assets subject to management fee excluded the £173
million rolled into the Company from The Independent Investment Trust PLC in accordance with the terms of the transaction.
04 Other administrative expenses
2024
£’000
2023
£’000
Custody fees 313 334
Depositary fees 247 340
Registrar fees 47 33
General administrative expenses 477 408
Marketing expenses* 450 447
Directors’ fees (see Directors’ Remuneration Report on pages 68 to 71) 240 200
Auditor’s remuneration – statutory audit of annual Financial Statements
†
76 71
1,850 1,833
*
The Company is part of a marketing programme which includes all the investment trusts managed by the Managers. The marketing strategy has
an ongoing objective to stimulate demand for the Company’s shares. The cost of this marketing strategy is borne, in partnership, by the Company
and the Managers. The Managers match the Company’s marketing contribution and provides the resource to manage and run the programme.
†
Irrecoverable VAT on audit fees is included within general administrative expenses.
The Monks Investment Trust PLC
91
05 Finance costs of borrowings
2024
£’000
2023
£’000
Bank loans 5,080 3,238
Debenture stocks – 2,158
Loan notes 3,184 1,829
8,264 7,225
06 Tax
2024
Revenue
£’000
2024
Capital
£’000
2024
Total
£’000
2023
Revenue
£’000
2023
Capital
£’000
2023
Total
£’000
Overseas taxation 2,102 – 2,102 1,561 – 1,561
Indian capital gains tax paid
and provided for
– 736 736 – 430 430
2,102 736 2,838 1,561 430 1,991
2024
£’000
2023
£’000
Factors affecting the tax charge for the year
The tax charge for the year is higher (2023 – higher) than the standard rate of
corporation tax in the UK of 25% (2023 – 19.5%). The differences are explained below:
Net return before taxation 401,190 (65,853)
Net return before taxation multiplied by the average standard rate of corporation
tax in the UK of 25% (2023 – 19.5%)
100,298 (12,841)
Capital returns not taxable (97,712) 15,235
Income not taxable (6,950) (5,636)
Taxable expenses in the year not utilised 4,364 3,242
Overseas tax 2,102 1,561
Revenue tax charge for the year 2,102 1,561
Increase/(decrease) in provision for tax liability in respect of Indian capital gains 736 468
Refund of Indian tax in respect of prior periods – (38)
Capital tax charge for the year 736 430
Total tax charge for the year 2,838 1,991
As an investment trust, the Company’s capital gains are not taxable in the United Kingdom.
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 2024 the Company had surplus management expenses and losses on non-trading loan relationships of £133,269,000
(2023 – £120,344,000). No deferred tax asset has been recognised in respect of these amounts 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
Annual Report and Financial Statements 2024
92
07 Net return per ordinary share
2024
Revenue
2024
Capital
2024
Total
2023
Revenue
2023
Capital
2023
Total
Net return after taxation 3.68p 174.07p 177.75p 4.70p (34.47p) (29.77p)
Revenue return per ordinary share is based on the net revenue return on ordinary activities after taxation of £8,241,000 (2023 –
£10,714,000) and on 224,114,021 (2023 – 227,887,889) ordinary shares, being the weighted average number of ordinary shares
in issue during the year.
Capital return per ordinary share is based on the net capital gain for the financial year of £390,111,000 (2023 – loss of
£78,558,000) and on 224,114,021 (2023 – 227,887,889) 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.
08 Ordinary dividends
2024 2023
2024
£’000
2023
£’000
Amounts recognised as distributions in the year:
Previous year’s final (paid 13 September 2023) 3.15p 2.35p 7,208 5,267
Set out below are the total dividends paid and proposed in respect of the financial year, which is the basis on which the
requirements of section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of
dividend for the year is £8,241,000 (2023 – £10,714,000).
2024 2023
2024
£’000
2023
£’000
Amounts paid and payable in respect of the financial year
Proposed final (payable 17 September 2024) 2.10p 3.15p 4,497 7,208
09 Fixed assets – investments
As at 30 April 2024
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed and suspended equities 2,714,161 73,796 – 2,787,957
Unlisted securities – – 59,111 59,111
Total financial asset investments 2,714,161 73,796 59,111 2,847,068
As at 30 April 2023
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed and suspended equities 2,466,713 53,277 – 2,519,990
Unlisted securities – – 54,418 54,418
Total financial asset investments 2,466,713 53,277 54,418 2,574,408
Investments in securities are financial assets held at fair value through profit or loss. In accordance with Financial Reporting
Standard 102, the tables above provide an analysis of these investments based on the fair value hierarchy described below,
which reflects the reliability and significance of the information used to measure their fair value.
Level 2 investments comprise the Company’s holding in The Schiehallion Fund. The suspended investment in Sberbank of Russia
has been valued at nil.
The Monks Investment Trust PLC
93
09 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 88. A sensitivity analysis
by valuation technique of the unlisted securities is on pages 101 to 103.
2024
Listed
securities
£’000
2024
Unlisted
securities
*
£’000
2024
Total
securities
£’000
2023
Total
securities
£’000
Cost of investments at start of year 1,855,278 58,551 1,913,829 1,938,642
Investment holding gains/(losses) at start of year 664,712 (4,133) 660,579 723,373
Value of investments at start of year 2,519,990 54,418 2,574,408 2,662,015
Movements in year:
Purchases at cost 463,039 – 463,039 262,821
Acquisitions in respect of members’ voluntary liquidation
of IIT
†
– – – 100,799
Sales proceeds received (579,807) – (579,807) (372,806)
Gains/(losses) on investments 384,735 4,693 389,428 (78,421)
Value of investments at end of year 2,787,957 59,111 2,847,068 2,574,408
Cost of investments at end of year 1,784,555 58,551 1,843,106 1,913,829
Investment holding gains at end of year 1,003,402 560 1,003,962 660,579
Value of investments at end of year 2,787,957 59,111 2,847,068 2,574,408
*
Includes holdings in ordinary shares, preference shares and contingent value rights.
†
Equity investments acquired through the Scheme of Reconstruction in respect of The Independent Investment Trust PLC (IIT).
The Company received proceeds of £579,807,000 (2023 – £372,806,000) from investments sold during the year. The book cost of
these investments when they were purchased was £533,762,000 (2023 – £388,433,000). These investments have been revalued
over time and, until they were sold, any unrealised gains/losses were included in the fair value of the investments. Transaction costs
of £272,000 (2023 – £104,000) and £281,000 (2023 – £187,000) were suffered on purchases and sales respectively.
Financial report
Annual Report and Financial Statements 2024
94
09 Investments (continued)
2024
£’000
2023
£’000
Net gains/(losses) on investments
Realised gains/(losses) on sales 46,045 (15,627)
Changes in investment holding gains 343,383 (62,794)
389,428 (78,421)
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:
2024
Shares
held
2024
Value
£’000
2024
% of
shares held
2023
Shares
held
2023
Value
£’000
2023
% of
shares held
Silk Invest Africa Food Fund 10,000 2,452 42.6 10,000 3,658 42.6
10 Debtors
2024
£’000
2023
£’000
Amounts falling due within one year:
Accrued income 924 2,538
Investment sales awaiting settlement 9,749 16,520
Share issuance proceeds awaiting settlement – block listing fee prepaid 60 60
Overseas taxation recoverable 1,633 1,199
Other debtors and prepaid expenses 140 124
12,506 20,441
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
2024
£’000
2023
£’000
National Australia Bank Limited loan 50,000 75,000
Investment purchases awaiting settlement
3,268 8,095
Share buybacks awaiting settlement
3,922 6,517
Other creditors and accruals 4,797 3,530
61,987 93,142
None of the above creditors are financial liabilities held at fair value through profit or loss. Included in other creditors is
£2,464,000 (2023 – £2,150,000) in respect of the investment management fee.
The Monks Investment Trust PLC
95
11 Creditors – amounts falling due within one year (continued)
Borrowing facilities
At 30 April 2024 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 2024 drawings were as follows:
— National Australia Bank Limited: £50 million at an interest rate of 1.4% over SONIA, maturing in October 2024
(2023 – £75 million at an interest rate of 1.4% over SONIA, maturing in September 2023).
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 2024 (2023 – none).
12 Creditors – amounts falling due after more than one year
Repayment
date
Nominal
rate
Effective
rate
2024
£’000
2023
£’000
£60 million 1.86% notes 2054 7/8/2054 1.86% 1.86% 59,907 59,904
£40 million 1.77% notes 2045 7/8/2045 1.77% 1.77% 39,956 39,954
¥2,500 million 2.17% notes 2037 12/12/2037 2.17% 2.17% 12,687 –
€18 million 4.55% notes 2035 12/12/2035 4.55% 4.55% 15,370 –
€35 million 4.29% notes 2033 12/12/2033 4.29% 4.29% 29,886 –
€18 million 4.30% notes 2030 12/12/2030 4.30% 4.30% 15,370 –
173,176 99,858
Provision for liability in respect of Indian capital gains tax 1,896 1,160
175,072 101,018
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 £137,000 (2023 – £142,000).
Provision for tax liability
The tax liability provision at 30 April 2024 of £1,896,000 (30 April 2023 – £1,160,000) 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
2024
Number
2024
£’000
2023
Number
2023
£’000
Allotted, called up and fully paid ordinary shares of 5p each 214,130,666 10,707 230,796,666 11,540
Treasury shares of 5p each 39,040,794 1,952 22,374,794 1,119
Total 253,171,460 12,659 253,171,460 12,659
The Company’s authority permits it to hold shares bought back ‘in treasury’. Such treasury shares may be subsequently either sold
for cash (at, or at a premium to, net asset value per ordinary share) or cancelled. In the year to 30 April 2024, 16,666,000 shares
with a nominal value of £833,000 were bought back at a total cost of £172,887,000 to be held in treasury (2023 – 13,566,244
ordinary shares with a nominal value of £678,000 were bought back at a total cost of £135,221,000 and held in treasury).
No shares were issued from treasury during the year and at 30 April 2024 39,040,794 (2023 – 22,374,794) shares were held
in treasury. At 30 April 2024 the Company had authority to buy back 21,178,652 ordinary shares and to allot or sell from treasury
22,988,666 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 2024 to 26 June 2024 the Company
bought back a further 3,515,000 shares with a nominal value of £176,000 at a total cost of £41,447,000 to be held in treasury.
At 26 June 2024 42,555,794 shares were held in treasury and the Company had authority remaining to buy back a further
17,663,652 ordinary shares.
Financial report
Annual Report and Financial Statements 2024
96
14 Capital and reserves
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
At 1 May 2023 12,659 433,714 8,700 1,915,385 72,422 2,442,880
Gains on investments – – – 389,428 – 389,428
Exchange differences on
borrowings
– – – 1,075 – 1,075
Other exchange differences – – – 344 – 344
Movement in provision for tax on
Indian notional capital gains
– – – (736) – (736)
Revenue return on ordinary
activities after taxation
– – – – 8,241 8,241
Ordinary shares bought back – – – (172,887) – (172,887)
Dividends paid in the year – – – – (7,208) (7,208)
At 30 April 2024 12,659 433,714 8,700 2,132,609 73,455 2,661,137
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
At 1 May 2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164
Losses on investments – – – (78,421) – (78,421)
Other exchange differences – – – 293 – 293
Movement in provision for tax on
Indian notional capital gains
– – – (430) – (430)
Revenue return on ordinary
activities after taxation
– – – – 10,714 10,714
Ordinary shares bought back – – – (135,221) – (135,221)
Ordinary shares issued 836 171,531 – (319) – 172,048
Dividends paid in the year – – – – (5,267) (5,267)
At 30 April 2023 12,659 433,714 8,700 1,915,385 72,422 2,442,880
The capital reserve balance at 30 April 2024 includes investment holding gains on investments of £1,003,962,000 (2023 – gains
of £660,579,000) as detailed in note 9 on page 93. The revenue reserve is distributable by way of dividend.
In the year to 30 April 2023, the Company issued 16,717,601 new ordinary shares to former shareholders of The Independent
Investment Trust PLC (‘IIT’) in accordance with the Scheme of Reconstruction as set out in the Circular and Prospectus dated
6 October 2022. The Company received £173,080,000. Scheme transaction costs of £713,000 were charged to the Share
Premium Account as a cost of issuance and £319,000 Stamp Duty Reserve Tax incurred on the transfer of equities was charged
to the Capital Reserve.
The Monks Investment Trust PLC
97
15 Shareholders’ funds per ordinary share
2024 2023
Shareholders’ funds £2,661,137,000 £2,442,880,000
Number of ordinary shares in issue at the year end 214,130,666 230,796,666
Shareholders’ funds per ordinary share 1,242.8p 1,058.5p
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 118 to 121.
16 Analysis of change in net debt
At 1 May
2023
£’000
Cash flows
£’000
Other
non-cash
changes
£’000
Exchange
movement
£’000
At 30 April
2024
£’000
Cash at bank and in hand 42,191 (3,913) – 344 38,622
Loans due within one year
(75,000) 25,000 – – (50,000)
Loan notes (99,858) (74,388) (5) 1,075 (173,176)
(132,667) (53,301) (5) 1,419 (184,554)
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 35,879 6,019 – 293 42,191
Loans due within one year
(75,000) – – – (75,000)
Debenture stocks
(39,973) 40,000 (27) – –
Loan notes (99,853) – (5) – (99,858)
(178,947) 46,019 (32) 293 (132,667)
17 Contingent liabilities, guarantees and financial commitments
At 30 April 2024 and 30 April 2023 the Company had no contingent liabilities, guarantees or financial commitments.
Financial report
Annual Report and Financial Statements 2024
98
18 Transactions with related parties and the Managers and Secretaries
The Directors’ fees and shareholdings are detailed in the Directors’ Remuneration Report on pages 68 to 71. 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 pages 52 and 53 and details of the fees
during the year and the balances outstanding at the year end are shown in notes 3 and 11 respectively. The Company is part of
a marketing programme which includes all the investment trusts managed by the Managers, details of which are shown in note 4.
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.
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 Managers monitor the Company’s exposure to foreign currencies and report to the Board on a regular basis. The Managers
assess 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.
The Monks Investment Trust PLC
99
19 Financial instruments (continued)
Currency risk (continued)
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 2024
Investments
£’000
Cash and
deposits
£’000
Loans and
loan notes
£’000
Other debtors
and creditors *
£’000
Net
exposure
£’000
US dollar 1,939,332 (7,681) – 7,932 1,939,583
Euro 227,713 – (60,626) 1,633 168,720
Japanese yen 120,099 – (12,687) 385 107,797
Other overseas currencies 419,897 3,131 – (928) 422,100
Total exposure to currency risk 2,707,041 (4,550) (73,313) 9,022 2,638,200
Sterling 140,027 43,172 (149,863) (10,399) 22,937
2,847,068 38,622 (223,176) (1,377) 2,661,137
*
Includes non-monetary assets of £93,000.
At 30 April 2023
Investments
£’000
Cash and
deposits
£’000
Loans and
loan notes
£’000
Other debtors
and creditors *
£’000
Net
exposure
£’000
US dollar 1,563,688 161 – 8,489 1,572,338
Euro 254,515 – – 2,348 256,863
Japanese yen 136,259 – – 546 136,805
Other overseas currencies 348,016 544 – 178 348,738
Total exposure to currency risk 2,302,478 705 – 11,561 2,314,744
Sterling 271,930 41,486 (174,858) (10,422) 128,136
2,574,408 42,191 (174,858) 1,139 2,442,880
*
Includes non-monetary assets of £124,000.
Currency risk sensitivity
At 30 April 2024, 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 was performed on the same basis for 2023.
2024
£’000
2023
£’000
US dollar 96,979 78,617
Euro 8,436 12,843
Japanese yen 5,390 6,840
Other overseas currencies 21,105 17,437
131,910 115,737
Financial report
Annual Report and Financial Statements 2024
100
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 2024 amounted to £38,622,000 (2023 – £42,191,000),
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 and loan notes 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
2024
£’000
2023
£’000
Floating rate – sterling 50,000 75,000
Fixed rate – sterling 99,863 99,858
Fixed rate – euro 60,626 –
Fixed rate – yen 12,687 –
223,176 174,858
Maturity profile
2024
Within
1 year
£’000
2024
Between 1
and 5 years
£’000
2024
More than
5 years
£’000
2023
Within
1 year
£’000
2023
Between 1
and 5 years
£’000
2023
More than
5 years
£’000
Repayment of loans
and loan notes
50,000 – 173,176 75,000 – 100,000
Interest on loans
and loan notes
6,499 18,967 57,070 3,950 7,296 41,964
56,499 18,967 230,246 78,950 7,296 141,964
Interest rate risk sensitivity
An increase of 100 basis points in bond yields applied to the Company’s financial liabilities as at 30 April 2024 would have
decreased net assets and total return on ordinary activities by £24,000 (2023 – £105,000) owing to its impact on floating rate
liabilities. A decrease of 100 basis points would have increased net assets and total return on ordinary activities by £20,000
(2023 – £91,000) owing to its impact on floating rate liabilities.
The Monks Investment Trust PLC
101
19 Financial instruments (continued)
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 Managers. 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.
Other price risk sensitivity
A full list of the Company’s investments is shown on pages 22 to 25. 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.
104.8% of the Company’s net assets are invested in quoted equities (2023 – 103.2%). A 10% increase in quoted equity
valuations at 30 April 2024 would have increased total assets and total return on ordinary activities by £278,796,000
(2023 – £251,999,000). A decrease of 10% would have had an equal but opposite effect.
2.2% (2023 – 2.2%) of the Company’s net assets are invested in private company investments. The fair valuation of the private
company investments is influenced by the estimates and judgements made in the fair valuation process (see 1(c) on page 87).
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. The
table also provides the range of values for the key unobservable inputs. A blend of valuation techniques is used for some holdings
(Ant International). As a blend is used in the valuation reflected in the annual statements, the asset is presented in the sensitivity
analysis for multiple approaches. It should also be noted that £22,800,000 (2023 – £18,984,000) of the private company value
is attributed to companies operating in China, where unfavourable government intervention could adversely affect the realisable
value by amounts greater than those reflected in the sensitivity analysis shown below.
As at
30 April 2024 Significant unobservable inputs*
Valuation
approach
Fair value of
investments
£’000
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Weighted
average
range
Sensitivity
%
Sensitivity to changes in
significant unobservable
inputs
Market
approach using
comparable
traded multiples
22,800 EV/LTM revenue
multiple
#
a,b,c,d 1.76x -
2.57x
1.92x 10% If EV/LTM multiples
changed by +/-10%,
the fair value would
change by £1,634,694 and
-£1,633,216.
Illiquidity discount g -10% -10% 10% If the illiquidity discount is
changed by -/+10%, the
fair value would change by
£230,018 and -£228,541.
Benchmark
performance
4,551
Selection of
comparable
companies and
relevant indices
¶
a,b,c,f (15%)
- 0.6%
(7.18%) 10% If input comparable
company performance
changed by +/-10%, the
fair value would change by
£217,366 and -£215,888.
Sum of the
parts
^
2,452
EV/LTM revenue
multiple
#
a,b,c,d n/a n/a 10% If the performance of the
underlying investment
and selected benchmark
performance changed by
+/-10%, the fair value
would change by +/-
£245,180.
Recent
transaction price
33,527 n/a a,b n/a n/a n/a n/a
* Significant unobservable inputs are described on pages 102 and 103.
†
See explanation for other unobservable inputs on pages 102 and 103 (sections ‘a’ to ‘g’ as relevant).
#
Enterprise value (EV) divided by the last twelve months revenue (LTM).
¶
See explanation for the selection of comparable companies on page 103 section ‘c’.
^
A ‘sum of the parts’ valuation approach is used for holding company investments with several underlying businesses. Each individual business
is valued using the most appropriate basis depending on the specific circumstances and the overall valuation is the summation of these
separate valuations.
Financial report
Annual Report and Financial Statements 2024
102
19 Financial instruments (continued)
Other price risk sensitivity (continued)
As at
30 April 2023 Significant unobservable inputs*
Valuation
approach
Fair value of
investments
£’000
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Weighted
average
range
Sensitivity
%
Sensitivity to changes in
significant unobservable
inputs
Market
approach using
comparable
traded multiples
31,197 EV/LTM revenue
multiple
#
a,b,c,d 1.6x
–5.7x
3.7X 10% If EV/LTM multiples
changed by +/-10%, the
fair value would change
by £2,765,530 and
-£2,606,943.
Valuation
premium and
discounts
g -10% -10% 10% If the transaction implied
premium/discount is
changed by +/-10%,
the fair value would
change by £344,082
and -£344,082.
Benchmark
performance
1,891
Selection of
comparable
companies and
relevant indices
¶
a,b,c,f 5.9% 5.9% 10% If input comparable
company performance
changed by +/-10%,
the fair value would
change by £212,099 and
-£212,099.
Sum of the
parts
^
3,658
EV/LTM revenue
multiple
#
a,b,c,d 7.5x
–21.8x
11.7x 10% If EV/LTM multiples
and input comparable
company performance
changed by +/-10%, the
fair value would change
by +/-£365,780.
Recent
transaction price
16,391 n/a a,b n/a n/a n/a n/a
*
Significant unobservable inputs are described on pages 102 and 103.
†
See explanation for other unobservable inputs on pages 102 and 103 (sections ‘a’ to ‘g’ as relevant).
#
Enterprise value (EV) divided by the last twelve months revenue (LTM).
¶
See explanation for the selection of comparable companies on page 103 section ‘c’.
^
A ‘sum of the parts’ valuation approach is used for holding company investments with several underlying businesses. Each individual business
is valued using the most appropriate basis depending on the specific circumstances and the overall valuation is the summation of these
separate valuations.
* Significant unobservable inputs
The variable inputs applicable to each broad category of valuation basis will vary dependent on the particular circumstances of
each private company valuation. An explanation of each of the key variable inputs is provided below. The assumptions made in
the production of the inputs are described in note 1(c) on page 87.
a. 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.
b. 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.
The Monks Investment Trust PLC
103
19 Financial instruments (continued)
Significant unobservable inputs (continued)
c. 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
or share price movements derived will vary depending on the companies selected and the industries they operate in.
d. 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 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.
e. Application of illiquidity discount
The application of an illiquidity 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.
f. 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.
g. Valuation premium and discount
The application of valuation premiums and discounts are applied through the calibration of a valuation to the most recent
transaction, determining how each investment is pricing against its selection of comparable companies. Where a calibrated
approach is not appropriate a liquidity discount is applied, typically at 10%, reflecting that most of the investments held are
substantial companies with some secondary market activity.
h. Execution risk
An execution risk discount is applied to all investments where an arm’s-length transaction is due to take place, however, hasn’t
closed prior to the reporting period end. The discount typically applied is 10%, acknowledging that the finer details of the round
may well still be negotiated which could impact the expected issue price. In valuing in line with an expected transaction the
arm’s-length nature of the deal has been assessed and legal documentation received.
Liquidity risk
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk is
significantly mitigated 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 100.
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 quality
of our banking provider is publicly available.
Financial report
Annual Report and Financial Statements 2024
104
19 Financial instruments (continued)
Credit risk exposure
The amount that best represents the Company’s maximum exposure to direct credit risk at 30 April was:
2024
£’000
2023
£’000
Cash and cash equivalents 38,622 42,191
Debtors 12,506 20,441
51,128 62,632
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 values of the loan notes are calculated using a comparable debt approach, by
reference to a basket of corporate debt with similar rates and maturities.
2024
Par
value
£’000
2024
Book
value
£’000
2024
Fair
value
£’000
2023
Par
value
£’000
2023
Book
value
£’000
2023
Fair
value
£’000
Bank loans due within one year 50,000 50,000 50,000 75,000 75,000 75,000
Notes 1.86% 2054 60,000 59,907 28,271 60,000 59,904 28,765
Notes 1.77% 2045 40,000 39,956 21,607 40,000 39,954 21,639
Notes 2.17% 2037 12,687 12,687 12,747 – – –
Notes 4.55% 2035 15,370 15,370 15,430 – – –
Notes 4.29% 2033 29,886 29,886 29,862 – – –
Notes 4.30% 2030 15,370 15,370 15,293 – – –
223,313 223,176 173,210 175,000 174,858 125,404
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 pages 35 and 36. 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 37 to 41.
The Company has the ability to issue and buy back its shares, and sell shares from treasury (see pages 54 and 55) and any
changes to the share capital during the year are set out in note 13.
The Company does not have any externally imposed capital requirements other than the covenants on its loans and loan notes
which are detailed in notes 11 and 12.
Shareholder
information
Shareholder information
Annual Report and Financial Statements 2024
106
Notice of Annual
General Meeting
Albemarle St
Piccadilly
Royal Academy
of Arts
Green Park
Station
Piccadilly
Jermyn Street
Regent Street
St James’s
Square
Entrance
The Royal Institution
The Annual General Meeting of the Company will
be held at the The Royal Institution, 21 Albemarle
Street, London, W1S 4BS on Tuesday 10 September
2024, at 11.30am. You will find directions to the
venue by scanning the QR code above.
To accurately reflect the views of shareholders of the
Company, the Board intends to hold the AGM voting
on a poll, rather than by a show of hands, consistent
with the procedure adopted last year.
The Board encourages all shareholders to
complete and return the form of proxy enclosed
with the Annual Report to ensure that your votes
are represented at the meeting (whether or not
you intend to attend in person). Shareholders are
recommended to monitor the Company’s website
where any updates will be posted, in the event of
any change to the scheduled arrangements.
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.
The Monks Investment Trust PLC
107
Notice is hereby given that the ninety-fifth Annual
General Meeting of The Monks Investment Trust PLC
will be held at the The Royal Institution, 21 Albemarle
Street, London, W1S 4BS on Tuesday 10 September
2024, at 11.30am for the following purposes:
To consider and, if thought fit, pass the following
resolutions as ordinary resolutions:
01. To receive and adopt the Financial Statements
of the Company for the year ended 30 April
2024 with the Reports of the Directors and of
the Independent Auditor thereon.
02. To approve the Directors’ Annual Report on
Remuneration for the year ended 30 April 2024.
03. To declare a final dividend of 2.10p per ordinary
share.
04. To re-elect Mr KS Sternberg as a Director.
05. To re-elect Ms BJ Richards as a Director.
06. To re-elect Professor Sir Nigel Shadbolt as a
Director.
07. To re-elect Ms CM Boyle as a Director.
08. To re-elect Dr D Chaya as a Director.
09. To elect Mr RS Grewal as a Director.
10. To elect Ms SL Parrinder-Johnson as a Director.
11. 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.
12. To authorise the Directors to determine the
remuneration of the Independent Auditor.
13. 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 £1,053,078.33 (representing
10% of the Company’s total issued share capital
as at 26 June 2024), 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
14 and 15 as special resolutions:
14. That, subject to the passing of resolution 13
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 13 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 £1,053,078.33,
being approximately 10% of the nominal value
of the issued share capital of the Company as
at 26 June 2024.
Shareholder information
Annual Report and Financial Statements 2024
108
15. 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 31,571,288, 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 2025, 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.
By order of the Board
Baillie Gifford & Co Limited
Company Secretary
16 July 2024
The Monks Investment Trust PLC
109
Notes
01. 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.
02. 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.
03. 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.
04. 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 & International
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.
05. CREST members and, where applicable,
their CREST sponsors, or voting service
providers should note that Euroclear UK &
International 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.
06. 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.
07. 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.
08. 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.
Shareholder information
Annual Report and Financial Statements 2024
110
09. 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
29 July 2024.
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 29 July 2024.
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.
The Monks Investment Trust PLC
111
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 26 June 2024 (being the last practicable
date prior to the publication of this notice) the
Company’s issued share capital consisted of
210,615,666 ordinary shares, carrying one
vote each. Therefore, the total voting rights
in the Company as at 26 June 2024 were
210,615,666 votes. Voting on the resolutions
will be conducted by way of poll. This will
ensure an exact and definitive result.
19. Any person holding 3% or more of the total
voting rights of the Company who appoints
a person other than the Chair of the meeting
as his/her proxy will need to ensure that both
he/she and his/her 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.
Shareholder information
Annual Report and Financial Statements 2024
112
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.
Further shareholder
information
Sources of further information on
the Company
The share price is quoted daily in the Financial Times
and can also be found 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 2024
AGM is being held in early 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.
The Monks Investment Trust PLC
113
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 registrar’s
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).
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.
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.
Analysis of shareholders at 30 April
2024
Number of
shares held
2024
%
2023
Number of
shares held
2023
%
Institutions 31,548,588 14.7 32,437,234 14.1
Intermediaries 171,037,138 79.9 186,862,473 81.0
Individuals 9,810,247 4.6 11,118,565 4.8
Marketmakers 1,734,693 0.8 378,394 0.2
214,130,666 100.0 230,796,666 100.0
Shareholder information
Annual Report and Financial Statements 2024
114
Automatic exchange
of information
In order to fulfil its obligations under UK tax
legislation relating to the automatic exchange of
information, the Company is required to collect
and report certain information about certain
shareholders.
The legislation requires investment trust companies
to provide personal information to HMRC on certain
investors who purchase shares in investment trusts.
Accordingly, the Company will have to provide
information annually to the local tax authority on
the tax residencies of a number of non-UK based
certificated shareholders and corporate entities.
Shareholders, excluding those whose shares are
held in CREST, who come on to the share register
will be sent a certification form for the purposes of
collecting this information.
For further information, please see HMRC’s
Quick Guide: Automatic Exchange of Information –
information for account holders gov.uk/government/
publications/exchange-of-information-account-holders.
Alternative Investment Fund Managers
(‘AIFM’) Regulations
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 page 123).
The numerical remuneration disclosures in respect
of the AIFM’s reporting period are also available at
bailliegifford.com.
The Company’s maximum and actual leverage levels
(see Glossary of terms and Alternative Performance
Measures on pages 118 to 121) at 30 April 2024 are
as follows:
Leverage
Gross method
Commitment
method
Maximum limit 2.50:1 2.00:1
Actual 1.07:1 1.09:1
Third party data provider disclaimer
No third party data provider (‘Provider’) makes any
warranty, express or implied, as to the accuracy,
completeness or timeliness of the data contained
herewith nor as to the results to be obtained by
recipients of the data.
No Provider shall in any way be liable to any
recipient of the data for any inaccuracies, errors
or omissions in the index data included in this
document, regardless of cause, or for any damages
(whether direct or indirect) resulting therefrom.
No Provider has any obligation to update, modify
or amend the data or to otherwise notify a recipient
thereof in the event that any matter stated herein
changes or subsequently becomes inaccurate.
Without limiting the foregoing, no Provider shall have
any liability whatsoever to you, whether in contract
(including under an indemnity), in tort (including
negligence), under a warranty, under statute or
otherwise, in respect of any loss or damage suffered
by you as a result of or in connection with any
opinions, recommendations, forecasts, judgements,
or any other conclusions, or any course of action
determined, by you or any third party, whether or
not based on the content, information or materials
contained herein.
FTSE Index Data
London Stock Exchange Group plc and its group
undertakings (collectively, the ‘LSE Group’).
© LSE Group 2024. FTSE Russell is a trading name
of certain of the LSE Group companies. ‘FTSE®’
‘Russell®’, ‘FTSE Russell®’, is/are a trade mark(s) of
the relevant LSE Group companies and is/are used
by any other LSE Group company under license. All
rights in the FTSE Russell indexes or data vest in the
relevant LSE Group company which owns the index
or the data. Neither LSE Group nor its licensors
accept any liability for any errors or omissions in the
indexes or data and no party may rely on any indexes
or data contained in this communication.
No further distribution of data from the LSE Group
is permitted without the relevant LSE Group
company’s express written consent. The LSE Group
does not promote, sponsor or endorse the content
of this communication.
The Monks Investment Trust PLC
115
Sustainable Finance Disclosure
Regulation (‘SFDR’)
The EU Sustainable Finance Disclosure Regulation
(‘SFDR’) does not have a direct impact in the UK
due to Brexit, however, it applies to third-country
products marketed in the EU. As The Monks
Investment Trust PLC is marketed in the EU by the
AIFM, Baillie Gifford & Co Limited, via the National
Private Placement Regime (‘NPPR’) the following
disclosures have been provided to comply with the
high-level requirements of SFDR.
The AIFM has adopted Baillie Gifford & Co’s
stewardship principles and guidelines as its policy
on integration of sustainability risks in investment
decisions.
Baillie Gifford & Co believes that a company cannot
be financially sustainable in the long run if its
approach to business is fundamentally out of line
with changing societal expectations. It defines
‘sustainability’ as a deliberately broad concept which
encapsulates a company’s purpose, values, business
model, culture, and operating practices.
Baillie Gifford & Co’s approach to investment is
based on identifying and holding high quality growth
businesses that enjoy sustainable competitive
advantages in their marketplace. To do this it looks
beyond current financial performance, undertaking
proprietary research to build up an in-depth knowledge
of an individual company and a view on its long-term
prospects. This includes the consideration of
sustainability factors (environmental, social and/or
governance matters) which it believes will positively
or negatively influence the financial returns of an
investment.
The likely impact on the return of the portfolio
from a potential or actual material decline in the
value of investment due to the occurrence of
an environmental, social or governance event
or condition will vary and will depend on several
factors including but not limited to the type, extent,
complexity and duration of an event or condition,
prevailing market conditions and existence of any
mitigating factors.
Whilst consideration is given to sustainability
matters, there are no restrictions on the investment
universe of the Company, unless otherwise stated
within in its investment objective & policy. Baillie
Gifford & Co can invest in any companies it believes
could create beneficial long-term returns for
investors. However, this might result in investments
being made in companies that ultimately cause a
negative outcome for the environment or society.
More detail on the Manager’s approach to
sustainability can be found in the stewardship
principles and guidelines document, available publicly
on the Baillie Gifford website bailliegifford.com and by
scanning the QR code below.
The underlying investments do not take into account
the EU criteria for environmentally sustainable
economic activities established under the EU
Taxonomy Regulation.
Shareholder information
Annual Report and Financial Statements 2024
116
Communicating
with shareholders
Trust magazine Monks Investment Trust web page at
monksinvestmenttrust.co.uk
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 opposite) and give them your
suggestions. They will also be very happy to answer
questions that you may have about Monks.
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.
Client relations team contact details
You can contact the Baillie Gifford Client Relations
Team by telephone, email or post:
Telephone: 0800 917 2112
Your call may be recorded for training or monitoring
purposes.
Email: trustenquiries@bailliegifford.com
Website: bailliegifford.com
Address:
Baillie Gifford Client Relations Team
Calton Square
1 Greenside Row
Edinburgh EH1 3AN
Please note that Baillie Gifford is not permitted
to give financial advice. If you would like advice,
please ask an authorised intermediary.
The Monks Investment Trust PLC
117
Monks’ musings
first quarter 2024
A winning mix of AI-related tech
stocks with companies leading US
infrastructure renewal.
Investor Forum:
Onboard for growth
Optimism for the future of growth
investing from four of Baillie
Gifford’s investment trusts.
The US building
bonanza
America’s infrastructure upgrade
plan vastly exceeds its spending
on rebuilding post-war Europe.
Insights
Shareholder information
Annual Report and Financial Statements 2024
118
An Alternative Performance Measure is a financial measure of historical or future financial performance,
financial position, or cash flows, other than a financial measure defined or specified in the applicable
financial reporting framework.
Total assets
This is the Company’s definition of adjusted total assets, being the total value of all assets held less all
liabilities (other than liabilities in the form of borrowings).
Shareholders’ funds
Shareholders’ funds is the value of all assets held less all liabilities, with borrowings deducted at book cost.
Net liquid assets
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.
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.
2024
£’000
2024
per share
2023
£’000
2023
per share
Shareholders’ funds (borrowings at book value) 2,661,137 1,242.8p 2,442,880 1,058.5p
Add: book value of borrowings 223,176 104.2p 174,858 75.8p
Less: par value of borrowings (223,313) (104.3p) (175,000) (75.8p)
Net asset value (borrowings at par value) 2,661,000 1,242.7p 2,442,738 1,058.5p
The per share figures above are based on 214,130,666 (2023 – 230,796,666) ordinary shares of 5p, being the number of ordinary shares in issue at the
year end excluding treasury shares.
Glossary of terms and Alternative
Performance Measures (‘APM’)
The Monks Investment Trust PLC
119
Net Asset Value (borrowings at fair value) (APM)
Borrowings are valued at an estimate of market worth. The fair values of the loan notes are calculated using
a comparable debt approach, by reference to a basket of corporate debt. The fair value of the Company’s
short term bank borrowings is equivalent to its book value.
A reconciliation from shareholders’ funds (borrowings at book value) to net asset value after deducting
borrowings at fair value is provided below.
2024
£’000
2024
per share
2023
£’000
2023
per share
Shareholders’ funds (borrowings at book value) 2,661,137 1,242.8p 2,442,880 1,058.5p
Add: book value of borrowings 223,176 104.2p 174,858 75.8p
Less: fair value of borrowings (173,210) (80.9p) (125,404) (54.3p)
Net asset value (borrowings at fair value) 2,711,103 1,266.1p 2,492,334 1,080.0p
The per share figures above are based on 214,130,666 (2023 – 230,796,666) ordinary shares of 5p, being the number of ordinary shares in issue at the
period end excluding treasury shares.
Discount/premium (APM)
As stock markets and share prices vary, an investment trust’s share price is rarely the same as its NAV. When
the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount
is calculated by subtracting the NAV per share from the share price and is usually expressed as a percentage
of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium.
2024 2023
Closing NAV per share (borrowings at par) a 1,242.7p 1,058.5p
Closing NAV per share (borrowings at fair value) b 1,266.1p 1,080.0p
Closing share price c 1,158.0p 975.0p
Discount to NAV with borrowings at par (c - a) ÷ a (6.8%) (7.9%)
Discount to NAV with borrowings at fair value (c - b) ÷ b (8.5%) (9.7%)
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.
2024
NAV
(par)
2024
NAV
(fair)
2024
Share
price
2023
NAV
(par)
2023
NAV
(fair)
2023
Share
price
Closing NAV per share/share price a 1,242.7p 1,266.1p 1,158.0p 1,058.5p 1,080.0p 975.0p
Dividend adjustment factor* b 1.0028 1.0028 1.0031 1.0021 1.0021 1.0023
Adjusted closing NAV per share/share price c = a x b 1,246.2p 1,269.6p 1,161.6p 1,060.7p 1,082.3p 977.3p
Opening NAV per share/share price d 1,058.5p 1,080.0p 975.0p 1,089.0p 1,099.8p 1,051.0p
Total return (c ÷ d)-1 17.7% 17.6% 19.1% (2.6%) (1.6%) (7.0%)
* The dividend adjustment factor is calculated on the assumption that the dividend of 3.15p (2023 – 2.35p) 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.
Shareholder information
Annual Report and Financial Statements 2024
120
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.
2024 2023
Investment management fee £9,431,000 £8,878,000
Other administrative expenses £1,850,000 £1,833,000
Total expenses a £11,281,000 £10,711,000
Average net asset value (with borrowings deducted at fair value) b £2,589,210,000 £2,480,229,000
Ongoing charges a ÷ b 0.44% 0.43%
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 record on page 32.
Gross gearing, also referred to as potential gearing, is the Company’s borrowings expressed as a percentage
of shareholders’ funds (a ÷ c in the table below).
Net gearing, also referred to as invested or equity gearing, is borrowings at book value less cash and cash
equivalents (any certificates of deposit are not deducted) and brokers’ balances expressed as a percentage
of shareholders’ funds (b ÷ c in the table below).
*
Effective gearing, as defined by the Board and Managers of Monks, is the Company’s borrowings at par less
cash, brokers’ balances and investment grade bonds maturing within one year, expressed as a percentage of
shareholders’ funds
*
.
* As adjusted to take into account the gearing impact of any derivative holdings.
2024 2023
Borrowings (at book cost) a £223,176,000 £174,858,000
Less: cash and cash equivalents (£38,622,000) (£42,191,000)
Less: sales for subsequent settlement (£9,749,000) (£16,520,000)
Add: purchases for subsequent settlement £7,086,000 £14,546,000
Adjusted borrowings b £181,891,000 £130,693,000
Shareholders’ funds c £2,661,137,000 £2,442,880,000
Gross (potential) gearing (a ÷ c) 8.4% 7.2%
Net (equity) gearing (b ÷ c) 6.8% 5.3%
The Monks Investment Trust PLC
121
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 2024 are detailed on page 114.
Compound annual return (APM)
The compound annual return converts the return over a period of longer than one year to a constant annual
rate of return applied to the compounded value at the start of each year.
Treasury shares
The Company has the authority to make market purchases of its ordinary shares for retention as treasury
shares for future reissue, resale, transfer, or for cancellation. Treasury shares do not receive distributions
and the Company is not entitled to exercise the voting rights attaching to them.
Turnover (APM)
Turnover is a measure of portfolio change or trading activity. Monthly turnover is calculated as the minimum
of purchases and sales in a month, divided by the average market value of the fund. Monthly numbers are
added together to get the rolling 12 month turnover data.
Contingent value rights
‘CVR’ after an instrument name indicates a security, usually arising from a corporate action such as a
takeover or merger, which represents a right to receive potential future value, should the continuing company
achieve certain milestones. The Illumina CVR was received on Illumina’s takeover of the Company’s private
company investment in GRAIL and the Abiomed CVR arose on Johnson & Johnson’s takeover of Abiomed.
In both cases the milestones relate to the performance of the technologies acquired through those takeovers.
Any values attributed to these holdings reflect both the amount of the future value potentially receivable and
the probability of the milestones being met within the time frames in the CVR agreement.
Shareholder information
Annual Report and Financial Statements 2024
122
The Monks Investment Trust PLC
123
Company
information
Directors
Chairman: KS Sternberg
CM Boyle
Dr D Chaya
RS Grewal
SL Parrinder-Johnson
BJ Richards
Professor Sir Nigel Shadbolt
JJ Tigue
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
T: +44 (0)370 707 1170
Alternative Investment Fund
Managers and Secretaries
Baillie Gifford & Co Limited
Calton Square
1 Greenside Row
Edinburgh
EH1 3AN
T: +44 (0)131 275 2000
bailliegifford.com
Depositary
The Bank of New York Mellon
(International) Limited
160 Queen Victoria Street
London
EC4V 4LA
Company broker
Investec Bank plc
30 Gresham Street
London
EC2V 7QP
Registered office
Computershare Investor Services PLC
Moor House
120 London Wall
London
EC2Y 5ET
Independent auditor
Ernst & Young LLP
Atria One
144 Morrison Street
Edinburgh
EH3 8EX
Company details
monksinvestmenttrust.co.uk
Company Registration No. 00236964
ISIN: GB0030517261
Sedol: 3051726
Ticker: MNKS
Legal Entity Identifier:
213800MRI1JTUKG5AF64
Further information
Baillie Gifford
Client Relations Team
Calton Square
1 Greenside Row
Edinburgh
EH1 3AN
T: +44 (0)800 917 2112
trustenquiries@bailliegifford.com
monksinvestmenttrust.co.uk
Calton Square, 1 Greenside Row, Edinburgh EH1 3AN
Telephone +44 (0)131 275 2000