Annual Report and
Financial Statements
The Monks
Investment
Trust PLC
30 April 2025
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
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
product and can be recommended by Independent
Financial Advisers to ordinary retail investors in
accordance with the rules of the FCA in relation
This document is important and requires your
immediate attention.
Investor disclosure document
The UK Alternative Investment Fund Managers
available to investors prior to their investment
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,
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authorised under the Financial Services and Markets
Act 2000 immediately. If you reside outside the
United Kingdom, you should consult an appropriately
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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 05
Managers’ review 08
The Managers’ core investment beliefs 14
Environmental, social and governance engagement 15
Ten largest investments 16
Growth categories 21
Investment portfolio by growth category 22
List of investments 24
Baillie Gifford – valuing private companies 28
Portfolio positioning 29
One year summary 30
Five year summary 32
Ten year record 34
Business review 37
Governance report
Directors and managers 50
Directors’ report 54
Corporate governance report 59
Audit Committee report 67
Directors’ remuneration report 70
Statement of Directors’ responsibilities 74
Financial report
Independent auditor’s report 77
Income statement 84
Balance sheet 85
86
fl 87
Notes to the Financial Statements 88
Shareholder information
Notice of Annual General Meeting 108
Further shareholder information 114
Sustainable Finance Disclosure Regulation (‘SFDR’) 117
Communicating with shareholders 118
Insights 119
Glossary of terms and Alternative Performance Measures 120
Company information 125
Contents
Introduction
Annual Report and Financial Statements 2025
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 2025
Share price
*
(1.5%)
NAV (borrowings
at par value)
*
†
(0.4%)
NAV (borrowings
at fair value)
*
†
+0.1%
Comparative
index
*
#
+5.3%
* Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 116fi
120 to 123.
†
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
*
fi4)
Discount to net asset value (borrowings at fair value)
*
fi
A
2025
A
2024
MJ JASOND F
JM
● Share price*
●
NAV (fair)*
†
●
Index*
#
90
130
120
110
100
2025
2024
A
AM JJASONDF
JM
● Discount*
●
Average discount
(16%)
(10%)
(8%)
(14%)
(12%)
The Monks Investment Trust PLC
03
* fi120 to 123.
Key characteristics
Growth
Portfolio of growth
unconstrained by region
or sector.
Exposure spread across
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designed to deliver capital
growth.
Geared
Enhancement of
shareholder returns
Net gearing
*
8.9%.
A tiered management fee
means that shareholders
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of scale.
Ongoing charges ratio
*
0.43%
; among the lowest in
the sector.
Low
cost
An investment horizon
the growth potential of
investee companies to
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from the power of
compound growth.
Annualised turnover
*
23.2%.
Patience
Active
A portfolio that differs
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comparative index.
The Managers invest in
companies with distinct
competitive advantages
to deliver superior earnings
growth over time.
Active share
*
80%.
Capital
discipline
both issuance and
buybacks to maximise
shareholder return.
Buybacks of £321 million in
5;
12.4% of issued share capital.
This Strategic report, which
includes pages 5 to 48 and
incorporates the Chairman’s
statement, has been prepared in
accordance with the Companies
Act 2006.
Strategic
report
The Monks Investment Trust PLC
05
Chairman’s
statement
Karl Sternberg
Chairman
Appointed to the
Board in 2013,
Performance
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Intelligence spending boom. Indeed, as recently
as February of this year, Monks’ NAV per share
surpassed its previous high of £15, last reached
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occurred in April 2025, triggered by President
Trump’s ‘Liberation Day’ announcement of U.S. tariffs
and China’s retaliatory measures. Monks was heavily
NAV and share price reaching their lows for the year
During the year to 30 April 2025, the net asset
value (‘NAV’) total return, with borrowings calculated
at fair value, was +0.1% and the share price
the FTSE World Index return was +5.3%. This is
clearly a disappointing result, and whilst the team
are now in line with the index again this calendar
particularly disappointing for me to report this
underperformance, since I step down as Chairman
ofMonks at the forthcoming AGM.
Capital allocation and discount
The Company’s shares traded at a discount to net
asset value throughout the year. The Board has
been active in buying shares in the open market.
Having issued shares when Monks’ shares traded at
a premium to net asset value, we believe that it is our
obligation to be ready buyers at a discount. Buying
the Company’s own shares at a discount to NAV
enhances NAV per share for ongoing shareholders.
Company’s shares. We believe that the underlying
portfolio is attractive enough for our shares to trade
at close to or above NAV.
Strategic report
Annual Report and Financial Statements 2025
06
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bought 26.5 million shares, at a cost of £321.1million.
Since we commenced this active programme in
January 2022, we have bought back 65.5 million
shares at a cost of £727.1 million; representing
27.7% of the Company’s issued share capital as at
31December 2021, one of the largest buybacks in
was 10.1% (30 April 2024–8.5%).
The Board will continue its buyback policy as a
key part of its overall capital allocation; we have
discussed increasing the intensity of the buyback so
that the shares trade at a much narrower discount.
Recent events have revealed a clearer investor
preference for lower and less volatile discounts.
That is what you should expect to see in future at
Monks. We are reluctant to have a zero discount
policy, effectively giving up the advantages of not
shareholders should expect the Company to attempt
to restrict any discount, to net asset value with
digits, in normal market conditions.
Borrowings and gearing
Our investment trust structure allows gearing, which
strategic borrowing target is 10%. It is expected
that effective gearing will be maintained in the range
of minus 15% to plus 15%. The Company has a
mixture of long term, structural debt and shorter
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credit facility of £150 million with National Australia
Bank Limited expired at the end of November 2024
and has been replaced by a £100 million revolving
credit facility with The Royal Bank of Scotland
International; £50 million is drawn under this facility.
At the period end, net gearing was 8.9% and the
weighted average interest rate across all borrowings
was approximately 3.6%. Our decision to issue
structural debt at very low rates was the right one.
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more debt at such low rates.
Management expenses
Monks remains competitive on fees and expenses:
keeping fees as low as possible maximises the
ongoing charges ratio for the year to 30 April 2025
was 0.43% down marginally from 0.44% in the
prioryear. The current tiered management fee
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economies of scale as assets grow, from markets
and performance.
Earnings and dividend
Monks invests with the aim of maximising capital
growth rather than income. All costs are charged
to the Revenue Account. The Board’s policy is to
investment trust status. Retained earnings are
reinvested in the portfolio. In order to build in
headroom for further buybacks that would reduce
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of 0.5p be paid, compared to 2.10p last year, to
ensure that the amount retained for the year does
not exceed that permissible. Subject to shareholder
approval at the AGM, the dividend will be paid on
16September 2025 to shareholders on the register
at the close of business on 8 August 2025. The
exdividend date will be 7 August 2025.
The Board
As previously communicated, I will retire from the
Board at the conclusion of the Annual General
Meeting. Randeep Grewal will succeed me as
Chair of the Board, Nomination Committee and
Management Engagement Committee.
The Board is cognisant of the need to ensure
regular refreshment of its composition, whilst also
maintaining continuity and corporate memory. In
January, Dr Dina Chaya stood down from the Board
from her executive role. The Board undertook a
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and David Ballance was appointed as a Director in
March. We also announced that Richard Curling
would join the Board in October 2025. David and
Richard will both add investment trust experience
and wide investment knowledge to the Board. I think
they are excellent candidates, and I know they will
work hard to pursue your interests.
Annual General Meeting
The AGM will be held on Tuesday 9 September
2025 at the Royal Institution, 21 Albemarle Street,
London W1S 4BS, at 11.30 am. We look forward to
welcoming shareholders there.
The Monks Investment Trust PLC
07
The Board intends to hold the AGM voting on a
poll, so encourages all shareholders to exercise
their votes at the AGM by completing and
submitting a form of proxy. We recommend that
shareholders monitor the Company’s website at
monksinvestmenttrust.co.uk where any updates
regarding the meeting will be posted. Market
announcements will also be made in the event of any
change to the scheduled arrangements.
are welcome as always to submit them by email to
enquiries@bailliegifford.com or call 0800 9172113.
For shareholders investing through a platform,
the AIC guidance on how to vote shares in advance
or obtain the documentation necessary to vote
in person at the AGM, may be of assistance:
theaic.co.uk/how-to-vote-your-shares.
Adoption of new Articles of Association
At the AGM, to protect the interests of all
shareholders, we are seeking shareholder approval to
adopt new Articles of Association (the ‘New Articles’)
in order to update the Company’s current Articles of
Association (the ‘Existing Articles’). The proposed
amendments being introduced in the New Articles
will provide that a majority of the board of directors
of the Company (including the Chairman of the
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by the AIC Code of Corporate Governance) and that
proceedings of the Board must be conducted with a
majority of independent directors present.
A copy of the New Articles, which includes
the full terms of the proposed amendments to
the Existing Articles, will be available at the
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Place, London, EC3A 6AB between the hours of
9.00a.m. and 5.00 p.m. (Saturdays, Sundays and
public holidays excepted) and on the Company’s
website, monksinvestmenttrust.co.uk from the
date the annual report is posted to shareholders
until the close of the Annual General Meeting.
The proposed New Articles will also be available
for inspection at the venue of the Annual General
Meeting from 15minutes before and during the
meeting and ontheNational Storage Mechanism
located at https://data.fca.org.uk/#/nsm/
nationalstoragemechanism, from the date of the
annual report is posted to shareholders.
Outlook
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as stock market returns have been driven by a small
number of companies, which have represented an
increasingly large proportion of global stock market
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with around 100 holdings. Whilst our managers have
owned most of the companies that have driven stock
market returns in recent years, these companies
have represented a smaller proportion of Monks’
portfolio than their index weightings. This is now the
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has made mistakes, as every team makes mistakes.
I have referred in the past to the importance of
refocusing on valuations; and there have (inevitably)
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constructively critical, to probe more deeply when
things are going well, and to be more supportive
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At an AGM some years ago, a shareholder asked
what the appropriate assessment period for a
manager should be before reviewing them more
appropriate. The Board reassesses the Manager
every year, in line with AIC guidelines. But the longer
the period of assessment, the greater the information
content. Given that we are behind the index over
5years, you can expect the Board to be considering
this issue in even greater detail. The longer period
allows us to supplement the annual AIC checklist
with consideration of the effect of personnel change,
any process changes that have occurred during the
period, and changing marketdynamics.
We all share the view that there need to be a smaller
number of very sizeable investment trusts in future,
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fifi
more mergers occur. I know that my colleagues will
apply a great deal of effort to make sure that Monks
should remain a core holding in the growth category
and is in a position to be a consolidator.
KS Sternberg
Chairman
1 July 2025
Past performance is not a guide to future performance. Total return information is sourced from Baillie Gifford/LSEG. See disclaimer on page 116.
fion of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 123.
Strategic report
Annual Report and Financial Statements 2025
08
Managers’ review
Spencer Adair
Lead portfolio
manager
Malcolm MacColl
Deputy portfolio
manager
Helen Xiong
Deputy portfolio
manager
times. Yet history teaches us that every era feels
unprecedented to those living through it. In
living memory, we have witnessed the Berlin Wall
the dotcom rollercoaster, suffered 9/11, watched
China transform from agrarian society to economic
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navigated Brexit, endured a global pandemic, feared
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We have no special insight into what President
Trump might do next. The range of potential
outcomes remains extraordinarily wide. Policies
are announced and then rescinded almost daily.
So, rather than offering predictions that will likely
prove embarrassingly wrong by the time this report
reaches your hands, we will share the principles that
we are applying to navigate uncertainty and how
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Performance
The Global Alpha team has managed Monks for
ten years. Over this period, the NAV total return
(with debt at fair value) has been +163.3% (share
price +171.6%) compared to the comparative
index (FTSE World), which returned +182.0%. In
the twelve months to the end of April, the portfolio
underperformed the comparative index (FTSE World)
by 5.2%, delivering a NAV total return of +0.1%
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absolute returns of the past couple of years. The
high of £15 per share in February of this year.
The Monks Investment Trust PLC
09
However, the last two or so months of the year were
much weaker, driven primarily by global trade tensions
ignited by President Trump’s ‘Liberation Day’. Coupled
with strong negative momentum within the US market,
fell 20% from its peak in February to its lows in April).
The US is our largest geographic allocation in absolute
terms, and therefore, Monks gave up 10 months of
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Trump’s pronouncements and a lack of clarity on how
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been a weaker dollar, again impacting the Company,
whose shares are priced in sterling but where many of
the assets are in US dollars.
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Average weight
in portfolio
Average weight
in Index
Average active
weight
Total
Return Attribution
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DoorDash 2.3 0.1 2.2 40.6 0.8
Prosus 2.9 0.1 2.9 29.9 0.6
Alnylam Pharmaceuticals 1.0 0.0 0.9 70.1 0.6
Sea Limited 0.8 0.0 0.8 98.9 0.5
Shopify 1.4 0.1 1.2 2 7. 2 0.5
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Elevance Health 3.1 0.1 3.0
Novo Nordisk 1.7 0.5 1.2
Martin Marietta Materials 3.0 0.0 2.9
Moderna 0.4 0.0 0.4
Block 1.2 0.1 1.1
Source: Revolution, FTSE.
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The table above shows the largest contributors and
detractors from Monks’ relative performance over
the period. A cohort of our healthcare holdings
was among the largest detractors from relative
performance for the portfolio. President Trump’s
healthcare appointments and their combined
sentiment in healthcare. Against this backdrop,
Elevance Health and Novo Nordisk have both
suffered share price falls following disappointing
US health insurer. We believe a growing need for
health insurance coverage (as the population ages
and treatment becomes more expensive) provides
a structural tailwind for growth in the years ahead.
The recent weakness in Elevance’s shares is a result
customers falling as eligibility criteria are tightened
medical loss ratio and weighed on margins, but we
believe this is temporary. Elevance’s pricing power
(it can reprice policies annually) should allow it
to grow its margins again and deliver sustainable
Strategic report
Annual Report and Financial Statements 2025
10
Novo Nordisk could become one of the scale
providers of weight loss injections to a vast and
undersupplied market. Its shares fell sharply in
leading, showing 22.5% average weight loss across
the patient population, but this was lower than
anticipated. We think that the market’s reaction to
this is overdone. Today, just over 10 million people
take obesity drugs globally (only 1% of the global
obese population). As supply constraints ease, we
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share of the obesity market and believe the company
has an underappreciated competitive advantage in
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saw its shares fall 25% following the management
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over the next year. It continues to grow its services
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In contrast to Elevance and Novo Nordisk, where
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have sold our position in Moderna. Revenue from
to market with its RSV (respiratory syncytial virus)
vaccine was slow and allowed competitors to steal
the lead. Though we continue to believe that they
have a potentially exciting pipeline of drugs, our
patience has been exhausted.
Most of the portfolio holdings are in good shape.
Indeed, sticking within healthcare, Alnylam
Pharmaceuticals (gene silencing) reached a
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could multiply its addressable patient population
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behalf after the share price rose by 80%, but
we remain excited by the company’s potential to
address even larger patient populations.
Top contributors in the year included emerging
winners DoorDash (online food delivery) and Sea
Limited (ecommerce, gaming and payments). These
companies are emerging stronger in the face of a
higher cost of capital, while weaker competitors
fall by the wayside, and are entrenching their
competitive edge over peers. For example, DoorDash
has grown its market share in the US from 57% to
nearly 70% over the past three years and continues
to scale at pace (order numbers increased +18% to
an astonishing 643 million ). Excitingly,
it is making impressive progress in grocery delivery
and in new markets overseas. Indeed, the news of its
recent purchase of Deliveroo in the UK is evidence
of its growth ambitions.
Some of our largest positions have contributed
strongly too, with Prosus (investment holding
company) and Meta (advertising) among the most
notable. Prosus – which has a 25% shareholding
in Tencent, the Chinese internet giant – has seen
its portfolio of internet assets deliver robust
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12 months earlier than targeted. Meanwhile, Meta
continues to excel. AI investments have boosted
engagement and accelerated revenue growth
Successfully navigating uncertainty
tariffs by the US has stoked uncertainty and the
outlook for global growth. It would be easy to get
drawn into the noise and speculation, but this is
not in the best interests of Monks shareholders.
Indeed, the economist Frank Knight made a crucial
distinction between risk and uncertainty. Risk, he
explained, describes situations where outcomes and
probabilities can be reasonably estimated, such as
the odds when tossing dice or calculating insurance
premiums. Uncertainty, by contrast, applies to
situations where outcomes and their probabilities
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historical precedent. Risk can be priced, hedged,
and insured against. Uncertainty cannot.
This leads to three core principles that help to guide
us in the management of the Monks’ portfolio:
1. Build Resilience
2. Retain Perspective
Simple to list yet challenging to execute.
The Monks Investment Trust PLC
11
Building Resilience
We recognise that global geopolitics (not just
Trump’s tariffs) is likely to lead to more fractious
global trade and a wider range of outcomes for
investors. Our focus has been on ensuring that our
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portfolio is positioned to win across a wide range
of scenarios. Rather than attempting to predict
the unpredictable, we focus on building resilience
through investing in companies with robust
fundamentals and a diversity of growth drivers.
The portfolio holdings are both higher growth and
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(39% gross margins versus 29%), invest more in
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Nature teaches us that diverse ecosystems
demonstrate greater resilience than monocultures.
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yields under ideal conditions, but a single blight
can devastate everything. Biodiverse ecosystems,
meanwhile, contain countless species with
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some species suffer while others thrive, and the
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This principle shapes our portfolio construction for
Monks. We remain deliberately pragmatic about
growth sources, organising our holdings into three
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21. In short, the
stalwarts are the wealth compounders. They are
often franchise businesses that metronomically
increase earnings over decades and provide portfolio
ballast. The rapid growth stocks typically harness
technological innovation to disrupt industries
and grow rapidly. Our cyclical growth stocks are
more economically sensitive businesses whose
growth arrives unevenly; the opportunity here lies
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advantages. This broad and pragmatic approach
to growth gives us degrees of freedom to adapt to
changing conditions, seize emerging opportunities,
In this context, position sizing across the portfolio
matters too. We invest over 40% of the portfolio
per holding), where we believe the likelihood of
generating at least a doubling in return over the
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(but not always) in large, established companies
where the path to growth is clearest. However, we
offers and embrace this by managing a basket of
smaller, ‘incubator’ positions (<0.5%), where the
path to growth is less clear but potentially highly
rewarding for shareholders. We currently have
investments in 40 companies that make up around
15% of the portfolio. The portfolio effect is that
Monks’ shareholders are not overly exposed to the
fortunes of one company, but instead a diverse
which should be appealing to investors at a time of
heightened uncertainty.
Indeed, over the past year, we have sought to
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from some of our strongest performing (mainly US)
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The Trade Desk (programmatic advertising), Dutch
Bros (coffee) and Shopify (ecommerce). This has
been deployed into a wide range of attractively
valued growth opportunities that broaden the
base of growth across the portfolio. Examples of
newly established holdings include the likes of
growth stalwart, Paycom (payroll and HR software)
and cyclical stocks, FTAI Aviation (aero engine
maintenance and renewal) and WillScot (temporary
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Retaining Perspective
Stock markets behave strangely. They overreact to
headline news while simultaneously underreacting
to react to a dramatic headline, to do something,
can be overwhelming. Instead, we concentrate
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penetration of electric and autonomous vehicles.
These shifts will outlast political cycles and
understanding which structural shifts will endure
represents our most important task.
Annual Report and Financial Statements 2025
12
Around 25% of Monks is invested in companies
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in NVIDIA in Graphics Processing Unit design,
Microsoft in enterprise software, and Meta in
social media and advertising. We have deliberately
broadened and deepened the portfolio’s exposure
to companies across the AI value chain. In the past
year, this includes purchases of semiconductor
holdings like Disco Corporation (dicing, grinding
wafers) and Kokusai Electric (atomic layer
deposition machinery to enable the manufacture
the likelihood of greater chip demand from AI will
be a helpful tailwind for growth. Elsewhere, we
have been seeking out the early adopters in the
enterprise application space. This has drawn us
to the enterprise management software company
Salesforce. It is now positioning itself to capitalise
on the growing AI market through its new offering,
Agentforce. It allows customers to delegate tasks to
autonomous AI agents that are designed to handle
tasks such as data analysis, planning, and execution,
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represents a potentially valuable shift in Salesforce’s
business model and pricing strategy, which could
see growth accelerate in the years ahead.
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directly in the growth of electric and autonomous
vehicles (c. 3.5%), but the direction of travel
likes of CATL, the Chinese battery manufacturer,
Mobileye in driver safety and assistance software
and Li Auto in Chinese EV manufacturing. We have
discussed several opportunities over recent months,
alighting on the purchase of a new holding in Uber
Technologies
that connects drivers and passengers through
its mobile app. Uber’s competitive edge lies in its
strong brand recognition, price competitiveness,
scale advantage, and powerful network effects.
There remain countless opportunities to increase
penetration and to expand into new geographies
and adjacent businesses. With a vast addressable
transformation of the transportation industry,
supported by its strong consumer relationships and
operational expertise. While the market appears to
underappreciate Uber’s longevity and robustness,
we believe the company has the potential to
transform urban mobility and dominate the
autonomous vehicle (AV) future.
Remaining reward-seeking
The fundamental principles of investing sound
disarmingly simple: buy low, sell high. But adhering
to these principles amid market turbulence is
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perspective, we create the mental space to remain
upgrading the portfolio. Over the past year, our
valuation premium to the market (on a forward Price/
Earnings basis) has decreased from over 20% to
growth remains a healthy 45% premium to the
market (12.5% p.a. versus 8.6% p.a.). We are
turning volatility into opportunity.
Volatility has allowed us to purchase shares in
companies that we have admired for some time,
too. This was the case for Nu Holdings, the owner
operating in Brazil, Mexico and Colombia. Its shares
fell from $16 to $11 in January, which represented
an attractive entry point. The company has attracted
over half of Brazil’s adult population, mainly through
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product portfolio, different market segments
and multiple geographies. It leverages its digital
business model with an 85% cost advantage over
incumbent banks to undercut fees while offering a
superior customer experience, commanding one of
the highest net promoter scores of any consumer
company worldwide.
Gearing and buybacks
The board and manager believe in the importance
of utilising gearing and managing the current
discount to best protect existing shareholders.
Turning longterm performance around remains the
fi
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to our geared position, which now stands at 8.9%
on an invested basis (it was 6.8% a year ago). Our
largest capital allocation made over the past year
was the £321m to purchase our own shares at an
average discount of 10%.
Strategic report
The Monks Investment Trust PLC
13
This represents 12.4% of the Company’s opening
share count, added approximately 1.1% to the NAV
per share and represents a sustained commitment to
Outlook
The core approach to managing Monks remains
consistent. We select stocks based on their
fundamental attractions; we seek to invest in a
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superior levels of earnings growth; and we strive
to allow compounding to work its magic by being
patient. We overlay these principles – building
resilience, retaining perspective and remaining
a portfolio that is robust, has many drivers of
future returns and will outpace the market in its
delivery of earnings growth. Indeed, the portfolio’s
fundamentals point to a platform from which we
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returns in the years ahead. Returning to Frank
Knight’s wisdom about uncertainty, he argued that
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arise precisely from bearing uncertainty rather than
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thoughtfully under conditions of genuine uncertainty
creates the opportunity for extraordinary reward.
In these uncertain times, we remain grateful for your
continued trust.
Spencer Adair
Malcolm MacColl
Helen Xiong
Baillie
1 July 2025
Strategic report
Annual Report and Financial Statements 2025
14
The Managers’ core
investment beliefs
We believe the following features of Monks provide a
sustainable basis for adding value for shareholders.
Active management
up’ investment process.
* provides the potential for
adding value.
We look broadly for growth, spanning regions and
sectors deliberately seeking opportunities where
we think growth is least recognised.
we expect portfolio returns to diverge – sometimes
substantially and often for prolonged periods.
Committed growth investors
growth drives returns.
average growth, this in turn underpins the ability of
Monks to add value.
focusing on the type of growth that we expect
22
and 23.
a diversity of growth drivers within a disciplined
framework.
Long-term perspective
fundamentals are given time to drive returns.
the management of market expectations.
is important during the inevitable periods of
underperformance.
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governance matters.
Dedicated team with clear decision-making
process
responsible for Monks all own shares in the
Company.
Portfolio construction
as set out on pages 21 to 23.
stocks for which we have greater conviction, and
to embrace the asymmetry of returns through
‘incubator’ positions in higher risk/return stocks.
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
management fees.
fi
fi120 to 123.
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
are discussed with management with the aim of
improving the relevant policies and management
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
are signatories to the United Nations Principles for
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.
Strategic report
Annual Report and Financial Statements 2025
16
Ten largest
investments
T
5.
Microsoft
Microsoft is the world’s dominant
enterprise software company.
fi
with its Windows operating
fi
fi
intelligence (AI).
Geography North America
Valuation at
30 April 2025
£104,501,000
% of total assets 4.1%
Valuation at
30 April 2024
£102,564,000
% of total assets 3.6%
Net purchases/(sales)
in the year
£9,556,000
© Jae C. Hong/AP/REX/Shutterstock
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
fi
player in this large and growing
industry.
Geography North America
Valuation at
30 April 2025
£100,603,000
% of total assets 4.0%
Valuation at
30 April 2024
£99,850,000
% of total assets 3.5%
Net purchases/(sales)
in the year
(£5,972,000)
© Shutterstock/Melnikov Dmitriy
17
The Monks Investment Trust PLC
Prosus
Prosus is a global consumer
technology holding company.
fi
Tencent, the Chinese social media
and gaming giant. Elsewhere
across its portfolio it owns a
collection of strongly growing
online businesses with leading
positions in their domestic
markets.
Geography Continental Europe
Valuation at
30 April 2025
£87,086,000
% of total assets 3.4%
Valuation at
30 April 2024
£61,462,000
% of total assets 2.1%
Net purchases/(sales)
in the year
£9,621,000
TSMC
Taiwan Semiconductor
Manufacturing Company is the
largest and most advanced
foundry globally, integral to the
global electronics industry. Its
lead in semiconductor process
technology and partnerships with
all key chip design companies
opportunity as well as enduring
Geography Emerging Markets
Valuation at
30 April 2025
£81,423,000
% of total assets 3.2%
Valuation at
30 April 2024
£65,975,000
% of total assets 2.3%
Net purchases/(sales)
in the year
£12,184,000
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 2025
£92,864,000
% of total assets 3.7%
Valuation at
30 April 2024
£98,576,000
% of total assets 3.4%
Net purchases/(sales)
in the year
(£1,093,000)
© UCG/Getty Images © Taiwan Semiconductor Manufacturing Co., Ltd.
Strategic report
Annual Report and Financial Statements 2025
18
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.
Geography North America
Valuation at
30 April 2025
£69,262,000
% of total assets 2.7%
Valuation at
30 April 2024
£97,183,000
% of total assets 3.4%
Net purchases/(sales)
in the year
(£1,276,000)
The Schiehallion Fund
The Schiehallion Fund seeks
to generate capital growth for
businesses that have the potential
for transformational growth and to
become publicly traded.
Geography United Kingdom
Valuation at
30 April 2025
£68,420,000
% of total assets 2.7%
Valuation at
30 April 2024
£73,796,000
% of total assets 2.6%
Net purchases/(sales)
in the year
–
NVIDIA
NVIDIA designs and manufactures
graphics processing units. Its
semiconductors can be used for a
range of applications, from gaming
fi
years of investment into both
hardware and software, NVIDIA
fi
the rise of generative AI. NVIDIA is
using its scale to further reinvest
in its opportunity; designing new
hardware to make data centres
more powerful and energy
fi
to help companies adopt AI more
Geography North America
Valuation at
30 April 2025
£79,679,000
% of total assets 3.1%
Valuation at
30 April 2024
£49,131,000
% of total assets 1.7%
Net purchases/(sales)
in the year
£28,089,000
© Copyright (c) 2022 Nor Gal/Shutterstock
19
The Monks Investment Trust PLC
Ryanair
Ryanair is Europe’s leading
route network covering 200
destinations in over 30 countries.
By offering competitive prices and
fl
track to almost double passenger
numbers to 300 million by 2034.
Geography Continental Europe
Valuation at
30 April 2025
£56,267,000
% of total assets 2.2%
Valuation at
30 April 2024
£79,927,000
% of total assets 2.8%
Net purchases/(sales)
in the year
(£12,421,000)
© Ryanair
Service Corp. International
Service Corporation International
is North America’s leading provider
of funeral products and services.
fi
of brands, including Dignity
Memorial, National Cremation
Society, and Neptune Society, all
offering a comprehensive range of
compassionate and professional
care since 1962, making it a
fi
services industry.
Geography North America
Valuation at
30 April 2025
£57,702,000
% of total assets 2.3%
Valuation at
30 April 2024
£65,691,000
% of total assets 2.3%
Net purchases/(sales)
in the year
(£7,147,000)
Strategic report
Annual Report and Financial Statements 2025
20
21
The Monks Investment Trust PLC
Growth
categories
Growth stalwarts
Earnings
c.10% p.a. earnings growth
Company characteristics
Durable franchise
fi
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
fi
Time
Rapid growth
Earnings
c.10% to 15% p.a. earnings growth through a cycle
Company characteristics
fi
Time
Cyclical growth
Earnings
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 the three growth categories below.
The use of these three growth categories ensures a diversity of growth drivers within a disciplined
framework. The investment portfolio by growth category is set out on pages 22 and 23.
Strategic report
Annual Report and Financial Statements 2025
22
Investment portfolio
by growth category
*
as at 30 April 2025
fi120 to 123.
Denotes unlisted/private company investment.
Denotes suspended investment.
†
New purchase during the period.
Holding size Growth stalwarts 35.7% Rapid growth 33.0% Cyclical growth 31.3% Holding size
Highest conviction
holdings
c.2.0% each
Microsoft 4.1 Prosus 3.4 TSMC 3.2
Total in this
holding size
41.0%
Meta Platforms 4.0 NVIDIA 3.2 Ryanair 2.2
Amazon.com 3.7 The Schiehallion Fund 2.7 Martin Marietta Materials 1.9
Elevance Health 2.7 DoorDash 1.9 Royalty Pharma 1.8
Service Corporation International 2.3 CRH 1.7
Mastercard 2.2
Average sized holdings
c.1.0% each
Autozone 1.5 Novo Nordisk 1.2 Richemont 1.3
Total in this
holding size
43.3%
Alphabet 1.4 Block 1.2
FTAI Aviation
†
1.1
AIA 1.0 AeroVironment 1.2 Markel 1.0
1.0 Reliance Industries 1.1 Atlas Copco 1.0
Paycom Software
†
1.0 ByteDance 1.1 CATL 0.9
Cosmos Pharmaceutical
†
0.9 Shopify 1.0 B3 Group 0.9
Edenred
†
0.9 fl 0.9 BHP Group 0.9
Texas Instruments 0.9 Sea Limited 0.9 Nippon Paint 0.8
Olympus 0.9 Coupang 0.9 CBRE Group 0.8
Salesforce
†
0.8 MercadoLibre 0.9 Bellway 0.7
0.8 Spotify 0.8 Advanced Drainage Systems 0.7
Moody's 0.8 PDD Holdings 0.8 Petroleo Brasileiro ADR 0.7
Kweichow Moutai 0.8
Uber Technologies
†
0.8 CoStar 0.7
UnitedHealth 0.8 Li Auto 0.7 Epiroc 0.7
Arthur J. Gallagher 0.7 Alnylam Pharmaceuticals 0.7 Samsung Electronics 0.6
Adyen 0.7
Nu Holdings
†
0.7
Stripe 0.7
Incubator holdings
c.0.5% each
fi 0.6 Dutch Bros 0.6 Eaton 0.6
Total in this
holding size
15.7%
Walt Disney 0.6 Epic Games 0.6
Kokusai Electric
†
0.6
Topicus.com 0.5 Space Exploration Technologies 0.5
fi
†
0.6
Sartorius Stedim Biotech 0.4 fl 0.5
ON Semiconductor
†
0.6
LVMH 0.3
Applovin
†
0.5 Rakuten 0.5
Neogen Corp 0.1 The Trade Desk 0.5 Comfort Systems USA 0.5
ICICI Prudential Life Insurance 0.5 Builders FirstSource 0.5
CyberAgent 0.4 ASM International 0.5
Datadog 0.4 Entegris 0.5
Genmab 0.3 SMC 0.5
Mobileye 0.3
Disco Corporation
†
0.5
Enphase Energy
†
0.2 Nexans 0.4
Ant International 0.2 0.4
Illumina CVR <0.1
WillScot Holdings
†
0.3
Abiomed CVR – Brunswick Corp 0.3
Soitec 0.2
YETI Holdings 0.1
Silk Invest Africa Food Fund 0.1
Sberbank of Russia –
The Monks Investment Trust PLC
23
Holding size Growth stalwarts 35.7% Rapid growth 33.0% Cyclical growth 31.3% Holding size
Highest conviction
holdings
c.2.0% each
Microsoft 4.1 Prosus 3.4 TSMC 3.2
Total in this
holding size
41.0%
Meta Platforms 4.0 NVIDIA 3.2 Ryanair 2.2
Amazon.com 3.7 The Schiehallion Fund 2.7 Martin Marietta Materials 1.9
Elevance Health 2.7 DoorDash 1.9 Royalty Pharma 1.8
Service Corporation International 2.3 CRH 1.7
Mastercard 2.2
Average sized holdings
c.1.0% each
Autozone 1.5 Novo Nordisk 1.2 Richemont 1.3
Total in this
holding size
43.3%
Alphabet 1.4 Block 1.2
FTAI Aviation
†
1.1
AIA 1.0 AeroVironment 1.2 Markel 1.0
1.0 Reliance Industries 1.1 Atlas Copco 1.0
Paycom Software
†
1.0 ByteDance 1.1 CATL 0.9
Cosmos Pharmaceutical
†
0.9 Shopify 1.0 B3 Group 0.9
Edenred
†
0.9 fl 0.9 BHP Group 0.9
Texas Instruments 0.9 Sea Limited 0.9 Nippon Paint 0.8
Olympus 0.9 Coupang 0.9 CBRE Group 0.8
Salesforce
†
0.8 MercadoLibre 0.9 Bellway 0.7
0.8 Spotify 0.8 Advanced Drainage Systems 0.7
Moody's 0.8 PDD Holdings 0.8 Petroleo Brasileiro ADR 0.7
Kweichow Moutai 0.8
Uber Technologies
†
0.8 CoStar 0.7
UnitedHealth 0.8 Li Auto 0.7 Epiroc 0.7
Arthur J. Gallagher 0.7 Alnylam Pharmaceuticals 0.7 Samsung Electronics 0.6
Adyen 0.7
Nu Holdings
†
0.7
Stripe 0.7
Incubator holdings
c.0.5% each
fi 0.6 Dutch Bros 0.6 Eaton 0.6
Total in this
holding size
15.7%
Walt Disney 0.6 Epic Games 0.6
Kokusai Electric
†
0.6
Topicus.com 0.5 Space Exploration Technologies 0.5
fi
†
0.6
Sartorius Stedim Biotech 0.4 fl 0.5
ON Semiconductor
†
0.6
LVMH 0.3
Applovin
†
0.5 Rakuten 0.5
Neogen Corp 0.1 The Trade Desk 0.5 Comfort Systems USA 0.5
ICICI Prudential Life Insurance 0.5 Builders FirstSource 0.5
CyberAgent 0.4 ASM International 0.5
Datadog 0.4 Entegris 0.5
Genmab 0.3 SMC 0.5
Mobileye 0.3
Disco Corporation
†
0.5
Enphase Energy
†
0.2 Nexans 0.4
Ant International 0.2 0.4
Illumina CVR <0.1
WillScot Holdings
†
0.3
Abiomed CVR – Brunswick Corp 0.3
Soitec 0.2
YETI Holdings 0.1
Silk Invest Africa Food Fund 0.1
Sberbank of Russia –
Strategic report
Annual Report and Financial Statements 2025
24
List of
investments
as at 30 April 2025
* fi120 to 123.
Denotes unlisted/private company investment.
†
New purchase during the period.
Name Business
Value
£’000
% of total
assets *
Microsoft Software and cloud computing 104,501 4.1
Meta Platforms Social networking website 100,603 4.0
Amazon.com Online retailer and cloud computing platform 92,864 3.7
Prosus Media and ecommerce 87,086 3.4
TSMC Semiconductor manufacturer 81,423 3.2
NVIDIA Graphics processing, gaming, AI technology 79,679 3.1
Elevance Health Healthcare insurer 69,262 2.7
The Schiehallion Fund 68,420 2.7
Service Corporation International Funeral and crematoria services 57,702 2.3
Ryanair Low cost European airline 56,267 2.2
Mastercard Electronic payments network and related services 55,688 2.2
Martin Marietta Materials Cement and aggregates manufacturer 47,633 1.9
DoorDash Online commerce platform 47,362 1.9
Royalty Pharma Biopharmaceutical royalties portfolio 45,581 1.8
CRH fi 42,387 1.7
Autozone Automotive replacement parts and accessories 36,885 1.5
Alphabet Online search engine 35,292 1.4
Richemont Luxury goods 31,971 1.3
Novo Nordisk Diabetes and weight loss treatment 29,773 1.2
Block Financial technology 29,556 1.2
AeroVironment Reconnaissance and defence drones 29,292 1.2
FTAI Aviation
†
Aerospace company 27,444 1.1
Reliance Industries Indian energy conglomerate 27,226 1.1
ByteDance Online content platform including TikTok 26,680 1.0
Markel Speciality insurance products 26,502 1.0
Shopify Online commerce platform 26,453 1.0
AIA Asian life insurer 26,371 1.0
Credit rating agency 25,693 1.0
Paycom Software
†
Enterprise management software 24,301 1.0
Atlas Copco 24,233 1.0
The Monks Investment Trust PLC
25
Name Business
Value
£’000
% of total
assets *
CATL Battery manufacturer 23,826 0.9
fl Entertainment streaming services 23,324 0.9
B3 Group Brazilian stock exchange operator 22,946 0.9
Cosmos Pharmaceutical
†
Drug store chain 22,896 0.9
BHP Group Mineral exploration and production 22,267 0.9
Sea Limited Online and digital gaming 22,169 0.9
Coupang South Korean ecommerce 22,021 0.9
Edenred
†
fi 21,881 0.9
Texas Instruments Analog semiconductors 21,746 0.9
Olympus Optoelectronic products 21,686 0.9
MercadoLibre Latin American ecommerce platform 21,520 0.8
Salesforce
†
Cloud based software company 21,378 0.8
Industrial pressure treated wood products 21,270 0.8
Spotify Online music streaming service 20,954 0.8
Moody's Credit rating agency 20,856 0.8
PDD Holdings Chinese ecommerce 20,542 0.8
Nippon Paint Japanese paint manufacturer 20,454 0.8
Kweichow Moutai Spirits manufacturer 20,428 0.8
CBRE Group Commercial real estate 20,353 0.8
UnitedHealth Healthcare insurer 20,120 0.8
Uber Technologies
†
Ride hailing and food delivery 19,009 0.7
Bellway Housebuilder 18,857 0.7
Li Auto Chinese EV manufacturer 18,493 0.7
Advanced Drainage Systems Manufacturer of pipes and drainage systems 18,418 0.7
Petroleo Brasileiro Oil and gas exploration and production 18,309 0.7
CoStar Commercial property portal 17,733 0.7
Alnylam Pharmaceuticals RNA interference therapeutics 17,488 0.7
Adyen Digital payments 17,449 0.7
Nu Holdings
†
Brazilianfi 17,348 0.7
Arthur J. Gallagher Insurance broker 17,344 0.7
* fi120 to 123.
Denotes unlisted/private company investment.
†
New purchase during the period.
Strategic report
Annual Report and Financial Statements 2025
26
Name Business
Value
£’000
% of total
assets *
Epiroc Construction and mining machinery 16,894 0.7
Stripe Digital payments platform 16,641 0.7
Samsung Electronics Semiconductors and consumer goods 16,320 0.6
fi fi 16,076 0.6
Dutch Bros Coffee and drinks retailer 15,916 0.6
Eaton Industrial engineering products 15,821 0.6
Walt Disney Media and theme parks 15,507 0.6
Epic Games Gaming software developer 15,494 0.6
Kokusai Electric
†
Semiconductor 14,816 0.6
fi
†
Asset management company 14,743 0.6
ON Semiconductor
†
Supplier of power semiconductors 14,167 0.6
Space Exploration Technologies Space rockets and satellites 13,850 0.5
Rakuten fi 13,607 0.5
fl Cloud based IT services 13,538 0.5
Applovin
†
Online game development platform 13,467 0.5
Comfort Systems USA HVAC systems and solutions 13,437 0.5
Topicus.com Vertical market software and solutions 13,285 0.5
Builders FirstSource Building products for professional homebuilders 13,220 0.5
ASM International Vapour deposition technology for semiconductors 13,064 0.5
The Trade Desk Programmatic advertising platform 12,185 0.5
ICICI Prudential Life Insurance Life insurance services 12,160 0.5
Entegris Supplier of materials to semiconductor industry 11,801 0.5
SMC 11,610 0.5
Disco Corporation
†
11,380 0.5
Sartorius Stedim Biotech 11,179 0.4
Nexans Electrical transmission cabling installer 10,555 0.4
CyberAgent Japanese internet advertising and content 9,558 0.4
Datadog Cloud based IT system monitoring application 9,324 0.4
Floor and furnishing retailer 8,856 0.3
LVMH Luxury goods 8,480 0.3
* fi120 to 123.
Denotes unlisted/private company investment.
†
New purchase during the period.
The Monks Investment Trust PLC
27
Name Business
Value
£’000
% of total
assets *
WillScot Holdings
†
fi 8,064 0.3
Genmab Biotechnology 7,970 0.3
Brunswick Corp Recreational boats, marine engines
and accessories
6,473 0.3
Mobileye Advanced driver assistance systems (ADAS) and autonomous
driving technologies
6,413 0.3
Enphase Energy
†
Provider of energy management solutions 5,748 0.2
Soitec Manufactures substrates for semiconductor wafers 5,512 0.2
Ant International fi 5,327 0.2
YETI Holdings Outdoor lifestyle products 3,438 0.1
Neogen Corp Food and animal safety products and services 2,865 0.1
Silk Invest Africa Food Fund 2,438 0.1
Illumina CVR 57 <0.1
Abiomed CVR Medical implant manufacturer – –
Sberbank of Russia Russian commercial bank – –
Total investments
2,528,471 99.5
13,850 0.5
Total assets* 2,542,321 100.0
Borrowings (at book value) (223,415) (8.8)
Shareholders' funds 2,318,906 91.2
Listed
equities
%
Schiehallion
Fund
#
%
Unlisted
securities
‡
%
Net liquid
assets *
%
Total
assets *
%
30 April 2025 93.7 2.7 3.1 0.5 100.0
30 April 2024 94.1 2.6 2.0 1.3 100.0
* fi120 to 123.
Denotes unlisted/private company investment.
Denotes suspended investment.
†
New purchase during the period.
Complete sales during the period were: Ashstead Group, BIG Technologies, Pernod Ricard, Adevinta Asa, Schibsted, Adobe Systems, Advanced Micro
Devices, Albemarle, Alibaba, Analog Devices, Certara, Chewy, HDFC, Hoshizaki Corp, Lemonade, Moderna, Norwegian Cruise Line, Pool Corporation,
Sands China, Shiseido, SiteOne Landscape Supply, Staar Surgical, Sysmex, Tesla, Woodside Energy Group.
#
The Schiehallion Fund is managed by Baillie Gifford. The Company’s holding in The Schiehallion Fund is excluded from its assets when calculating
92.
‡
Includes holdings in preference shares, ordinary shares and contingent value rights (CVR).
Strategic report
Annual Report and Financial Statements 2025
28
We aim to hold our private company investments
both during regular valuation cycles and on an
are valued in both a fair and timely manner.
The valuation process is overseen by a valuations
committee at Baillie Gifford which takes advice
fi
fi
reassessed each month. For investment trusts,
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
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
fl
next published net asset value.
In addition to the 3.1% of the portfolio holdings in
direct private company investments, 2.7% of the
portfolio is in The Schiehallion Fund, a closed ended
investment company investing predominantly in
private companies, which is valued at its publicly
available market price.
Baillie Gifford – valuing
private companies
29
The Monks Investment Trust PLC
Portfolio
positioning
as at 30 April 2025
*
†
it is essential to understand the risks of each investment and, in turn, where there may
portfolio at the Company’s year end.
Sectoral
Geographical
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
Geographical region % at
30 April
2025
% at
30 April
2024
1 North America 58.0 5 7. 4
2 Continental Europe 16.3 1 7. 7
3 Emerging Markets 13.9 12.6
4 Japan 5.1 4.2
5 United Kingdom 3.4 3.6
6 Developed Asia 2.8 3.2
7 0.5 1.3
* Expressed as a percentage of total assets.
†
fi120 to 123.
Past performance is not a guide to future performance.
Sector % at
30 April
2025
% at
30 April
2024
1 Technology 34.1 28.5
2 Industrials 19.3 18.2
3 Consumer Discretionary 18.9 20.3
4 Financials 10.2 11.7
5 Healthcare 9.5 11.8
6 Energy 2.0 2.6
7 Consumer Staples 1.7 1.2
8 Basic Materials 1.7 1.9
9 Real Estate 1.5 1.6
10 Telecommunications 0.6 0.9
11 0.5 1.3
Strategic report
Annual Report and Financial Statements 2025
30
One year
summary
The following information
illustrates how Monks has
performed over the year
5.
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 to 123.
†
Key Performance Indicator.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 116.
Past performance is not a guide to future performance.
30 April
2025
30 April
2024 % change
Total assets
(before deduction of borrowings)
£2,542.3m £2,884.3m
Borrowings (at book value) £223.4m £223.2m
Shareholders’ funds £2,318.9m £2,661.1m
Net asset value per ordinary share
(borrowings at par)*
1,235.9p 1,242.7p
Net asset value per ordinary share
(borrowings at fair value)*
1,265.2p 1,266.1p
Share price 1,138.0p 1,158.0p (1.7)
FTSE World Index
(in sterling terms)
3.3
Ongoing charges*
†
0.43% 0.44%
Discount
(to NAV with borrowings at par)*
(7.9%) (6.8%)
Discount
(to NAV with borrowings at fair value)*
†
(10.1%) (8.5%)
Active share* 80% 81%
Revenue earnings per ordinary share 1.75p 3.68p (52.4)
Dividends paid and payable in respect
of the year
0.50p 2.10p (76.2)
Gross gearing* 9.6% 8.4%
Net gearing* 8.9% 6.8%
31
The Monks Investment Trust PLC
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 to 123.
†
Key performance indicator.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 116.
Past performance is not a guide to future performance.
Year to 30 April 2025 2024
Total return performance (%)*
Net asset value per ordinary share (borrowings at par)
†
(0.4) 1 7.7
Net asset value per ordinary share (borrowings at fair value)
†
0.1 1 7. 6
Share price
†
(1.5) 19.1
FTSE World Index (in sterling terms) 5.3 19.1
Year to 30 April 2025 2025 2024 2024
Year’s high and low High Low High Low
Net asset value per ordinary share (borrowings at par)* 1,477.7p 1,137.6p 1,292.1p 1,003.3p
Net asset value per ordinary share (borrowings at fair value)* 1,504.2p 1,167.5p 1,314.1p 1,028.1p
Share price 1,344.0p 1,036.0p 1,158.0p 890.0p
Discount (borrowings at fair value)*
†
(7.2%) (15.6%) (8.6%) (14.8%)
Year to 30 April 2025 2024
Net return per ordinary share
Revenue 1.75p 3.68p
Capital (10.08p) 174.07p
Total (8.33p) 177.75p
Strategic report
Annual Report and Financial Statements 2025
32
Premium/(discount)* to NAV
‡
fi
20252020 2021 2022 2023 2024
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 120 to 123.
†
See disclaimer on page 116.
#
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
fi20)
20252020 2021 2022 2023 2024
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
index and its underlying NAV
*
fi
5.
33
The Monks Investment Trust PLC
20252021 2022 2023 2024
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 120 to 123.
†
With borrowings deducted at fair value.
#
See disclaimer on page 116.
‡
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*
2025
2021
2022 2023 2024
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 2025
34
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) *
†
%
2015 (9.0) (8.6)
2016 (10.0) (9.5)
2017 (1.2) (0.6)
2018
2019
2020
2021
2022 (3.5) (4.4)
2023 (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)
2025 2,542,321 223,415 2,318,906 1,235.9 1,265.2 1,138.0 (7.9) (10.1)
Ten year
record
Source: LSEG/Baillie Gifford. See disclaimer on page 116.
* fi120 to 123.
†
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
*
†
%
Net
(equity)
gearing *
%
Gross
gearing *
%
2015 20,215 10,549 4.74 3.95 0.58
2016 15,149 4,954 2.31 1.50 0.59
2017 17,593 5,043 2.36 1.25 0.59
2018 19,759 5,588 2.61 1.40 0.52
2019 23,268 7,186 3.30 1.85 0.50
2020 26,691 9,319 4.24 2.50 0.48
2021 7,801 2.00 0.43
2022 27,811 8,644 3.67 2.35 0.40
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
2025 25,953 3,516 1.75 0.50 0.43 9 10
35
The Monks Investment Trust PLC
Source: Baillie Gifford/LSEG and underlying data providers. See disclaimer on page 116.
* See Glossary of terms and Alternative Performance Measures on pages 120 to 123.
†
FTSE World Index (in sterling terms).
Past performance is not a guide to future performance.
Cumulative performance (taking 2015 as 100)
At 30 April
NAV per
share (fair)
NAV total
*
Share
price
Share price
* Index
†
Index
†
Revenue
earnings
per ordinary
share
Dividends
paid and
proposed
per ordinary
share
2015 100 100 100 100 100 100 100 100
2016 99 100 98 99 98 100 49 38
2017 138 139 150 152 125 132 50 32
2018 159 161 180 183 131 141 55 35
2019 178 181 203 206 143 158 70 47
2020 184 187 210 214 138 156 89 63
2021 285 291 321 327 181 209 72 51
2022 231 236 242 247 189 222 77 59
2023 227 232 224 229 190 229 99 80
2024 266 273 266 273 222 273 78 53
2025 266 273 262 269 229 288 37 13
Compound annual returns (%)
5 year 7. 6 7. 9 4.5 4.7 10.7 13.0 (16.2) (27.5)
10 year 10.3 10.6 10.1 10.4 8.6 11.1 (9.5) (18.7)
Cumulative to 30 April
20252015 2017 2020 2022 20242016 20192018 2021 2023
● Share price
*
● NAV (fair)
*
● Index
*†
0
50
100
150
200
250
300
350
400
Ten year total return performance
*
Strategic report
Annual Report and Financial Statements 2025
36
37
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
fi
.
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
fi
capital although, subject to shareholder approval
sought annually, it may purchase its own shares
is determined, like other listed shares, by supply
The Company has been approved as an investment
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
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
companies and keeping fees and costs low.
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
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
fi
fi
end, the portfolio contained 103
A portfolio review by the investment managers
is given on pages 8 to 13 and the investments
held at the year end are listed on pages 24 to 27.
Investment may also be made in funds (open and
in UK listed investment companies in aggregate
is 15% of gross assets. Asset classes other than
fi
and derivatives. The Company may use derivatives
fi
(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
terms and relative to the comparative index.
Payment of dividends is secondary to achieving
capital growth. The shares are not considered to
or rising income.
Strategic report
Annual Report and Financial Statements 2025
38
classes when this is considered to be appropriate on
investment grounds. Gearing levels, and the extent
investment managers at every Board meeting and
adjusted accordingly with regard to the outlook.
New borrowings will not be taken out if this takes
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.
on pages 45 to 47 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
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 59 and when evaluating the
Managers as noted on page 55. These KPIs are
established industry measures and are as follows:
share on a total return basis;
An explanation of these measures can be found in
the Glossary of terms and Alternative Performance
Measures on pages 120 to 123fi
3035.
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
value assessments of its products. Following the
assessment in 2025, it was concluded that the
Company was expected to provide fair value for
Borrowings
The Company’s borrowings at 30 April 2025
comprised:
4 – £60 million);
4 – £40 million);
4 – );
4 – );
4 – );
4 – ); and
50 million under the £10fl
facility with Royal Bank of Scotland International
Limited (30 April 2024 – £50 million under the
fl
Australia Bank).
Further details of the Company’s borrowings are set
out in notes 11 and 12 on pages 96 and 97 and details
of the Company’s gearing levels are included in the
Chairman’s Statement on page 6 and the Ten Year
Record on page 34.
39
The Monks Investment Trust PLC
Principal and emerging risks
As explained on pages 64 and 65 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
managed or mitigated is set out below.
The rating and change has been included to show
if the risk is high (red), moderate (amber) or low
(green) and an upwards arrow, dash or downwards
arrow has been included to show if the risk level has
increased, remained stable, or decreased since it
was last reported in last year’s Annual Report and
Financial Statements. The Board considers heightened
macroeconomic and geopolitical concerns to be
Investment and strategic risks
Investment
strategy risk
What is the risk?
Pursuing an investment
fi
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.
Rating and
change
Current assessment of risk
This risk is considered to
have increased. The market
appetite for growth investing is
considered to have deteriorated
over recent months as investors
shift to assets perceived to
be safe or offering insulation
from market volatility. Despite a
fi
the discount of the share price
to net asset value has widened
over the year.
Financial
risk
What is the risk?
The Company’s assets consist
mainly of listed securities and
its principal and emerging
fi
market related and include
market risk (comprising
currency risk, interest rate
risk and other price risk),
An explanation of those risks
and how they are managed
is contained in note 19 to
the Financial Statements on
pages 84 to 106.
How is it managed?
In order to oversee this risk, the
Board considers at each meeting
various metrics including the
fi
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.
Rating and
change
Current assessment of risk
This risk is considered to
be high but unchanged
The prospect of heightened
market volatility remains from
deteriorating geopolitical
fl
hostilities in the Middle East.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Strategic report
Annual Report and Financial Statements 2025
40
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
fi
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.
Rating and
change
Current assessment of risk
The Company’s discount has
widened during the year. The
Company has been buying
back shares for treasury since
January 2022, and over the
course of the Company’s
fi
shares were bought back.
Political and
associated
economic
risk
What is the risk?
Political change in areas in
which the Company invests
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
fi
stream where appropriate,
as well as by investee
companies’ primary location
and considers the potential for
negative impacts arising from
military action, trade barriers
Rating and
change
Current assessment of risk
This risk is seen as increasing
as deteriorating geopolitical
stability increases the prospect
fl
sanctions.
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’
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 88.
Rating and
change
Current assessment of risk
The Managers continue to
embed analysis of ESG factors
within the investment process.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
41
The Monks Investment Trust PLC
Regulatory
risk
What is the risk?
Failure to comply with
applicable legal and
such as the tax rules for
investment trust companies,
the UK 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
fi
fi
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 Disclosure
and Transparency Rules with
reference to inside information.
Rating and
change
Current assessment of risk
All control procedures are
working effectively. There have
been no material regulatory
changes that have impacted
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
reports from the depositary
fi
Company’s assets held by the
custodian. Cash and portfolio
holdings are independently
reconciled to the custodian’s
records by the Managers who
fi
unlisted portfolio holdings to
fi
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
Rating and
change
Current assessment of risk
All control procedures are
working effectively.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Strategic report
Annual Report and Financial Statements 2025
42
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,
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
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
fi
fi
their respective services to
Rating and
change
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’).
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
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 96 and 97.
The majority of the Company’s
securities that are readily
realisable. Further information
on leverage can be found on
page 116 and in the Glossary
of terms and Alternative
Performance Measures on
pages 120 to 123.
Rating and
change
Current assessment of risk
fi
level. The Company replaced
the £150 million National
fl
facility with a £100 million
fl
Bank of Scotland International
Limited during the year.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
43
The Monks Investment Trust PLC
Cyber
security risk
What is the risk?
fi
integrity or availability
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.
Rating and
change
Current assessment of risk
This risk is seen as elevated but
stable due to the continuation
of geopolitical tensions that
could lead to more cyber
attacks. Emerging technologies,
including AI, could potentially
increase information security
risks. In addition, service
providers operate a hybrid
fi
working, thereby increasing
the potential of a cyber
Emerging
risks
As explained on page 64 the Board has regular discussions on principal risks and uncertainties,
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Strategic report
Annual Report and Financial Statements 2025
44
Viability statement
Having regard to provision 31 of the UK Corporate
Governance Code, the Directors have assessed the
fi
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
fi
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,
39
to 47), in particular the impact of market risk
fi
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 2027, 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,
fi
fi
services to the Company. In addition, as substantially
are outsourced to third party service providers,
this allows key service providers to be replaced at
fi
during the year, including consideration of risk of
market volatility 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,
fi
fi
Board believes that the prospects of the Company
fi
that they have a reasonable expectation that it will
continue in operation and meet its liabilities as they
fi
45
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
fi
so, have regard (amongst other matters and to the
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
employees, the Board considers the Company’s key
stakeholders to be: its existing and potential new
(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
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
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
fi
also communicate with members of the Board at any time by
fi
Company’s broker. These communication opportunities help
inform the Board when considering how best to promote the
fi
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
fi
Baillie Gifford. Baillie Gifford is therefore
responsible for the substantial activities of
the Company and has the most immediate
fl
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 2025
46
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
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
business strategies will be supported.
The Board is cognisant of the need to consider the impact of
and the environment. The Board considers that its oversight
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
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
fi
are free from material misstatement, as set
out in more detail in the Auditor’s Report to
the Members on pages 77 to 83.
The Company’s auditor meets with the Audit Committee, in the
absence of the Managers where deemed necessary, and 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
fi
55.
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
fi
or revolving credit facilities provide the
Company’s gearing and have an interest
fi
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
fi
lenders receives a prompt response.
AIC/industry peers The Association of Investment Companies
(‘AIC’) and the Company’s investment
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
or regulatory developments, corporate governance discussions
and/or training.
47
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
fl
society in which it operates or utilising the
relationships, as noted above, the Company
fl
circumstances where that is not 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
fi
health and resources).
The Board recognises the importance of keeping
the interests of the Company’s shareholders, and
fi
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
the Directors to have regard to applicable section
172 factors included:
arrangement in November 2024 of a
fl
credit facility with the Royal Bank of Scotland
International Limited to replace the expiring
£150 million facility with National Australia Bank
Limited.
26 million of the Company’s own
for their shares when natural market demand
fi
0.50p,
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;
the completion of the recruitment process and
David Ballance with
effect from 1 March 2025 and Richard Curling
with effect from 1 October 2025, to enhance
the Board’s fund management and investment
industry expertise. These appointments are
consistent with the AIC Corporate Governance
Code principle that ‘a successful company is led
by an effective board, whose role is to promote
value for shareholders and contributing to wider
consultants Cornforth Consulting with due regard
for gender and ethnic diversity.
Strategic report
Annual Report and Financial Statements 2025
48
Employees, human rights and
information about employees, human rights
and community issues. As the Company has no
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 61 and 62.
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 66.
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
fi
considers its supply chains to be of low risk as
bailliegifford.com.
Future developments of the Company
The outlook for the Company is dependent to a
fi
fi
in the Principal risks analysis on pages 39 to 43
and factors which the Board consider to indicate
fi
health are discussed in the Viability statement on
page 44. Further comments on the outlook for the
Company and its investment portfolio are set out
5 to 7 and the
Managers’ report on pages 8 to 13.
The Strategic report which includes pages 5 to 48
was approved by the Board of Directors and signed
on its behalf on 1 July 2025.
KS Sternberg
Chairman
Governance
report
This Governance report, which includes
pages 50 to 57 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 2025
50
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,
fi
Asset Management Limited. He left that role to
establish Oxford Investment Partners, an investment
management company for a group of Oxford colleges,
fi
Capital Gearing Trust P.l.c, where he will become
Chairman on 3 July 2025. He is also Chairman of Apax
Global Alpha Limited.
David Ballance
Director
Appointed 2025
David Ballance was appointed a Director on 1 March
management experience. He was a Partner at Ruffer
LLP from 2007 until 2022. An external member of
the Investment Group at Christ Church Oxford since
2012, he took on the role of Chair in January 2025.
fi
Foundation and currently serves as a Member of their
Investment Committee, is a Trustee Director of the
NACAB (1991) Pension Plan, a Member of the Book
Tokens Investment Committee and is also a Trustee
for the Fellowship of St John (UK) Trust and St Alban’s
Holborn.
51
The Monks Investment Trust PLC
Claire Boyle
Audit Committee
Chair
Appointed 2020
Claire Boyle was appointed a Director in 2020
and became Audit Committee Chair in September
2024. fi
in litigation support and forensic accounting,
Investment Management; American Express
Asset Management; and latterly Oxburgh Partners
LLP, where she was a partner with responsibility
committee of Fidelity Special Values Plc, and the
Randeep Singh Grewal was appointed a Director in
Smaller Companies Trust plc. Having read Medicine
and Computer Science at Jesus College, Cambridge,
his skills in healthcare and technology to working as
an analyst and portfolio manager with Tudor Capital
Asset Management from 2010 to 2012 and for Trium
Randeep Grewal
Director
Appointed 2024
Governance report
Annual Report and Financial Statements 2025
52
Management Engagement Committee and the Nomination Committee,
and all are members of the Audit Committee with the exception
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
fi
of Southampton. He specialises in open data and
fi
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
Phoenix Group Holdings.
Stacey
Parrinder-Johnson
Director
Appointed 2024
in 2024. She was, until September 2023, chief
fi
UK, where she was also a member of the executive
management committee, chair of the investment
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.
53
The Monks Investment Trust PLC
Spencer Adair
Spencer is an investment manager in the Global
Alpha Team. He has been an investment manager in
the Global Alpha Team since its inception in 2005
and for Monks Investment Trust since 2015. Spencer
the International Concentrated
Growth Strategy. He joined Baillie Gifford in 2000
and became a partner in 2013. Spencer has also
spent time working in the Fixed Income, Japanese,
Portfolio Managers
Spencer Adair
Lead portfolio
Manager
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
fi
in 2021. Malcolm graduated MA in Economics and
History in 1998 and MLitt in Economics, Politics
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
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 2025
54
Statements of the Company for
5
Directors’ report
Corporate governance
59 to 66
fifi
eleven
£206
fi
7
The Investment Management Agreement sets out the
55
The Monks Investment Trust PLC
fi
total assets (see note 3 on page 92
and
fi
fi
50 to 52
for
fi
Karl Sternberg
fi
5 and up to the date of approval of
fi
fi
fi
fl
fl
fl
fl
fl
Governance report
Annual Report and Financial Statements 2025
56
fip
fi
6 September 2025 to shareholders
8 August
20257 August 2025
Plan (see page 115fi
6 August 2025
5
fi
can be found on pages 111 to 113
Name
No. of ordinary
5p shares held at
30 April 2025
% of
issue
Rathbone Investment
Management Ltd
19,341,323 10.3%
fi
5 and 26 June 2025
Annual General Meeting
Issuance of shares
fi
)
5 the
Between 1 May and 26 June 2025
12
of £
6 or
13
as at 26 June 2025
6 or
57
The Monks Investment Trust PLC
Purchase of own shares
5
5 the Company bought back a total
of % of the
4
124
pence per share and a
total cost of £3
5
5 to 26 June 2025
2025
6
UK
fi
14
110
Resolution 14, which is proposed as a special
resolution seeks shareholder approval to update the
Articles of Association, as noted in the Chairman’s
Statement on page 7.
fi
fi
fi
fi
fi
Governance report
Annual Report and Financial Statements 2025
58
Post Balance Sheet events
fi
thereto up to 1 July 2025
Recommendation
On behalf of the Board
KS Sternberg
1 July 2025
59
The Monks Investment Trust PLC
Compliance
fi
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
fi
on page 68.
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 seven Directors all
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
fi
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
fi
provides a framework of best
practice for investment companies
and can be found at theaic.co.uk.
Governance report
Annual Report and Financial Statements 2025
60
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*
Belinda Richards
Audit
Committee
Chair: Claire Boyle
Purpose: The primary purpose of the
fi
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.
appointed by the Board
Alternative Investment Fund Managers,
Company Secretaries and fund administrators:
Dealing activity and transaction reporting:
Baillie Gifford Overseas Limited and
Baillie Gifford Asia (Hong Kong) Limited
*Karl Sternberg will stand down from the Board on 9 September 2025 and Randeep Grewal will become Chairman.
61
The Monks Investment Trust PLC
Belinda Richards is Senior Independent Director
(SID) 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 50 to 52.
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
annual basis and at such other times as may be
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.
fl
interest and for making recommendations on
fl
authorised. The Committee’s Terms of Reference
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. David Ballance and Richard
Curlingficandidates
as the Committee concluded that their experience
fi David Ballance was
appointed to the Board with effect from 1 March 2025
and Richard Curling with effect from 1 October 2025.
The terms and conditions of Directors’ appointments
are set out in formal letters of appointment which are
retire and seek election by shareholders at the next
Annual General Meeting. In accordance with the
annually.
Diversity Policy
Appointments to the Board are made on merit
fi
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
placed to help the Company achieve its investment
and governance objectives. Within the context
fi
impact on percentage representation, and a limited
will endeavour to comply with the UK Listing
Rules targets but notes that the circumstances of
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
experience. The Nomination Committee considered
a longlist that was 33% women, 5% candidates of
that was 25% women.
The following disclosures are provided in respect
of the UK 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
fifi
Statistics (ONS) criteria.
Governance report
Annual Report and Financial Statements 2025
62
As an externally managed investment company with
fifi
fi
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 2025, which shall be
used as the reference date for the disclosures in
accordance with the UK Listing Rules 6.6.6R(9), the
Board met the targets. There have been no changes
to Board membership between 30 April 2025 and
5.
Gender Number %
Senior
roles *
Men 4 57 1
Women 3 43 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 woman.
Ethnic background Number %
Senior
roles *
White 6 86 2
Asian/Asian British 1 14 –
Prefer not to say – – –
* The Board also considers Audit Committee Chair to be a senior role.
The 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
fi
Mr Karl Sternberg has been a Director since 2013
and he became Chairman in 2020. He has overseen
an active Board refreshment programme over this
period and remained in the role in order to manage an
orderly succession. He will retire at the conclusion of
the 2025 AGM and Randeep Grewal will succeed him
as Chairman.
Policy on Chairman’s Tenure
The Board considers that the tenure of the Chairman
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.
fi
these factors is essential for an effective Board. This,
at times, will naturally result in some longer serving
directors, including the Chairman. 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.
fi
on page 63 shows the attendance record for the
core Board and Committee meetings held during
the year. There were also a number of ancillary and
2025, in particular to consider Director recruitment
and the replacement of the National Australia Bank
revolving credit facility with a new three year Royal
Bank of Scotland International facility, which are not
included. The Annual General Meeting was attended
by all the Directors serving at that date, with the
exception of Professor Sir Nigel Shadbolt, who was
prevented from attending by an obligation to attend a
governmental forum on Technology in Singapore.
63
The Monks Investment Trust PLC
Directors’ attendance at meetings
Board
Audit
Committee
Management
Engagement
Committee
Nomination
Committee
Number of
meetings
4 4 1 1
DC Ballance* 1 0 1 1
CM Boyle 4 4 1 1
R Grewal 4 4 1 1
Johnson
4 4 1 1
BJ Richards 4 4 1 1
Professor
Sir Nigel Shadbolt
3 3 1 1
KS Sternberg 4 2
†
1 1
* Appointed effective 1 March 2025; 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
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
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 this appraisal, 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
evaluations externally facilitated every three years.
The Board appointed Lintstock to conduct its
externally facilitated review for 2025, rather than in
2024, as it considered that this external perspective
would represent greater value to both Board and
shareholders in the context of Chairman succession
management.
A review of the Chairman’s and other Directors’
commitments was carried out and the Board is
fifi
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
fi
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
on the Company’s page of the Managers’ website:
monksinvestmenttrust.co.uk.
Remuneration
As the Board considers all its members to be
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 70 to 73.
Governance report
Annual Report and Financial Statements 2025
64
Audit Committee
The report of the Audit Committee is set out on
pages 67 to 69.
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
fi
process for identifying, evaluating and managing
fi
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
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
fi
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
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.
fi
the year they also provide a mechanism to assess
these risks.
fi
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
fifi
under review and up to the date of this Report.
fi
fi
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
its AIFM.
The depositary’s responsibilities include cash
fi
instruments, verifying ownership and maintaining a
record of other assets and monitoring the Company’s
compliance with investment limits and leverage
fi
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
The AIFM has established a permanent risk
management function to ensure that effective risk
management policies and procedures are in place
65
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,
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
fi
These limits, including leverage (see page 116),
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
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
risk. An explanation of these risks and how they are
managed is contained on pages 39 to 43 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
tensions,
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
fi
the Board. Gearing levels and compliance with
borrowing covenants are reviewed by the Board on a
regular basis. As at 30 April 2025, the £100 million
RBSI facility had £50 million available commitment
undrawn. The Company has continued to comply
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
fi
fi
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 44,
which assesses the prospects of the Company
fi
continue in operational existence for the period to
31 July 2026, 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
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 125).
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
monksinvestmenttrust.co.uk.
Governance report
Annual Report and Financial Statements 2025
66
Corporate governance and stewardship
The Board has given discretionary voting powers
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
statement of compliance with the UK Stewardship
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
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.
party provider to map the carbon footprint of the
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
Based on the most recent analysis,
Index). This analysis estimate is based on 79%
which reports on carbon emissions and other
Weighted Average Carbon Intensity (WACI) by
Revenue. Based on reported and estimated Scope
3% of the
Company’s portfolio, carbon intensity was 22%
lower than the benchmark index at 30 April 2025.
Financial Disclosures (‘TCFD’) Climate Report
is available on the Managers’ website at
bailliegifford.comfi
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 117. The Managers
have also reviewed the UK FCA’s sustainability
regime (‘SDR’). The Managers consider that all
materials published in connection with the Company
do not currently
consider it appropriate for the Company to adopt a
label under the regime.
The Managers are signatories to the United Nations
Principles for Responsible Investment, the Carbon
Disclosure Project 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 2025
67
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
fi
fi
responsibilities of the Committee.
Claire Boyle is the Audit
Committee Chair.
The Audit Committee consists of David Ballance,
Claire Boyle, who is the Audit Committee Chair.
The members of the Committee consider that they
fi
fi
fi
within its written terms of reference which are
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 four times during the year,
with two of the meetings focussed on the review of
the Company’s private company valuations. Baillie
Gifford attended all meetings
Internal Audit and Compliance Departments and the
AIFM’s permanent risk function provided reports on
their monitoring programmes for the two meetings
focussed on governance and the approval of the
fiLLP attended
both of those meetings and held separate meetings
with the Audit Committee Chair in advance of both
Committee meetings. In addition, the external
auditor met with the Audit Committee Chair on an
Committee as they arose.
Audit
Committee report
Governance report
Annual Report and Financial Statements 2025
68
The matters considered, monitored and reviewed
by the Committee during the course of the year
included the following:
Interim Reports;
and the implementation of the Managers’ valuation
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;
control environment;
engagement of the external auditor;
auditor and effectiveness of the external audit
process;
audit function;
Managers and custodians; and
fi
concerns about possible improprieties in matters
fi
Internal audit
The Committee continues to believe that the
compliance and internal control systems and the
internal audit function in place within the Managers
fi
of internal control, which safeguards shareholders’
investment and the Company’s assets, is maintained.
fi
is therefore considered unnecessary.
Financial reporting
fi
issues likely to impact the Financial Statements are
the existence and valuation of investments, as they
represent 99.5% 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
5 was agreed to external price sources.
The Committee considered the Managers’ proposed
valuation of all unlisted and suspended investments
at 30 April 2025, which are determined using
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
fi
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
fi
years and its ability to continue as a going concern
for the period to 31 July 2026, together with reports
from the Managers on the cash position and cash
fl
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 44 and statement on going
concern on page 65. Following this assessment,
the Committee recommended to the Board the
appropriateness of the going concern basis in
fi
the accuracy of the Viability Statement and
statement on going concern.
69
The Monks Investment Trust PLC
fi
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 64 and 65.
fifi
year under review.
External auditor
fi
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
during the year to 30 April 2025 (2024 – nil).
To assess the effectiveness of the auditor and the
external audit process, the Committee reviewed
fi
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
Review Team (AQRT).
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
fi
with professional and regulatory standards in
order to protect independence and objectivity
and to provide fresh challenge to the business.
partner for the Company’s audit for the year ended
fi
is independent within the meaning of regulatory and
of the audit partner and staff is not impaired.
Having carried out the review described above,
fi
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
for the 2028 year end.
There are no contractual obligations restricting the
Committee’s choice of external auditor.
Regulatory compliance
fi
Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender
Processes and Audit Committee Responsibilities)
governance of tenders for the appointment of the
external auditor and the setting of policy on the
Accountability and audit
The respective responsibilities of the Directors
and the auditor in connection with the Financial
Statements are set out on pages 74 to 83.
On behalf of the Board
CM Boyle
Audit Committee Chair
1 July 2025
Governance report
Annual Report and Financial Statements 2025
70
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
2025 the Chairman’s fee should increase by £1,000
and Directors’ fees should increase by £1,000 per
annum with no change to the increments for the Audit
Committee Chair and Senior Independent Director.
The fee levels were last increased on 1 May 2024.
Directors’ remuneration policy
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
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
and experience. The Board believes that the fees paid
fl
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
71
The Monks Investment Trust PLC
fi
reimbursement of allowable expenses. There are
fi
Limits on Directors’ remuneration
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 2025 and the expected fees payable
in respect of the year ending 30 April 2026 are set out
in the table below. The fees payable to the Directors
fi
following an annual review of the Directors’ fees.
Expected fees
for the year
ending 30 April
2026
£
Fees for the
year ended
30 April
2025
£
Chairman’s fee 52,000 51,000
36,000 35,000
Additional fee for
Audit Committee Chair*
7,000 7,000
Additional fee for the Senior
Independent Director*
4,000 4,000
* The Audit Committee Chair performs additional responsibilities as
noted in the Audit Committee Report on pages 67 to 69. The Senior
Independent Director (‘SID’) performs additional responsibilities as noted
on page 61.
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.
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 77 to 83.
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 2025.
Name
Nature
of interest
Ordinary
shares held
at 30 April
2025
Ordinary
shares held
at 30 April
2024
DC Ballance n/a – –
CM Boyle n/a – –
RS Grewal fi 875 875
Johnson
fi 4,500 3,250
BJ Richards fi 13,288 13,205
Professor Sir
Nigel Shadbolt
fi 2,309 2,305
KS Sternberg fi 25,147 25,147
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, 99.7% were in favour, 0.2% were against
and votes withheld were 0.1%. 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 2025
72
Directors’ remuneration for the year (audited)
The Directors who served during the year received the following remuneration in the form of fees and
fi
Name
2025
Fees
£
2025
Taxable
fi*
£
2025
Total
£
2024
Fees
£
2024
Taxable
fi*
£
2024
Total
£
DC Ballance (appointed 1 March 2025) 5,833 – 5,833 – – –
CM Boyle (Audit Chair from
2024)
39,500 1,662 41,162 34,000 875 34,875
Dr D Chaya (resigned 31 January 2025)
†
26,250 – 26,250 34,000 523 34,523
RS Grewal (appointed 1 March 2024) 35,000 – 35,000 5,667 – 5,667
2024)
35,000 – 35,000 5,667 – 5,667
BJ Richards (SID from 1 December 2023) 39,000 – 39,000 35,192 282 35,474
Professor Sir Nigel Shadbolt 35,000 – 35,000 34,000 1,104 35,104
KS Sternberg (Chairman) 51,000 – 51,000 50,000 517 50,517
JJ Tigue (Audit Committee Chair, and SID
to 1 December 2023, retired 10 September
2024)
15,167 793 15,960 41,808 282 42,090
281,750 2,455 284,205 240,334 3,583 243,917
* fi
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
2024 to
2025
% from
2023 to
2024
% from
2022 to
2023
% from
2021 to
2022
% from
2020 to
2021
DC Ballance (appointed 1 March 2025) n/a n/a n/a n/a n/a
CM Boyle (appointed 1 May 2020, Audit Chair
from 10 September 2024)
16.2 * 4.6 4.8 3.3 n/a
Dr D Chaya (appointed 30 November 2022,
resigned 31 January 2025)
(22.8*) 148.8 * n/a n/a n/a
RS Grewal (appointed 1 March 2024) 517.6 * n/a n/a n/a n/a
517.6 * n/a n/a n/a n/a
BJ Richards (SID from 1 December 2023) 10.8 * 8.3 * 4.8 3.3 3.4
Professor Sir Nigel Shadbolt 2.9 4.6 4.8 3.3 3.4
KS Sternberg (Chairman from 1 September 2020) 2.0 5.3 3.3 1 7. 0 35.6 *
JJ Tigue (Audit Committee Chair, and SID to 1 December
2023, retired 10 September 2024)
(63.7*) 0.7 * 3.8 14.3 4.5
Total Directors’ fees paid by the Company in the year 17. 2 20.1 11.8 (13.1) 6.5
* fl
circumstances the movement in actual fees paid in the year will differ from the movement in annualised fees payable. Details are only shown for
fi
73
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
2025
£’000
2024
£’000
Change
%
Directors’ total remuneration 284 244 16.4
Dividends paid to shareholders 938 4,497 (79.1)
Shares bought back 321,104 172,887 85.7
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
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,
Performance graph
fi5)
Past performance is not a guide to future
performance.
Approval
The Directors’ Remuneration Report on pages 70
to 73 was approved by the Board of Directors and
signed on its behalf on 1 July 2025.
KS Sternberg
Chairman
Cumulative to 30 April
20252015 2017 2020 2022 20242016 20192018 2021 2023
●
Share price
Source:
LSEG/Baillie Gifford and relevant underlying index providers.
See disclaimer on page 116.
All figures are to
tal returns (see Glossary of terms and Alternative
Pe
rformance Measures on pages 120 to 123).
● FTSE All-Share
Index
● Comparative Index
(in sterling terms)
*
0
500
100
400
300
200
Governance report
Annual Report and Financial Statements 2025
74
fi
and explain the Company’s transactions and
disclose with reasonable accuracy at any time the
fi
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
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.
fi
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
fi
that they give a true and fair view of the state of
fi
the Company for that period.
In preparing these Financial Statements, the
them consistently;
are reasonable and prudent;
Accounting Standards have been followed, subject
to any material departures disclosed and explained
in the Financial Statements;
going concern, disclosing, as applicable, matters
related to going concern; and
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
75
The Monks Investment Trust PLC
fi
of approval of the Financial Statements and whose
names and functions are listed within the Directors
and Managersfi
their knowledge:
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
fi
of the Company;
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
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 2025
Financial
report
The Financial Statements for
5 set
77 to 106
prepared in accordance with
Standard applicable in the UK
77
The Monks Investment Trust PLC
Independent
auditor’s report
to the Members of The Monks Investment Trust PLC
Ethical Standard were not provided to the company
and we remain independent of company in
conducting the audit.
Conclusions relating to going concern
fi
concluded that the directors’ use of the going
concern basis of accounting in the preparation of the
fi
of the directors’ assessment of the company’s ability
to continue to adopt the going concern basis of
accounting included:
fi
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 2026 which is at least twelve
fi
were authorised for issue. The Company has
concluded that it is able to continue to meet its
ongoing costs as they fall due.
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
fi
Opinion
fi
Monks Investment Trust PLC (the ‘Company) for
the year ended 30 April 2025 which comprise the
Income Statement, Balance Sheet, Statement
the related notes 1 to 20, including the principal
fi
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).
fi
give a true and fair view of the company’s affairs
as at 30 April 2025 and of its loss for the year then
ended;
have been properly prepared in accordance with
United Kingdom Generally Accepted Accounting
Practice; and
have been prepared in accordance with the
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
fi
statements section of our report. We believe that the
fi
appropriate to provide a basis for our opinion.
Independence
We are independent of the company in accordance
fi
the FRC’s Ethical Standard as applied to public
fi
ethical responsibilities in accordance with these
Financial report
Annual Report and Financial Statements 2025
78
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
fi
fi
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
Stakeholders are increasingly interested in how
climate change will impact Company. The Company
fi
impacts from climate change on its operations
will be from how climate change could affect the
Company’s investments and overall investment
process. This is explained on page 40 in the principal
and emerging risks section, which form part of the
fi
statements. Our procedures on these unaudited
disclosures therefore consisted solely of considering
whether they are materially inconsistent with the
fi
the course of the audit or otherwise appear to be
materially misstated, in line with our responsibilities
on “Other information”.
Our audit effort in considering climate change
fi
in Note 1(a) and conclusion that there was no
further impact of climate change to be taken into
fl
each investment’s exposure to climate change risk.
Wealso challenged the Directors’ considerations of
climate change in their assessment of viability and
associated disclosures.
Considering the mitigating factors that are
within the control of the Company. We reviewed
investments held and evaluated the Company’s
ability to sell those investments in order to cover
fi
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
fi
events or conditions that, individually or collectively,
fi
to continue as a going concern for a period 31 July
2026, which is at least twelve months from the
fi
2025.
In relation to the company’s ’s reporting on how they
have applied the UK Corporate Governance Code,
we have nothing material to add or draw attention to
fi
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
fi
as revenue or capital in the Income
Statement
Materiality Overall materiality of £23.19m which
represents 1% of shareholder’s funds
79
The Monks Investment Trust PLC
Key audit matters
fi
fifi
fi
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
fi
these matters.
Risk Our response to the risk
Key observations
communicated to
Incorrect valuation or ownership of
the investment portfolio (as described
on page 68 in the Report of the Audit
Committee and as per the accounting
policy set out on page 90).
The valuation of the investment portfolio
at 30 April 2025 was £2,528.47m
(2024: £2,847.07m) consisting of
fair value of £2,447.98m (2024:
(including CVR and suspended
investments) with an aggregate fair
value of £80.49m (2024: £59.11m).
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
fi
the portfolio valuation and the return
generated for shareholders.
determined by reference to bid value or
the last traded price depending on the
convention of the exchange on which
fair value by the Directors following
a detailed review and appropriate
challenge of the valuations proposed
by the Baillie Gifford Fair Value Pricing
applies methodologies consistent with
Venture Capital Valuation guidelines
(“IPEV”) and FRS 102.
and the resultant impact on the
unrealised gains/(losses), is the area
fi
and estimation in the preparation of
fi
fi
highlighted below on page 83.
We performed the following procedures:
We obtained an understanding of Baillie Gifford’s processes
in which we evaluated the design and implementation of
controls.
market prices and exchange rates applied to an third party
pricing vendor and recalculated the investment valuations as at
portfolio to identify prices that have not changed near the year
end of the Company. .
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.
Assessing whether the valuations have been performed in
line with the valuation approaches as set out in UK GAAP
(‘IPEV’) guidelines and FRS 102.;
Assessing the appropriateness of the data inputs and
challenging the assumptions used to support the valuations;
Assessing other facts and circumstances, such as market
movement and comparative company information, that have
an impact on the fair market value of the investments; and
assessing whether managements valuation is reasonable.
fi
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
where appropriate.
We recalculated the unrealised gains/losses on investments as
We compared the Company’s investment holdings at 30 April
fi
Company’s Custodian or from the investee company.
The results of
our procedures
fi
misstatement in
relation to the risk of
incorrect valuation
or ownership of the
investment portfolio.
Financial report
Annual Report and Financial Statements 2025
80
Risk Our response to the risk
Key observations
communicated to
Incomplete or inaccurate revenue
fi
of special dividends as revenue or
capital items in the Income Statement
(per the Audit Committee report set out
on pages 67 to 69 and the accounting
policy set out on page 90).
The total revenue for the year to 30 April
2025 was £25.95m (2024: £29.89m).
The Company received special
dividends amounting to £6.3m (2024:
£1.07m), of which £0.47m (2024:
fi
£5.83fi
capital.
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.
exercise judgment in determining
whether income receivable in the form
fi
as ‘revenue’ or ‘capital’ in the Income
fi
area of fraud risk as highlighted below
on page 83.
We have performed the following procedures:
We obtained an understanding of Baillie Gifford’s processes
and controls surrounding revenue recognition including the
fi
procedures.
For all dividends, we recalculated the income by multiplying
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.
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 2025. We agreed the
dividend rate to corresponding announcements made by the
investee company, recalculated the dividend amount receivable
fi
on post year end bank statements.
fi
expected dividends for each investee company held during the year
have been recorded as income with reference to investee company
announcements obtained from an independent data vendor.
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 fi special
dividends, amounting to £6.30m, of which £0.47m (2024:
£1.07m)fi£5.83m (2024: nil) was
fi
For the one special dividend above our testing threshold, and a
sample of the six special dividends below our testing threshold,
we assessedfi
revenue and capital by reviewing the underlying rationale of the
distribution.
The results of
our procedures
fi
misstatement in
relation to the risk
of incomplete or
inaccurate revenue
recognition,
including incorrect
fi
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
fi
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
£23.19m (2024: £26.61m), which is 1% (2024: 1%)
of shareholders’ funds. We believe that shareholders’
funds provides us with 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% (2024: 75%) of our planning
materiality, namely £17.39m (2024: £19.96m). We have
set performance materiality at this percentage due to
our experience of working in prior years working with
the key service providers that indicates a lower risk of
misstatements, both corrected and uncorrected.
Given the importance of the distinction between
revenue and capital for investment trusts, we have
applied a separate testing threshold for the revenue
column of the Income Statement of £1.16m (2024:
£1.33m), being our reporting threshold.
81
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
fi
fi
fi
the strategic report and directors’ reports have
been prepared in accordance with applicable legal
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
fi
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
received from branches not visited by us; or
fi
Directors’ Remuneration Report to be audited are
not in agreement with the accounting records and
returns; or
certain disclosures of directors’ remuneration
fi
we have not received all the information and
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 £1.16m (2024: £1.33m), which is set at 5%
of planning materiality, as well as differences below
that threshold that, in our view, warranted reporting
We evaluate any uncorrected misstatements against
discussed above and in light of other relevant
Other information
The other information comprises the information
fi
statements and our auditor’s report thereon. The
directors are responsible for the other information
contained within the annual report.
fi
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
fi
the course of the audit or otherwise appears to be
materially misstated. If we identify such material
inconsistencies or apparent material misstatements,
fi
statements themselves. If, based on the work we
have performed, we conclude that there is a material
misstatement of the other information, we are
We have nothing to report in this regard.
Financial report
Annual Report and Financial Statements 2025
82
Corporate Governance Statement
We have reviewed the directors’ statement in relation
of the Corporate Governance Statement relating to
the company’s compliance with the provisions of the
fi
review by the UK 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
fi
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
fi65;
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 44;
Director’s statement on whether it has a
reasonable expectation that the group will be able
to continue in operation and meets its liabilities set
out on page 44;
Directors’ statement on fair, balanced and
understandable set out on page 75;
fi
robust assessment of the emerging and principal
risks set out on page 39;
The section of the annual report that describes the
review of effectiveness of risk management and
internal control systems set out on pages 64 and
65 and;
The section describing the work of the audit
committee set out on pages 67 to 69.
Responsibilities of Directors
As explained more fully in the directors’
responsibilities statement set out on pages 74 and
75, the Directors are responsible for the preparation
fifi
that they give a true and fair view, and for such
internal control as the directors determine is
fi
statements that are free from material misstatement,
fi
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
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
fi
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
fl
fi
83
The Monks Investment Trust PLC
Explanation as to what extent the audit
was considered capable of detecting
irregularities, including fraud
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
We obtained an understanding of the legal and
regulatory frameworks that are applicable to the
fi
are United Kingdom Generally Accepted
Accounting Practice, the Companies Act 2006,
the UK 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 through discussions with the Audit
Committee and Company Secretary and review of
Board minutes.
We assessed the susceptibility of the Company’s
fi
including how fraud might occur by considering
fi
fi
and the resulting impact on unrealised gains/
fi
respect to the incomplete or inaccurate revenue
fi
special dividends as revenue or capital items in
the Income Statement. 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
with such laws and regulations. Our procedures
involved review of the reporting to the Directors
with respect to the application of the documented
fi
statements to ensure compliance with the
A further description of our responsibilities for
fi
on the Financial Reporting Council’s website at
https://www.frc.org.uk/auditorsresponsibilities.
Other matters we are required to address
Following the recommendation from the audit
committee, we were appointed by the Company
fi
fi
The period of total uninterrupted engagement
including previous renewals and reappointments is
8 years, covering the years ending 30 April 2018
to 30 April 2025.
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
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)
Statutory Auditor
London
1 July 2025
Financial report
Annual Report and Financial Statements 2025
84
For the year ended 30 April
Notes
2025
Revenue
£’000
2025
Capital
£’000
2025
Total
£’000
2024
Revenue
£’000
2024
Capital
£’000
2024
Total
£’000
(Losses)/gains on investments 9 – (18,354) (18,354) – 389,428 389,428
Currency (losses)/gains 14 – (1,342) (1,342) – 1,419 1,419
Income 2 25,953 – 25,953 29,888 – 29,888
Investment management fee 3 (9,707) – (9,707) (9,431) – (9,431)
Other administrative expenses 4 (1,965) – (1,965) (1,850) – (1,850)
fi
and taxation
14,281 (19,696) (5,415) 18,607 390,847 409,454
Finance costs of borrowings 5 (8,546) – (8,546) (8,264) – (8,264)
Net return on ordinary activities
before taxation
5,735 (19,696) (13,961) 10,343 390,847 401,190
Tax on ordinary activities 6 (2,219) (575) (2,794) (2,102) (736) (2,838)
Net return on ordinary activities
after taxation
3,516 (20,271) (16,755) 8,241 390,111 398,352
Net return per ordinary share 7 1.75p (10.08p) (8.33p) 3.68p 174.07p 177.75p
Note:
Dividends per share paid and
payable in respect of the year 8 0.50p 2.10p
fi
All revenue and capital items in this Statement derive from continuing operations.
fi
The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.
Income
statement
The Monks Investment Trust PLC
85
Balance sheet
* The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.
As at 30 April As at 30 April
Notes
2025
£’000
2025
£’000
2024
£’000
2024
£’000
Fixed assets
fi 9 2,528,471 2,847,068
Current assets
Debtors 10 3,917 12,506
19 21,606 38,622
25,523 51,128
Creditors
Amounts falling due within one year
11 (60,925) (61,987)
Net current liabilities
(35,402) (10,859)
Total assets less current liabilities 2,493,069 2,836,209
Creditors
Amounts falling due after more than one year:
Loan notes 12 (173,415) (173,176)
Provision for tax liability 12 (748) (1,896)
(174,163) (175,072)
Net assets 2,318,906 2,661,137
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 1,791,234 2,132,609
Revenue reserve 14 72,599 73,455
Shareholders’ funds 15 2,318,906 2,661,137
Shareholders’ funds per ordinary share
15 1,235.9p 1,242.8p
The Financial Statements of The Monks Investment Trust PLC (Company registration number 236964) on
pages 84 to 106 were approved and authorised for issue by the Board and were signed on 1 July 2025.
KS Sternberg
Chairman
Financial report
Annual Report and Financial Statements 2025
86
The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.
For the year ended 30 April 2025
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 2024 12,659 433,714 8,700 2,132,609 73,455 2,661,137
Net return on ordinary activities
– – – (20,271) 3,516 (16,755)
Ordinary shares bought back 13 – – – (321,104) – (321,104)
Dividends paid during the year 8 – – – – (4,372) (4,372)
Shareholders’ funds at 30 April 2025 12,659 433,714 8,700 1,791,234 72,599 2,318,906
For the year ended 30 April 2024
Notes
Share
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
Statement of
changes in equity
The Monks Investment Trust PLC
87
The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.
For the year ended 30 April
Notes
2025
£’000
2025
£’000
2024
£’000
2024
£’000
fl
Net return on ordinary activities before taxation (13,961) 401,190
Adjustments to reconcile company profit before tax to net cash flow from operating activities
Net losses/(gains) on investments 18,354 (389,428)
Currency gains 1,342 (1,419)
Finance costs of borrowings 8,546 8,264
Other capital movements
(Increase)/decrease in accrued income (556) 1,586
Decrease/(increase) in debtors 664 (450)
(Increase)/decrease in creditors (402) 476
Taxation
Overseas tax incurred (3,865) (2,074)
Cash from operations* 10,122 18,145
Interest paid (7,448) (7,468)
fl 2,674 10,677
fl
(677,505) (467,866)
Disposals of investments 987,588 586,578
fl 310,083 118,712
flfi
8 (4,372) (7,208)
Ordinary shares bought back and stamp duty thereon 13 (324,293) (175,482)
Loan notes issued – 74,388
Borrowings drawn down 50,000 –
Borrowings repaid (50,000) (25,000)
flfi (328,665) (133,302)
Decrease in cash and cash equivalents (15,908) (3,913)
Exchange movements (1,108) 344
38,622 42,191
Cash and cash equivalents at 30 April 21,606 38,622
* Cash from operations includes dividends received of £24,140,000 (2024 – £29,805,000) and interest received of £1,257,000 (2024 – £1,669,000).
Cash flow
statement
Financial report
Annual Report and Financial Statements 2025
88
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 2025 have
been prepared in accordance with FRS 102 ‘The Financial
Reporting Standard applicable in the UK and Republic of
Ireland’ on the basis of the accounting policies set out below
which are unchanged from the prior year and have been
applied consistently. The updates to FRS 102, applicable
fiare
not fi
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,
fifi
fi
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
Taiwan tensions, 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
fi
5,
the £10RBSI facility had £50 million available
commitment still undrawn.
The Company has continued to comply with the
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
fi
fi
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
44, which assesses the prospects of the Company over
fi
in operational existence for the period to 31 July 2026,
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.
fl
and in accordance with guidance issued by the AIC,
fi
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 40. In line with FRS
102 investments are valued at fair value, being primarily
fl
participants’ view of climate change risk. Unlisted
investments, valued by reference to comparable
fl
participants’ view of climate change risk.
The Directors determine 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
89
b. Financial instruments
fi
fi
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
fi
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
Venture Capital Valuation (‘IPEV’) Guidelines 2022
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
fi
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
fi
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
growth patterns;
ii. the selection of a revenue metric (either historical or
forecast);
iii. the application of an appropriate discount factor to
fl
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).
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
103 to 105 to illustrate the effect on the
Financial Statements of an over or under estimation of
values is greater when methodologies are applied using
more subjective inputs.
Financial report
Annual Report and Financial Statements 2025
90
d. Investments
Purchases and sales
fi
fi
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
their transaction price excluding expenses incidental to
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,
fl
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
and Venture Capital Valuation Guidelines 2022 (‘IPEV’).
under IPEV are set out below and are followed by an
explanation of how they are applied to the Company’s
private company portfolio:
The nature of the private company portfolio currently
fl
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
consideration is given to the facts and circumstances
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,
assess the valuations particularly in those companies
fl
used where appropriate. An absence of relevant industry
peers may preclude the application of the Industry
observable prices may preclude the Available Market
for reasonableness by employing relevant alternative
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:
fi
e. Cash and cash equivalents
investments that are readily convertible to known
fi
f. Income
account on the date on which the investments are
distributions from Collective Investment Schemes, other
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.
fi
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
91
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 page95; or (ii) they relate directly to the
fi
Borrowings, which comprise interest bearing bank loans
and loan notes are recognised initially at the fair value of
the consideration received net of any issue expenses (the
fi
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
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
tax rates expected to apply when the timing differences
reverse, based on what has been enacted or substantively
fi
assets are recognised only to the extent that it is more
fi
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
fi
currencies are translated at the closing rates of exchange
at the Balance Sheet date. Any gain or loss arising from
transaction is included as an exchange gain or loss in the
Income Statement as capital or revenue as appropriate.
l. Share premium account
fi
over the nominal value; and
m. Capital redemption reserve
The nominal value of ordinary share capital repurchased
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
fi
amount of the weighted average purchase price of those
shares and transferred to the capital reserve.
o. Revenue reserve
fi
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,
no business segmental analysis is provided.
Financial report
Annual Report and Financial Statements 2025
92
02 Income
2025
£’000
2024
£’000
Income from investments
UK dividends 1,175 3,309
Overseas dividends 23,521 24,910
24,696 28,219
Other income
Deposit interest 1,257 1,669
Total income 25,953 29,888
Total income comprises:
fififi 24,696 28,219
fifi 1,257 1,669
25,953 29,888
Special dividend entitlements arising in the year amounted to £459,000 (2024 – £1,069,000).
03 Investment management fee
2025
£’000
2024
£’000
Investment management fee 9,707 9,431
Details of the Investment Management Agreement are disclosed on pages 54 and 55. The annual management fee payable
fi
fi
liabilities (other than any liability in the form of debt intended for investment purposes) and excludes the value of the Company’s
that vehicle will be rebated to the Company. All debt drawn down during the periods under review is intended for investment
purposes.
04 Other administrative expenses
2025
£’000
2024
£’000
Custody fees 347 313
Depositary fees 260 247
Registrar fees 38 47
General administrative expenses 510 477
Marketing expenses* 450 450
Directors’ fees (see Directors’ Remuneration Report on pages 70 to 73) 282 240
Auditor’s remuneration – statutory audit of annual Financial Statements
†
78 76
1,965 1,850
* 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
93
05 Finance costs of borrowings
2025
£’000
2024
£’000
Bank loans 3,865 5,080
Loan notes 4,681 3,184
8,546 8,264
06 Tax
2025
Revenue
£’000
2025
Capital
£’000
2025
Total
£’000
2024
Revenue
£’000
2024
Capital
£’000
2024
Total
£’000
Overseas taxation 2,219 – 2,219 2,102 – 2,102
Indian capital gains tax paid
and provided for
– 575 575 – 736 736
2,219 575 2,794 2,102 736 2,838
2025
£’000
2024
£’000
Factors affecting the tax charge for the year
The tax charge for the year is higher (2024 – lower) than the standard rate of
corporation tax in the UK of 25% (2024 – 25%). The differences are explained below:
Net return before taxation (13,961) 401,190
Net return before taxation multiplied by the average standard rate of corporation
tax in the UK of 25% (2024 – 25%)
(3,490) 100,298
Capital returns not taxable 4,588 (97,712)
Income not taxable (5,560) (6,950)
Taxable expenses in the year not utilised 4,504 4,364
Overseas tax 2,177 2,102
Revenue tax charge for the year 2,219 2,102
(Decrease)/increase in provision for tax liability in respect of Indian capital gains (1,148) 736
Payment of Indian tax in respect of sales of investments 1,723 –
Capital tax charge for the year 575 736
Total tax charge for the year 2,794 2,838
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 2025146,353,000
(2024 – £133,269,000). 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 2025
94
07 Net return per ordinary share
2025
Revenue
2025
Capital
2025
Total
2024
Revenue
2024
Capital
2024
Total
Net return after taxation 1.75p (10.08p) (8.33p) 3.68p 174.07p 177.75p
Revenue return per ordinary share is based on the net revenue return on ordinary activities after taxation of £3,516,000 (2024 –
£8,241,000) and on 201,138,932 (2024 – 224,114,021) ordinary shares, being the weighted average number of ordinary shares in
issue during the year.
Capital return per ordinary share is based on the net capital lossfi20,271,000 (2024 – gain of
£390,111,000) and on 201,138,932 (2024 – 224,114,021) ordinary shares, being the weighted average number of ordinary shares
in issue during the year.
There are no dilutive or potentially dilutive shares in issue.
08 Ordinary dividends
2025 2024
2025
£’000
2024
£’000
Amounts recognised as distributions in the year:
fi7 September 2024) 2.10p 3.15p 4,372 7,208
fi
dividend for the year is £3,516,000 (2024 – £8,241,000).
2025 2024
2025
£’000
2024
£’000
fi
fi6 September 2025) 0.50p 2.10p 938 4,497
09 Fixed assets – investments
As at 30 April 2025
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
2,379,564 68,420 – 2,447,984
Unlisted securities – – 80,487 80,487
fi 2,379,564 68,420 80,487 2,528,471
As at 30 April 2024
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
2,714,161 73,796 – 2,787,957
Unlisted securities – – 59,111 59,111
fi 2,714,161 73,796 59,111 2,847,068
fifi
Standard 102, the tables above provide an analysis of these investments based on the fair value hierarchy described below,
flfi
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
95
09 Fixed assets – investments (continued)
Fair value hierarchy
fi
fi
fi
Level 1
Level 2
data); and
Level 3 – using inputs that are unobservable (for which market data is unavailable).
pages 89 to 90. A sensitivity analysis
103 to 105.
2025
Listed
securities
£’000
2025
Unlisted
securities *
£’000
2025
Total
securities
£’000
2024
Total
securities
£’000
Cost of investments at start of year 1,784,555 58,551 1,843,106 1,913,829
Investment holding gains/(losses) at start of year 1,003,402 560 1,003,962 660,579
Value of investments at start of year 2,787,957 59,111 2,847,068 2,574,408
Movements in year:
Purchases at cost 678,941 – 678,941 463,039
Sales proceeds received (978,864) (320) (979,184) (579,807)
Gains/(losses) on investments (40,050) 21,696 (18,354) 389,428
Value of investments at end of year 2,447,984 80,487 2,528,471 2,847,068
Cost of investments at end of year 1,819,112 58,231 1,877,343 1,843,106
Investment holding gains at end of year 628,872 22,256 651,128 1,003,962
Value of investments at end of year 2,447,984 80,487 2,528,471 2,847,068
* Includes holdings in ordinary shares, preference shares and contingent value rights.
The Company received proceeds of £979,184,000 (2024 – £579,807,000) from investments sold during the year. The book cost of
these investments when they were purchased was £644,704,000 (2024 – £533,762,000). These investments have been revalued
over time and, until they were sold, any unrealised gains/losses were included in the fair value of the investments. Transaction costs
of £433,000 (2024 – £272,000) and £407,000 (2024 – £281,000) were suffered on purchases and sales respectively.
Financial report
Annual Report and Financial Statements 2025
96
09 Investments (continued)
2025
£’000
2024
£’000
Net gains/(losses) on investments
Realised gains/(losses) on sales 334,480 46,045
Changes in investment holding gains (352,834) 343,383
(18,354) 389,428
fi
which amount to 20% or more of the nominal value of any class of shares in an undertaking.
2025
Shares
held
2025
Value
£’000
2025
% of
shares held
2024
Shares
held
2024
Value
£’000
2024
% of
shares held
Silk Invest Africa Food Fund 10,000 2,438 42.6 10,000 2,452 42.6
10 Debtors
2025
£’000
2024
£’000
Amounts falling due within one year:
Accrued income 1,403 924
Investment sales awaiting settlement 1,345 9,749
Share issuance proceeds awaiting settlement – block listing fee prepaid 60 60
Overseas taxation recoverable 952 1,633
Other debtors and prepaid expenses 157 140
3,917 12,506
fifi
11 Creditors – amounts falling due within one year
2025
£’000
2024
£’000
Royal Bank of Scotland International Limited 50,000 –
National Australia Bank Limited loan – 50,000
Investment purchases awaiting settlement
4,704 3,268
Share buybacks awaiting settlement
733 3,922
Other creditors and accruals 5,488 4,797
60,925 61,987
fifi
£2,212,000 (2024 – £2,464,000) in respect of the investment management fee.
The Monks Investment Trust PLC
97
11 Creditors – amounts falling due within one year (continued)
Borrowing facilities
At 30 April 2025 the Company had a 3 year £10flRoyal Bank of Scotland
International Limited, which expires on 28 November 2027.
At 30 April 2025 drawings were as follows:
— The Royal Bank of Scotland International Limited: £50 million at an interest rate of 1.6% over SONIA, maturing in May 2025
(2024 – National Australia Bank Limited: £50 million at an interest rate of 1.4% over SONIA, maturing in October 2024).
The main covenants relating to the above loans are that total borrowings shall not exceed 30% of the Company’s adjusted net
asset value and the Company’s minimum adjusted net asset value shall be £650 million.
There were no breaches of loan covenants during the year to 30 April 2025 (2024 – none).
12 Creditors – amounts falling due after more than one year
Repayment
date
Nominal
rate
Effective
rate
2025
£’000
2024
£’000
£60 million 1.86% notes 2054 7/8/2054 1.86% 1.86% 59,910 59,907
£40 million 1.77% notes 2045 7/8/2045 1.77% 1.77% 39,958 39,956
12/12/2037 2.17% 2.17% 13,122 12,687
12/12/2035 4.55% 4.55% 15,319 15,370
12/12/2033 4.29% 4.29% 29,787 29,886
12/12/2030 4.30% 4.30% 15,319 15,370
173,415 173,176
Provision for liability in respect of Indian capital gains tax 748 1,896
174,163 175,072
Unsecured loan notes
The unsecured loan notes are stated at the cumulative amount of net proceeds after issue expenses. The cumulative effect is
132,000 (2024 – £137,000).
Provision for tax liability
The tax liability provision at 30 April 2025 of £748,000 (30 April 2024 – £1,896,000) relates to a potential liability for Indian capital
gains tax that may arise on the Company’s Indian investments should they be sold in the future, based on the net unrealised taxable
capital gains at the period end and on enacted Indian tax rates. The amount of any future tax amounts payable may differ from this
provision, depending on the value and timing of any future sales of such investments and future Indian tax rates.
13 Share capital
2025
Number
2025
£’000
2024
Number
2024
£’000
Allotted, called up and fully paid ordinary shares of 5p each 187,622,666 9,381 214,130,666 10,707
Treasury shares of 5p each 65,548,794 3,278 39,040,794 1,952
Total 253,171,460 12,659 253,171,460 12,659
sold for cash (at, or at a premium to, net asset value per ordinary share) or cancelled. In the year to 30 April 2025, 26,508,000
shares with a nominal value of £1,325,000 were bought back at a total cost of £319,669,000 to be held in treasury (2024 –
16,666,000 ordinary shares with a nominal value of £833,000 were bought back at a total cost of £172,887,000 and held in
5 65,548,794 (2024 – 39,040,794) shares
were held in treasury. At 30 April 2025 the Company had authority to buy back 12,871,293 ordinary shares and to allot or sell from
treasury 21,061,566
5 to 26 June 2025 the Company
bought back a further 2,647,000 shares with a nominal value of £132,000 at a total cost of £33,076,000 to be held in treasury.
5 68,195,794 shares were held in treasury and the Company had authority remaining to buy back a further
10,224,293 ordinary shares.
Financial report
Annual Report and Financial Statements 2025
98
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 2024 12,659 433,714 8,700 2,132,609 73,455 2,661,137
Gains on investments – – – (18,354) – (18,354)
Exchange differences on borrowings – – – (234) – (234)
Other exchange differences – – – (1,108) – (1,108)
Indian capital gains tax paid and
provided for
– – – (575) – (575)
Revenue return on ordinary activities
after taxation
– – – – 3,516 3,516
Ordinary shares bought back – – – (321,104) – (321,104)
Dividends paid in the year – – – – (4,372) (4,372)
At 30 April 2025 12,659 433,714 8,700 1,791,234 72,599 2,318,906
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
The capital reserve balance at 30 April 2025 includes investment holding gains on investments of £651,128,000 (2024 – gains of
£1,003,962,000) as detailed in note 9 on page 95. The revenue reserve is distributable by way of dividend.
The Monks Investment Trust PLC
99
15 Shareholders’ funds per ordinary share
2025 2024
Shareholders’ funds £2,318,906,000 £2,661,137,000
Number of ordinary shares in issue at the year end 187,622,666 214,130,666
Shareholders’ funds per ordinary share 1,235.9p 1,242.8p
fi
fi
value. Reconciliations between shareholders’ funds and both NAV measures are shown in the Glossary of terms and Alternative
Performance Measures on pages 120 to 123.
16 Analysis of change in net debt
At 1 May
2024
£’000
fl
£’000
Other
non-cash
changes
£’000
Exchange
movement
£’000
At 30 April
2025
£’000
38,622 (15,908) – (1,108) 21,606
Loans due within one year
(50,000) – – – (50,000)
Loan notes (173,176) – (5) (234) (173,415)
(184,554) (15,908) (5) (1,342) (201,809)
At 1 May
2023
£’000
fl
£’000
Other
non-cash
changes
£’000
Exchange
movement
£’000
At 30 April
2024
£’000
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)
17 Contingent liabilities, guarantees and financial commitments
At 30 April 2025 and 30 April 2024fi
18 Transactions with related parties and the Managers and Secretaries
The Directors’ fees and shareholdings are detailed in the Directors’ Remuneration Report on pages 70 to 73. No Director has
disclosure under section 412 of the Companies Act 2006.
Secretaries. Details of the terms of the Investment Management Agreement are set out on pages 54 and 55 and details of the
of a marketing programme which includes all the investment trusts managed by the Managers, details of which are shown in
Financial report
Annual Report and Financial Statements 2025
100
19 Financial instruments
fi
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
fi
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
Market risk
flfifl
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
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
fi
fi
Foreign currency borrowings can limit the Company’s exposure to anticipated future changes in exchange rates which might
otherwise adversely affect the value of the portfolio of investments.
Exposure to currency risk through asset allocation, which is calculated by reference to the currency in which the asset or liability
At 30 April 2025
Investments
£’000
Cash and
deposits
£’000
Loans and
loan notes
£’000
Other debtors
*
£’000
Net
exposure
£’000
US dollar 1,731,828 2,718 – (1,975) 1,732,571
Euro 219,761 – (60,425) 952 160,288
Japanese yen 126,008 790 (13,122) (303) 113,373
Other overseas currencies 367,363 778 – 322 368,785
Total exposure to currency risk 2,444,960 4,286 (73,547) (1,004) 2,374,695
Sterling 83,511 17,320 (149,868) (6,752) (55,789)
2,528,471 21,606 (223,415) (7,756) 2,318,906
* 104,000.
The Monks Investment Trust PLC
101
19 Financial instruments (continued)
Currency risk (continued)
At 30 April 2024
Investments
£’000
Cash and
deposits
£’000
Loans and
loan notes
£’000
Other debtors
*
£’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
* 93,000.
Currency risk sensitivity
At 30 April 2025, 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
Statement amounts. The analysis was performed on the same basis for 2024.
2025
£’000
2024
£’000
US dollar 86,629 96,979
Euro 8,014 8,436
Japanese yen 5,669 5,390
Other overseas currencies 18,423 21,105
118,735 131,910
Interest rate risk
Interest rate movements may affect directly:
• fi
• the level of income receivable on cash deposits;
fi
• the interest payable on any variable rate borrowings which the Company may take out.
fi
fl
are taken into account when making investment decisions and when entering borrowing agreements. The Board reviews on a
fifl
fi
amount of such borrowings and the approved levels are monitored and reviewed regularly by the Board.
fi
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 report
Annual Report and Financial Statements 2025
102
19 Financial instruments (continued)
Financial assets
fi5 amounted to £21,606,000 (2024 –
£38,622,000), 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
fifi
flfi
fi
2025
£’000
2024
£’000
Floating rate – sterling 50,000 50,000
Fixed rate – sterling 99,868 99,863
Fixed rate – euro 60,425 60,626
Fixed rate – yen 13,122 12,687
223,415 223,176
fi
2025
Within
1 year
£’000
2025
Between 1
and 5 years
£’000
2025
More than
5 years
£’000
2024
Within
1 year
£’000
2024
Between 1
and 5 years
£’000
2024
More than
5 years
£’000
Repayment of loans
and loan notes
50,000 – 173,415 50,000 – 173,176
Interest on loans
and loan notes
6,378 18,969 50,546 6,499 18,967 57,070
56,378 18,969 223,961 56,499 18,967 230,246
Interest rate risk sensitivity
An increase of 100 basis points in interest ratesfi5 would have
decreased net assets and total return on ordinary activities by £210,000 (2024 – £24fl
liabilities. A decrease of 100 basis points would have increased net assets and total return on ordinary activities by £210,000
(202420fl
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.
The Monks Investment Trust PLC
103
19 Financial instruments (continued)
Other price risk sensitivity
A full list of the Company’s investments is shown on pages 24 to 27. 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.
102.64 – 104.8
valuations at 30 April 2025 would have increased total assets and total return on ordinary activities by £244,798,000
(2024278,796
3.5% (2024 – 2.2%) of the Company’s net assets are invested in private company investments. The fair valuation of the private
fl89).
A sensitivity analysis is provided below which recognises that the valuation methodologies employed involve subjectivity in their
fi The table also provides the range of
values for the key unobservable inputs. It should be noted that £32,007,000 (2024 – £22,800,000) of the private company value
is attributed to companies operating in China, where unfavourable government intervention could adversely affect the realisable
fl
As at
30 April 2025 fi*
Valuation
Technique
Fair value of
investments
£’000
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Weighted
average
range
Sensitivity
%
Sensitivity to changes in
fi
inputs
Market
approach using
comparable
traded multiples
47,501 EV / LTM revenue
multiple
a,b,c,d 1.97 –
6.32x
3.5x 10% If EV/LTM multiples
fair value would change
by £3,042,913 and
EV / NTM
revenue multiple
a,b,c,d 5.07x n/a 10% If EV/NTM multiples
fair value would change by
EV / Earnings
multiple
a,b,c,d 12.33x n/a 10% If EV/Earnings multiples
fair value would change by
Transaction
implied premium
and discounts
g (8.72%) n/a 10%
applied to the calculated
premiums and discounts,
the fair value would
e (10%) (10%) 10%
fair value would change by
Sum of the
parts
^
2,438 Selection of
comparable
companies and
relevant indices
a,b,c,d 7.2 –
19.3x
12.6x 10% If the performance of the
underlying investment
and selected benchmark
performance changed by
£243,758
Recent
transaction
price
^^
30,491 n/a a,b n/a n/a 10% If the recent transaction
10%, the fair value would
change by £2,992,920
* fi104 and 105.
†
See explanation for other unobservable inputs on pages 104 and 105 (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 105 section ‘c’.
^
A ‘sum of the parts’ valuation approach is used for holding company investments with several underlying businesses. Each individual business
fi
unobservable inputs in the above table. However, the transaction price itself is observable.
Financial report
Annual Report and Financial Statements 2025
104
19 Financial instruments (continued)
Other price risk sensitivity (continued)
As at
30 April 2024 fi*
Valuation
approach
Fair value of
investments
£’000**
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Weighted
average
range
Sensitivity
%
Sensitivity to
fi
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
change by £1,634,694
e 10%
the fair value would
change by £230,018
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
the fair value would
change by £217,366 and
Sum of the parts
^
2,452
EV/LTM revenue
multiple
#
a,b,c,d 7.1 –
19.8x
11.8x 10% If the performance
of the underlying
investment and selected
benchmark performance
fair value would change
Recent
transaction price
33,527 n/a a,b n/a n/a 10% If the recent transaction
price changed by
value would change
by £3,293,852 and
* fi104 and 105.
†
See explanation for other unobservable inputs on pages 104 and 105 (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 105 section ‘c’.
^
A ‘sum of the parts’ valuation approach is used for holding company investments with several underlying businesses. Each individual business
fi
flfi
multiple approaches.
* fi
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
89.
a. Application of valuation basis
Each investment is assessed independently, and the valuation basis applied will vary depending on the circumstances of each
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
fi
fl
appropriate forecasts are available.
The Monks Investment Trust PLC
105
19 Financial instruments (continued)
fi
b. Probability estimation of liquidation events
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
fi
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
fi
d. Estimated sustainable earnings
fi
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
fi
fl
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
fl
substantial companies with some secondary market activity.
h. Execution risk
fi
may well still be negotiated which could impact the expected issue price. In valuing in line with an expected transaction the
Liquidity risk
fifi
fi
fipages 96 and 97.
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:
Financial report
Annual Report and Financial Statements 2025
106
19 Financial instruments (continued)
Credit risk (continued)
fi
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
fi
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
fi
Credit risk exposure
The amount that best represents the Company’s maximum exposure to direct credit risk at 30 April was:
2025
£’000
2024
£’000
21,606 38,622
Debtors 3,917 12,506
25,523 51,128
fi
fifi
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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.
2025
Par
value
£’000
2025
Book
value
£’000
2025
Fair
value
£’000
2024
Par
value
£’000
2024
Book
value
£’000
2024
Fair
value
£’000
Bank loans due within one year 50,000 50,000 50,000 50,000 50,000 50,000
Notes 1.86% 2054 60,000 59,910 25,539 60,000 59,907 28,271
Notes 1.77% 2045 40,000 39,958 19,658 40,000 39,956 21,607
Notes 2.17% 2037 13,122 13,122 12,353 12,687 12,687 12,747
Notes 4.55% 2035 15,319 15,319 15,356 15,370 15,370 15,430
Notes 4.29% 2033 29,787 29,787 29,975 29,886 29,886 29,862
Notes 4.30% 2030 15,319 15,319 15,563 15,370 15,370 15,293
223,547 223,415 168,444 223,313 223,176 173,210
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 37 and 38. 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 39 to 43.
The Company has the ability to issue and buy back its shares, and sell shares from treasury (see pages 56 and 57) and any
changes to the share capital during the year are set out in note 13.
which are detailed in notes 11 and 12.
Shareholder
information
Shareholder information
Annual Report and Financial Statements 2025
108
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 9 September
2025fi
venue by scanning the QR code above.
fl
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.
3.
Baillie Gifford may record your call.
The Monks Investment Trust PLC
109
sixth 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 9 September
2025, at 11.30am for the following purposes:
fi
resolutions as ordinary resolutions:
01. To receive and adopt the Financial Statements
of the Company for the year ended 30 April
2025 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 2025.
fi0.50p per ordinary
share.
Ms CM Boyle as a Director.
Director.
Mr RS Grewal as a Director.
as
09. To elect Mr DC Ballance as a Director.
10
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conclusion of the next Annual General Meeting
at which the Financial Statements are laid
before the Company.
11. To authorise the Directors to determine the
remuneration of the Independent Auditor.
12. 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 £924,878.33 (representing 10%
of the Company’s total issued share capital
as at 26 June 2025), 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,
the expiry of this authority make an offer or
enter into an agreement which would or might
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.
fi13,
14 and 15 as special resolutions:
13. That, subject to the passing of resolution 12
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
560(1) of the Act) for cash either pursuant to the
authority given by resolution 12 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
securities in pursuance of any such offer or
agreement as if the power conferred hereby
had not expired; and
securities or the sale of treasury shares up to
an aggregate nominal value of £924,878.33,
being approximately 10% of the nominal value
of the issued share capital of the Company as
at 26 June 2025.
Shareholder information
Annual Report and Financial Statements 2025
110
14. 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 27,727,852, 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
fi
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 2026, 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.
15. That the Articles of Association produced to
the meeting and signed by the chairman of
fi
be approved and adopted as the Articles of
Association of the Company in substitution for,
and to the exclusion of, the existing Articles of
Association with effect from the conclusion of
the meeting.
By order of the Board
Company Secretary
1 July 2025
The Monks Investment Trust PLC
111
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
fi
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
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
fi
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
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
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
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
fi
Securities Regulations 2001.
07. The return of a completed proxy form or
fi
Securities Regulations 2001 and section 311 of
fi
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
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 2025
112
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,
fi
out in note 14 below may, subject to certain
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
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
member, clearly identifying the resolution which
is being supported; (iii) must be authenticated
by the person or persons making it; and (iv)
28 July 2025.
12. Under section 338A of the Companies Act
fi
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
by the Company not later than 28 July 2025.
The conditions are that the matter of business
must not be defamatory of any person, frivolous
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
accompanied by a statement setting out the
this should write to the Company providing their
full name and address.
13. Under section 527 of the Companies Act 2006,
fi
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.
state your full name and address.
14. In order to be able to exercise the members’
at least 5% of the total voting rights of all
the members who have a right to vote on the
least 100 members who have a right to vote on
hold shares in the Company on which there has
been paid up an average sum, per member, of
permitted under section 338 (see note 11) should
be sent to enquiries@bailliegifford.com.
The Monks Investment Trust PLC
113
15. Information regarding the Annual General
by section 311A of the Companies Act
monksinvestmenttrust.co.uk.
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 2025 (being the last practicable
date prior to the publication of this notice) the
Company’s issued share capital consisted of
184,975,666 ordinary shares, carrying one
5 were
184,975,666 votes. Voting on the resolutions
fi
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
20. No Director has a contract of service with
21. A copy of the proposed new articles of
association, which includes the full terms of
the proposed amendments to the Company’s
existing articles of association, is available at the
fi
Place, London EC3A 6AB between the hours of
public holidays excepted) and on the Company’s
website, monksinvestmenttrust.co.uk from the
date the annual report is posted to shareholders
until the close of the Annual General Meeting.
The New Articles will also be available for
inspection at the venue of the Annual General
Meeting from 15 minutes before and during the
meeting and on the National Storage Mechanism
located at https://data.fca.org.uk/#/nsm/
nationalstoragemechanism, from the date the
annual report is posted to shareholders.
Shareholder information
Annual Report and Financial Statements 2025
114
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.
fi
Friars in the City of London, hence the names.
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
Monks is an investment trust. Investment
trusts offer investors the following:
fi
managers; and
fi
investors are still liable for capital gains tax on
fi
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
a number of companies offering real time online
fi
monksinvestmenttrust.co.uk.
Further shareholder
information
Sources of further information on
fi
websites. Company factsheets are also available on
the Company’s website and are updated monthly.
fi
ISIN GB0030517261
Sedol 3051726
Ticker MNKS
fi
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 2025
AGM is being held in early September. Dividends will
fi
the Company’s AGM.
Capital Gains Tax
For Capital Gains Tax indexation purposes, the
market value of an ordinary share in the Company
fi
share split in July 2001) was 14.1p.
The Monks Investment Trust PLC
115
Share register enquiries
Computershare Investor Services PLC maintains
the share register on behalf of the Company. In the
own name, please contact the registrars on 0370
707 1170. This helpline also offers an automated
days a week) which allows you to:
fi
fi
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:
price of your shares;
shareholding;
Company, including the Annual Report, in
electronic format;
details; and
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
fi
Dividend reinvestment plan
Computershare operate a Dividend reinvestment
plan which can be used to buy additional shares
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.
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
2025
Number of
shares held
2025
%
2024
Number of
shares held
2024
%
Institutions 24,592,182 13.1 31,548,588 14.7
Intermediaries 153,010,658 81.6 171,037,138 79.9
Individuals 8,797,473 4.7 9,810,247 4.6
Marketmakers 1,222,353 0.6 1,734,693 0.8
187,622,666 100.0 214,130,666 100.0
Shareholder information
Annual Report and Financial Statements 2025
116
Automatic exchange
of information
fi
legislation relating to the automatic exchange of
and report certain information about certain
shareholders.
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
fi
Shareholders, excluding those whose shares are
held in CREST, who come on to the share register
fi
collecting this information.
For further information, please see HMRC’s
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
investors. In accordance with the Regulations, the
AIFM remuneration policy is available at bailliegifford.
125).
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 120 to 123) at 30 April 2025 are
as follows:
Leverage
Gross method
Commitment
method
Maximum limit 2.50:1 2.00:1
Actual 1.09:1 1.10:1
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
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’).
5. 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
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or data contained in this communication.
No further distribution of data from the LSE Group
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does not promote, sponsor or endorse the content
The Monks Investment Trust PLC
117
Sustainable Finance Disclosure
Regulation (‘SFDR’)
The EU Sustainable Finance Disclosure Regulation
(‘SFDR’) does not have a direct impact in the UK
products marketed in the EU. As The Monks
Investment Trust PLC is marketed in the EU by the
Private Placement Regime (‘NPPR’) the following
disclosures have been provided to comply with the
stewardship principles and guidelines as its policy
decisions.
fi
approach to business is fundamentally out of line
fi
‘sustainability’ as a deliberately broad concept which
encapsulates a company’s purpose, values, business
model, culture, and operating practices.
businesses that enjoy sustainable competitive
advantages in their marketplace. To do this it looks
fi
prospects. This includes the consideration of
sustainability factors (environmental, social and/or
governance matters) which it believes will positively
flfi
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
fi
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 2025
118
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
Monks on the web
on the Company’s page of the Managers’ website at
monksinvestmenttrust.co.uk fi
on Monks, including recent portfolio information and
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Client relations team contact details
You can contact the Baillie Gifford Client Relations
Team by telephone, email or post:
Telephone: 0800 917 2113
Your call may be recorded for training or monitoring
purposes.
Email: enquiries@bailliegifford.com
Website: bailliegifford.com
Address:
Baillie Gifford Client Relations Team
1 Greenside Row
Edinburgh EH1 3AN
Please note that Baillie Gifford is not permitted
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please ask an authorised intermediary.
The Monks Investment Trust PLC
119
Monks’ musings:
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Investing in adaptable businesses
and those relatively impervious to
new trade restrictions.
Alnylam:
Stock Story
Richie Vernon explores the
revolutionary drugs transforming
patient lives.
Atlas Copco:
Stock Story
Ben Drury explores how a culture
of innovation and decentralisation
drives success in industrial
technology.
Insights
Shareholder information
Annual Report and Financial Statements 2025
120
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Total assets
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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
fiassets, comprising current assets less current liabilities
(excluding borrowings) and provisions.
Active share (APM)
Active share, a measure of how actively a portfolio is managed, is the percentage of the portfolio that differs
from its comparative index. It is calculated by deducting from 100 the percentage of the portfolio that
overlaps with the comparative index. An active share of 100 indicates no overlap with the index and an
active share of zero indicates a portfolio that tracks the index.
Unlisted, unquoted and private company investments
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
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the number of ordinary shares in issue.
Glossary of terms and Alternative
Performance Measures (‘APM’)
The Monks Investment Trust PLC
121
Net Asset Value (borrowings at par value) (APM)
Borrowings are valued at nominal par value. A reconciliation from shareholders’ funds (borrowings at book
value) to net asset value after deducting borrowings at par value is provided below.
2025
£’000
2025
per share
2024
£’000
2024
per share
Shareholders’ funds (borrowings at book value) 2,318,906 1,235.9p 2,661,137 1,242.8p
Add: book value of borrowings 223,415 119.1p 223,176 104.2p
Less: par value of borrowings (223,547) (119.1p) (223,313) (104.3p)
Net asset value (borrowings at par value) 2,318,774 1,235.9p 2,661,000 1,242.7p
fi187,622,666 (2024 – 214,130,666) ordinary shares of 5p, being the number of ordinary shares in issue at the
year end excluding treasury shares.
Net Asset Value (borrowings at fair value) (APM)
Borrowings are valued at an estimate of market worth. The fair values of the loan notes are calculated using
a comparable debt approach, by reference to a basket of corporate debt. The fair value of the Company’s
A reconciliation from shareholders’ funds (borrowings at book value) to net asset value after deducting
borrowings at fair value is provided below.
2025
£’000
2025
per share
2024
£’000
2024
per share
Shareholders’ funds (borrowings at book value) 2,318,906 1,235.9p 2,661,137 1,242.8p
Add: book value of borrowings 223,415 119.1p 223,176 104.2p
Less: fair value of borrowings (168,444) (89.8p) (173,210) (80.9p)
Net asset value (borrowings at fair value) 2,373,877 1,265.2p 2,711,103 1,266.1p
fi187,622,666 (2024 – 214,130,666) ordinary shares of 5p, being the number of ordinary shares in issue at the
period end excluding treasury shares.
Discount/premium (APM)
As stock markets and share prices vary, an investment trust’s share price is rarely the same as its NAV. When
the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount
is calculated by subtracting the NAV per share from the share price and is usually expressed as a percentage
of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium.
2025 2024
Closing NAV per share (borrowings at par) a 1,235.9p 1,242.7p
Closing NAV per share (borrowings at fair value) b 1,265.2p 1,266.1p
Closing share price c 1,138.0p 1,158.0p
Discount to NAV with borrowings at par (7.9%) (6.8%)
Discount to NAV with borrowings at fair value (10.1%) (8.5%)
Shareholder information
Annual Report and Financial Statements 2025
122
Total return (APM)
The total return is the return to shareholders after reinvesting the dividend on the date that the share price
2025
NAV
(par)
2025
NAV
(fair)
2025
Share
price
2024
NAV
(par)
2024
NAV
(fair)
2024
Share
price
Closing NAV per share/share price a 1,235.9p 1,265.2p 1,138.0p 1,242.7p 1,266.1p 1,158.0p
Dividend adjustment factor* b 1.0017 1.0017 1.0019 1.0028 1.0028 1.0031
Adjusted closing NAV per share/share price c = a x b 1,238.0p 1,267.3p 1,140.1p 1,246.2p 1,269.6p 1,161.6p
Opening NAV per share/share price d 1,242.7p 1,266.1p 1,158.0p 1,058.5p 1,080.0p 975.0p
Total return (0.4%) 0.1% (1.5%) 17.7% 17.6% 19.1%
* The dividend adjustment factor is calculated on the assumption that the dividend of 2.10p (2024 – 3.15p) paid by the Company during the year was
Ongoing charges (APM)
The total expenses (excluding dealing and borrowing costs) incurred by the Company as a percentage of the
daily average net asset value (with borrowings at fair value), as detailed below.
2025 2024
Investment management fee £9,707,000 £9,431,000
Other administrative expenses £1,965,000 £1,850,000
Total expenses a £11,672,000 £11,281,000
Average net asset value (with borrowings deducted at fair value) b £2,700,317,000 £2,589,210,000
Ongoing charges 0.43% 0.44%
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other public company, an investment trust can borrow
money to invest in additional investments for its portfolio. The effect of the borrowing on the shareholders’
assets is called ‘gearing’. If the Company’s assets grow, the shareholders’ assets grow proportionately more
because the debt remains the same. But if the value of the Company’s assets falls, the situation is reversed.
Gearing can therefore enhance performance in rising markets but can adversely impact performance
in falling markets. The level of gearing can be adjusted through the use of derivatives which affect the
sensitivity of the value of the portfolio to changes in the level of markets. The gearing ratios described below
are included in the Ten year record on page 34.
Gross gearing, also referred to as potential gearing, is the Company’s borrowings expressed as a
fi
*
fi
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.
The Monks Investment Trust PLC
123
2025 2024
Borrowings (at book cost) a £223,415,000 £223,176,000
(£21,606,000) (£38,622,000)
(£1,345,000) (£9,749,000)
£4,704,000 £7,086,000
Adjusted borrowings b £205,168,000 £181,891,000
Shareholders’ funds c £2,318,906,000 £2,661,137,000
Gross (potential) gearing 9.6% 8.4%
Net (equity) gearing 8.9% 6.8%
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers (AIFM) Regulations leverage is any method
which increases the Company’s exposure, including the borrowing of cash and the use of derivatives. It is
expressed as a ratio between the Company’s exposure and its net asset value and can be calculated on a
gross and a commitment method. Under the gross method, exposure represents the sum of the Company’s
positions after the deduction of sterling cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the deduction of sterling cash
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at 30 April 2025 are detailed on page 116.
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
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the probability of the milestones being met within the time frames in the CVR agreement.
Attribution
Attribution is the analysis of the effect of investment management decisions on the performance of
portfolio. Attribution can be conducted at different levels depending on the product, these includes region,
country, sector and stock analysis. Attribution can be relative to an index or absolute.
Shareholder information
Annual Report and Financial Statements 2025
124
The Monks Investment Trust PLC
125
Company
information
Directors
Chairman: KS Sternberg
DC Ballance
CM Boyle
RS Grewal
BJ Richards
Professor Sir Nigel Shadbolt
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
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
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Baillie Gifford & Co
3 St Helen’s Place
London
EC3A 6AB
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
fi
213800MRI1JTUKG5AF64
Further information
Baillie Gifford
Client Relations Team
1 Greenside Row
Edinburgh
EH1 3AN
T: +44 (0)800 917 2113
enquiries@bailliegifford.com
monksinvestmenttrust.co.uk
Telephone +44 (0)131 275 2000