## THE MONKS
## INVESTMENT TRUST PLC
## Global growth from
## different perspectives
## Annual Report and Financial Statements
## 30 April 2023
### Global growth from different perspectives
### The Monks Investment Trust aims to deliver above average
### long-term returns for shareholders by keeping fees and
### costs low and harnessing the long-term growth potential
### of companies.
### Contents

| 1 Financial Highlights | Financial Report |
| --- | --- |
| Strategic Report | 38 Independent Auditor’s Report |
| 2 Chairman’s Statement | 44 Income Statement |
| 4 Managers’ Report | 45 Balance Sheet |
| 7 The Managers’ Core Investment Beliefs | 46 Statement of Changes in Equity |
| 8 Investment Portfolio by Growth Category | 47 Cash Flow Statement |
| 10 Portfolio Positioning | 48 Notes to the Financial Statements |
| 11 List of Investments | Shareholder Information |
| 14 Baillie Gifford’s Approach to Valuing | 66 Notice of Annual General Meeting |

Private Companies
68 Further Shareholder Information
15 One Year Summary
68 Analysis of Shareholders
16 Five Year Summary
70 Automatic Exchange of Information
17 Ten Year Summary
70 Alternative Investment Fund

| 18 Business Review |  | Managers Regulations |
| --- | --- | --- |
| Governance Report | 70 Sustainable Finance Disclosure Regulation |  |
| 23 Directors and Management | 71 Communicating with Shareholders |  |
| 25 Directors’ Report | 71 Third Party Data Provider Disclaimer |  |
| 28 Corporate Governance Report | 72 Glossary of Terms and Alternative |  |

Performance Measures
33 Audit Committee Report
35 Directors’ Remuneration Report
37 Statement of Directors’ Responsibilities
### Investor Disclosure Document
The UK Alternative Investment Fund Managers Regulations require certain information to be
made available to investors prior to their investment in the Company. The Company’s Investor
Disclosure Document is available for viewing at monksinvestmenttrust.co.uk.
Notes
None of the views expressed in this document should be construed as advice to buy or sell a particular
investment.
Investment trusts are UK public listed companies and as such comply with the requirements of the Financial
Conduct Authority. They are not authorised or regulated by the Financial Conduct Authority (FCA).
Monks currently conducts its affairs, and intends to continue to conduct its affairs, so that the Company’s
Ordinary Shares can qualify to be considered as a mainstream investment product and can be recommended
by Independent Financial Advisers to ordinary retail investors in accordance with the rules of the FCA in
relation to non-mainstream investment products.
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.
If you are in any doubt as to the action you should take you should consult your stockbroker, bank manager,

Markets Act 2000 immediately if you are in the United Kingdom or, if not, from another appropriately

If you have sold or otherwise transferred all of your ordinary shares in The Monks Investment Trust PLC, please
forward this document, together with accompanying documents, but not your personalised Form of Proxy,
as soon as possible to the purchaser or transferee or to the stockbroker, bank or other agent through whom
the sale or transfer was or is being effected for delivery to the purchaser or transferee.
Financial Highlights
### Financial Highlights – Year to 30 April 2023

|  | * |  | * |  | * |  | * † |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Share Price | (7.0%) NAV |  | (2.6%) | NAV | (1.6%) | Benchmark | 3.2% |
|  |  | (borrowings at par) |  | (borrowings at |  |  |  |

fair value)
*

Share Price (pence)
Share price
900
800
A A S O N DJ FMJ J M A
2022 2023
NAV and Benchmark



(after deducting
100
borrowings at fair value # )
 † total return
95
90
A A S O N DJ FMJ J M
2022 2023
#
Discount (4)
Discount (after deducting
borrowings at fair value # ) (6)
plotted as at month end
dates
(8)
(10)
(12)
A A S O N DJ FMJ J M A
2022 2023

† 
# 
1200 110
1100 105
1000
Past performance is not a guide to future performance.
The Monks Investment Trust PLC 01
A
Strategic Report
### Chairman’s Statement
Performance Unlisted Exposure
 
 
 
 
 
 
 **. 
 *. 
 
 
 
the valuations of the small number of investments we hold
Share Capital



we were pleased to issue new shares to former shareholders of
believe that unquoted companies offer us the means to gain



 Management Expenses
 
 enhance returns to shareholders. The total ongoing charges ratio
 
 
estimated reduction to the ongoing charges ratio of two basis 
 as asset growth recovers.

Earnings and Dividend







maintain investment trust status. Retained earnings are reinvested
shares in the open market. Having issued shares when Monks










 Governance and Sustainability








individual businesses face is critical as the Manager seeks to
Borrowings and Gearing




supports the portfolio managers in their engagement with











Monks Stewardship Report




* 


Past performance is not a guide to future performance.
02
Strategic Report
The Board Annual General Meeting
 
 
 
considered recent and anticipated developments in the commercial 
 
 
 
 
 
and unquoted investment. 
at monksinvestmenttrust.co.uk

the meeting will be posted. Market announcements will also be



that there is an equal need to manage succession so as to ensure 
adequate handover periods and retention of the corporate 
 trustenquiries@bailliegifford.com or
 


KS Sternberg

Chairman





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of the importance of valuation discipline. The aggressive period of
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
attractive growth companies with sustainable business models.
The Monks Investment Trust PLC 03
Strategic Report
### Managers’ Report
An environment for growth 
 
than in the preceding decade and the operating environment is 
 
 
 
 
 
 
 This has been the case where:

 
stronger aggregate balance sheets than the broader market




  
 
to outcompete their peers over time and entrench their 
competitive positions.
 
 
 
 
 
 

There have been companies in the portfolio for which strong

operational performance has been rewarded in share price terms.






potential to drive positive returns for investors over the long term.
has been taking positive steps in broadening the application of its

Performance

The current team has managed The Monks Investment Trust for


 **) compared to the
 *.







companies. This precipitated a sharp contraction in valuations






 The market for Alnylam’s gene silencing treatment is expanding


*


Past performance is not a guide to future performance.
04
Strategic Report
— Infrastructure Upgrade
to be rebuilt and rewired to cope with more people and a














— New Growth Frontiers – if the growth engines of the past


Floor and Décor has been driving growth by 
expanding across the US





Positioning and optimism

 
 
 concerns about falling enrolment numbers and the risk posed
and decisive moves on our part to sell holdings where operational 
 
 
 
 
 
 




to capture this. Our latest Research Agenda outlines areas of


— Increased Return from Patience – during periods of fear and














The ongoing maintenance and upgrades of existing swimming

pools forms an important part of Pool Corp’s business model
The Monks Investment Trust PLC 05
Strategic Report
— Supply Side Importance Outlook
 
 broadening and the prospects for growth companies are as
 compelling as ever. The operating environment for companies
 
 
 
 
 
 invest in companies that grow their earnings over long periods –
 
 look across the growth spectrum and around the world for ideas.
a preferred partner has been elevated as rates have increased. 

Independent Investment Trust




the greatest underappreciation of future growth. It is this future



the future.


 
 Malcolm MacColl





Governance and Sustainability














numerous productive discussions with the management and the






Tencent to acquire shares at levels that appeared to favour the
Following discussions with CRH management, the company’s

new decarbonisation target is encouraging

© CRH.
seen in the Monks Stewardship Report 2022.
06
Strategic Report
### The Managers’ Core Investment Beliefs
 Long-term Perspective
basis for adding value for shareholders.  
given time to drive returns.
Active Management
 
 



little interest to us.
 
— High active share * provides the potential for adding value.
during the inevitable periods of underperformance.
 
 

  

— Large swathes of the market are unattractive and of no
interest to us.
Dedicated Team with Clear Decision-making Process
   
 
   
 
often for prolonged periods.
Portfolio Construction
Committed Growth Investors
 
  
drives returns.
 
  
 
value.
  – some of our smaller positions will
  
 

 Low Cost
 
 
of growth drivers within a disciplined framework.  
*
The Monks Investment Trust PLC 07
Strategic Report
### Investment Portfolio by Growth Category *
As at 30 April 2023
Growth Stalwarts Rapid Growth
 
Time Time
 
Company characteristics Company characteristics
Durable franchise 
 
environments markets


Microsoft    Prosus 
    Reliance Industries 
Highest
     
conviction
Service Corporation
holdings
International 
c.2.0% each

|  | Pernod Ricard |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | MasterCard |  |  |  |  |  |  |  |
|  | Meta Platforms |  |  |  | The Trade Desk |  |  |  |
|  |  |  | Solutions |  |  |  |  |  |
|  | Prudential |  |  |  | Pharmaceuticals |  |  |  |
| Average sized | Shiseido |  |  |  | The Schiehallion |  |  |  |
| holdings |  |  |  |  |  |  | MercadoLibre |  |
| c.1.0% each |  |  | CoStar |  | Moderna |  | Illumina |  |
|  |  |  |  |  | The Schiehallion |  | Sea Limited |  |
|  |  |  |  |  |  |  |  |  |


|  | adidas |  |  |  | Midwich |  |
| --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |
|  | Certara |  | Doordash |  |  |  |
|  | Topicus.com |  | Tesla |  |  |  |
|  |  |  | Coupang |  | Meituan |  |
|  |  |  | Schibsted |  | Novocure |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Incubator |  |  |  |  |  |  |
| holdings |  |  |  |  | Datadog |  |
| c.0.5% each |  |  |  |  |  |  |
|  |  |  |  |  | Technologies |  |
|  |  |  |  |  |  |  |
|  |  |  | Stripe |  | Lemonade |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  | Staar Surgical |  |  |  |
|  |  |  | ICICI Prudential Life |  |  |  |
|  |  |  | Insurance |  |  |  |

Total in this growth category 36.8% Total in this growth category 30.7%
* 
08
Strategic Report
Cyclical Growth

Time

Company characteristics

structural growth prospects

Martin Marietta

| Materials |  |  |  |
| --- | --- | --- | --- |
| CRH |  | Total in this |  |
|  |  | holding size |  |
|  |  |  | 39.0% |
|  |  |  |  |


| Rio Tinto |  | Charles Schwab |  |  |  |
| --- | --- | --- | --- | --- | --- |
| TSMC |  |  |  |  |  |
| Richemont |  | SiteOne Landscape |  |  |  |
|  |  |  |  | Total in this |  |
|  |  | SMC |  | holding size |  |
| Markel |  |  |  |  | 39.6% |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Holdings |  |  |  |  |  |
| Pool Corporation |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  | Persimmon |  |  |  |
| Howard Hughes |  |  |  |  |  |
|  |  |  |  | Total in this |  |
| Sands China |  |  |  | holding size |  |
| Redrow |  | Sberbank of Russia |  |  | 21.4% |

Total in this growth category 32.5%
The Monks Investment Trust PLC 09
Strategic Report
### Portfolio Positioning
As at 30 April 2023
Thematic Exposure

  
Industrial Demand 
 


|  |  |  | Developed |   |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  | Market Growth |  |  |
| Compounders |  | Economically | 18.4% |  |  |
|   |  | Agnostic |  |  |  |

25.1%
 
Developing
Economies
16.9%

Platform Crush* 
Middle Classes 
  New

Transformational Health  Economy
 
37.9%
 
    
   
   
Other  Industrial Demand 
  
 This brackets a diverse range of businesses from internet winners in
 developed and emerging economies to healthcare and semiconductor
 companies. *
 companies which seek to serve multiple stakeholders via a platform

 









airline.

—  
—  










—  
Sectoral 2023 Geographical 2023 
Net Liquid Assets 1.7% (1.2%)
Energy 2.6% (2.8%)
Developed Asia 4.9% (4.9%) Net Liquid Assets 1.7% (1.2%) Real Estate 1.8% (2.7%)
Basic Materials 4.0% (5.0%)
Japan 5.2% (4.5%)
Technology
Net Liquid Assets 1.7% Industrials
United Kingdom 21.6% (20.6%)
13.3% (10.6%)
8.6% (8.7%)
Consumer Staples
2.3% (2.0%)
Emerging
Markets North America
Healthcare
10.9% (12.2%) 52.4% (54.0%)
12.5% (14.5%)
Financials
17.8% (21.1%)
Consumer
Discretionary
22.4% (19.5%)
Continental Europe
16.3% (14.5%)
10
Strategic Report
### List of Investments
As at 30 April 2023

|  |  |  |  | % of | Cumulative |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Growth | Fair value |  | total | % of total |  |
| Name Business | category |  | £’000 | assets |  | assets |

Equities
Microsoft Software and cloud computing enterprise Stalwart  3.3
Elevance Health Healthcare insurer Stalwart  
Prosus  Rapid  
Martin Marietta Materials Cement and aggregates manufacturer   
Moody’s  Stalwart  
Service Corporation International Death care services Stalwart  
Reliance Industries  Rapid  
Amazon.com Online retailer Rapid  
Pernod Ricard  Stalwart  
CRH     25.8
The Schiehallion Fund*  Rapid  
The Schiehallion Fund – C Shares*  Rapid  
 
MasterCard  Stalwart  
 Online search engine Stalwart  
    
 Insurance broker Stalwart  
    
  Stalwart  
Meta Platforms Social networking website Stalwart  
    
 Optoelectronic products Stalwart   43.1
Rio Tinto    
Prudential International life insurance Stalwart  
TSMC Semiconductor manufacturer   
Shiseido  Stalwart  
The Trade Desk  Rapid  
Richemont    
  Stalwart  
 Indian mortgage provider   
  Rapid  
 Chinese life insurer    55.4
 Integrated circuits Stalwart  
  Stalwart  
Markel    
Moderna  Rapid  
 
 Stalwart  
 Industrial equipment   
 Semiconductor testing equipment manufacturer   
 Software products and technologies Stalwart  
    
* 


The Monks Investment Trust PLC 11
Strategic Report

|  |  |  |  | % of | Cumulative |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Growth | Fair value |  | total | % of total |  |
| Name Business | category |  | £’000 | assets |  | assets |

  Stalwart   64.7
Charles Schwab Online savings and trading platform   
  Rapid  
  Rapid  
 Manufacturer of law enforcement devices Rapid  
 Online commerce platform Rapid  
MercadoLibre  Rapid  
CoStar  Stalwart  
 Commercial real estate operator   
    
SMC     72.3
    
 Industrial engineering products   
    
 Medical testing equipment Stalwart  
    
Illumina  Rapid  
Sea Limited Online and digital gaming Rapid  
  Rapid  
 Online content platform including TikTok Rapid  
Doordash Online commerce platform Rapid   79.0
Tesla  Rapid  
Coupang South Korean ecommerce Rapid  
adidas Sports apparel manufacturer Stalwart  
Schibsted  Rapid  
  Rapid  
    
 Reseller of computer software Rapid  
 Online pet supplies retailer Stalwart  
  Rapid  
 Manufacturer of cables and electrical parts    84.4
    
Certara  Stalwart  
Pool Corporation Swimming pool supplies and equipment   
    
 Low cost airline   
  Rapid  
Howard Hughes    
  Rapid  
    
Sands China Macau casino operator    89.0
Topicus.com  Stalwart  
 Cloud based data insight application Rapid  
Redrow    
12
Strategic Report

|  |  |  |  | % of | Cumulative |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Growth | Fair value |  | total | % of total |  |
| Name Business | category |  | £’000 | assets |  | assets |

Stripe  Rapid  
  Rapid  
    
 Cloud based IT services business Rapid  
    
Staar Surgical Implantable contact lenses Rapid  
ICICI Prudential Life Insurance Life insurance services Rapid   93.0
Midwich  Rapid  
    
  Rapid  
  Rapid  
  Rapid  
Meituan Online commerce platform Rapid  
Novocure 
treatment Rapid  
 Cancer detection and treatment Rapid  
 Commercial kitchen equipment manufacturer Stalwart  
     96.1
 Online fashion retailer Rapid  
 Online music streaming service Rapid  
Persimmon    
Datadog  Rapid  
    
 Space rockets and satellites Rapid  
 Dating application Rapid  
Lemonade  Rapid  
  Rapid  
     98.2
 Online home furnishings business Rapid  
  Rapid  
  Rapid  
Sberbank of Russia † Russian commercial bank  – 
 Medical implant manufacturer Rapid – 
Total Investments 2,574,408 98.3 98.3
Net Liquid Assets #  
Total Assets # 2,617,738 100.0 100.0

† Suspended investment.
# 
Listed Schiehallion Unlisted Net liquid Total
equities Fund securities ‡ assets # assets #
% % % % %
30 April 2023 94.4 2.0 1.9 1.7 100.0
     

‡ 
# 
The Monks Investment Trust PLC 13
Strategic Report
### Baillie Gifford’s Approach to Valuing Private Companies
 
 
 companies (unquoted investments) as part of their audit.

The Monks Investment Trust*
process ensures that private companies are valued in both a fair

Instruments valued 9
 Revaluations performed 
  

 

*

reporting period end.



prevailing market conditions. The average movement in both



is shown below.

 Average Average
process. movement movement
in investee in investee
 company company
 valuation share price

Instruments valued*  

 *
reporting period end.
or changes to the valuation of comparable public companies.

The valuations committee also monitors relevant market indices


which provides some downside protection.

 
 
 
 the event of a corporate sale or liquidation.
Private Company Instruments
Fair value at
30 April 2023
Name Instrument £’000 % of total assets
   
 Common Stock  
Stripe  
Stripe Series H Preference 
Stripe Series I Preference 
 
  
 Class C Common 
 
   
   
Total private company investments 53,137 1.9
 *  
Total unlisted investments 54,418 1.9
   
Total direct and indirect unlisted exposure 107,695 3.9
*
14
Strategic Report

| One Year Summary | * |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  | 30 April |  | 30 April |  |
|  |  |  | 2023 |  | 2022 % change |

Total assets (before deduction of borrowings)  
  
  
   
 †   
 †   
Share price   
 # 
   
   
Ongoing charges †  
 †  
 †  
 †  
Net gearing †  
 †  
Year to 30 April 2023 2022
Total return performance% ‡
Net asset value (borrowings at par) †  
Net asset value (borrowings at fair value) †  
Share price †  
 #  
Year to 30 April 2023 2023 2022 2022
Year’s high and low High Low High Low
Net asset value (borrowings at par) †    
Net asset value (borrowings at fair value) †    
Share price    
 † ) ranged
from a discount †  †  †  † 

Year to 30 April 2023 2022
Net return per ordinary share
Revenue  
Capital  
Total (29.77p) (264.91p)
* 
† 
# 
‡ 
Past performance is not a guide to future performance.
The Monks Investment Trust PLC 15
Strategic Report
### Five Year Summary *
### The following charts indicate how an investment in Monks has performed relative to
###  † 
### 
5 Year Total Return Performance # Premium/(discount) to Net Asset Value #
 
5%
0%
(5%)
(10%)

| 80 |  |  |  |  |  |  |  |  | (15%) |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2018 | 2019 |  |  | 2020 2021 |  |  | 2022 |  | 2018 | 2019 | 2020 2021 | 2022 |  | 2023 |
|  |  |  |  |  |  |  | Cumulative to 30 April |  |  |  |  |  | Years to 30 April |  |  |
|  | ce: Refinitiv | and relevant underlying index providers |  |  |  | ‡ . |  |  | Source: Refinitiv/Baillie Gifford. |  |  |  |  |  |  |
|  | NAV total return |  | #¶ |  |  |  |  |  | Monks premium/(discount) (after deducting borrowings at fair value) |  |  |  |  |  | # |
|  | Share price total return |  |  |  | # |  |  |  | Monks premium/(discount) (after deducting borrowings at par) |  |  |  |  | # |  |
|  | FTSE World Index |  |  | † total return |  |  |  |  |  |  |  |  |  |  |  |

Annual Net Asset Value and Share Price Relative Annual Net Asset Value and Share Price Total
Total Returns # Returns # (relative to the FTSE World Index † total return)
20%
30%
0%
0%

|  | 2019 | 2020 2021 |  | 2022 |  | 2023 |  | 2019 | 2020 2021 |  | 2022 |  |  | 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  | Years to 30 April |  |  |  |  |  |  | Years to 30 April |  |  |
| Source: Refinitiv/Baillie Gifford. |  |  |  |  |  |  | Source: Refinitiv/Baillie Gifford |  |  | and relevant underlying index providers |  |  | ‡ . |  |
| NAV total return |  | #¶ |  |  |  |  | NAV total return |  | #¶ |  |  |  |  |  |
|  |  |  | # |  |  |  | Share price total return |  |  | # |  |  |  |  |

* 
† 
# 
10%

|  | ‡  |
| --- | --- |
| 200 40% |  |
|  | ¶  |

180
160
60%
140
120
(20%)
100
(40%)
2023
Sour
(30%)
Past performance is not a guide to future performance.
16
Share price total return
Strategic Report
### Ten Year Summary *
Capital

|  |  |  |  |  | Shareholders’ |  | NAV |  | NAV |  |  |  | Premium/ * |  | Premium/ * |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Total |  |  | Shareholders’ | funds |  | per share | † | per share | † | Share |  | (discount) | # | (discount) | # |
| At | assets * | Borrowings |  | funds * | per share | † | (par) |  | (fair) |  | price |  | (par) |  | (fair) |  |
| 30 April | £’000 |  | £’000 | £’000 | p |  | p |  | p |  |  | p | % |  | % |  |

         
         
         
         
         
         
         
         
         
         
2023 2,617,738 174,858 2,442,880 1,058.5 1,058.5 1,080.0 975.0 (7.9) (9.7)
Revenue Gearing Ratios

|  |  |  |  |  | Revenue |  | Dividend paid |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  | Available |  | earnings per |  | and proposed |  |  |  |  | Net |  | Gross |  |
|  | Gross | for ordinary |  |  | ordinary |  |  | per share |  | Ongoing * |  | (invested) |  | (potential) |  |
| Year to | revenue | shareholders |  |  | share | ‡ |  |  | net | charges | ¶ | gearing | # | gearing | #§ |
| 30 April | £’000 |  |  | £’000 | p |  |  |  | p | % |  | % |  | % |  |

       
       
       
       
       
       
       
       
       
       9
2023 30,211 10,714 4.70 3.15 0.43 5 7
Cumulative Performance (taking 2013 as 100)
Dividend

|  |  |  |  |  |  |  |  |  | Comparative |  | Revenue |  | paid and |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | NAV | NAV |  |  | Share price |  |  |  | Index |  | earnings |  | proposed |  | Retail |  |
| At | per share | total return | ^ | Share | total * |  | Comparative |  | total |  |  | per | per share |  | price |  |
| 30 April | (fair) * | (fair) * |  | price | return | ^ | Index | ^ | return | ^ |  | share |  | (net) | index | ^ |

         
         
         
         
         
         
         
         
 333  393      
         
2023 265 276 275 287 228 289 100 80 149
Compound annual returns
         
         
* 
† 

# 
‡ 

¶ 
§ 
^ 
Past performance is not a guide to future performance.
The Monks Investment Trust PLC 17
Strategic Report
### Business Review
Business Model 

Business and Status










The shares are not considered to be a suitable investment for

those seeking a regular or rising income.

public listed companies and their shares are traded on the 
 this is considered to be appropriate on investment grounds.
 
 
 
 
 


 Culture and Values
 
 
 providers with whom shareholders and other stakeholders
 
 
 
 
Regulations. 
the highest standards of business conduct.
Purpose
Performance
The Monks Investment Trust aims to deliver above average
 
 

Objective and Policy
Key Performance Indicators

 







the investment case.
 



  

 

— ongoing charges.

 






 
 
 
 comparable companies.

eliminating investment risk in its investments and protection

18
Strategic Report
Borrowings Climate and Governance Risk – as investors place increased
 
 
 
 
 
 
 
 
 
 

Principal and Emerging Risks 
   
 
regular basis. The Directors have carried out a robust assessment 
 
 includes assessment of the risks inherent in climate change
 
being managed or mitigated is set out below.
Regulatory Risk
 
 
 
 
 
the relevant risks. 

Financial Risk


change could impose disproportionate compliance burdens on
therefore market related and include market risk (comprising


ensure that the special circumstances of investment trusts are







processes and procedures are in place to ensure adherence to
pandemic and owing to macroeconomic and geopolitical


reference to inside information.

 Custody and Depositary Risk
 
 
meeting along with sales and purchases of investments. 
Individual investments are discussed with the investment managers 
together with their general views on the various investment 
 

Investment Strategy Risk




 Operational Risk
 
 provide accurate reporting and monitoring or a misappropriation
 
 
 



Manager.
The Monks Investment Trust PLC 19
Strategic Report
 Viability Statement
 
 
 
 
 taken into account a number of factors including the investment
 
 
 
 
Discount Risk  
 
 
 
 to operate over that period.
 In making this assessment the Directors have taken into account
 
shareholders. 
Political and Associated Economic Risk – political change 
  
  
 investment portfolio. The Directors have also considered the
 
 
  
 
  
 

Leverage Risk









can also make use of derivative contracts. To mitigate this risk

 

 investment

managers 
consideration of risk of further market deterioration resulting from

geopolitical concerns and macroeconomic pressures. The stress


  
 . 

Emerging Risks

 





risks arise from the interconnectedness of global economies

 








than to invalidate the investment rationale over the long term.
20
Strategic Report
Promoting the Success of the Company 
(Section 172 Statement) 
 











longstanding aim of providing a sustainable basis for adding value









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




monksinvestmenttrust.co.uk.
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


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

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suitable consideration is given to the range of factors to which
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the Directors should have regard. In addition to ensuring that the
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 
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of the recruitment process and subsequent appointment of
below.
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





3
    
pandemic. The Chairman is available to meet with shareholders






  
 
 
 
when considering how best to promote the success of the 
 
 — the decision to authorise the preparation of a prospectus
 
 shareholder approval for a combination with The Independent
ensuring that appropriate and regular challenge is brought and 
evaluation conducted. This approach aims to enhance service 
 



business conduct.
The Monks Investment Trust PLC 21
Strategic Report
 







Employees, Human Rights and Community Issues





issues.
Gender Representation



Environmental, Social and Governance Policy









website at bailliegifford.com.
Future Developments of the Company










 
KS Sternberg
Chairman
22
Governance Report
### Directors and Management


Directors
KS Sternberg Dr D Chaya
Karl Sternberg was appointed a Director in 2013 and became Dina Chaya was appointed a Director with effect from
Chairman in 2020. 30 November 2022. 
 
 
 
 
 
 


CM Boyle BJ Richards
Claire Boyle was appointed a Director in 2020.  Belinda Richards was appointed a Director in 2016. She is a
 
 
 
 
 
 





The Monks Investment Trust PLC 23
Governance Report
Prof Sir Nigel Shadbolt JJ Tigue
Professor Sir Nigel Shadbolt was appointed a Director in 2017. Jeremy Tigue was appointed a Director in 2014. He became
 
 
 
 
 Mercantile Investment Trust plc. He was a director of the
Data Institute. 
Managers and Secretaries









 Spencer Adair











Malcolm MacColl

24
Governance Report
### Directors’ Report
The Directors present their Report together with the audited Directors
 

Corporate Governance



and forms part of this Report.

Managers and Company Secretaries 
 
 
 
 
 
 
 shareholders.

Directors’ Indemnity and Insurance

















in which the Director is convicted or civil proceedings brought
 
and secretarial arrangements on an ongoing basis and a formal 
 
 



 
 
 
 
 
 
 
and the delegation of investment management services to
Dividends








Depositary 
 
 
 
Share Capital

Capital Structure










and leverage requirements.
the shares.
The Monks Investment Trust PLC 25
Governance Report
Dividends 
 
 
 
 

Capital Entitlement

 
 
proportion to their shareholdings. 

Voting


 Purchase of Own Shares
 





Major Interests in the Company’s Shares 
 
 
 
 

Annual General Meeting

Issuance of Shares 
 
 
 
 
 purchasing shares at a discount to the prevailing net asset value.



then:

 



 
Reconstruction as set out in the Circular and Prospectus dated
 
 value.
 


















 





(ii) the higher of the price of the last independent trade and the

highest current independent bid for a share on the London


  




if earlier.
26
Governance Report
 Greenhouse Gas Emissions and Streamlined
 Energy & Carbon Reporting (‘SECR’)










share for the remaining shareholders and if it is in the best




Articles of Association
information.

 Bribery Act

Financial Instruments






 Criminal Finances Act 2017




disclosed in note  
Recommendation
Disclosure of Information to Auditor




as it is their view that the resolutions are in the best interests

of shareholders as a whole.


 
information. KS Sternberg
Chairman
Post Balance Sheet Events  



Independent Auditor





The Monks Investment Trust PLC 27
Governance Report
### Corporate Governance Report
 Nomination Committee
 The Nomination Committee consists of all the Directors and Karl
 Sternberg is the Chairman of the Committee. The Committee
 
companies and can be found at theaic.co.uk required. The Committee has written terms of reference which
 
 
 
frc.org.uk. also considers whether Directors should be recommended for

Compliance








monksinvestmenttrust.co.uk.

 Appointments to the Board
 
 
 

The Board



including the determination and embodiment of its culture and

values. It has a number of matters reserved for its approval










in formal letters of appointment which are available for inspection

on request.


  Directors all of whom are



The Chairman is responsible for organising the business of


 Diversity Policy
 
 
 
 
 
 
 
performance appraisal and chairs the Nomination Committee 
 










prefer not to disclose their ethnic background. In such
There is an agreed procedure for Directors to seek independent 
 
28
Governance Report
Diversity of the Board Policy on Chairman’s Tenure
 
 
 
to the Parker Review recommendations. The Nomination 
 
 that an appropriate combination of these factors is essential for
 
 
Committee considers long term succession planning for this role

as part of its broader remit to ensure an appropriate level of







criteria.
Meetings
 
 
 
 
 
 
 
 
 
 the combination with The Independent Investment Trust PLC.
 
serving at that date.
Board as at 30 April 2023
Directors’ Attendance at Meetings
Senior
Sex Number % roles
Management
Audit Engagement Nomination
Men 3  3
Board Committee Committee Committee
 3  
Number of meetings 4 2 1 1
   
    
 *    
Senior
Ethnic Background Number % roles     
Professor Sir Nigel Shadbolt     
   3
KS Sternberg   †  
   
    
   
* 
Independence of Directors †

 


The Directors recognise the importance of succession planning









Chair and Senior Independent Director.
The Monks Investment Trust PLC 29
Governance Report
Performance Evaluation Audit Committee
 

Internal Controls and Risk Management


responding to an evaluation questionnaire each Director had an








against material misstatement or loss.
contribution of individual Directors and the overall effectiveness
 
 
 
each Director and the Chairman remain committed to the 
 



and maintenance of control policies and procedures to safeguard



including the maintenance of effective operational and compliance

controls have been delegated to the Managers and Secretaries.






Induction and Training 

New Directors are provided with an induction programme which is

tailored to the particular circumstances of the appointee. During the
their monitoring programmes. The reporting procedures for these






Management Engagement Committee 
 
 
the management contract is competitive and reasonable for the 








member of the Committee to be independent. To discharge its






assess whether further action is required to manage these risks.

 
 
monksinvestmenttrust.co.uk. 

Remuneration










place up to the date of approval of this Report.

 



30
Governance Report
 
 
ownership and maintaining a record of other assets and 
 
 
 
 
 
 
 principal and emerging risks and other matters set out in the
 
 
 
are investigated. which is for a period of at least twelve months from the date of


monitoring activities.
Relations with Shareholders
 
to ensure that effective risk management policies and procedures 
 
 The Chairman has maintained open lines of communication with
  
 
 matters. The Chairman is available to meet with shareholders
  






 
 
 for each resolution is announced at the meeting and is published
 at monksinvestmenttrust.co.uk subsequent to the meeting.
 
 


monksinvestmenttrust.co.uk.
Going Concern

Corporate Governance and Stewardship




concern.

 





when selecting and retaining investments and has asked the

Managers to take these issues into account. The Managers do







with the aim of improving the relevant policies and management
status is affected.

 
 
  bailliegifford.com.
 
 
 
 
 monksinvestmenttrust.co.uk.

The Monks Investment Trust PLC 31
Governance Report
Climate Change



result in companies that are high emitters of carbon facing greater

true environmental impact of their activities.


prioritise engagement and understand what higher emitting













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




KS Sternberg
Chairman
 
32
Governance Report
### Audit Committee Report
 Internal Audit
 The Committee continues to believe that the compliance and internal
 
 
 
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 Financial Reporting
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

  




Main Activities of the Committee 
 
 Internal Controls which details the controls in place regarding
 recording and pricing of investments and the reconciliation of
 
 
permanent risk function provided reports on their monitoring 
 
 
 
 
 

 
in valuing such investments. The Managers agreed the portfolio
  



Controls which details the controls in place regarding
  completeness and accurate recording of investment income.
The accounting treatment of each special dividend received
 


 The Committee considered the factors that might affect the
 

 
together with reports from the Managers on the cash position
 



  

 



 



  

— internal controls reports received from the Managers and
 

 


accordance with applicable law and accounting standards.

The Monks Investment Trust PLC 33
Governance Report
Internal Controls and Risk Management 
 
 
 
 

External Auditor 
 
 
 





 Regulatory Compliance
 
 
combination with The Independent Investment Trust PLC (IIT) in 
 
debenture trustee. Costs of the combination with IIT have been 
 
connection with share issuance. 

Accountability and Audit








 
 
 
  





audit partner. The audit partners responsible for the audit are to be








34
Governance Report
### Directors’ Remuneration Report
This report has been prepared in accordance with the Limits on Directors’ Remuneration
 
in arrears and are determined within the limit set out in the
Statement by the Chairman
 

in aggregate.











 Expected
 fees for
year ending Fees as at

30 Apr 2024 30 Apr 2023
Chair or Senior Independent Director. The fee levels were last
£ £

  
Directors’ Remuneration Policy
  
 
  *  



Independent Director *  

* 




set at a reasonable level that is commensurate with the duties

and responsibilities of the role and consistent with the requirement
Annual Report on Remuneration

 
 












schemes. There is no notice period and no compensation is

Directors’ Remuneration for the Year (audited)

the entire remuneration paid to the Directors.

|  |  |  | 2023 |  |  |  |  |  | 2022 |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2023 |  | Taxable |  | 2023 |  | 2022 |  | Taxable |  | 2022 |  |
|  | Fees |  | benefits | † | Total |  | Fees |  | benefits | † | Total |  |
| Name |  | £ | £ |  |  | £ |  | £ | £ |  |  | £ |

      
  –  – – –
     – 
Professor Sir Nigel Shadbolt     – 
KS Sternberg (Chair)     – 
     – 
200,167 4,064 204,231 179,000 165 179,165
† 

The Monks Investment Trust PLC 35
Governance Report
Annual Percentage Change in Remuneration
This represents the annual percentage change in the fees paid to the Directors.
Name % change from 2022 to 2023 % change from 2021 to 2022 % change from 2020 to 2021
  3.3 –
  * – –
  3.3 
Professor Sir Nigel Shadbolt  3.3 
 3.3    *
   
* Thes 
Directors’ Interests (audited) Company Performance
 The following graph compares the share price total return
 
 shareholders compared with the total shareholder return on a
 notional investment made up of shares in the component parts of

Ordinary 5p Ordinary 5p 
Nature shares held at shares held at

Name of interest 30 April 2023 30 April 2022

  – –
  – –

|     |  | Performance Graph |
| --- | --- | --- |
| Professor Sir |  |  |
| Nigel Shadbolt |  – – | 450 |
| KS Sternberg    |  | 400 |
|     |  | 350 |

300

| Statement of Voting at Annual General Meeting | 250 |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | 200 |  |  |  |  |  |  |
|  | 150 |  |  |  |  |  |  |
|  | 100 |  |  |  |  |  |  |
|  | 50 |  |  |  |  |  |  |
|  |  | 2013 | 2015 2018 20212020 | 201720162014 2019 |  |  | 20232022 |
|  |  |  |  |  | Cumulative years to 30 April |  |  |
|  | Source: Refinitiv/Baillie Gifford |  |  | and relevant underlying index providers |  | # . |  |

were withheld.
Monks share price
Relative Importance of Spend on Pay FTSE All-Share
 FTSE World Index
 Past performance is not a guide to future performance.
 ll figures are total returns (see Glossary of Terms and Alternative Performance
Measures on pages 72 to 74).

|  |  |  |  |  | # See disclaimer on page 71. |
| --- | --- | --- | --- | --- | --- |
|  | 2023 | 2022 | Change |  |  |
|  | £’000 | £’000 |  | % |  |
|     |  |  |  |  | Approval |
| Dividends paid to shareholders    |  |  |  |  |  |



KS Sternberg
Chairman
A 36
Governance Report
### Statement of Directors’ Responsibilities in Respect
### of the Annual Report and the Financial Statements
 
 
and regulations. 
Statement that complies with that law and those regulations.

 
 
 
 
 
 






 
 
to the best of their knowledge:
 
  

 



 






 
 



  

— the Strategic Report includes a fair review of the development
continue in business.
and performance of the business and the position of the
The Directors are responsible for keeping adequate accounting 
 and uncertainties that it faces.




KS Sternberg

Chairman


hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Monks Investment Trust PLC 37
Financial Report
### Independent Auditor’s Report
### To the Members of The Monks Investment Trust PLC
Opinion  
 
 
 
 
 addressed those matters which we considered important.
reporting framework that has been applied in their preparation is  
 
 
 statements were authorised for issue. In preparing the cash
 
 
   
 the debt covenants as a result of a reduction in the value of

 



— have been prepared in accordance with the requirements 
 

Basis for opinion
 

in the annual report in order to assess that the disclosures





reporting standards.

 

Independence









ethical responsibilities in accordance with these requirements.






it appropriate to adopt the going concern basis of accounting.
Conclusions relating to going concern Our responsibilities and the responsibilities of the Directors with
 respect to going concern are described in the relevant sections of
 
 
 
to adopt the going concern basis of accounting included:
38
Financial Report
Overview of Our Audit Approach Key Audit Matters

Key audit matters Risk of Incorrect valuation or ownership of

the investment portfolio

Risk of Incomplete or inaccurate revenue
assessed risks of material misstatement (whether or not due to


special dividends as revenue or capital in

the Income Statement

Materiality  
 
and we do not provide a separate opinion on these matters.
An Overview of the Scope of Our Audit
Tailoring the Scope





the potential impact of climate change and changes in the
business environment when assessing the level of work to be

engagement team which included our valuation specialists.
Climate Change
There has been increasing interest from stakeholders as to









misstated.
Our audit effort in considering climate change was focused on


no further impact of climate change to be taken into account as
the investments are valued based on market pricing as required

listed comparable companies or recent market transactions and



The Monks Investment Trust PLC 39
Financial Report
Our response Key observations communicated
Risk to the risk to the Audit Committee
Incorrect valuation or ownership of the We performed the following procedures: The results of our procedures
investment portfolio (as described on identified no material

 misstatement in relation to the
and controls surrounding legal title and pricing of quoted
Committee and as per the accounting risk of incorrect valuation or

 ownership of the investment
procedures in which we evaluated the design of controls.
portfolio.
The valuation of the investment portfolio




pricing vendor and recalculated the investment valuations as
quoted investments with an aggregate



and unquoted investments (including







The valuation of the assets held in the





return. Incorrect investment pricing or a
the audit team or our valuation specialists reviewed and
failure to maintain proper legal title to the
challenged the valuations. This included:

  
valuation and the return generated for 
shareholders. 
the valuation methodologies and assumptions.
The fair value of quoted investments is
 


the last traded price depending on the
valuation approach and a follow up meeting to challenge


investment is quoted.


 


review and appropriate challenge of the




 


consistent with the International Private
  
 
that have an impact on the fair market value of the


and the resultant impact on the unrealised
valuation is reasonable.

 






as an area of fraud risk as highlighted
valuation process and requested further support for the






purchase cost per the accounting records and to the bank
statements.






40
Financial Report
Our response Key observations communicated
Risk to the risk to the Audit Committee
Incomplete or inaccurate revenue We have performed the following procedures: The results of our procedures
recognition,  identified no material

special dividends as revenue or capital misstatement in relation to the
and controls surrounding revenue recognition including the
items in the Income Statement (per the risk of incomplete or inaccurate

 revenue recognition, including
procedures.

incorrect classification of special


dividends as revenue or capital

 items in the Income Statement.



Included in total revenue was revenue

received from special dividends of




dividends had been recorded for a sample of investee


There is a risk of incomplete or inaccurate
obtained from an independent data vendor.
recognition of revenue through the failure

to recognise proper income entitlements



treatment.
the dividend rate to corresponding announcements made

 


income receivable in the form of special







area of fraud risk as highlighted below on
above our testing threshold.






 



Our Application of Materiality Performance Materiality
 The application of materiality at the individual account or
 
the audit and in forming our audit opinion. low level the probability that the aggregate of uncorrected and

Materiality

The magnitude of an omission or misstatement that, individually





Materiality provides a basis for determining the nature and



 
 


 

performance.
threshold for the revenue column of the Income Statement of

The Monks Investment Trust PLC 41
Financial Report
Reporting Threshold Matters on Which we are Required to Report by
 Exception
 






 
warranted reporting on qualitative grounds. 


  
of other relevant qualitative considerations in forming our opinion. adequate for our audit have not been received from branches

Other Information
 
The other information comprises the information included in
Remuneration Report to be audited are not in agreement
 


the other information contained within the annual report.  

 
  
 we require for our audit.
thereon.
Corporate Governance Statement











  
 concluded that each of the following elements of the Corporate
we conclude that there is a material misstatement of the other 
 
  

Opinions on Other Matters Prescribed by the 
Companies Act 2006
 





 


the audit:

 
 



 
 
assessment of the emerging and principal risks set out
prepared in accordance with applicable legal requirements.

— The section of the annual report that describes the review
of effectiveness of risk management and internal control

 

42
Financial Report
Responsibilities of Directors  
 
 
 
 to the incomplete or inaccurate revenue recognition through
 
 
 fraud risk with respect to the incorrect valuation of the
to fraud or error. unquoted investments and the resultant impact on unrealised




response to the fraud risks and other areas of audit focus.

concern and using the going concern basis of accounting unless  
 
 regulations. Our procedures involved review of the reporting
to the Directors with respect to the application of the
Auditor’s Responsibilities for the Audit of the documented policies and procedures and review of the
Financial Statements 
 





website at frc.org.uk/auditorsresponsibilities. This description



 Other Matters we are Required to Address
  
 
the economic decisions of users taken on the basis of these 
 
of total uninterrupted engagement including previous
Explanation as to What Extent the Audit was

Considered Capable of Detecting Irregularities,

Including Fraud
— The audit opinion is consistent with the additional report




Use of Our Report
fraud. The risk of not detecting a material misstatement due to

fraud is higher than the risk of not detecting one resulting from









 
detection of fraud rests with both those charged with governance 
 or for the opinions we have formed.
 












 


The Monks Investment Trust PLC 43
Financial Report
### Income Statement
For the year ended 30 April

|  |  | 2023 | 2023 | 2023 |  | 2022 | 2022 | 2022 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Revenue |  | Capital | Total | Revenue |  | Capital | Total |
| Notes |  | £’000 | £’000 | £’000 |  | £’000 | £’000 | £’000 |

Losses on investments 9 –  (78,421) –  (631,829)
  –  293 –  (308)
Income   – 30,211  – 27,811
Investment management fee 3  – (8,878)  – (10,465)
   – (1,833)  – (1,888)

and taxation   (58,628)   (616,679)
   – (7,225)  – (5,298)
Net return on ordinary activities
before taxation   (65,853)   (621,977)
    (1,991)   (1,223)
Net return on ordinary activities
after taxation 10,714 (78,558) (67,844) 8,644 (631,844) (623,200)
Net return per ordinary share  4.70p (34.47p) (29.77p) 3.67p (268.58p) (264.91p)
Note:

  3.15p 2.35p






44
Financial Report

## Balance Sheet

As at 30 April

|   | Notes | 2023 £'000 | 2023 £'000 | 2022 £'000 | 2022 £'000  |
| --- | --- | --- | --- | --- | --- |
|  **Fixed assets** |  |  |  |  |   |
|  Investments held at fair value through profit or loss | 9 |  | 2,574,408 |  | 2,662,015  |
|  **Current assets** |  |  |  |  |   |
|  Debtors | 10 | 20,441 |  | 8,072 |   |
|  Cash and cash equivalents | 19 | 42,191 |  | 35,879 |   |
|   |  | 62,632 |  | 43,951 |   |
|  **Creditors** |  |  |  |  |   |
|  Amounts falling due within one year | 11 | (93,142) |  | (126,257) |   |
|  **Net current liabilities** |  |  | (30,510) |  | (82,306)  |
|  **Total assets less current liabilities** |  |  | 2,543,898 |  | 2,579,709  |
|  **Creditors and Provisions** |  |  |  |  |   |
|  Amounts falling due after more than one year: |  |  |  |  |   |
|  Loan notes | 12 | (99,858) |  | (99,853) |   |
|  Provision for tax liability | 12 | (1,160) |  | (692) |   |
|   |  |  | (101,018) |  | (100,545)  |
|   |  |  | **2,442,880** |  | **2,479,164**  |
|  **Capital and reserves** |  |  |  |  |   |
|  Share capital | 13 |  | 12,659 |  | 11,823  |
|  Share premium account | 14 |  | 433,714 |  | 262,183  |
|  Capital redemption reserve | 14 |  | 8,700 |  | 8,700  |
|  Capital reserve | 14 |  | 1,915,385 |  | 2,129,483  |
|  Revenue reserve | 14 |  | 72,422 |  | 66,975  |
|  **Shareholders' funds** | 15 |  | **2,442,880** |  | **2,479,164**  |
|  **Shareholders' funds per ordinary share** (borrowings at book value) | 15 |  | **1,058.5p** |  | **1,089.0p**  |

The Financial Statements of The Monks Investment Trust PLC (Company registration number 236964) on pages 44 to 64 were approved and authorised for issue by the Board and were signed on 19 June 2023.

KS Sternberg Chairman

The accompanying notes on pages 48 to 64 are an integral part of the Financial Statements.

The Monks Investment Trust PLC 45
Financial Report
### Statement of Changes in Equity
For the year ended 30 April 2023

|  |  |  | Share |  | Capital |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Share | premium |  | redemption |  | Capital | Revenue |  | Shareholders’ |  |
|  | capital | account |  |  | reserve | reserve | reserve |  |  | funds |
| Notes | £’000 |  | £’000 |  | £’000 | £’000 |  | £’000 |  | £’000 |

      2,479,164
 – – –   (67,844)
  – – –  – (135,221)
    –  – 172,048
  – – – –  (5,267)
Shareholders’ funds at 30 April 2023 12,659 433,714 8,700 1,915,385 72,422 2,442,880
For the year ended 30 April 2022

|  |  |  | Share |  | Capital |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Share | premium |  | redemption |  | Capital | Revenue |  | Shareholders’ |  |
|  | capital | account |  |  | reserve | reserve | reserve |  |  | funds |
| Notes | £’000 |  | £’000 |  | £’000 | £’000 |  | £’000 |  | £’000 |

      3,204,980
 – – –   (623,200)
  – – –  – (97,887)
  – – – –  (4,729)
Shareholders’ funds at 30 April 2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164

46
Financial Report
### Cash Flow Statement
For the year ended 30 April
2023 2023 2022 2022
Notes £’000 £’000 £’000 £’000

  
Net losses on investments  
  
  
  
  
  
Decrease in creditors  
Cash from operations *  
Interest paid  
  

  
Disposals of investments  
  

   
   
   –
Debenture repaid  –
 – 
  
Increase/(decrease) in cash and cash equivalents  
  
  
Cash and cash equivalents at 30 April 42,191 35,879
* 

The Monks Investment Trust PLC 47
Financial Report
### Notes to the Financial Statements
  
 
 
 items of a revenue and capital nature has been presented in the
as an investment trust. Income Statement.
 
1 Principal Accounting Policies
considered the impact of climate change risk as a principal risk






of the accounting policies set out below which are unchanged from






climate change risk.

  

(a) Basis of Accounting






(b) Financial Instruments

the assumption that approval as an investment trust under section 
 
 contractual provisions of the instrument.
  (c) Accounting Estimates and Judgements





affect the reported amounts of assets and liabilities at the


concern status is affected.

  
 

Estimates

 






 

 

  which market data is unavailable). The main estimates involved
 in the selection of the valuation process inputs are:

(i) the selection of appropriate comparable companies in order

to derive revenue multiples and meaningful relationships



Comparable companies are chosen on the basis of their


 
 

the principal and emerging risks and other matters set out in the  
 
 

 
which is a period of at least twelve months from the date of approval


 
 
to assist with the valuation validation or the application of





  
 

48
Financial Report
   
methods where possible to improve the robustness of the the valuation technique applied. The valuation approach recognises
 
 
 
 appropriate starting point for estimating fair value at subsequent
of fair values. The risk of an over or under estimation of fair 
values is greater when methodologies are applied using more 
 including changes in the market or performance of the investee

Judgements





 



(ii) the fair valuation of the unlisted investments. 

 

  
 


  
appropriate following detailed review and challenge. The 
 

 

— where there is an indication of a change in fair value as
(d) Investments




 (e) Cash and Cash Equivalents
  
 
 

(f) Income

 


recognised in the Income Statement as capital items.

The fair value of listed investments is either the bid price or the 
 income includes distributions from Collective Investment
on which the investment is listed. The fair value of suspended 
investments and unlisted investments in listed companies is are treated as capital items. Special dividends are treated as
 revenue or capital items depending on the facts of each
circumstances of the instrument in question. particular case.
Private Company Investments  
  of the cash dividend declared is credited to the revenue
Directors following a detailed review and appropriate challenge of 
 over the amount of the cash dividend foregone is recognised
 as capital.

 



 



(iv) Interest receivable on deposits is recognised on an
 
accruals basis.
 
 
The Monks Investment Trust PLC 49
Financial Report
(g) Expenses (l) Share Premium Account
 


 

(transaction costs) which are charged to capital. Transaction costs
are detailed in note 9  
 
 repurchase the shares.
(h) Borrowings and Finance Costs (m) Capital Redemption Reserve
   
 
 into the capital redemption reserve.

(n) Capital Reserve

 
for on an accruals basis using the effective interest rate method

and are allocated to revenue in the Income Statement.
capital nature are dealt with in this reserve. Purchases of the
(i) Taxation 
  
 
 purchase price of those shares and transferred to the capital
which is charged to the revenue accounts where it relates to reserve.
income received and to capital where it relates to items of a
(o) Revenue Reserve

 



dividend.

 (p) Single Segment Reporting
  
 
 
(j) Dividend Distributions
 


shareholders.
(k) Foreign Currencies
Transactions involving foreign currencies are converted at the rate




subsequent to the date of the transaction is included as an

revenue as appropriate.
50
Financial Report

## 2 Income

|   | 2023 £'000 | 2022 £'000  |
| --- | --- | --- |
|  **Income from investments** |  |   |
|  UK dividends | 4,688 | 10,519  |
|  Overseas dividends | 24,667 | 17,291  |
|  **Other Income** | 29,355 | 27,810  |
|  Deposit Interest | 856 | 1  |
|  **Total Income** | **30,211** | **27,811**  |
|  **Total income comprises:** |  |   |
|  Dividends from financial assets designated at fair value through profit or loss | 29,355 | 27,810  |
|  Interest from financial assets not at fair value through profit or loss | 856 | 1  |
|   | **30,211** | **27,811**  |

Special dividend entitlements arising in the year amounted to £492,000 (2022 – £2,393,000).

## 3 Investment Management Fee

|   | 2023 £'000 | 2022 £'000  |
| --- | --- | --- |
|  Investment management fee | **8,878** | **10,465**  |

Details of the Investment Management Agreement are disclosed on page 25. The annual management fee payable to Baillie Gifford & Co Limited is 0.45% on the first £750 million of total assets, 0.33% on the next £1 billion of total assets and 0.30% on the remaining total assets. For fee purposes, total assets is defined as the total value of all assets held less all liabilities (other than any liability in the form of debt intended for investment purposes) and excludes the value of the Company's holdings in The Schiehallion Fund, a closed-ended investment company managed by Baillie Gifford & Co. The Company does not currently hold any other collective investment vehicles managed by Baillie Gifford & Co. Where the Company holds investments in open-ended collective investment vehicles managed by Baillie Gifford, such as OEICs, Monks' share of any fees charged within that vehicle will be rebated to the Company. All debt drawn down during the periods under review is intended for investment purposes. For the quarters to 31 January 2023 and 30 April 2023, the assets subject to management fee excluded the £173 million rolled into the Company from The Independent Investment Trust PLC in accordance with the terms of the transaction as set out in the Prospectus published 6 October 2022, more detail of which is provided in note 13 Share Capital and note 14 Capital and Reserves.

## 4 Other Administrative Expenses

|   | 2023 £'000 | 2022 £'000  |
| --- | --- | --- |
|  General administrative expenses | 1,115 | 1,245  |
|  Marketing expenses* | 447 | 413  |
|  Directors' fees (see Directors' Remuneration Report on pages 35 and 36) | 200 | 179  |
|  Auditor's remuneration – statutory audit of annual Financial Statements† | 71 | 50  |
|  Auditor's non-audit remuneration – non-audit services (see page 33)† | – | 1  |
|   | **1,833** | **1,888**  |

* The Company is part of a marketing programme which includes all the investment trusts managed by the Manager. 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 Manager. The Manager matches the Company's marketing contribution and provides the resource to manage and run the programme.

† Irrecoverable VAT on audit fees and Auditor's non-audit remuneration is included within general administrative expenses. Non-audit remuneration of £25,500 in respect of the Company's combination with The Independent Investment Trust PLC has been charged to the Share Premium account, being expenses incurred in connection with share issuance. See note 14 Capital and Reserves.

The Monks Investment Trust PLC 51
Financial Report
5 Finance Costs of Borrowings
2023 2022
£’000 £’000
  
Debenture stocks  
Loan notes  
7,225 5,298
6 Tax on Ordinary Activities

|  | 2023 | 2023 | 2023 |  | 2022 | 2022 | 2022 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue |  | Capital | Total | Revenue |  | Capital | Total |
|  | £’000 | £’000 | £’000 |  | £’000 | £’000 | £’000 |

  –   – 
 –   –  
1,561 430 1,991 1,516 (293) 1,223
2023 2022
£’000 £’000

 
  

   
  
  
  
  
 1,561 1,516
  
  
 430 (293)
 1,991 1,223


Factors that may Affect Future Tax Charges




52
Financial Report

## 7 Net Return per Ordinary Share

|   | 2023 Revenue | 2023 Capital | 2023 Total | 2022 Revenue | 2022 Capital | 2022 Total  |
| --- | --- | --- | --- | --- | --- | --- |
|  Net return per ordinary share | **4.70p** | **(34.47p)** | **(29.77p)** | **3.67p** | **(268.58p)** | **(264.91p)**  |

Revenue return per ordinary share is based on the net revenue return on ordinary activities after taxation of £10,714,000 (2022 – £8,644,000) and on 227,887,889 (2022 – 235,252,716) ordinary shares of 5p, being the weighted average number of ordinary shares in issue during the year.

Capital return per ordinary share is based on the net capital loss for the financial year of £78,558,000 (2022 – loss of £631,844,000) and on 227,887,889 (2022 – 235,252,716) ordinary shares, being the weighted average number of ordinary shares in issue during the year.

There are no dilutive or potentially dilutive shares in issue.

## 8 Ordinary Dividends

|   | 2023 | 2022 | 2023 £'000 | 2022 £'000  |
| --- | --- | --- | --- | --- |
|  **Amounts recognised as distributions in the year:**  |   |   |   |   |
|  Previous year's final (paid 9 September 2022) | 2.35p | 2.00p | 5,267 | 4,729  |

We also set out below the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £10,714,000 (2022 – £8,644,000).

|   | 2023 | 2022 | 2023 £'000 | 2022 £'000  |
| --- | --- | --- | --- | --- |
|  **Amounts paid and payable in respect of the financial year:**  |   |   |   |   |
|  Proposed final (payable 13 September 2023) | 3.15p | 2.35p | 7,270 | 5,267  |

## 9 Fixed Assets – Investments

|  As at 30 April 2023 | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000  |
| --- | --- | --- | --- | --- |
|  Listed and suspended equities | 2,466,713 | 53,277 | – | **2,519,990**  |
|  Unlisted securities | – | – | 54,418 | **54,418**  |
|  **Total financial asset investments** | **2,466,713** | **53,277** | **54,418** | **2,574,408**  |

|  As at 30 April 2022 | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000  |
| --- | --- | --- | --- | --- |
|  Listed and suspended equities | 2,479,464 | 120,306 | 5,636 | **2,605,406**  |
|  Unlisted securities | – | – | 56,609 | **56,609**  |
|  **Total financial asset investments** | **2,479,464** | **120,306** | **62,245** | **2,662,015**  |

Investments in securities are financial assets held at fair value through profit or loss. In accordance with Financial Reporting Standard 102, the tables above provide an analysis of these investments based on the fair value hierarchy described below, which reflects the reliability and significance of the information used to measure their fair value. During the year, the previously Level 3 suspended investment in Brilliance China Automotive was sold and Stripe Series I Preference Shares were acquired. Level 2 investments comprise the ordinary and C share holdings in The Schiehallion Fund. The suspended investment in Sberbank of Russia has been valued at nil.

The Monks Investment Trust PLC 53
Financial Report
9 Fixed Assets – Investments (continued)
Fair Value Hierarchy
 

to the fair value measurement.
Level 1
Level 2
Level 3 – using inputs that are unobservable (for which market data is unavailable).
 


|  | 2023 | 2023 |  | 2023 |  | 2022 |
| --- | --- | --- | --- | --- | --- | --- |
|  | Listed | Unlisted |  | Total |  | Total |
| securities |  | securities * | securities |  | securities |  |
|  | £’000 | £’000 |  | £’000 |  | £’000 |

    
    
 2,605,406 56,609 2,662,015 3,238,130

Purchases at cost    
 †  –  –
Sales proceeds received  –  
Losses on investments    
 2,519,990 54,418 2,574,408 2,662,015
    
    
 2,519,990 54,418 2,574,408 2,662,015
* Includes holdings in ordinary shares, preference shares and contingent value rights.
† See notes 13 and 14 for further detail on the Scheme of Reconstruction and issuance of new shares in the Company to former shareholders of
The Independent Investment Trust PLC (IIT) in return for cash and equities from the former IIT portfolio.
 



2023 2022
£’000 £’000
Net (losses)/gains on investments:
  
Changes in investment holding gains  
(78,421) (631,829)
 





| 2023 | 2023 |  | 2023 | 2022 | 2022 |  | 2022 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Shares | Value | % of Shares |  | Shares | Value | % of Shares |  |
| held | £’000 |  | held | held | £’000 |  | held |

      
54
Financial Report
10 Debtors
2023 2022
£’000 £’000
Amounts falling due within one year:
  
Investment sales awaiting settlement  
Share issuance proceeds awaiting settlement  
  
  
20,441 8,072


11 Creditors – Amounts falling due within one year
2023 2022
£’000 £’000
  
3
    – 
Investment purchases awaiting settlement  
  
 – 
Other creditors and accruals  
93,142 126,257


Borrowing Facilities



 


 million .
 – none).
Debenture Stock
3
   
The Monks Investment Trust PLC 55
Financial Report

## 12 Creditors and Provisions – Amounts falling due after more than one year

|   | Repayment date | Nominal rate | Effective rate | 2023 £'000 | 2022 £'000  |
| --- | --- | --- | --- | --- | --- |
|  £60 million 1.86% Series A notes 2054 | 7/8/2054 | 1.86% | 1.86% | 59,904 | 59,901  |
|  £40 million 1.77% Series B notes 2045 | 7/8/2045 | 1.77% | 1.77% | 39,954 | 39,952  |
|   |  |  |  | **99,858** | **99,853**  |
|  Provision for tax liability in respect of Indian capital gains tax |  |  |  | 1,160 | 692  |
|   |  |  |  | **101,018** | **100,545**  |

### Unsecured Loan Notes

The unsecured loan notes are stated at the cumulative amount of net proceeds after issue expenses. The cumulative effect is to reduce the carrying amount of borrowings by £142,000 (2022 – £147,000).

### Provision for Tax Liability

The tax liability provision at 30 April 2023 of £1,160,000 (30 April 2022 – £692,000) 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

|   | 2023 Number | 2023 £'000 | 2022 Number | 2022 £'000  |
| --- | --- | --- | --- | --- |
|  Allotted, called up and fully paid ordinary shares of 5p each | 230,796,666 | 11,540 | 227,645,309 | 11,382  |
|  Treasury shares of 5p each | 22,374,794 | 1,119 | 8,808,550 | 441  |
|  **Total** | **253,171,460** | **12,659** | **236,453,859** | **11,823**  |

The Company's authority permits it to hold shares bought back 'in treasury'. Such treasury shares may be subsequently either sold for cash (at, or at a premium to, net asset value per ordinary share) or cancelled. In the year to 30 April 2023, 13,566,244 shares with a nominal value of £678,000 were bought back at a total cost of £135,221,000 to be held in treasury (2022 – 8,808,550 ordinary shares with a nominal value of £441,000 were bought back at a total cost of £97,887,000). No shares were issued from treasury during the year and at 30 April 2023 22,374,794 (2022 – 8,808,550) shares were held in treasury. 16,717,601 new shares in the Company were issued to former shareholders of The Independent Investment Trust PLC in accordance with the Scheme of Reconstruction as noted in more detail in note 14 Capital and Reserves. At 30 April 2023 the Company had authority to buy back 26,548,989 ordinary shares and to allot or sell from treasury 22,480,758 ordinary shares without application of pre-emption rights. Under the provisions of the Company's Articles of Association share buy-backs are funded from the capital reserve. In the period 1 May 2023 to 15 June 2023 the Company bought back a further 910,000 shares with a nominal value of £45,500 at a total cost of £9,020,234 to be held in treasury. At 15 June 2023 23,284,794 shares were held in treasury and the Company had authority remaining to buy back a further 25,638,990 ordinary shares.

56 Annual Report 2023
Financial Report
14 Capital and Reserves

|  |  | Share |  | Capital |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Share | premium |  | redemption |  | Capital | Revenue |  | Shareholders’ |  |
| capital | account |  |  | reserve | reserve | reserve |  |  | funds |
| £’000 |  | £’000 |  | £’000 | £’000 |  | £’000 |  | £’000 |

      2,479,164
Losses on investments – – –  – (78,421)
 – – –  – 293

notional capital gains – – –  – (430)

  – – – –  10,714
 – – –  – (135,221)
   –  – 172,048
 – – – –  (5,267)
 12,659 433,714 8,700 1,915,385 72,422 2,442,880

|  |  | Share |  | Capital |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Share | premium |  | redemption |  | Capital | Revenue |  | Shareholders’ |  |
| capital | account |  |  | reserve | reserve | reserve |  |  | funds |
| £’000 |  | £’000 |  | £’000 | £’000 |  | £’000 |  | £’000 |

      3,204,980
 – – –  – (631,829)
 – – –  – (308)

notional capital gains – – –  – 293

  – – – –  8,644
 – – –  – (97,887)
 – – – –  (4,729)
 11,823 262,183 8,700 2,129,483 66,975 2,479,164









15 Shareholders’ Funds Per Ordinary Share
2023 2022
  
  
  



The Monks Investment Trust PLC 57
Financial Report
16 Analysis of Change in Net Debt
Other

| At 1 May |  |  |  | non-cash |  | Exchange |  | At 30 April |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2022 | Cash flows |  | changes |  | movement |  |  | 2023 |
|  | £’000 |  | £’000 |  | £’000 |  | £’000 |  | £’000 |

Cash at bank and in hand   –  
  – – – 
Debenture stocks    – –
Loan notes  –  – 
(178,947) 46,019 (32) 293 (132,667)
Other

| At 1 May |  |  |  | non-cash |  | Exchange |  | At 30 April |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2021 | Cash flows |  | changes |  | movement |  |  | 2022 |
|  | £’000 |  | £’000 |  | £’000 |  | £’000 |  | £’000 |

Cash at bank and in hand   –  
 –  – – 
Debenture stocks  – (33) – 
Loan notes  –  – 
(31,065) (147,536) (38) (308) (178,947)
17 Contingent Liabilities, Guarantees and Financial Commitments
 
18 Transactions with Related Parties and the Managers and Secretaries
 


 


19 Financial Instruments





 


 
Market Risk



individual investment decisions and monitor the overall level of market risk across the investment portfolio on an ongoing basis.
 
58
Financial Report
19 Financial Instruments (continued)
Currency Risk


 



 

 

 
is shown below.

|  |  |  | Cash and |  | Loans, loan |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | cash | notes and |  | Other debtors |  | Net |
|  | Investments |  | equivalents |  | debentures |  | and creditors * | exposure |  |
| At 30 April 2023 |  | £’000 |  | £’000 |  | £’000 | £’000 |  | £’000 |

   –  
  – –  
  – –  
Other overseas currencies   –  
   –  
Sterling     
2,574,408 42,191 (174,858) 1,139 2,442,880
*

|  |  |  | Cash and |  | Loans, loan |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | cash | notes and |  | Other debtors |  | Net |
|  | Investments |  | equivalents |  | debentures |  | and creditors * | exposure |  |
| At 30 April 2022 |  | £’000 |  | £’000 |  | £’000 | £’000 |  | £’000 |

  – –  
  – –  
  – –  
Other overseas currencies   –  
   –  
Sterling     10,955
2,662,015 35,879 (214,826) (3,904) 2,479,164
*
Currency Risk Sensitivity




2023 2022
£’000 £’000
  
  
  
Other overseas currencies  
115,737 123,410
The Monks Investment Trust PLC 59
Financial Report
19 Financial Instruments (continued)
Interest Rate Risk
 
 
 
 
 







 


Financial Assets

comprising its cash and short term deposits.
 

Financial Liabilities
 

 
2023 2022
£’000 £’000
  
  
174,858 214,826
 

| 2023 |  | 2023 |  | 2023 | 2022 |  | 2022 |  | 2022 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Within | Between 1 |  | More than |  | Within | Between 1 |  | More than |  |
| 1 year | and 5 years |  |  | 5 years | 1 year | and 5 years |  |  | 5 years |
| £’000 |  | £’000 |  | £’000 | £’000 |  | £’000 |  | £’000 |

  –   – 
Interest on loans and debentures      
78,950 7,296 141,964 120,327 7,296 143,788
Interest Rate Risk Sensitivity




Other Price Risk




60
Financial Report
19 Financial instruments (continued)
Other price risk sensitivity




had an equal but opposite effect.








As at 30 April 2023 Significant unobservable inputs*
Fair value as

|  | at 30 April |  | Key | Other |  |  | Sensitivity to changes |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | 2023 | unobservable | unobservable | Sensitivity |  | in significant |
| Valuation approach |  | £’000 | inputs | inputs† Range |  | % | unobservable inputs |



the fair value would


  
# 
multiple
Market approach
using comparable

If the transaction
traded multiples


discount is changed
g  
and Discounts




If input comparable
Selection of 
 comparable 
   
performance companies and the fair value would
relevant indices ¶ 


and input comparable


Sum of the parts ^     
multiple #
the fair value would


Recent transaction
    
price
* 
† 
# 
¶ 
^ 

valuations.
The Monks Investment Trust PLC 61
Financial Report
19 Financial instruments (continued)
Other price risk sensitivity (continued)
As at 30 April 2022 Significant unobservable inputs*
Fair value as

|  | at 30 April |  | Key | Other |  |  |  |  | Sensitivity to changes |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  | 2022 | unobservable | unobservable |  |  | Sensitivity |  | in significant |
| Valuation approach |  | £’000 | inputs | inputs | † | Range |  | % | unobservable inputs |



the fair value would

   
multiple # 

Market approach
If the transaction
using comparable 

trading multiples
 discount is changed
Discount for lack of e
  

value would change


If input comparable
Selection of 
 comparable 
   
performance companies and the fair value would
relevant indices ¶ 

Recent transaction
     
price


and input comparable
multiple # 

Sum of the parts ^    
Selection of
the fair value would
comparable 

companies ¶

† 
# 
¶ 
^

overall valuation is the summation of these separate valuations.
* 



(a) Application of valuation basis






62
Financial Report
19 Financial Instruments (continued)
(b) Probability estimation of liquidation events






(c) Selection of comparable companies






(d) Estimated sustainable earnings





(e) Application of illiquidity discount



(f) Selection of appropriate benchmarks


(g) Valuation premium and discount




(h) Execution risk



deal has been assessed and legal documentation received.
Liquidity Risk





The Monks Investment Trust PLC 63
Financial Report
19 Financial Instruments (continued)
Credit Risk

suffering a loss. This risk is managed as follows:
 

 




 



 

Credit Risk Exposure

2023 2022
£’000 £’000
Cash and cash equivalents  
Debtors  
62,632 43,951

Fair Value of Financial Assets and Financial Liabilities


3
  

of corporate debt with similar rates and maturities.

| 2023 | 2023 | 2023 | 2022 | 2022 | 2022 |
| --- | --- | --- | --- | --- | --- |
| Par | Book | Fair | Par | Book | Fair |
| value | value | value | value | value | value |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |

      
3
     – – –   
      
      
175,000 174,858 125,404 215,000 214,826 190,308
20 Capital Management





 
are set out in note  .


64
Shareholder Information
### Notice of Annual General Meeting

Piccadilly 
Circus


A400 
Piccadilly
Haymarket

Regent Street


Trafalgar
Square intend to attend in person). Shareholders are recommended to
Pall Mall East
INSTITUTE OF Strand 
DIRECTORS
St James Sq 
Charing 
Cross

King St Pall Mall
Whitehall

The Mall
 
Meeting of The Monks Investment Trust PLC will be held at the 
 
 
purposes: 





 
 

agreement which would or might require Securities to be


  the Directors shall be entitled to allot or grant Securities in
 
 



 
as special resolutions:
 

  

 

 

  















 
 
 
 
 
  



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appropriate action on their behalf.

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 
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
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
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communicated to the appointee through other means.
 
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Ireland Limited does not make available special procedures in
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

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66
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 
sponsor or voting service provider(s) take(s) such action as 
 
 
 
 (a matter of business). The request must have been received
 
 The conditions are that the matter of business must not be

 





 


the grounds for the request. Members seeking to do this should


 









shareholders must be registered in the Register of Members


conduct of the audit. Such requests must be made in writing




of Members after the relevant deadline shall be disregarded in



meeting.
members who have a right to vote on the resolution to which
 


right to vote on the resolution to which the requests relate











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

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

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
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relation to the same shares.
and is intended to be moved at that meeting. The conditions
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 
 











The Monks Investment Trust PLC 67
Shareholder Information
### Further Shareholder Information
Company History Capital Gains Tax
 
 
 

Analysis of Shareholders at 30 April


2023 2023 2022 2022
Name Number % Number %


Institutions    

Intermediaries    
 Individuals    

Marketmakers    

230,796,666 100.0 227,645,309 100.0
Monks is an Investment Trust. Investment Trusts
Offer Investors the Following: Share Register Enquiries
  Computershare Investor Services PLC maintains the share register
  
and 

 

realised within its portfolio although investors are still liable for


 
How to Invest
 

 

  
 Transfer forms.
number of companies offering real time online dealing services –

monksinvestmenttrust.co.uk.
at investorcentre.co.uk
Sources of Further Information on the Company 
  
 
monksinvestmenttrust.co.uk 
 

  
request.  


 
 
  — use online dealing services.
Ticker MNKS 
investorcentre.co.uk






Key Dates




68
Shareholder Information
Dividend Reinvestment Plan 
Computershare operate a Dividend Reinvestment Plan which can 
 its own shares.
 
log on to investorcentre.co.uk and follow the instructions or 
 derivatives.
Electronic Proxy Voting 



eproxyappointment.com.
would be reduced.




CREST Proxy Voting 
 
 of loss than those bought at a discount.




Risks 
Past performance is not a guide to future performance. 
 
 
get back the amount invested. 

Monks invests in overseas securities. Changes in the rates of
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 
monksinvestmenttrust.co.uk






price Monks might receive upon their sale.
advice.



The Monks Investment Trust PLC. The information and opinions


greater.




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




the amount of this loss.
The Monks Investment Trust PLC 69
Shareholder Information
### Automatic Exchange of Information
 
 
to collect and report certain information about certain shareholders. for the purposes of collecting this information.
The legislation requires investment trust companies to provide 
personal information to HMRC on certain investors who purchase 
 holders gov.uk/government/publications/exchange-of-
 information-account-holders.

shareholders and corporate entities.
### Alternative Investment Fund Managers (AIFM) Regulations
 
 
 

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bailliegifford.com or
on request (see contact details on the back cover). The numerical Gross method Commitment method

  
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  
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 
 
 
 bailliegifford.com).

Taxonomy Regulation

 





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 


sustainable competitive advantages in their marketplace. To do

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

sustainable economic activities.

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 
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(whether direct or indirect) resulting there from. No Provider has 
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contained in this communication. No further distribution of data

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
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
information or materials contained herein.
The Monks Investment Trust PLC 71
Shareholder Information

## Glossary of Terms and Alternative Performance Measures (APM)

An alternative performance measure is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework.

### Total Assets

This is the Company's definition of Adjusted Total Assets, being the total of all assets less current liabilities and provisions, before deduction of all borrowings.

### Shareholders' Funds

Shareholders' Funds is the value of all assets held less all liabilities, with borrowings deducted at book cost.

### Net Asset Value (APM)

Net Asset Value (NAV) is the value of all assets held less all liabilities, with borrowings deducted at either par value or fair value as described below. Per share amounts are calculated by dividing the relevant figure by the number of ordinary shares in issue.

### Net Asset Value (Borrowings at Par Value) (APM)

Borrowings are valued at nominal par value.

A reconciliation from shareholders' funds (borrowings at book value) to net asset value after deducting borrowings at par value is provided below.

|   | 2023 £'000 | 2023 per share | 2022 £'000 | 2022 per share  |
| --- | --- | --- | --- | --- |
|  Shareholders' funds (borrowings at book value) | 2,442,880 | 1,058.5p | 2,479,164 | 1,089.0p  |
|  Add: book value of borrowings | 174,858 | 75.8p | 214,826 | 94.4p  |
|  Less: par value of borrowings | (175,000) | (75.8p) | (215,000) | (94.4p)  |
|  Net asset value (borrowings at par value) | **2,442,738** | **1,058.5p** | **2,478,990** | **1,089.0p**  |

The per share figures above are based on 230,796,666 (2022 – 227,645,309) ordinary shares of 5p, being the number of ordinary shares in issue at the year end.

### Net Asset Value (Borrowings at Fair Value) (APM)

Borrowings are valued at an estimate of market worth. The fair values of the loan notes are calculated using a comparable debt approach, by reference to a basket of corporate debt. The fair value of the Company's short term bank borrowings is equivalent to its book value.

A reconciliation from shareholders' funds (borrowings at book value) to net asset value after deducting borrowings at fair value is provided below.

|   | 2023 £'000 | 2023 per share | 2022 £'000 | 2022 per share  |
| --- | --- | --- | --- | --- |
|  Shareholders' funds (borrowings at book value) | 2,442,880 | 1,058.5p | 2,479,164 | 1,089.0p  |
|  Add: book value of borrowings | 174,858 | 75.8p | 214,826 | 94.4p  |
|  Less: fair value of borrowings | (125,404) | (54.3p) | (190,308) | (83.6p)  |
|  Net asset value (borrowings at fair value) | **2,492,334** | **1,080.0p** | **2,503,682** | **1,099.8p**  |

The per share figures above are based on 230,796,666 (2022 – 227,645,309) ordinary shares of 5p, being the number of ordinary shares in issue at the year end.

72 Annual Report 2023
Shareholder Information
Discount/Premium (APM)



this situation is called a premium.
2023 2022
 a  
 b  
Closing share price c   
Discount to NAV with borrowings at par  (7.9%) (3.5%)
Discount to NAV with borrowings at fair value  (9.7%) (4.4%)
Net Liquid Assets

Active Share (APM)



Unlisted, Unquoted and Private Company Investments

Total Return (APM)

below.

| 2023 | 2023 | 2023 | 2022 | 2022 | 2022 |
| --- | --- | --- | --- | --- | --- |
| NAV | NAV | Share | NAV | NAV | Share |
| (par) | (fair) | Price | (par) | (fair) | Price |

 a      
 * b      
       
 d      
Total return  (2.6%) (1.6%) (7.0%) (19.5%) (18.9%) (24.6%)
* 

Ongoing Charges (APM)


2023 2022
Investment management fee  
  
 a  
 b  
Ongoing charges  0.43% 0.40%
The Monks Investment Trust PLC 73
Shareholder Information
Gearing (APM)







(a  c in the table below).

  c in the table below)*.

 *.
* 
2023 2022
 a  
Less: cash and cash equivalents  
Less: sales for subsequent settlement  
  
 b  
 c  
Gross (potential) gearing  7.2% 8.7%
Net (invested) gearing  5.3% 7.3%
Leverage (APM)






Compound Annual Return (APM)


Treasury Shares


rights attaching to them.
Turnover (APM)


74

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