The Monks
Investment
Trust PLC
Annual Report and Financial Statements 30 April 2026
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
andas such comply with the requirements of the
Financial Conduct Authority (‘FCA’). They are not
authorised or regulated by the FCA.
The Monks Investment Trust PLC currently conducts
its affairs, and intends to continue to conduct its
affairs, so that the Company’s ordinary shares can
qualify to be considered as a mainstream investment
product and can be recommended by Independent
Financial Advisers to ordinary retail investors in
accordance with the rules of the FCA in relation
tonon-mainstream investment products.
This document is important and requires your
immediate attention.
Investor disclosure document
The UK Alternative Investment Fund Managers
Regulations require certain information to be made
available to investors prior to their investment
in theCompany. The Company’s Investor
Disclosure Document is available for viewing at
monksinvestmenttrust.co.uk.
If you reside in the United Kingdom and you are in any
doubt as to the action you should take, you should
consult your stockbroker, bank manager, solicitor,
accountant or other independent financial advisor
authorised under the Financial Services and Markets
Act 2000 immediately. If you reside outside the
United Kingdom, you should consult an appropriately
authorised financial adviser.
If you have sold or otherwise transferred all of your
ordinary shares in The Monks Investment Trust
PLC, please forward this document, together with
accompanying documents, but not your personalised
Form of Proxy, as soon as possible to the purchaser or
transferee or to the stockbroker, bank or other agent
through whom the sale or transfer was or is being
effected for delivery to the purchaser or transferee.
01
The Monks Investment Trust PLC
Introduction
Financial highlights 02
Key characteristics 03
Strategic report
Chairman’s statement 05
Managers’ review 09
The Managers’ core investment beliefs 14
Environmental, social and governance engagement 15
Ten largest investments 16
Growth categories 21
Investment portfolio by growth category 22
List of investments 24
Baillie Gifford – valuing private companies 28
Portfolio positioning 29
One year summary 30
Five year summary 32
Ten year record 34
Business review 37
Governance report
Directors and managers 50
Directors’ report 54
Corporate governance report 59
Audit Committee report 67
Directors’ remuneration report 70
Statement of Directors’ responsibilities 74
Financial report
Independent auditor’s report 77
Income statement 84
Balance sheet 85
Statement of changes in equity 86
Cash flow statement 87
Notes to the Financial Statements 88
Shareholder information
Notice of Annual General Meeting 108
Further shareholder information 114
Sustainable Finance Disclosure Regulation (‘SFDR’) 117
Communicating with shareholders 118
Insights 119
Glossary of terms and Alternative Performance Measures 120
Company information 125
Contents
Introduction
Annual Report and Financial Statements 2026
02
Bold and balanced growth investing
The objective of Monks is to invest globally to achieve
capital growth. This takes priority over income and
dividends. Monks seeks to meet its objective by investing
principally in a portfolio of global quoted equities.
Financial highlights
Performance for the year to 30 April 2026
Share price
*
35.6%
NAV (borrowings
at par value)
*
†
29.4%
NAV (borrowings
at fair value)
*
†
29.3%
Comparative
index
*
#
31.0%
* Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 116. All figures are stated on a total return basis.
Totalreturn and discount are Alternative Performance Measures – see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
†
Net Asset Value per share (‘NAV’).
#
The comparative index is the FTSE World Index (in sterling terms).
Past performance is not a guide to future performance.
NAV, share price and index total return
*
(figures rebased to 100 at 30 April 2025)
Discount to net asset value (borrowings at fair value)
*
(figures plotted on a weekly basis)
A
2026
A
2025
MJ JASOND F
JM
●
Share price*
●
NAV (fair)*
†
●
Index*
#
90
150
140
130
120
110
100
20262025
AAM JJASONDF
JM
●
Discount*
●
Average discount
(12%)
(4%)
(2%)
0%
(8%)
(10%)
(6%)
The Monks Investment Trust PLC
03
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
Key characteristics
Growth
Portfolio of growth
equities (c.100 holdings),
unconstrained by region
or sector.
Exposure spread across
three distinct growth profiles,
offering a diversified portfolio
designed to deliver capital
growth.
Geared
Enhancement of
shareholder returns
viathe deployment
ofstructural gearing.
Net gearing
*
8.5%.
A tiered management fee
means that shareholders
benefit from economies
of scale.
Ongoing charges ratio
*
0.44%
; among the lowest in
the sector.
Low
cost
An investment horizon
of5 years or more allows
the growth potential of
investee companies to
be fulfilled and Monks’
shareholders to benefit
from the power of
compound growth.
Annualised turnover
*
24.9%.
Patience
Active
A portfolio that differs
significantly from the
comparative index.
The Managers invest in
companies with distinct
competitive advantages
andharness the potential
to deliver superior earnings
growth over time.
Active share
*
79%
Capital
discipline
An active approachto
both issuance and
buybacks to maximise
shareholder return.
Buybacks of £433 million in
theyear to 30 April 2026;
16.1% of issued share capital.
This Strategic report, which
includes pages 5 to 48 and
incorporates the Chairman’s
statement, has been prepared in
accordance with the Companies
Act 2006.
Strategic
report
The Monks Investment Trust PLC
05
Chairman’s
statement
Randeep Grewal
Chairman
Appointed to the
Board in 2024,
andas Chairman
in2025
Performance
Global equity markets delivered strong returns
over the year to 30 April 2026, despite ongoing
macroeconomic and geopolitical uncertainty.
Market leadership broadened beyond the narrow
group of mega-cap technology companies that had
dominated returns in prior years, while continued
investment in artificial intelligence infrastructure
and applications remained an important driver of
corporate earnings and investor sentiment.
Against this backdrop, Monks delivered a strong
absolute return. During the year to 30 April 2026,
the net asset value (‘NAV’) total return, with
borrowings calculated at fair value, was 29.3%
and the share price total return was 35.6%. Over
the same period, the FTSE World Index return was
31.0%. The share price discount to NAV narrowed
materially during the period, ending the year at
5.7% on a fair value basis compared to 10.1% at the
prior year end.
The Board recognises that performance over shorter
periods can vary significantly given the Company’s
long-term growth approach. However, we are
encouraged by the portfolio’s recovery and by the
operational and strategic progress made by many of
the underlying holdings during the year.
Capital allocation and discount
The Board continued to prioritise active discount
management during the year. The Company’s shares
traded at a discount to net asset value throughout
the period, although the discount narrowed
significantly as market sentiment improved and the
Board maintained an active buyback programme.
Strategic report
Annual Report and Financial Statements 2026
06
During the financial year, the Company repurchased
30.2 million shares at a total cost of £432.6 million
(26.5 million shares at a cost of £321.1 million in
2025). These repurchases represented 16.1% of
the issued share capital at the start of the period.
This reflects the Board’s commitment to the
discount objective. At the year end, shares in issue
totalled 157.5 million, with 95.7 million shares held
intreasury.
The Board continues to believe that share buybacks
are an effective capital allocation tool when the
shares trade at a meaningful discount to NAV.
Buybacks enhance NAV per share for ongoing
shareholders while also supporting liquidity in the
Company’s shares.
The Board aims to maintain the discount in mid-
single digits, in normal market conditions.
Borrowings and gearing
The Company’s investment trust structure allows
the use of gearing in pursuit of enhanced long-term
returns. The Board’s strategic borrowing target
remains 10%, with effective gearing expected to
be maintained within a range of minus 15% to
plus15%.
At the year end, net gearing stood at 8.5%
and gross gearing at 8.9%. The Company had
£50million drawn under its £100 million revolving
credit facility with The Royal Bank of Scotland
International. In addition, the Company continues
to benefit from long-term structural borrowings in
sterling, euro and yen, secured at attractive rates
inprior years.
The Board and Managers continue to believe that
a diversified borrowing structure provides both
flexibility and resilience over the long term.
Management expenses
Monks remains highly competitive on costs, and the
Board continues to believe that maintaining a low
ongoing charges ratio is an important contributor
to long-term shareholder returns. The total ongoing
charges ratio for the year to 30 April 2026 was
0.44% (0.43% to 30 April 2025).
Earnings and dividend
Monks invests with the aim of maximising capital
growth rather than income. The Board’s policy
remains to pay the minimum dividend necessary to
maintain the Company’s investment trust status.
All costs are charged to the Revenue Account and
retained earnings are reinvested into the portfolio.
The Board is recommending that a single final
dividend of 0.9p be paid, compared to 0.5p last year,
to ensure that the amount retained for the year does
not exceed that permissible.
Subject to shareholder approval at the Annual
General Meeting, the dividend will be paid on
15September 2026 to shareholders on the register
at the close of business on 7 August 2026. The
ex
-dividend date will be 6 August 2026.
The Board
As they reach the end of their tenures, Professor
Sir Nigel Shadbolt and Belinda Richards will be
retiring from the Board at the conclusion of the
forthcoming Annual General Meeting. Given the rise
in the importance of AI and of world trade tensions,
it is hard to imagine two better-qualified directors
to have helped steer the Company over the last few
years. Nigel’s deep expertise in AI has informed both
our engagement with the Managers and, through
his presentations at Board meetings, the Board’s
collective understanding of where the technology
is heading. Belinda’s experience across financial
services and businesses engaged in global trade has
been similarly valuable, particularly as tariffs and
the terms-of-trade environment have moved to the
centre of investor concerns. The Board thanks them
both for their contribution.
It is a tribute to Karl Sternberg, my predecessor as
Chair, that the succession process has been smooth,
with David Ballance and Richard Curling joining last
year, allowing an overlap with Nigel and Belinda. This
is the first annual report under my chairmanship,
and I would like to take the opportunity to record
the Board’s thanks to Karl for his leadership of the
Company during his time as Chair, for the rigour he
brought to Board oversight and for setting in motion
the deeper manager review whose conclusions are
reflected in this report.
Stacey Parrinder-Johnson has taken over my
responsibilities as chair of the Nomination
Committee, which allows me to focus on other
aspects of your Company’s activities. The Board
remains focused on maintaining an appropriate
balance of continuity, diversity of thought and
relevant investment trust experience.
The Monks Investment Trust PLC
07
Manager Review
Spencer Adair, as previously announced, retired at
the end of March this year. The Board would like to
thank Spencer for his contribution to the Company
over many years and wish him well for what comes
next. Michael Taylor became co-manager on 1 April
2026, joining Helen Xiong and Malcolm MacColl.
As per my predecessor’s comments in the Annual
Report of last year, and my comments in the Interim
Report, your Board engaged with the Managers
over a number of sessions for a deeper dive than the
usual manager review.
Firstly, and perhaps most importantly, the manager
transition was smooth, with the team having all
worked together over a number of years in Baillie
Gifford’s wider Global Alpha strategy.
Secondly, there is no fundamental change to
our underlying strategy. Monks offers investors
exposure to global growth, with a balance between
different styles of growth – stalwarts, rapid and
cyclical growth. And as importantly, culture and
process, investment approach and philosophy
remainunchanged.
Thirdly there is a balance between patient investing
and responding to markets or news headlines. The
seeds for some of the investments the Company
is now harvesting were planted years ago. It is
often easy from the outside to suggest that a fund
manager responds to the ‘hot idea’ of the season,
month, week or day. Having sat in fund manager
seats, I know what the pressure is like.
At the risk of dragging in my more trading orientated
background, please indulge me in quoting Jesse
Livermore, perhaps one of the greatest traders who
ever lived:
‘Money is made by sitting, not trading’
And
‘Just remember, without discipline, a clear strategy,
and a concise plan, the speculator will fall into all
the emotional pitfalls of the market – jump from
one stock to another, hold a losing position too
long, and cut out of a winner too soon, for no
reason other than fear of losing profit.’
In many ways, the above two quotes summarise the
conclusions of our deep dive and the ambition of
both the Board and the Managers for the investment
process – we must combine patient long-term
investing with the discipline to exit when the
timecomes.
Two examples illustrate this patient, disciplined
approach, anchored in a clear strategy and a
concise plan. As mentioned earlier, Nigel has been
researching AI since the 1970s. He has presented
or discussed AI on a number of occasions at
Board meetings, with the Managers also present.
In parallel, the Managers have been undertaking
considerable work of their own in the area. Thus our
current exposure to the AI segment of the market
is not a flash in the pan driven by current news
headlines, but built over a few years by a disciplined
investment process and a long-term view on what AI
mightdeliver.
A similar pattern has been followed by our exposure
to another company which is now a name in
the news: Space Exploration Technologies, or
SpaceX as it is commonly known. This is also an
interesting case study because we have both direct
exposure and indirect. This indirect exposure to
private companies, via Schiehallion, provides us
with access and understanding to the unlisted
sector that we might otherwise not have. As high
growth companies stay private for longer, this is an
importantconsideration.
In both cases, the investment process builds
confidence in the longer term outcome and enables
the Company to ‘sit’ with positions.
Discipline cuts two ways: ‘the long term’ is never
an excuse; if the Managers lose confidence in an
investee company or feel the original hypothesis
has weakened, or there are better prospects for our
capital elsewhere, then their discipline requires the
position is exited.
There are elements in the above that we have all
been keen to tighten up — ‘clear strategy’, ‘concise
plan’, ‘discipline’ — but the Board was pleased at the
willingness of the Managers to engage on all these
points; the underlying building blocks are, and have
been, in place.
One example of this in practice has been the
increased focus on valuation discipline, with the
Managers now reporting regularly to the Board
on positions they have trimmed or exited due to
valuation overstretch.
08
Annual Report and Financial Statements 2026
An important element that Karl referred to previously
is market dynamics. One aspect of this is that
constant news coverage and, as has been illustrated
during the recent conflict between the US and
Iran, market sentiment, can swing tremendously in
minutes, let alone days or weeks. The wisdom of
Jesse Livermore’s words (written about a century
ago) on having a clear plan for every position
are perhaps more relevant today than ever, else,
every investor risks being shaken out of positions
by emotions. However, this does not mean one
sits immovably if there is (what is known in macro
and quantitative investing circles as) a regime
change – the difficulty, perhaps more than ever, is
distinguishing between short term sentiment swings
and more fundamental issues. Valuation discipline
is one of a number of means by which we protect
ourdownside.
We hope investors will share our ambition – we
aim to deliver you exposure to diversified forms of
globalgrowth.
Outlook
In the last year, global equity returns have not been
as concentrated in the Mag-7 stocks as they were
in recent years. We hope this broader dispersion in
returns will play to our strategy’s strengths.
I would be remiss not to mention the clouds on the
horizon. The world has contained the impact of the
change in tariffs and the terms-of-trade shock with
relatively little immediate disruption, and the sudden
rise in the oil price has been absorbed remarkably
well so far. But the consequences of all of this will
take months, or indeed years, to play out. To give
but one example, disruption of fertiliser supply from
the Arabian Gulf will affect crop yields, farmers and
ultimately consumers globally into 2027. Repairs
to the liquefied natural gas trains damaged in the
recent conflict could, on some estimates, take
fiveyears.
Indeed, this macro backdrop reinforces the case
for active stock selection over passive exposure to
mega-cap concentration and, equally, the case for
global diversification over a single sector or region.
Annual General Meeting
The Annual General Meeting will be held on Friday,
4 September 2026 at One Moorgate Place, City of
London, EC2R 6EA at 11.30am. We look forward to
welcoming our shareholders there.
The Board intends to hold the AGM voting on a
poll, so encourages all shareholders to exercise
their votes at the AGM by completing and
submitting a form of proxy. We recommend that
shareholders monitor the Company’s website at
monksinvestmenttrust.co.uk where any updates
regarding the meeting will be posted. Market
announcements will also be made in the event of any
change to the scheduled arrangements.
Should shareholders have questions for the Board
or the Managers, or any queries as to how to
vote, they are welcome as always to submit them
by email to enquiries@bailliegifford.com or call
08009172113. For shareholders investing through
a platform, the AIC guidance on how to vote shares
in advance or obtain the documentation necessary
to vote in person at the AGM, may be of assistance:
theaic.co.uk/how-to-vote-your-shares.
Randeep Grewal
Chairman
30 June 2026
Past performance is not a guide to future performance. Total return information is sourced from Baillie Gifford/LSEG. See disclaimer on page 116.
For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
The Monks Investment Trust PLC
09
Managers’ review
Michael Taylor
Portfolio manager
Malcolm MacColl
Portfolio manager
Helen Xiong
Portfolio manager
When we wrote our last annual letter at the start of
April 2025, we were in the midst of a market shock.
President Trump had just announced his ‘Liberation
Day’ tariffs, and markets were fearful about the
implications for global trade. Since then, markets have
bounced back strongly, with the FTSE World Index
delivering a 31.0% return. This stellar performance
reflects both strong profit growth and relief that the
worst-case scenarios did not materialise.
This recovery reinforces that our approach then was
the right one: to step back and assess the long
-term
impacts, build portfolio resilience rather than flee
companies at risk, and use fear-driven sell-offs
as opportunities. The market mood today is less
melancholy than a year ago. Yet concerns remain
just below the surface, particularly the potential
implications of the Iran War and the advancement and
adoption of AI capabilities.
These events matter for the companies we own.
But,as with Trump’s tariffs, the market’s reactions
are often more binary and extreme than the situation
justifies. This inefficiency is uncomfortable, but it
creates opportunities for us to add value, both outside
the areas of market trepidation and within them. To
capture them, we are leaning even further into the
same approach: to assess, improve the portfolio, and
capitalise on it. We have repositioned the portfolio to
outperform in a changing world. We explain why and
how in more detail below.
Strategic report
Annual Report and Financial Statements 2026
10
Performance
Over the 12 months to the end of April, the portfolio
largely kept pace with a storming index, delivering a
NAV return of 29.3% (share price 35.6%) versus an
index total return of 31.0%.
Monks’ share price rose sharply from April to
November as fears around the ‘Liberation Day’ tariffs
faded. Since then, a broad sell-off in digital businesses
seen as vulnerable to AI disruption and the outbreak
of the Iran War has driven more volatility in the share
price of Monks’ underlying companies. However, the
breadth of growth drivers in the portfolio and strong
underlying profit growth have enabled the Trust to
navigate through these more choppy waters.
Top five contributors and detractors to relative performance by stock for the year end 30 April 2026 (%)
Average weight
in portfolio
Average weight
in Index
Average active
weight
Total
Return Attribution
Top five
The Schiehallion Fund 4.0 0.0 4.0 116.0 2.2
TSMC 4.9 1.3 3.6 136.4 2.1
Samsung Electronics 1.4 0.5 0.9 279.2 1.1
Comfort Systems USA 0.7 0.0 0.7 357.5 0.9
FTAI Aviation 1.1 0.0 1.1 132.3 0.9
Bottom five
Elevance Health 1.9 0.1 1.9 -10.9 -1.0
Tencent 0.7 0.0 0.7 -23.5 -0.8
Broadcom 0.0 1.7 -1.7 114.9 -0.8
CoStar Group 0.8 0.0 0.8 -54.1 -0.8
Paycom Software 0.8 0.0 0.8 -44.6 -0.7
Source: Revolution, FTSE.
All attribution figures are calculated gross of fees, relative to the Index from stock level up, based on closing prices.
The table above shows the largest contributors
and detractors from Monks’ relative performance.
A clear theme runs through the top contributors:
bottlenecks in the AI hardware build-out. Demand
for AI applications continues to outstrip supply.
Companies that control the key pinch points in
scaling that supply are seeing profits grow rapidly.
TSMC, Samsung, Comfort Systems and FTAI
Aviation are all clear examples. TSMC is the
dominant producer of cutting-edge chips used to
train leading AI models, with over 90% share in
manufacturing the most advanced chips. Despite
its typically conservative guidance, it expects AI
revenue growth of more than 50% per year through
2029. That sort of growth justifies its position as the
portfolio’slargest.
Other bottlenecks include memory, power and
datacentre cooling equipment, where more complex
and energy-hungry models are driving a surge in
demand for all three. Samsung is one of only three
providers of High Bandwidth Memory (HBM), which
is needed to push the limits of AI. Comfort Systems,
a leading supplier and installer of cooling equipment,
has reported similarly booming profits and a rapidly
expanding order book, while FTAI Aviation has
repurposed its pool of aircraft engines, not for
airlines but for powering datacentres.
We decided to trim our holdings in Samsung and
Comfort Systems as their share prices have nearly
quadrupled over the last 12 months. However, we
decided to sell out of FTAI completely as its move
to use its aircraft engines to power datacentres is
a more uncertain departure from its core business
and valuation had become elevated. We may
revisit this in time. Considering the uncertainty
around AI, we will continue to manage our overall
exposurecarefully.
The Monks Investment Trust PLC
11
The final contributor was Schiehallion, the private
companies investment trust, whose underlying
portfolio of more than 40 companies, such as
European software company Bending Spoons and
rocket company SpaceX, has performed well. Private
market returns are often driven by a small number of
exceptional winners. Our investment in Schiehallion,
run by Baillie Gifford’s Private Companies team,
gives us access to a broader range of exciting
unlisted businesses and helps us benefit from the
asymmetric nature of private market returns.
While the market rewarded those who provide
AI infrastructure, it punished those who build
applications. Top detractors were mainly on the
wrong side of this, including Tencent, the Chinese
social media giant; CoStar, the US commercial and
residential property platform; and Paycom, a payroll
software provider. The AI threat is genuine, but it is
not equal across all digital companies, and for these
three, the market reaction has gone too far.
Tencent can utilise AI models on its proprietary data
to improve its ad targeting model and accelerate
growth. Paycom is also more protected than most,
given the legal, regulatory and reputational risks of
not paying employees accurately and on time, while
CoStar has built its services on hard-to-replicate
data and an online marketplace which provides value
to buying and selling agents that will remain part
of the transaction chain, whatever AI tools emerge.
For the wide range of ‘AI-disrupted businesses’ in
the Company’s portfolio, we sought to add to those
where we feel the sell-offs are most unjustified.
Elevance Health, a US health insurer, has not been
hit by AI but by changes to healthcare policy and
Medicaid eligibility, as well as rising costs, which
have compressed its margins. Management expects
to reset and return to 12% profit growth in 2027,
and its services business continues to expand.
However, given the likely impact of obesity drugs on
chronic disease and the reduced demand for these
services, we have reduced the position.
Broadcom completes the list of detractors. It is an AI
chip leader we do not own, but which is included in
the index and performed strongly as the chip cycle
broadened and strengthened. Our new holding,
Mediatek, is a direct competitor to Broadcom,
and one that we believe can take share as the
marketexpands.
Assess – New Bottlenecks
The hardware bottlenecks in chips, memory and
cooling are the most visible today. We have selective
exposure here, but they are not the only constraints
emerging. The global economic and political system
is shifting, creating new bottlenecks and new growth
drivers beyond AI.
For most of the last 15 years, money was cheap,
computing power was abundant, and manufacturing
capacity was plentiful as the West outsourced
production to the developing world. Intelligence –
skilled knowledge workers, in particular developers
– was the key constraint, leading to those who
controlled it, the capital-light digital platforms, to
accrue value. Profit growth was more concentrated
in these companies. However, after decades of
underinvestment, governments and businesses are
now spending again, not just on AI but on power
infrastructure, building local manufacturing and
on defence. Profit growth is tilting back towards a
better balance with the physical world, meaning tech
companies may not dominate alone.
This shift is helping us find growth in
underappreciated areas. Energy is one example.
Before the Iran War began, we added EOG, a US
shale oil producer, and EQT, a US gas producer, to
the portfolio. Global supply is tight for both oil and
gas. Energy security is pushing countries to prioritise
and support domestic oil production, while AI drives
up electricity and gas demand. Prices can remain
elevated as new supply takes time to come online,
boosting profits. Energy services can benefit too.
We added Tidewater, the largest supplier of support
vessels to the offshore oil and gas industry, as it is
one supply bottleneck (tight supply of vessels) on
another (offshore oil production), which could lead
to latent pricing power and improved returns.
Copper is another bottleneck. It takes 10–15 years
to bring a new mine into production. Yet copper is
essential for most future technologies: datacentres,
electric vehicles, power grids, defence systems and
robotics. Freeport-McMoRan is the largest US copper
miner and enjoys a cost advantage through superior
ore grades and advanced extraction technology. It
is increasing volumes from its US mines and is well
placed to benefit if geopolitical tensions cause the
US and Chinese copper prices to diverge.
Strategic report
Annual Report and Financial Statements 2026
12
Improve – Broaden Exposure
These new holdings add exposure to distinct
physical bottlenecks and growth drivers, helping to
balance the overall portfolio. However, the range of
possible outcomes remains unusually wide. In this
environment, we felt that adding dependable growth
stalwarts would strengthen the Trust’s resilience.
We added PMI, which is transitioning from selling
cigarettes to faster-growing nicotine pouches and
‘heat-not-burn’ products. These new products are
higher-margin than cigarettes and with similarly
dependable demand. We also bought Midea, China’s
leading white goods producer, and Dino Polska, a
Polish discount supermarket chain. Both offer ballast
in a more precarious market backdrop.
We also introduced a trio of banks: Credicorp
in Peru, UOB in Southeast Asia and SEB in
Scandinavia. All three have conservative
management teams, a key trait in a bank, and clear
growth drivers that we believe will lead to profit
growth that surpasses low expectations. They can
also play an important diversifying role for the
portfolio if interest rates and inflation do rise.
Take Advantage – Back the Winners
The changes above have had three main effects.
First, they create a portfolio that can perform
well across many different futures, not just one.
Second, the increased breadth means that stock
selection should matter more to returns than sector
or style exposures. Third, this improved balance
gives us latitude to back companies whose share
prices, in our view, have been unfairly punished in
recentmonths.
Samsara is one example. Its share price is down
more than 15% this year, despite improving
results. Samsara helps asset-heavy businesses,
such as construction firms, bus operators and
ground-handling companies, manage their
equipment more effectively. The market sees its
edge as weakened by AI. We disagree. Foundation
models cannot build the specialised hardware
Samsara uses to monitor equipment, and its
customers often need its experienced sales teams
to demonstrate safety, efficiency and cost savings.
Growth is accelerating, driven by product innovation,
and we expect this to continue.
Shopify offers merchants inventory management,
logistics coordination, payments, returns and more.
Consumers may shop on ChatGPT or Claude, but
the models must still connect to the physical world
in some way. Shopify sits in the middle of that
chain, making it more AI-proof, yet its share price
has suffered. Adyen, the payments processor, is
another example. Its share price has been cut on
AI concerns, yet the complexity it handles and the
fraud it helps prevent are likely to increase in a world
where AI agents make more purchase decisions.
We have added to all three positions and will
continue to exploit what we regard as overreactions
to uncertainty. To fund these, we’ve sold some of the
companies under threat or with lower conviction,
including Salesforce, a sales software provider;
Korean ecommerce leader Coupang; and digital
advertising platform The Trade Desk. This is the right
approach to a digital world that will have clearer
divergence between the winners and losers.
Gearing and Buybacks
The Board has continued to use gearing and
buybacks to deliver value for shareholders. As
part of its sustained commitment to managing the
discount, it has spent £432.6m on share buybacks
over the past 12 months. This equates to over 16%
of the issued share capital at the start of the period
and has helped bring the discount more consistently
into the mid-single digits. The Board and the
Manager expect to continue to utilise buybacks to
deliver shareholder value. Gross gearing remains at
8.9%, which has also boosted shareholders’ returns.
The Monks Investment Trust PLC
13
Outlook
The world is changing. AI is reshaping industries,
geopolitics is altering trade and energy flows, and
physical constraints such as power, infrastructure
and resources are becoming more important.
Periods of rapid change are uncomfortable, but they
are also when long-term active growth investing
matters most.
Our job is not to react to every news item. It is to
recognise when the world is shifting, ensure the
portfolio evolves with it, while staying anchored to
the principles that have always mattered: owning
great, but varied, growth businesses and combining
them into one stronger portfolio. The changing
backdrop has helped us improve resilience and
broaden the portfolio without sacrificing the growth
that is so key to delivering shareholder returns. The
road ahead may be winding, but we’ve rarely been
more excited about this portfolio’s ability to navigate
it for its shareholders.
Michael Taylor
Malcolm MacColl
Helen Xiong
Baillie Gifford & Co
30 June 2026
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Annual Report and Financial Statements 2026
14
The Managers’ core
investment beliefs
We believe the following features of Monks provide a
sustainable basis for adding value for shareholders.
Active management
• We invest in attractive companies using a ‘bottom-
up’ investment process.
• High active share* provides the potential for
adding value.
• We look broadly for growth, spanning regions and
sectors deliberately seeking opportunities where
we think growth is least recognised.
• As the portfolio is very different from the index,
we expect portfolio returns to diverge – sometimes
substantially and often for prolonged periods.
Committed growth investors
• In the long run, share prices follow fundamentals;
growth drives returns.
• We aim to produce a portfolio of stocks with above
average growth, this in turn underpins the ability of
Monks to add value.
• We have a differentiated approach to growth,
focusing on the type of growth that we expect
acompany to deliver. All holdings fall into one
ofthree growth categories, as set out on pages 21
to 23.
• The use of these three growth categories ensures
a diversity of growth drivers within a disciplined
framework.
Long-term perspective
• Long-term holdings mean that company
fundamentals are given time to drive returns.
• We prefer companies that are managed with a
long-term mindset, rather than those that prioritise
the management of market expectations.
• We believe our approach helps us focus on what
is important during the inevitable periods of
underperformance.
• Short-term portfolio results are random.
• As longer-term shareholders we are able to have
greater influence on environmental, social and
governance matters.
Dedicated team with clear decision-making
process
• Senior and experienced team drawing on the
fullresources of Baillie Gifford.
• Alignment of interests – the investment team
responsible for Monks all own shares in the
Company.
Portfolio construction
• Investments are held in three broad holding sizes,
as set out on pages 21 to 23.
• This allows us to back our judgement in those
stocks for which we have greater conviction, and
to embrace the asymmetry of returns through
‘incubator’ positions in higher risk/return stocks.
• ‘Asymmetry of returns’ – some of our smaller
positions will struggle and their share prices will
fall; those that are successful may rise many fold.
The latter should outweigh the former.
Low cost
• Investors should not be penalised by high
management fees.
• Low turnover and trading costs benefit shareholders.
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
15
The Monks Investment Trust PLC
Environmental, social and
governance engagement
The Board has given discretionary voting powers
to Baillie Gifford. The Managers vote against
resolutions they consider may damage shareholders’
rights or economic interests and report their actions
to the Board.
The Board believes that it is in the shareholders’
interests to consider environmental, social and
governance (‘ESG’) factors when selecting and
retaining investments and has asked the Managers to
take these issues into account. The Managers do not
exclude companies from their investment universe
purely on the grounds of ESG factors butadopt a
positive engagement approach wherebymatters
are discussed with management with the aim of
improving the relevant policies and management
systems and enabling the Managers toconsider
how ESG factors could impact long-term investment
returns. The Managers’ Statement of Compliance
with the UK Stewardship Code can be found on
the Managers’ website: bailliegifford.com. The
Managers’ policy has been reviewed and endorsed
by the Board. The Managers, BaillieGifford & Co,
are signatories to the United Nations Principles for
ResponsibleInvestment.
The Company publishes an annual stewardship
report which includes examples of engagement on
ESG matters, as well as setting out the Managers’
approach to proxy voting. The annual stewardship
report is available on the Company’s website
monksinvestmenttrust.co.uk.
Strategic report
Annual Report and Financial Statements 2026
16
Ten largest
investments
The Company’s tenlargest
investments as at30April 2026.
TSMC
Taiwan Semiconductor
Manufacturing Company is the
largest and most advanced
semiconductor foundry globally,
integral to the global electronics
industry. Its lead in semiconductor
process technology and
partnerships with all key chip
design companies result in a multi-
decade growth opportunity as well
as enduring high returns on capital.
Geography Emerging Markets
Valuation at
30 April 2026
£169,146,000
% of total assets 6.2%
Valuation at
30 April 2025
£81,423,000
% of total assets 3.2%
Net purchases/(sales)
in the year
(£3,743,000)
© Taiwan Semiconductor Manufacturing Co., Ltd.
The Schiehallion Fund
The Schiehallion Fund seeks
to generate capital growth for
investors through long-term
investments in later-stage private
businesses with the potential for
transformational growth and to
become publicly traded. The Fund
invests globally in high-growth
private companies, focusing
on exceptional businesses with
scalable models, strong competitive
positions and significant long-
term growth opportunities. Its
long-term investment approach
aims to capture value creation
through key stages of a company’s
development, providing access to
innovative private businesses before
and beyond public market listings.
Geography United Kingdom
Valuation at
30 April 2026
£149,081,000
% of total assets 5.4%
Valuation at
30 April 2025
£68,420,000
% of total assets 2.7%
Net purchases/(sales)
in the year
–
17
The Monks Investment Trust PLC
Alphabet
Alphabet, the parent company of
Google, is the world’s dominant
search platform, expanding its
cloud computing business rapidly.
Alphabet is well positioned
to integrate AI into its search
capabilities while using its own
hardware to earn strong returns
on its AI cloud investment. Its
autonomous driving platform
Waymo provides further upside.
Geography North America
Valuation at
30 April 2026
£113,042,000
% of total assets 4.1%
Valuation at
30 April 2025
£35,292,000
% of total assets 1.4%
Net purchases/(sales)
in the year
£24,748,000
® Google.com
Amazon.com
Amazon is a global ecommerce
company that has expanded
into areas including media and
entertainment, advertising,
and logistics. Through its cloud
platform, Amazon Web Services
(AWS), the company is the leader
in the growth area of cloud
computing.
Geography North America
Valuation at
30 April 2026
£83,381,000
% of total assets 3.0%
Valuation at
30 April 2025
£92,864,000
% of total assets 3.7%
Net purchases/(sales)
in the year
(£8,569,000)
NVIDIA
NVIDIA designs and manufactures
graphics processing units. Its
semiconductors can be used for a
range of applications, from gaming
to artificial intelligence (AI). After
years of investment into both
hardware and software, NVIDIA
is well positioned to benefit from
the rise of generative AI. NVIDIA is
using its scale to further reinvest
in its opportunity; designing new
hardware to make data centres
more powerful and energy
efficient, while building software
to help companies adopt AI more
quickly.
Geography North America
Valuation at
30 April 2026
£134,159,000
% of total assets 4.9%
Valuation at
30 April 2025
£79,679,000
% of total assets 3.1%
Net purchases/(sales)
in the year
(£2,163,000)
© Copyright (c) 2022 Nor Gal/Shutterstock © UCG/Getty Images
Strategic report
Annual Report and Financial Statements 2026
18
Meta Platforms
Meta is a globally dominant social
media and advertising platform,
reaching over 3 billion daily
active users across its four apps:
Facebook, Messenger, Instagram
and WhatsApp. Meta provides
digital advertising infrastructure
that helps businesses connect
with consumers and is a significant
player in this large and growing
industry.
Geography North America
Valuation at
30 April 2026
£63,483,000
% of total assets 2.3%
Valuation at
30 April 2025
£100,603,000
% of total assets 4.0%
Net purchases/(sales)
in the year
(£14,058,000)
Royalty Pharma
Royalty Pharma is one of the
largest buyers of pharmaceutical
rights in the US. It provides
funding for drug companies to
commercialise treatments, taking
a cut of those drug sales when
they reach the market. We expect
it to continue its successful capital
deployment, driving double-digit
growth for years to come.
Geography North America
Valuation at
30 April 2026
£61,932,000
% of total assets 2.3%
Valuation at
30 April 2025
£45,581,000
% of total assets 1.8%
Net purchases/(sales)
in the year
(£5,458,000)
Microsoft
Microsoft is the world’s dominant
enterprise software company.
Having first risen to prominence
with its Windows operating
system and Office software, it
is now a major player in cloud
computing and generative artificial
intelligence (AI).
Geography North America
Valuation at
30 April 2026
£71,282,000
% of total assets 2.6%
Valuation at
30 April 2025
£104,501,000
% of total assets 4.1%
Net purchases/(sales)
in the year
(£14,373,000)
© Jae C. Hong/AP/REX/Shutterstock © Shutterstock/Melnikov Dmitriy
19
The Monks Investment Trust PLC
Tencent
Tencent is China’s largest online
entertainment platform. It operates
WeChat, China’s super-app,
providing unrivalled consumer
internet reach to increase
advertising revenues and integrate
AI services. Its cloud business and
gaming platform provide additional
growth potential.
Geography Emerging Markets
Valuation at
30 April 2026
£60,900,000
% of total assets 2.2%
Valuation at
30 April 2025
–
% of total assets –
Net purchases/(sales)
in the year
£78,163,000
® Alamy Stock Photo
Samsung Electronics
Samsung is a global leader in
memory chips and smartphones.
Its scale, vertical integration
and relentless innovation
underpin durable competitive
advantages. Itis well positioned
as a key enabler of digital and AI
infrastructure globally.
Geography Emerging Markets
Valuation at
30 April 2026
£61,320,000
% of total assets 2.2%
Valuation at
30 April 2025
£16,320,000
% of total assets 0.6%
Net purchases/(sales)
in the year
£4,162,000
® Samsung
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Annual Report and Financial Statements 2026
20
21
The Monks Investment Trust PLC
Growth
categories
Growth stalwarts
Earnings
c.10% p.a. earnings growth
Company characteristics
Durable franchise
Deliver robust profitability in most macroeconomic environments
Competitive advantage includes dominant local scale, customer loyalty and strong brands
Time
c.15% to 25% p.a. earnings growth
Company characteristics
Early stage businesses with vast growth opportunity
Innovators attacking existing profit pools or creating new markets
Time
Rapid growth
Earnings
c.10% to 15% p.a. earnings growth through a cycle
Company characteristics
Subject to macroeconomic and capital cycles with significant structural growth prospects
Strong management teams highly skilled at capitalallocation
Time
Cyclical growth
Earnings
We have a differentiated approach to growth, focusing on the type of growth that we expect a company to
deliver. All holdings fall into one of the three growth categories below.
The use of these three growth categories ensures a diversity of growth drivers within a disciplined
framework. The investment portfolio by growth category is set out on pages 22 and 23.
Strategic report
Annual Report and Financial Statements 2026
22
Investment portfolio
by growth category
*
as at 30 April 2026
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
Denotes unlisted/private company investment.
Denotes suspended investment.
†
New purchase during the period.
Holding size Growth stalwarts 31.8% Rapid Growth 28.8%
Highest conviction
holdings
c.2.0% each
Alphabet 4.1 The Schiehallion Fund 5.4
Amazon.com 3.0 NVIDIA 4.9
Microsoft 2.6
Tencent Holdings
†
2.2
Meta Platforms 2.3
Service Corporation International 1.9
Mastercard 1.8
Average sized holdings
c.1.0% each
Texas Instruments 1.3 ByteDance
1.6
Elevance Health 1.2 Space Exploration Technologies 1.4
MSCI
†
1.1 Stripe 1.1
Moody's 0.9 Netflix 1.0
Autozone 0.9 DoorDash 0.9
Keyence
†
0.9 Applovin 0.9
Stella-Jones 0.9 Shopify 0.9
Thermo Fisher Scientific 0.9 MercadoLibre 0.8
Poste Italiane
†
0.8
Chugai Pharmaceutical† 0.8
Philip Morris
†
0.8
Dollar General
†
0.8
Incubator holdings
c.0.5% each
Midea Group 'A'
†
0.7 Nu Holdings 0.7
Edenred 0.6 Adyen 0.7
Games Workshop
†
0.6 Novo Nordisk 0.7
Dino Polska
†
0.5
Samsara
†
0.6
Auto Trader
†
0.5 Uber Technologies 0.6
Medline
†
0.5 AeroVironment 0.5
Kweichow Moutai 0.5 Alnylam Pharmaceuticals 0.5
Paycom Software 0.5 Sea Limited 0.4
Cosmos Pharmaceutical 0.4
Coinbase
†
0.4
Datadog 0.4
Dutch Bros 0.4
Spotify 0.4
Cloudflare 0.4
Auto1
†
0.3
Epic Games 0.3
Enphase Energy 0.2
Ant International 0.2
Illumina CVR <0.1
Abiomed CVR -
The Monks Investment Trust PLC
23
Cyclical Growth 39.4% Holding size
TSMC 6.2
Total in this
holding size
45.7%
Royalty Pharma 2.3
Samsung Electronics 2.2
Martin Marietta Materials 1.9
CRH 1.7
CATL 1.7
Petroleo Brasileiro ADR 1.5
Ryanair 1.4
Total in this
holding size
31.0%
B3 Group 1.3
ON Semiconductor 1.2
EOG Resources
†
1.1
Ensign
†
1.0
CBRE Group 0.9
Comfort Systems USA 0.9
Richemont 0.9
Eaton 0.8
Markel 0.8
Epiroc 0.8
Disco 0.7
Total in this
holding size
23.3%
Brookfield 0.7
United Overseas Bank
†
0.7
EQT Corp
†
0.7
Credicorp
†
0.7
QXO
†
0.7
Advanced Drainage Systems 0.7
Freeport-McMoran Copper
†
0.6
SEB
†
0.6
Medpace
†
0.6
Nexans 0.6
Brunswick Corp 0.6
Kokusai Electric 0.5
Tidewater
†
0.5
Mediatek
†
0.5
Nippon Paint 0.5
CoStar 0.5
Willscot Holdings 0.3
Silk Invest Africa Food Fund 0.1
Sberbank of Russia
-
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Annual Report and Financial Statements 2026
24
List of
investments
as at 30 April 2026
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
Denotes unlisted/private company investment.
†
New purchase during the period.
Name Business
Value
£’000
% of total
assets *
TSMC Semiconductor manufacturer 169,146 6.2
The Schiehallion Fund Global unlisted growth equity investment company 149,081 5.4
NVIDIA Graphics processing, gaming, AI technology 134,159 4.9
Alphabet Online search engine 113,042 4.1
Amazon.com Online retailer and cloud computing platform 83,381 3.0
Microsoft Software and cloud computing 71,282 2.6
Meta Platforms Social networking website 63,483 2.3
Royalty Pharma Biopharmaceutical royalties portfolio 61,932 2.3
Samsung Electronics Multinational technology 61,320 2.2
Tencent Holdings
†
Chinese social media and gaming giant 60,900 2.2
Martin Marietta Materials Cement and aggregates manufacturer 52,693 1.9
Service Corporation International Funeral and crematoria services 50,937 1.9
Mastercard Electronic payments network and related services 47,948 1.7
CRH Diversified building materials 47,176 1.7
CATL Battery manufacturer 46,882 1.7
ByteDance
Online content platform including TikTok 42,855 1.6
Petroleo Brasileiro Oil exploration and production 40,995 1.5
Ryanair Low cost European airline 38,832 1.4
Space Exploration Technologies
Space rockets and satellites 38,753 1.4
B3 Group Brazilian stock exchange operator 36,315 1.3
Texas Instruments Semiconductors 35,608 1.3
Elevance Health Healthcare insurer 32,381 1.2
ON Semiconductor Semiconductors Supplier Company 31,559 1.2
MSCI
†
Global provider of investment indexes, tools, and analytics 30,691 1.1
EOG Resources
†
US shale oil and natural gas producer 28,939 1.1
Stripe
Payments platform 28,758 1.0
Ensign
†
Operates skilled nursing and rehabilitation centres in multiple states 27,209 1.0
Netflix Subscription service for TV shows and movies 26,396 1.0
DoorDash Online commerce platform 25,680 0.9
Shopify Online commerce platform 25,566 0.9
The Monks Investment Trust PLC
25
Name Business
Value
£’000
% of total
assets *
Thermo Fisher Scientific Scientific instruments, consumables and chemicals 25,457 0.9
Keyence
†
Manufacturer of sensors 25,314 0.9
Comfort Systems USA HVAC systems and solutions 24,860 0.9
Richemont Luxury goods 24,298 0.9
Moody's Credit rating agency 23,904 0.9
Applovin Connects businesses and developers to audiences in-app, on
mobile and across streaming TV
23,644 0.9
Stella-Jones Industrial pressure treated wood products manufacturer 23,574 0.9
Autozone Automotive replacement parts and accessories 23,477 0.9
CBRE Group Commercial real estate 23,416 0.9
Eaton Industrial engineering products 22,917 0.8
Epiroc Construction and mining machinery 22,808 0.8
Philip Morris
†
Global tobacco company transitioning to smoke-free nicotine
products
22,436 0.8
Markel Markets and underwrites speciality insurance products 21,934 0.8
Chugai Pharmaceutical
†
Innovative Japanese pharmaceutical company 21,310 0.8
Dollar General
†
Operates a chain of discount retail stores 21,155 0.8
MercadoLibre Latin American ecommerce platform 20,990 0.8
Poste Italiane
†
Italian delivery and financial services leader 20,614 0.8
Nu Holdings Latin American digital banking and financial services 20,079 0.7
EQT Corp
†
US producer of natural gas 19,831 0.7
Advanced Drainage Systems Manufacturer of pipes and drainage systems 19,624 0.7
QXO
†
Building materials distributor 19,367 0.7
Disco Corporation Specialist cutting for semiconductors 19,255 0.7
Novo Nordisk Diabetes and weight loss treatment 18,916 0.7
Adyen Digital payments 18,842 0.7
United Overseas Bank
†
Southeast Asian Bank 18,464 0.7
Brookfield Asset management company. 18,278 0.7
Midea Group 'A'
†
Chinese HVAC and white goods company 18,038 0.7
Credicorp
†
Peruvian banking, payments and financial services 17,839 0.7
SEB
†
Swedish commercial bank 17,810 0.6
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
Denotes unlisted/private company investment.
†
New purchase during the period.
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Annual Report and Financial Statements 2026
26
Name Business
Value
£’000
% of total
assets *
Nexans Manufacturer of cables and electrical parts 17,595 0.6
Edenred Prepaid services company 17,249 0.6
Uber Technologies Multinational transportation company 17,220 0.6
Samsara
†
Provides technology to track and manage vehicles, equipment,
and operations
16,925 0.6
Games Workshop
†
Manufacturer and retailer of table top wargames and miniature
figurines
16,599 0.6
Brunswick Corp Recreational boats, marine engines, marine parts and
accessories
16,318 0.6
Freeport-McMoran Copper
†
Copper and gold miner 16,187 0.6
Medpace
†
Runs and manages clinical trials for biotech and pharmaceutical
companies
15,233 0.6
Kweichow Moutai Spirits manufacturer 14,958 0.5
Tidewater
†
Provides offshore service vessels for the energy industry 14,846 0.5
Kokusai Electric Semiconductor manufacturer 14,581 0.5
AeroVironment Reconnaissance and defence drones 14,544 0.5
Mediatek
†
Smartphone and AI chip designer 14,488 0.5
Paycom Software Data analytical software products to manage the employment
lifecycle
14,403 0.5
Auto Trader
†
The UK’s leading used car website 13,904 0.5
Alnylam Pharmaceuticals RNA interference based biotechnology 13,663 0.5
CoStar Commercial property portal 13,495 0.5
Dino Polska
†
Polish discount supermarket chain 13,273 0.5
Nippon Paint Japanese paint manufacturer 13,065 0.5
Medline
†
Medical supplies distributor 12,395 0.5
Datadog Cloud based IT system monitoring application 11,864 0.4
Dutch Bros Coffee and drinks retailer 11,707 0.4
Cosmos Pharmaceutical Drug store chain 11,613 0.4
Coinbase
†
Cryptocurrency trading and investment platform 11,263 0.4
Sea Limited Online and digital gaming 10,922 0.4
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
Denotes unlisted/private company investment.
†
New purchase during the period.
The Monks Investment Trust PLC
27
Name Business
Value
£’000
% of total
assets *
Spotify Online music streaming service 10,786 0.4
Cloudflare Cloud based IT services 9,822 0.4
Epic Games
Gaming software developer 8,228 0.3
Auto1
†
Online platform for buying and selling used cars in Europe 7,371 0.3
WillScot Holdings Specialises in bespoke building space solutions 7,155 0.3
Ant International
Chinese online payments and financial services business 4,750 0.2
Enphase Energy Provider of energy management solutions 4,174 0.2
Silk Invest Africa Food Fund
Africa focused private equity fund 2,551 0.1
Illumina CVR
Gene sequencing business 53 <0.1
Abiomed CVR Medical implant manufacturer – -
Sberbank of Russia
Russian commercial bank – -
Total investments 2,735,550 99.8
Net liquid assets* 4,496 0.2
Total assets 2,740,046 100.0
Borrowings (222,905) (8.1)
Shareholders’ funds 2,517,141 91.9
Listed
equities
%
Schiehallion
Fund
#
%
Unlisted
securities
‡
%
Net liquid
assets *
%
Total
assets *
%
30 April 2026 89.8 5.4 4.6 0.2 100.0
30 April 2025 93.7 2.7 3.1 0.5 100.0
* For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
Denotes unlisted/private company investment.
Denotes suspended investment.
†
New purchase during the period.
Complete sales during the period were: AIA, Arthur J. Gallagher, ASM International, Atlas Copco, Bellway, BHP, Block, Builders FirstSource, Coupang,
CyberAgent, Entegris, Floor & Decor Holdings, FTAI Aviation, Genmab, ICICI Prudential Life Insurance, Li Auto, LVMH, Mobileye, Neogen Corp,
Olympus, PDD Holdings, Prosus, Rakuten, Reliance Industries, S&P Global, Salesforce.com, Sartorius Stedim Biotech, SMC, Soitec, Topicus.com, The
Trade Desk, UnitedHealth, Walt Disney, YETI Holdings.
#
The Schiehallion Fund a listed closed ended investment company, is managed by Baillie Gifford. The Company’s holding in The Schiehallion Fund is
excluded from its assets when calculating themanagement fee. See note 3 on page 92.
‡
Includes holdings in preference shares, ordinary shares and contingent value rights (CVR).
Strategic report
Annual Report and Financial Statements 2026
28
We aim to hold our private company investments
at‘fair value’ i.e. the price that would be paid in an
open-market transaction. Valuations are adjusted
both during regular valuation cycles and on an
adhoc basis in response to ‘trigger events’.
Ourvaluation process ensures that private companies
are valued in both a fair and timely manner.
The valuation process is overseen by a valuations
committee at Baillie Gifford which takes advice
froman independent third party (S&P Global).
Theportfolio managers feed into the process,
butthe valuations committee owns the process and
the portfolio managers only receive final valuation
notifications once they have been applied.
We revalue the private holdings on a three-month
rolling cycle, with one-third of the holdings
reassessed each month. For investment trusts,
theprices are also reviewed twice per year by the
respective investment trust boards and are subject
to the scrutiny of external auditors in the annual
audit process.
Beyond the regular cycle, the valuations team also
monitors the portfolio for certain ‘trigger events’.
These may include: changes in fundamentals; a
takeover approach; an intention to carry out an IPO;
or changes to the valuation of comparable public
companies. The valuations team also monitors
relevant market indices on a weekly basis and
updates valuations in a manner consistent with our
external valuer’s (S&P Global) most recent valuation
report where appropriate. When market volatility is
particularly pronounced the team do these checks
daily. Any ad hoc change to the fair valuation of any
holding is implemented swiftly and reflected in the
next published net asset value.
In addition to the 4.6% of the portfolio holdings in
direct private company investments, 5.4% of the
portfolio is in The Schiehallion Fund, a listed closed
ended investment company investing predominantly
in private companies, which is valued at its publicly
available market price.
Baillie Gifford – valuing
private companies
29
The Monks Investment Trust PLC
Portfolio
positioning
as at 30 April 2026
*
†
Although the Managers’ approach to stock picking is resolutely ‘bottom-up’ in nature
it is essential to understand the risks of each investment and, in turn, where there may
be concentrations of exposures. Thecharts below outline some key exposures of the
portfolio at the Company’s year end.
Sectoral
Geographical
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
Geographical region % at
30 April
2026
% at
30 April
2025
1 North America 5 7. 5 58.0
2 Emerging Markets 20.9 13.9
3 Continental Europe 10.0 16.3
4 United Kingdom 6.5 3.4
5 Japan 3.8 5.1
6 Developed Asia 1.1 2.8
7 Net liquid assets 0.2 0.5
* Expressed as a percentage of total assets.
†
For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
Past performance is not a guide to future performance.
Sector % at
30 April
2026
% at
30 April
2025
1 Technology 33.9 34.1
2 Industrials 18.0 19.3
3 Financials 14.4 10.2
4 Consumer Discretionary 13.7 18.9
5 Healthcare 8.5 9.5
6 Energy 4.0 2.0
7 Telecommunications 2.2 0.6
8 Consumer Staples 2.2 1.7
9 Basic Materials 1.5 1.7
10 Real Estate 1.4 1.5
11 Net liquid assets 0.2 0.5
Strategic report
Annual Report and Financial Statements 2026
30
One year
summary
The following information
illustrates how Monks has
performed over the year
to30April 2026.
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
†
Key Performance Indicator.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 116.
Past performance is not a guide to future performance.
30 April
2026
30 April
2025 % change
Total assets
(before deduction of borrowings)
£2,740.0m £2,542.3m
Borrowings (at book value) £222.9m £223.4m
Shareholders’ funds £2,517.1m £2,318.9m
Net asset value per ordinary share
(borrowings at par)*
1,598.6p 1,235.9p 29.3
Net asset value per ordinary share
(borrowings at fair value)*
1,635.1p 1,265.2p 29.2
Share price 1,542.0p 1,138.0p 35.5
FTSE World Index
(in sterling terms)
28.6
Ongoing charges*
†
0.44% 0.43%
Discount
(to NAV with borrowings at par)*
(3.5%) (7.9%)
Discount
(to NAV with borrowings at fair value)*
†
(5.7%) (10.1%)
Active share* 79% 80%
Revenue earnings per ordinary share 2.31p 1.75p 32.0
Dividends paid and payable in respect
of the year
0.90p 0.50p 80.0
Gross gearing* 8.9% 9.6%
Net gearing* 8.5% 8.9%
31
The Monks Investment Trust PLC
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
†
Key performance indicator.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 116.
Past performance is not a guide to future performance.
Year to 30 April 2026 2025
Total return performance (%)*
Net asset value per ordinary share (borrowings at par)
†
29.4 (0.4)
Net asset value per ordinary share (borrowings at fair value)
†
29.3 0.1
Share price
†
35.6 (1.5)
FTSE World Index (in sterling terms) 31.0 5.3
Year to 30 April 2026 2026 2025 2025
Year’s high and low High Low High Low
Net asset value per ordinary share (borrowings at par)* 1,614.6p 1,248.6p 1,477.7p 1,137.6p
Net asset value per ordinary share (borrowings at fair value)* 1,650.9p 1,277.5p 1,504.2p 1,167.5p
Share price 1,564.0p 1,164.0p 1,344.0p 1,036.0p
Discount (borrowings at fair value)*
†
(4.3%) (11.2%) (7.2%) (15.6%)
Year to 30 April 2026 2025
Net return per ordinary share
Revenue 2.31p 1.75p
Capital 366.24p (10.08p)
Total 368.55p (8.33p)
Strategic report
Annual Report and Financial Statements 2026
32
Premium/(discount)* to NAV
‡
(figures plotted on a monthly basis)
20262021 2022 2023 2024 2025
Years to 30 April
● Premium/(discount)
Source: LSEG/Baillie Gifford.
(20%)
(15%)
10%
5%
0%
(10%)
(5%)
* See Glossary of terms and Alternative Performance Measures on pages 120 to 124.
†
See disclaimer on page 116.
#
The comparative index is the FTSE World Index (in sterling terms).
‡
With borrowings deducted at fair value.
Past performance is not a guide to future performance.
Five year total return performance
(figures rebased to 100 at 30 April 2021)
20262021 2022 2023 2024 2025
Cumulative to 30 April
● NAV
‡
● Share price ● Index#
Source: LSEG/Baillie Gifford and relevant underlying index providers
†
.
Dividends are reinvested.
50
250
200
150
100
Five year
summary
The following charts indicate
how an investment in
Monkshas performed
relativeto its comparative
index and its underlying NAV
*
over the five year period
to30April 2026.
33
The Monks Investment Trust PLC
20262022 2023 2024 2025
Years to 30 April
● NAV
†
● Share price
Source: LSEG/Baillie Gifford and relevant underlying index providers
#
.
(40%)
(20%)
20%
0%
* See Glossary of terms and Alternative Performance Measures on pages 120 to 124.
†
With borrowings deducted at fair value.
#
See disclaimer on page 116.
‡
The comparative index is the FTSE World Index (in sterling terms).
Past performance is not a guide to future performance.
Annual NAV and share price total returns*
(relative to the index
‡
)
Annual NAV and share price total returns*
2026
2022
2023 2024 2025
Years to 30 April
● NAV
†
● Share price
Source: LSEG/Baillie Gifford and relevant underlying index providers
#
.
(60%)
60%
40%
20%
0%
(40%)
(20%)
Strategic report
Annual Report and Financial Statements 2026
34
Capital
At
30 April
Total
assets
£’000 *
Borrowings
£’000
Shareholders’
funds
£’000
NAV per share
(par) *
†
p
NAV per share
(fair) *
†
p
Share
price
p
(Discount)/
premium
(par) *
†
%
(Discount)/
premium
(fair) *
†
%
2016 1,096,804 85,855 1,010,949 472.4 470.1 425.3 (10.0) (9.5)
2017 1,521,130 107,056 1,414,074 660.8 656.8 653.0 (1.2) (0.6)
2018 1,759,541 103,007 1,656,534 762.8 759.0 785.0 2.9 3.4
2019 2,001,977 139,162 1,862,815 852.1 848.9 883.0 3.6 4.0
2020 2,107,386 143,762 1,963,624 878.3 875.6 914.0 4.1 4.4
2021 3,344,768 139,788 3,204,980 1,355.3 1,358.1 1,396.0 3.0 2.8
2022 2,693,990 214,826 2,479,164 1,089.0 1,099.8 1,051.0 (3.5) (4.4)
2023 2,617,738 174,858 2,442,880 1,058.5 1,080.0 975.0 (7.9) (9.7)
2024 2,884,313 223,176 2,661,137 1,242.7 1,266.1 1,158.0 (6.8) (8.5)
2025 2,542,321 223,415 2,318,906 1,235.9 1,265.2 1,138.0 (7.9) (10.1)
2026 2,740,046 222,905 2,517,141 1,598.6
1,635.1 1,542.0 (3.5) (5.7)
Ten year
record
Source: LSEG/Baillie Gifford. See disclaimer on page 116.
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 to 124.
†
Alternative Performance Measure.
Past performance is not a guide to future performance.
Revenue Gearing ratios
Year to
30 April
Gross
revenue
£’000
Available
for ordinary
shareholders
£’000
Revenue
earnings per
ordinary share
p
Dividends paid
and proposed
per share
p
Ongoing
chargesratio *
†
%
Net
(equity)
gearing *
%
Gross
gearing *
%
2016 15,149 4,954 2.31 1.50 0.59 7 8
2017 17,593 5,043 2.36 1.25 0.59 7 8
2018 19,759 5,588 2.61 1.40 0.52 5 6
2019 23,268 7,186 3.30 1.85 0.50 6 7
2020 26,691 9,319 4.24 2.50 0.48 6 7
2021 22,529 7,801 3.42 2.00 0.43 1 4
2022 27,811 8,644 3.67 2.35 0.40 7 9
2023 30,211 10,714 4.70 3.15 0.43 5 7
2024 29,888 8,241 3.68 2.10 0.44 7 8
2025 25,953 3,516 1.75 0.50 0.43 9 10
2026 25,575 3,957 2.31 0.90 0.44 9 9
35
The Monks Investment Trust PLC
Source: Baillie Gifford/LSEG and underlying data providers. See disclaimer on page 116.
* See Glossary of terms and Alternative Performance Measures on pages 120 to 124
†
FTSE World Index (in sterling terms).
Past performance is not a guide to future performance.
Cumulative performance (taking 2016 as 100)
At 30 April
NAV per
share (fair)
NAV total
return(fair) *
Share
price
Share price
totalreturn * Index
†
Index
totalreturn
†
Revenue
earnings
per ordinary
share
Dividends
paid and
proposed
per ordinary
share
2016 100 100 100 100 100 100 100 100
2017 140 140 154 154 128 131 102 83
2018 161 162 185 185 134 141 113 93
2019 181 182 208 209 146 157 143 123
2020 186 188 215 217 141 156 184 167
2021 289 292 328 332 185 208 148 133
2022 234 237 247 250 192 221 159 157
2023 230 233 229 232 194 228 203 210
2024 269 274 272 277 226 272 159 140
2025 269 274 268 273 234 286 76 33
2026 348 354 363 370 301 375 100 60
Compound annual returns (%)
5 year 3.8 4.0 2.0 2.2 10.2 12.5 (7.5) (0.2)
10 year 13.3 13.5 13.7 14.0 11.6 14.1 0.0 (0.1)
Cumulative to 30 April
20262016 2018 2021 2023 20252017 20202019 2022 2024
● Share price
*
● NAV (fair)
*
● Index
*†
0
50
100
150
200
250
300
350
400
Ten year total return performance
*
Strategic report
Annual Report and Financial Statements 2026
36
37
The Monks Investment Trust PLC
Business model
Business and status
The Monks Investment Trust PLC (‘the Company’) is
a public company limited by shares and incorporated
in England and Wales with its registered office
address at 3StHelen’s Place, London EC3A6AB.
The Company is an investment company within the
meaning of section 833 of the Companies Act 2006
and carries on business as an investment trust.
Investment trusts are UK public listed companies
and their shares are traded on the London Stock
Exchange. They invest in a portfolio of assets in
order to spread risk. The Company has a fixed share
capital although, subject to shareholder approval
sought annually, it may purchase its own shares
orissue shares. The price of the Company’s shares
is determined, like other listed shares, by supply
anddemand.
The Company has been approved as an investment
trust by HM Revenue & Customs subject to
the Company continuing to meet the eligibility
conditions. The Directors are of the opinion that the
Company has continued to conduct its affairs so as
to enable it to comply with the ongoing requirements
of section 1158 of the Corporation Tax Act 2010 and
the Investment Trust (Approved Company) (Tax)
Regulations 2011.
The Company is an Alternative Investment Fund
(‘AIF’) for the purposes of the UK Alternative
Investment Fund Managers Regulations.
Purpose
The Monks Investment Trust aims to deliver above
average long-term returns for shareholders by
harnessing the long-term growth potential of
companies and keeping fees and costs low.
Business review
Objective and policy
The Company’s objective is to invest globally to
achieve capital growth. This takes priority over
income and dividends. Monks seeks to meet its
objective by investing principally in a portfolio of
global quoted equities. Equities are selected for
their inclusion within the portfolio solely on the basis
of the strength of the investment case. There are
no limits to geographical or sector exposures, but
these are reported to, and monitored by, the Board
in order to ensure that adequate diversification
is achieved. The number of holdings in equities
typically ranges from 70 to 200. At the financial
year end, the portfolio contained 95 equity holdings.
A portfolio review by the investment managers
is given on pages 9 to 13 and the investments
held at the year end are listed on pages 24 to 27.
Investment may also be made in funds (open and
closed-ended) including those managed by Baillie
Gifford & Co. The maximum permitted investment
in UK listed investment companies in aggregate
is 15% of gross assets. Asset classes other than
quoted equities may be purchased from time to time
including fixed interest holdings, unquoted securities
and derivatives. The Company may use derivatives
for the purpose of efficient portfolio management
(including reducing, transferring or eliminating
investment risk in its investments and protection
against currency risk) and to achieve capital growth.
Due to the bottom-up investment approach, the
portfolio may differ substantially from the index. A
long-term viewis taken and there may be periods
when the netasset value per share declines both in
absolute terms and relative to the comparative index.
Payment of dividends is secondary to achieving
capital growth. The shares are not considered to
bea suitable investment for those seeking a regular
or rising income.
Strategic report
Annual Report and Financial Statements 2026
38
Borrowings are invested in equities and other asset
classes when this is considered to be appropriate on
investment grounds. Gearing levels are discussed
by the Board and investment managers at every
Board meeting and adjusted accordingly with
regard to the outlook. New borrowings will not be
taken out if this takes the level of effective equity
gearing to over 30% of shareholders’ funds. Equity
exposure may, on occasions, be below 100% of
shareholders’funds.
Culture and values
In the context of a company with no employees,
culture and values are expressed by the Company’s
Directors and the service providers with whom
shareholders and other stakeholders interact, and
through the relationships between the Board and
those service providers, including the Managers.
Asnoted in more detail in the section 172 statement
on pages 45 to 47 the Board seeks to engage
with its Managers and other service providers in a
collaborative and collegiate manner, and to maintain
the highest standards of business conduct.
Performance
At each Board meeting, the Directors consider
anumber of performance measures to assess
theCompany’s success in achieving its objectives.
Key Performance Indicators
The Board uses performance indicators (KPIs)
to measure the progress and performance of the
Company over time when discharging its duties
as set out on page 59 and when evaluating the
Managers as noted on page 55. These KPIs are
established industry measures and are as follows:
• the movement in net asset value per ordinary
share on a total return basis;
• the movement in the share price on a total
returnbasis;
• the premium/discount; and
• ongoing charges.
An explanation of these measures can be found in
the Glossary of terms and Alternative Performance
Measures on pages 120 to 124. The one, five and
tenyear records of the KPIs are shown on pages 30
to 36.
In addition to the above, the Board also has regard
to the total return of the Company’s principal
comparative index (FTSE World Index in sterling
terms) and considers the performance of comparable
companies.
Value assessment
Baillie Gifford & Co Limited undertakes regular
value assessments of its products. Following the
assessment in 2026, it was concluded that the
Company was expected to provide fair value for
areasonably foreseeable period.
Borrowings
The Company’s borrowings were unchanged during
the year.
Further details of the Company’s borrowings are set
out in notes 11 and 12 on pages 96 and 97 and details
of the Company’s gearing levels are included in the
Chairman’s Statement on page 6 and the Ten Year
Record on page 34.
39
The Monks Investment Trust PLC
Principal and emerging risks
As explained on pages 63 and 64 there is an ongoing
process for identifying, evaluating and managing the
risks faced by the Company on a regular basis. The
Directors have carried out a robust assessment of
the principal and emerging risks facing the Company,
including those that would threaten its business
model, future performance, solvency or liquidity. In
light of the requirements of Provision 29 of the UK
Corporate Governance Code and Provision 34 of the
AIC Code the Board continues to review and enhance
the Company’s risk management and internal
controls framework in preparation for compliance
with the enhanced reporting requirement applicable
for financial years beginning on or after 1 January
2026. This review is focused on identifying the
Company’s material risks, being those which could
have the most significant impact on the Company’s
ability to achieve its investment objective and
continue in operation, and on assessing the material
controls in place to manage or mitigate those risks.
The Board considers that the following represent
the Company’s material risks. These will form the
basis for the Board’s future assessment of the
effectiveness of the Company’s material controls.
Further information on the Board’s oversight of risk
management and internal controls, including the
Audit Committee’s review of the Company’s internal
control environment, is set out in the Corporate
Governance Report on page 59 and the Audit
Committee Report on pages 67 to 69. Adescription
of these risks and how they are being managed or
mitigated is set out below.
The rating and change has been included to show
if the risk is high (red), moderate (amber) or low
(green) and an upwards arrow, dash or downwards
arrow has been included to show if the risk level has
increased, remained stable, or decreased since it
was last reported in last year’s Annual Report and
Financial Statements. The Board considers heightened
macroeconomic and geopolitical concerns to be
factors which exacerbate existingrisks, rather than
discrete risks, within thecontext of an investment trust.
Their impact isconsidered within the relevant risks.
Investment and strategic risks
Investment
strategy risk
What is the risk?
Pursuing an investment
strategy to fulfil the Company’s
objective which the market
perceives to be unattractive or
inappropriate, or the ineffective
implementation of an attractive
or appropriate strategy, may
lead to reduced returns for
shareholders and, as a result,
a decreased demand for the
Company’s shares. This may
lead to the Company’s shares
trading at a widening discount
to their net asset value.
How is it managed?
To mitigate this risk, the Board
regularly reviews and monitors:
the Company’s objective and
investment policy and strategy;
the investment portfolio
and its absolute and relative
performance; the level of
discount/premium to net asset
value at which the shares trade;
and movements in the share
register, and raises any matters
of concern with the Managers.
Rating and
change
Current assessment of risk
This risk is considered to
have increased. The market
appetite for growth investing is
considered to have deteriorated
over recent months as investors
shift to assets perceived to be
safe or offering insulation from
market volatility.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Strategic report
Annual Report and Financial Statements 2026
40
Financial
risk
What is the risk?
The Company’s assets consist
mainly of listed securities and
its principal and emerging
financial risks are therefore
market related and include
market risk (comprising
currency risk, interest rate
risk and other price risk),
liquidity risk and credit risk.
An explanation of those risks
and how they are managed
is contained in note 19 to
the Financial Statements on
pages 103 to 106.
How is it managed?
In order to oversee this risk, the
Board considers at each meeting
various metrics including the
composition and diversification
of the portfolio by geography,
industry, growth category and
holding size along with sales
and purchases of investments.
Individual investments are
discussed with the portfolio
managers together with their
general views on the various
investment markets and sectors.
A strategy meeting is held
annually. The Board has, in
particular, considered the impact
of heightened market volatility
owing to macroeconomic and
geopolitical concerns. The value
of the Company’s investment
portfolio would be affected by any
impact, positively or negatively,
on sterling but such impact would
be partially offset by the effect
of exchange rate movements
on the Company’s euro and yen
denominated borrowings.
Rating and
change
Current assessment of risk
This risk is considered to be
high but remained stable given
the ongoing market volatility.
The external environment
continues to be characterised
by heightened geopolitical
tensions, including ongoing
conflicts and shifting global
alliances, together with greater
unpredictability in government
policy and international trade
dynamics, which may contribute
to increased market volatility
and uncertainty.
Discount
risk
What is the risk?
The discount/premium at
which the Company’s shares
trade relative to its net asset
value can change. The risk of
a widening discount is that
it may undermine investor
confidence in the Company.
How is it managed?
To manage this risk, the Board
monitors the level of discount/
premium at which the shares
trade and the Company has
authority to buy back its existing
shares or issue shares (including
authority to sell shares held
in treasury), when deemed by
the Board to be in the best
interests of the Company and its
shareholders.
Rating and
change
Current assessment of risk
The Company’s discount has
narrowed during the year. The
Company has been buying back
shares for treasury since January
2022, and over the course of
the Company’s financial year
30million shares were bought
back. The Company held a
General Meeting on 23 June
2026 to renew the share buy
back authority.
Political and
associated
economic
risk
What is the risk?
Political change in areas in
which the Company invests
ormay invest may have
practical consequences
forthe Company.
How is it managed?
To mitigate this risk,
developments are closely
monitored and considered by the
Board. The Board has particular
regard to macroeconomic
and geopolitical tensions and
monitors portfolio diversification
by revenue stream where
appropriate, as well as by
investee companies’ primary
location and considers the
potential for negative impacts
arising from military action, trade
barriers orotherpolitical factors.
Rating and
change
Current assessment of risk
This risk is considered to be
high. The external environment
continues to be characterised
by heightened geopolitical
tensions, including ongoing
conflicts and shifting global
alliances, together with greater
unpredictability in government
policy and international trade
dynamics, which may contribute
to increased market volatility
and uncertainty.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
41
The Monks Investment Trust PLC
Climate and
governance
risk
What is the risk?
Perceived problems on
environmental, social and
governance (‘ESG’) matters
in an investee company
could lead to that company’s
shares being less attractive to
investors, adversely affecting
its share price, in addition
to potential valuation issues
arising from any direct impact
of the failure to address
the ESG weakness on the
operations or management
of the investee company
(for example in the event
of an industrial accident or
spillage). Repeated failure
by the Managers to identify
ESG weaknesses in investee
companies could lead to the
Company’s own shares being
less attractive to investors,
adversely affecting its own
share price.
How is it managed?
This is mitigated by the
Managers’ strong ESG
stewardship and engagement
policies, which have been
endorsed by the Company,
and which are fully integrated
into the investment process.
Further details of the Managers’
approach are set out on page15
and also on the Managers’
website bailliegifford.com/esg.
The Directors have considered
the impact of climate change on
the Financial Statements of the
Company and this is included
in note 1a to the Financial
Statements on page 88.
Rating and
change
Current assessment of risk
The Managers continue to
embed analysis of ESG factors
within the investment process.
Regulatory
risk
What is the risk?
Failure to comply with
applicable legal and
regulatory requirements
such as the tax rules for
investment trust companies,
the UK Listing Rules and
the Companies Act could
lead to the Company being
subject to tax on capital
gains, suspension of the
Company’s Stock Exchange
listing, financial penalties
or a qualified audit report.
Changes to the regulatory
environment could negatively
impact the Company.
How is it managed?
To mitigate this risk, Baillie
Gifford’s Business Risk,
Internal Audit and Compliance
Departments provide regular
reports to the Audit Committee
on Baillie Gifford’s monitoring
programmes. Should major
regulatory change seem likely
to impose disproportionate
compliance burdens on the
Company, representations are
made to the relevant authorities
to ensure that the special
circumstances of investment
trusts are recognised.
Shareholder documents and
announcements, including the
Company’s published Interim
and Annual Report and Financial
Statements, are subject to
stringent review processes,
and procedures are in place
to ensure adherence to the
Disclosure and Transparency
Rules with reference to inside
information.
Rating and
change
Current assessment of risk
All control procedures are
working effectively. The
Company continues to operate
within a well-established
regulatory framework and
control procedures are
considered to be operating
effectively.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Strategic report
Annual Report and Financial Statements 2026
42
Third party
service
provider
risk
What is the risk?
Failure or disruption at one
of the Company’s third party
service providers, including
the Managers, depositary,
custodian, registrar or other
key providers, could result
in operational disruption,
inaccurate reporting, loss
of assets, cyber security
breaches, regulatory
non-compliance or an
inability to provide services
to the Company and its
shareholders.
How is it managed?
To mitigate this risk, the Board
and Audit Committee receive
regular reporting from the
Managers and key service
providers on operational
resilience, internal controls,
cyber security, business
continuity and risk management
frameworks. The Audit
Committee reviews internal
controls reports prepared by
the Managers and other service
providers, including independent
assurance reports where
appropriate.
The depositary provides regular
reporting on the safe custody
of the Company’s assets
and oversight activities. The
Managers also perform ongoing
due diligence and monitoring of
third party providers, including
cyber security assessments and
reviews of business continuity
arrangements. Any material
issues identified are reported
to the Board and monitored
through to resolution. Cash
and portfolio holdings are
independently reconciled to
the custodian’s records by
the Managers who also agree
uncertificated unlisted portfolio
holdings to confirmations from
investee companies. In addition,
the existence of assets is subject
to annual external audit and
the custodian’s assured internal
controls reports are reviewed
by Baillie Gifford’s business
risk department and a summary
ofthe key points is reported
tothe Audit Committee and
anyconcerns investigated.
Rating and
change
Current assessment of risk
This risk is considered to be
low and stable – the Board
continues to receive assurance
that control procedures are
operating effectively.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
43
The Monks Investment Trust PLC
Leverage
risk
What is the risk?
The Company may borrow
money for investment
purposes (sometimes known
as ‘gearing’ or ‘leverage’).
Ifthe investments fall in
value, any borrowings will
magnify the impact of this
loss. If borrowing facilities are
not renewed, the Company
may have to sell investments
to repay borrowings. The
Company can also make
use of derivative contracts,
although it does not currently
do so. The use of such
contracts may have a gearing
effect so as to enhance, or
worsen, returns relative to the
amount invested in this way.
How is it managed?
To mitigate this risk, all
borrowings require the prior
approval of the Board and
leverage levels are discussed
by the Board and Managers
at every meeting. Covenant
levels are monitored regularly.
Details of the Company’s current
borrowing facilities and drawings
can be found in notes 11 and 12
on pages 97. The majority of the
Company’s investments are in
quoted securities that are readily
realisable. Further information
on leverage can be found on
page 116 and in the Glossary
of terms and Alternative
Performance Measures on
pages120 to 124.
Rating and
change
Current assessment of risk
No significant change in risk
level.
Cyber
security risk
What is the risk?
A cyber-attack on
BaillieGifford’s network
orthat of a third party
serviceprovider could
impactthe confidentiality,
integrity or availability
ofdataand systems.
How is it managed?
To mitigate this risk, the Audit
Committee reviews Reports
on Internal Controls published
by Baillie Gifford and other
third party service providers.
Baillie Gifford’s Business Risk
Department report to the Audit
Committee on the effectiveness
of information security controls
in place at Baillie Gifford and its
business continuity framework.
Cyber security due diligence
is performed by Baillie Gifford
on third party service providers
which includes a review of crisis
management and business
continuity frameworks.
Rating and
change
Current assessment of risk
This risk is seen as elevated but
stable due to the continuation
of geopolitical tensions that
could lead to more cyber
attacks. Emerging technologies,
including AI, could potentially
increase information security
risks.
Emerging
risks
As explained on page 39 the Board has regular discussions on principal risks and uncertainties,
includinganyrisks which are not an immediate threat but could arise in the longer term.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Strategic report
Annual Report and Financial Statements 2026
44
Viability statement
Having regard to provision 31 of the UK Corporate
Governance Code, the Directors have assessed the
prospects of the Company over a five year period.
The Directors consider this period to be appropriate
as, in the absence of any adverse change to the
regulatory environment and the favourable tax
treatment afforded to UK investment trusts, it is
aperiod over which they do not expect there to be
any significant change to the current principal risks
and to the adequacy of the mitigating controls in
place. The Directors do not envisage any change
in strategy or objectives or any events that would
prevent the Company from continuing to operate
over that period.
In making this assessment the Directors have
taken into account the Company’s current position
and have conducted a robust assessment of the
Company’s principal risks and uncertainties,
including climate change (as detailed on pages39
to 43), in particular the impact of market risk
where a significant fall in global equity markets
would adversely impact the value of the investment
portfolio. The Directors have also considered the
Company’s investment objective and policy, the level
of demand for the Company’s shares, the nature of
its assets, its liabilities and projected income and
expenditure.
The vast majority of the Company’s investments
are readily realisable and can be sold to meet
its liabilities as they fall due, the main liabilities
currently being the revolving credit facility expiring
in 2027, and loan notes repayable in 2030, 2033,
2035, 2037, 2045 and 2054. The Company’s
primary third party suppliers, including its Managers
and Secretaries, custodian and depositary, registrar,
auditor and broker, are not experiencing significant
operational difficulties affecting their respective
services to the Company. In addition, as substantially
all of the essential services required by the Company
are outsourced to third party service providers,
this allows key service providers to be replaced at
relatively short notice where necessary. Specific
leverage and liquidity stress testing was conducted
during the year, including consideration of risk of
market volatility resulting from geopolitical concerns
and macroeconomic pressures. The stress testing
did not indicate any matters of concern.
Based upon the Company’s processes for monitoring
operating costs, share price premium/discount, the
Managers’ compliance with the investment objective,
the portfolio risk profile, leverage, counterparty
exposure, liquidity risk and financial controls, the
Board believes that the prospects of the Company
are sound and the Directors are able to confirm
that they have a reasonable expectation that it will
continue in operation and meet its liabilities as they
fall due over a period of five years.
45
The Monks Investment Trust PLC
Promoting the success of the Company
(section 172 statement)
Under section 172 of the Companies Act 2006,
the directors of a company must act in the way
they consider, in good faith, would be most likely
to promote the success of the company for the
benefit of its members as a whole and, in doing
so, have regard (amongst other matters and to the
extent applicable) to: a) the likely consequences
of any decision in the long term, b) the interests
of the company’s employees, c) the need to
foster the company’s business relationships with
suppliers, customers and others, d) the impact of
the company’s operations on the community and
the environment, e) the desirability of the company
maintaining a reputation for high standards of
business conduct, and f) the need to act fairly as
between members of the company.
In this context, having regard to Monks being an
externally-managed investment company with no
employees, the Board considers the Company’s key
stakeholders to be: its existing and potential new
shareholders; its externally-appointed Managers
(Baillie Gifford); other professional service providers
(corporate broker, registrar and depositary); lenders;
wider society and the environment.
The Board considers that the interests of the
Company’s key stakeholders are aligned, in terms
of wishing to see the Company deliver sustainable
long-term growth, in line with the Company’s
stated objective and strategy, and meet the highest
standards of legal, regulatory, and commercial
conduct, with the differences between stakeholders
being merely a matter of emphasis on those
elements. The Board’s methods for assessing
the Company’s progress in the context of its
stakeholders’ interests are set out below.
Stakeholder Why we engage How we engage and what we do
Shareholders Shareholders are, collectively, the
Company’s owners: providing them with
areturn for their investment in accordance
with the Company’s investment policy and
objective is the reason for its existence.
The Board places great importance on communication with
shareholders. The Annual General Meeting provides the key
forum for the Board and Managers to present to shareholders
on the Company’s performance, future plans and prospects.
The Chairman is available to meet with shareholders as
appropriate. The Managers meet regularly with shareholders and
their representatives, reporting their views back to the Board.
Directors also attend certain shareholder presentations, in order
to gauge shareholder sentiment first hand. Shareholders may
also communicate with members of the Board at any time by
writing to them at the Company’s registered office or to the
Company’s broker. These communication opportunities help
inform the Board when considering how best to promote the
success of the Company for the benefit of all shareholders over
the long term.
Baillie Gifford –
Managers and
Secretaries
The Company’s Board has delegated the
management of the Company’s portfolio,
and the administration of the Company’s
operations including fulfilment of regulatory
and taxation reporting requirements, to
Baillie Gifford. Baillie Gifford is therefore
responsible for the substantial activities of
the Company and has the most immediate
influence on its conduct towards the other
stakeholders, subject to the oversight and
strategic direction provided by the Board.
The Board seeks to engage with its Managers in a collaborative
and collegiate manner, encouraging open and constructive
discussion and debate, while also ensuring that appropriate
and regular challenge is brought and evaluation conducted.
This approach aims to enhance service levels and strengthen
relationships with the Company’s providers, with a view to
ensuring the interests of the Company’s shareholders are best
served, by keeping cost levels proportionate and competitive
and by maintaining the highest standards of business conduct.
Strategic report
Annual Report and Financial Statements 2026
46
Stakeholder Why we engage How we engage and what we do
Portfolio
companies
As all of the Company’s operations are
conducted by third party professional
providers, it is the companies held in its
investment portfolio which have the primary
real-world impact in terms of social and
environmental change, both positively
and negatively, as well as generating,
through their commercial success, the
investment growth sought by the Company’s
shareholders. The investee companies
have an interest in understanding their
shareholders’ investment rationale in
order to assure themselves that long-term
business strategies will be supported.
The Board is cognisant of the need to consider the impact of
theCompany’s investment strategy and policy on wider society
and the environment. The Board considers that its oversight
ofenvironmental, social and governance (‘ESG’) matters
isanimportant part of its responsibility to all stakeholders.
TheBoard’s review of the Managers includes an assessment of
their ESG approach and its application in making investment
decisions. The Board regularly reviews Governance Engagement
reports, which document the Managers’ interactions with
investee companies on ESG matters (see page 15).
Brokers The Company’s brokers provide an interface
between the Company’s Board and its
institutional shareholders.
The Company’s brokers regularly attend Board meetings, and
provide reports to those meetings, in order to keep the Board
apprised of shareholder and wider market sentiment regarding
the Company. They also arrange forums for shareholders to
meet the Chairman, or other Directors, outwith the normal
general meeting cycle.
Registrars The Company’s registrars provide an
interface with those shareholders who hold
the Company’s shares directly.
The Company Secretaries liaise with the registrars to ensure the
frequency and accuracy of communications to shareholders is
appropriate, and monitor shareholder correspondence to ensure
that the level of service provided by the registrars is acceptable.
The Manager’s risk function reviews the registrars’ internal
controls report and reports on the outcome of this review to the
Audit Committee.
Auditor The Company’s auditor has a responsibility
to provide an opinion on whether the
Company’s financial statements as a whole
are free from material misstatement, as set
out in more detail in the Auditor’s Report to
the Members on pages 77 to 83.
The Company’s auditor meets with the Audit Committee, in the
absence of the Managers where deemed necessary, and the
Managers undertake to provide all information requested by the
auditor in connection with the Company’s annual audit promptly
and to ensure that it is complete and accurate in all respects.
Depositary and
custodian
The depositary and custodian are
responsible for the safekeeping of the
Company’s financial instruments, as set
outin more detail on page 55.
The depositary provides the Audit Committee with a report
on its monitoring activities. The Board and Managers seek to
engage with the depositary and custodian in a collaborative
and collegiate manner, encouraging open and constructive
discussion and debate, while also ensuring that appropriate
and regular challenge is brought and evaluation conducted.
This approach aims to enhance service levels and strengthen
relationships with the Company’s providers, with a view to
ensuring the interests of the Company’s shareholders are best
served by keeping cost levels proportionate and competitive,
and by maintaining the highest standards of business conduct.
Lenders Lenders such as holders of debt instruments
(debentures, bonds and private placement
loan notes) and banks providing fixed
or revolving credit facilities provide the
Company’s gearing and have an interest
inthe Company’s ongoing financial health
and viability.
The Company’s legal advisers review all legal agreements in
connection with the Company’s debt arrangements and advise
the Board on the appropriateness of the terms and covenants
therein. The Managers and Secretaries ensure that the
frequency and accuracy of reporting on, for example, covenant
certification, is appropriate and that correspondence from the
lenders receives a prompt response.
AIC/industry peers The Association of Investment Companies
(‘AIC’) and the Company’s investment
trustindustry peers have an interest in
theCompany’s conduct and performance,
as adverse market sentiment towards one
investment trust can affect attitudes towards
the wider industry.
The Company is a member of the AIC, and the Directors and/
or the Managers and Secretaries (as appropriate) participate in
technical reviews, requests for feedback on proposed legislation
or regulatory developments, corporate governance discussions
and/or training.
47
The Monks Investment Trust PLC
Stakeholder Why we engage How we engage and what we do
Investment
platforms
Investment platforms provide an interface
with shareholders who invest in the
Company indirectly.
The Managers liaise with the various investment platforms on
strategies for improving communications with the Company’s
shareholders who hold their shares via these platforms. An
annual timetable of key dates is published on the Company’s
website, for the ease of reference of such shareholders.
Wider society and
the environment
No entity, corporate or otherwise, can
exist without having an influence on the
society in which it operates or utilising the
planet’s resources. Through its third-party
relationships, as noted above, the Company
seeks to be a positive influence and, in
circumstances where that is not possible,
tomitigate its negative impacts insofar as
ispossible.
The Board and Managers’ interactions with the various
stakeholders as noted above form the principal forms of
direct engagement with wider society and in respect of the
environment (commercial, financial, and in terms of planetary
health and resources).
The Board recognises the importance of keeping
the interests of the Company’s shareholders, and
of acting fairly between them, firmly front of mind in
its key decision making. The Company Secretaries
are at all times available to the Board to ensure
that suitable consideration is given to the range of
factors to which the Directors should have regard.
In addition to ensuring that the Company’s stated
investment objective was being pursued, key
decisions and actions during the year which required
the Directors to have regard to applicable section
172 factors included:
• buying back over 30 million of the Company’s own
shares into treasury for subsequent reissue, at
a discount tonetassetvalue, in order to ensure
the Company’s shareholders found liquidity
for their shares when natural market demand
was insufficient, and on terms that enhanced
NAVpershare for remaining shareholders;
•
renewal of buy back authority at a General
Meeting held on 23 June 2026 in order to provide
the Company with sufficient authority to continue
to operate its share buy back programme;
• the decision to declare a dividend of 0.90p,
building in headroom to allow for further buybacks
in view of continuing market volatility, such that
the total dividend paid will nevertheless exceed
the minimum distribution permissible under
investment trust regulations, balancing the careful
preservation of the tax benefits of investment
trust status with the ambition to retain funds for
reinvestment, consistent with Monks’ growth focus
and its shareholders’ priorities; and
• as part of the Board’s succession planning,
appointed Stacey Parrinder-Johnson as Senior
Independent Director with effect from 1 January
2026, and Chair of the Nomination committee with
effect from 1 May 2026.
Strategic report
Annual Report and Financial Statements 2026
48
Employees, human rights and
communityissues
The Board recognises the requirement to provide
information about employees, human rights
and community issues. As the Company has no
employees, all its Directors are non-executive
and all its functions are outsourced, there are no
disclosures to be made in respect of employees,
human rights and community issues.
Board representation
The Board’s policy on diversity and relevant
disclosures are set out on pages 61 and 62.
Environmental, social and governance policy
Details of the Company’s policy on socially
responsible investment can be found under
Corporate Governance and Stewardship on page 65.
The Company considers that it does not fall within
the scope of the Modern Slavery Act 2015 and it is
not, therefore, obliged to make a slavery and human
trafficking statement. In any event, the Company
considers its supply chains to be of low risk as
itssuppliers are typically professional advisers.
Astatement by the Managers under theAct has
beenpublished on the Managers’ website at
bailliegifford.com.
Future developments of the Company
The outlook for the Company is dependent to a
significant degree on economic events and the
financial markets. Potential threats are discussed
in the Principal risks analysis on pages 39 to 43
and factors which the Board consider to indicate
the Company’s positive prospects and financial
health are discussed in the Viability statement on
page 44. Further comments on the outlook for the
Company and its investment portfolio are set out
inthe Chairman’sstatement on pages 5 to 8 and the
Managers’ report on pages 9 to 13.
The Strategic report which includes pages 5 to 48
was approved by the Board of Directors and signed
on its behalf on 30 June 2026.
Randeep Grewal
Chairman
Governance
report
This Governance report, which includes
pages 50 to 75 outlines the Board’s
approach to the governance of your
Company. We believe that good governance
builds better outcomes and we are
committed to high standards of corporate
governance and transparency.
Governance report
Annual Report and Financial Statements 2026
50
Directors and
managers
Directors
Randeep Grewal
Chairman
Appointed to the
Board in 2024
and as Chairman
in 2025
Randeep Grewal was appointed a Director in 2024
and became Chairman in 2025. He is a non-executive
director of the Global Smaller Companies Trust plc.
Having read Medicine and Computer Science at
Jesus College, Cambridge, he trained as a vascular
surgeon before transferring his skills in healthcare
and technology to working as an analyst and portfolio
manager with Tudor Capital in 1998. He was a senior
portfolio manager at F&C Asset Management from
2010 to 2012 and for Trium Opportunistic Equity Fund
from 2015 to 2019.
David Ballance
Director
Appointed 2025
David Ballance was appointed a Director on 1 March
2025. He brings around 37years’ investment
management experience. He was a Partner at Ruffer
LLP from 2007 until 2022. An external member of
the Investment Group at Christ Church Oxford since
2012, he took on the role of Chair in January 2025.
He is an External Investment Adviser to the Nuffield
Foundation and currently serves as a Member of their
Investment Committee, is a Trustee Director of the
NACAB (1991) Pension Plan, a Member of the Book
Tokens Investment Committee and is also a Trustee for
the Fellowship of St John (UK) Trust.
51
The Monks Investment Trust PLC
Claire Boyle
Audit Committee
Chair
Appointed 2020
Claire Boyle was appointed a Director in 2020 and
became Audit Committee Chair in 2024. Having
qualified as a chartered accountant with Coopers
& Lybrand, where she specialised in litigation
support and forensic accounting, MsBoyle then
spent thirteen years working in equity investment
management for: Robert Fleming Investment
Management; American Express Asset Management;
and latterly Oxburgh Partners LLP, where she was a
partner with responsibility for theirEuropean Equity
Hedge Fund. She is the chair of Fidelity Special
Values Plc and was previously a non-executive
director of Nippon Active Value Fund plc, and the
non-executive chair of Life Sciences REIT plc.
Richard Curling was appointed a Director with effect
from 1 October 2025. He is a highly experienced
investment trust Director and fund manager, who
has specialised in investment companies for over
10years. He is a non-executive Director of Schroder
UK Mid Cap Fundplc.
Richard Curling
Director
Appointed 2025
Governance report
Annual Report and Financial Statements 2026
52
All of the Directors are non-executive, all are members of the
Management Engagement Committee and the Nomination Committee,
and all are members of the Audit Committee with the exception
ofRandeep Grewal, who attends the Audit Committee by invitation.
Professor
Sir Nigel Shadbolt
Director
Appointed 2017
Professor Sir Nigel Shadbolt was appointed a Director
in 2017. He is Principal of Jesus College, Oxford,
Professorial Research Fellow in the Department of
Computer Science, University of Oxford and a visiting
Professor of Artificial Intelligence at the University
of Southampton. He specialises in open data and
artificial intelligence and is currently also chair of
theOpen Data Institute.
Belinda Richards
Director
Appointed 2016
Belinda Richards was appointed a Director in 2016.
She is a former senior partner at Deloitte LLP with a
thirty year career specialising in business operations
and strategy development with a particular focus
on the Financial Services and Consumer Products
sectors. She is a non-executive director of YouGov plc.
Stacey
Parrinder-Johnson
Director
Appointed 2024
Stacey Parrinder-Johnson was appointed a Director
in 2024 and became Senior Independent Director
on 1January 2026. She was, until September
2023, chief investment officer of Investec Wealth
& Investment UK, where she was also a member of
the executive management committee, chair of the
investment committee, and a member ofthe executive
risk management committee. Stacey brings twenty
years of experience in asset selection, portfolio
management, and manager analysis across UK and
international mandates, and has particular strength
in investment trust governance, sustainability and
risk issues. She is a governor of the University of
Portsmouth and a non-executive director of Polar
Capital Global Healthcare Trust.
53
The Monks Investment Trust PLC
Michael Taylor
Michael is an investment manager in the Global
Alpha Team. Having previously worked at Baillie
Gifford from 2009 to 2014, Michael re-joined Baillie
Gifford in 2022. He became a partner of the firm
in 2025. Prior to returning to the firm, Michael was
an investment manager at Marathon Investment
Management. He graduated BA (Hons) from the
University of Oxford in 2008. Michael is a CFA
Charterholder.
Portfolio Managers
Michael Taylor
Portfolio Manager
Malcolm MacColl
Malcolm has been an investment manager in the
Global Alpha Team since its inception in 2005 and
this is his sole portfolio responsibility. He joined
Baillie Gifford in 1999 and has worked in the UK
Small Cap and North American teams. He became
a partner of the firm in 2011 and Managing Partner
in 2021. Malcolm graduated MA in Economics and
History in 1998 and MLitt in Economics, Politics
andManagement in 1999 from the University of
StAndrews.
Malcolm MacColl
Portfolio Manager
Helen Xiong
Helen is an investment manager in the Global Alpha
Team. She joined Baillie Gifford in 2008 and became
a partner in 2020. In addition to Global Alpha, Helen
has spent time working in the Developed Asia, UK, US
Equity Growth, and Emerging Markets Equity teams.
She graduated BSc (Hons) in Economics from the
University of Warwick in 2007 and MPhil in Economics
from the University of Cambridge in 2008.
Helen Xiong
Portfolio Manager
Governance report
Annual Report and Financial Statements 2026
54
The Directors present their
report together with the Financial
Statements of the Company for
the year to 30 April 2026.
Directors’ report
Corporate governance
The Corporate governance report is set out on
pages59 to 66 and forms part of this report.
Managers and Company Secretaries
Baillie Gifford & Co Limited, a wholly owned subsidiary
of Baillie Gifford & Co, has been appointed as the
Company’s Alternative Investment Fund Manager
(‘AIFM’) and Company Secretaries. Baillie Gifford & Co
Limited has delegated portfolio management services
to Baillie Gifford & Co. Dealing activity and transaction
reporting have been further sub-delegated to Baillie
Gifford Overseas Limited and Baillie Gifford Asia
(HongKong) Limited.
Baillie Gifford & Co is an investment management
firmformed in 1927 out of the legal firm
BaillieGifford,WS, which had been involved
in investment management since 1908. Baillie
Gifford & Co Limited and Baillie Gifford & Co are
both authorised and regulated by the Financial
ConductAuthority.
Baillie Gifford is one of the largest investment trust
managers in the UK and currently manages eleven
closed-ended investment companies. Baillie Gifford
also manages open ended investment companies,
together with investment portfolios on behalf of
pension funds, charities and other institutional
clients, both in the UK and overseas. Funds under the
management or advice of Baillie Gifford total around
£180 billion. Based in Edinburgh, it is one of the leading
privately owned investment management firms in the
UK, with 59 partners and a staff of around 1,600.
The Investment Management Agreement sets out the
matters over which the Managers have authority in
accordance with the policies and directions of, and
subject to restrictions imposed by, the Board. The
Investment Management Agreement is terminable on
not less than six months’ notice. Compensation fees
would only be payable in respect of the notice period
iftermination were to occur sooner.
55
The Monks Investment Trust PLC
The annual management fee is 0.45% on the first
£750 million of total assets, 0.33% on the next
£1billion of total assets and 0.30% on the remaining
total assets (see note 3 on page 92 for more details).
The Board considers the Company’s investment
management and secretarial arrangements on an
ongoing basis and a formal review is conducted by
the Management Engagement Committee annually.
The Committee considered the following topics,
amongst others, in its review: the quality of the
personnel assigned to handle the Company’s affairs;
the investment process and the results achieved to
date; investment performance; the administrative
services provided by the Secretaries and the quality
of information provided; the marketing efforts
undertaken by the Managers; the relationship with
the Managers; and comparative peer group charges
and fees.
As outlined in the Interim Report, the Board
undertook a broader and more in-depth evaluation
process than in prior years, reflecting the Company’s
recent relative performance, changes within the
investment team, evolving market dynamics and
the increasing complexity of the global investment
environment. In addition to the Committee’s
annual review framework and AIC guidance, the
Board conducted dedicated sessions focused on
the Managers’ investment philosophy, decision-
making framework, portfolio construction, research
resources, buy and sell discipline, and the evolution
of the investment process in response to lessons
learned over recent years.
The Board also considered the stability and
quality of the investment team, the alignment of
interests between the Managers and shareholders,
succession planning, risk management, operational
infrastructure, and the Managers’ engagement with
shareholders and the Board. Particular attention was
given to how the Managers are adapting their process
and portfolio positioning in response to a more
uncertain geopolitical backdrop, increased market
concentration and rapid technologicalchange.
The Committee was encouraged by the openness,
self-reflection and constructive engagement
demonstrated by the Managers throughout the
review process, as well as by the thoughtful
refinements being made to the investment process
while maintaining the long-term philosophy which
underpins the Company’s approach.
Following an additional review in March 2026, the
Management Engagement Committee concluded
that the continuing appointment of Baillie Gifford &
Co Limited as AIFM and the delegation of investment
management services to Baillie Gifford & Co and
the further sub-delegation of dealing activity and
transaction reporting to Baillie Gifford Overseas
Limited and Baillie Gifford Asia (Hong Kong)
Limited, on the terms agreed, is in the interests of
shareholders as a whole. This was subsequently
approved by the Board.
Depositary
The Bank of New York Mellon (International) Limited
has been appointed as the Company’s depositary
in accordance with the requirements of the UK
Alternative Investment Fund Managers (AIFM)
Regulations.
The Company’s depositary also acts as the
Company’s custodian. The depositary’s
responsibilities include cash monitoring, safe
keeping of the Company’s financial instruments,
verifying ownership and maintaining a record
of other assets and monitoring the Company’s
compliance with investment limits and leverage
requirements.
Directors
Information about the Directors who were in office
at the year end and up to the date the Financial
Statements were signed, including their relevant
experience, can be found on pages 50 to 52.
All Directors will retire at the Annual General
Meeting. Richard Curling offers himself for
election, it being the first such meeting following
his appointment, and all the other Directors offer
themselves for re-election, with the exception of
Belinda Richards and Nigel Shadbolt. Following
formal performance evaluation, conducted by
way of questionnaire and interview, theChairman
confirms that the Board considers that the Directors’
performance continues to be effective and that
they remain committed to the Company. The
Board therefore recommends their re-election
toshareholders.
Governance report
Annual Report and Financial Statements 2026
56
Directors’ indemnity and insurance
The Company has entered into qualifying third party
deeds of indemnity in favour of each of its Directors.
The deeds, which were in force during the year to
30 April 2026 and up to the date of approval of
this report, cover any liabilities that may arise to a
third party, other than the Company, for negligence,
default or breach of trust or duty. The Directors
are not indemnified in respect of liabilities to the
Company, any regulatory or criminal fines, any costs
incurred in connection with criminal proceedings in
which the Director is convicted or civil proceedings
brought by the Company in which judgement is given
against him/her. In addition, the indemnity does not
apply to any liability to the extent that it is recovered
from another person. The Company also maintains
Directors’ and Officers’ liability insurance.
Conflicts of interest
Each Director submits a list of potential conflicts
of interest to the Board for consideration on an
ongoing basis and, as part of its due diligence,
totheNomination Committee on an annual basis.
The Committee considers these carefully, taking into
account the circumstances surrounding them, and
makes a recommendation to the Board on whether
or not the potential conflicts should be authorised.
Board authorisation is for a period of one year.
Having considered the lists of potential conflicts
there were no situations which gave rise to a direct
or indirect interest of a Director which conflicted
with the interests of the Company.
Dividends
The Board recommends a final dividend of 0.90p
per ordinary share for the year. If approved, the
recommended final dividend on the ordinary shares
will be paid on 15 September 2026 to shareholders
on the register at the close of business on 7 August
2026. The ex-dividend date is 6 August 2026. The
Company’s Registrar offers a Dividend Reinvestment
Plan (see page 115) and the final date for elections
for this dividend is 24 August 2026.
Share capital
Capital structure
The Company’s capital structure consists of
253,171,460 ordinary shares of 5p each as at
30April 2026, comprising 157,453,530 shares in
issue and 95,717,930 shares held in treasury. There
are no restrictions concerning the holding or transfer
ofthe Company’s ordinary shares and there are
nospecial rights attached to any of the shares.
Dividends
The ordinary shares carry a right to receive
dividends. Interim dividends are determined by
the Directors, whereas the proposed final dividend
requires shareholder approval. Shares held in
treasury are not entitled to dividends.
Capital entitlement
On a winding up, after meeting the liabilities of the
Company, the surplus assets will be paid to ordinary
shareholders in proportion to their shareholdings.
Voting
Each ordinary shareholder present in person or by
proxy is entitled to one vote on a show of hands
and, on a poll, to one vote for every share held.
Information on the deadlines for proxy appointments
can be found on pages 111 to 113.
Major interests disclosed in the Company’s shares
The Company has received notifications in
accordance with the Financial Conduct Authority’s
Disclosure and Transparency Rule 5.1.2R of the
following interests in 3% or more of the voting rights
attached to the Company’s issued share capital.
Name
No. of ordinary
5p shares held at
30 April 2026
% of
issue
Rathbone Investment
Management Ltd
19,341,323 12.3%
During the period from 30 April 2026 to 30 June
2026, the Company was notified that Mr Douglas
MacDougall held 4,828,038 (3.1% of the shares in
issue as at 4 June 2026). There have been no other
changes to the major interests in the Company’s
shares disclosed between 30 April 2026 and
30June 2026.
Annual General Meeting
Issuance of shares
At the last Annual General Meeting, the Directors
were granted shareholders’ approval for a general
authority to allot shares and also an authority to
issue shares or sell shares held in treasury on a non
pre-emptive basis (without first offering such shares
to existing shareholders pro-rata to their existing
holdings) up to a maximum nominal amount of
£924,878.33. During the year to 30 April 2026 the
Company issued no shares using this authority.
57
The Monks Investment Trust PLC
Between 1 May and 26 June 2026, the Company
issued no shares.
The issuance authorities expire at the forthcoming
Annual General Meeting and the Directors are
seeking shareholders’ approval to renew them for
afurther year, as detailed below.
Resolution 12 in the Notice of Annual General
Meeting seeks a general authority for the Directors
to allot shares up to an aggregate nominal amount
of £771,277.60. This amount represents 10% of
the Company’s total ordinary share capital in issue
at 26 June 2026 and meets institutional guidelines.
This authority will continue until the conclusion of
the Annual General Meeting to be held in 2027 or
on the expiry of 15months from the passing of the
resolutions, ifearlier.
Resolution 13, which is proposed as a special
resolution, seeks authority for the Directors to
issueshares or sell shares held in treasury on a
non pre-emptive basis for cash up to an aggregate
nominal amount of £771,277.60 (representing 10%
of the issued ordinary share capital of the Company
as at 26 June 2026).
These authorities will only be used to issue shares
or sell shares from treasury at a premium to net
asset value on the basis of debt valued at par value
and only when the Directors believe that it would
be in the best interests of the Company to do so.
This authority will continue until the conclusion of
the Annual General Meeting to be held in 2027 or
on the expiry of 15 months from the passing of the
resolutions, if earlier.
Purchase of own shares
At the last Annual General Meeting the Company
was granted authority to purchase up to 26,217,332
ordinary shares (equivalent to approximately
14.99% of its issued share capital), such authority
to expire at the Annual General Meeting in respect
of the year ended 30 April 2026. During the year
to 30April 2026 the Company bought back a total
of 30,169,136 shares, representing 16.1% of the
issued share capital at 30April 2025, at a discount
to net asset value, on 157 separate occasions at
an average price of 1,429.90 pence per share and
a total cost of £432,580,000. These shares are
held in treasury for reissue. No shares were sold
from treasury during the year, therefore 95,717,930
shares were held in treasury at 30 April 2026. In
the period 1 May 2026 to 22 June 2026, a further
2,783,000shares were bought back. At a General
Meeting held on 23 June 2026 the Company was
granted authority to purchase up to 23,185,122
ordinary shares (equivalent to approximately 14.99%
of its issued share capital), such authority to expire
at the Annual General Meeting in respect of the year
ended 30April 2026. Inthe period 23 June 2026 to
26 June 2026, a further 415,000shares were bought
back. At 26 June 2026 98,915,930shares were held
in treasury. The principal reason for share buy-backs
is to enhance net asset value per share for continuing
shareholders by purchasing shares at a discount to
the prevailing net asset value.
The Company may hold bought-back shares ‘in
treasury’ and then:
i. sell such shares (or any of them) for cash (or its
equivalent under the Companies Act 2006); or
ii. cancel the shares (or any of them).
Shares will only be sold from treasury at a premium
to net asset value.
The Directors are seeking shareholders’ approval at
the Annual General Meeting to renew the authority
to purchase up to 14.99% of the Company’s
ordinary shares in issue at the date of passing
of theresolution, such authority to expire at the
AnnualGeneral Meeting of the Company to be held
in respect of the year ended 30 April 2027.
In accordance with the UK Listing Rules, the
maximum price (excluding expenses) that may
be paid on theexercise of the authority must not
exceed the higher of:
i. 5 per cent. above the average closing price on the
London Stock Exchange of an ordinary share over
the five business days immediately preceding the
date of purchase; and
ii. the higher of the price of the last independent
trade and the highest current independent bid
fora share on the London Stock Exchange.
The minimum price (exclusive of expenses) that may
be paid is 5p per share. Purchases of shares will be
made within guidelines established, from time to
time, by the Board. The Company does not have any
warrants or options in issue. Your attention is drawn
to Resolution 14 in the Notice of Annual General
Meeting on page 110. This authority, if conferred,
will be exercised only if to do so would result in an
increase in net asset value per ordinary share for
the remaining shareholders and if it is in the best
interests of shareholders generally.
Governance report
Annual Report and Financial Statements 2026
58
Articles of Association
The Company’s Articles of Association may only be
amended by special resolution at a general meeting
of shareholders.
Financial instruments
The Company’s financial instruments comprise its
investment portfolio, cash balances, borrowings
and debtors and creditors that arise directly from
its operations such as sales and purchases awaiting
settlement and accrued income. The financial risk
management objectives and policies arising from
its financial instruments and the exposure of the
Company to risk are disclosed in note 19 to the
Financial Statements.
Disclosure of information to auditor
The Directors confirm that so far as each of
the Directors is aware there is no relevant audit
information of which the Company’s auditor is
unaware and the Directors have taken all the steps
that they might reasonably be expected to have
taken as Directors in order to make themselves
aware of any relevant audit information and to
establish that the Company’s auditor is aware of
thatinformation.
Independent auditor
The auditor, Ernst & Young LLP, is willing to
continue in office and, in accordance with section
489 and section 491(1) of the Companies Act
2006, resolutions concerning Ernst & Young LLP’s
reappointment and remuneration will be submitted
to the Annual General Meeting.
Post Balance Sheet events
The Directors confirm that there have been no post
Balance Sheet events which require adjustment of,
or disclosure in, the Financial Statements or notes
thereto up to 30 June 2026.
Greenhouse Gas Emissions and Streamlined
Energy and Carbon Report (‘SECR’)
All of the Company’s activities are outsourced
to third parties. The Company therefore has no
greenhouse gas emissions to report from its
operations, nor does it have responsibility for
any other emissions producing sources under
the Companies Act 2006 (Strategic Report and
Directors’ Reports) Regulations 2013. For the
reasons set out above, the Company considers
itself to be a low energy user and, therefore, is not
required to disclose energy and carbon information
under the SECR regulations.
Bribery Act
The Company has a zero tolerance policy towards
bribery and is committed to carrying out business
fairly, honestly and openly. The Managers also adopt
a zero tolerance approach and have policies and
procedures in place to prevent bribery.
Criminal Finances Act 2017
The Company has a commitment to zero tolerance
towards the criminal facilitation of tax evasion.
Recommendation
The Directors unanimously recommend you vote
in favour of the resolutions to be proposed at the
Annual General Meeting as it is their view that the
resolutions are in the best interests of shareholders
as a whole.
On behalf of the Board
Randeep Grewal
Chairman
30 June 2026
59
The Monks Investment Trust PLC
Compliance
The Board confirms that the Company has complied
throughout the year under review with the relevant
provisions of the UK Code and the recommendations
of the AIC Code with the following exceptions. The
UK Code includes provisions relating to the role of the
chief executive, executive directors’ remuneration and
the need for an internal audit function. Given that the
Company is an externally managed investment trust,
the Board considers these provisions are not relevant
to the Company. The need for an internal audit
function specific to the Company has been addressed
on page 68.
The Board
The Board has overall responsibility for the
Company’s affairs, including the determination
and embodiment of its culture and values. It has a
number of matters reserved for its approval including
strategy, investment policy, currency hedging,
borrowings, gearing, treasury matters, dividend and
corporate governance policy. A separate strategy
session is held annually. The Board also reviews
the Financial Statements, investment transactions,
revenue budgets and performance. Full and timely
information is provided to the Board to enable it
to function effectively and to allow Directors to
discharge their responsibilities.
The Board currently comprises seven Directors all
ofwhom are non-executive.
The Chairman is responsible for organising the
business of the Board, ensuring its effectiveness and
setting its agenda. The executive responsibility for
investment management has been delegated to the
Company’s Alternative Investment Fund Manager
(‘AIFM’), Baillie Gifford & Co Limited, and, in the
context of a Board comprising only non-executive
Directors, there is no chief executive officer.
Corporate
governance report
The Board is committed to
achieving and demonstrating
high standards of Corporate
Governance. This statement
outlines how the principles
of the 2024 UK Corporate
Governance Code (the UK ‘Code’)
which can be found at frc.org.
uk, and the relevant principles
of the Association of Investment
Companies Code of Corporate
Governance (‘AIC Code’) issued
in 2024 were applied throughout
the financial year. The AIC Code
provides a framework of best
practice for investment companies
and can be found at theaic.co.uk.
Governance report
Annual Report and Financial Statements 2026
60
Ernst & Young LLP
Auditor
The Bank of
New York Mellon
(International) Limited
Depositary and custodian
Computershare
Investor Services
PLC
Registrar
Investec
Bank plc
Company broker
Board of Directors
Comprises independent
non-executive directors
Chairman: Randeep Grewal
SeniorIndependent Director:
Stacey Parrinder-Johnson
Audit
Committee
Chair: Claire Boyle
Purpose: The primary purpose of the
AuditCommittee is to provide oversight
ofthe financial reporting process,
theauditprocess, the Company’s system
of internal controls and compliance with
laws and regulations.
Management Engagement
Committee
Chair: Randeep Grewal
Purpose: The role of the Management
Engagement Committee is to ensure that
the Managers remain suitable to manage
the portfolio, that the management
contract is competitive and reasonable for
the shareholders, and that the Company
maintains appropriate administrative and
company secretarial support.
Nomination
Committee
Chair: Stacey Parrinder-Johnson
Purpose: The main purpose of the
Nomination Committee is to oversee
Boardrecruitment and planning as well as
Board appraisals including identifying
training needs.
Third-party service providers
appointed by the Board
Alternative Investment Fund Managers,
Company Secretaries and fund administrators:
Baillie Gifford & Co Limited (wholly owned
subsidiary of Baillie Gifford & Co)
Dealing activity and transaction reporting:
Baillie Gifford Overseas Limited and
Baillie Gifford Asia (Hong Kong) Limited
61
The Monks Investment Trust PLC
Stacey Parrinder-Johnson is Senior Independent
Director (SID) and, as such, she is available to
shareholders as an alternative to the Chairman if
they have concerns. The SID led the Chairman’s
performance appraisal and chaired the Nomination
Committee when it considered the Chairman’s
succession during the year. Stacey Parrinder-
Johnson was appointed Chair of the Nomination
Committee with effect from 1 May 2026.
The Directors believe that the Board has a balance
of skills and experience that enables it to provide
effective strategic leadership and proper governance
of the Company. Information about the Directors,
including their relevant experience, can be found
on pages 50 to 52.
There is an agreed procedure for Directors to seek
independent professional advice, if necessary, at the
Company’s expense.
Nomination Committee
The Nomination Committee consists of all the
Directors and Stacey Parrinder-Johnson is the
Chairman of theCommittee. The Committee
meets on an annual basis and at such other times
as may be required. The Committee has written
terms of reference which include reviewing
the composition of the Board, identifying and
nominating new candidates for appointment to the
Board, Board appraisal, succession planning and
training. TheCommittee also considers whether
Directors should be recommended for re-election
by shareholders. TheCommittee is responsible
for considering Directors’ potential conflicts of
interest and for making recommendations on
whether or not the potential conflicts should be
authorised. The Committee’s Terms of Reference
are available on request from the Company and
on the Company’s page of the Managers’ website:
monksinvestmenttrust.co.uk.
Appointments to the Board
New Directors are appointed by the Board, following
recommendation by the Nomination Committee.
The terms and conditions of Directors’ appointments
are set out in formal letters of appointment which are
available for inspection on request.
A Director appointed during the year is required to
retire and seek election by shareholders at the next
Annual General Meeting. In accordance with the
Code, all Directors offer themselves for re-election
annually.
Diversity Policy
Appointments to the Board are made on merit
with due regard for the benefits of diversity,
including gender, social and ethnic backgrounds,
cognitive and personal strengths. The priority in
appointing new Directors is to identify the candidate
with the best range of skills and experience to
complement those of existing Directors, with a
view to ensuring that the Board remains well-
placed to help the Company achieve its investment
and governance objectives. Within the context
of a small, entirely non-executive Board, a single
appointment or retirement can have a significant
impact on percentage representation, and a limited
number ofsenior roles are available. The Board
will endeavour to comply with the UK Listing
Rules targets but notes that the circumstances of
Directorsmay prevent them from accepting the
additional responsibilities of a senior role and that
Directors may prefer not to disclose their ethnic
background. In such circumstances, the value
brought to the Board by their inclusion outweighs
the ambition of meeting diversity targets.
Diversity of the Board
The following disclosures are provided in respect
of the UK Listing rules targets that: i) 40% of a
board should be women; ii) at least one senior role
should be held by a woman; and iii) at least one
board member should be from a non-white ethnic
background, as defined by the Office of National
Statistics (ONS) criteria.
As an externally managed investment company with no
chief executive officer (CEO) or chief financial officer
(CFO), the roles which qualify as senior under FCA
guidance are Chair and Senior Independent Director
(SID). The Board also considers Audit Committee Chair
and the Nomination Committee Chair to represent
senior roles within this context. At 30 April 2026,
which shall be used as the reference date for the
disclosures in accordance with the UK Listing Rules
6.6.6R(9), the Board met the targets. There have been
no changes to Board membership since 30 April 2026,
data has been collected on self-reporting basis.
Gender Number %
Senior
roles *
Men 4 57 1
Women 3 43 1
Prefer not to say – – –
* The Board also considers Audit Committee Chair and the Nomination
Committee Chair to be senior roles.
The roles of Audit Committee Chair and the Nomination Committee Chair
are both currently held by a woman.
Governance report
Annual Report and Financial Statements 2026
62
Ethnic background Number %
Senior
roles *
White 6 86 1
Asian/Asian British 1 14 1
Prefer not to say – – –
* The Board also considers Audit Committee Chair and Nomination
Committee Chair to be senior roles.
The Audit Committee Chair and the Nomination Committee Chair’s
ethnic backgrounds are white.
Independence of Directors
All the Directors are considered by the Board to
be independent of the Managers and free of any
business or other relationship which could interfere
with the exercise of their independent judgement.
The Directors recognise the importance of
succession planning for company boards and the
Board’s composition is reviewed annually. The
Board is of the view that length of service will not
necessarily compromise the independence or
contribution of directors of an investment trust
company, where continuity and experience can
beabenefit to the Board.
Belinda Richards and Nigel Shadbolt will retire at the
conclusion of the 2026 AGM.
Policy on Chairman’s Tenure
The Board considers that the tenure of the Chairman
should be determined principally by the Board’s role in
providing strategic leadership, governance, challenge
and support to the Managers, whilst balancing the
importance of independence, refreshment and
diversity with retention of the corporate memory.
Itfirmly believes that an appropriate combination of
these factors is essential for an effective Board. This,
at times, will naturally result in some longer serving
directors, including the Chairman. The Nomination
Committee considers long term succession planning
for this role as part of its broader remit to ensure an
appropriate level of refreshment and diversity on the
Board. It does not believe the imposition of hard time
limits to be helpful in respect of this role, any more
than for the tenure of Directors overall.
Meetings
There is an annual cycle of Board meetings which
is designed to address, in a systematic way, overall
strategy, review of investment policy, investment
performance, marketing, revenue budgets, dividend
policy and communication with shareholders.
TheBoard considers that it meets sufficiently
regularly to discharge its duties effectively. Thetable
below shows the attendance record for the core
Board and Committee meetings held during the year.
The Annual General Meeting was attended by all the
Directors serving at that date.
Directors’ attendance at meetings
Board
Audit
Committee
Management
Engagement
Committee
Nomination
Committee
Number of
meetings
4 4 2 2
DC Ballance 4 4 2 2
CM Boyle 4 4 2 2
RS Grewal 4 4
†
2 2
R Curling* 2 4 2 2
S Parrinder-
Johnson
4 4 2 2
BJ Richards 4 3 2 2
Professor
Sir Nigel Shadbolt
4 2 2 1
*
Appointed effective 1 October 2025; attended all meetings held between
appointment date and year end.
†
Mr R Grewal is not a member of the Audit Committee but attends
by invitation.
Performance evaluation
An appraisal of the Chairman, each Director and a
performance evaluation and review of the Board
as a whole and the Audit Committee was carried out
during the year. The performance evaluation was
supported by a digital board assessment platform,
enabling confidential feedback, benchmarking
and comparative analysis of Board effectiveness.
After considering and responding to an evaluation
questionnaire each Director had an interview with
the Chairman. The Chairman’s appraisal was led by
Stacey Parrinder-Johnson, the Senior Independent
Director. The appraisals and evaluations considered,
amongst other criteria, the balance of skills of the
Board, training and development requirements, the
contribution of individual Directors and the overall
effectiveness of the Board and its Committees.
Following this process it was concluded that the
performance of each Director, the Chairman, the
Board and its Committees continues to be effective
and that each Director and the Chairman remain
committed to the Company.
63
The Monks Investment Trust PLC
A review of the Chairman’s and other Directors’
commitments was carried out and the Board is
satisfied that they are capable of devoting sufficient
time to the Company.
Induction and training
New Directors are provided with an induction
programme which is tailored to the particular
circumstances of the appointee. During the year
briefings on industry and regulatory matters
were provided to the Board by the Managers and
Secretaries. Directors receive other relevant training
as necessary.
Management Engagement Committee
The role of the Management Engagement
Committee is to ensure that the Managers
remain suitable to manage the portfolio, that the
management contract is competitive and reasonable
for the shareholders, and that the Company
maintains appropriate administrative and company
secretarial support. All Directors are members of
the Management Engagement Committee, which
is chaired by the Chairman of the Board. The
Board considers each member of the Committee
to be independent. To discharge its duties, the
Committee met twice during the year to consider:
the performance and suitability of the Managers;
the terms and conditions of the AIFM Agreement,
including fees; and the Committee’s Terms of
Reference. The Committee’s Terms of Reference
are available on request from the Company and
on the Company’s page of the Managers’ website:
monksinvestmenttrust.co.uk.
Remuneration
As the Board considers all its members to be
independent, and all the Directors are non-executive,
the Board does not consider it necessary to form a
separate Remuneration Committee. Directors’ fees
are considered by the Board as a whole within the
limits approved by shareholders. The Company’s
policy on remuneration is set out in the Directors’
Remuneration Report on pages 70 to 73.
Audit Committee
The report of the Audit Committee is set out on
pages 67 to 69.
Internal controls and risk management
The Directors acknowledge their responsibility for
the Company’s risk management and internal control
systems and for reviewing their effectiveness.
The systems are designed to manage rather than
eliminate the risk of failure to achieve business
objectives and can only provide reasonable but not
absolute assurance against material misstatement
orloss.
The Board confirms that there is an ongoing
process for identifying, evaluating and managing
the significant risks faced by the Company in
accordance with the FRC ‘Guidance on Risk
Management, Internal Control and Related Financial
and Business Reporting’.
The practical measures in relation to the design,
implementation and maintenance of control policies
and procedures to safeguard the Company’s
assets and to manage its affairs properly, including
the maintenance of effective operational and
compliance controls have been delegated to the
Managers and Secretaries.
The Board oversees the functions delegated to the
Managers and Secretaries and the controls managed
by the AIFM in accordance with the UK Alternative
Investment Fund Managers Regulations (as detailed
below). Baillie Gifford & Co’s Internal Audit and
Compliance Departments and the AIFM’s permanent
risk function provide the Audit Committee with
regular reports on their monitoring programmes.
The reporting procedures for these departments
are defined and formalised within a service level
agreement. Baillie Gifford & Co conducts an annual
review of its system of internal controls which is
documented within an internal controls report which
complies with ISAE 3402 – Assurance Reports on
Controls at a Service Organization. This report is
independently reviewed by Baillie Gifford & Co’s
auditors and a copy is submitted to the Audit
Committee.
A report identifying the material risks faced by the
Company and the key controls employed to manage
these risks is reviewed by the Audit Committee.
These procedures ensure that consideration is given
regularly to the nature and extent of risks facing the
Company and that they are being actively monitored.
Where changes in risk have been identified during
the year they also provide a mechanism to assess
whether further action is required to manage
these risks.
Governance report
Annual Report and Financial Statements 2026
64
The Directors confirm that they have reviewed the
effectiveness of the Company’s risk management
and internal controls systems, which accord with
the FRC ‘Guidance on Risk Management, Internal
Control and Related Financial and Business
Reporting’, and they have procedures in place to
review their effectiveness on a regular basis. No
significant weaknesses were identified in the year
under review and up to the date of this Report.
The Board confirms that these procedures have
been in place throughout the Company’s financial
year and continue to be in place up to the date
of approval of this Report. In preparation for
reporting against the Provision 34 requirements,
the Audit Committee has continued its review
of the Company’s risk matrix and principal risks
and has agreed a timeline with the Managers and
Secretaries to develop an appropriate process
for the identification of material controls, how
assurance will be obtained and the evidence to
support the Board’s attestation in this regard in the
2027 Annual Report and Financial Statements. As
noted above, effective risk management and internal
control systems were in place during the year under
review and Provision 34 is expected to result in
changes to disclosures in the Annual Report and
Financial Statements rather than an overhaul of risk
management and internalcontrols.
To comply with the UK Alternative Investment Fund
Managers Regulations, The Bank of New York
Mellon (International) Limited acts as the Company’s
depositary and Baillie Gifford & Co Limited acts as
its AIFM.
The depositary’s responsibilities include cash
monitoring, safe keeping of the Company’s financial
instruments, verifying ownership and maintaining a
record of other assets and monitoring the Company’s
compliance with investment limits and leverage
requirements. The depositary is liable for the loss of
financial instruments held in custody. The depositary
will ensure that any delegate segregates the assets
of the Company. The Company’s depositary also
acts as the Company’s custodian. The custodian
prepares reports on its key controls and safeguards
which are independently reviewed by its appointed
auditors, KPMG LLP. The reports are reviewed by
Baillie Gifford’s Business Risk Department and a
summary of the key points is reported to the Audit
Committee and any concerns are investigated.
The depositary provides the Audit Committee with
areport on its monitoring activities.
The AIFM has established a permanent risk
management function to ensure that effective risk
management policies and procedures are in place
and to monitor compliance with risk limits. The AIFM
has a risk management policy which covers the risks
associated with the management of the portfolio,
and the adequacy and effectiveness of this policy
is reviewed and approved at least annually. This
review includes the risk management processes and
systems and limits for each risk area.
The risk limits, which are set by the AIFM and
approved by the Board, take into account the
objectives, strategy and risk profile of the portfolio.
These limits, including leverage (see page 116),
are monitored and the sensitivity of the portfolio
to key risks is reviewed periodically as appropriate
to ascertain the impact of changes in key variables
in the portfolio. Exceptions from limits monitoring
and stress testing undertaken by Baillie Gifford’s
Business Risk Department are escalated to the
AIFM and reported to the Board along with remedial
measures being taken. No exceptions occurred
during the year.
Going Concern
In accordance with The Financial Reporting
Council’s guidance on going concern and liquidity
risk, the Directors have undertaken a rigorous review
of the Company’s ability to continue as a going
concern.
The Company’s principal risks are market related
and include market risk, liquidity risk and credit
risk. An explanation of these risks and how they are
managed is contained on pages 39 to 43 and in
note 19 to the Financial Statements. The Board has,
in particular, considered the impact of heightened
macroeconomic and geopolitical uncertainty,
including ongoing geopolitical tensions in Ukraine
and the Middle East, increasing fragmentation of
global trade and supply chains, and the implications
of higher interest rates and inflationary pressures
in major economies, but does not believe the
Company’s going concern status is affected.
The Company’s assets, the majority of which are
investments in listed securities which are readily
realisable (Level 1), exceed its liabilities significantly
and could be sold to repay borrowings if required.
65
The Monks Investment Trust PLC
Allborrowings require the prior approval of
the Board. Gearing levels and compliance with
borrowing covenants are reviewed by the Board on a
regular basis. As at 30 April 2026, the £100 million
RBSI facility had £50 million available commitment
undrawn. The Company has continued to comply
with the investment trust status requirements
of section 1158 of the Corporation Tax Act 2010
and the Investment Trust (Approved Company)
Regulations 2011. The Company’s primary third party
suppliers, including its Managers and Secretaries,
custodian and depositary, registrar, auditor and
broker, are not experiencing significant operational
difficulties affecting their respective services to the
Company. Accordingly, the Financial Statements
have been prepared on the going concern basis
as it is the Directors’ opinion, having assessed the
principal and emerging risks and other matters set
out in the Viability Statement on page 44, which
assesses the prospects of the Company over a
period of five years, that the Company will continue
in operational existence for the period to 30June
2027, which is for a period of at least twelve
months from the date of approval of these Financial
Statements.
Relations with shareholders
The Board places great importance on
communication with shareholders. The Company’s
Managers meet regularly with shareholders
and report shareholders’ views to the Board.
The Chairman has maintained open lines of
communication with market participants and
investors in the Company, separate of Manager
involvement, in order to ascertain views on corporate
matters. TheChairman is available to meet with
shareholders as appropriate. Shareholders wishing
to communicate with any members of the Board may
do so by writing to them at the Secretaries’ address
or through the Company’s broker, Investec Bank plc
(see contact details on page 125).
The Company’s Annual General Meeting provides
a forum for communication with all shareholders.
The votes lodged for each resolution are announced
as soon as practicable following the meeting and is
published at monksinvestmenttrust.co.uk. The notice
period for the Annual General Meeting is at least
twenty working days.
Shareholders and potential investors may obtain
up-to-date information on the Company at
monksinvestmenttrust.co.uk.
Corporate governance and stewardship
The Board has given discretionary voting powers
to Baillie Gifford & Co. The Managers vote against
resolutions they consider may damage shareholders’
rights or economic interests and report their actions
to the Board.
The Board believes that it is in the shareholders’
interests to consider environmental, social and
governance (ESG) factors when selecting and
retaining investments and has asked the Managers
to take these issues into account. The Managers
do not exclude companies from their investment
universe purely on the grounds of ESG factors.
A positive engagement approach is employed
whereby matters are discussed with management
with the aim of improving the relevant policies
and management systems and enabling the
Managers toconsider how ESG factors could
impact long-term investment returns. The Managers’
statement of compliance with the UK Stewardship
Code canbe found on the Managers’ website at
bailliegifford.com. The Managers’ policy has been
reviewed and endorsed by the Board. In addition,
the Monks Stewardship Report, which outlines the
Managers’ approach to engagement and provides
examples, is prepared annually, and is available on
the Company’s page of the Managers’ website at
monksinvestmenttrust.co.uk.
Climate change
The Board recognises that climate change poses
aserious threat to our environment, our society and
to economies and companies around the globe.
Addressing the underlying causes is likely to result
in companies that are high emitters of carbon facing
greater societal and regulatory scrutiny and higher
costs to account for the true environmental impact
of their activities.
Governance report
Annual Report and Financial Statements 2026
66
The Managers utilise data sourced from a third-
party provider to map the carbon footprint of the
equity portfolio, using the information to prioritise
engagement and understand what higher emitting
companies are doing to manage climate risk better.
Best practice in this area is evolving rapidly, and
it is therefore challenging to establish reliable
comparisons company-to-company and
year-on-year. Based on the most recent analysis,
asat 30 April 2026 the carbon intensity of
TheMonks Investment Trust’s portfolio was 12%
lower than the Company’s benchmark (FTSEWorld
Index). This analysis estimate is based on 88%
of the value of the Company’s equity portfolio
which reports on carbon emissions and other
carbon-related characteristics and Scope 1&2
Weighted Average Carbon Intensity (WACI) by
Revenue. Based on reported and estimated Scope
1,2&3 WACI by Revenue, covering 89% of the
Company’s portfolio, carbon intensity was 11% lower
than the benchmark index at 30 April 2026.
Baillie Gifford’s Task Force on Climate-Related
Financial Disclosures (‘TCFD’) Climate Report
is available on the Managers’ website at
bailliegifford.com. A Monks-specific TCFD climate
report is also available on the Company’s page of the
Managers’ website at monksinvestmenttrust.co.uk.
The Managers have considered the EU Sustainable
Finance Disclosures Regulation (‘SFDR’) and further
details can be found on page 117. The Managers
have also reviewed the UK FCA’s sustainability
disclosure requirements and investment labels
regime (‘SDR’). The Managers consider that all
materials published in connection with the Company
are in compliance with the anti-greenwashing rule
effective from 31May 2024, and do not currently
consider it appropriate for the Company to adopt a
label under the regime.
The Managers are signatories to the United Nations
Principles for Responsible Investment, the Carbon
Disclosure Project and are also members of the
Asian Corporate Governance Association and the
International Corporate Governance Network.
On behalf of the Board
Randeep Grewal
Chairman
30 June 2026
67
The Monks Investment Trust PLC
The Audit Committee consists of
all Directors, with the exception
of Randeep Grewal, who attends
by invitation. The members of
the Committee consider that
they have the requisite financial
skills and experience to fulfil the
responsibilities of the Committee.
Claire Boyle is the Audit
Committee Chair.
The Audit Committee consists of David Ballance,
Richard Curling, Stacey Parrinder-Johnson, Belinda
Richards, Professor SirNigel Shadbolt and Claire
Boyle, who is the Audit Committee Chair. The
members of the Committee consider that they
have the requisite financial skills and experience
to fulfil the responsibilities of the Committee. The
Committee’s authority and duties are clearly defined
within its written terms of reference which are
available on request from the Company Secretaries
and at monksinvestmenttrust.co.uk. The terms of
reference are reviewed annually.
The Committee’s effectiveness is reviewed on an
annual basis as part of the Board’s performance
evaluation process.
At least once a year the Committee meets with the
external auditor without any representative of the
Managers being present.
Main activities of the Committee
The Committee met four times during the year,
with two of the meetings focussed on the review of
the Company’s private company valuations. Baillie
Gifford attended all meetings. Baillie Gifford & Co’s
Internal Audit and Compliance Departments and the
AIFM’s permanent risk function provided reports on
their monitoring programmes for the two meetings
focussed on governance and the approval of the
financial statements. Ernst & Young LLP attended
both of those meetings and held separate meetings
with the Audit Committee Chair in advance of both
Committee meetings. In addition, the external
auditor met with the Audit Committee Chair on an
ad-hoc basis to discuss matters pertinent to the
Committee as they arose.
Audit
Committee report
Governance report
Annual Report and Financial Statements 2026
68
The matters considered, monitored and reviewed
by the Committee during the course of the year
included the following:
• the results announcement and the Annual and
Interim Reports;
• the Company’s accounting policies and practices
and the implementation of the Managers’ valuation
policy for investments in unquoted companies;
• the regulatory changes impacting the Company,
including the 2024 UK Corporate Governance
Code;
• the fairness, balance and understandability of
the Annual Report and Financial Statements and
whether it provided the information necessary
for shareholders to assess the Company’s
performance, business model and strategy;
• the effectiveness of the Company’s internal
control environment;
• reappointment, remuneration and terms of
engagement of the external auditor;
• whether the audit services contract should be
putout to tender;
• the policy on the engagement of the external
auditor to supply non-audit services;
• the independence and objectivity of the external
auditor and effectiveness of the external audit
process;
• the need for the Company to have its own internal
audit function;
• internal controls reports received from the
Managers and custodians; and
• the arrangements in place within Baillie Gifford
&Co whereby their staff may, in confidence, raise
concerns about possible improprieties in matters
of financial reporting or other matters.
Internal audit
The Committee continues to believe that the
compliance and internal control systems and the
internal audit function in place within the Managers
provide sufficient assurance that a sound system
of internal control, which safeguards shareholders’
investment and the Company’s assets, is maintained.
An internal audit function, specific to the Company,
is therefore considered unnecessary.
Financial reporting
The Committee considers that the most significant
issues likely to impact the Financial Statements are
the existence and valuation of investments, as they
represent 99.8% of total assets, and the accuracy
and completeness of income from investments.
The majority of the investments are in listed
securities and market prices are readily available
from independent external pricing sources. The
Committee reviewed the Managers’ Report on
Internal Controls which details the controls in place
regarding recording and pricing of investments and
the reconciliation of investment holdings to third
party data.
The value of all the listed investments as at
30April2026 was agreed to external price sources.
The Committee considered the Managers’ proposed
valuation of all unlisted and suspended investments
at 30 April 2026, which are determined using
valuation techniques based upon net asset values,
comparable company multiples and performance,
achievement of company milestones and other
information as appropriate, and assessed the
appropriateness of the judgements and assumptions
used in valuing such investments. The Managers
agreed the portfolio holdings to confirmations from
the Company’s custodian.
The Committee reviewed the Managers’ Report on
Internal Controls which details the controls in place
regarding completeness and accurate recording of
investment income. The accounting treatment of
each special dividend received or receivable during
the year was reviewed by the Managers.
The Committee considered the factors that might
affect the Company’s viability over a period of five
years and its ability to continue as a going concern
for the period to 30 June 2027, together with
reports from the Managers on the cash position and
revenue projections of the Company, the liquidity
of its investment portfolio, compliance with debt
covenants, availability of borrowing facilities, and
the Company’s ability to meet its obligations as
they fall due. The Committee also reviewed the
Viability Statement on page 44 and statement on
going concern on pages 64 and 65. Following this
assessment, the Committee recommended to the
Board the appropriateness of the going concern
basis in preparing the Financial Statements and
confirmed the accuracy of the Viability Statement
and statement on going concern.
69
The Monks Investment Trust PLC
The Managers confirmed to the Committee that they
were not aware of any material misstatements in the
context of the Financial Statements as a whole and
that the Financial Statements are in accordance with
applicable law and accounting standards.
Internal controls and risk management
The Committee reviewed the effectiveness of
the Company’s risk management and internal
controls systems as described on pages 63 and 64.
Nosignificant weaknesses were identified in the
year under review.
External auditor
To fulfil its responsibility regarding the independence
and objectivity of the external auditor, the
Committee reviewed the auditor’s audit plan, which
includes a description of the auditor’s arrangements
to manage independence, a report from the auditor
on the conclusion of the audit setting out why the
auditor remains independent and the extent and
nature of non-audit services provided by the auditor.
No non-audit fees were incurred by the Company
during the year to 30 April 2026 (2025 – nil).
To assess the effectiveness of the auditor and the
external audit process, the Committee reviewed
and considered the audit plan, the fulfilment by the
auditor of the agreed audit plan, a report from the
auditor on the conclusion of the audit, feedback
from the Secretaries on the performance of the audit
team and the Audit Quality Inspection Report on
Ernst & Young LLP issued by the FRC’s Audit Quality
Review Team (AQRT).
Following a competitive tender process, Ernst &
Young LLP was appointed as the Company’s auditor
at the Annual General Meeting held on 2 August
2017, with Caroline Mercer as the lead audit partner.
The audit partners responsible for the audit are to
be rotated at least every five years in accordance
with professional and regulatory standards in
order to protect independence and objectivity
and to provide fresh challenge to the business.
Accordingly,AhmerHuda became the lead audit
partner for the Company’s audit for the year ended
30 April 2023 and subsequent years.
Ernst & Young LLP has confirmed that it believes it
is independent within the meaning of regulatory and
professional requirements and that the objectivity
of the audit partner and staff is not impaired.
Having carried out the review described above,
the Committee is satisfied that the auditor remains
independent and effective for the purposes of this
year’s audit and, as such, has not considered it
necessary to put the audit services contract out to
tender. In accordance with regulations in relation
to the statutory audits of listed companies, the
Company is required to put the audit out to tender
for the 2028 year end.
There are no contractual obligations restricting the
Committee’s choice of external auditor.
Regulatory compliance
The Committee confirms that the Company is in
compliance with the requirements of the Statutory
Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender
Processes and Audit Committee Responsibilities)
Order 2014, which relates to the frequency and
governance of tenders for the appointment of the
external auditor and the setting of policy on the
provision of non-audit services.
Accountability and audit
The respective responsibilities of the Directors
and the auditor in connection with the Financial
Statements are set out on pages 77 to 83.
On behalf of the Board
CM Boyle
Audit Committee Chair
30 June 2026
Governance report
Annual Report and Financial Statements 2026
70
Statement by the Chairman
The Directors’ Remuneration Policy is subject to
shareholder approval every three years, or sooner
if an alteration to the policy is proposed. The
Remuneration Policy, which is set out below, was
approved by shareholders at the Annual General
Meeting held in September 2023, and no changes are
proposed to the policy to be approved at the 2026
Annual General Meeting.
The Board reviewed the level of fees during the
yearand it was agreed that with effect from 1 May
2026 that the fees paid to Directors should increase
by 4%. The fee levels were last increased on 1 May
2025.
Directors’ remuneration policy
The Board is composed wholly of non-executive
Directors, none of whom has a service contract with
the Company. There is no separate remuneration
committee and the Board as a whole considers
changes to Directors’ fees from time to time. Baillie
Gifford & Co Limited, the Company Secretaries,
provide comparative information when the Board
considers the level of Directors’ fees.
The Board’s policy is that the remuneration of
Directors should be set at a reasonable level that is
commensurate with the duties and responsibilities
of the role and consistent with the requirement to
attract and retain Directors of the appropriate quality
and experience. The Board believes that the fees paid
to the Directors should reflect the experience of the
Board as a whole, be fair and should take account
of the level of fees paid by comparable investment
trusts. Any views expressed by shareholders on
the fees being paid to Directors will be taken into
consideration by the Board when reviewing the
Board’s policy on remuneration.
Directors’
remuneration report
This report has been prepared in
accordance with the requirements
ofthe Companies Act 2006.
71
The Monks Investment Trust PLC
Non-executive Directors are not eligible for any
other remuneration or benefits apart from the
reimbursement of allowable expenses. There are
noperformance conditions relating to Directors’
feesand there are no long-term incentive schemes
orpension schemes. There is no notice period and
nocompensation is payable on loss of office.
Limits on Directors’ remuneration
The fees for the non-executive Directors are payable
monthly in arrears and are determined within the limit
set out in the Company’s Articles of Association,
which is currently £400,000 in aggregate.
The fees paid to Directors in respect of the year
ended 30 April 2026 and the expected fees payable
in respect of the year ending 30 April 2027 are set out
in the table below. The fees payable to the Directors
in the subsequent financial periods will be determined
following an annual review of the Directors’ fees.
Expected fees
for the year
ending 30 April
2027
£
Fees for the
year ended
30 April
2026
£
Chairman’s fee 54,080 52,000
Non-executive Director fee 37,440 36,000
Additional fee for
Audit Committee Chair*
7,280 7,000
Additional fee for the Senior
Independent Director*
4,160 4,000
* The Audit Committee Chair performs additional responsibilities as
noted in the Audit Committee Report on pages 67 to 69. The Senior
Independent Director (‘SID’) performs additional responsibilities as noted
on page 61.
Annual report on remuneration
An ordinary resolution for the approval of this report
will be put to the members at the forthcoming Annual
General Meeting.
The law requires the Company’s auditor to audit
certain of the disclosures provided in this report.
Where disclosures have been audited, they are
indicated as such. The auditor’s opinion is included in
the Independent Auditor’s Report on pages 77 to 83.
Directors’ interests (audited)
The Directors at the year end, and their interests
(including those of connected persons) in the
Company are as shown in the following table. There
have been no changes intimated in the Directors’
interests up to 30 June 2026.
Name
Nature
of interest
Ordinary
shares held
at 30 April
2026
Ordinary
shares held
at 30 April
2025
DC Ballance Beneficial 4,000 –
CM Boyle n/a – –
RS Grewal Beneficial 2,875 875
R Curling Beneficial 12,661 –
SL Parrinder-
Johnson
Beneficial 4,500 4,500
BJ Richards Beneficial 13,288 13,288
Professor Sir
Nigel Shadbolt
Beneficial 2,309 2,309
KS Sternberg Beneficial n/a* 25,147
*
Retired 9 September 2025.
Statement of voting at Annual General Meeting
At the last Annual General Meeting, of the proxy votes
received in respect of the Directors’ Remuneration
Report, 99.3% were in favour, 0.4% were against
and votes withheld were 0.3%. At the last Annual
General Meeting at which the Directors’ Remuneration
Policy was considered (September 2023) 99.5% of
the proxy votes received were in favour, 0.3% were
against and 0.2% were withheld.
Governance report
Annual Report and Financial Statements 2026
72
Directors’ remuneration for the year (audited)
The Directors who served during the year received the following remuneration in the form of fees and
taxable benefits. This represents the entire remuneration paid to the Directors.
Name
2026
Fees
£
2026
Taxable
benefits *
£
2026
Total
£
2025
Fees
£
2025
Taxable
benefits *
£
2025
Total
£
DC Ballance (appointed 1 March 2025) 36,000 – 36,000 5,833 – 5,833
CM Boyle (Audit Chair from 10September2024) 43,000 – 43,000 39,500 1,662 41,162
Dr D Chaya (resigned 31 January 2025)
†
– – – 26,250 – 26,250
RS Grewal (appointed 1 March 2024, Chairman
9September 2025)
46,303 – 46,303 35,000 – 35,000
SL Parrinder-Johnson (appointed 1 March 2024,
SIDfrom 1 January 2026)
37,333 – 37,333 35,000 – 35,000
BJ Richards (SID until 31 December 2025) 38,667 – 38,667 39,000 – 39,000
Professor Sir Nigel Shadbolt 36,000 – 36,000 35,000 – 35,000
KS Sternberg (Chairman, retired 9 September 2025) 18,712 1,510 20,222 51,000 – 51,000
JJ Tigue (Audit Committee Chair, and SID to
1December 2023, retired 10 September 2024)
– – – 15,167 793 15,960
R Curling (appointed 1 October 2025) 21,000 – 21,000 – – –
277,015 1,510 278,525 281,750 2,455 284,205
*
Comprises expenses incurred by Directors in the course of travel to attend Board and Committee meetings held at the offices of Baillie Gifford & Co
Limited, the Company’s Secretaries. These amounts have been grossed up for income tax.
†
Dr Chaya resigned as a consequence of time commitments arising from her executive role.
Annual percentage change in remuneration
This represents the annual percentage change in the fees paid to the Directors.
Name
% from
2025 to
2026
% from
2024 to
2025
% from
2023 to
2024
% from
2022 to
2023
% from
2021 to
2022
DC Ballance (appointed 1 March 2025) 5 1 7. 1 n/a n/a n/a n/a
CM Boyle (appointed 1 May 2020, Audit Chair from
10September 2024)
8.9 16.2 * 4.6 4.8 3.3
Dr D Chaya (appointed 30 November 2022, resigned
31January 2025)
– (22.8*) 148.8 * n/a n/a
RS Grewal (appointed 1 March 2024, Chairman 9 September 2025) 32.3 517.6 * n/a n/a n/a
SL Parrinder-Johnson (appointed 1 March 2024, SID from
1January 2026)
6.7 517.6 * n/a n/a n/a
BJ Richards (SID from 1 December 2023 until 31 December 2025) (0.9) 10.8 * 8.3 * 4.8 3.3
Professor Sir Nigel Shadbolt 2.9 2.9 4.6 4.8 3.3
KS Sternberg (Chairman from 1 September 2020, retired
9September 2025)
(63.3) 2.0 5.3 3.3 1 7. 0
JJ Tigue (Audit Committee Chair, and SID to 1December 2023,
retired 10 September 2024)
– (63.7*) 0.7 * 3.8 14.3
R Curling (appointed 1 October 2025) n/a n/a n/a n/a n/a
Total Directors’ fees paid by the Company in the year (1.1) 17.2 20.1 11.8 (13.1)
*
These percentage movements reflect the Directors’ retirement, appointment, or role change in the period or the prior period as applicable. In such
circumstances the movement in actual fees paid in the year will differ from the movement in annualised fees payable. Details are only shown for
Directors serving on the Board in the current or prior financial year. The movement in total Directors’ fees paid by the Company in the year may
furtherbe affected by the retirement of other Directors, whose details are no longer shown in the table above.
73
The Monks Investment Trust PLC
Relative importance of spend on pay
The table below shows the actual expenditure during
the year in respect of Directors’ remuneration and
distributions to shareholders by way of dividends and
shares bought back.
Name
2026
£’000
2025
£’000
Change
%
Directors’ total remuneration 279 284 (1.8)
Dividends paid to shareholders 1,417 938 51.1
Shares bought back 432,580 321,104 34.7
Company performance
The following graph compares the share price total
return (assuming all dividends are reinvested) to
Monks’ ordinary shareholders compared with the
total shareholder return on a notional investment
made up of shares in the component parts of the
FTSE All-Share Index. This index was chosen for
comparison purposes as it is a widely used measure
of performance for UK listed companies (FTSE World
Index, which is the Company’s comparative index,
isprovided for information purposes only).
Performance graph
(figures rebased to 100 at 30 April 2016)
Past performance is not a guide to future
performance.
Approval
The Directors’ Remuneration Report on pages 70
to 73 was approved by the Board of Directors and
signed on its behalf on 30 June 2026.
Randeep Grewal
Chairman
Cumulative to 30 April
20262016 2018 2021 2023 20252017 20202019 2022 2024
●
Share price
Source:
LSEG/Baillie Gifford and relevant underlying index providers.
See disclaimer on page 116.
All figures are to
tal returns (see Glossary of terms and Alternative
Pe
rformance Measures on pages 120 to 124).
● FTSE All-Share
Index
● Comparative Index
(in sterling terms)
*
0
500
100
400
300
200
Governance report
Annual Report and Financial Statements 2026
74
The Directors are responsible for keeping adequate
accounting records that are sufficient to show
and explain the Company’s transactions and
disclose with reasonable accuracy at any time the
financial position of the Company and enable them
to ensure that the Financial Statements and the
Directors’ Remuneration report comply with the
Companies Act 2006. They are also responsible for
safeguarding the assets of the Company and hence
for taking reasonable steps for the prevention and
detection offraud and other irregularities.
Under applicable laws and regulations, the Directors
are also responsible for preparing a Strategic
report, Directors’ report, a Directors’ remuneration
report and a Corporate governance statement that
complies with that law and those regulations.
The Directors have delegated responsibility to
the Managers for the maintenance and integrity
of the Company’s page of the Managers’ website.
Legislation in the United Kingdom governing
the preparation and dissemination of Financial
Statements may differ from legislation in other
jurisdictions. The work carried out by the auditor
does not involve any consideration of these
matters and, accordingly, the auditor accepts
no responsibility for any changes that may have
occurred to the Financial Statements since they
were initially presented on the website.
The Directors are responsible for preparing
the Annual Report and Financial Statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare
Financial Statements for each financial year. Under
that law they have elected to prepare the Financial
Statements in accordance with applicable law and
United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice)
including FRS 102 ‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland’.
Under company law the Directors must not approve
the Financial Statements unless they are satisfied
that they give a true and fair view of the state of
affairs of the Company and of the profit or loss of
the Company for that period.
In preparing these Financial Statements, the
Directors are required to:
• select suitable accounting policies and then apply
them consistently;
• make judgements and accounting estimates that
are reasonable and prudent;
• state whether applicable United Kingdom
Accounting Standards have been followed, subject
to any material departures disclosed and explained
in the Financial Statements;
• assess the Company’s ability to continue as a
going concern, disclosing, as applicable, matters
related to going concern; and
• prepare the Financial Statements on the going
concern basis unless it is inappropriate to presume
that the Company will continue in business.
Statement of Directors’
responsibilities
in respect of the Annual Report and the Financial Statements
75
The Monks Investment Trust PLC
Each of the Directors, who were in office at the date
of approval of the Financial Statements and whose
names and functions are listed within the Directors
and Managers section, confirm that, to the best of
their knowledge:
• the Financial Statements, which have been
prepared in accordance with applicable law and
United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting
Practice) including FRS 102 ‘The Financial
Reporting Standard applicable in the UK and
Republic of Ireland’, give a true and fair view of the
assets, liabilities, financial position and net return
of the Company;
• the Annual Report and Financial Statements taken
as a whole is fair, balanced and understandable
and provides the information necessary
for shareholders to assess the Company’s
performance, business model and strategy; and
• the Strategic Report includes a fair review of the
development and performance of the business
and the position of the Company, together with a
description of the principal risks and uncertainties
that it faces.
On behalf of the Board
Randeep Grewal
Chairman
30 June 2026
Financial
report
The Financial Statements for
theyear to 30 April 2026 set
outon pages 84 to 106 havebeen
prepared in accordance with
FRS102 ‘The Financial Reporting
Standard applicable in the UK
andRepublic of Ireland’.
77
The Monks Investment Trust PLC
Independent
auditor’s report
to the Members of The Monks Investment Trust PLC
Independence
We are independent of the Company in accordance
with the ethical requirements that are relevant to
our audit of the financial statements in the UK,
including the FRC’s Ethical Standard as applied to
public interest entities, and we have fulfilled our
other ethical responsibilities in accordance with
theserequirements.
The non-audit services prohibited by the FRC’s
Ethical Standard were not provided to the Company
and we remain independent of the Company in
conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have
concluded that the Directors’ use of the going
concern basis of accounting in the preparation of the
financial statements is appropriate. Our evaluation
of the Directors’ assessment of the Company’s
ability to continue to adopt the going concern basis
of accounting included:
•
Confirming our understanding of the Company’s
going concern assessment process by engaging
with the Directors and the Company Secretary
to determine if all key factors were considered
in their assessment. We considered whether
the factors taken account of in the Directors’
assessment addressed those matters which we
considered important.
•
Inspecting the Directors’ assessment of going
concern, including the revenue forecast, for the
period to 30 June 2027 which is at least twelve
months from the date the financial statements
were authorised for issue. The Company has
concluded that it is able to continue to meet its
ongoing costs as they fall due.
Opinion
We have audited the financial statements of The
Monks Investment Trust PLC (the ‘Company’) for
the year ended 30 April 2026 which comprise the
Income Statement, Balance Sheet, Statement
of Changes in Equity, Cash Flow Statement, and
the related notes 1 to 20, including a summary
of significant accounting policies. The financial
reporting framework that has been applied in their
preparation is applicable law and United Kingdom
Accounting Standards including FRS 102 “The
Financial Reporting Standard applicable in the UK
and Republic of Ireland” (United Kingdom Generally
Accepted Accounting Practice).
In our opinion, the financial statements:
•
give a true and fair view of the Company’s affairs
as at 30 April 2026 and of its profit for the year
then ended;
•
have been properly prepared in accordance with
United Kingdom Generally Accepted Accounting
Practice; and
•
have been prepared in accordance with the
requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (ISAs (UK)
and applicable law. Our responsibilities under those
standards are further described in the Auditor’s
responsibilities for the audit of the financial
statements section of our report. We believe that the
audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion
Financial report
Annual Report and Financial Statements 2026
78
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of
materiality and our allocation of performance
materiality determine our audit scope for the
Company. This enables us to form an opinion on
the financial statements. We take into account
size, risk profile, the organisation of the Company
and effectiveness of controls, the potential impact
of climate change and changes in the business
environment when assessing the level of work to be
performed. All audit work was performed directly
by the audit engagement team which included our
valuation specialists.
Climate change
Stakeholders are increasingly interested in how
climate change will impact the Company. The
Company has determined that the most significant
future impacts from climate change on its operations
will be from how climate change could affect the
Company’s investments and overall investment
process. These are explained on page 39 in the
‘Principal and Emerging Risks’ section, which form
part of the “Other information,” rather than the
audited financial statements. Our procedures on
these unaudited disclosures therefore consisted
solely of considering whether they are materially
inconsistent with the financial statements or our
knowledge obtained in the course of the audit or
otherwise appear to be materially misstated, in line
with our responsibilities on “Other information”.
Our audit effort in considering climate change
was focused on the adequacy of the Company’s
disclosures in the financial statements as set out
in Note 1(a) and conclusion that there was no
further impact of climate change to be taken into
account. The quoted investments are valued based
on market pricing as required by FRS 102 and the
unquoted investments are valued using a variety of
techniques consistent with the recommendations set
out in the International Private Equity and Venture
Capital (IPEV) guidelines which also reflect each
investment’s exposure to climate change risk.
We also challenged the Directors’ considerations of
climate change risks in their assessment of going
concern and viability and associated disclosures.
Based on our work we have not identified the impact
of climate change on the financial statements to be a
key audit matter or to impact a key audit matter.
•
Assessing the risk of breaching the debt
covenants as a result of a reduction in the value
of the Company’s portfolio. We calculated and
reviewed the Company’s compliance with debt
covenants throughout the year, validated the
inputs used to the underlying information and
we performed reverse stress testing in order to
identify what factors would lead to the Company
breaching the financial covenants.
•
Considering the mitigating factors that are
within the control of the Company. We reviewed
the Company’s assessment of the liquidity of
investments held and evaluated the Company’s
ability to sell those investments in order to cover
working capital requirements should revenue
decline significantly.
•
Reviewing the Company’s going concern
disclosures included in the annual report to assess
whether the disclosures were appropriate and in
conformity with the reporting standards.
Based on the work we have performed, we have
not identified any material uncertainties relating to
events or conditions that, individually or collectively,
may cast significant doubt on the Company’s ability
to continue as a going concern for a period to 30
June 2027 which is at least 12 months from when
the financial statements are authorised for issue.
In relation to the Company’s reporting on how they
have applied the UK Corporate Governance Code,
we have nothing material to add or draw attention to
in relation to the Directors’ statement in the financial
statements about whether the Directors considered
it appropriate to adopt the going concern basis
ofaccounting.
Our responsibilities and the responsibilities of
the Directors with respect to going concern are
described in the relevant sections of this report.
However, because not all future events or conditions
can be predicted, this statement is not a guarantee
as to the Company’s ability to continue as a
goingconcern.
Overview of our audit approach
Key audit matters • Risk of incorrect valuation or
ownership of the investment portfolio.
•
Risk of incomplete or inaccurate
revenue recognition.
Materiality •
Overall materiality of £25.18m which
represents 1% of net asset value.
79
The Monks Investment Trust PLC
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period and include the most significant assessed risks of
material misstatement (whether or not due to fraud) that we identified. These matters included those which
had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing
the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on
these matters.
Risk Our response to the risk
Key observations
communicated to the
Audit Committee
Incorrect valuation or ownership of
the investment portfolio (as described
on page 68 in the Report of the Audit
Committee and as per the accounting
policy set out on page 90).
The valuation of the investment portfolio
at 30 April 2026 was £2,735.55m
(2025: £2,528.47m) consisting of
quoted investments with an aggregate
fair value of £2,609.60m (2025:
£2,447.98m) and unquoted investments
(including CVR and suspended
investments) with an aggregate fair
value of £125.95m (2025: £80.49m).
The valuation of the assets held in the
investment portfolio is the key driver of
the Company’s net asset value and total
return. Incorrect investment pricing or
a failure to maintain proper legal title to
the investments held by the Company
could have a significant impact on
the portfolio valuation and the return
generated for shareholders.
The fair value of quoted investments is
determined by reference to bid value or
the last traded price depending on the
convention of the exchange on which
the investment is quoted.
Unquoted investments are valued at
fair value by the Directors following
a detailed review and appropriate
challenge of the valuations proposed
by the Baillie Gifford Fair Value Pricing
Group. The unquoted investment policy
applies methodologies consistent with
the International Private Equity and
Venture Capital Valuation guidelines
(“IPEV”) and FRS 102.
The valuation of unquoted investments,
and the resultant impact on the
unrealised gains/(losses), is the area
requiring the most significant judgement
and estimation in the preparation of
the financial statements and has been
classified as an area of fraud risk as
highlighted below on page 83.
We performed the following procedures:
We obtained an understanding of Baillie Gifford’s processes
and controls surrounding legal title and pricing of quoted and
unquoted investments by performing walkthrough procedures
to evaluate the design and implementation of controls.
For 100% of quoted investments in the portfolio, we compared
the market prices to an independent pricing vendor and
recalculated the investment valuations as at the year-end.
We inspected the stale pricing reports produced by Baillie
Gifford to identify prices that have not changed around the
year-end and verified whether the listed price is a valid fair
value through review of trading activity.
For the unquoted investments held as at 30 April 2026 the
audit team, with the assistance of our valuation specialists
reviewed and challenged the valuations. This included:
•
Reviewing the valuation papers prepared by the Private
Companies Valuation Group and Fair Value Pricing Group
to gain an understanding of, and comment on, the valuation
methodologies and assumptions.
•
We have assessed the competence, capability and objectivity
of the Baillie Gifford Fair Value Pricing Group.
•
Assessing whether the valuations have been performed in
line with the valuation approaches as set out in UK GAAP
and the International Private Equity and Venture capital
(‘IPEV’) guidelines and FRS 102;
•
Assessing the appropriateness of the data inputs and
challenging the assumptions used to support the valuations;
•
Assessing other facts and circumstances, such as market
movement and comparative company information, that have
an impact on the fair market value of the investments; and
assessing whether managements valuation is reasonable.
•
Where our testing identified instances where valuations were
outside the expected range we held further discussions with
Baillie Gifford and the Audit Committee. In those discussions,
we discussed market trends and the valuation process and
requested further support for the valuation assumptions
where appropriate.
We recalculated the unrealised gains/losses on investments as
at the year-end using the book cost reconciliation.
We compared the Company’s investment holdings at 30 April
2026 to independent confirmations received directly from the
Company’s Custodian or from the investee company.
The results of
our procedures
identified no material
misstatement in
relation to the risk of
incorrect valuation
or ownership of the
investment portfolio.
Financial report
Annual Report and Financial Statements 2026
80
Risk Our response to the risk
Key observations
communicated to the
Audit Committee
Incomplete or inaccurate revenue
recognition (per the Audit Committee
report set out on page 67 to 69 and the
accounting policy set out on page 90).
The total revenue for the year to 30 April
2026 was £26.77m (2025: £25.95m),
consisting primarily of dividend income
from quoted investments.
There is a risk of incomplete or
inaccurate recognition of revenue
through the failure to recognise proper
income entitlements or to apply an
appropriate accounting treatment.
Additionally, in accordance with the AIC
SORP, special dividends received by
the Company can be included in either
the revenue or capital columns of the
Income Statement depending on the
commercial circumstances behind the
payments.
We have performed the following procedures:
We obtained an understanding of Baillie Gifford’s processes
and controls surrounding revenue recognition by performing
walkthrough procedures to evaluate the design and
implementation of controls.
For 100% of dividends received and accrued, we recalculated
the dividend income by multiplying the investment holdings at
the ex-dividend date, traced from the accounting records, by the
dividend per share obtained from an independent data vendor.
We agreed a sample of dividend receipts to bank statements.
Where dividends are received or accrued in foreign currency,
we translated the amount into the reporting currency of the
Company using exchange rates sourced from an independent
data vendor.
For 100% of dividends accrued, we reviewed the investee
company announcement to assess whether the dividend
obligation arose prior to 30 April 2026 and agreed the receipt of
dividends to post year end bank statements, where received.
To test completeness of recorded income, we verified that all
expected dividends for each investee company held during the
year have been recorded as income with reference to investee
company announcements obtained from an independent data
vendor.
For 100% of investments held during the year, we reviewed
the type of dividends paid with reference to an external data
vendor to identify those which were special and compared those
identified to management’s special dividend listing. We did not
identify any special dividends above our testing threshold.
The results of
our procedures
identified no material
misstatement in
relation to the risk
of incomplete or
inaccurate revenue
recognition.
Our application of materiality
We apply the concept of materiality in planning and
performing the audit, in evaluating the effect of
identified misstatements on the audit and in forming
our audit opinion.
Materiality
The magnitude of an omission or misstatement that,
individually or in the aggregate, could reasonably
be expected to influence the economic decisions
of the users of the financial statements. Materiality
provides a basis for determining the nature and
extent of our audit procedures.
We determined materiality for the Company to be
£25.18m (2025: £23.19m), which is 1% (2025:
1%) of net asset value. We believe that net asset
value provides us with materiality aligned to the key
measure of the Company’s performance.
Performance materiality
The application of materiality at the individual
account or balance level. It is set at an amount to
reduce to an appropriately low level the probability
that the aggregate of uncorrected and undetected
misstatements exceeds materiality.
On the basis of our risk assessments, together with
our assessment of the Company’s overall control
environment, our judgement was that performance
materiality was 75% (2025: 75%) of our planning
materiality, namely £18.89m (2025: £17.39m). We have
set performance materiality at this percentage due to
our experience of working in prior years working with
the key service providers that indicates a lower risk of
misstatements, both corrected and uncorrected.
Given the importance of the distinction between
revenue and capital for investment trusts, we have
applied a separate testing threshold for the revenue
column of the Income Statement of £1.26m (2025:
£1.16m), being our reporting threshold.
81
The Monks Investment Trust PLC
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion the part of the directors’ remuneration
report to be audited has been properly prepared in
accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the
course of the audit:
•
the information given in the strategic report and
the directors’ report for the financial year for which
the financial statements are prepared is consistent
with the financial statements; and
•
the strategic report and directors’ reports have
been prepared in accordance with applicable
legalrequirements.
Matters on which we are required to report
by exception
In the light of the knowledge and understanding of the
Company and its environment obtained in the course of
the audit, we have not identified material misstatements
in the strategic report or directors’ report.
We have nothing to report in respect of the following
matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
•
adequate accounting records have not been kept,
or returns adequate for our audit have not been
received from branches not visited by us; or
•
the financial statements and the part of the
Directors’ Remuneration Report to be audited are
not in agreement with the accounting records and
returns; or
•
certain disclosures of directors’ remuneration
specified by law are not made; or
•
we have not received all the information and
explanations we require for our audit
Reporting threshold
An amount below which identified misstatements
are considered as being clearly trivial.
We agreed with the Audit Committee that we would
report to them all uncorrected audit differences in
excess of £1.26m (2025: £1.16m), which is set at 5%
of planning materiality, as well as differences below
that threshold that, in our view, warranted reporting
on qualitative grounds.
We evaluate any uncorrected misstatements against
both the quantitative measures of materiality
discussed above and in light of other relevant
qualitative considerations in forming our opinion.
Other information
The other information comprises the information
included in the annual report, other than the
financial statements and our auditor’s report
thereon. The directors are responsible for the other
information contained within the annual report.
Our opinion on the financial statements does not
cover the other information and, except to the extent
otherwise explicitly stated in this report, we do not
express any form of assurance conclusion thereon.
Our responsibility is to read the other information
and, in doing so, consider whether the other
information is materially inconsistent with the
financial statements or our knowledge obtained in
the course of the audit or otherwise appears to be
materially misstated. If we identify such material
inconsistencies or apparent material misstatements,
we are required to determine whether this gives
rise to a material misstatement in the financial
statements themselves. If, based on the work we
have performed, we conclude that there is a material
misstatement of the other information, we are
required to report that fact.
We have nothing to report in this regard.
Financial report
Annual Report and Financial Statements 2026
82
Corporate Governance Statement
We have reviewed the directors’ statement in relation
to going concern, longer-term viability and that part
of the Corporate Governance Statement relating to
the Company’s compliance with the provisions of the
UK Corporate Governance Code specified for our
review by the UK Listing Rules.
Based on the work undertaken as part of our audit,
we have concluded that each of the following
elements of the Corporate Governance Statement is
materially consistent with the financial statements or
our knowledge obtained during the audit:
•
Directors’ statement with regards to the
appropriateness of adopting the going concern
basis of accounting and any material uncertainties
identified set out on pages 64 and 65;
•
Directors’ explanation as to its assessment of the
Company’s prospects, the period this assessment
covers and why the period is appropriate set out
on page 44;
•
Director’s statement on whether it has a
reasonable expectation that the Company will
be able to continue in operation and meets its
liabilities set out on page 44;
•
Directors’ statement on fair, balanced and
understandable set out on page 75;
•
Board’s confirmation that it has carried out a
robust assessment of the emerging and principal
risks set out on page 39;
•
The section of the annual report that describes the
review of effectiveness of risk management and
internal control systems set out on pages 63 and
64; and;
•
The section describing the work of the audit
committee set out on pages 67 and 69.
Responsibilities of Directors
As explained more fully in the directors’ responsibilities
statement set out on pages 74 and 75, the directors
are responsible for the preparation of the financial
statements and for being satisfied that they give a
true and fair view, and for such internal control as
the directors determine is necessary to enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud orerror.
In preparing the financial statements, the directors
are responsible for assessing the Company’s
ability to continue as a going concern, disclosing,
as applicable, matters related to going concern
and using the going concern basis of accounting
unless the directors either intend to liquidate the
Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK)
will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of these financial statements.
Explanation as to what extent the audit
was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined
above, to detect irregularities, including fraud. The
risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve deliberate
concealment by, for example, forgery or intentional
misrepresentations, or through collusion. The extent
to which our procedures are capable of detecting
irregularities, including fraud is detailed below.
83
The Monks Investment Trust PLC
However, the primary responsibility for the prevention
and detection of fraud rests with both those charged
with governance of the Company and management.
•
We obtained an understanding of the legal and
regulatory frameworks that are applicable to the
Company and determined that the most significant
are United Kingdom Generally Accepted
Accounting Practice, the Companies Act 2006,
the UK Listing Rules, UK Corporate Governance
Code, the Association of Investment Companies’
Code and Statement of Recommended Practice,
Section 1158 of the Corporation Tax Act 2010
and The Companies (Miscellaneous Reporting)
Regulations 2018.
•
We understood how the Company is complying
with those frameworks by discussions with the
Audit Committee and Company Secretary and
review of Board minutes and the Company’s
documented policies and procedures.
•
We assessed the susceptibility of the Company’s
financial statements to material misstatement,
including how fraud might occur by considering
the key risks impacting the financial statements.
We identified a fraud risk with respect to the
incorrect valuation of the unquoted investments
and the resulting impact on unrealised gains/
(losses). Further discussion of our approach is
set out in the section on key audit matters above
which include our response to the fraud risk and
other areas of audit focus.
•
Based on this understanding we designed our
audit procedures to identify non-compliance
with such laws and regulations. Our procedures
involved review of the reporting to the Directors
with respect to the application of the documented
policies and procedures and review of the financial
statements to ensure compliance with the
reporting requirements of the Company.
A further description of our responsibilities for
the audit of the financial statements is located
on the Financial Reporting Council’s website at
https://www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Other matters we are required to address
• Following the recommendation from the Audit
Committee, we were appointed by the Company
on 2 August 2017 to audit the financial statements
for the year ending 30 April 2018 and subsequent
financial periods.
The period of total uninterrupted engagement
including previous renewals and reappointments is
9 years, covering the years ending 30 April 2018
to 30 April 2026.
•
The audit opinion is consistent with the additional
report to the Audit Committee.
Use of our report
This report is made solely to the Company’s
members, as a body, in accordance with Chapter
3 of Part 16 of the Companies Act 2006. Our audit
work has been undertaken so that we might state
to the Company’s members those matters we are
required to state to them in an auditor’s report and
for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s
members as a body, for our audit work, for this
report, or for the opinions we have formed.
Ahmer Huda (Senior statutory auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor
London
30 June 2026
Financial report
Annual Report and Financial Statements 2026
84
For the year ended 30 April
Notes
2026
Revenue
£’000
2026
Capital
£’000
2026
Total
£’000
2025
Revenue
£’000
2025
Capital
£’000
2025
Total
£’000
Gains /(losses) on investments 9 – 627,441 627,441 – (18,354) (18,354)
Currency gains/(losses) 14 – 241 241 – (1,342) (1,342)
Income 2 25,575 – 25,575 25,953 – 25,953
Investment management fee 3 (9,482) – (9,482) (9,707) – (9,707)
Other administrative expenses 4 (1,936) – (1,936) (1,965) – (1,965)
Net return before finance costs
and taxation
14,157 627,682 641,839 14,281 (19,696) (5,415)
Finance costs of borrowings 5 (7,849) – (7,849) (8,546) – (8,546)
Net return on ordinary activities
before taxation
6,308 627,682 633,990 5,735 (19,696) (13,961)
Tax on ordinary activities 6 (2,350) 84 (2,266) (2,219) (575) (2,794)
Net return on ordinary activities
after taxation
3,958 627,766 631,724 3,516 (20,271) (16,755)
Net return per ordinary share 7 2.31p 366.24p 368.55p 1.75p (10.08p) (8.33p)
Note:
Dividends per share paid and
payable in respect of the year 8 0.90p 0.50p
The total column of this Statement represents the profit and loss account of the Company. The supplementary revenue and capital columns
arepreparedunder guidance issued by the Association of Investment Companies.
All revenue and capital items in this Statement derive from continuing operations.
A Statement of Comprehensive Income is not required as the Company does not have any other comprehensive income and the net return on ordinary
activities after taxation is both the profit and total comprehensive income for the year.
The accompanying notes on pages
88 to 106 are an integral part of the Financial Statements.
Income
statement
The Monks Investment Trust PLC
85
Balance sheet
* The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.
As at 30 April As at 30 April
Notes
2026
£’000
2026
£’000
2025
£’000
2025
£’000
Fixed assets
Investments held at fair value through profit or loss 9 2,735,550 2,528,471
Current assets
Debtors 10 2,538 3,917
Cash and cash equivalents 19 18,421 21,606
20,959 25,523
Creditors
Amounts falling due within one year
11 (66,463) (60,925)
Net current liabilities
(45,504) (35,402)
Total assets less current liabilities 2,690,046 2,493,069
Creditors
Amounts falling due after more than one year:
Loan notes 12 (172,905) (173,415)
Provision for tax liability 12 – (748)
(172,905) (174,163)
Net assets 2,517,141 2,318,906
Capital and reserves
Share capital 13 12,659 12,659
Share premium account 14 433,714 433,714
Capital redemption reserve 14 8,700 8,700
Capital reserve 14 1,986,420 1,791,234
Revenue reserve 14 75,648 72,599
Shareholders’ funds 15 2,517,141 2,318,906
Shareholders’ funds per ordinary share
(borrowingsatbookvalue)
15 1,598.7p 1,235.9p
The Financial Statements of The Monks Investment Trust PLC (Company registration number 236964) on
pages 84 to 106 were approved and authorised for issue by the Board and were signed on 30 June 2026.
Randeep Grewal
Chairman
Financial report
Annual Report and Financial Statements 2026
86
The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.
For the year ended 30 April 2026
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
Shareholders’ funds at 1 May 2025 12,659 433,714 8,700 1,791,234 72,599 2,318,906
Net return on ordinary activities
aftertaxation
627,766 3,958 631,724
Ordinary shares bought back 13 – – – (432,580) – (432,580)
Dividends paid during the year 8 – – – (909) (909)
Shareholders’ funds at 30 April 2026 12,659 433,714 8,700 1,986,420 75,648 2,517,141
For the year ended 30 April 2025
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
Shareholders’ funds at 1 May 2024 12,659 433,714 8,700 2,132,609 73,455 2,661,137
Net return on ordinary activities
after taxation
– – – (20,271) 3,516 (16,755)
Ordinary shares bought back 13 – – – (321,104) – (321,104)
Dividends paid during the year 8 – – – – (4,372) (4,372)
Shareholders’ funds at 30 April 2025 12,659 433,714 8,700 1,791,234 72,599 2,318,906
Statement of
changes in equity
The Monks Investment Trust PLC
87
The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.
For the year ended 30 April
Notes
2026
£’000
2026
£’000
2025
£’000
2025
£’000
Cash flows from operating activities
Net return on ordinary activities before taxation 633,990 (13,961)
Adjustments to reconcile company profit before tax to net cash flow from operating activities
Net (gains)/losses on investments (627,441) 18,354
Currency gains (241) 1,342
Finance costs of borrowings 7,849 8,546
Other capital movements
Increase in accrued income (132) (556)
Decrease in debtors 138 664
Decrease/(increase) in creditors 64 (402)
Taxation
Overseas tax incurred (2,987) (3,865)
Cash from operations* 11,240 10,122
Interest paid (8,669) (7,448)
Net cash inflow from operating activities 2,571 2,674
Cash flows from investing activities
Acquisitions of investments (698,366) (677,505)
Disposals of investments 1,123,925 987,588
Net cash inflow from investing activities 425,559 310,083
Cash flows from financing activities
Equity dividends paid 8 (909) (4,372)
Ordinary shares bought back and stamp duty thereon 13 (430,133) (324,293)
Borrowings drawn down 50,000 50,000
Borrowings repaid (50,000) (50,000)
Net cash outflow from financing activities (431,042) (328,665)
Decrease in cash and cash equivalents (2,912) (15,908)
Exchange movements (273) (1,108)
Cash and cash equivalents at 1 May 21,606 38,622
Cash and cash equivalents at 30 April 18,421 21,606
*
Cash from operations includes dividends received of £25,052,000 (2025 – £24,140,000) and interest received of £358,000 (2025 – £1,257,000).
Cash flow
statement
Financial report
Annual Report and Financial Statements 2026
88
Notes to the
Financial Statements
The Monks Investment Trust PLC (‘the Company’) is a public
company limited by shares and is incorporated in England and
Wales. The Company is an investment company within the meaning
of section 833 of the Companies Act 2006 and carries on business
as an investment trust.
01 Principal accounting policies
The Financial Statements for the year to 30 April 2026 have
been prepared in accordance with FRS 102 ‘The Financial
Reporting Standard applicable in the UK and Republic of
Ireland’ on the basis of the accounting policies set out below
which are unchanged from the prior year and have been
applied consistently.
a. Basis of accounting
All of the Company’s operations are of a continuing
nature and the Financial Statements are prepared on a
going concern basis under the historical cost convention,
modified to include fixed asset investments at fair
value through profit or loss, and on the assumption that
approval as an investment trust under section 1158 of
the Corporation Tax Act 2010 and the Investment Trust
(Approved Company) (Tax) Regulations 2011 will be
retained. The Board has, in particular, considered the
impact of heightened macroeconomic and geopolitical
uncertainty, including ongoing geopolitical tensions in
Ukraine and the Middle East, increasing fragmentation
of global trade and supply chains, and the implications of
higher interest rates and inflationary pressures in major
economies, but does not believe the Company’s going
concern status is affected.
The Company’s assets, the majority of which are
investments in listed securities which are readily realisable
(Level 1), exceed its liabilities significantly and could
be sold to repay borrowings if required. All borrowings
requirethe prior approval of the Board. Gearing levels
andcompliance with borrowing covenants are reviewed
bythe Board on a regular basis. As at 30 April 2026,
the £100million RBSI facility had £50 million available
commitment still undrawn.
The Company has continued to comply with the
investment trust status requirements of section 1158 of
the Corporation Tax Act 2010 and the Investment Trust
(Approved Company) Regulations 2011. The Company’s
primary third party suppliers, including its Managers and
Secretaries, custodian and depositary, registrar, auditor
and broker, are not experiencing significant operational
difficulties affecting their respective services to the
Company.
Accordingly, the Financial Statements have been
prepared on the going concern basis as it is the Directors’
opinion, having assessed the principal and emerging risks
and other matters set out in the Viability Statement on
page 44, which assesses the prospects of the Company
over a period of five years, that the Company will continue
in operational existence for the period to 30 June 2027,
which is a period of at least twelve months from the date
of approval of these Financial Statements.
The Financial Statements have been prepared in
accordance with the Companies Act 2006, applicable
United Kingdom Accounting Standards and with the
AIC’s Statement of Recommended Practice ‘Financial
Statements of Investment Trust Companies and Venture
Capital Trusts’ issued in July 2022.
In order to reflect better the activities of the Company
and in accordance with guidance issued by the AIC,
supplementary information which analyses the profit
and loss account between items of a revenue and capital
nature has been presented in the Income Statement.
In preparing these Financial Statements the Directors
have considered the impact of climate change risk as
a principal risk as set out on page 41. In line with FRS
102 investments are valued at fair value, being primarily
quoted prices for investments in active markets at
the balance sheet date, and therefore reflect market
participants’ view of climate change risk. Unlisted
investments, valued by reference to comparable
companies (see 1(d) below), similarly reflect market
participants’ view of climate change risk.
The Directors determine the Company’s functional
currency to be sterling as the Company’s shareholders are
predominantly based in the UK, the Company is subject to
the UK’s regulatory environment and it is the currency in
which its dividends and expenses are generally paid.
The Monks Investment Trust PLC
89
b. Financial instruments
Financial assets and financial liabilities are recognised
inthe Company’s Balance Sheet when it becomes a
partyto the contractual provisions of the instrument.
c. Significant accounting judgements and estimates
The preparation of the Financial Statements requires
the use of judgements and estimates. These judgements
and estimates affect the reported amounts of assets
and liabilities at the reporting date. While estimates are
based on best judgement using information and financial
data available, the actual outcome may differ from these
estimates. The key sources of estimation and uncertainty
relate to the fair value of the unlisted investments.
Judgements
The Directors consider that the preparation of the
Financial Statements involves the following key
judgements:
i. the determination of the functional currency of the
Company as sterling (see rationale in 1(a) above); and
ii. the fair valuation of the unlisted investments.
The key judgements in the fair valuation process are:
i. the Managers’ determination of the appropriate
application of the International Private Equity and
Venture Capital Valuation (‘IPEV’) Guidelines 2025
toeach unlisted investment; and
ii. the Directors’ consideration of whether each fair
value is appropriate following detailed review and
challenge. The judgement applied in the selection of
the methodology used (see 1(d) below) for determining
the fair value of each unlisted investment can have a
significant impact upon the valuation.
Estimates
The key estimate in the Financial Statements is the
determination of the fair value of the unlisted investments
by the Managers for consideration by the Directors. This
estimate is key as it significantly impacts the valuation of
the unlisted investments at the Balance Sheet date. The
fair valuation process involves estimation using subjective
inputs that are unobservable (for which market data is
unavailable). The main estimates involved in the selection
of the valuation process inputs are:
i. the selection of appropriate comparable companies
in order to derive revenue multiples and meaningful
relationships between enterprise value, revenue and
earnings growth. Comparable companies are chosen
onthe basis of their business characteristics and
growth patterns;
ii. the selection of a revenue metric (either historical or
forecast);
iii. the application of an appropriate discount factor to
reflect the reduced liquidity of unlisted companies
versus their listed peers;
iv. the estimation of the probability assigned to an exit
being through an initial public offering (‘IPO’) or a
company sale;
v. the selection of an appropriate industry benchmark
index to assist with the valuation validation or the
application of valuation adjustments, particularly in the
absence of established earnings or closely comparable
peers; and
vi. the calculation of valuation adjustments derived from
milestone analysis (i.e. incorporating operational
success against the plan/forecasts of the business into
the valuation).
Fair value estimates are cross-checked to alternative
estimation methods where possible to improve the
robustness of the estimates. As the valuation outcomes
may differ from the fair value estimates a price sensitivity
analysis is provided in Other price risk sensitivity in
note19 on pages 103 to 105 to illustrate the effect on the
Financial Statements of an over or under estimation of
fairvalues. The risk of an over or under estimation of fair
values is greater when methodologies are applied using
more subjective inputs.
Financial report
Annual Report and Financial Statements 2026
90
d. Investments
Purchases and sales
The Company’s investments are classified, recognised
and measured at fair value through profit and loss
in accordance with sections 11 and 12 of FRS 102.
Investment purchases and sales are recognised on a
trade date basis. Investments are initially measured at
their transaction price excluding expenses incidental to
purchases which are expensed to capital on acquisition.
Gains and losses on investments, including those arising
from foreign currency exchange differences and expenses
incidental to the purchase and sale of investments, are
recognised in the Income Statement as capital items.
Listed investments
The fair value of listed investments is either the bid price
or the last traded price depending on the convention of
the exchange on which the investment is listed. The fair
value of suspended investments and unlisted investments
in listed companies is determined on a case by case basis,
to reflect the unique circumstances of the instrument in
question.
Private company investments
Private company investments are valued at fair value by
the Directors following a detailed review and appropriate
challenge of the valuations proposed by the Managers.
The valuation process is overseen by the Private
Companies Valuations Group at Baillie Gifford which is
independent from the portfolio managers and which takes
advice from an independent third party (S&P Global). The
Managers’ private company investment policy applies
techniques consistent with the International Private Equity
and Venture Capital Valuation Guidelines 2025 (‘IPEV’).
The techniques applied are predominantly market-based
approaches. The market-based approaches available
under IPEV are set out below and are followed by an
explanation of how they are applied to the Company’s
private company portfolio:
• Multiples;
• Industry valuation benchmarks; and
• Available market prices.
The nature of the private company portfolio currently
will influence the valuation technique applied. The
valuation approach recognises that, as stated in the
IPEV Guidelines, the price of a recent investment,
if resulting from an orderly transaction, generally
represents fair value as at the transaction date and
may be an appropriate starting point for estimating fair
value at subsequent measurement dates. However,
consideration is given to the facts and circumstances as
at the subsequent measurement date, including changes
in the market or performance of the investeecompany.
Milestone analysis is used where appropriate to
incorporate the operational progress of the investee
company into the valuation. Additionally, the background
to the transaction must be considered. As a result,
various multiples-based techniques are employed to
assess the valuations particularly in those companies with
established revenues. Discounted cashflows are used
where appropriate. An absence of relevant industry peers
may preclude the application of the Industry Valuation
Benchmarks technique and an absence of observable
prices may preclude the Available Market Prices approach.
All valuations are cross-checked for reasonableness by
employing relevant alternativetechniques.
The private company investments are valued according
to a three monthly cycle of measurement dates. The fair
value of the private company investments will be reviewed
before the next scheduled three monthly measurement
date on the following occasions:
• at the year end and half year end of the Company; and
• where there is an indication of a change in fair value as
defined in the IPEV guidelines (commonly referred to
as‘trigger’ events).
e. Cash and cash equivalents
Cash equivalents comprise short-term highly liquid
investments that are readily convertible to known
amounts of cash and are subject to an insignificant risk
ofchanges in value.
f. Income
i. Income from equity investments is brought into
account on the date on which the investments are
quoted ex-dividend or, where no ex-dividend date is
quoted, when the Company’s right to receive payment
is established. Equity investment income includes
distributions from Collective Investment Schemes, other
than those that relate to equalisation which are treated
as capital items. Special dividends are treated as
revenue or capital items depending on the facts of each
particular case.
If scrip is taken in lieu of dividends in cash, the net
amount of the cash dividend declared is credited to the
revenue account. Any excess in the value of the shares
received over the amount of the cash dividend foregone
is recognised as capital.
ii. Interest from fixed interest securities is recognised
onan effective yield basis.
iii. Unfranked investment income and overseas dividends
include the taxes deducted at source.
iv. Interest receivable on deposits is recognised on an
accruals basis.
The Monks Investment Trust PLC
91
g. Expenses
All expenses are accounted for on an accruals basis
and are charged to the revenue account except where:
(i) they relate to expenses incidental to the purchase
or sale of investments (transaction costs) which are
charged to capital. Transaction costs are detailed in
note 9 on page95; or (ii) they relate directly to the
buy-back/issuance of shares, in which case they are
added to the buy-back cost or deducted from the share
issuanceproceeds.
h. Borrowings and finance costs
Borrowings, which comprise interest bearing bank loans
and loan notes are recognised initially at the fair value of
the consideration received net of any issue expenses (the
transaction price), and subsequently at amortised cost
using the effective interest rate method. The finance costs
of such borrowings are accounted for on an accruals basis
using the effective interest rate method and are allocated
to revenue in the Income Statement.
i. Taxation
The taxation charge represents the sum of current tax,
the movement in the provision for Indian Capital Gains
Tax, and the movement in the provision for deferred
taxation during the year. Current taxation represents
non-recoverable overseas tax which is charged to the
revenue accounts where it relates to income received
and to capital where it relates to items of a capital nature.
Deferred taxation is provided on all timing differences
which have originated but not reversed by the Balance
Sheet date, calculated on a non-discounted basis at the
tax rates expected to apply when the timing differences
reverse, based on what has been enacted or substantively
enacted, relevant to the benefit or liability. Deferred tax
assets are recognised only to the extent that it is more
likely than not that there will be taxable profits from
whichunderlying timing differences can be deducted.
j. Dividends payable
Where relevant, interim dividends are recognised in
the period in which they are paid. Final dividends are
recognised in the period in which the dividends are
approved by the Company’s shareholders.
k. Foreign currencies
Transactions involving foreign currencies are converted
at the rate ruling at the time of the transaction. Monetary
assets and liabilities and fixed asset investment in foreign
currencies are translated at the closing rates of exchange
at the Balance Sheet date. Any gain or loss arising from
a change in exchange rate subsequent to the date of the
transaction is included as an exchange gain or loss in the
Income Statement as capital or revenue as appropriate.
l. Share premium account
The balance classified as share premium represents:
• the excess of the proceeds of issuance of new shares
over the nominal value; and
• the proceeds of sales of shares held in treasury
inexcess of the weighted average price paid by
theCompany to repurchase the shares.
m. Capital redemption reserve
The nominal value of ordinary share capital repurchased
and cancelled is transferred out of the called-up share
capital and into the capital redemption reserve.
n. Capital reserve
Gains and losses on realisation of investments, changes
in the fair value of investments held and exchange
differences of a capital nature are dealt with in this
reserve. Purchases of the Company’s own shares are also
funded from this reserve. The sales proceeds of treasury
shares reissued are treated as a realised profit up to the
amount of the weighted average purchase price of those
shares and transferred to the capital reserve.
o. Revenue reserve
The revenue profit or loss for the year is taken to or from
this reserve. The revenue reserve may be distributed by
way of a dividend.
p. Single segment reporting
The Company is engaged in a single segment of business,
being that of an investment trust company, consequently
no business segmental analysis is provided.
Financial report
Annual Report and Financial Statements 2026
92
02 Income
2026
£’000
2025
£’000
Income from investments
UK dividends 1,878 1,175
Overseas dividends 23,306 23,521
25,184 24,696
Other income
Deposit interest 358 1,257
Miscellaneous income 33 –
Total income 25,575 25,953
Total income comprises:
Dividends from financial assets classified as at fair value through profit or loss 25,184 24,696
Interest from financial assets not at fair value through profit or loss 391 1,257
25,575 25,953
Special dividend entitlements arising in the year amounted to £1,055,000 (2025 – £459,000).
03 Investment management fee
2026
£’000
2025
£’000
Investment management fee 9,482 9,707
Details of the Investment Management Agreement are disclosed on pages 54 and 55. The annual management fee payable
to Baillie Gifford & Co Limited is 0.45% on the first £750 million of total assets, 0.33% on the next £1 billion of total assets
and 0.30% on the remaining total assets. For fee purposes, total assets is defined as the total value of all assets held less all
liabilities (other than any liability in the form of debt intended for investment purposes) and excludes the value of the Company’s
holding inThe 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.
04 Other administrative expenses
2026
£’000
2025
£’000
Custody fees 330 347
Depositary fees 250 260
Registrar fees 38 38
General administrative expenses 474 510
Marketing expenses* 486 450
Directors’ fees (see Directors’ Remuneration Report on pages 70 to 73) 277 282
Auditor’s remuneration – statutory audit of annual Financial Statements
†
81 78
1,936 1,965
*
The Company is part of a marketing programme which includes all the investment trusts managed by the Managers. The marketing strategy has
an ongoing objective to stimulate demand for the Company’s shares. The cost of this marketing strategy is borne, in partnership, by the Company
and the Managers. The Managers match the Company’s marketing contribution and provides the resource to manage and run the programme.
†
Irrecoverable VAT on audit fees is included within general administrative expenses.
The Monks Investment Trust PLC
93
05 Finance costs of borrowings
2026
£’000
2025
£’000
Bank loans 3,069 3,865
Loan notes 4,780 4,681
7,849 8,546
06 Tax
2026
Revenue
£’000
2026
Capital
£’000
2026
Total
£’000
2025
Revenue
£’000
2025
Capital
£’000
2025
Total
£’000
Overseas taxation 2,350 – 2,350 2,219 – 2,219
Indian capital gains tax paid
and provided for
– (84) (84) – 575 575
2,350 (84) 2,266 2,219 575 2,794
2026
£’000
2025
£’000
Factors affecting the tax charge for the year
The tax charge for the year is higher (2025 – higher) than the standard rate of
corporation tax in the UK of 25% (2025 – 25%). The differences are explained below:
Net return before taxation 633,990 (13,961)
Net return before taxation multiplied by the average standard rate of corporation
tax in the UK of 25% (2025 – 25%)
158,498 (3,490)
Capital returns not taxable (156,921) 4,588
Income not taxable (6,296) (5,560)
Taxable expenses in the year not utilised 4,719 4,504
Overseas tax 2,350 2,177
Revenue tax charge for the year 2,350 2,219
Decrease in provision for tax liability in respect of Indian capital gains (748) (1,148)
Payment of Indian tax in respect of sales of investments 664 1,723
Capital tax charge for the year (84) 575
Total tax charge for the year 2,266 2,794
As an investment trust, the Company’s capital gains are not taxable in the United Kingdom.
The capital tax charge results from the movement in the provision for tax liability in respect of Indian capital gains tax as detailed
in note 12.
Factors that may affect future tax charges
At 30 April 2026 the Company had surplus management expenses and losses on non-trading loan relationships of £159,751,000
(2025 – £146,353,000). No deferred tax asset has been recognised in respect of these amounts because the Company is
not expected to generate taxable income in a future period in excess of the deductible expenses of that future period and,
accordingly, it is unlikely that the Company will be able to reduce future tax liabilities through the use of existing surplus expenses.
Financial report
Annual Report and Financial Statements 2026
94
07 Net return per ordinary share
2026
Revenue
2026
Capital
2026
Total
2025
Revenue
2025
Capital
2025
Total
Net return after taxation 2.31p 366.24p 368.55p 1.75p (10.08p) (8.33p)
Revenue return per ordinary share is based on the net revenue return on ordinary activities after taxation of £3,958,000 (2025 –
£3,516,000) and on 171,406,226 (2025 – 201,138,932) ordinary shares, being the weighted average number of ordinary shares in
issue during the year.
Capital return per ordinary share is based on the net capital gain for the financial year of £627,766,000 (2025 – loss of £20,271,000)
and on 171,406,226 (2025 – 201,138,932) ordinary shares, being the weighted average number of ordinary shares in issue during
the year.
There are no dilutive or potentially dilutive shares in issue.
08 Ordinary dividends
2026 2025
2026
£’000
2025
£’000
Amounts recognised as distributions in the year:
Previous year’s final (paid 16 September 2025) 0.50p 2.10p 909 4,372
Set out below are the total dividends paid and proposed in respect of the financial year, which is the basis on which the
requirements of section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of
dividend for the year is £3,958,000 (2025 – £3,516,000).
2026 2025
2026
£’000
2025
£’000
Amounts paid and payable in respect of the financial year
Proposed final (payable 15 September 2026) 0.90p 0.50p 1,417 938
09 Fixed assets – investments
As at 30 April 2026
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed and suspended equities 2,609,602 – – 2,609,602
Unlisted securities – – 125,948 125,948
Total financial asset investments 2,609,602 – 125,948 2,735,550
As at 30 April 2025
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed and suspended equities 2,379,564 68,420 – 2,447,984
Unlisted securities – – 80,487 80,487
Total financial asset investments 2,379,564 68,420 80,487 2,528,471
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,
whichreflects the reliability and significance of the information used to measure their fair value.
During the year, a listed equity investment with fair value at the previous year end of £68,420,000 was transferred from Level2
to Level 1. The investment is listed on the London Stock Exchange and is now trading on the Main Market. The suspended
investment in Sberbank of Russia has been valued at nil.
The Monks Investment Trust PLC
95
09 Fixed assets – investments (continued)
Fair value hierarchy
The fair value hierarchy used to analyse the basis on which the fair values of financial instruments held at fair value through the
profit and loss account are measured is described below. Fair value measurements are categorised on the basis of the lowest level
input that is significant to the fair value measurement.
Level 1 – using unadjusted quoted prices for identical instruments in an active market;
Level 2 – using inputs, other than quoted prices included within Level 1, that are directly or indirectly observable (based on market
data); and
Level 3
– using inputs that are unobservable (for which market data is unavailable).
The valuation techniques used by the Company are explained in the accounting policies on pages 89 and 90. A sensitivity analysis
byvaluation technique of the unlisted securities is on pages 103 to 105.
2026
Listed
securities
£’000
2026
Unlisted
securities
*
£’000
2026
Total
securities
£’000
2025
Total
securities
£’000
Cost of investments at start of year 1,819,112 58,231 1,877,343 1,843,106
Investment holding gains at start of year 628,872 22,256 651,128 1,003,962
Value of investments at start of year 2,447,984 80,487 2,528,471 2,847,068
Movements in year:
Purchases at cost 702,218 – 702,218 678,941
Sales proceeds received (1,122,580) – (1,122,580) (979,184)
Gains/(losses) on investments 581,980 45,461 627,441 (18,354)
Value of investments at end of year 2,609,602 125,948 2,735,550 2,528,471
Cost of investments at end of year 1,713,004 58,231 1,771,235 1,877,343
Investment holding gains at end of year 896,598 67,7 1 7 964,315 651,128
Value of investments at end of year 2,609,602 125,948 2,735,550 2,528,471
*
Includes holdings in ordinary shares, preference shares and contingent value rights.
The Company received proceeds of £1,122,580,000 (2025 – £979,184,000) from investments sold during the year. The book cost
of these investments when they were purchased was £808,327,000 (2025 – £644,704,000). These investments have been revalued
over time and, until they were sold, any unrealised gains/losses were included in the fair value of the investments. Transaction costs
of £598,000 (2025 – £433,000) and £509,000 (2025 – £407,000) were suffered on purchases and sales respectively.
Financial report
Annual Report and Financial Statements 2026
96
09 Investments (continued)
2026
£’000
2025
£’000
Net gains/(losses) on investments
Realised gains/(losses) on sales 314,254 334,480
Changes in investment holding gains 313,187 (352,834)
627,441 (18,354)
Significant Holdings Disclosure Requirements – Companies Act 2006
The following is provided in accordance with the disclosure requirements of the Companies Act 2006 in relation to investments
which amount to 20% or more of the nominal value of any class of shares in an undertaking.
During the year the Company had a holding in class A shares of Silk Invest Private Equity Fund S.A. SICAR, compartment
‘SilkInvest Africa Food Fund’ which is incorporated in Luxembourg. At 30 April Monks holding was:
2026
Shares
held
2026
Value
£’000
2026
% of
shares held
2025
Shares
held
2025
Value
£’000
2025
% of
shares held
Silk Invest Africa Food Fund 10,000 2,551 42.6 10,000 2,438 42.6
10 Debtors
2026
£’000
2025
£’000
Amounts falling due within one year:
Accrued income 1,508 1,403
Investment sales awaiting settlement – 1,345
Share issuance proceeds awaiting settlement – block listing fee prepaid 60 60
Overseas taxation recoverable 779 952
Other debtors and prepaid expenses 191 157
2,538 3,917
None of the above debtors are financial assets held at fair value through profit or loss. The carrying amount of debtors is
areasonable approximation of fair value.
11 Creditors – amounts falling due within one year
2026
£’000
2025
£’000
Royal Bank of Scotland International Limited 50,000 50,000
Investment purchases awaiting settlement
8,556 4,704
Share buybacks awaiting settlement
3,180 733
Other creditors and accruals 4,727 5,488
66,463 60,925
None of the above creditors are financial liabilities held at fair value through profit or loss. Included in other creditors is
£2,300,000 (2025 – £2,212,000) in respect of the investment management fee.
The Monks Investment Trust PLC
97
11 Creditors – amounts falling due within one year (continued)
Borrowing facilities
At 30 April 2026 the Company had a 3 year £100 million unsecured floating rate revolving facility with Royal Bank of Scotland
International Limited, which expires on 28 November 2027.
At 30 April 2026 drawings were as follows:
— The Royal Bank of Scotland International Limited: £50 million at an interest rate of 1.6% over SONIA, maturing in May 2026 (2025 –
The Royal Bank of Scotland International Limited: £50 million at an interest rate of 1.6% over SONIA, maturing in May 2025).
The main covenants relating to the above loans are that total borrowings shall not exceed 30% of the Company’s adjusted net
asset value and the Company’s minimum adjusted net asset value shall be £650 million.
There were no breaches of loan covenants during the year to 30 April 2026 (2025 – none).
12 Creditors – amounts falling due after more than one year
Repayment
date
Nominal
rate
Effective
rate
2026
£’000
2025
£’000
£60 million 1.86% notes 2054 7/8/2054 1.86% 1.86% 59,911 59,910
£40 million 1.77% notes 2045 7/8/2045 1.77% 1.77% 39,962 39,958
¥2,500 million 2.17% notes 2037 12/12/2037 2.17% 2.17% 11,740 13,122
€18 million 4.55% notes 2035 12/12/2035 4.55% 4.55% 15,539 15,319
€35 million 4.29% notes 2033 12/12/2033 4.29% 4.29% 30,214 29,787
€18 million 4.30% notes 2030 12/12/2030 4.30% 4.30% 15,539 15,319
172,905 173,415
Provision for liability in respect of Indian capital gains tax – 748
172,905 174,163
Unsecured loan notes
The unsecured loan notes are stated at the cumulative amount of net proceeds after issue expenses. The cumulative effect is
toreduce the carrying amount of borrowings by £127,000 (2025 – £132,000).
Provision for tax liability
The tax liability provision at 30 April 2026 of £nil (30 April 2025 – £748,000) 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
2026
Number
2026
£’000
2025
Number
2025
£’000
Allotted, called up and fully paid ordinary shares of 5p each 157,453,530 7,873 187,622,666 9,381
Treasury shares of 5p each 95,717,930 4,786 65,548,794 3,278
Total 253,171,460 12,659 253,171,460 12,659
The Company’s authority permits it to hold shares bought back ‘in treasury’. Such treasury shares may be subsequently either
sold for cash (at, or at a premium to, net asset value per ordinary share) or cancelled. In the year to 30 April 2026, 30,169,136
shares with a nominal value of £1,508,000 were bought back at a total cost of £432,580,000 to be held in treasury (2025 –
26,508,000 ordinary shares with a nominal value of £1,325,000 were bought back at a total cost of £321,104,000 and held in
treasury). Noshares were issued from treasury during the year and at 30 April 2026 95,717,930 (2025 – 65,548,794) shares
were held in treasury. At 30 April 2026 the Company had authority to buy back 8,772,043 ordinary shares and to allot or sell from
treasury 21,061,566 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 reserv
e. In the period 1 May 2026 to 26 June 2026 the Company
bought back a further 3,198,000 shares with a nominal value of £159,900 at a total cost of £51,439,000 to be held in treasury.
At 26June 2026 98,915,930 shares were held in treasury and the Company had authority remaining to buy back a further
22,770,112 ordinary shares.
Financial report
Annual Report and Financial Statements 2026
98
14 Capital and reserves
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
At 1 May 2025 12,659 433,714 8,700 1,791,234 72,599 2,318,906
Gains on investments – – – 627,441 – 627,441
Exchange differences on borrowings – – – 514 – 514
Other exchange differences – – – (273) – (273)
Indian capital gains tax paid and
provided for
– – – 84 – 84
Revenue return on ordinary activities
after taxation
– – – – 3,958 3,958
Ordinary shares bought back – – – (432,580) – (432,580)
Dividends paid in the year – – – – (909) (909)
At 30 April 2026 12,659 433,714 8,700 1,986,420 75,648 2,517,141
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
At 1 May 2024 12,659 433,714 8,700 2,132,609 73,455 2,661,137
Gains on investments – – – (18,354) – (18,354)
Exchange differences on borrowings – – – (234) – (234)
Other exchange differences – – – (1,108) – (1,108)
Indian capital gains tax paid and
provided for
– – – (575) – (575)
Revenue return on ordinary activities
after taxation
– – – – 3,516 3,516
Ordinary shares bought back – – – (321,104) – (321,104)
Dividends paid in the year – – – – (4,372) (4,372)
At 30 April 2025 12,659 433,714 8,700 1,791,234 72,599 2,318,906
The capital reserve balance at 30 April 2026 includes investment holding gains on investments of £964,315,000 (2025 – gains of
£651,128,000) as detailed in note 9 on page 95. The revenue reserve is distributable by way of dividend.
The Monks Investment Trust PLC
99
15 Shareholders’ funds per ordinary share
2026 2025
Shareholders’ funds £2,517,141,000 £2,318,906,000
Number of ordinary shares in issue at the year end 157,453,530 187,622,666
Shareholders’ funds per ordinary share 1,598.7p 1,235.9p
The shareholders’ funds figures above have been calculated after deducting borrowings at book value, in accordance with the
provisions of FRS 102. The net asset value figures have been calculated after deducting borrowings at either par value or fair
value. Reconciliations between shareholders’ funds and both NAV measures are shown in the Glossary of terms and Alternative
Performance Measures on pages 120 to 124.
16 Analysis of change in net debt
At 1 May
2025
£’000
Cash flows
£’000
Other
non-cash
changes
£’000
Exchange
movement
£’000
At 30 April
2026
£’000
Cash and cash equivalents 21,606 (2,912) – (273) 18,421
Loans due within one year
(50,000) – – – (50,000)
Loan notes (173,415) – (3) 514 (172,905)
(201,809) (2,912) (3) 241 (204,484)
At 1 May
2024
£’000
Cash flows
£’000
Other
non-cash
changes
£’000
Exchange
movement
£’000
At 30 April
2025
£’000
Cash and cash equivalents 38,622 (15,908) – (1,108) 21,606
Loans due within one year
(50,000) – – – (50,000)
Loan notes (173,176) – (5) (234) (173,415)
(184,554) (15,908) (5) (1,342) (201,809)
17 Contingent liabilities, guarantees and financial commitments
At 30 April 2026 and 30 April 2025 the Company had no contingent liabilities, guarantees or financial commitments.
18 Transactions with related parties and the Managers and Secretaries
The Directors’ fees and shareholdings are detailed in the Directors’ Remuneration Report on pages 70 to 73. No Director has
a contract of service with the Company. During the year no Director was interested in any contract or other matter requiring
disclosure under section 412 of the Companies Act 2006.
Baillie Gifford & Co Limited has been appointed as the Company’s Alternative Investment Fund Manager (‘AIFM’) and Company
Secretaries. Details of the terms of the Investment Management Agreement are set out on pages 54 and 55 and details of the
feesduring the year and the balances outstanding at the year end are shown in notes 3 and 11 respectively. The Company is part
of a marketing programme which includes all the investment trusts managed by the Managers, details of which are shown in
note4.
Financial report
Annual Report and Financial Statements 2026
100
19 Financial instruments
As an investment trust, the Company invests in equities and makes other investments so as to secure its investment objective
of capital growth. The Company borrows money when the Board and investment managers have sufficient conviction that the
assets funded by borrowed monies will generate a return in excess of the cost of borrowing. In pursuing its investment objective,
the Company is exposed to a variety of risks that cause short term variation in the Company’s net assets and could result in either
areduction in the Company’s net assets or a reduction in the profits available for dividend.
These risks are categorised here as market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk
andcredit risk. The Board monitors closely the Company’s exposures to these risks but does so in order to reduce the likelihood
of a permanent reduction in the Company’s net assets rather than to minimise the short term volatility.
The risk management policies and procedures outlined in this note have not changed substantially from the previous
accountingperiod.
Market risk
The fair value or future cash flows of a financial instrument or other investment held by the Company may fluctuate because of
changes in market prices. This market risk comprises three elements – currency risk, interest rate risk and other price risk. The
Board reviews and agrees policies for managing these risks and the Company’s investment managers both assess the exposure
to market risk when making individual investment decisions and monitor the overall level of market risk across the investment
portfolio on an ongoing basis.
Details of the Company’s investment portfolio are shown in note 9.
Currency risk
Certain of the Company’s assets, liabilities and income are denominated in currencies other than sterling (the Company’s
functional currency and that in which it reports its results). Consequently, movements in exchange rates may affect the sterling
value of those items.
The Managers monitor the Company’s exposure to foreign currencies and report to the Board on a regular basis. The Managers
assess the risk to the Company of the foreign currency exposure by considering the effect on the Company’s net asset value
andincome of a movement in the rates of exchange to which the Company’s assets, liabilities, income and expenses are exposed.
However, the currency in which a company’s share price is quoted is not necessarily the one in which it earns its profits.
The movement in exchange rates on overseas earnings may have a more significant impact upon a company’s valuation than
asimple translation of the currency in which the share price of the company is quoted.
Foreign currency borrowings can limit the Company’s exposure to anticipated future changes in exchange rates which might
otherwise adversely affect the value of the portfolio of investments.
Exposure to currency risk through asset allocation, which is calculated by reference to the currency in which the asset or liability
is quoted, is shown below.
At 30 April 2026
Investments
£’000
Cash and
deposits
£’000
Loans and
loan notes
£’000
Other debtors
andcreditors *
£’000
Net
exposure
£’000
US dollar 1,915,665 6,793 – 430 1,922,888
Euro 123,054 – (61,292) 779 62,541
Japanese yen 105,137 – (11,740) 224 93,621
Other overseas currencies 561,191 8,556 – (8,445) 561,302
Total exposure to currency risk 2,705,047 15,349 (73,032) (7,012) 2,640,352
Sterling 30,503 3,072 (149,873) (6,913) (123,211)
2,735,550 18,421 (222,906) (13,924) 2,517,141
*
Includes non-monetary assets of £144,000.
The Monks Investment Trust PLC
101
19 Financial instruments (continued)
Currency risk (continued)
At 30 April 2025
Investments
£’000
Cash and
deposits
£’000
Loans and
loan notes
£’000
Other debtors
andcreditors *
£’000
Net
exposure
£’000
US dollar 1,731,828 2,718 – (1,975) 1,732,571
Euro 219,761 – (60,425) 952 160,288
Japanese yen 126,008 790 (13,122) (303) 113,373
Other overseas currencies 367,363 778 – 322 368,785
Total exposure to currency risk 2,444,960 4,286 (73,547) (1,004) 2,374,695
Sterling 83,511 17,320 (149,868) (6,752) (55,789)
2,528,471 21,606 (223,415) (7,756) 2,318,906
*
Includes non-monetary assets of £104,000.
Currency risk sensitivity
At 30 April 2026, if sterling had strengthened by 5% in relation to all currencies, with all other variables held constant, total net
assets and total return on ordinary activities would have decreased by the amounts shown below. A 5% weakening of sterling
against all currencies, with all other variables held constant, would have had an equal but opposite effect on the Financial
Statement amounts. The analysis was performed on the same basis for 2025.
2026
£’000
2025
£’000
US dollar 96,144 86,629
Euro 3,127 8,014
Japanese yen 4,681 5,669
Other overseas currencies 28,065 18,423
132,018 118,735
Interest rate risk
Interest rate movements may affect directly:
•
the fair value of any investments in fixed interest rate securities;
• the level of income receivable on cash deposits;
• the fair value of the Company’s fixed-rate borrowings; and
• the interest payable on any variable rate borrowings which the Company may take out.
The effect of interest rate movements upon the earnings of an investee company may have a significant impact upon the valuation
of that company’s equity. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates
are taken into account when making investment decisions and when entering borrowing agreements. The Board reviews on a
regular basis the amount of investments in cash and fixed income securities and the income receivable on cash deposits, floating
rate notes and other similar investments. The Company finances part of its activities through borrowings at approved levels. The
amount of such borrowings and the approved levels are monitored and reviewed regularly by the Board.
Movements in interest rates, to the extent that they affect the fair value of the Company’s fixed rate borrowings, may also affect
the amount by which the Company’s share price is at a discount or a premium to the net asset value (with borrowings at fair value)
assuming that the Company’s share price is unaffected by movements in interest rates.
Financial report
Annual Report and Financial Statements 2026
102
19 Financial instruments (continued)
Financial assets
The Company’s interest rate risk exposure on its financial assets at 30 April 2026 amounted to £18,421,000 (2025 – £21,606,000),
comprising its cash and short term deposits.
The cash deposits generally comprise call or short term money market deposits of less than one month which are repayable on
demand. The benchmark rate which determines the interest payments received on cash balances is the bank base rate.
Financial liabilities
The interest rate risk profile of the Company’s bank loans and loan notes and the maturity profile of the undiscounted future cash
flows in respect of the Company’s contractual financial liabilities at 30 April are shown below.
Interest rate risk profile
2026
£’000
2025
£’000
Floating rate – sterling 50,000 50,000
Fixed rate – sterling 99,873 99,868
Fixed rate – euro 61,292 60,425
Fixed rate – yen 11,740 13,122
222,905 223,415
Maturity profile
2026
Within
1 year
£’000
2026
Between 1
and 5 years
£’000
2026
More than
5 years
£’000
2025
Within
1 year
£’000
2025
Between 1
and 5 years
£’000
2025
More than
5 years
£’000
Repayment of loans
and loan notes
50,000 – 172,905 50,000 – 173,415
Interest on loans
and loan notes
5,424 19,001 45,743 6,378 18,969 50,546
55,424 19,001 218,648 56,378 18,969 223,961
Interest rate risk sensitivity
An increase of 100 basis points in interest rates applied to the Company’s financial liabilities as at 30 April 2026 would have
decreased net assets and total return on ordinary activities by £86,000 (2025 – £210,000) owing to its impact on floating rate
liabilities. A decrease of 100 basis points would have increased net assets and total return on ordinary activities by £86,000
(2025– £210,000) owing to its impact on floating rate liabilities.
Other price risk
Changes in market prices other than those arising from interest rate risk or currency risk may also affect the value of the
Company’s net assets. The Board manages the market price risks inherent in the investment portfolio by ensuring full and
timely access to relevant information from the Managers. The Board meets regularly and at each meeting reviews investment
performance, the investment portfolio and the rationale for the current investment positioning to ensure consistency with the
Company’s objective and investment policy.
The Monks Investment Trust PLC
103
19 Financial instruments (continued)
Other price risk sensitivity
A full list of the Company’s investments is shown on pages 24 to 27. In addition, various analyses of the portfolio by growth
category, thematic risk category, geography and broad industrial or commercial sector are contained in the Strategic
Report. 103.7% of the Company’s net assets are invested in quoted equities (2025 – 102.6%). A 10% increase in quoted
equity valuations at 30 April 2026 would have increased total assets and total return on ordinary activities by £261,000,000
(2025–£244,798,000). A decrease of 10% would have had an equal but opposite effect.
5.0% (2025 – 3.5%) of the Company’s net assets are invested in private company investments. The fair valuation of the private
company investments is influenced by the estimates and judgements made in the fair valuation process (see 1(c) on page 89).
A sensitivity analysis is provided below which recognises that the valuation methodologies employed involve subjectivity in their
significant unobservable inputs and illustrates the sensitivity of the valuations to these inputs. The table also provides the range of
values for the key unobservable inputs. It should be noted that £47,605,000 (2025 – £32,007,000) of the private company value
is attributed to companies operating in China, where unfavourable government intervention could adversely affect the realisable
value by amounts greater than those reflected in the sensitivity analysis shown below.
As at
30 April 2026 Significant unobservable inputs*
Valuation
Technique
Fair value of
investments
£’000
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Weighted
average
range
Sensitivity
%
Sensitivity to changes in
significant unobservable
inputs
Market
approach using
comparable
traded multiples
12,978 EV / LTM revenue
multiple
a,b,c,d 2.45 –
3.47x
3.34x 10% If EV/LTM multiples
changed by +/- 10%, the
fair value would change by
+/- £712,408
EV / NTM
revenue multiple
a,b,c,d 0.14 –
5.99x
2.36x 10% If EV/NTM multiples
changed by +/- 10%, the
fair value would change by
+/- £73,124
EV / LTM
Earnings multiple
a,b,c,d 7.10 –
21.56x
12.59x 10% If EV/ LTM Earnings
multiples changed by
+/-10%, the fair value
would change by +/-
£53,657
EV / NTM
Earnings multiple
a,b,c,d 4.38 –
24.08x
12.42x 10% If EV/NTM Earnings
multiples changed by
+/-10%, the fair value
would change by +/-
£66,275
Illiquidity discount e (10%) (10%) 10% If the illiquidity discount is
changed by +/- 10%, the
fair value would change by
£277,565 and – £277,581
Sum of the
parts
^
2,551 Selection of
comparable
companies and
relevant indices
a,b,c,d n/a n/a 10% If the performance of the
underlying investment
and selected benchmark
performance changed by
+/- 10%, the fair value
would change by +/-
£255,113
Recent
transaction
price
^^
110,366 n/a a,b n/a n/a 10% If the recent transaction
price changed by +/-
10%, the fair value would
change by £11,098,073
and –£10,986,241
* Significant unobservable inputs are described on pages 104 and 105.
†
See explanation for other unobservable inputs on pages 104 and 105 (sections ‘a’ to ‘g’ as relevant).
#
Enterprise value (EV) divided by the last twelve months revenue (LTM).
¶
See explanation for the selection of comparable companies on page 105 section ‘c’.
^
A ‘sum of the parts’ valuation approach is used for holding company investments with several underlying businesses. Each individual business
is valued using the most appropriate basis depending on the specific circumstances and the overall valuation is the summation of these
separatevaluations.
^^ Whilst a recent transaction price may be the most appropriate basis for a valuation, it will be corroborated by other techniques which factor in the
unobservable inputs in the above table. However, the transaction price itself is observable.
Financial report
Annual Report and Financial Statements 2026
104
19 Financial instruments (continued)
Other price risk sensitivity (continued)
As at
30 April 2025 Significant unobservable inputs*
Valuation
Technique
Fair value of
investments
£’000
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Weighted
average
range
Sensitivity
%
Sensitivity to changes in
significant unobservable
inputs
Market
approach using
comparable
traded multiples
47,501 EV / LTM revenue
multiple
a,b,c,d 1.97 –
6.32x
3.5x 10% If EV/LTM multiples
changed by +/- 10%, the
fair value would change
by £3,042,913 and
-£3,064,019
EV / NTM
revenue multiple
a,b,c,d 5.07x n/a 10% If EV/NTM multiples
changed by +/- 10%, the
fair value would change by
+/- £617,330
EV / Earnings
multiple
a,b,c,d 12.33x n/a 10% If EV/Earnings multiples
changed by +/- 10%, the
fair value would change by
£192,541 and -£213,649
Transaction
implied premium
and discounts
g (8.72%) n/a 10% If a +/- 10% adjustment is
applied to the calculated
premiums and discounts,
the fair value would
change by +/- £143,655
Illiquidity discount e (10%) (10%) 10% If the illiquidity discount is
changed by +/- 10%, the
fair value would change by
£344,407 and -£376,620
Sum of the
parts
^
2,438 Selection of
comparable
companies and
relevant indices
a,b,c,d 7.2 –
19.3x
12.6x 10% If the performance of the
underlying investment
and selected benchmark
performance changed by
+/- 10%, the fair value
would change by +/-
£243,758
Recent
transaction
price
^^
30,491 n/a a,b n/a n/a 10% If the recent transaction
price changed by +/-
10%, the fair value would
change by £2,992,920
and -£2,992,452
* Significant unobservable inputs are described on pages 104 and 105.
†
See explanation for other unobservable inputs on pages 104 and 105 (sections ‘a’ to ‘g’ as relevant).
#
Enterprise value (EV) divided by the last twelve months revenue (LTM).
¶
See explanation for the selection of comparable companies on page 105 section ‘c’.
^
A ‘sum of the parts’ valuation approach is used for holding company investments with several underlying businesses. Each individual business
isvalued using the most appropriate basis depending on the specific circumstances and the overall valuation is the summation of these
separatevaluations.
** The table above provides the range of values for the key unobservable inputs. A blend of valuation techniques is used for some holdings (Ant
International). As a blend is used in the valuation reflected in the annual financial statements, the asset is presented in the sensitivity analysis for
multiple approaches.
* Significant unobservable inputs
The variable inputs applicable to each broad category of valuation basis will vary dependent on the particular circumstances of
each private company valuation. An explanation of each of the key variable inputs is provided below. The assumptions made in
theproduction of the inputs are described in note 1(c) on page 89.
The Monks Investment Trust PLC
105
19 Financial instruments (continued)
Significant unobservable inputs (continued)
a. Application of valuation basis
Each investment is assessed independently, and the valuation basis applied will vary depending on the circumstances of each
investment. When an investment is pre-revenue, the focus of the valuation will be on assessing the recent transaction and the
achievement of key milestones since investment. Adjustments may also be made depending on the performance of comparable
benchmarks and companies. For those investments where a trading multiples approach can be taken, the methodology will factor
in revenue, earnings or net assets as appropriate for the investment, and where a suitable correlation can be identified with
the comparable companies then a regression analysis will be performed. Discounted cash flows will also be considered where
appropriate forecasts are available.
b. Probability estimation of liquidation events
The probability of a liquidation event such as a company sale, or alternatively an initial public offering (‘IPO’), is a key variable input
in the transaction-based and multiples-based valuation techniques. The probability of an IPO versus a company sale is typically
estimated from the outset to be 50:50 if there has been no indication by the company of pursuing either of these routes. If the
company has indicated an intention to IPO, the probability is increased accordingly to 75% and if an IPO has become a certainty
the probability is increased to 100%. Likewise, in a scenario where a company is pursuing a trade sale the weightings will be
adjusted accordingly in favour of a sale scenario, or in a situation where a company is underperforming expectations significantly
and therefore deemed very unlikely to pursue an IPO.
c. Selection of comparable companies
The selection of comparable companies is assessed individually for each investment at the point of investment, and the relevance
of the comparable companies is continually evaluated at each valuation. The key criteria used in selecting appropriate comparable
companies are the industry sector in which they operate, the geography of the company’s operations, the respective revenue and
earnings growth rates and the operating margins. Typically, between 4 and 10 comparable companies will be selected for each
investment, depending on how many relevant comparable companies are identified. The resultant revenue or earnings multiples
orshare price movements derived will vary depending on the companies selected and the industries they operate in.
d. Estimated sustainable earnings
The selection of sustainable revenue or earnings will depend on whether the company is sustainably profitable or not, and where it
is not then revenues will be used in the valuation. The valuation approach will typically assess companies based on the last twelve
months of revenue or earnings, as they are the most recent available and therefore viewed as the most reliable. Where a company
has reliably forecasted earnings previously or there is a change in circumstance at the business which will impact earnings going
forward, then forward estimated revenue or earnings may be used instead.
e. Application of illiquidity discount
The application of an illiquidity discount will be applied either through the calibration of a valuation against the most recent
transaction, or by application of a specific discount. The discount applied where a calibration is not appropriate is typically 10%,
reflecting that the majority of the investments held are substantial companies with some secondary market activity.
f. Selection of appropriate benchmarks
The selection of appropriate benchmarks is assessed individually for each investment. The industry and geography of each
company are key inputs to the benchmark selection, with either one or two key indices or benchmarks being used for comparison.
g. Valuation premium and discount
The application of valuation premiums and discounts are applied through the calibration of a valuation to the most recent
transaction, determining how each investment is pricing against its selection of comparable companies. Where a calibrated
approach is not appropriate a liquidity discount is applied, typically at 10%, reflecting that most of the investments held are
substantial companies with some secondary market activity.
h. Execution risk
An execution risk discount is applied to all investments where an arm’s-length transaction is due to take place, however, hasn’t
closed prior to the reporting period end. The discount typically applied is 10%, acknowledging that the finer details of the round
may well still be negotiated which could impact the expected issue price. In valuing in line with an expected transaction the
arm’s-length nature of the deal has been assessed and legal documentation received.
Liquidity risk
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk is
significantly mitigated as the majority of the Company’s assets are investments in listed securities that are readily realisable. The
Board also sets parameters for the degree to which the Company’s net assets are invested in listed equities. The Company has
the power to take out borrowings, which give it access to additional funding when required. The Company’s current liabilities and
borrowing facilities are detailed in notes 11 and 12 and the maturity profile of its borrowings is set out on pages 96 and 97.
Credit risk
This is the risk that a failure of a counterparty to a transaction to discharge its obligations under that transaction could result in
the Company suffering a loss. This risk is managed as follows:
• where the investment managers make an investment in a bond or other security with credit risk, that credit risk is assessed
andthen compared to the prospective investment return of the security in question;
Financial report
Annual Report and Financial Statements 2026
106
19 Financial instruments (continued)
Credit risk (continued)
• the depositary is liable for the loss of financial instruments held in custody. The depositary will ensure that any delegate
segregates the assets of the Company. The depositary has delegated the custody function to The Bank of New York Mellon
(International) Limited. Bankruptcy or insolvency of the custodian may cause the Company’s rights with respect to securities
held by the custodian to be delayed. The Managers monitor the Company’s risk by reviewing the depositary’s internal control
reports and reporting their findings to the Board;
• investment transactions are carried out with a large number of brokers whose creditworthiness is reviewed by the Managers.
Transactions are ordinarily done on a delivery versus payment basis whereby the Company’s custodian bank ensures that the
counterparty to any transaction entered into by the Company has delivered on its obligations before any transfer of cash or
securities away from the Company is completed; and
• cash is only held at banks that have been identified by the Managers as reputable and of high credit quality. Credit quality
ofour banking provider is publicly available.
Credit risk exposure
The amount that best represents the Company’s maximum exposure to direct credit risk at 30 April was:
2026
£’000
2025
£’000
Cash and cash equivalents 18,421 21,606
Debtors 2,538 3,917
20,959 25,523
None of the Company’s financial assets are past due or impaired.
Fair value of financial assets and financial liabilities
The Directors are of the opinion that there is no difference between the amounts at which the financial assets and liabilities of the
Company are carried in the Balance Sheet and their fair values, with the exception of long term borrowings. The fair values of the
Company’s borrowings are shown below. The fair values of the loan notes are calculated using a comparable debt approach, by
reference to a basket of corporate debt with similar rates and maturities.
2026
Par
value
£’000
2026
Book
value
£’000
2026
Fair
value
£’000
2025
Par
value
£’000
2025
Book
value
£’000
2025
Fair
value
£’000
Bank loans due within one year 50,000 50,000 50,000 50,000 50,000 50,000
Notes 1.86% 2054 60,000 59,911 25,032 60,000 59,910 25,539
Notes 1.77% 2045 40,000 39,962 19,840 40,000 39,958 19,658
Notes 2.17% 2037 11,740 11,740 10,298 13,122 13,122 12,353
Notes 4.55% 2035 15,539 15,539 15,215 15,319 15,319 15,356
Notes 4.29% 2033 30,214 30,214 29,704 29,787 29,787 29,975
Notes 4.30% 2030 15,539 15,539 15,487 15,319 15,319 15,563
223,032 222,905 165,576 223,547 223,415 168,444
20 Capital management
The capital of the Company is its share capital and reserves as set out in note 14 together with its borrowings (see notes 11 and 12).
The objective of the Company is to invest globally to achieve capital growth, which takes priority over income and dividends. The
Company’s investment policy is set out on pages 37 and 38. In pursuit of the Company’s objective, the Board has a responsibility
for ensuring the Company’s ability to continue as a going concern and details of the related risks and how they are managed are
set out on pages 39 to 43.
The Company has the ability to issue and buy back its shares, and sell shares from treasury (see pages 56 and 57) and any
changes to the share capital during the year are set out in note 13.
The Company does not have any externally imposed capital requirements other than the covenants on its loans and loan notes
which are detailed in notes 11 and 12.
Shareholder
information
Shareholder information
Annual Report and Financial Statements 2026
108
Notice of Annual
General Meeting
The Annual General Meeting of the Company will
be held at One Moorgate Place, City of London
EC2R6EA on Friday 4 September 2026, at 11.30am.
You will find directions to the venue by scanning the
QR code above.
To accurately reflect the views of shareholders of the
Company, the Board intends to hold the AGM voting
on a poll.
The Board encourages all shareholders to
complete and return the form of proxy enclosed
with the Annual Report to ensure that your votes
are represented at the meeting (whether or not
you intend to attend in person). Shareholders are
recommended to monitor the Company’s website
where any updates will be posted, in the event of
any change to the scheduled arrangements.
If you have any queries as to how to vote or
howtoattend the meeting, please call us on
0800917 2113.
Baillie Gifford may record your call.
Moorgate
Moorgate
Copthall Ave
Throgmorton Ave
Finsbury
Moorgate
Circus
London Wall
London Wall
Basinghall Ave
One Moorgate Place
City of London
London
EC2R 6EA
The Monks Investment Trust PLC
109
Notice is hereby given that the ninety-seventh Annual
General Meeting of The Monks Investment Trust PLC
will be held at One Moorgate Place, City of London
EC2R 6EA on Friday 4 September 2026, at 11.30am
for the following purposes:
To consider and, if thought fit, pass the following
resolutions as ordinary resolutions:
01. To receive and adopt the Financial Statements
of the Company for the year ended 30 April
2026 with the Reports of the Directors and of
the Independent Auditor thereon.
02. To approve the Directors’ Remuneration Policy.
03. To approve the Directors’ Annual Report on
Remuneration for the year ended 30 April 2026.
04
. To declare a final dividend of 0.90p per ordinary
share.
05
. To re-elect Mr RS Grewal as a Director.
06
. To re-elect Ms CM Boyle as a Director.
07
. To re-elect Ms SL Parrinder-Johnson as a
Director.
08
. To re-elect Mr DC Ballance as a Director.
09. To elect Mr R Curling as a Director.
10. To reappoint Ernst & Young LLP as Independent
Auditor of the Company to hold office until the
conclusion of the next Annual General Meeting
at which the Financial Statements are laid
before the Company.
11. To authorise the Directors to determine the
remuneration of the Independent Auditor.
12. That, in substitution for any existing authority
but without prejudice to the exercise of any such
authority prior to the date hereof, the Directors
of the Company be and they are hereby
generally and unconditionally authorised in
accordance with section 551 of the Companies
Act 2006 (the ‘Act’) to exercise all the powers of
the Company to allot shares in the Company and
to grant rights to subscribe for or to convert any
security into shares in the Company (‘Securities’)
provided that such authority shall be limited to
the allotment of shares and the grant of rights
in respect of shares with an aggregate nominal
value of up to £771,277.60 (representing 10%
of the Company’s total issued share capital
as at 26 June 2026), such authority to expire
at the conclusion of the next Annual General
Meeting of the Company after the passing of
this resolution or on the expiry of 15 months
from the passing of this resolution, whichever is
the earlier, unless previously revoked, varied or
extended by the Company in a general meeting,
save that the Company may at any time priorto
the expiry of this authority make an offer or
enter into an agreement which would or might
require Securities to be allotted or granted after
the expiry of such authority and the Directors
shall be entitled to allot or grant Securities in
pursuance of such an offer or agreement as if
such authority had not expired.
To consider and, if thought fit, to pass resolutions 13
and 14 as special resolutions:
13. That, subject to the passing of resolution 12
above, and in substitution for any existing power
but without prejudice to the exercise of any such
power prior to the date hereof, the Directors of
the Company be and they are hereby generally
empowered, pursuant to sections 570 and 573
of the Companies Act 2006 (the ‘Act’) to allot
equity securities (within the meaning of section
560(1) of the Act) for cash either pursuant to the
authority given by resolution 12 above or by way
of the sale of treasury shares wholly for cash as
if section 561(1) of the Act did not apply to any
such allotment or sale, provided that this power:
a. expires at the conclusion of the next Annual
General Meeting of the Company after the
passing of this resolution or on the expiry
of 15 months from the passing of this
resolution, whichever is the earlier, save that
the Company may, before such expiry, make
an offer or agreement which would or might
require equity securities to be allotted after
such expiry and the Directors may allot equity
securities in pursuance of any such offer or
agreement as if the power conferred hereby
had not expired; and
b. shall be limited to the allotment of equity
securities or the sale of treasury shares up to
an aggregate nominal value of £771,277.60,
being approximately 10% of the nominal value
of the issued share capital of the Company as
at 26 June 2026.
Shareholder information
Annual Report and Financial Statements 2026
110
14. That, in substitution for any existing authority,
but without prejudice to the exercise of any such
authority prior to the date hereof, the Company
be and is hereby generally and unconditionally
authorised, pursuant to and in accordance with
section 701 of the Companies Act 2006 (the
‘Act’), to make market purchases (within the
meaning of section 693(4) of the Act) of fully
paid ordinary shares of 5p each in the capital
of the Company (‘Shares’), (either for retention
as treasury shares for future reissue, resale,
transfer or for cancellation) provided that:
a. the maximum aggregate number of
Shares hereby authorised to be purchased
is 23,122,902, or, if less, the number
representing approximately 14.99% of the
issued ordinary share capital of the Company
as at the date of the passing of this resolution;
b. the minimum price (exclusive of expenses)
which may be paid for each Share is 5p;
c. the maximum price (exclusive of expenses)
which may be paid for a Share shall be not
more than the higher of: (i) 5 per cent above
the average closing price on the London Stock
Exchange of a Share over the five business
days immediately preceding the date of
purchase; and (ii) the higher of the price of
the last independent trade of, and the highest
current independent bid for, a Share on the
London Stock Exchange; and
d. unless previously varied, revoked or renewed
by the Company in a general meeting, the
authority hereby conferred shall expire at the
conclusion of the Annual General Meeting of
the Company to be held in respect of the year
ending 30 April 2027, save that the Company
may, prior to such expiry, enter into a contract
to purchase Shares under such authority
which will or may be executed wholly or partly
after the expiration of such authority and may
make a purchase of Shares pursuant to any
such contract.
By order of the Board
Baillie Gifford & Co Limited
Company Secretary
30 June 2026
The Monks Investment Trust PLC
111
Notes
01. As a member you are entitled to appoint a proxy
or proxies to exercise all or any of your rights
to attend, speak and vote at the AGM. A proxy
need not be a member of the Company but
must attend the AGM to represent you. You may
appoint more than one proxy provided each
proxy is appointed to exercise rights attached to
different shares. You can only appoint a proxy
using the procedure set out in these notes and
the notes to the proxy form. You may not use
any electronic address provided either in this
notice or any related documents (including
the Financial Statements and proxy form) to
communicate with the Company for any purpose
other than those expressly stated.
02. To be valid any proxy form or other instrument
appointing a proxy, together with any power
of attorney or other authority under which it
is signed or a certified copy thereof, must be
received by post or (during normal business
hours only) by hand at the Registrars of the
Company at Computershare Investor Services
PLC, The Pavilions, Bridgwater Road, Bristol,
BS99 6ZY or eproxyappointment.com no later
than two days (excluding non-working days)
before the time of the meeting or any adjourned
meeting.
03. CREST members who wish to appoint a proxy
or proxies through the CREST electronic proxy
appointment service may do so by using the
procedures described in the CREST Manual
and/or by logging on to the website euroclear.
com/CREST. CREST personal members or other
CREST sponsored members, and those CREST
members who have appointed a voting service
provider(s), should refer to their CREST sponsor
or voting service provider(s), who will be able to
take the appropriate action on their behalf.
04. In order for a proxy appointment or instruction
made using the CREST service to be valid, the
appropriate CREST message (a ‘CREST Proxy
Instruction’) must be properly authenticated in
accordance with Euroclear UK & International
Limited’s specifications, and must contain the
information required for such instruction, as
described in the CREST Manual. The message,
regardless of whether it constitutes the
appointment of a proxy or is an amendment to
the instruction given to a previously appointed
proxy must, in order to be valid, be transmitted
so as to be received by the Company’s registrar
(ID 3RA50) no later than two days (excluding
non-working days) before the time of the
meeting or any adjournment. For this purpose,
the time of receipt will be taken to be the time
(as determined by the timestamp applied to
the message by the CREST Application Host)
from which the Company’s registrar is able to
retrieve the message by enquiry to CREST in
the manner prescribed by CREST. After this time
any change of instructions to proxies appointed
through CREST should be communicated to the
appointee through other means.
05. CREST members and, where applicable,
their CREST sponsors, or voting service
providers should note that Euroclear UK &
International Limited does not make available
special procedures in CREST for any particular
message. Normal system timings and
limitations will, therefore, apply in relation to
the input of CREST Proxy Instructions. It is the
responsibility of the CREST member concerned
to take (or, if the CREST member is a CREST
personal member, or sponsored member, or
has appointed a voting service provider(s), to
procure that his/her CREST sponsor or voting
service provider(s) take(s) such action as shall
be necessary to ensure that a message is
transmitted by means of the CREST system
by any particular time. In this connection,
CREST members and, where applicable, their
CREST sponsors or voting service providers are
referred, in particular, to those sections of the
CREST Manual concerning practical limitations
of the CREST system and timings.
06. The Company may treat as invalid a CREST
Proxy Instruction in the circumstances set out
in Regulation 35(5)(a) of the Uncertificated
Securities Regulations 2001.
07. The return of a completed proxy form or
otherinstrument of proxy will not prevent
youattending the AGM and voting in person
ifyou wish.
08. Pursuant to Regulation 41 of the Uncertificated
Securities Regulations 2001 and section 311 of
the Companies Act 2006 the Company specifies
that to be entitled to attend and vote at the
Annual General Meeting (and for the purpose
of the determination by the Company of the
votes they may cast), shareholders must be
registered in the Register of Members of the
Company no later than the close of business two
days (excluding non-working days) prior to the
commencement of the AGM or any adjourned
meeting. Changes to the Register of Members
after the relevant deadline shall be disregarded
in determining the rights of any person to attend
and vote at the meeting.
Shareholder information
Annual Report and Financial Statements 2026
112
09. Any person to whom this notice is sent who is
a person nominated under section 146 of the
Companies Act 2006 to enjoy information rights
(a ‘Nominated Person’) may, under an agreement
between him/her and the shareholder by whom
he/she was nominated, have a right to be
appointed (or to have someone else appointed)
as a proxy for the Annual General Meeting.
If a Nominated Person has no such proxy
appointment right or does not wish to exercise it,
he/she may, under any such agreement, have a
right to give instructions to the shareholder as to
the exercise of voting rights.
10. The statement of the rights of shareholders in
relation to the appointment of proxies in notes
1 and 2 above does not apply to Nominated
Persons. The rights described in those notes
can only be exercised by shareholders of the
Company.
11. Under section 338 of the Companies Act 2006,
members meeting the qualification criteria set
out in note 14 below may, subject to certain
conditions, require the Company to circulate
to members notice of a resolution which may
properly be moved and is intended to be moved
at that meeting. The conditions are that: (a) the
resolution must not, if passed, be ineffective
(whether by reason of inconsistency with any
enactment or the Company’s constitution
or otherwise); (b) the resolution must not
be defamatory of any person, frivolous or
vexatious; and (c) the request: (i) may be in
hard copy form or in electronic form; (ii) must
identify the resolution of which notice is to be
given by either setting out the resolution in full
or, ifsupporting a resolution sent by another
member, clearly identifying the resolution which
is being supported; (iii) must be authenticated
by the person or persons making it; and (iv)
mustbe received by the Company not later than
23 July 2026.
12. Under section 338A of the Companies Act
2006, members meeting the qualification
criteria set out at note 14 below may require the
Company to include in the business to be dealt
with at the Annual General Meeting a matter
(other than a proposed resolution) which may
properly be included in the business (a matter of
business). The request must have been received
by the Company not later than 23 July 2026.
The conditions are that the matter of business
must not be defamatory of any person, frivolous
or vexatious. The request must identify the
matter of business by either setting it out in full
or, if supporting a statement sent by another
member, clearly identify the matter of business
which is being supported. The request must be
accompanied by a statement setting out the
grounds for the request. Members seeking to do
this should write to the Company providing their
full name and address.
13. Under section 527 of the Companies Act 2006,
members meeting the qualification criteria set
out at note 14 below may require the Company
to publish, on its website, (without payment) a
statement (which is also passed to the auditor)
setting out any matter relating to the audit of the
Company’s Financial Statements, including the
Auditor’s Report and the conduct of the audit.
Such requests must be made in writing and must
state your full name and address.
14. In order to be able to exercise the members’
rights in notes 11 to 13, the relevant request
mustbe made by: (a) members representing
at least 5% of the total voting rights of all
the members who have a right to vote on the
resolution to which the requests relate; or (b)at
least 100 members who have a right to vote on
the resolution to which the requests relate and
hold shares in the Company on which there has
been paid up an average sum, per member, of at
least £100. Such requests should be sent to the
Company at 3 Haymarket Square, Edinburgh,
EH3 8RY. Electronic requests permitted under
section 338 (see note 11) should be sent to
enquiries@bailliegifford.com.
The Monks Investment Trust PLC
113
15. Information regarding the Annual General
Meeting, including information required
by section 311A of the Companies Act
2006, isavailable from the Company’s
page of theManagers’ website at
monksinvestmenttrust.co.uk.
16. Members have the right to ask questions at the
meeting in accordance with section 319A of the
Companies Act 2006.
17. Any corporation which is a member can appoint
one or more corporate representatives who
may exercise on its behalf all of its powers as
a member provided that they do not do so in
relation to the same shares.
18. As at 26 June 2026 (being the last practicable
date prior to the publication of this notice) the
Company’s issued share capital consisted of
154,255,520 ordinary shares, carrying one
voteeach. Therefore, the total voting rights
inthe Company as at 26 June 2026 were
154,255,520 votes. Voting on the resolutions
willbe conducted by way of poll. This will
ensurean exact and definitive result.
19. Any person holding 3% or more of the total
voting rights of the Company who appoints
a person other than the Chair of the meeting
as his/her proxy will need to ensure that both
he/she and his/her proxy complies with their
respective disclosure obligations under the
UKDisclosure and Transparency Rules.
20. No Director has a contract of service with
theCompany.
Shareholder information
Annual Report and Financial Statements 2026
114
Company history
Monks was incorporated in 1929 and was one of
three trusts founded in the late 1920s by a group
of investors headed by Sir Auckland (later Lord)
Geddes. The other two trusts were The Friars
Investment Trust and The Abbots Investment Trust.
The company secretary’s office was at 13/14 Austin
Friars in the City of London, hence the names.
In 1931, Baillie Gifford & Co took over the
management of all three trusts and Monks became
a founder member of the Association of Investment
Trusts in 1932.
In 1968, under a Scheme of Arrangement, the
threetrusts were merged with Monks acquiring
theordinary share capital of Friars and Abbots.
Monks is an investment trust. Investment
trusts offer investors the following:
• participation in a diversified portfolio of shares;
• constant supervision by experienced professional
managers; and
• the Company is free from capital gains tax on
capital profits realised within its portfolio although
investors are still liable for capital gains tax on
profits when selling their investment.
How to invest
The Company’s shares are traded on the London
Stock Exchange. They can be bought by placing an
order with a stockbroker or by asking a professional
adviser to do so. If you are interested in investing
directly in Monks, you can do so online. Thereare
a number of companies offering real time online
dealing services – find out more by visiting
monksinvestmenttrust.co.uk.
Further shareholder
information
Sources of further information on
theCompany
The share price is quoted daily in the Financial
Times and can also be found on other financial
websites. Company factsheets are also available on
the Company’s website and are updated monthly.
Theseare available from Baillie Gifford on request.
Monks share identifiers
ISIN GB0030517261
Sedol 3051726
Ticker MNKS
Legal Entity Identifier 213800MRI1JTUKG5AF64
The ordinary shares of the Company are listed on
the London Stock Exchange and their price is shown
in the Financial Times under ‘Investment Companies’.
Key dates
The Interim Report is issued in December and the
Annual Report is normally issued in July. The 2026
AGM is being held in early September. Dividends will
be paid by way of a single final payment shortly after
the Company’s AGM.
Capital Gains Tax
For Capital Gains Tax indexation purposes, the
market value of an ordinary share in the Company
as at 31 March 1982 (as adjusted for the five for one
share split in July 2001) was 14.1p.
The Monks Investment Trust PLC
115
Share register enquiries
Computershare Investor Services PLC maintains
the share register on behalf of the Company. In the
event of queries regarding shares registered in your
own name, please contact the registrars on 0370
707 1170. This helpline also offers an automated
self-service functionality (available 24 hours a day, 7
days a week) which allows you to:
• hear the latest share price;
• confirm your current share holding balance;
• confirm your payment history; and
• order Change of Address, Dividend Bank Mandate
and Stock Transfer forms.
You can also check your holding on the registrar’s
website at investorcentre.co.uk. They also offer a
free, secure share management website service
which allows you to:
• view your share portfolio and see the latest market
price of your shares;
• calculate the total market price of each
shareholding;
• view price histories and trading graphs;
• register to receive communications from the
Company, including the Annual Report, in
electronic format;
• update bank mandates and change address
details; and
• use online dealing services.
To take advantage of this service, please log in at
investorcentre.co.uk and enter your Shareholder
Reference Number and Company Code (this
information can be found on the last dividend
voucher or your share certificate).
Dividend reinvestment plan
Computershare operate a Dividend reinvestment
plan which can be used to buy additional shares
instead of receiving your dividend via cheque or into
your bank account. For further information log on to
investorcentre.co.uk and follow the instructions or
telephone 0370 707 1694.
Electronic proxy voting
If you hold stock in your own name you can choose
to vote by returning proxies electronically at
eproxyappointment.com.
If you have any questions about this service please
contact Computershare on 0370 707 1170.
CREST proxy voting
If you are a user of the CREST system (including
a CREST Personal Member), you may appoint one
or more proxies or give an instruction to a proxy by
having an appropriate CREST message transmitted.
For further information please refer to the CREST
Manual.
Analysis of shareholders at 30 April
2026
Number of
shares held
2026
%
2025
Number of
shares held
2025
%
Institutions 14,515,353 9.2 24,592,182 13.1
Intermediaries 135,167,269 85.9 153,010,658 81.6
Individuals 6,604,809 4.2 8,797,473 4.7
Marketmakers 1,166,099 0.7 1,222,353 0.6
157,453,530 100.0 187,622,666 100.0
Shareholder information
Annual Report and Financial Statements 2026
116
Automatic exchange of information
In order to fulfil its obligations under UK tax
legislation relating to the automatic exchange of
information, the Company is required to collect
and report certain information about certain
shareholders.
The legislation requires investment trust companies
to provide personal information to HMRC on certain
investors who purchase shares in investment trusts.
Accordingly, the Company will have to provide
information annually to the local tax authority on
the tax residencies of a number of non-UK based
certificated shareholders and corporate entities.
Shareholders, excluding those whose shares are
held in CREST, who come on to the share register
will be sent a certification form for the purposes of
collecting this information.
For further information, please see HMRC’s
QuickGuide: Automatic Exchange of Information –
information for account holders gov.uk/government/
publications/exchange-of-information-account-holders.
Alternative Investment Fund Managers
(‘AIFM’) Regulations
In accordance with the AIFM Regulations, information
in relation to the Company’s leverage and the
remuneration of the Company’s AIFM, Baillie Gifford
& Co Limited, is required to be made available to
investors. In accordance with the Regulations, the
AIFM remuneration policy is available at bailliegifford.
com or on request (see contact details on page 125).
The numerical remuneration disclosures in respect
of the AIFM’s reporting period are also available at
bailliegifford.com.
The Company’s maximum and actual leverage levels
(see Glossary of terms and Alternative Performance
Measures on pages 120 to 124) at 30 April 2026 are
as follows:
Leverage
Gross method
Commitment
method
Maximum limit 2.50:1 2.00:1
Actual 1.09:1 1.10:1
Third party data provider disclaimer
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completeness or timeliness of the data contained
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recipients of the data.
No Provider shall in any way be liable to any
recipient of the data for any inaccuracies, errors
or omissions in the index data included in this
document, regardless of cause, or for any damages
(whether direct or indirect) resulting therefrom.
No Provider has any obligation to update, modify
or amend the data or to otherwise notify a recipient
thereof in the event that any matter stated herein
changes or subsequently becomes inaccurate.
Without limiting the foregoing, no Provider shall have
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(including under an indemnity), in tort (including
negligence), under a warranty, under statute or
otherwise, in respect of any loss or damage suffered
by you as a result of or in connection with any
opinions, recommendations, forecasts, judgements,
or any other conclusions, or any course of action
determined, by you or any third party, whether or
not based on the content, information or materials
contained herein.
FTSE Index Data
London Stock Exchange Group plc and its group
undertakings (collectively, the ‘LSE Group’).
©LSEGroup 2025. FTSE Russell is a trading name
of certain of the LSE Group companies. ‘FTSE®’
‘Russell®’, ‘FTSE Russell®’, is/are a trade mark(s) of
the relevant LSE Group companies and is/are used
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No further distribution of data from the LSE Group
ispermitted without the relevant LSE Group
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does not promote, sponsor or endorse the content
ofthis communication.
The Monks Investment Trust PLC
117
Sustainable Finance Disclosure
Regulation (‘SFDR’)
The EU Sustainable Finance Disclosure Regulation
(‘SFDR’) applies to third-country products marketed
in the EU. As The Monks Investment Trust PLC is
marketed in the EU by the AIFM, Baillie Gifford & Co
Limited, via the National Private Placement Regime
(‘NPPR’), the following disclosures have been
provided to comply with the high-level requirements
of SFDR.
The AIFM has adopted Baillie Gifford & Co’s
stewardship principles and guidelines as its
policy on integration of sustainability risks in
investment decisions. More detail on the Managers’
approach to sustainability can be found in the
stewardship principles and guidelines document,
available publicly on the Baillie Gifford website
bailliegifford.com and by scanning the QR code
below. The underlying investments do not take
into account the EU criteria for environmentally
sustainable economic activities established under
the EU Taxonomy Regulation.
Shareholder information
Annual Report and Financial Statements 2026
118
Communicating
with shareholders
Trust magazine Monks Investment Trust web page at
monksinvestmenttrust.co.uk
Trust magazine
Trust is the Baillie Gifford investment trust magazine
which is published twice a year. It provides an insight
into our investment approach by including interviews
with our fund managers, as well as containing
investment trust news, investment features and
articles about the trusts managed by Baillie Gifford,
including Monks. Trust plays an important role in
helping to explain our products so that readers can
really understand them.
You can subscribe to Trust magazine or view a digital
copy at bailliegifford.com/trust.
Suggestions and questions
Any suggestions on how communications with
shareholders can be improved are welcome. Please
contact the Baillie Gifford Client Relations Team
(see contact details opposite) and give them your
suggestions. They will also be very happy to answer
questions that you may have about Monks.
Monks on the web
Up-to-date information about Monks can be found
on the Company’s page of the Managers’ website
at monksinvestmenttrust.co.uk You will find more
information on Monks, including recent portfolio
information and performance figures.
Client relations team contact details
You can contact the Baillie Gifford Client Relations
Team by telephone, email or post:
Telephone: 0800 917 2113
Your call may be recorded for training or monitoring
purposes.
Email: enquiries@bailliegifford.com
Website: bailliegifford.com
Address:
Baillie Gifford Client Relations Team
3 Haymarket Square
Edinburgh, EH3 8RY
Please note that Baillie Gifford is not permitted
to give financial advice. If you would like advice,
please ask an authorised intermediary.
The Monks Investment Trust PLC
119
Valuing Scarcity in the
age of AI
AI is creating new abundance and
shifting bottlenecks. We explore
which businesses can win in the
long term.
Monks’ musings:
bottlenecks and abundance
Returns are being driven by real
profit growth, not rising valuations
or market mood.
The big squeeze:
bottlenecks as advantage
When demand outstrips supply,
companies that sit astride the
pinch point can gain an enduring
edge.
Insights
Shareholder information
Annual Report and Financial Statements 2026
120
An Alternative Performance Measure is a financial measure of historical or future financial performance,
financial position, or cash flows, other than a financial measure defined or specified in the applicable
financial reporting framework.
Total assets
This is the Company’s definition of adjusted total assets, being the total value of all assets held less all
liabilities (other than liabilities in the form of borrowings).
Shareholders’ funds
Shareholders’ funds is the value of all assets held less all liabilities, with borrowings deducted at book cost.
Net liquid assets
This is the Company’s definition of net liquid assets, comprising current assets less current liabilities
(excluding borrowings) and provisions.
Active share (APM)
Active share, a measure of how actively a portfolio is managed, is the percentage of the portfolio that differs
from its comparative index. It is calculated by deducting from 100 the percentage of the portfolio that
overlaps with the comparative index. An active share of 100 indicates no overlap with the index and an
active share of zero indicates a portfolio that tracks the index.
Unlisted, unquoted and private company investments
‘Unlisted’, ‘unquoted’ and ‘private company’ investments are investments in securities not traded on a
recognised exchange.
Net Asset Value (APM)
Net Asset Value (NAV) is the value of all assets held less all liabilities, with borrowings deducted at either par
value or fair value as described below. Per share amounts are calculated by dividing the relevant figure by
the number of ordinary shares in issue.
Glossary of terms and Alternative
Performance Measures (‘APM’)
The Monks Investment Trust PLC
121
Net Asset Value (borrowings at par value) (APM)
Borrowings are valued at nominal par value. A reconciliation from shareholders’ funds (borrowings at book
value) to net asset value after deducting borrowings at par value is provided below.
2026
£’000
2026
per share
2025
£’000
2025
per share
Shareholders’ funds (borrowings at book value) 2,517,141 1,598.7p 2,318,906 1,235.9p
Add: book value of borrowings 222,905 141.6p 223,415 119.1p
Less: par value of borrowings (223,032) (141.7p) (223,547) (119.1p)
Net asset value (borrowings at par value) 2,517,014 1,598.6p 2,318,774 1,235.9p
The per share figures above are based on 157,453,530 (2025 – 187,622,666) ordinary shares of 5p, being the number of ordinary shares in issue at the
year end excluding treasury shares.
Net Asset Value (borrowings at fair value) (APM)
Borrowings are valued at an estimate of market worth. The fair values of the loan notes are calculated using
a comparable debt approach, by reference to a basket of corporate debt. The fair value of the Company’s
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.
2026
£’000
2026
per share
2025
£’000
2025
per share
Shareholders’ funds (borrowings at book value) 2,517,141 1,598.7p 2,318,906 1,235.9p
Add: book value of borrowings 222,905 141.6p 223,415 119.1p
Less: fair value of borrowings (165,576) (105.2p) (168,444) (89.8p)
Net asset value (borrowings at fair value) 2,574,470 1,635.1p 2,373,877 1,265.2p
The per share figures above are based on 157,453,530 (2025 – 187,622,666) ordinary shares of 5p, being the number of ordinary shares in issue at the
period end excluding treasury shares.
Discount/premium (APM)
As stock markets and share prices vary, an investment trust’s share price is rarely the same as its NAV. When
the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount
is calculated by subtracting the NAV per share from the share price and is usually expressed as a percentage
of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium.
2026 2025
Closing NAV per share (borrowings at par) a 1,598.6p 1,235.9p
Closing NAV per share (borrowings at fair value) b 1,635.1p 1,265.2p
Closing share price c 1,542.0p 1,138.0p
Discount to NAV with borrowings at par (c - a) ÷ a (3.5%) (7.9%)
Discount to NAV with borrowings at fair value (c - b) ÷ b (5.7%) (10.1%)
Shareholder information
Annual Report and Financial Statements 2026
122
Total return (APM)
The total return is the return to shareholders after reinvesting the dividend on the date that the share price
goes ex-dividend, as detailed below.
2026
NAV
(par)
2026
NAV
(fair)
2026
Share
price
2025
NAV
(par)
2025
NAV
(fair)
2025
Share
price
Closing NAV per share/share price a 1,598.6p 1,635.1p 1,542.0p 1,235.9p 1,265.2p 1,138.0p
Dividend adjustment factor* b 1.0003 1.0003 1.0004 1.0017 1.0017 1.0019
Adjusted closing NAV per share/share price c = a x b 1,599.1p 1,635.6p 1,542.6p 1,238.0p 1,267.3p 1,140.1p
Opening NAV per share/share price d 1,235.9p 1,265.2p 1,138.0p 1,242.7p 1,266.1p 1,158.0p
Total return (c ÷ d)-1 29.4% 29.3% 35.6% (0.4%) 0.1% (1.5%)
* The dividend adjustment factor is calculated on the assumption that the dividend of 0.50p (2025 – 2.10p) paid by the Company during the year was
reinvested into shares of the Company at the cum income NAV/share price, as appropriate, at the ex-dividend date.
Ongoing charges (APM)
The total expenses (excluding dealing and borrowing costs) incurred by the Company as a percentage of the
daily average net asset value (with borrowings at fair value), as detailed below.
2026 2025
Investment management fee £9,482,000 £9,707,000
Other administrative expenses £1,936,000 £1,965,000
Total expenses a £11,418,000 £11,672,000
Average net asset value (with borrowings deducted at fair value) b £2,608,078,000 £2,700,317,000
Ongoing charges a ÷ b 0.44% 0.43%
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other public company, an investment trust can borrow
money to invest in additional investments for its portfolio. The effect of the borrowing on the shareholders’
assets is called ‘gearing’. If the Company’s assets grow, the shareholders’ assets grow proportionately more
because the debt remains the same. But if the value of the Company’s assets falls, the situation is reversed.
Gearing can therefore enhance performance in rising markets but can adversely impact performance
in falling markets. The level of gearing can be adjusted through the use of derivatives which affect the
sensitivity of the value of the portfolio to changes in the level of markets. The gearing ratios described below
are included in the Ten year record on page 34.
Gross gearing, also referred to as potential gearing, is the Company’s borrowings expressed as a
percentage of shareholders’ funds (a ÷ c in the table below).
Net gearing, also referred to as invested or equity gearing, is borrowings at book value less cash and cash
equivalents (any certificates of deposit are not deducted) and brokers’ balances expressed as a percentage
of shareholders’ funds (b ÷ c in the table below).
*
Effective gearing, as defined by the Board and Managers of Monks, is the Company’s borrowings at par less
cash, brokers’ balances and investment grade bonds maturing within one year, expressed as a percentage of
shareholders’ funds
*
.
* As adjusted to take into account the gearing impact of any derivative holdings.
The Monks Investment Trust PLC
123
2026 2025
Borrowings (at book cost) a £222,905,000 £223,415,000
Less: cash and cash equivalents (£18,421,000) (£21,606,000)
Less: sales for subsequent settlement – (£1,345,000)
Add: purchases for subsequent settlement £8,556,000 £4,704,000
Adjusted borrowings b £213,040,000 £205,168,000
Shareholders’ funds c £2,517,141,000 £2,318,906,000
Gross (potential) gearing (a ÷ c) 8.9% 9.6%
Net (equity) gearing (b ÷ c) 8.5% 8.9%
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers (AIFM) Regulations leverage is any method
which increases the Company’s exposure, including the borrowing of cash and the use of derivatives. It is
expressed as a ratio between the Company’s exposure and its net asset value and can be calculated on a
gross and a commitment method. Under the gross method, exposure represents the sum of the Company’s
positions after the deduction of sterling cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the deduction of sterling cash
balances and after certain hedging and netting positions are offset against each other. The leverage figures
at 30 April 2026 are detailed on page 116.
Compound annual return (APM)
The compound annual return converts the return over a period of longer than one year to a constant annual
rate of return applied to the compounded value at the start of each year.
Treasury shares
The Company has the authority to make market purchases of its ordinary shares for retention as treasury
shares for future reissue, resale, transfer, or for cancellation. Treasury shares do not receive distributions
and the Company is not entitled to exercise the voting rights attaching to them.
Turnover (APM)
Turnover is a measure of portfolio change or trading activity. Monthly turnover is calculated as the minimum
of purchases and sales in a month, divided by the average market value of the fund. Monthly numbers are
added together to get the rolling 12 month turnover data.
Contingent value rights
‘CVR’ after an instrument name indicates a security, usually arising from a corporate action such as a
takeover or merger, which represents a right to receive potential future value, should the continuing company
achieve certain milestones. The Illumina CVR was received on Illumina’s takeover of the Company’s private
company investment in GRAIL and the Abiomed CVR arose on Johnson & Johnson’s takeover of Abiomed.
In both cases the milestones relate to the performance of the technologies acquired through those takeovers.
Any values attributed to these holdings reflect both the amount of the future value potentially receivable and
the probability of the milestones being met within the time frames in the CVR agreement.
Attribution
Attribution is the analysis of the effect of investment management decisions on the performance of
portfolio. Attribution can be conducted at different levels depending on the product, these includes region,
country, sector and stock analysis. Attribution can be relative to an index or absolute.
Shareholder information
Annual Report and Financial Statements 2026
124
The Monks Investment Trust PLC
125
Company
information
Directors
Chairman: RS Grewal
DC Ballance
CM Boyle
R Curling
SL Parrinder-Johnson
BJ Richards
Professor Sir Nigel Shadbolt
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
T: +44 (0)370 707 1170
Alternative Investment Fund
Managers and Secretaries
Baillie Gifford & Co Limited
3 Haymarket Square
Edinburgh
EH3 8RY
T: +44 (0)131 275 2000
bailliegifford.com
Depositary
The Bank of New York Mellon
(International) Limited
160 Queen Victoria Street
London
EC4V 4LA
Company broker
Investec Bank plc
30 Gresham Street
London
EC2V 7QP
Registered office
Baillie Gifford & Co
3 St Helen’s Place
London
EC3A 6AB
Independent auditor
Ernst & Young LLP
Atria One
144 Morrison Street
Edinburgh
EH3 8EX
Company details
monksinvestmenttrust.co.uk
Company Registration No. 00236964
ISIN: GB0030517261
Sedol: 3051726
Ticker: MNKS
Legal Entity Identifier:
213800MRI1JTUKG5AF64
Further information
Baillie Gifford
Client Relations Team
3 Haymarket Square
Edinburgh
EH3 8RY
T: +44 (0)800 917 2113
enquiries@bailliegifford.com
Bold and balanced
growth investing
monksinvestmenttrust.co.uk
3 Haymarket Square, Edinburgh EH3 8RY
Telephone +44 (0)131 275 2000