Annual Report and Financial Statements 30 April 2020 # The Monks Investment Trust PLC Managed by **Baillie Gifford**$^{TM}$ ![img-0.jpeg](img-0.jpeg) --- ## Investor disclosure document The UK Alternative Investment Fund Managers Regulations require certain information to be made available to investors prior to their investment in the Company. The Company's Investor Disclosure Document is available for viewing at monksinvestmenttrust.co.uk. ## Notes None of the views expressed in this document should be construed as advice to buy or sell a particular investment. Investment trusts are UK public listed companies and as such comply with the requirements of the Financial Conduct Authority (FCA). They are not authorised or regulated by the FCA. The Monks Investment Trust PLC currently conducts its affairs, and intends to continue to conduct its affairs, so that the Company's ordinary shares can qualify to be considered as a mainstream investment product and can be recommended by Independent Financial Advisers to ordinary retail investors in accordance with the rules of the FCA in relation to non-mainstream investment products. **This document is important and requires your immediate attention.** 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. **Baillie Gifford™** --- The Monks Investment Trust PLC # Contents ## 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 Battle 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 01 --- Introduction ## 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* | NAV (borrowings at par value)† | NAV (borrowings at fair value)‡ | Comparative index** | | --- | --- | --- | --- | | 35.6% | 29.4% | 29.3% | 31.0% | NAV, share price and index total return* (figures released to 100 at 30 April 2025) ![img-1.jpeg](img-1.jpeg) Discount to net asset value (borrowings at fair value)* (figures plotted on a weekly basis) ![img-2.jpeg](img-2.jpeg) * Source: LSEG/Barke Gifford and relevant underlying index providers. See disclaimer on page 116. All figures are stated on a total return basis. Total return and discount are Alternative Performance Measures – see Glossary of terms and Alternative Performance Measures on pages 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. 02 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 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. **Low cost** - A tiered management fee means that shareholders benefit from economies of scale. Ongoing charges ratio* **0.44%**, among the lowest in the sector. **Active** - A portfolio that differs significantly from the comparative index. The Managers invest in companies with distinct competitive advantages and harness the potential to deliver superior earnings growth over time. Active share* **79%** **Geared** - Enhancement of shareholder returns via the deployment of structural gearing. Net gearing* **8.5%**. **Patience** - An investment horizon of 5 years or more allows the growth potential of investee companies to be fulfilled and Monks' shareholders to benefit from the power of compound growth. Annualised turnover* **24.9%**. **Capital discipline** - An active approach to both issuance and buybacks to maximise shareholder return. Buybacks of **$433 million** in the year to 30 April 2026; **16.1%** of issued share capital. * For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124 03 --- # Strategic report 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. --- The Monks Investment Trust PLC # Chairman's statement ![img-3.jpeg](img-3.jpeg) **Randeep Grewal** Chairman Appointed to the Board in 2024, and as Chairman in 2025 ## 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. 05 --- Strategic report 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 in treasury. 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 plus 15%. At the year end, net gearing stood at 8.5% and gross gearing at 8.9%. The Company had £50 million 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 in prior 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 15 September 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. 06 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC ## 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 remain unchanged. 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 time comes. 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 might deliver. 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 important consideration. 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. 07 --- 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 our downside. We hope investors will share our ambition – we aim to deliver you exposure to diversified forms of global growth. ## 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 five years. 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 0800 917 2113. 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 Paid performance is not a guide to future performance. Total return information is sourced from Baillie Gifford/LEG. See disclaimer on page 116. For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124. 08 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # Managers’ review ![img-4.jpeg](img-4.jpeg) 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. ![img-5.jpeg](img-5.jpeg) Portfolio manager 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. ![img-6.jpeg](img-6.jpeg) Portfolio manager 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. 09 --- Strategic report ## 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's largest. 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 exposure carefully. 10 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC 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 market expands. ## 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. 11 --- Strategic report ## 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 recent months. **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. 12 Annual Report and Financial Statements 2006 --- The Monks Investment Trust PLC ## 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 13 --- Strategic report # 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 a company to deliver. All holdings fall into one of three 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 full resources of Baillie Gifford. - Alignment of interests – the investment team responsible for Monks all own shares in the Company. ## Portfolio construction - Investments are held in three broad holding sizes, as set out on pages 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. 14 Annual Report and Financial Statements 2006 --- The Monks Investment Trust PLC # Environmental, social and governance engagement The Board has given discretionary voting powers to Baillie Gifford. The Managers vote against resolutions they consider may damage shareholders' rights or economic interests and report their actions to the Board. The Board believes that it is in the shareholders' interests to consider environmental, social and governance ('ESG') factors when selecting and retaining investments and has asked the Managers to take these issues into account. The Managers do not exclude companies from their investment universe purely on the grounds of ESG factors but adopt a positive engagement approach whereby matters are discussed with management with the aim of improving the relevant policies and management systems and enabling the Managers to consider how ESG factors could impact long-term investment returns. The Managers' Statement of Compliance with the UK Stewardship Code can be found on the Managers' website: bailliegifford.com. The Managers' policy has been reviewed and endorsed by the Board. The Managers, Baillie Gifford & Co, are signatories to the United Nations Principles for Responsible Investment. The Company publishes an annual stewardship report which includes examples of engagement on ESG matters, as well as setting out the Managers' approach to proxy voting. The annual stewardship report is available on the Company's website monksinvestmenttrust.co.uk. ![img-7.jpeg](img-7.jpeg) ![img-8.jpeg](img-8.jpeg) 15 --- Strategic report # Ten largest investments The Company's ten largest investments as at 30 April 2026. ![img-9.jpeg](img-9.jpeg) © Taiwan Semiconductor Manufacturing Co., Ltd. ![img-10.jpeg](img-10.jpeg) ## 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. ## 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 | 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) | | 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 | - | 16 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC ![img-11.jpeg](img-11.jpeg) © Copyright (c) 2022 Nor Gai/Shutterstock ![img-12.jpeg](img-12.jpeg) © Google.com ![img-13.jpeg](img-13.jpeg) © UCG/Getty Images ## 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. ## 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. ## 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 | £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) | | 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 | | Geography | North America | | --- | --- | | Valuation at 30 April 2026 | £93,381,000 | | % 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) | 17 --- Strategic report ![img-14.jpeg](img-14.jpeg) © Joe C. Hong/AP/REX/Shutterstock ![img-15.jpeg](img-15.jpeg) © Shutterstock/Melinkov Dmitry ![img-16.jpeg](img-16.jpeg) ## 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). ## 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. ## 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 | £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) | | Geography | North America | | --- | --- | | Valuation at 30 April 2026 | £53,483,000 | | % 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) | | Geography | North America | | --- | --- | | Valuation at 30 April 2026 | £51,932,000 | | % 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) | 18 Annual Report and Financial Statements 2026 --- The Monko Investment Trust PLC ![img-17.jpeg](img-17.jpeg) © Samsung ![img-18.jpeg](img-18.jpeg) © 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. It is well positioned as a key enabler of digital and AI infrastructure globally. ### 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 | Geography | Emerging Markets | | --- | --- | --- | --- | | Valuation at 30 April 2026 | £51,320,000 | Valuation at 30 April 2026 | £50,800,000 | | % of total assets | 2.2% | % of total assets | 2.2% | | Valuation at 30 April 2025 | £16,320,000 | Valuation at 30 April 2025 | - | | % of total assets | 0.6% | % of total assets | - | | Net purchases/(sales) in the year | £4,162,000 | Net purchases/(sales) in the year | £78,163,000 | 19 --- Strategic report ![img-19.jpeg](img-19.jpeg) 20 Annual Report and Financial Statements 2026 --- The Monko Investment Trust PLC # Growth categories 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. ## Growth stalwarts Earnings ![img-20.jpeg](img-20.jpeg) ### Company characteristics Durable franchise Deliver robust profitability in most macroeconomic environments Competitive advantage includes dominant local scale, customer loyalty and strong brands ## Rapid growth Earnings ![img-21.jpeg](img-21.jpeg) ### Company characteristics Early stage businesses with vast growth opportunity Innovators attacking existing profit pools or creating new markets ## Cyclical growth Earnings ![img-22.jpeg](img-22.jpeg) ### Company characteristics Subject to macroeconomic and capital cycles with significant structural growth prospects Strong management teams highly skilled at capital allocation 21 --- Strategic report # Investment portfolio by growth category as at 30 April 2026 | Holding size | Growth stalwarts | 31.8% | Rapid Growth | 28.8% | | --- | --- | --- | --- | --- | | Highest conviction holdings c.2.0% each | Alphabet | 4.1 | The Schathallion 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 | Strips® | 1.1 | | | Moody's | 0.9 | Netflix | 1.0 | | | Autozone | 0.9 | DeerDash | 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 | | | Kiewichow 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 | | | | | Auto! † | 0.3 | | | | | Epic Games® | 0.3 | | | | | Enphase Energy | 0.2 | | | | | Ant International® | 0.2 | | | | | Illumina CVR® | <0.1 | | | | | Abiored CVR | - | \* 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. 22 Annual Report and Financial Statements 2026 --- The Monko Investment Trust PLC | 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 | | Petrotex 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 | | Epiros | 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 | | Medatek † | 0.5 | | Nippon Paint | 0.5 | | ColStar | 0.5 | | Willscot Holdings | 0.3 | | Silk Invest Africa Food Fund ® | 0.1 | | Sberbank of Russia ® | - | | 23 --- Strategic report # List of investments as at 30 April 2026 | 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 | \* 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. 24 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC | 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 | | Ponte Italiane ^{†} | Italian delivery and financial services leader | 20,614 | 0.8 | | Nu Holdings | Latin American digital banking and financial services | 20,079 | 0.7 | | EGT 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. 25 --- Strategic report | Name | Business | Value 6'000 | % of total assets * | | --- | --- | --- | --- | | Nexans | Manufacturer of cables and electrical parts | 17,595 | 0.6 | | Edmond | Prepaid services company | 17,249 | 0.6 | | Uber Technologies | Multinational transportation company | 17,220 | 0.6 | | Samara † | 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. 26 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC | Name | Business | Value £'000 | % of total assets ^{1} | | --- | --- | --- | --- | | 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 | | Autot ^{1} | 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 % | Schlehefton Fund ^{1} % | Unlisted securities ^{1} % | Net liquid assets ^{1} % | Total assets ^{1} % | | --- | --- | --- | --- | --- | --- | | **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. 1. 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, FTNI Aviation, Generab, ICICI Prudential Life Insurance, Li Auto, LVMH, Mobileye, Neogen Corp, Olympus, PDD Holdings, Prosus, Rakuten, Reliance Industries, S&P Global, Salesforce.com, Sartorius Sladen Biotech, SMC, Soitec, Topicus.com, The Trade Desk, UnitedHealth, Wall Disney, VETI Holdings. 2. The Schlehefton Fund is listed closed ended investment company, is managed by Baillie Gifford. The Company's holding in The Schlehefton Fund is excluded from its assets when calculating the management fee. See note 3 on page 92. 3. Includes holdings in preference shares, ordinary shares and contingent value rights (CVR). 27 --- Strategic report # Baillie Gifford – valuing private companies We aim to hold our private company investments at 'fair value' i.e. the price that would be paid in an open-market transaction. Valuations are adjusted both during regular valuation cycles and on an ad hoc basis in response to 'trigger events'. Our valuation process ensures that private companies are valued in both a fair and timely manner. The valuation process is overseen by a valuations committee at Baillie Gifford which takes advice from an independent third party (S&P Global). The portfolio managers feed into the process, but the valuations committee owns the process and the portfolio managers only receive final valuation notifications once they have been applied. We revalue the private holdings on a three-month rolling cycle, with one-third of the holdings reassessed each month. For investment trusts, the prices are also reviewed twice per year by the respective investment trust boards and are subject to the scrutiny of external auditors in the annual audit process. Beyond the regular cycle, the valuations team also monitors the portfolio for certain 'trigger events'. These may include: changes in fundamentals; a takeover approach; an intention to carry out an IPO; or changes to the valuation of comparable public companies. The valuations team also monitors relevant market indices on a weekly basis and updates valuations in a manner consistent with our external value'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. 28 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # Portfolio positioning as at 30 April 2026$^{1}$ 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. The charts below outline some key exposures of the portfolio at the Company's year end. ## Geographical ![img-23.jpeg](img-23.jpeg) | Geographical region | % at 30 April 2026 | % at 30 April 2025 | | --- | --- | --- | | ● 1 North America | 57.5 | 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 | ## Sectoral ![img-24.jpeg](img-24.jpeg) | 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 | $^{1}$ Expressed as a percentage of total assets. $^{2}$ 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. 29 --- Strategic report # One year summary The following information illustrates how Monks has performed over the year to 30 April 2026. | | 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% | | * Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 to 124. † Key Performance Indicator. Source: LDEG/Battle Gifford and relevant underlying index providers. See disclaimer on page 118. Past performance is not a guide to future performance. 30 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC | Year to 30 April | 2026 | 2025 | | --- | --- | --- | | **Total return performance (%)^{1}** | | | | Net asset value per ordinary share (borrowings at par)^{2} | 29.4 | (0.4) | | Net asset value per ordinary share (borrowings at fair value)^{2} | 29.3 | 0.1 | | Share price^{3} | 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)^{2} | 1,614.6p | 1,248.6p | 1,477.7p | 1,137.6p | | Net asset value per ordinary share (borrowings at fair value)^{2} | 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)^{3,4} | (4.3%) | (11.2%) | (7.2%) | (15.6%) | | Year to 30 April | 2026 | 2025 | | --- | --- | --- | | **Net return per ordinary share** | | | | Revenue | 2.3p | 1.75p | | Capital | 366.24p | (10.08p) | | **Total** | **368.55p** | **(8.33p)** | $^{1}$ Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 to 124. $^{2}$ Key performance indicator. Source: LSEG/Sadie Gifford and relevant underlying index providers. See disclaimer on page 116. Past performance is not a guide to future performance. 31 --- Strategic report # Five year summary The following charts indicate how an investment in Monks has performed relative to its comparative index and its underlying NAV* over the five year period to 30 April 2026. ## Five year total return performance (figures rebased to 100 at 30 April 2021) ![img-25.jpeg](img-25.jpeg) ● NAV† ● Share price ● Index† Source: LSEG/Bailler Gifford and relevant underlying index providers. Dividends are reinvested. ## Premium/(discount) to NAV† (figures plotted on a monthly basis) ![img-26.jpeg](img-26.jpeg) ● Premium/(discount) Source: LSEG/Bailler Gifford. * See Glossary of terms and Alternative Performance Measures on pages 120 to 124. † See disclaimer on page 119. ‡ 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. 32 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # **Annual NAV and share price total returns\*** ![img-27.jpeg](img-27.jpeg) Source: LSEG/Ballie Gifford and relevant underlying index providers$^{4}$. # **Annual NAV and share price total returns\***(relative to the index$^{5}$) ![img-28.jpeg](img-28.jpeg) Source: LSEG/Ballie Gifford and relevant underlying index providers$^{4}$. \* See Glossary of terms and Alternative Performance Measures on pages 120 to 124. $^{1}$ With borrowings deducted at fair value. $^{2}$ See disclaimer on page 116. $^{3}$ The comparative index is the FTSE World Index (in sterling terms). Past performance is not a guide to future performance. 33 --- Strategic report # Ten year record ## Capital | At 30 April | Total assets $'000 * | Borrowings $'000 | Shareholders' funds $'000 | NAV per share (per) ^{†} p | NAV per share (fair) ^{†} p | Share price p | (Discount)/ premium (per) ^{†} % | (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)** | ## Revenue ## Gearing ratios | Year to 30 April | Gross revenue $'000 | Available for ordinary shareholders $'000 | Revenue earnings per ordinary share p | Dividends paid and proposed per share p | Ongoing charges ratio ^{†} % | Net (equity) gearing ^{†} % | Gross gearing ^{†} % | | --- | --- | --- | --- | --- | --- | --- | --- | | 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** | Source: LSEG/Bailie 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. 34 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # Cumulative performance (taking 2016 as 100) | At 30 April | NAV per share (fair) | NAV total return (fair) * | Share price | Share price total return * | Index † | Index total return † | Revenue earnings per ordinary share | Dividends paid and proposed per ordinary share | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 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) | # Ten year total return performance * ![img-29.jpeg](img-29.jpeg) Source: Balike Gifford/LEGG 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. 35 --- Strategic report ![img-30.jpeg](img-30.jpeg) 36 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # Business review ## 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 3 St Helen's Place, London EC3A 6AB. The Company is an investment company within the meaning of section 833 of the Companies Act 2006 and carries on business as an investment trust. Investment trusts are UK public listed companies and their shares are traded on the London Stock Exchange. They invest in a portfolio of assets in order to spread risk. The Company has a fixed share capital although, subject to shareholder approval sought annually, it may purchase its own shares or issue shares. The price of the Company's shares is determined, like other listed shares, by supply and demand. The Company has been approved as an investment trust by HM Revenue & Customs subject to the Company continuing to meet the eligibility conditions. The Directors are of the opinion that the Company has continued to conduct its affairs so as to enable it to comply with the ongoing requirements of section 1158 of the Corporation Tax Act 2010 and the Investment Trust (Approved Company) (Tax) Regulations 2011. The Company is an Alternative Investment Fund ('AIF') for the purposes of the UK Alternative Investment Fund Managers Regulations. ### Purpose The Monks Investment Trust aims to deliver above average long-term returns for shareholders by harnessing the long-term growth potential of companies and keeping fees and costs low. ### 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 view is taken and there may be periods when the net asset value per share declines both in absolute terms and relative to the comparative index. Payment of dividends is secondary to achieving capital growth. The shares are not considered to be a suitable investment for those seeking a regular or rising income. 37 --- Strategic report 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. As noted 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 a number of performance measures to assess the Company's success in achieving its objectives. # Key Performance Indicators The Board uses performance indicators (KPIs) to measure the progress and performance of the Company over time when discharging its duties as set out on page 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 return basis; - the premium/discount; and - ongoing charges. An explanation of these measures can be found in the Glossary of terms and Alternative Performance Measures on pages 120 to 124. The one, five and ten year 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 a reasonably 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. 38 Annual Report and Financial Statements 2026 --- 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. A description 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 existing risks, rather than discrete risks, within the context of an investment trust. Their impact is considered within the relevant risks. ## Investment and strategic risks ### Investment strategy risk #### What is the risk? Pursuing an investment strategy to fulfil the Company's objective which the market perceives to be unattractive or inappropriate, or the ineffective implementation of an attractive or appropriate strategy, may lead to reduced returns for shareholders and, as a result, a decreased demand for the Company's shares. This may lead to the Company's shares trading at a widening discount to their net asset value. #### How is it managed? To mitigate this risk, the Board regularly reviews and monitors the Company's objective and investment policy and strategy; the investment portfolio and its absolute and relative performance; the level of discount/premium to net asset value at which the shares trade; and movements in the share register, and raises any matters of concern with the Managers. #### 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. ![img-31.jpeg](img-31.jpeg) 39 --- Strategic report # 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 105. **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 30 million 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 or may invest may have practical consequences for the Company. **How is it managed?** To mitigate this risk, developments are closely monitored and considered by the Board. The Board has particular regard to macroeconomic and geopolitical tensions and monitors portfolio diversification by revenue stream where appropriate, as well as by investee companies' primary location and considers the potential for negative impacts arising from military action, trade barriers or other political factors. **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. ![img-32.jpeg](img-32.jpeg) 40 Annual Report and Financial Statements 2026 --- 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 page 15 and also on the Managers' website bailliegifford.com/esg. The Directors have considered the impact of climate change on the Financial Statements of the Company and this is included in note 1a to the Financial Statements on page 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. ![img-33.jpeg](img-33.jpeg) 41 --- Strategic report # 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 of the key points is reported to the Audit Committee and any concerns 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. ![img-34.jpeg](img-34.jpeg) 42 Annual Report and Financial Statements 2026 --- 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'). If the investments fall in value, any borrowings will magnify the impact of this loss. If borrowing facilities are not renewed, the Company may have to sell investments to repay borrowings. The Company can also make use of derivative contracts, although it does not currently do so. The use of such contracts may have a gearing effect so as to enhance, or worsen, returns relative to the amount invested in this way. # **How is it managed?** To mitigate this risk, all borrowings require the prior approval of the Board and leverage levels are discussed by the Board and Managers at every meeting. Covenant levels are monitored regularly. Details of the Company's current borrowing facilities and drawings can be found in notes 11 and 12 on pages 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 pages 120 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 Baillie Gifford's network or that of a third party service provider could impact the confidentiality, integrity or availability of data and systems. # **How is it managed?** To mitigate this risk, the Audit Committee reviews Reports on Internal Controls published by Baillie Gifford and other third party service providers. Baillie Gifford's Business Risk Department report to the Audit Committee on the effectiveness of information security controls in place at Baillie Gifford and its business continuity framework. Cyber security due diligence is performed by Baillie Gifford on third party service providers which includes a review of crisis management and business continuity frameworks. # **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, including any risks which are not an immediate threat but could arise in the longer term. ![img-35.jpeg](img-35.jpeg) 43 --- Strategic report ## Viability statement Having regard to provision 31 of the UK Corporate Governance Code, the Directors have assessed the prospects of the Company over a five year period. The Directors consider this period to be appropriate as, in the absence of any adverse change to the regulatory environment and the favourable tax treatment afforded to UK investment trusts, it is a period over which they do not expect there to be any significant change to the current principal risks and to the adequacy of the mitigating controls in place. The Directors do not envisage any change in strategy or objectives or any events that would prevent the Company from continuing to operate over that period. In making this assessment the Directors have taken into account the Company's current position and have conducted a robust assessment of the Company's principal risks and uncertainties, including climate change (as detailed on pages 39 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. 44 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC ## Promoting the success of the Company (section 172 statement) Under section 172 of the Companies Act 2006, the directors of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and, in doing so, have regard (amongst other matters and to the extent applicable) to: a) the likely consequences of any decision in the long term, b) the interests of the company's employees, c) the need to foster the company's business relationships with suppliers, customers and others, d) the impact of the company's operations on the community and the environment, e) the desirability of the company maintaining a reputation for high standards of business conduct, and f) the need to act fairly as between members of the company. In this context, having regard to Monks being an externally-managed investment company with no employees, the Board considers the Company's key stakeholders to be: its existing and potential new shareholders; its externally-appointed Managers (Baillie Gifford); other professional service providers (corporate broker, registrar and depositary); lenders; wider society and the environment. The Board considers that the interests of the Company's key stakeholders are aligned, in terms of wishing to see the Company deliver sustainable long-term growth, in line with the Company's stated objective and strategy, and meet the highest standards of legal, regulatory, and commercial conduct, with the differences between stakeholders being merely a matter of emphasis on those elements. The Board's methods for assessing the Company's progress in the context of its stakeholders' interests are set out below. | Stakeholder | Why we engage | How we engage and what we do | | --- | --- | --- | | Shareholders | Shareholders are, collectively, the Company's owners; providing them with a return for their investment in accordance with the Company's investment policy and objective is the reason for its existence. | The Board places great importance on communication with shareholders. The Annual General Meeting provides the key forum for the Board and Managers to present to shareholders on the Company's performance, future plans and prospects. The Chairman is available to meet with shareholders as appropriate. The Managers meet regularly with shareholders and their representatives, reporting their views back to the Board. Directors also attend certain shareholder presentations, in order to gauge shareholder sentiment first hand. Shareholders may also communicate with members of the Board at any time by writing to them at the Company's registered office or to the Company's broker. These communication opportunities help inform the Board when considering how best to promote the success of the Company for the benefit of all shareholders over the long term. | | Baillie Gifford - Managers and Secretaries | The Company's Board has delegated the management of the Company's portfolio, and the administration of the Company's operations including fulfilment of regulatory and taxation reporting requirements, to Baillie Gifford. Baillie Gifford is therefore responsible for the substantial activities of the Company and has the most immediate influence on its conduct towards the other stakeholders, subject to the oversight and strategic direction provided by the Board. | The Board seeks to engage with its Managers in a collaborative and collegiate manner, encouraging open and constructive discussion and debate, while also ensuring that appropriate and regular challenge is brought and evaluation conducted. This approach aims to enhance service levels and strengthen relationships with the Company's providers, with a view to ensuring the interests of the Company's shareholders are best served, by keeping cost levels proportionate and competitive and by maintaining the highest standards of business conduct. | 45 --- Strategic report | Stakeholder | Why we engage | How we engage and what we do | | --- | --- | --- | | Portfolio companies | As all of the Company's operations are conducted by third party professional providers, it is the companies held in its investment portfolio which have the primary real-world impact in terms of social and environmental change, both positively and negatively, as well as generating, through their commercial success, the investment growth sought by the Company's shareholders. The investee companies have an interest in understanding their shareholders' investment rationale in order to assure themselves that long-term business strategies will be supported. | The Board is cognisant of the need to consider the impact of the Company's investment strategy and policy on wider society and the environment. The Board considers that its oversight of environmental, social and governance ('ESG') matters is an important part of its responsibility to all stakeholders. The Board's review of the Managers includes an assessment of their ESG approach and its application in making investment decisions. The Board regularly reviews Governance Engagement reports, which document the Managers' interactions with investee companies on ESG matters (see page 15). | | Brokers | The Company's brokers provide an interface between the Company's Board and its institutional shareholders. | The Company's brokers regularly attend Board meetings, and provide reports to those meetings, in order to keep the Board apprised of shareholder and wider market sentiment regarding the Company. They also arrange forums for shareholders to meet the Chairman, or other Directors, outwith the normal general meeting cycle. | | Registrars | The Company's registrars provide an interface with those shareholders who hold the Company's shares directly. | The Company Secretaries liaise with the registrars to ensure the frequency and accuracy of communications to shareholders is appropriate, and monitor shareholder correspondence to ensure that the level of service provided by the registrars is acceptable. The Manager's risk function reviews the registrars' internal controls report and reports on the outcome of this review to the Audit Committee. | | Auditor | The Company's auditor has a responsibility to provide an opinion on whether the Company's financial statements as a whole are free from material misstatement, as set out in more detail in the Auditor's Report to the Members on pages 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. | | Depository and custodian | The depository and custodian are responsible for the safekeeping of the Company's financial instruments, as set out in more detail on page 55. | The depository provides the Audit Committee with a report on its monitoring activities. The Board and Managers seek to engage with the depository and custodian in a collaborative and collegiate manner, encouraging open and constructive discussion and debate, while also ensuring that appropriate and regular challenge is brought and evaluation conducted. This approach aims to enhance service levels and strengthen relationships with the Company's providers, with a view to ensuring the interests of the Company's shareholders are best served by keeping cost levels proportionate and competitive, and by maintaining the highest standards of business conduct. | | Lenders | Lenders such as holders of debt instruments (debentures, bonds and private placement loan notes) and banks providing fixed or revolving credit facilities provide the Company's gearing and have an interest in the Company's ongoing financial health and viability. | The Company's legal advisers review all legal agreements in connection with the Company's debt arrangements and advise the Board on the appropriateness of the terms and covenants therein. The Managers and Secretaries ensure that the frequency and accuracy of reporting on, for example, covenant certification, is appropriate and that correspondence from the lenders receives a prompt response. | | AIC/industry peers | The Association of Investment Companies ('AIC') and the Company's investment trust industry peers have an interest in the Company's conduct and performance, as adverse market sentiment towards one investment trust can affect attitudes towards the wider industry. | The Company is a member of the AIC, and the Directors and/or the Managers and Secretaries (as appropriate) participate in technical reviews, requests for feedback on proposed legislation or regulatory developments, corporate governance discussions and/or training. | 46 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC | Stakeholder | Why we engage | How we engage and what we do | | --- | --- | --- | | Investment platforms | Investment platforms provide an interface with shareholders who invest in the Company indirectly. | The Managers liaise with the various investment platforms on strategies for improving communications with the Company's shareholders who hold their shares via these platforms. An annual timetable of key dates is published on the Company's website, for the ease of reference of such shareholders. | | Wider society and the environment | No entity, corporate or otherwise, can exist without having an influence on the society in which it operates or utilising the planet's resources. Through its third-party relationships, as noted above, the Company seeks to be a positive influence and, in circumstances where that is not possible, to mitigate its negative impacts insofar as is possible. | The Board and Managers' interactions with the various stakeholders as noted above form the principal forms of direct engagement with wider society and in respect of the environment (commercial, financial, and in terms of planetary health and resources). | The Board recognises the importance of keeping the interests of the Company's shareholders, and of acting fairly between them, firmly front of mind in its key decision making. The Company Secretaries are at all times available to the Board to ensure that suitable consideration is given to the range of factors to which the Directors should have regard. In addition to ensuring that the Company's stated investment objective was being pursued, key decisions and actions during the year which required the Directors to have regard to applicable section 172 factors included: - buying back over 30 million of the Company's own shares into treasury for subsequent reissue, at a discount to net asset value, in order to ensure the Company's shareholders found liquidity for their shares when natural market demand was insufficient, and on terms that enhanced NAV per share for remaining shareholders; - 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. 47 --- Strategic report ## **Employees, human rights and community issues** The Board recognises the requirement to provide information about employees, human rights and community issues. As the Company has no employees, all its Directors are non-executive and all its functions are outsourced, there are no disclosures to be made in respect of employees, human rights and community issues. ## **Board representation** The Board's policy on diversity and relevant disclosures are set out on pages 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 its suppliers are typically professional advisers. A statement by the Managers under the Act has been published on the Managers' website at bailliegifford.com. ## **Future developments of the Company** The outlook for the Company is dependent to a significant degree on economic events and the financial markets. Potential threats are discussed in the Principal risks analysis on pages 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 in the Chairman's statement 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 48 Annual Report and Financial Statements 2026 --- # 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 # Directors and managers ## Directors ![img-36.jpeg](img-36.jpeg) **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. ![img-37.jpeg](img-37.jpeg) **David Ballance** Director Appointed 2025 David Ballance was appointed a Director on 1 March 2025. He brings around 37 years' 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. 50 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC ![img-38.jpeg](img-38.jpeg) **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, Ms Boyle then spent thirteen years working in equity investment management for: Robert Fleming Investment Management; American Express Asset Management; and latterly Oxburgh Partners LLP, where she was a partner with responsibility for their European Equity Hedge Fund. She is 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. ![img-39.jpeg](img-39.jpeg) **Richard Curling** Director Appointed 2025 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 10 years. He is a non-executive Director of Schroder UK Mid Cap Fund plc. 51 --- Governance report ![img-40.jpeg](img-40.jpeg) **Stacey Parrinder-Johnson** Director Appointed 2024 Stacey Parrinder-Johnson was appointed a Director in 2024 and became Senior Independent Director on 1 January 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 of the executive risk management committee. Stacey brings twenty years of experience in asset selection, portfolio management, and manager analysis across UK and international mandates, and has particular strength in investment trust governance, sustainability and risk issues. She is a governor of the University of Portsmouth and a non-executive director of Polar Capital Global Healthcare Trust. ![img-41.jpeg](img-41.jpeg) **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. ![img-42.jpeg](img-42.jpeg) **Professor Sir Nigel Shadbolt** Director Appointed 2017 Professor Sir Nigel Shadbolt was appointed a Director in 2017. He is Principal of Jesus College, Oxford, Professorial Research Fellow in the Department of Computer Science, University of Oxford and a visiting Professor of Artificial Intelligence at the University of Southampton. He specialises in open data and artificial intelligence and is currently also chair of the Open Data Institute. All of the Directors are non-executive, all are members of the Management Engagement Committee and the Nomination Committee, and all are members of the Audit Committee with the exception of Randeep Grewal, who attends the Audit Committee by invitation. 52 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC ## Portfolio Managers ![img-43.jpeg](img-43.jpeg) **Michael Taylor** Portfolio Manager ### 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. ![img-44.jpeg](img-44.jpeg) **Malcolm MacColl** 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 and Management in 1999 from the University of St Andrews. ![img-45.jpeg](img-45.jpeg) **Helen Xiong** 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. 53 --- Governance report # Directors' report **The Directors present their report together with the Financial Statements of the Company for the year to 30 April 2026.** ## Corporate governance The Corporate governance report is set out on pages 59 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 (Hong Kong) Limited. Baillie Gifford & Co is an investment management firm formed in 1927 out of the legal firm Baillie Gifford, WS, which had been involved in investment management since 1908. Baillie Gifford & Co Limited and Baillie Gifford & Co are both authorised and regulated by the Financial Conduct Authority. Baillie Gifford is one of the largest investment trust managers in the UK and currently manages 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 if termination were to occur sooner. 54 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC The annual management fee is 0.45% on the first £750 million of total assets, 0.33% on the next £1 billion of total assets and 0.30% on the remaining total assets (see note 3 on page 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 technological change. 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. ## Depository The Bank of New York Mellon (International) Limited has been appointed as the Company's depository in accordance with the requirements of the UK Alternative Investment Fund Managers (AIFM) Regulations. The Company's depository also acts as the Company's custodian. The depository'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, the Chairman confirms that the Board considers that the Directors' performance continues to be effective and that they remain committed to the Company. The Board therefore recommends their re-election to shareholders. 55 --- Governance report ## 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, to the Nomination Committee on an annual basis. The Committee considers these carefully, taking into account the circumstances surrounding them, and makes a recommendation to the Board on whether or not the potential conflicts should be authorised. Board authorisation is for a period of one year. Having considered the lists of potential conflicts there were no situations which gave rise to a direct or indirect interest of a Director which conflicted with the interests of the Company. ## 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 30 April 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 of the Company's ordinary shares and there are no special rights attached to any of the shares. ## Dividends The ordinary shares carry a right to receive dividends. Interim dividends are determined by the Directors, whereas the proposed final dividend requires shareholder approval. Shares held in treasury are not entitled to dividends. ## Capital entitlement On a winding up, after meeting the liabilities of the Company, the surplus assets will be paid to ordinary shareholders in proportion to their shareholdings. ## Voting Each ordinary shareholder present in person or by proxy is entitled to one vote on a show of hands and, on a poll, to one vote for every share held. Information on the deadlines for proxy appointments can be found on pages 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 | | --- | --- | --- | | Rainbow 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 30 June 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. 56 Annual Report and Financial Statements 2026 --- 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 a further 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 15 months from the passing of the resolutions, if earlier. Resolution 13, which is proposed as a special resolution, seeks authority for the Directors to issue shares or sell shares held in treasury on a non pre-emptive basis for cash up to an aggregate nominal amount of £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 30 April 2026 the Company bought back a total of 30,169,136 shares, representing 16.1% of the issued share capital at 30 April 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 2,783,000 shares 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 30 April 2026. In the period 23 June 2026 to 26 June 2026, a further 415,000 shares were bought back. At 26 June 2026 98,915,930 shares were held in treasury. The principal reason for share buy-backs is to enhance net asset value per share for continuing shareholders by purchasing shares at a discount to the prevailing net asset value. The Company may hold bought-back shares 'in treasury' and then: i. sell such shares (or any of them) for cash (or its equivalent under the Companies Act 2006); or ii. cancel the shares (or any of them). Shares will only be sold from treasury at a premium to net asset value. The Directors are seeking shareholders' approval at the Annual General Meeting to renew the authority to purchase up to 14.99% of the Company's ordinary shares in issue at the date of passing of the resolution, such authority to expire at the Annual General Meeting of the Company to be held in respect of the year ended 30 April 2027. In accordance with the UK Listing Rules, the maximum price (excluding expenses) that may be paid on the exercise of the authority must not exceed the higher of: i. 5 per cent. above the average closing price on the London Stock Exchange of an ordinary share over the five business days immediately preceding the date of purchase; and ii. the higher of the price of the last independent trade and the highest current independent bid for a share on the London Stock Exchange. The minimum price (exclusive of expenses) that may be paid is 5p per share. Purchases of shares will be made within guidelines established, from time to time, by the Board. The Company does not have any warrants or options in issue. Your attention is drawn to Resolution 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. 57 --- Governance report ## Articles of Association The Company's Articles of Association may only be amended by special resolution at a general meeting of shareholders. ## Financial instruments The Company's financial instruments comprise its investment portfolio, cash balances, borrowings and debtors and creditors that arise directly from its operations such as sales and purchases awaiting settlement and accrued income. The financial risk management objectives and policies arising from its financial instruments and the exposure of the Company to risk are disclosed in note 19 to the Financial Statements. ## Disclosure of information to auditor The Directors confirm that so far as each of the Directors is aware there is no relevant audit information of which the Company's auditor is unaware and the Directors have taken all the steps that they might reasonably be expected to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. ## Independent auditor The auditor, Ernst & Young LLP, is willing to continue in office and, in accordance with section 489 and section 491(1) of the Companies Act 2006, resolutions concerning Ernst & Young LLP's reappointment and remuneration will be submitted to the Annual General Meeting. ## 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 58 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 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. ## 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 of whom are non-executive. The Chairman is responsible for organising the business of the Board, ensuring its effectiveness and setting its agenda. The executive responsibility for investment management has been delegated to the Company's Alternative Investment Fund Manager ('AIFM'), Baillie Gifford & Co Limited, and, in the context of a Board comprising only non-executive Directors, there is no chief executive officer. 59 --- Governance report # Board of Directors Comprises independent non-executive directors Chairman: Randeep Grewal Senior Independent Director: Stacey Parrinder-Johnson # Audit Committee Chair: Claire Boyle Purpose: The primary purpose of the Audit Committee is to provide oversight of the financial reporting process, the audit process, the Company's system of internal controls and compliance with laws and regulations. # Management Engagement Committee Chair: 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 Board recruitment 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: Bailie Gifford & Co Limited (wholly owned subsidiary of Bailie Gifford & Co) Dealing activity and transaction reporting: Bailie Gifford Overseas Limited and Bailie Gifford Asia (Hong Kong) Limited Ernst & Young LLP Auditor The Bank of New York Mellon (International) Limited Depository and custodian Computershare Investor Services PLC Registrar Investec Bank plc Company broker 60 Annual Report and Financial Statements 2026 --- 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 the Committee. The Committee meets on an annual basis and at such other times as may be required. The Committee has written terms of reference which include reviewing the composition of the Board, identifying and nominating new candidates for appointment to the Board, Board appraisal, succession planning and training. The Committee also considers whether Directors should be recommended for re-election by shareholders. The Committee is responsible for considering Directors' potential conflicts of interest and for making recommendations on whether or not the potential conflicts should be authorised. The Committee's Terms of Reference are available on request from the Company and on the Company's page of the Managers' website: monksinvestmenttrust.co.uk. ### Appointments to the Board New Directors are appointed by the Board, following recommendation by the Nomination Committee. The terms and conditions of Directors' appointments are set out in formal letters of appointment which are available for inspection on request. A Director appointed during the year is required to retire and seek election by shareholders at the next Annual General Meeting. In accordance with the Code, all Directors offer themselves for re-election annually. ### Diversity Policy Appointments to the Board are made on merit with due regard for the benefits of diversity, including gender, social and ethnic backgrounds, cognitive and personal strengths. The priority in appointing new Directors is to identify the candidate with the best range of skills and experience to complement those of existing Directors, with a view to ensuring that the Board remains well-placed to help the Company achieve its investment and governance objectives. Within the context of a small, entirely non-executive Board, a single appointment or retirement can have a significant impact on percentage representation, and a limited number of senior roles are available. The Board will endeavour to comply with the UK Listing Rules targets but notes that the circumstances of Directors may prevent them from accepting the additional responsibilities of a senior role and that Directors may prefer not to disclose their ethnic background. In such circumstances, the value brought to the Board by their inclusion outweighs the ambition of meeting diversity targets. ### Diversity of the Board 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. 61 --- Governance report | Ethnic background | Number | % | Senior roles^{1} | | --- | --- | --- | --- | | White | 6 | 86 | 1 | | Asian/Asian British | 1 | 14 | 1 | | Prefer not to say | - | - | - | $^{1}$ 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 be a benefit 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. It firmly believes that an appropriate combination of these factors is essential for an effective Board. This, at times, will naturally result in some longer serving directors, including the 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. The Board considers that it meets sufficiently regularly to discharge its duties effectively. The table below shows the attendance record for the core Board and Committee meetings held during the year. 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^{1} | 2 | 2 | | R Curling^{2} | 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 | $^{1}$ Appointed effective 1 October 2025, attended all meetings held between appointment date and year end. $^{1}$ 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. 62 Annual Report and Financial Statements 2026 --- 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 or loss. The Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company in accordance with the FRC 'Guidance on Risk Management, Internal Control and Related Financial and Business Reporting'. The practical measures in relation to the design, implementation and maintenance of control policies and procedures to safeguard the Company's assets and to manage its affairs properly, including the maintenance of effective operational and compliance controls have been delegated to the Managers and Secretaries. The Board oversees the functions delegated to the Managers and Secretaries and the controls managed by the AIFM in accordance with the UK Alternative Investment Fund Managers Regulations (as detailed below). Baillie Gifford & Co's Internal Audit and Compliance Departments and the AIFM's permanent risk function provide the Audit Committee with regular reports on their monitoring programmes. The reporting procedures for these departments are defined and formalised within a service level agreement. Baillie Gifford & Co conducts an annual review of its system of internal controls which is documented within an internal controls report which complies with ISAE 3402 – Assurance Reports on Controls at a Service Organization. This report is independently reviewed by Baillie Gifford & Co's auditors and a copy is submitted to the Audit Committee. A report identifying the material risks faced by the Company and the key controls employed to manage these risks is reviewed by the Audit Committee. These procedures ensure that consideration is given regularly to the nature and extent of risks facing the Company and that they are being actively monitored. Where changes in risk have been identified during the year they also provide a mechanism to assess whether further action is required to manage these risks. 63 --- Governance report 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 internal controls. To comply with the UK Alternative Investment Fund Managers Regulations, The Bank of New York Mellon (International) Limited acts as the Company's depositary and Baillie Gifford & Co Limited acts as its AIFM. The depositary's responsibilities include cash monitoring, safe keeping of the Company's financial instruments, verifying ownership and maintaining a record of other assets and monitoring the Company's compliance with investment limits and leverage requirements. The depositary is liable for the loss of financial instruments held in custody. The depositary will ensure that any delegate segregates the assets of the Company. The Company's depositary also acts as the Company's custodian. The custodian prepares reports on its key controls and safeguards which are independently reviewed by its appointed auditors, KPMG LLP. The reports are reviewed by Baillie Gifford's Business Risk Department and a summary of the key points is reported to the Audit Committee and any concerns are investigated. The depositary provides the Audit Committee with a report on its monitoring activities. The AIFM has established a permanent risk management function to ensure that effective risk management policies and procedures are in place 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. 64 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC All borrowings require the prior approval of the Board. Gearing levels and compliance with borrowing covenants are reviewed by the Board on a regular basis. 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 30 June 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. The Chairman is available to meet with shareholders as appropriate. Shareholders wishing to communicate with any members of the Board may do so by writing to them at the Secretaries' address or through the Company's broker, Investec Bank plc (see contact details on page 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 to consider how ESG factors could impact long-term investment returns. The Managers' statement of compliance with the UK Stewardship Code can be found on the Managers' website at bailliegifford.com. The Managers' policy has been reviewed and endorsed by the Board. In addition, the Monks Stewardship Report, which outlines the Managers' approach to engagement and provides examples, is prepared annually, and is available on the Company's page of the Managers' website at monksinvestmenttrust.co.uk. ### Climate change The Board recognises that climate change poses a serious threat to our environment, our society and to economies and companies around the globe. Addressing the underlying causes is likely to result in companies that are high emitters of carbon facing greater societal and regulatory scrutiny and higher costs to account for the true environmental impact of their activities. 65 --- Governance report The Managers utilise data sourced from a third-party provider to map the carbon footprint of the equity portfolio, using the information to prioritise engagement and understand what higher emitting companies are doing to manage climate risk better. Best practice in this area is evolving rapidly, and it is therefore challenging to establish reliable comparisons company-to-company and year-on-year. Based on the most recent analysis, as at 30 April 2026 the carbon intensity of The Monks Investment Trust's portfolio was 12% lower than the Company's benchmark (FTSE World 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 31 May 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 66 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # Audit Committee report **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 Sir Nigel 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. 67 --- Governance report 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 put out to tender; - • the policy on the engagement of the external auditor to supply non-audit services; - • the independence and objectivity of the external auditor and effectiveness of the external audit process; - • the need for the Company to have its own internal audit function; - • internal controls reports received from the Managers and custodians; and - • the arrangements in place within Baillie Gifford & Co whereby their staff may, in confidence, raise concerns about possible improprieties in matters of financial reporting or other matters. #### Internal audit The Committee continues to believe that the compliance and internal control systems and the internal audit function in place within the Managers provide sufficient assurance that a sound system of internal control, which safeguards shareholders' investment and the Company's assets, is maintained. An internal audit function, specific to the Company, is therefore considered unnecessary. #### Financial reporting The Committee considers that the most significant issues likely to impact the Financial Statements are the existence and valuation of investments, as they represent 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 30 April 2026 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. 68 Annual Report and Financial Statements 2026 --- 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. No significant weaknesses were identified in the year under review. #### **External auditor** To fulfil its responsibility regarding the independence and objectivity of the external auditor, the Committee reviewed the auditor's audit plan, which includes a description of the auditor's arrangements to manage independence, a report from the auditor on the conclusion of the audit setting out why the auditor remains independent and the extent and nature of non-audit services provided by the auditor. No non-audit fees were incurred by the Company during the year to 30 April 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, Ahmer Huda became the lead audit partner for the Company's audit for the year ended 30 April 2023 and subsequent years. Ernst & Young LLP has confirmed that it believes it is independent within the meaning of regulatory and professional requirements and that the objectivity of the audit partner and staff is not impaired. Having carried out the review described above, the Committee is satisfied that the auditor remains independent and effective for the purposes of this year's audit and, as such, has not considered it necessary to put the audit services contract out to tender. In accordance with regulations in relation to the statutory audits of listed companies, the Company is required to put the audit out to tender for the 2028 year end. There are no contractual obligations restricting the Committee's choice of external auditor. #### **Regulatory compliance** The Committee confirms that the Company is in compliance with the requirements of the Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014, which relates to the frequency and governance of tenders for the appointment of the external auditor and the setting of policy on the provision of non-audit services. #### **Accountability and audit** The respective responsibilities of the Directors and the auditor in connection with the Financial Statements are set out on pages 77 to 83. On behalf of the Board CM Boyle Audit Committee Chair 30 June 2026 69 --- Governance report # Directors' remuneration report This report has been prepared in accordance with the requirements of the Companies Act 2006. ## 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 year and 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. 70 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC Non-executive Directors are not eligible for any other remuneration or benefits apart from the reimbursement of allowable expenses. There are no performance conditions relating to Directors' fees and there are no long-term incentive schemes or pension schemes. There is no notice period and no compensation is payable on loss of office. ### Limits on Directors' remuneration The fees for the non-executive Directors are payable monthly in arrears and are determined within the limit set out in the Company's Articles of Association, which is currently £400,000 in aggregate. The fees paid to Directors in respect of the year ended 30 April 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. 71 --- Governance report # **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 | | 2025 | | 2025 | | | --- | --- | --- | --- | --- | --- | --- | | | 2026 Fees $ | Taxable benefits $ | 2026 Total $ | 2025 Fees $ | Taxable benefits $ | 2025 Total $ | | DC Ballance (appointed 1 March 2025) | 36,000 | – | 36,000 | 5,833 | – | 5,833 | | CM Boyle (Audit Chair from 10 September 2024) | 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 9 September 2025) | 46,303 | – | 46,303 | 35,000 | – | 35,000 | | SL Parrinder-Johnson (appointed 1 March 2024, SID from 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 1 December 2023, retired 10 September 2024) | – | – | – | 15,167 | 793 | 15,960 | | R Curling (appointed 1 October 2025) | 21,000 | – | 21,000 | – | – | – | | | **277,015** | **1,510** | **278,523** | **285,760** | **2,455** | **284,265** | \* 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) | 517.1 | n/a | n/a | n/a | n/a | | CM Boyle (appointed 1 May 2020, Audit Chair from 10 September 2024) | 8.9 | 16.2 * | 4.6 | 4.8 | 3.3 | | Dr D Chaya (appointed 30 November 2022, resigned 31 January 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 1 January 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 9 September 2025) | (63.3) | 2.0 | 5.3 | 3.3 | 17.0 | | JJ Tigue (Audit Committee Chair, and SID to 1 December 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 further be affected by the retirement of other Directors, whose details are no longer shown in the table above. 72 Annual Report and Financial Statements 2026 --- 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, is provided for information purposes only). ### Performance graph (Figures rebased to 100 at 30 April 2016) ![img-46.jpeg](img-46.jpeg) Source: LSEG/Badlie Gifford and relevant underlying index providers. See disclaimer on page 116. All figures are total returns (see Glossary of terms and Alternative Performance Measures on pages 120 to 124). 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 73 --- Governance report # Statement of Directors' responsibilities in respect of the Annual Report and the Financial Statements 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. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements and the Directors' Remuneration report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Under applicable laws and regulations, the Directors are also responsible for preparing a Strategic report, Directors' report, a Directors' remuneration report and a Corporate governance statement that complies with that law and those regulations. The Directors have delegated responsibility to the Managers for the maintenance and integrity of the Company's page of the Managers' website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions. The work carried out by the auditor does not involve any consideration of these matters and, accordingly, the auditor accepts no responsibility for any changes that may have occurred to the Financial Statements since they were initially presented on the website. 74 Annual Report and Financial Statements 2006 --- 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 75 --- # Financial report The Financial Statements for the year to 30 April 2026 set out on pages 84 to 106 have been prepared in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. --- The Monks Investment Trust PLC # Independent auditor's report to the Members of The Monks Investment Trust PLC ## 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 ## Independence We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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. 77 --- Financial report - 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 of accounting. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company's ability to continue as a going concern. ## Overview of our audit approach | Key audit matters | - Risk of incorrect valuation or ownership of the investment portfolio. - Risk of incomplete or inaccurate revenue recognition. | | --- | --- | | Materiality | - Overall materiality of £25.18m which represents 1% of net asset value. | ## 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. 78 Annual Report and Financial Statements 2026 --- 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. | 79 --- Financial report | 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 SGRP, 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. 80 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 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. # Opinions on other matters prescribed by the Companies Act 2006 In our opinion the part of the directors' remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006. In our opinion, based on the work undertaken in the course of the audit: - the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the strategic report and directors' reports have been prepared in accordance with applicable legal requirements. # Matters on which we are required to report by exception In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements and the part of the Directors' Remuneration Report to be audited are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit 81 --- Financial report ## 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 or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. ## Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. ## 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. 82 Annual Report and Financial Statements 2006 --- The Monko 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 83 --- Financial report # Income statement 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 are prepared under guidance issued by the Association of Investment Companies. All revenue and capital items in this Statement derive from continuing operations. A Statement of Comprehensive Income is not required as the Company does not have any other comprehensive income and the net return on ordinary activities after taxation is both the profit and total comprehensive income for the year. The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements. 84 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # Balance sheet | | Notes | As at 30 April | | As at 30 April | | | --- | --- | --- | --- | --- | --- | | | | 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** (borrowings at book value) | 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 $^{1}$ The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements. 85 --- Financial report # Statement of changes in equity ## 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 after taxation | | | | | 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** | The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements. 86 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # Cash flow statement 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)** | | **(328,865)** | | **Decrease in cash and cash equivalents** | | | **(2,922)** | | **(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** | | | **16,421** | | **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). The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements. 87 --- Financial report # 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 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 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. 88 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC **b. Financial instruments** Financial assets and financial liabilities are recognised in the Company's Balance Sheet when it becomes a party to the contractual provisions of the instrument. **c. Significant accounting judgements and estimates** The preparation of the Financial Statements requires the use of judgements and estimates. These judgements and estimates affect the reported amounts of assets and liabilities at the reporting date. While estimates are based on best judgement using information and financial data available, the actual outcome may differ from these estimates. The key sources of estimation and uncertainty relate to the fair value of the unlisted investments. **Judgements** The Directors consider that the preparation of the Financial Statements involves the following key judgements: i. the determination of the functional currency of the Company as sterling (see rationale in 1(a) above); and ii. the fair valuation of the unlisted investments. The key judgements in the fair valuation process are: i. the Managers' determination of the appropriate application of the International Private Equity and Venture Capital Valuation ('IPEV') Guidelines 2025 to each unlisted investment; and ii. the Directors' consideration of whether each fair value is appropriate following detailed review and challenge. The judgement applied in the selection of the methodology used (see 1(d) below) for determining the fair value of each unlisted investment can have a significant impact upon the valuation. **Estimates** The key estimate in the Financial Statements is the determination of the fair value of the unlisted investments by the Managers for consideration by the Directors. This estimate is key as it significantly impacts the valuation of the unlisted investments at the Balance Sheet date. The fair valuation process involves estimation using subjective inputs that are unobservable (for which market data is unavailable). The main estimates involved in the selection of the valuation process inputs are: i. the selection of appropriate comparable companies in order to derive revenue multiples and meaningful relationships between enterprise value, revenue and earnings growth. Comparable companies are chosen on the basis of their business characteristics and growth patterns; ii. the selection of a revenue metric (either historical or forecast); iii. the application of an appropriate discount factor to reflect the reduced liquidity of unlisted companies versus their listed peers; iv. the estimation of the probability assigned to an exit being through an initial public offering ('IPO') or a company sale; v. the selection of an appropriate industry benchmark index to assist with the valuation validation or the application of valuation adjustments, particularly in the absence of established earnings or closely comparable peers; and vi. the calculation of valuation adjustments derived from milestone analysis (i.e. incorporating operational success against the plan/forecasts of the business into the valuation). Fair value estimates are cross-checked to alternative estimation methods where possible to improve the robustness of the estimates. As the valuation outcomes may differ from the fair value estimates a price sensitivity analysis is provided in Other price risk sensitivity in note 19 on pages 103 to 105 to illustrate the effect on the Financial Statements of an over or under estimation of fair values. The risk of an over or under estimation of fair values is greater when methodologies are applied using more subjective inputs. 89 --- Financial report # **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 investee company. Milestone analysis is used where appropriate to incorporate the operational progress of the investee company into the valuation. Additionally, the background to the transaction must be considered. As a result, various multiples-based techniques are employed to assess the valuations particularly in those companies with established revenues. Discounted cashflows are used where appropriate. An absence of relevant industry peers may preclude the application of the Industry Valuation Benchmarks technique and an absence of observable prices may preclude the Available Market Prices approach. All valuations are cross-checked for reasonableness by employing relevant alternative techniques. The private company investments are valued according to a three monthly cycle of measurement dates. The fair value of the private company investments will be reviewed before the next scheduled three monthly measurement date on the following occasions: - at the year end and half year end of the Company; and - where there is an indication of a change in fair value as defined in the IPEV guidelines (commonly referred to as 'trigger' events). # **e. Cash and cash equivalents** Cash equivalents comprise short-term highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. # **f. Income** i. Income from equity investments is brought into account on the date on which the investments are quoted ex-dividend or, where no ex-dividend date is quoted, when the Company's right to receive payment is established. Equity investment income includes distributions from Collective Investment Schemes, other than those that relate to equalisation which are treated as capital items. Special dividends are treated as revenue or capital items depending on the facts of each particular case. If scrip is taken in lieu of dividends in cash, the net amount of the cash dividend declared is credited to the revenue account. Any excess in the value of the shares received over the amount of the cash dividend foregone is recognised as capital. ii. Interest from fixed interest securities is recognised on an effective yield basis. iii. Unfranked investment income and overseas dividends include the taxes deducted at source. iv. Interest receivable on deposits is recognised on an accruals basis. 90 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC **g. Expenses** All expenses are accounted for on an accruals basis and are charged to the revenue account except where: (i) they relate to expenses incidental to the purchase or sale of investments (transaction costs) which are charged to capital. Transaction costs are detailed in note 9 on page 95; or (ii) they relate directly to the buy-back/issuance of shares, in which case they are added to the buy-back cost or deducted from the share issuance proceeds. **h. Borrowings and finance costs** Borrowings, which comprise interest bearing bank loans 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 which underlying timing differences can be deducted. **j. Dividends payable** Where relevant, interim dividends are recognised in the period in which they are paid. Final dividends are recognised in the period in which the dividends are approved by the Company's shareholders. **k. Foreign currencies** Transactions involving foreign currencies are converted at the rate ruling at the time of the transaction. Monetary assets and liabilities and fixed asset investment in foreign currencies are translated at the closing rates of exchange at the Balance Sheet date. Any gain or loss arising from a change in exchange rate subsequent to the date of the transaction is included as an exchange gain or loss in the Income Statement as capital or revenue as appropriate. **l. Share premium account** The balance classified as share premium represents: - the excess of the proceeds of issuance of new shares over the nominal value; and - the proceeds of sales of shares held in treasury in excess of the weighted average price paid by the Company to repurchase the shares. **m. Capital redemption reserve** The nominal value of ordinary share capital repurchased and cancelled is transferred out of the called-up share capital and into the capital redemption reserve. **n. Capital reserve** Gains and losses on realisation of investments, changes in the fair value of investments held and exchange differences of a capital nature are dealt with in this reserve. Purchases of the Company's own shares are also funded from this reserve. The sales proceeds of treasury shares reissued are treated as a realised profit up to the amount of the weighted average purchase price of those shares and transferred to the capital reserve. **o. Revenue reserve** The revenue profit or loss for the year is taken to or from this reserve. The revenue reserve may be distributed by way of a dividend. **p. Single segment reporting** The Company is engaged in a single segment of business, being that of an investment trust company, consequently no business segmental analysis is provided. 91 --- Financial report # 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** | **25,963** | | **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** | **25,963** | 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 in The Schiehallion Fund, a closed-ended investment company managed by Baillie Gifford & Co. The Company does not currently hold any other collective investment vehicles managed by Baillie Gifford & Co. Where the Company holds investments in open-ended collective investment vehicles managed by Baillie Gifford, such as OEICs, Monks' share of any fees charged within that vehicle will be related 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 | | Depository 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** | **1,955** | * 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 provide the resource to manage and run the programme. † Irrecoverable VAT on audit fees is included within general administrative expenses. 92 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 05 Finance costs of borrowings | | 2026 $'000 | 2025 $'000 | | --- | --- | --- | | Bank loans | 3,069 | 3,865 | | Loan notes | 4,780 | 4,881 | | | **7,649** | **8,548** | # 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. 93 --- Financial report # 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 | (10.06p) | (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, which reflects 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 Level 2 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. 94 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 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 by valuation 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** | **125,648** | **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 | 67,717 | 964,315 | 651,128 | | **Value of investments at end of year** | **2,609,602** | **125,648** | **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. 96 --- Financial report # 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) | | | **827,441** | **(18,384)** | # **Significant Holdings Disclosure Requirements – Companies Act 2006** The following is provided in accordance with the disclosure requirements of the Companies Act 2006 in relation to investments which amount to 20% or more of the nominal value of any class of shares in an undertaking. During the year the Company had a holding in class A shares of Silk Invest Private Equity Fund S.A. SICAR, compartment 'Silk Invest Africa Food Fund' which is incorporated in Luxembourg. At 30 April Monks holding was: | | 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 a reasonable 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. 96 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC ## 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** | **174,103** | ### Unsecured loan notes The unsecured loan notes are stated at the cumulative amount of net proceeds after issue expenses. The cumulative effect is to reduce the carrying amount of borrowings by £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** | **253,171,480** | **12,659** | **253,171,480** | **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 £1,320,000 were bought back at a total cost of £321,104,000 and held in treasury). No shares 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 reserve. 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 26 June 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. 97 --- Financial report # 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. 98 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 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** | **1,998.7p** | **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 2008. 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 fees during the year and the balances outstanding at the year end are shown in notes 3 and 11 respectively. The Company is part of a marketing programme which includes all the investment trusts managed by the Managers, details of which are shown in note 4. 99 --- Financial report ## 19 Financial instruments As an investment trust, the Company invests in equities and makes other investments so as to secure its investment objective of capital growth. The Company borrows money when the Board and investment managers have sufficient conviction that the assets funded by borrowed monies will generate a return in excess of the cost of borrowing. In pursuing its investment objective, the Company is exposed to a variety of risks that cause short term variation in the Company's net assets and could result in either a reduction in the Company's net assets or a reduction in the profits available for dividend. These risks are categorised here as market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk. The Board monitors closely the Company's exposures to these risks but does so in order to reduce the likelihood of a permanent reduction in the Company's net assets rather than to minimise the short term volatility. The risk management policies and procedures outlined in this note have not changed substantially from the previous accounting period. ### Market risk The fair value or future cash flows of a financial instrument or other investment held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements – currency risk, interest rate risk and other price risk. The Board reviews and agrees policies for managing these risks and the Company's investment managers both assess the exposure to market risk when making individual investment decisions and monitor the overall level of market risk across the investment portfolio on an ongoing basis. Details of the Company's investment portfolio are shown in note 9. ### Currency risk Certain of the Company's assets, liabilities and income are denominated in currencies other than sterling (the Company's functional currency and that in which it reports its results). Consequently, movements in exchange rates may affect the sterling value of those items. The Managers monitor the Company's exposure to foreign currencies and report to the Board on a regular basis. The Managers assess the risk to the Company of the foreign currency exposure by considering the effect on the Company's net asset value and income of a movement in the rates of exchange to which the Company's assets, liabilities, income and expenses are exposed. However, the currency in which a company's share price is quoted is not necessarily the one in which it earns its profits. The movement in exchange rates on overseas earnings may have a more significant impact upon a company's valuation than a simple translation of the currency in which the share price of the company is quoted. Foreign currency borrowings can limit the Company's exposure to anticipated future changes in exchange rates which might otherwise adversely affect the value of the portfolio of investments. 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 and creditors * £'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) | | | **2,738,550** | **18,421** | **(222,906)** | **(13,924)** | **2,517,141** | * Includes non-monetary assets of £144,000. 100 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 19 Financial instruments (continued) # Currency risk (continued) | At 30 April 2025 | Investments $'000 | Cash and deposits $'000 | Loans and loan notes $'000 | Other debtors and creditors $'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 | | | **132,016** | **116,735** | # 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. 101 --- Financial report # 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** | **223,951** | # **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. 102 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 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 8B). 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* | | | | | | Sensitivity to changes in significant unobservable inputs | | --- | --- | --- | --- | --- | --- | --- | --- | | | Fair value of Investments £'000 | Key unobservable inputs | Other unobservable inputs | Range | Weighted average range | Sensitivity % | | | 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^{1} | 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^{2,3} | 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. 1 See explanation for other unobservable inputs on pages 104 and 105 (sections 'a' to 'g' as relevant). 2 Enterprise value (EV) divided by the last twelve months revenue (LTM). 3 See explanation for the selection of comparable companies on page 105 section 'c'. 4 A 'sum of the parts' valuation approach is used for holding company investments with several underlying businesses. Each individual business is valued using the most appropriate basis depending on the specific circumstances and the overall valuation is the summation of these separate valuations. 5 A 'l' is 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. 103 --- Financial report # 19 Financial instruments (continued) # Other price risk sensitivity (continued) | As at 30 April 2025 | | Significant unobservable inputs* | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Valuation Technique | Fair value of investments 8'000 | 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 is valued using the most appropriate basis depending on the specific circumstances and the overall valuation is the summation of these separate valuations. ** The table above provides the range of values for the key unobservable inputs. A blend of valuation techniques is used for some holdings (Art 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 the production of the inputs are described in note 1(c) on page 89. 104 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 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 or share price movements derived will vary depending on the companies selected and the industries they operate in. # **d. Estimated sustainable earnings** The selection of sustainable revenue or earnings will depend on whether the company is sustainably profitable or not, and where it is not then revenues will be used in the valuation. The valuation approach will typically assess companies based on the last twelve months of revenue or earnings, as they are the most recent available and therefore viewed as the most reliable. Where a company has reliably forecasted earnings previously or there is a change in circumstance at the business which will impact earnings going forward, then forward estimated revenue or earnings may be used instead. # **e. Application of illiquidity discount** The application of an illiquidity discount will be applied either through the calibration of a valuation against the most recent transaction, or by application of a specific discount. The discount applied where a calibration is not appropriate is typically 10%, reflecting that the majority of the investments held are substantial companies with some secondary market activity. # **f. Selection of appropriate benchmarks** The selection of appropriate benchmarks is assessed individually for each investment. The industry and geography of each company are key inputs to the benchmark selection, with either one or two key indices or benchmarks being used for comparison. # **g. Valuation premium and discount** The application of valuation premiums and discounts are applied through the calibration of a valuation to the most recent transaction, determining how each investment is pricing against its selection of comparable companies. Where a calibrated approach is not appropriate a liquidity discount is applied, typically at 10%, reflecting that most of the investments held are substantial companies with some secondary market activity. # **h. Execution risk** An execution risk discount is applied to all investments where an arm's-length transaction is due to take place, however, hasn't closed prior to the reporting period end. The discount typically applied is 10%, acknowledging that the finer details of the round may well still be negotiated which could impact the expected issue price. In valuing in line with an expected transaction the arm's-length nature of the deal has been assessed and legal documentation received. # **Liquidity risk** This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk is significantly mitigated as the majority of the Company's assets are investments in listed securities that are readily realisable. The Board also sets parameters for the degree to which the Company's net assets are invested in listed equities. The Company has the power to take out borrowings, which give it access to additional funding when required. The Company's current liabilities and borrowing facilities are detailed in notes 11 and 12 and the maturity profile of its borrowings is set out on 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 and then compared to the prospective investment return of the security in question; 106 --- Financial report ## 19 Financial instruments (continued) ### Credit risk (continued) - the depository is liable for the loss of financial instruments held in custody. The depository will ensure that any delegate segregates the assets of the Company. The depository 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 depository's internal control reports and reporting their findings to the Board; - investment transactions are carried out with a large number of brokers whose creditworthiness is reviewed by the Managers. Transactions are ordinarily done on a delivery versus payment basis whereby the Company's custodian bank ensures that the counterparty to any transaction entered into by the Company has delivered on its obligations before any transfer of cash or securities away from the Company is completed; and - cash is only held at banks that have been identified by the Managers as reputable and of high credit quality. Credit quality of our banking provider is publicly available. ### 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 | | | **20,669** | **25,533** | 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 Fair value $'000 | 2026 Book value $'000 | 2026 Fair value $'000 | 2025 Fair 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** | **165,578** | **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. 106 Annual Report and Financial Statements 2026 --- # Shareholder information --- Shareholder information # Notice of Annual General Meeting ![img-47.jpeg](img-47.jpeg) ● One Moorgate Place City of London London EC2R 6EA Baillie Gifford™ The Annual General Meeting of the Company will be held at One Moorgate Place, City of London EC2R 6EA 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 how to attend the meeting, please call us on 0800 917 2113. Baillie Gifford may record your call. 108 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC 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 prior to the expiry of this authority make an offer or enter into an agreement which would or might require Securities to be allotted or granted after the expiry of such authority and the Directors shall be entitled to allot or grant Securities in pursuance of such an offer or agreement as if such authority had not expired. To consider and, if thought fit, to pass resolutions 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. 109 --- Shareholder information 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 110 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # **Notes** 1. 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. 2. 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 **epoxyappointment.com** no later than two days (excluding non-working days) before the time of the meeting or any adjourned meeting. 3. 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. 4. 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. 5. 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. 6. 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. 7. 07. The return of a completed proxy form or other instrument of proxy will not prevent you attending the AGM and voting in person if you wish. 8. 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. 111 --- Shareholder information 09. Any person to whom this notice is sent who is a person nominated under section 146 of the Companies Act 2006 to enjoy information rights (a 'Nominated Person') may, under an agreement between him/her and the shareholder by whom he/she was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for the Annual General Meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may, under any such agreement, have a right to give instructions to the shareholder as to the exercise of voting rights. 10. The statement of the rights of shareholders in relation to the appointment of proxies in notes 1 and 2 above does not apply to Nominated Persons. The rights described in those notes can only be exercised by shareholders of the Company. 11. Under section 338 of the Companies Act 2006, members meeting the qualification criteria set out in note 14 below may, subject to certain conditions, require the Company to circulate to members notice of a resolution which may properly be moved and is intended to be moved at that meeting. The conditions are that: (a) the resolution must not, if passed, be ineffective (whether by reason of inconsistency with any enactment or the Company's constitution or otherwise); (b) the resolution must not be defamatory of any person, frivolous or vexatious; and (c) the request: (i) may be in hard copy form or in electronic form; (ii) must identify the resolution of which notice is to be given by either setting out the resolution in full or, if supporting a resolution sent by another member, clearly identifying the resolution which is being supported; (iii) must be authenticated by the person or persons making it; and (iv) must be received by the Company not later than 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 must be made by: (a) members representing at least 5% of the total voting rights of all the members who have a right to vote on the resolution to which the requests relate; or (b) at least 100 members who have a right to vote on the resolution to which the requests relate and hold shares in the Company on which there has been paid up an average sum, per member, of at least £100. Such requests should be sent to the Company at 3 Haymarket Square, Edinburgh, EH3 8RY. Electronic requests permitted under section 338 (see note 11) should be sent to enquiries@bailliegifford.com. 112 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC 15. Information regarding the Annual General Meeting, including information required by section 311A of the Companies Act 2006, is available from the Company's page of the Managers' website at monksinvestmenttrust.co.uk. 16. Members have the right to ask questions at the meeting in accordance with section 319A of the Companies Act 2006. 17. Any corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all of its powers as a member provided that they do not do so in relation to the same shares. 18. As at 26 June 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 vote each. Therefore, the total voting rights in the Company as at 26 June 2026 were 154,255,520 votes. Voting on the resolutions will be conducted by way of poll. This will ensure an exact and definitive result. 19. Any person holding 3% or more of the total voting rights of the Company who appoints a person other than the Chair of the meeting as his/her proxy will need to ensure that both he/she and his/her proxy complies with their respective disclosure obligations under the UK Disclosure and Transparency Rules. 20. No Director has a contract of service with the Company. 113 --- Shareholder information # Further shareholder information ## Company history Monks was incorporated in 1929 and was one of three trusts founded in the late 1920s by a group of investors headed by Sir Auckland (later Lord) Geddes. The other two trusts were The Friars Investment Trust and The Abbots Investment Trust. The company secretary's office was at 13/14 Austin Friars in the City of London, hence the names. In 1931, Baillie Gifford & Co took over the management of all three trusts and Monks became a founder member of the Association of Investment Trusts in 1932. In 1968, under a Scheme of Arrangement, the three trusts were merged with Monks acquiring the ordinary share capital of Friars and Abbots. ## Monks is an investment trust. Investment trusts offer investors the following: - participation in a diversified portfolio of shares; - constant supervision by experienced professional managers; and - the Company is free from capital gains tax on capital profits realised within its portfolio although investors are still liable for capital gains tax on profits when selling their investment. ## How to invest The Company's shares are traded on the London Stock Exchange. They can be bought by placing an order with a stockbroker or by asking a professional adviser to do so. If you are interested in investing directly in Monks, you can do so online. There are a number of companies offering real time online dealing services – find out more by visiting monksinvestmenttrust.co.uk. ## Sources of further information on the Company The share price is quoted daily in the Financial Times and can also be found on other financial websites. Company factsheets are also available on the Company's website and are updated monthly. These are available from Baillie Gifford on request. ## Monks share identifiers ISIN GB0030517261 Sedol 3051726 Ticker MNKS Legal Entity Identifier 213800MRIJTUKG5AF64 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. 114 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC ## 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 epoxyappointment.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 | 1,166,089 | 0.7 | 1,222,353 | 0.6 | | | **187,453,530** | **100.0** | **187,622,886** | **100.0** | 115 --- Shareholder information ## Automatic exchange of information In order to fulfil its obligations under UK tax legislation relating to the automatic exchange of information, the Company is required to collect and report certain information about certain shareholders. The legislation requires investment trust companies to provide personal information to HMRC on certain investors who purchase shares in investment trusts. Accordingly, the Company will have to provide information annually to the local tax authority on the tax residencies of a number of non-UK based certificated shareholders and corporate entities. Shareholders, excluding those whose shares are held in CREST, who come on to the share register will be sent a certification form for the purposes of collecting this information. For further information, please see HMRC's Quick Guide: Automatic Exchange of Information – information for account holders **gov.uk/government/publications/exchange-of-information-account-holders**. ## Alternative Investment Fund Managers ('AIFM') Regulations In accordance with the AIFM Regulations, information in relation to the Company's leverage and the remuneration of the Company's AIFM, Baillie Gifford & Co Limited, is required to be made available to investors. In accordance with the Regulations, the AIFM remuneration policy is available at bailliegifford.com or on request (see contact details on page 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 No third party data provider ('Provider') makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data. No Provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the index data included in this document, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom. No Provider has any obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate. Without limiting the foregoing, no Provider shall have any liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgements, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein. ### FTSE Index Data London Stock Exchange Group plc and its group undertakings (collectively, the 'LSE Group'). © LSE Group 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 by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. 110 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # 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. 117 --- Shareholder information # Communicating with shareholders ![img-48.jpeg](img-48.jpeg) Trust magazine ## 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. ![img-49.jpeg](img-49.jpeg) Monks Investment Trust web page at monksinvestmenttrust.co.uk ## 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. 118 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC # Insights ![img-50.jpeg](img-50.jpeg) ## 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. ![img-51.jpeg](img-51.jpeg) ## Monks' musings: bottlenecks and abundance Returns are being driven by real profit growth, not rising valuations or market mood. ![img-52.jpeg](img-52.jpeg) ## The big squeeze: bottlenecks as advantage When demand outstrips supply, companies that sit astride the pinch point can gain an enduring edge. ![img-53.jpeg](img-53.jpeg) ![img-54.jpeg](img-54.jpeg) ![img-55.jpeg](img-55.jpeg) 19 --- Shareholder information # Glossary of terms and Alternative Performance Measures ('APM') An Alternative Performance Measure is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. ## Total assets This is the Company's definition of adjusted total assets, being the total 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. 120 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC ## 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)** | **2,517,074** | **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%)** | 121 --- Shareholder information ## 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%** | **30.6%** | **(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 sum 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. 122 Annual Report and Financial Statements 2026 --- The Monks Investment Trust PLC | | | 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%** | **8.6%** | | **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. 123 --- Shareholder information ![img-56.jpeg](img-56.jpeg) 124 Annual Report and Financial Statements 2026 ![img-57.jpeg](img-57.jpeg) --- The Monks Investment Trust PLC # Company information Directors Chairman: RS Grewal DC Ballance CM Boyle R Curling SL Parrinder-Johnson BJ Richards Professor Sir Nigel Shadbolt Registered office Baillie Gifford & Co 3 St Helen's Place London EC3A 6AB Registrar Computershare Investor Services PLC The Pavilions Bridgewater 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 Independent auditor Ernst & Young LLP Atria One 144 Morrison Street Edinburgh EH3 8EX Depository 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 Company details monksinvestmenttrust.co.uk Company Registration No. 00236964 ISIN: GB0030517261 Sedol: 3051726 Ticker: MNKS Legal Entity Identifier: 213800MRILITUKGSAF64 Further information Baillie Gifford Client Relations Team 3 Haymarket Square Edinburgh EH3 8RY T: +44 (0)800 917 2113 enquiries@bailliegifford.com 125 --- # Bold and balanced growth investing monksinvestmenttrust.co.uk 3 Haymarket Square, Edinburgh EH3 8RY Telephone +44 (0)131 275 2000 [LOGO]