Fund Research

Monks Investment Trust

Last update 24 July 2019

This is independent research. The analyst who has prepared this research is not aware of Kepler Partners LLP having a relationship with the company covered in this research report and/or a conflict of interest which is likely to impair the objectivity of the research and this report should accordingly be viewed as independent.

Investment objective

The objective of the company is to invest globally to achieve capital growth. This takes priority over income and dividends. The company seeks to meet it objective by investing principally in a portfolio of global quoted equities

As at:

19/07/2019

Group/Investment

Monks Ord

Ticker

MNKS

Management Company

Bailiie Gifford & Co Limited.

Manager Name 

Charles Plowden; Malcolm MacColl; Spencer Adair;

Association of Investment Companies (AIC) Sector

Global

12 Mo Yield

0.2%

Dividend Distribution Frequency

Annually


Latest Market Capitalisation

£2,050,848,059

Latest New Gearing (Cum Fair)

7%

Latest Ongoing Charge Ex Perf Fee

0.50%

Turnover Ratio

15.8%

Shares Outstanding

218,873,859

(Discount)/Premium (Cum Fair)

3.5%

Daily Closing Price

937p

Monks Investment Trust (MNKS) aims to deliver long-term capital growth through a well-diversified, actively managed, global equity portfolio.

Rigorous, bottom-up analysis is at the heart of the investment process, with the managers, Charles Plowden, Spencer Adair and Malcolm MacColl, looking to identify growth companies with above-average earnings growth. The team takes a long-term view on their holdings as this ensures that the fundamental attributes of a company are given ample time to drive returns. The investment company has an annual turnover of just 17%, according to the May factsheet.

Diversification is a key characteristic of the trust, and the managers split holdings into four categories depending on the anticipated growth. Holdings are also divided into three broad holding sizes that allow the managers to embrace the potential for asymmetry of returns through positions in stocks with higher risk-return characteristics.

Since the new managers took over the portfolio in March 2015, the trust has performed strongly relative to both its peers and the benchmark FTSE World. Over the past four years, the trust has delivered NAV total returns of 91.4%. In comparison, the FTSE World, the AIC Global sector and the IA Global sector have delivered 70.1%, 75.3% and 56.6%, respectively. With that said, it has come at the expensive of volatility and, over the same period, the fifth-highest standard deviation, at 17.2%, in the 16-strong peer group. Returns have been even more volatile over the short term. Over the past year, the trust has the second-highest beta, at 1.21, in the AIC Global sector and the third-highest standard deviation, at 20.37. The final quarter of 2018 saw the trust being hit particularly hard, falling by 13.7% in NAV total returns. In comparison, the FTSE World index lost 10.9%. However, there has since been a rally and from the start of the year the trust has produced NAV total returns of 26.5%, relative to 20.1%, 18.8% and 19.8% returns for the benchmark, AIC peer group and IA peer group, respectively.

At present Monks is trading at premium of 4% relative to the sector-weighted average discount of 0.2%.

William Sobczak

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Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments.

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Fund History: Monks Investment Trust

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