RNS Announcement

The Monks Investment Trust PLC (MNKS)

Legal Entity Identifier: 213800MRI1JTUKG5AF64

Results for the year to 30 April 2026

NAV (borrowings at fair value)*	29.3%
NAV (borrowings at par)*	29.4%
Share Price*	35.6%
Index†	31.0%

Source: LSEG / Baillie Gifford. All figures are total return^*. See disclaimer at the end of this announcement.

*   Alternative Performance Measure - see Glossary of terms and Alternative Performance Measures at the end of this announcement.

^†    Comparative index: FTSE World Index (in sterling terms).

The following is extracted from the Annual Report and Financial Statements of the Company for the year ended 30 April 2026 which was approved by the Board on 30 June 2026. All page references below refer to the Annual Report and Financial Statements which will be made available on the Company's website.

Chairman's Statement

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.

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.

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.

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 [email protected] 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

 

Past performance is not a guide to future performance. Total return information is sourced from Baillie Gifford/LSEG. See disclaimer on page 116.

For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.

Managers' review

When we wrote our last annual letter at the start of April 2025, we were in the midst of a market shock. President Trump had just announced his 'Liberation Day' tariffs, and markets were fearful about the implications for global trade. Since then, markets have bounced back strongly, with the FTSE World Index delivering a 31.0% return. This stellar performance reflects both strong profit growth and relief that the worst-case scenarios did not materialise.

This recovery reinforces that our approach then was the right one: to step back and assess the long-term impacts, build portfolio resilience rather than flee companies at risk, and use fear-driven sell-offs as opportunities. The market mood today is less melancholy than a year ago. Yet concerns remain just below the surface, particularly the potential implications of the Iran War and the advancement and adoption of AI capabilities.

These events matter for the companies we own. But, as with Trump's tariffs, the market's reactions are often more binary and extreme than the situation justifies. This inefficiency is uncomfortable, but it creates opportunities for us to add value, both outside the areas of market trepidation and within them. To capture them, we are leaning even further into the same approach: to assess, improve the portfolio, and capitalise on it. We have repositioned the portfolio to outperform in a changing world. We explain why and how in more detail below.

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.

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.

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.

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

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 and 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 120 to 124.

•         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.

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.

Ten largest investments

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.

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.

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.

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.

Portfolio positioning

as at 30 April 2026*^†

Although the Managers' approach to stock picking is resolutely 'bottom-up' in nature it is essential to understand the risks of each investment and, in turn, where there may be concentrations of exposures. The charts below outline some key exposures of the portfolio at the Company's year end.

	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

 

	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

*   Expressed as a percentage of total assets.

†   For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.

Past performance is not a guide to future performance.

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 valuer's (S&P Global) most recent valuation report where appropriate. When market volatility is particularly pronounced the team do these checks daily. Any ad hoc change to the fair valuation of any holding is implemented swiftly and reflected in the next published net asset value.

In addition to the 4.6% of the portfolio holdings in direct private company investments, 5.4% of the portfolio is in The Schiehallion Fund, a closed ended investment company investing predominantly in private companies, which is valued at its publicly available market price.

 

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 U	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 U	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 U	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
Thermo Fisher Scientific	Scientific instruments, consumables and chemicals	25,457	0.9
Keyence †	Manufacturer of sensors	25,314	0.9
Comfort Systems USA	HVAC systems and solutions	24,860	0.9
Richemont	Luxury goods	24,298	0.9
Moody's	Credit rating agency	23,904	0.9
Applovin	Connects businesses and developers to audiences in-app, on mobile and across streaming TV	23,644	0.9
Stella-Jones	Industrial pressure treated wood products manufacturer	23,574	0.9
Autozone	Automotive replacement parts and accessories	23,477	0.9
CBRE Group	Commercial real estate	23,416	0.9
Eaton	Industrial engineering products	22,917	0.8
Epiroc	Construction and mining machinery	22,808	0.8
Philip Morris †	Global tobacco company transitioning to smoke-free nicotine products	22,436	0.8
Markel	Markets and underwrites speciality insurance products	21,934	0.8
Chugai Pharmaceutical †	Innovative Japanese pharmaceutical company	21,310	0.8
Dollar General †	Operates a chain of discount retail stores	21,155	0.8
MercadoLibre	Latin American ecommerce platform	20,990	0.8
Poste Italiane †	Italian delivery and financial services leader	20,614	0.8
Nu Holdings	Latin American digital banking and financial services	20,079	0.7
EQT Corp †	US producer of natural gas	19,831	0.7
Advanced Drainage Systems	Manufacturer of pipes and drainage systems	19,624	0.7
QXO †	Building materials distributor	19,367	0.7
Disco Corporation	Specialist cutting for semiconductors	19,255	0.7
Novo Nordisk	Diabetes and weight loss treatment	18,916	0.7
Adyen	Digital payments	18,842	0.7
United Overseas Bank †	Southeast Asian Bank	18,464	0.7
Brookfield	Asset management company.	18,278	0.7
Midea Group 'A' †	Chinese HVAC and white goods company	18,038	0.7
Credicorp †	Peruvian banking, payments and financial services	17,839	0.7
SEB †	Swedish commercial bank	17,810	0.6
Nexans	Manufacturer of cables and electrical parts	17,595	0.6
Edenred	Prepaid services company	17,249	0.6
Uber Technologies	Multinational transportation company	17,220	0.6
Samsara †	Provides technology to track and manage vehicles, equipment, and operations	16,925	0.6
Games Workshop †	Manufacturer and retailer of table top wargames and miniature figurines	16,599	0.6
Brunswick Corp	Recreational boats, marine engines, marine parts and accessories	16,318	0.6
Freeport-McMoran Copper †	Copper and gold miner	16,187	0.6
Medpace †	Runs and manages clinical trials for biotech and pharmaceutical companies	15,233	0.6
Kweichow Moutai	Spirits manufacturer	14,958	0.5
Tidewater †	Provides offshore service vessels for the energy industry	14,846	0.5
Kokusai Electric	Semiconductor manufacturer	14,581	0.5
AeroVironment	Reconnaissance and defence drones	14,544	0.5
Mediatek †	Smartphone and AI chip designer	14,488	0.5
Paycom Software	Data analytical software products to manage the employment lifecycle	14,403	0.5
Auto Trader †	The UK's leading used car website	13,904	0.5
Alnylam Pharmaceuticals	RNA interference based biotechnology	13,663	0.5
CoStar	Commercial property portal	13,495	0.5
Dino Polska †	Polish discount supermarket chain	13,273	0.5
Nippon Paint	Japanese paint manufacturer	13,065	0.5
Medline †	Medical supplies distributor	12,395	0.5
Datadog	Cloud based IT system monitoring application	11,864	0.4
Dutch Bros	Coffee and drinks retailer	11,707	0.4
Cosmos Pharmaceutical	Drug store chain	11,613	0.4
Coinbase †	Cryptocurrency trading and investment platform	11,263	0.4
Sea Limited	Online and digital gaming	10,922	0.4
Spotify	Online music streaming service	10,786	0.4
Cloudflare U	Cloud based IT services	9,822	0.4
Epic Games	Gaming software developer	8,228	0.3
Auto1 †	Online platform for buying and selling used cars in Europe	7,371	0.3
WillScot Holdings	Specialises in bespoke building space solutions	7,155	0.3
Ant International U	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 U	Africa focused private equity fund	2,551	0.1
Illumina CVR U	Gene sequencing business	53	<0.1
Abiomed CVR	Medical implant manufacturer	-	-
Sberbank of Russia S	Russian commercial bank	-	-
Total investments		2,735,550	99.8
Net liquid assets*		4,496	0.2
Total assets		2,740,046	100.0
Borrowings		(222,905)	(8.1)
Shareholders' funds		2,517,141	91.9

 

	Listed equities %	Schiehallion Fund # %	Unlisted              securities ‡ %	Net liquid assets * %	Total assets * %
30 April 2026	89.8	5.4	4.6	0.2	100.0
30 April 2025	93.7	2.7	3.1	0.5	100.0

 

*   For a definition of terms used see Glossary of terms and Alternative Performance Measures on pages 120 to 124.

^U    Denotes unlisted/private company investment.

^S    Denotes suspended investment.

^†    New purchase during the period.
Complete sales during the period were: AIA, Arthur J. Gallagher, ASM International, Atlas Copco, Bellway, BHP, Block, Builders FirstSource, Coupang, CyberAgent, Entegris, Floor & Decor Holdings, FTAI Aviation, Genmab, ICICI Prudential Life Insurance, Li Auto, LVMH, Mobileye, Neogen Corp, Olympus, PDD Holdings, Prosus, Rakuten, Reliance Industries, S&P Global, Salesforce.com, Sartorius Stedim Biotech, SMC, Soitec, Topicus.com, The Trade Desk, UnitedHealth, Walt Disney, YETI Holdings.

^#    The Schiehallion Fund is managed by Baillie Gifford. The Company's holding in The Schiehallion Fund is excluded from its assets when calculating the management fee. See note 3 on page 92.

^‡    Includes holdings in preference shares, ordinary shares and contingent value rights (CVR).

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.

Current assessment of risk Rating: Moderate Change: Increasing 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.

 

Financial risk	What is the risk? The Company's assets consist mainly of listed securities and its principal and emerging financial risks are therefore market related and include market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk. An explanation of those risks and how they are managed is contained in note 19 to the Financial Statements on pages 103 to 106.	How is it managed? In order to oversee this risk, the Board considers at each meeting various metrics including the composition and diversification of the portfolio by geography, industry, growth category and holding size along with sales and purchases of investments. Individual investments are discussed with the portfolio managers together with their general views on the various investment markets and sectors. A strategy meeting is held annually. The Board has, in particular, considered the impact of heightened market volatility owing to macroeconomic and geopolitical concerns. The value of the Company's investment portfolio would be affected by any impact, positively or negatively, on sterling but such impact would be partially offset by the effect of exchange rate movements on the Company's euro and yen denominated borrowings.		Current assessment of risk Rating: High Change: Stable 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.		Current assessment of risk Rating: Moderate              Change: Stable 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.		Current assessment of risk Rating: High Change: Increasing 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.
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.		Current assessment of risk Rating: Moderate Change: Stable 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.		Current assessment of risk Rating: Low Change: Stable 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.
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.		Current assessment of risk Rating: Low    Change: Stable This risk is considered to be low and stable - the Board continues to receive assurance that control procedures are operating effectively.
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 page 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.		Current assessment of risk Rating: Low Change: Stable 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.		Current assessment of risk Rating: High Change: Stable 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.

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.

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.
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).

 

Stakeholder	Why we engage	How we engage and what we do
Brokers	The Company's brokers provide an interface between the Company's Board and its institutional shareholders.	The Company's brokers regularly attend Board meetings, and provide reports to those meetings, in order to keep the Board apprised of shareholder and wider market sentiment regarding the Company. They also arrange forums for shareholders to meet the Chairman, or other Directors, outwith the normal general meeting cycle.
Registrars	The Company's registrars provide an interface with those shareholders who hold the Company's shares directly.	The Company Secretaries liaise with the registrars to ensure the frequency and accuracy of communications to shareholders is appropriate, and monitor shareholder correspondence to ensure that the level of service provided by the registrars is acceptable. The Manager's risk function reviews the registrars' internal controls report and reports on the outcome of this review to the Audit Committee.
Auditor	The Company's auditor has a responsibility to provide an opinion on whether the Company's financial statements as a whole are free from material misstatement, as set out in more detail in the Auditor's Report to the Members on pages 77 to 83.	The Company's auditor meets with the Audit Committee, in the absence of the Managers where deemed necessary, and the Managers undertake to provide all information requested by the auditor in connection with the Company's annual audit promptly and to ensure that it is complete and accurate in all respects.
Depositary and custodian	The depositary and custodian are responsible for the safekeeping of the Company's financial instruments, as set out in more detail on page 55.	The depositary provides the Audit Committee with a report on its monitoring activities. The Board and Managers seek to engage with the depositary and custodian in a collaborative and collegiate manner, encouraging open and constructive discussion and debate, while also ensuring that appropriate and regular challenge is brought and evaluation conducted. This approach aims to enhance service levels and strengthen relationships with the Company's providers, with a view to ensuring the interests of the Company's shareholders are best served by keeping cost levels proportionate and competitive, and by maintaining the highest standards of business conduct.
Lenders	Lenders such as holders of debt instruments (debentures, bonds and private placement loan notes) and banks providing fixed or revolving credit facilities provide the Company's gearing and have an interest 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.
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 0.9p, 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.

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.

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

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	6	-	627,441	627,441	-	(18,354)	(18,354)
Currency gains/(losses)		-	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		(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		(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		(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	4	2.31p	366.24p	368.55p	1.75p	(10.08p)	(8.33p)
Note: Dividends per share paid and payable in respect of the year	5	0.9p			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.

Balance sheet

		As at 30 April		As at 30 April
	Notes	2026 £'000	2026 £'000	2025 £'000	2025 £'000
Fixed assets
Investments held at fair value through profit or loss	6		2,735,550		2,528,471
Current assets
Debtors		2,538		3,917
Cash and cash equivalents	8	18,421		21,606
		20,959		25,523
Creditors
Amounts falling due within one year	7	(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	7	(172,905)		(173,415)
Provision for tax liability	7	-		(748)
			(172,905)		(174,163)
Net assets			2,517,141		2,318,906
Capital and reserves
Share capital	9		12,659		12,659
Share premium account			433,714		433,714
Capital redemption reserve			8,700		8,700
Capital reserve			1,986,420		1,791,234
Revenue reserve			75,648		72,599
Shareholders' funds			2,517,141		2,318,906
Shareholders' funds per ordinary share (borrowings at book value)			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

*   The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.

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	9	-	-	-	(432,580)	-	(432,580)
Dividends paid during the year	5	-	-	-		(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	9	-	-	-	(321,104)	-	(321,104)
Dividends paid during the year	5	-	-	-	-	(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.

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	5	(909)		(4,372)
Ordinary shares bought back and stamp duty thereon	9	(430,133)		(324,293)
Borrowings drawn down		50,000		50,000
Borrowings repaid		(50,000)		(50,000)
Net cash outflow from financing activities			(431,042)		(328,665)
Decrease in cash and cash equivalents	8		(2,912)		(15,908)
Exchange movements			(273)		(1,108)
Cash and cash equivalents at 1 May			21,606		38,622
Cash and cash equivalents at 30 April			18,421		21,606

*   Cash from operations includes dividends received of £25,052,000 (2025 - £24,140,000) and interest received of £358,000 (2025 - £1,257,000).

The accompanying notes on pages 88 to 106 are an integral part of the Financial Statements.

Notes to the Financial Statements

1.       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.

2.       Income

		2026 £'000	2025 £'000
	Income from investments
	UK dividends	1,878	1,175
	Overseas dividends	23,306	23,521
		25,184	24,696
	Other income
	Deposit interest	358	1,257
	Miscellaneous income	33	-
	Total income	25,575	25,953
	Total income comprises:
	Dividends from financial assets classified as at fair value through profit or loss	25,184	24,696
	Interest from financial assets not at fair value through profit or loss	391	1,257
		25,575	25,953

          Special dividend entitlements arising in the year amounted to £1,055,000 (2025 - £459,000).

3.       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 rebated to the Company. All debt drawn down during the periods under review is intended for investment purposes.

4.       Net return per ordinary share

		2026 Revenue	2026 Capital	2026 Total	2025 Revenue	2025 Capital	2025 Total
	Net return after taxation	2.31p	366.24p	368.55p	1.75p	(10.08p)	(8.33p)

          Revenue return per ordinary share is based on the net revenue return on ordinary activities after taxation of £3,958,000 (2025 - £3,516,000) and on 171,406,226 (2025 - 201,138,932) ordinary shares, being the weighted average number of ordinary shares in issue during the year.

          Capital return per ordinary share is based on the net capital gain for the financial year of £627,766,000 (2025 - loss of £20,271,000) and on 171,406,226 (2025 - 201,138,932) ordinary shares, being the weighted average number of ordinary shares in issue during the year.

          There are no dilutive or potentially dilutive shares in issue.

5.       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

6.       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.

          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	125,948	2,735,550	2,528,471
	Cost of investments at end of year	1,713,004	58,231	1,771,235	1,877,343
	Investment holding gains at end of year	896,598	67,717	964,315	651,128
	Value of investments at end of year	2,609,602	125,948	2,735,550	2,528,471

*   Includes holdings in ordinary shares, preference shares and contingent value rights.

          The Company received proceeds of £1,122,580,000 (2025 - £979,184,000) from investments sold during the year. The book cost of these investments when they were purchased was £808,327,000 (2025 - £644,704,000). These investments have been revalued over time and, until they were sold, any unrealised gains/losses were included in the fair value of the investments. Transaction costs of £598,000 (2025 - £433,000) and £509,000 (2025 - £407,000) were suffered on purchases and sales respectively.

		2026 £'000	2025 £'000
	Net gains/(losses) on investments
	Realised gains/(losses) on sales	314,254	334,480
	Changes in investment holding gains	313,187	(352,834)
		627,441	(18,354)

          Significant Holdings Disclosure Requirements - Companies Act 2006

          The following is provided in accordance with the disclosure requirements of the Companies Act 2006 in relation to investments which amount to 20% or more of the nominal value of any class of shares in an undertaking.

          During the year the Company had a holding in class A shares of Silk Invest Private Equity Fund S.A. SICAR, compartment '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

7.       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.

          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).

		Repayment date	Nominal rate	Effective rate	2026 £'000	2025 £'000
	£60 million 1.86% notes 2054	7/8/2054	1.86%	1.86%	59,911	59,910
	£40 million 1.77% notes 2045	7/8/2045	1.77%	1.77%	39,962	39,958
	¥2,500 million 2.17% notes 2037	12/12/2037	2.17%	2.17%	11,740	13,122
	€18 million 4.55% notes 2035	12/12/2035	4.55%	4.55%	15,539	15,319
	€35 million 4.29% notes 2033	12/12/2033	4.29%	4.29%	30,214	29,787
	€18 million 4.30% notes 2030	12/12/2030	4.30%	4.30%	15,539	15,319
					172,905	173,415
	Provision for liability in respect of Indian capital gains tax				-	748
					172,905	174,163

          Unsecured loan notes

          The unsecured loan notes are stated at the cumulative amount of net proceeds after issue expenses. The cumulative effect is 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.

8.       Analysis of change in net debt

		At 1 May 2025 £'000	Cash flows £'000	Other non-cash changes £'000s	Exchange movement £'000s	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)
	Total	(201,809)	(2,912)	(3)	241	(204,484)

9.       Share capital

		2026 Number	2026 £'000	2025 Number	2025 £'000
	Allotted, called up and fully paid ordinary shares of 5p each	157,453,530	7,873	187,622,666	9,381
	Treasury shares of 5p each	95,717,930	4,786	65,548,794	3,278
	Total	253,171,460	12,659	253,171,460	12,659

          The Company's authority permits it to hold shares bought back 'in treasury'. Such treasury shares may be subsequently either sold for cash (at, or at a premium to, net asset value per ordinary share) or cancelled. In the year to 30 April 2026, 30,169,136 shares with a nominal value of £1,508,000 were bought back at a total cost of £432,580,000 to be held in treasury (2025 - 26,508,000 ordinary shares with a nominal value of £1,325,000 were bought back at a total cost of £321,104,000 and held in treasury). 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.

10.     Transactions with related parties and the Managers and Secretaries

          The Directors' fees and shareholdings are detailed in the Directors' Remuneration Report on pages 70 to 73. No Director has a contract of service with the Company. During the year no Director was interested in any contract or other matter requiring disclosure under section 412 of the Companies Act 2006.

          Baillie Gifford & Co Limited has been appointed as the Company's Alternative Investment Fund Manager ('AIFM') and Company Secretaries. Details of the terms of the Investment Management Agreement are set out on pages 54 and 55 and details of the fees during the year and the balances outstanding at the year end are shown in notes 3 and 11 respectively of the Annual Report and Financial Statements. 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 of the Annual Report and Financial Statements.

 

           The financial information set out above does not constitute the Company's statutory accounts for the year ended 30 April 2026 or the year ended 30 April 2025 but is derived from those accounts. Statutory accounts for the period to 30 April 2025 have been delivered to the Registrar of Companies, and those for the year to 30 April 2026 will be delivered in due course. The auditor has reported on those accounts; the reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The Annual Report and Financial Statements is published on the Company website monksinvestmenttrust.co.uk‡. The audited Annual Report and Financial Statements will be posted to shareholders during July 2026 (including the Notice of AGM and voting instructions) and will be delivered to the Registrar of Companies in due course. A copy of the annual financial report will be submitted shortly to the National Storage Mechanism ('NSM') and will be available for inspection at the NSM, which is situated at  https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

 

 

 

 

 

 

‡   Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.

None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

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.

Net Asset Value (borrowings at par value) (APM)

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

	2026 £'000	2026 per share	2025 £'000	2025 per share
Shareholders' funds (borrowings at book value)	2,517,141	1,598.7p	2,318,906	1,235.9p
Add: book value of borrowings	222,905	141.6p	223,415	119.1p
Less: par value of borrowings	(223,032)	(141.7p)	(223,547)	(119.1p)
Net asset value (borrowings at par value)	2,517,014	1,598.6p	2,318,774	1,235.9p

The per share figures above are based on 157,453,530 (2025 - 187,622,666) ordinary shares of 5p, being the number of ordinary shares in issue at the year end excluding treasury shares.

Net Asset Value (borrowings at fair value) (APM)

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

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

	2026 £'000	2026 per share	2025 £'000	2025 per share
Shareholders' funds (borrowings at book value)	2,517,141	1,598.7p	2,318,906	1,235.9p
Add: book value of borrowings	222,905	141.6p	223,415	119.1p
Less: fair value of borrowings	(165,576)	(105.2p)	(168,444)	(89.8p)
Net asset value (borrowings at fair value)	2,574,470	1,635.1p	2,373,877	1,265.2p

The per share figures above are based on 157,453,530 (2025 - 187,622,666) ordinary shares of 5p, being the number of ordinary shares in issue at the period end excluding treasury shares.

Discount/premium (APM)

As stock markets and share prices vary, an investment trust's share price is rarely the same as its NAV. When the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount is calculated by subtracting the NAV per share from the share price and is usually expressed as a percentage of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium.

		2026	2025
Closing NAV per share (borrowings at par)	a	1,598.6p	1,235.9p
Closing NAV per share (borrowings at fair value)	b	1,635.1p	1,265.2p
Closing share price	c	1,542.0p	1,138.0p
Discount to NAV with borrowings at par	(c - a) ÷ a	(3.5%)	(7.9%)
Discount to NAV with borrowings at fair value	(c - b) ÷ b	(5.7%)	(10.1%)

Total return (APM)

The total return is the return to shareholders after reinvesting the dividend on the date that the share price goes ex-dividend, as detailed below.

		2026 NAV (par)	2026 NAV (fair)	2026 Share price	2025 NAV (par)	2025 NAV (fair)	2025 Share price
Closing NAV per share/share price	a	1,598.6p	1,635.1p	1,542.0p	1,235.9p	1,265.2p	1,138.0p
Dividend adjustment factor*	b	1.0003	1.0003	1.0004	1.0017	1.0017	1.0019
Adjusted closing NAV per share/share price	c = a x b	1,599.1p	1,635.6p	1,542.6p	1,238.0p	1,267.3p	1,140.1p
Opening NAV per share/share price	d	1,235.9p	1,265.2p	1,138.0p	1,242.7p	1,266.1p	1,158.0p
Total return	(c ÷ d)-1	29.4%	29.3%	35.6%	(0.4%)	0.1%	(1.5%)

*   The dividend adjustment factor is calculated on the assumption that the dividend of 0.50p (2025 - 2.10p) paid by the Company during the year was reinvested into shares of the Company at the cum income NAV/share price, as appropriate, at the ex-dividend date.

Ongoing charges (APM)

The total expenses (excluding dealing and borrowing costs) incurred by the Company as a percentage of the daily average net asset value (with borrowings at fair value), as detailed below.

		2026	2025
Investment management fee		£9,482,000	£9,707,000
Other administrative expenses		£1,936,000	£1,965,000
Total expenses	a	£11,418,000	£11,672,000
Average net asset value (with borrowings deducted at fair value)	b	£2,608,078,000	£2,700,317,000
Ongoing charges	a ÷ b	0.44%	0.43%

Gearing (APM)

At its simplest, gearing is borrowing. Just like any other public company, an investment trust can borrow money to invest in additional investments for its portfolio. The effect of the borrowing on the shareholders' assets is called 'gearing'. If the Company's assets grow, the shareholders' assets grow proportionately more because the debt remains the same. But if the value of the Company's assets falls, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets. The level of gearing can be adjusted through the use of derivatives which affect the sensitivity of the value of the portfolio to changes in the level of markets. The gearing ratios described below are included in the Ten year record on page 34.

Gross gearing, also referred to as potential gearing, is the Company's borrowings expressed as a percentage of shareholders' funds (a ÷ c in the table below).

Net gearing, also referred to as invested or equity gearing, is borrowings at book value less cash and cash equivalents (any certificates of deposit are not deducted) and brokers' balances expressed as a percentage of shareholders' funds (b ÷ c in the table below).*

Effective gearing, as defined by the Board and Managers of Monks, is the Company's borrowings at par less cash, brokers' balances and investment grade bonds maturing within one year, expressed as a percentage of shareholders' funds*.

*   As adjusted to take into account the gearing impact of any derivative holdings.

		2026	2025
Borrowings (at book cost)	a	£222,905,000	£223,415,000
Less: cash and cash equivalents		(£18,421,000)	(£21,606,000)
Less: sales for subsequent settlement		-	(£1,345,000)
Add: purchases for subsequent settlement		£8,556,000	£4,704,000
Adjusted borrowings	b	£213,040,000	£205,168,000
Shareholders' funds	c	£2,517,141,000	£2,318,906,000
Gross (potential) gearing	(a ÷ c)	8.9%	9.6%
Net (equity) gearing	(b ÷ c)	8.5%	8.9%

Leverage (APM)

For the purposes of the Alternative Investment Fund Managers (AIFM) Regulations leverage is any method which increases the Company's exposure, including the borrowing of cash and the use of derivatives. It is expressed as a ratio between the Company's exposure and its net asset value and can be calculated on a gross and a commitment method. Under the gross method, exposure represents the sum of the Company's positions after the deduction of sterling cash balances, without taking into account any hedging and netting arrangements. Under the commitment method, exposure is calculated without the deduction of sterling cash balances and after certain hedging and netting positions are offset against each other. The leverage figures at 30 April 2026 are detailed on page 116.

Compound annual return (APM)

The compound annual return converts the return over a period of longer than one year to a constant annual rate of return applied to the compounded value at the start of each year.

Treasury shares

The Company has the authority to make market purchases of its ordinary shares for retention as treasury shares for future reissue, resale, transfer, or for cancellation. Treasury shares do not receive distributions and the Company is not entitled to exercise the voting rights attaching to them.

Turnover (APM)

Turnover is a measure of portfolio change or trading activity. Monthly turnover is calculated as the minimum of purchases and sales in a month, divided by the average market value of the fund. Monthly numbers are added together to get the rolling 12 month turnover data.

Contingent value rights

'CVR' after an instrument name indicates a security, usually arising from a corporate action such as a takeover or merger, which represents a right to receive potential future value, should the continuing company achieve certain milestones. The Illumina CVR was received on Illumina's takeover of the Company's private company investment in GRAIL and the Abiomed CVR arose on Johnson & Johnson's takeover of Abiomed. In both cases the milestones relate to the performance of the technologies acquired through those takeovers. Any values attributed to these holdings reflect both the amount of the future value potentially receivable and the probability of the milestones being met within the time frames in the CVR agreement.

Attribution

Attribution is the analysis of the effect of investment management decisions on the performance of portfolio. Attribution can be conducted at different levels depending on the product, these includes region, country, sector and stock analysis. Attribution can be relative to an index or absolute.

 

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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 in the Annual Report. The underlying investments do not take into account the EU criteria for environmentally sustainable economic activities established under the EU Taxonomy Regulation.