Monks Investment Trust PLC

Annual Report • Jul 6, 2022

Annual Report and Financial Statements 30 April 2022 THE MONKS INVESTMENT TRUST PLC Global growth from different perspectives Notes None of the views expressed in this document should be construed as advice to buy or sell a particular investment. Investment trusts are UK public listed companies and as such comply with the requirements of the UK Listing Authority. They are not authorised or regulated by the Financial Conduct Authority (FCA). Monks currently conducts its affairs, and intends to continue to conduct its affairs, so that the Company’s Ordinary Shares can qualify to be considered as a mainstream investment product and can be recommended by Independent Financial Advisers to ordinary retail investors in accordance with the rules of the FCA in relation to non-mainstream investment products. THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to the action you should take you should consult your stockbroker, bank manager, solicitor, accountant or other independent financial advisor authorised under the Financial Services and Markets Act 2000 immediately if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser. If you have sold or otherwise transferred all of your ordinary shares in The Monks Investment Trust PLC, please forward this document, together with accompanying documents, but not your personalised Form of Proxy, as soon as possible to the purchaser or transferee or to the stockbroker, bank or other agent through whom the sale or transfer was or is being effected for delivery to the purchaser or transferee. Global growth from different perspectives The Monks Investment Trust aims to deliver above average long-term returns for shareholders by keeping fees and costs low and harnessing the long-term growth potential of companies. 1 Financial Highlights Strategic Report 2 Chairman’s Statement 4 The Managers’ Core Investment Beliefs 5 Managers’ Report 9 Portfolio Positioning 10 Investment Portfolio by Growth Category 12 List of Investments 15 One Year Summary 16 Five Year Summary 17 Ten Year Summary 18 Business Review Governance Report 23 Directors and Management 24 Directors’ Report 28 Corporate Governance Report 33 Audit Committee Report 35 Directors’ Remuneration Report 37 Statement of Directors’ Responsibilities Financial Report 38 Independent Auditor’s Report 44 Income Statement 45 Balance Sheet 46 Statement of Changes in Equity 47 Cash Flow Statement 48 Notes to the Financial Statements Shareholder Information 65 Notice of Annual General Meeting 70 Further Shareholder Information 70 Analysis of Shareholders 71 Automatic Exchange of Information 71 Alternative Investment Fund Managers Regulations 72 Sustainable Finance Disclosure Regulation 73 Communicating with Shareholders 73 Third Party Data Provider Disclaimer 74 Glossary of Terms and Alternative Performance Measures Contents Investor Disclosure Document The UK Alternative Investment Fund Managers Regulations require certain information to be made available to investors prior to their investment in the Company. The Company’s Investor Disclosure Document is available for viewing at monksinvestmenttrust.co.uk. Front cover Directly below shot of modern building against sky, Hong Kong. The Monks Investment Trust PLC 01 Financial Highlights * Source:Refinitiv/BaillieGifford.Allfiguresarestatedonatotalreturnbasis.TotalreturnisanAlternativePerformanceMeasure –seeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. † Benchmark–theFTSEWorldIndex(insterlingterms)istheprincipalindexagainstwhichperformanceismeasured. # AlternativePerformanceMeasure–seeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. Pastperformanceisnotaguidetofutureperformance.Seedisclaimeronpage73. Share Price * -24.6% NAV * -19.5% (borrowingsatpar) NAV * -18.9% (borrowingsat fairvalue) Benchmark * † 6.1% Financial Highlights – Year to 30 April 2022 A 2021 DJ FMJ J A S O N A 2022 M 1600 1200 1000 800 1400 A 2021 DJ FMJ J A S O N A 2022 M 8 0 (4) (8) 4 A 2021 DJ FMJ J A S O N A 2022 M 120 110 100 80 90 Share Price (pence) Shareprice Premium/(Discount) # Premium/(Discount) (afterdeducting borrowingsatfair value # )plottedasat monthenddates NAV and Benchmark (figuresrebasedto100 at30April2021) NAVtotalreturn (afterdeducting borrowingsatfairvalue # ) Benchmark † totalreturn 02AnnualReport2022 Strategic Report * Totalreturnsfrom31March2015to30April2022. Pastperformanceisnotaguidetofutureperformance.TotalreturninformationissourcedfromBaillieGifford/Refinitivandrelevantunderlying indexproviders.Seedisclaimeronpage73. ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. Chairman’s Statement TheendofCovidrestrictionsintheWesternworldhasdelivered anewsetofchallengestoinvestors.Oureconomicproblems aremanifestingthemselvesinaburstofinflation,leavingcentral bankerswithnogoodpolicychoices.Wecannotknowwhether inflationwillbecuredbyaneconomicslowdown,orwhethera slowdownwillturnintoanastyrecession.Stockmarketshave reflectedthisgreateruncertaintybymarkingdownthepricesof allfinancialassets,particularlyhittingthegrowthcompaniesin whichMonksinvests. Justasinpreviousinflationaryperiods,anumberofcyclicaland structuralproblemshavecoincided.Theproblemswefaceare: scarcityofcommoditiesandfuel;theneedtore-armtoprevent conflict;andthere-orderingofsupplychains.Underinvestment inoilandgas,newsourcesofpower,andnaturalresources extraction,hasboostedthepricesoffuelandcommodities. Russia’sinvasionofUkrainehasreinforcedthescarcityoffuel, metalsandsoftcommodities.Ithasalsoledtotheprospectof greatermilitaryexpenditurebyNATOcountriesafteryearsofthe ‘peacedividend’.Supplychainswereexposedasfragilewhen Covidstruck,andChina’songoingrestrictionswhiletherestof theworldreopened,haveexacerbatedtheproblem,ashas China’stacitsupportforMrPutin.Inanycasethegreat outsourcingofmanufacturingtoChinawasreachingitsnatural limitasChina’scostadvantageeroded. Alloftheseproblemshavearisenaseconomiesrespondedto pent-updemandafternearlytwoyearsofrestrictionsonnormal life,andpermanentchangestopatternsoflivingandworking. Thescaleofmonetarylargesseduringthecriticalearlystagesof thepandemicturnsout,withthebenefitofhindsight,tohavebeen toomuch.Excessmoneyisextinguishedonlybyrealsupplyor pricerises.Unliketheendofthe1970swhencentralbankers finallytookoninflationandraisedinterestratessubstantially, policymakersfacetheconstraintofhighlevelsofdebtforthe state,thecorporatesectorandhouseholds.Thismakesthefuture pathofratesandtheeconomyparticularlydifficulttogauge. Afterfivesequentialyearsofoutperformance,theMonksportfolio hassufferedsincemoreofgrowthcompanies’valueisinthe future.Whateverthecourseofmacroeconomicpolicy,though, ourliveswillcontinuetochangeastechnologyevolves,andthe companiesthatwillultimatelydowellregardless,arethosethat captureandexploitthischange.ThisiswhattheManagersseek todothroughtheirbottom-up,stock-pickingapproach.The identificationandpatientownershipofexceptionalcompanies drivingfundamentalchangeislikelytosupportrealgrowth. Thisisstillthebestsourceofwealthcreation. Performance DuringtheyeartheNAVtotalreturn,withborrowingscalculated atfairvalue,was-18.9%andthesharepricetotalreturnwas -24.6%,whiletheFTSEWorldIndexreturned+6.1%.Thisisa disappointingoutcomebutshouldbeconsideredinthecontextof Monks’long-terminvestmentapproach.Indeed,itisnowseven yearssincethechangeininvestmentapproachwasimplemented inMarch2015.Fiveyearsandbeyondareappropriateyardsticks bywhichtomeasurethelong-termstrategyoftheCompany. SincetheendofMarch2015theNAVtotalreturnhasbeen 147.8% againstthecomparativeindexat128.9%.Overthe sameperiodthesharepricetotalreturnwas163.6% . Share Capital Followingseveralyearsofsignificantshareissuance,theBoard decidedtosupplementnaturalmarketliquiditythroughbuybacks intotreasuryforsubsequentreissuewhentheCompany’sshares returntotradingatapremiumtoNAV.BuyingintheCompany’s ownsharesatadiscounttoNAVenhancesNAVpersharefor ongoingshareholdersandhelpstorelieveshorttermimbalances betweenbuyersandsellersintheopenmarket.Withtheshares tradingataconsistentdiscountthroughouttheyear,the Companyboughtback8.8millionshares,costing£97.9million. ThediscounttoNAVwithborrowingscalculatedatfairvaluewas 4.4%asat30April2022,comparedtoapremiumof2.8%at 30April2021. Borrowings and Gearing OurInvestmentTruststructureallowsgearing,whichwillenhance long-termreturns,eveniffutureequityreturnsareclosertothe long-runaveragethanwehaveexperiencedoverthelastfive years.TheBoard’sstrategicborrowingtargetis10%anditis expectedthatgearingwillbemaintainedintherangeofminus 15%toplus15%.Gearingwaslow(1.0%)atthestartofthe yearandremainedso(0.8%)goingintothesharpsharepricefalls inlate2021.Itendedtheperiodat7.3%.Ourrevolvingcredit facilitywasrenewedforathree-yearperiodinNovember2021. Thisshort-termborrowingiscomplementedbyamixtureof long-termdebtissuedtoinsurancecompanies,securedatvery attractiveratesin2020,andalong-standingdebenturematuring inMarch2023. Management Expenses Monksisverycompetitiveonfeesandexpenses,whichhelpsto enhancereturnstoshareholders.Thetotalongoingchargesratio fortheyearto30April2022was0.40%,downfrom0.43%in theprioryearand0.58%atApril2015.Thecurrenttiered managementfeescaleshouldensurethatallshareholderswill benefitfromeconomiesofscale. The Monks Investment Trust PLC 03 Strategic Report Earnings and Dividend Monksinvestswiththeaimofmaximisingcapitalgrowthrather thanincome.AllcostsarethereforechargedtotheRevenue Account.TheBoard’spolicyistopaytheminimumdividend requiredtomaintaininvestmenttruststatus.Retainedearnings arereinvestedintheportfolio.Inordertobuildinheadroomfor furtherbuybacksthatmayreducethesharesinissuequalifying fordividends,theBoardisrecommendingthatasinglefinal dividendof2.35pbepaid,comparedto2.0plastyear,toensure thattheamountretainedfortheyeardoesnotexceedthat permissible. Governance and Sustainability TheCompany’sManagerscontinuetobeveryfocusedon ensuringtheholdingsintheportfolioaddresstheneedsofall stakeholders.Atthesametime,theywishtobackandencourage ambitionamongstthecompaniesthattheyownforyou.This requiresdeepunderstandingofindividualcompaniesandthe patiencetoengagewithmanagement.JustasMonksinvestsfor thelongterm,weencouragetheinvesteecompaniestodothe same.EachyeartheManagershavematerialengagementswith welloverhalftheholdingsintheportfolio.Atpresent,anindustry isemergingaroundthenarrowmeasurementofEnvironmental, SocialandGovernancefactors.Whilstwewillpaycloseattention totheseandintimewillreportonmetricswefeelareappropriate, wethinkthatpatientengagementwithandencouragementof companymanagementteamsisthebestwaytoenhance long-termreturns,andmuchofthiscannotbecaptured quantitatively.Iwouldstronglyencourageyoutorefertothe Monks Stewardship Report 2021ontheCompany’pageof theManagers’websiteandreadmoreabouthowtheManagers thoughtfullyengagewiththecompaniestheyinvestinon yourbehalf. The Board FollowingtheretirementfromtheBoardofJamesFergusonand EdwardHarley,theDirectorsreviewedtheskills,experience,and balanceoftenurelengthsoftheremainingBoardmembers; consideredrecentandanticipateddevelopmentsinthecommercial andregulatorylandscape;andappointedOdgersBerndtsonto commencethesearchforanewDirector. Outlook Shareholdershaveexperiencedasharpsharepricedeclineinthe lastyearbutitisattimeslikethesethatitisofutmostimportance thattheManagerssticktotheirlongstandinginvestment approach,whichisbasedonbottom-upstockpickinganda focusongrowthcompanies.Thevastmajorityoftheportfolio holdingscontinuetoperformwelloperationally,andinthe Managers’view,remainstronglyplacedtogrowoverthelong term.AnimportantaspectoftheapproachisfortheManagers toremainfarsightedintheiroutlookastheyseektoidentify long-termstructuralchange.Iwouldencourageshareholdersto readtheManagers’latestResearchAgenda,whichcanbefound ontheCompany’spageoftheManagers’website.Thishighlights ahandfulofareasofsignificantchangewhicharelikelytoyield someexcitinggrowthopportunitiesinthefuture.Theseinclude whereopportunitiesmayexistastheWorldtransitionsawayfrom fossilfuelstowardsrenewableenergyandwheretechnologyand softwaremayhelptounlockscaleconstraintsforhealthcareand biotechbusinesses.Wedonotexpectreturnstobelinear– volatilityispartoflong-terminvesting.TheManagerisinastrong positiontoidentifyattractivegrowthopportunitiesatcompelling valuationsinordertodeliverattractivelong-termreturnsfor shareholders.TheBoardremainconfidentintheinvestment approachandoptimisticaboutthefuture. Annual General Meeting TheCompany’sAGMhasbeenscheduledtotakeplaceon Tuesday6September2022attheInstituteofDirectors,PallMall, London,SW1Y5ED.Lastyear,theBoardannouncedandfully intendedtoholdaphysicalmeetingbut,giventheongoing uncertaintycreatedbyrisinginfectionsandthepotentialimpact ofshort-noticecancellationbykeyparticipantsowingtosickness, revertedtoapurelyadministrativemeetingheldattheManagers’ offices,limitingattendancetothoserequiredforaquorum. Weverymuchhopethatthisyearcircumstanceswillpermitusto meettheCompany’sshareholdersinperson.Nevertheless,given thatCovid-19remainsincirculationandnewvariantsmaypresent newchallenges,theBoardencouragesallshareholdersto exercisetheirvotesattheAGMbycompletingandsubmittinga formofproxy.Wewouldencourageshareholderstomonitorthe Company’swebsiteatmonksinvestmenttrust.co.ukwhere anyupdateswillbepostedandmarketannouncementswill alsobemade. AmongtheresolutionsbeingputtoshareholdersattheAGM, newArticlesofAssociationarerecommendedforadoption. DetailsoftheproposedchangesareprovidedinanAppendixto theNoticeofAnnualGeneralMeeting.Amongthemarethe provisionsnecessaryfortheCompanytoholdhybridorremote- onlygeneralmeetings.Theseprovisionsarebeingintroduced purelytoenhancetheoperationalresiliencyoftheCompany,to beusedinextremistoensurethattheessentialbusinessofthe Companycanbeconducted,shouldcircumstancespreventthe holdingofphysicalmeetings.Foravoidanceofdoubt,theBoard’s preferencewillalwaysbetoholdphysicalgeneralmeetings, allowingshareholderstheopportunitytodiscussthebusiness arisingwithDirectorsandManagersinperson. 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trustenquiries@bailliegifford.com or call08009172112. KSSternberg Chairman 20June2022 04AnnualReport2022 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10and11. — 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. 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.Macroeconomicforecastsareofrelatively littleinteresttous. — Highactiveshare providesthepotentialforaddingvalue. — Weignorethestructureoftheindex–forexamplethelocation ofacompany’sHQandthereforeitsdomicilearelessrelevant tousthanwhereitgeneratessalesandprofits. — Largeswathesofthemarketareunattractiveandofno interesttous. — Asindexagnosticglobalinvestorswecangoanywhereand onlyinvestinthebestideas. — 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10and11. — Theuseofthesethreegrowthcategoriesensuresadiversity ofgrowthdriverswithinadisciplinedframework. The Managers’ Core Investment Beliefs Strategic Report ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. The Monks Investment Trust PLC 05 Delivered earnings growth Delivered total returns Relative return pa 30% (10%) 10% (30%) 20% 0% (20%) Excess earnings growth pa Quintile 5 (Low) Quintile 4 Quintile 3 Quintile 2 Quintile 1 (High) 15% (5%) 5% (15%) 10% 0% (10%) Relative return pa Totalreturnsfrom31March2015to30April2022. Pastperformanceisnotaguidetofutureperformance. TotalreturninformationissourcedfromBaillieGifford/Refinitivandrelevantunderlyingindexproviders.Seedisclaimeronpage73. ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. Managers’ Report Strategic Report Background ThelatterfourmonthsofMonks’financialyearhasbeenaperfect stormforgrowthinvestors.Steepsharepricefallshaveoccurred amidachallengingbackdropofsupplychaindisruptionandrising levelsofinflation.Alliedtouncertaintyaroundtheregulatoryregime inChinaandthetragiceventsinUkraine,theresulthasbeena surgeinvolatilityandanextremeshiftinsentimentcharacterised byaswingawayfromgrowthtowardsmorevalue-orientedparts ofthemarket.TheimpactonperformancefortheMonks investmentTrust,withitsoptimistic,reward-seekingapproach, hasbeenpainful. Ameretwelvemonthsago,wewerereflectingonaperiodofvery strongperformance.Werecognisethatthespeedandsizeofthe reversalsincethenhasbeenjarringforshareholders.Wehaveno ideawhattheimmediatefutureholdsandsooffernopredictions aboutwhatthecomingmonthsmaybring.However,attimeslike Delivered Median Total Returns on Earnings Growth Quintiles Rolling 5-year Horizons (1992–2021) Source:FactSet,FTSE,MSCI.TheuniverseconsistsofallstockslistedintheFTSEWorldandMSCIACWIIndicesateachstartingperiodandexcludingrepetitions. Performance ThecurrentteamhasmanagedTheMonksInvestmentTrust forsevenyears.Overthisperiod,thetotalreturnhasbeen +147.8% (shareprice+163.6%)comparedtothecomparative index(FTSEWorld)whichisup+128.9% .TheyeartoApril2022 hasbeenchallenging.ThefairvalueNAVtotalreturnwas-18.9% (shareprice-24.9%)againstthecomparativeindextotalreturn of+6.1%.Thisisdisappointingforshareholdersbutshouldbe consideredinthecontextofhavingfollowedaperiodof exceptionalreturns,andtheCompany’slong-terminvestment horizon. Underlyingtheextremeshiftawayfromgrowthtowardsvalue (theMSCIValueindexhasoutperformedthecorresponding Growthindexby+15.5%inthefourmonthstotheendof April2022),therehavebeentwoprincipaldriversofMonks’ underperformance.Onerelatestoearly-stagegrowthcompanies andtheother,toChinesebusinesses. this,itishelpfultoreturntotheprinciplewhichguideshowwe looktoaddvalueoverlongperiodsoftime.Thisapproachis basedontheidentificationandpatientownershipofspecial companies,definedasthosethathavethepotentialtodeliver attractiveratesofearningsgrowthoverperiodsoffiveyearsor more.Thereisaveryhighcorrelationbetweencompaniesthat ultimatelydeliveronthispotentialandthosethatalsooutperform inshare-priceterms.Lookingatthethousandsofstocksinthe globaluniverseofequitiesdatingback30yearsandcategorising themaccordingtotheirratesofearningsgrowth,share-price returnsclearlyandconsistentlyfollowoperationalperformance. Thisrelationshipbetweenthepotentialforlong-termvaluecreation andshare-priceperformancebreaksdownovershorterperiods butunderpinsoursteadfastapproachtolong-terminvesting. 06AnnualReport2022 ©Shutterstock/hodim. Mastercard, the digital payments business, continues to grow at attractive rates. Strategic Report Therecentenvironmenthasreflectedahighdegreeofscepticism withregardstothefuturepotentialofcompaniesyettoachieve sustainedprofitabilityandtheprobabilitythattheywillbeableto earnattractivereturnsontheirhighlevelsofcurrentinvestment. ExcludingMonks’investmentsinprivatecompanies,around 13%ofthelistedportfolioiscurrentlylossmaking.Ourwork hasprovidedreassurancethatnotonlydoavastmajorityofthe companiesremainresilient,butthattheycontinuetomake strongoperationalprogress,despitetheirsharepricetravails. AmongthemostacuteexamplesisFarfetch,theonlineluxury goodsmarketplacewhichhasdoubledvolumesandrevenues inthepasttwoyears.Despitethis,itisamongthelargest detractorsfromperformance(sharesaredown-74%). Wecontinuetobelieveinthecompany’spathtoprofitability. Theshares’currentvaluation(1.1xforward12msales)appears toustomateriallyundervalueFarfetch’sopportunitynotonlyin itscoreonlinemarketplace,butinits‘PlatformSolutions’ business,whichenablesbrandsandretailerstodriveonline growth.AcompanywhichisofconcernisourholdinginPeloton (homefitness).Thecompanyhassignificantlyoverestimated demandandcommittedtoomuchcapitaltotheproductionof itshardware(bikes).Thishasunderminedtheprospectoffuture profitability.AnewCEOinBarryMcCarthy,formerlyofNetflix andSpotify,isamoveintherightdirection,howeverthisstock remainsfirmlyunderreviewandhasbeenadisappointingholding sincewepurchaseditinAugust2021. SharepricesofamajorityofMonks’Chineseholdingsfellsharply followingtheimpositionofwidespreadregulationbycentral government.HoldingssuchasAlibaba(ecommerceandcloud computing),Meituan(fooddelivery)andNaspersandProsus (whichhavelook-throughexposuretoTencentinsocialmedia andgaming)havefallenbybetween50–70%.Weseektoremain open-mindedaboutthelong-termregulatoryimplications.Onthe onehand,webelievethatmuchoftheregulationislikelyto supportbusinessestobesustainableandoperatewiththegrain ofsociety(forexample,someoftheregulationsupportssocial provisionforthelowestpaidworkers).Ontheother,weseekto remainvigilantwherethereisevidencethattheChinesestateis limitingtheupsideforprivatecompanies.Wehaveactedwhere thishasbeenthecaseinsellingPingAnHealthcareand Technology(telemedicine)andreducingtheportfolio’spositionin Meituan.Wecontinuetotakesignalsfromwhatweseeatthe corporatelevelandareactivelyreviewingotherpositionsincluding KEHoldings(onlinerealestate)andTencentMusicEntertainment inwhatisanuncertainsituation. Portfolio Positioning Widespreadandindiscriminatesharepricefallsbringwiththem significantchallenges.Ourresponsehasbeentobedisciplined withregardstoourprocess,toensurethatwecontinuetostretch outourtimehorizonsandtofocusonfundamentalchangesto theinvestmentcasesofthecompaniesintheportfolio.A significantdeclineinacompany’ssharepriceisafarfromreliable signalthataninvestmentcaseisbroken.Indeed,someofMonks’ highestreturningholdingshaveexperienceddrawdownsofmore than50percent.ThisincludesthelikesofTesla(electricvehicles), Amazon(ecommerceandcloud),Moody’s(creditrating)and Anthem(healthinsurance).Ourexaminationoftheoperational progressacrosstheportfolioisreassuring.Theportfolio’srevenue growthisaccelerating.Overthenextyear,salesareforecastto growat17%(twicetherateoftheprior5-yearaverage) comparedwithamarketrateof10%.Importantly,thispatternof accelerationisbroadlyevidentacrossthedifferentpartsofthe portfolio,incorporatingcompoundingbusinesseslikeMastercard (digitalpayments)orEstéeLauder(cosmetics);innovative,high growthcompanieslikeCloudflare(cloudsoftware)orTheTrade Desk(programmaticadvertising);aswellasmorecyclical operatorslikeCRH(buildmaterials)orAlbemarle(lithiummining). ©Shutterstock/pornpawit. Estée Lauder has a high quality portfolio of cosmetic brands. The Monks Investment Trust PLC 07 Strategic Report Wehaveassessedalltheportfoliowithregardstohowitmayfare inanenvironmentofpersistentlyhigherinflation,attemptingtoget beyondthesimplisticnarrativethathigherlevelsofinflation,and theaccompanyingpotentialforrisinginterestrates,isbadfor growthcompanies.Thisworkincorporatedassessingvarious aspectsofpricingpower,includingthefrequencyofpurchases andthedegreeofvalue-add,marginstructures,thespeedofthe businesscycleandcapitalintensity.Ourconclusionisthatthe portfolioisskewedtowardsbusinesseswithahighdegreeof flexibilitytocopewithasurgeininflation.Forexample,whilst MartinMarietta(materialsandbuildingsupplies)isacapital- intensiveoperator,byvirtueofdominatingitslocalmarketsinthe US,itpossessesexceptionalpricingpower(ithasincreasedprices onaverageby4.5%p.a.overthepastdecade).Alternatively, Mastercard(digitalpayments)withitsinfrastructurelikeposition inpaymentsandcapitallightbusinessmodelhassignificantroom formanoeuvreagainstamorechallengingbackdrop. Asactive,stockpickinginvestorsweareacutelyawareofthe opportunitiesthatthecurrentmarketvolatilitypresents.While turnoverhasremainedlow(11%),wehaveadded11new companiestotheportfolioandmadeadditionswheretheupside iscompelling.Ourfocushasbeentopayheedtooneofour centralprocessquestionswhichis‘Whatdoesitbringtothe portfolio?’Wecontinuetovaluethebenefitsofdiversityinsources ofrevenue,earningsandcashflowgrowthandhavesoughtto strengthenthisinrecentmonths.Wehaveaddedtotheportfolio throughpositionsinthelikesofCertara(biosimulationsoftware), Chewy(onlinepetconsumables),AnalogDevices(analogue semiconductors),Adobe(creativedigitalsoftware)andRoyalty Pharma(lifesciencefunding).Additionshavebeenmadewhere wefeltthatourviewwasmostdifferentiatedfromthemarket– examplesincludeadditionstoMartinMarietta(aggregates), Anthem(healthinsurance)andFarfetch(onlineluxury).Saleshave comefrompositionswhereweeitherfeltthatvaluationsweretoo high,oracompetitivepositionwasbeingeroded.Intheformer camp,Resmed(medicaldevices),Advantest(semiconductor testing)andICICIBank(retailandcommercialbanking)were companieswhichhaveexecutedwellbutwheretheshareprice hasoutstrippedtheirfundamentalprogress.Withthebenefitof perfecthindsight,weshouldhavegonefurtherinreducingother positionswithintheportfoliogiventhevoracityofsharepricefalls recently.Inotherregards,theportfoliowaswellpositioned,for examplenetgearingwas0.8%inNovembergoingintothe marketreversal.Inthelattercamp,wesoldLendingTree(online financialplatform),Hays(recruitment)andInteractiveBrokers (onlinetrading)onthegroundsthatthecompetitivelandscape wasintensifying,andwelackedconvictionintheabilityofthose businessestorespondadequately.Elsewhere,Monkshad minimalexposuretoRussianstocks(0.64%offundatthe beginningofJanuary)–holdingsinSberbank(retailbank)and VKLtd(socialmedia).WebegantosellVKLtdpriortothe commencementofthewarandactedswiftlytosellSberbank thereafter.AfinancialmarketshutdowninRussiameantthata fractionalpositioninthesecompaniesremainswithintheportfolio (<0.01%offund).Wewillseektoselloutcompletelyatour earliestopportunity. ©Shutterstock/MichaelJayBerlin. Adobe, the digital content creation platform, offers an expanding range of tools to users. ©Bloomberg/GettyImages. Chewy, an online pet consumables business, was added to the portfolio in the year. 08AnnualReport2022 Stewardship Itisattimeslikethesethatwebelieveitbecomesmoreimportant tobepatientandengagedshareholders.Periodsofshare-price weaknesscanbringbehaviouralchallengesnotjustforinvestors, butalsoformanagementteamsandmaybedeeplyunsettling foremployees.Oneoftherisksinthecurrentportfolioisthat managementteamsreacttothesignalstheyaregettingfrom themarket,shorteningtheirowntimehorizons,andreiningin investment.Therewouldlikelybeasignificantopportunitycost tosuchactions.Whenwehaveengagedwithcompaniesover recentmonths,wehavethereforeencouragedthemtotryto decouplethinkingontheiroperationaldecisionmakingfromshare pricesasmuchaspossible.Wherewefeelthishasnotbeenthe case,orwheremanagementarefailingtoinvestforthelongterm, wehavesold.TherecentsaleofLyft(ridesharing)isacasein point.WefeltthatthescaleofambitionatLyft–havingoncebeen tobringfleetsofautonomousvehiclestomarket–hasbeen curtailed.Thishasbeencoupledwithegregiousstock-based compensationpay-outswhich,inourview,arenotappropriate givenunderwhelmingoperationalprogressnoralignedwiththe long-terminterestsofshareholders. Continued Improvement ShareholdersinMonksmaybefamiliarwiththegrowthprofiles (Stalwart,Rapid,CyclicalandLatent)bywhichwedividethe portfolio.Thesehelptoprovideclarityabouttheinefficiencywe seektoexploitinourinvestmentsandourexpectationabout howgrowthistobedelivered.Ouranalysishasshownthatthe benefitsofdiversificationacrossthegrowthprofilesisreal. Wehaveconsistentlyfoundthattheportfolioinaggregate outperformsmoreoftenthananyoftheindividualgrowth profilesonastandalonebasis.However,ouranalysissuggest thattheLatentGrowthprofilehasbeensomewhatofalaggard, outperformingconsiderablylessthanitssiblings.Inotherwords, itcontributeslittletothepositivediversificationeffectofthe portfolio.Wehavethereforedecidedtostopexplicitlyseeking LatentGrowthopportunitiesforMonks.Inourendeavourto improveasinvestorsitisimportanttorecognisewherewedo notexcel.Therefore,webelieveitwillbeadditivetosharpenour focusacrossthethreeothergrowthprofiles,wherewetypically seethemostattractivegrowthopportunitiesandhaveastrong trackrecordofidentifyingwinners.Thereisnochangetothe underlyingportfolioasthecurrentLatentGrowthpositionswill beretainedwithintheCyclicalGrowthprofileunlessoruntilthey meetourcriteriafordisposal. Outlook Asanactivemanagerourapproachisbasedonnurturing investmentinsights,whichleadustoadifferentiatedviewonthe futurepotentialofcompanies.Monks’long-termreturnsdepend onthis.Afundamentalfeatureofthisapproachisthattherewill inevitablybeperiodswhenourviewsareverydifferentiated,and theresultingperformanceoftheportfoliomightbeuncomfortable. Themanagersrecognisethis,beingthemselvesmaterially investedintheCompanyandthereforealignedwithshareholders. Itisanaturaltendencyattimesofturmoilanduncertaintyfortime horizonstocontract.Ourbeliefintheimportanceofpatience meansthatwewillcontinuetoallocateourtimetothoseareasof researchwhichwethinkwillbemostimpactfuloverthelongterm, focusingonunearthingthegemswhichmaybehandedtousata timewhenothersarebeingparticularlyfearful,andwhichwillsow theseedsforfuturegrowth.Inthissense,weremainforward lookingandoptimisticaboutthefuture.Thankyouforyour supportandpatience. SpencerAdair MalcolmMacColl BaillieGifford&Co 20June2022 Strategic Report Monks Stewardship Report 2021 Furtherexamplesofour engagementwithcompanies canbeseenintheMonks Stewardship Report 2021. ©Lyft,Inc. A combination of curtailed growth ambitions and governance concerns led to Lyft, the ride sharing business, being sold. The Monks Investment Trust PLC 09 Portfolio Positioning As at 30 April 2022 Sectoral 2022 (2021)Geographical 2022 (2021) Industrials 10.6% (9.6%) Technology 20.6% (23.6%) Net Liquid Assets 1.2% (3.2%) Financials 21.1% (20.2%) Energy 2.8% (1.4%) Basic Materials 5.0% (3.7%) Consumer Staples 2.0% (1.3%) Telecommunications nil (0.8%) Healthcare 14.5% (13.5%) Consumer Discretionary 19.5% (19.3%) Real Estate 2.7% (3.0%) Utilities nil (0.4%) North America 54.0% (49.7%) Net Liquid Assets 1.2% (3.2%) Emerging Markets 12.2% (14.9%) United Kingdom 8.7% (11.6%) Developed Asia 4.9% (3.9%) Continental Europe 14.5% (10.5%) Japan 4.5% (6.2%) Althoughthemanagers’approachtostockpickingisresolutely‘bottom-up’ innatureandpaysnoattentiontothestructureoftheindex,itisessential tounderstandtherisksofeachinvestmentand,inturn,wheretheremay beconcentrationsofexposures.Thechartaboveoutlinesthekey exposuresoftheportfolioattheCompany’syearend: — 16.8%oftheportfolioisclassifiedasDevelopedMarketGrowth. Thisincludesexposuretoindustrialandconsumersectors,among others.IndustrialbusinessesincludeMartinMarietta,aleadingUS aggregatessupplier.Intheconsumersetting,thereisexposureto EstéeLauder,aglobalcosmeticsbrand,andRyanair,thelow-cost airline. — 16.2 %oftheportfolioisinvestedinstocksidentifiedtobethe beneficiariesofgrowthinDevelopingEconomies.Thereismeaningful exposuretocompanieslikelytoprofitfromincreasingconsumption levelsandfinancialdevelopmentinemergingmarkets.Intheformer categoryareminingcompaniesBHPandRioTintoandinthelatter isAIAGroup,thepan-Asianlifeinsurancecompany. — 40.8%oftheportfolioisidentifiedasbeingexposedtotheNew Economy.Thisbracketsadiverserangeofbusinessesfrominternet winnersindevelopedandemergingeconomiestohealthcareand semiconductorcompanies.‘PlatformCrush’typicallyreferstocapital lightonlinecompanieswhichseektoservemultiplestakeholdersvia aplatformmodel.ExamplesincludeFarfetch,theonlineluxurygoods business,andDoordashinonlinefooddeliveryintheUS.Prominent namesinhealthcareincludeIllumina,thegeneticsequencing companyandModerna,themRNAdrugdiscoverycompany. TSMCmakessemiconductor‘chips’,whilstTeradyneprovides testingequipmentandservicestotheindustry. — 25.0 %oftheportfolioisclassifiedasEconomicallyAgnostic/ Idiosyncratic.Thisincludesadiversifiedrangeofcompanies,manyof whicharegrowthstalwartbusinesses,suchasAnthem,theUShealth insuranceprovider,ServiceCorporation,thecrematoriabusinessand thedigitalpaymentsbusiness,MasterCard.USinsurancespecialists ArthurJ.GallagherandMarkelmakeuppartoftheexposuretothe insurancecycle. —  Theremaining 1.2 %iscomposedofnetliquidassets. Thematic Exposure ConsumerDemand/  Employment 4.5% IndustrialDemand 5.9% CarbonHeavy 2.9% CapitalMarkets/  AssetInflation 3.5% PlatformCrush 10.4% Regulation/Anti-trust 9.2% TransformationalHealth 6.2% Transformative/  UnprovenModel 3.9% EnterpriseCloud 3.6% Innovation/Chips 3.1% Other 4.4% EmergingMarkets MiddleClasses —EMFinancial Development 6.1% —EMConsumer Catch-up 3.5% 9.6% CarbonHeavy 5.8% Lending/UnderwritingRisk 0.5% IndustrialDemand 0.3% HighlyValued  Compounders 15.5% Idiosyncratic 6.5% InsuranceCycle 3.0% Net Liquid Assets 1.2% Developed Market Growth 16.8% Developing Economies 16.2% New Economy 40.8% Economically Agnostic 25.0% Strategic Report 10AnnualReport2022 Investment Portfolio by Growth Category * As at 30 April 2022 Growth Stalwarts Rapid Growth c.10%p.a.earningsgrowth Company characteristics Durablefranchise Deliverrobustprofitabilityinmostmacroeconomic environments Competitiveadvantageincludesdominantlocalscale, customerloyaltyandstrongbrands c.15%to25%p.a.earningsgrowth Company characteristics Earlystagebusinesseswithvastgrowthopportunity Innovatorsattackingexistingprofitpoolsorcreatingnew markets Highest conviction holdings c.2.0% each Anthem Microsoft Alphabet Moody’s ServiceCorporation  International 3.8 2.7 2.5 2.4 2.1 ArthurJ.Gallagher PernodRicard MasterCard AIA ThermoFisher  Scientific 2.0 1.9 1.8 1.7 1.6 TheSchiehallion  Fund † RelianceIndustries Prosus Amazon.com 4.6 2.8 2.3 1.8 Average sized holdings c.1.0% each Prudential Olympus EstéeLauder S&PGlobal MetaPlatformsInc 1.4 1.4 1.3 1.1 1.0 BroadridgeFinancial  Solutions Sysmex AdobeSystems 0.9 0.7 0.7 Tesla TheTradeDesk HDFC Illumina Moderna B3Group Alibaba SeaLimited 1.4 1.2 1.0 1.0 1.0 0.9 0.9 0.9 Alnylam  Pharmaceuticals PingAnInsurance EpicGames MercadoLibre Cloudflare Shopify Schibsted 0.8 0.8 0.7 0.7 0.7 0.7 0.7 Incubator holdings c.0.5% each CoStar adidas AnalogDevices Certara Topicus.com HoshizakiCorp ChewyInc 0.6 0.6 0.5 0.4 0.4 0.3 0.2 Meituan ByteDance DENSO Genmab Doordash LiAuto ICICIPrudential  LifeInsurance Abiomed Farfetch Twilio CyberAgent Adyen Snowflake Datadog Renishaw M3 AxonEnterprise Trupanion Lemonade DenaliTherapeutics Novocure AdevintaAsa CoupangLLC Wayfair 0.6 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 StaarSurgical Bumble Spotify Netflix OscarHealth AntInternational ExactSciences Ubisoft  Entertainment Chegg SpaceExploration  Technologies Teladoc Stripe Carvana PelotonInteractive TencentMusic  Entertainment Vimeo Oatly KEHoldings Naspers VKCompany  Limited 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.0 0.0 Total in this growth category 34.0% Total in this growth category 39.7% Time Earnings Time Earnings * Excludesnetliquidassets. † CombinedordinaryandCshareholdings. Strategic Report The Monks Investment Trust PLC 11 Cyclical Growth c.10%to15%p.a.earningsgrowththroughacycle Company characteristics Subjecttomacroeconomicandcapitalcycleswithsignificant structuralgrowthprospects Strongmanagementteamshighlyskilledatcapitalallocation MartinMarietta  Materials BHPGroup Ryanair CRH TSMC RioTinto CBREGroup 2.6 2.1 1.9 1.7 1.6 1.6 1.5 Total in this holding size 47.0% Albemarle BookingHoldings RoyaltyPharma Markel Teradyne Richemont 1.3 1.2 1.1 1.1 1.0 1.0 CharlesSchwab AtlasCopco Epiroc SMC SiteOneLandscape  Supply 0.9 0.7 0.7 0.7 0.7 Total in this holding size 32.3% DeutscheBoerse HowardHughes Nexans WizzAirHoldings SandsChina IAC/Interactivecorp BrillianceChina  Automotive SilkInvestAfrica  FoodFund SberbankofRussia 0.6 0.6 0.5 0.3 0.3 0.2 0.2 0.2 0.0 Total in this holding size 20.7% Total in this growth category 26.3% Time Earnings Strategic Report 12AnnualReport2022 Name Business Growth category Fair value £’000 % of total assets Cumulative % of total assets Equities TheSchiehallionFund Globalunlistedgrowthequityinvestmentcompany Rapid 68,423 2.5 TheSchiehallionFundCShares Globalunlistedgrowthequityinvestmentcompany Rapid 51,883 1.9 120,306 4.4 Anthem Healthcareinsurer Stalwart 101,427 3.8 RelianceIndustries Indianenergyconglomerate Rapid 75,473 2.8 Microsoft Softwareandcloudcomputingenterprise Stalwart 71,080 2.6 MartinMariettaMaterials Cementandaggregatesmanufacturer Cyclical 69,444 2.6 Alphabet Onlinesearchengine Stalwart 67,216 2.5 Moody’s Creditratingagency Stalwart 64,153 2.4 Prosus Mediaandecommercecompany Rapid 60,897 2.3 BHPGroup Mineralexplorationandproduction Cyclical 57,011 2.1 25.5 ServiceCorporationInternational Funeralsandcemeteries Stalwart 56,282 2.1 ArthurJ.Gallagher Insurancebroker Stalwart 53,817 2.0 Ryanair LowcostEuropeanairline Cyclical 51,059 1.9 PernodRicard Globalspiritsmanufacturer Stalwart 50,897 1.9 Amazon.com Onlineretailer Rapid 48,665 1.8 MasterCard Electronicpaymentsnetworkandrelatedservices Stalwart 47,515 1.8 CRH Diversifiedbuildingmaterialscompany Cyclical 46,479 1.7 AIA Asianlifeinsurer Stalwart 45,260 1.7 TSMC Semiconductormanufacturer Cyclical 43,425 1.6 RioTinto Globalcommoditiesbusinesses Cyclical 42,763 1.6 43.6 ThermoFisherScientific Scientificinstruments,consumablesandchemicals Stalwart 41,222 1.5 CBREGroup Commercialrealestateoperator Cyclical 38,712 1.4 Tesla Electriccarsandrenewableenergysolutions Rapid 37,955 1.4 Prudential Internationallifeinsurance Stalwart 37,949 1.4 Olympus Optoelectronicproducts Stalwart 37,948 1.4 Albemarle Specialitychemicals Cyclical 35,545 1.3 EstéeLauder Globalcosmeticbrandsbusiness Stalwart 35,385 1.3 TheTradeDesk Advertisingtechnologycompany Rapid 31,927 1.2 BookingHoldings Onlinetravelagency Cyclical 30,583 1.1 RoyaltyPharma Biopharmaceuticalroyaltiesportfolio Cyclical 29,879 1.1 56.7 S&PGlobal Globalcreditratingagency Stalwart 29,476 1.1 Markel Marketsandunderwritesspecialityinsuranceproducts Cyclical 28,189 1.0 MetaPlatformsInc Socialnetworkingwebsite Stalwart 27,817 1.0 Teradyne Semiconductortestingequipmentmanufacturer Cyclical 26,877 1.0 HDFC Indianmortgageprovider Rapid 26,713 1.0 Illumina Genesequencingbusiness Rapid 25,461 0.9 Richemont Luxurygoodscompany Cyclical 25,385 0.9 Moderna DrugdiscoveryusingmRNAtechnology Rapid 25,255 0.9 B3Group Brazilianstockexchangeoperator Rapid 24,391 0.9 Alibaba Onlinecommercecompany Rapid 24,244 0.9 66.3 BroadridgeFinancialSolutions Providestechnologybasedsolutionstothe  financialservicesindustry Stalwart 23,970 0.9 List of Investments As at 30 April 2022 * TheSchiehallionFundismanagedbyBaillieGifford.TheCompany’sholdingsinTheSchiehallionFundareexcludedfromitsassetswhencalculatingthemanagementfee. Seenote3onpage51.TheordinaryandCshareportfoliosofTheSchiehallionFundaremanagedasdistinctinvestmentpools,untilsuchtimeastheCsharesareconverted intoordinaryshares. Strategic Report The Monks Investment Trust PLC 13 Denotesunlisted(privatecompany)investment. Strategic Report Name Business Growth category Fair value £’000 % of total assets Cumulative % of total assets CharlesSchwab Onlinesavingsandtradingplatform Cyclical 23,806 0.9 SeaLimited Onlineanddigitalgaming Rapid 23,160 0.9 AlnylamPharmaceuticals RNAinterferencebasedbiotechnology Rapid 21,247 0.8 PingAnInsurance Chineselifeinsurer Rapid 21,179 0.8 EpicGames Gamingsoftwaredeveloper Rapid 19,613 0.7 AtlasCopco Industrialequipment Cyclical 19,348 0.7 Epiroc Constructionandminingmachinery Cyclical 18,991 0.7 MercadoLibre LatinAmericanecommerceplatform Rapid 18,612 0.7 Sysmex Medicaltestingequipment Stalwart 18,526 0.7 74.1 SMC Produceroffactoryautomationequipment Cyclical 18,450 0.7 SiteOneLandscapeSupply USdistributoroflandscapingsupplies Cyclical 18,231 0.7 Cloudflare CloudbasedITservicesbusiness Rapid 18,187 0.7 Shopify Onlinecommerceplatform Rapid 18,093 0.7 AdobeSystems Softwareproductsandtechnologies Stalwart 17,592 0.7 Schibsted Mediaandclassifiedadvertisingplatforms Rapid 17,561 0.7 Meituan Onlinecommerceplatform Rapid 17,272 0.6 CoStar Commercialpropertyportal Stalwart 17,182 0.6 adidas Sportsapparelmanufacturer Stalwart 16,897 0.6 DeutscheBoerse Stockexchangeoperator Cyclical 16,319 0.6 80.7 ByteDance OnlinecontentplatformincludingTikTok Rapid 15,987 0.6 DENSO Automotivecomponentsupplier Rapid 15,722 0.6 Genmab Biotechnologycompany Rapid 15,479 0.6 HowardHughes USrealestatedeveloper Cyclical 15,082 0.6 Doordash Onlinecommerceplatform Rapid 14,903 0.6 Nexans Manufacturerofcablesandelectricalparts Cyclical 14,498 0.5 LiAuto ElectriccarswithafocusonChina Rapid 14,473 0.5 ICICIPrudentialLifeInsurance Lifeinsuranceservices Rapid 13,695 0.5 Abiomed Medicalimplantmanufacturer Rapid 13,636 0.5 Farfetch Onlinefashionretailer Rapid 13,327 0.5 86.2 AnalogDevices Integratedcircuits Stalwart 13,275 0.5 Twilio Cloudbasedcommunicationsplatform Rapid 13,010 0.5 CyberAgent Japaneseinternetadvertisingandcontent Rapid 12,672 0.5 Adyen Digitalpayments Rapid 12,248 0.5 Snowflake Cloudbaseddatainsightapplication Rapid 12,133 0.4 Datadog CloudbasedITsystemmonitoringapplication Rapid 11,731 0.4 Renishaw Worldleadingmetrologycompany Rapid 11,711 0.4 Certara Drugdiscoveryanddevelopmentcompany Stalwart 11,509 0.4 M3 Onlinemedicalservices Rapid 11,284 0.4 AxonEnterprise Manufactureroflawenforcementdevices Rapid 11,062 0.4 90.6 Trupanion Pethealthinsuranceprovider Rapid 9,958 0.4 Lemonade Dataandinsurancecompany Rapid 9,740 0.4 DenaliTherapeutics Earlystagebiotechcompany Rapid 9,668 0.4 Topicus.com Verticalmarketsoftwareandsolutions Stalwart 9,465 0.4 WizzAirHoldings Low-costEastEuropeanairline Cyclical 9,088 0.3 14AnnualReport2022 Strategic Report Name Business Growth category Fair value £’000 % of total assets Cumulative % of total assets Novocure Biotechnologycompanyfocusingonsolid  tumourtreatment Rapid 8,889 0.3 AdevintaAsa Mediaandclassifiedadvertisingplatforms Rapid 8,724 0.3 CoupangLLC SouthKoreanecommerce Rapid 8,690 0.3 Wayfair Onlinehomefurnishingsbusiness Rapid 8,027 0.3 StaarSurgical Implantablecontactlenses Rapid 7,707 0.3 94.0 Bumble Datingapplication Rapid 7,643 0.3 Spotify Onlinemusicstreamingservice Rapid 7,626 0.3 Netflix SubscriptionserviceforTVshowsandmovies Rapid 7,065 0.3 SandsChina Macaucasinooperator Cyclical 6,986 0.3 OscarHealth Disruptivepersonalinsuranceprovider Rapid 6,981 0.3 HoshizakiCorp Commercialkitchenequipmentmanufacturer Stalwart 6,898 0.3 AntInternational Chineseonlinepaymentsandfinancialservicesbusiness Rapid 6,871 0.3 ExactSciences Cancerdetectionandtreatment Rapid 6,574 0.2 IAC/Interactivecorp Holdingcompanyforonlineproperties Cyclical 6,561 0.2 ChewyInc Onlinepetsuppliesretailer Stalwart 6,213 0.2 96.7 UbisoftEntertainment Gamedevelopmentplatform Rapid 6,169 0.2 BrillianceChinaAutomotive † Manufactureandsaleofminibusesandautomotive  components Cyclical 5,636 0.2 Chegg Onlineeducationalplatform Rapid 5,512 0.2 SilkInvestAfricaFoodFund Africafocusedprivateequityfund Cyclical 4,958 0.2 SpaceExplorationTechnologies Spacerocketsandsatellites Rapid 4,711 0.2 Teladoc Healthcareservicesprovider Rapid 4,589 0.2 Stripe Paymentsplatform Rapid 4,469 0.2 Carvana Onlineplatformforbuyingusedcars Rapid 4,251 0.2 PelotonInteractive Interactivefitnessplatform Rapid 4,011 0.1 TencentMusicEntertainment Onlinemusicstreamingandsocialmedia Rapid 3,649 0.1 98.5 Vimeo All-in-onevideosoftwaresolution Rapid 3,310 0.1 Oatly Oat-basedalternativestodairyproducts Rapid 3,020 0.1 KEHoldings Chineserealestateportal Rapid 1,507 0.1 Naspers Mediaandecommercecompany Rapid 1,094 0.0 SberbankofRussia † Russiancommercialbank Cyclical – 0.0 VKCompanyLimited † Russianinternetandcommunicationservices Rapid – 0.0 Total Investments # 2,662,015 98.8 98.8 Net Liquid Assets # 31,975 1.2 Total Assets # 2,693,990 100.0 100.0 Denotesunlisted(privatecompany)investment. † Suspendedinvestment. # ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. The Monks Investment Trust PLC 15 30 April 2022 30 April 2021 % change Totalassets(beforedeductionofborrowings) £2,694.0m £3,344.8m Borrowings(atbookvalue) £214.8m £139.8m Shareholders’funds £2,479.2m £3,205.0m Shareholders’fundspershare(borrowingsatbookvalue) 1,089.1p 1,355.4p (19.6) Netassetvalueperordinaryshare(borrowingsatpar) † 1,089.0p 1,355.3p (19.6) Netassetvalueperordinaryshare(borrowingsatfairvalue) † 1,099.8p 1,358.1p (19.0) Shareprice 1,051.0p 1,396.0p (24.7) FTSEWorldIndex(insterlingterms) # 4.1 Revenueearningsperordinaryshare 3.67p 3.42p 7.3 Dividendspaidandpayableinrespectofthefinancialyear 2.35p 2.00p 17.5 Ongoingcharges † 0.40% 0.43% (Discount)/premium(overNAVwithborrowingsatpar) † (3.5%) 3.0% (Discount)/premium(overNAVwithborrowingsatfairvalue) † (4.4%) 2.8% Activeshare † 87% 86% Year to 30 April 2022 2021 Total return performance% ‡ Netassetvalue(borrowingsatpar) † (19.5) 54.7 Netassetvalue(borrowingsatfairvalue) † (18.9) 55.5 Shareprice † (24.6) 53.1 FTSEWorldIndex(insterlingterms) # 6.1 33.9 Year to 30 April 2022 2022 2021 2021 Year’s high and low High Low High Low Netassetvalue(borrowingsatpar) † 1,500.5p 1,050.2p 1,426.6p 861.1p Netassetvalue(borrowingsatfairvalue) † 1,500.7p 1,058.6p 1,424.6p 858.4p Shareprice 1,472.0p 980.0p 1,484.0p 890.0p Duringtheyearto30April2022thepriceatwhichtheCompany’ssharepricetradedrelativetoitsnetassetvalue(withborrowingsatfairvalue † )ranged fromapremium † of4.0%toadiscount † of9.8%(yearto30April2021–premium † of7.0%toadiscount † of1.8%).Thepremium/(discount)graphson page1andthefollowingpagedonotreflecttheseextremes,beingplottedonamonthlybasis. Year to 30 April 2022 2021 Net return per ordinary share Revenue 3.67p 3.42p Capital (268.58p) 469.83p Total (264.91p) 473.25p * ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. † Alternativeperformancemeasure–seeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. # TheFTSEWorldIndex(insterlingterms)istheprincipalindexagainstwhichperformanceismeasured. ‡ Source:BaillieGifford/Refinitivandrelevantunderlyingindexproviders.Seedisclaimeronpage73. Pastperformanceisnotaguidetofutureperformance. One Year Summary * Strategic Report 16AnnualReport2022 ThefollowingchartsindicatehowaninvestmentinMonkshasperformedrelativeto itscomparativeindex * anditsunderlyingnetassetvalueoverthefiveyearperiodto 30April2022. Premium/(discount) to Net Asset Value † (plottedonamonthlybasis) 5 Year Total Return Performance † (figuresrebasedto100at30April2017) Relative Annual Net Asset Value and Share Price Total Returns † (relative to the FTSE World Index * total return) Source: Refinitiv/Baillie Gifford and relevant underlying index providers # . Dividends are reinvested. NAV total return †‡ Share price total return † 2018 Years to 30 April 2019 2020 2021 2022 40% 0% 20% (40%) (20%) 2017 Cumulative to 30 April 2019 2020 2021 2022 2018 Sour ce: Refinitiv and relevant underlying index providers # . NAV total return †‡ Share price total return † FTSE World Index * total return 70 130 250 100 160 190 220 Source: Refinitiv/Baillie Gifford. Monks premium/(discount) (after deducting borrowings at fair value) † Monks premium/(discount) (after deducting borrowings at par) † 2017 Years to 30 April 2019 2020 2021 2022 2018 (10%) 10% (5%) 0% 5% Five Year Summary Strategic Report Annual Net Asset Value and Share Price Total Returns † Source: Refinitiv/Baillie Gifford. Dividends are reinvested. NAV total return †‡ Share price total return † 2018 Years to 30 April 2019 2020 2021 2022 60% 0% 30% (30%) The Monks Investment Trust PLC 17 Ten Year Summary * Revenue Gearing Ratios Year to 30 April Gross revenue £’000 Available for ordinary shareholders £’000 Revenue earnings per ordinary share ‡ p Dividend paid and proposed per share net p Ongoing * charges ¶ % Gearing # % Potential gearing #§ % 2012 31,424 13,889 5.35 3.95 0.63 (7) 16 2013 22,983 11,778 4.68 3.95 0.60 1 8 2014 21,585 11,181 4.87 3.95 0.57 (1) 4 2015 20,215 10,549 4.74 3.95 0.58 7 12 2016 15,149 4,954 2.31 1.50 0.59 7 8 2017 17,593 5,043 2.36 1.25 0.59 7 8 2018 19,759 5,588 2.61 1.40 0.52 5 6 2019 23,268 7,186 3.30 1.85 0.50 6 7 2020 26,691 9,319 4.24 2.50 0.48 6 7 2021 22,529 7,801 3.42 2.00 0.43 1 4 2022 27,811 8,644 3.67 2.35 0.40 7 9 Cumulative Performance (taking 2012 as 100) At 30 April NAV per share (fair) * NAV total return ^ (fair) * Share price Share price total * return ^ Comparative Index ^ Comparative Index total return ^ Revenue earnings per share Dividend paid and proposed per share (net) Retail price index ^ 2012 100 100 100 100 100 100 100 100 100 2013 107 108 105 106 118 121 87 100 103 2014 111 113 109 112 123 130 91 100 105 2015 124 128 129 133 142 153 89 100 106 2016 123 127 126 131 139 154 43 38 108 2017 172 178 193 202 177 202 44 32 112 2018 198 206 232 243 186 217 49 35 115 2019 222 231 261 274 202 242 62 47 119 2020 229 239 270 284 196 239 79 63 121 2021 355 371 412 435 257 321 64 51 124 2022 287 301 310 328 267 340 69 59 138 Compound annual returns 5year 10.9% 11.1% 10.0% 10.2% 8.5% 11.0% 9.2% 13.5% 4.3% 10year 11.1% 11.7% 12.0% 12.6% 10.3% 13.0% (3.7%) (5.1%) 3.3% * ForadefinitionoftermsusedseeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76 † Shareholders’fundspersharehasbeencalculatedafterdeductingborrowingsatbookvalue(seenote15onpage57).Netassetvalue(NAV)persharehasbeencalculated afterdeductingborrowingsateitherparvalueorfairvalue.SeeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76. # AlternativePerformanceMeasure.SeeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76 ‡ Thecalculationofrevenueearningspershareisbasedontherevenuefromordinaryactivitiesaftertaxationandtheweightedaveragenumberofordinarysharesinissue(see note7onpage53). ¶ Calculatedastotaloperatingcostsdividedbyaveragenetassetvalue(withdebtatfairvalue)inaccordancewithAICguidelines. § Totalborrowingsexpressedasapercentageofshareholders’funds(seeGlossaryofTermsandAlternativePerformanceMeasuresonpages74to76). ^ Source:Refinitivandrelevantunderlyingindexproviders.Seedisclaimeronpage73. Capital At 30 April Total assets * £’000 Borrowings £’000 Shareholders’ funds * £’000 Shareholders’ funds per share † p NAV per share † (par) p NAV per share † (fair) p Share price p Premium/ * (discount) # (par) % Premium/ * (discount) # (fair) % 2012 1,149,366 159,647 989,719 386.4 386.3 382.8 338.5 (12.4) (11.6) 2013 1,065,906 79,679 986,227 410.4 410.2 408.1 355.0 (13.5) (13.0) 2014 1,012,608 39,712 972,896 426.9 426.8 425.2 370.0 (13.3) (13.0) 2015 1,147,620 124,029 1,023,591 478.4 478.3 476.0 435.1 (9.0) (8.6) 2016 1,096,804 85,855 1,010,949 472.5 472.4 470.1 425.3 (10.0) (9.5) 2017 1,521,130 107,056 1,414,074 660.9 660.8 656.8 653.0 (1.2) (0.6) 2018 1,759,541 103,007 1,656,534 762.9 762.8 759.0 785.0 2.9 3.4 2019 2,001,977 139,162 1,862,815 852.2 852.1 848.9 883.0 3.6 4.0 2020 2,107,386 143,762 1,963,624 878.4 878.3 875.6 914.0 4.1 4.4 2021 3,344,768 139,788 3,204,980 1,355.4 1,355.3 1,358.1 1,396.0 3.0 2.8 2022 2,693,990 214,826 2,479,164 1,089.0 1,089.0 1,099.8 1,051.0 (3.5) (4.4) Strategic Report Pastperformanceisnotaguidetofutureperformance. 18AnnualReport2022 Business Model Business and Status TheMonksInvestmentTrustPLC(‘theCompany’)isapublic companylimitedbysharesandisincorporatedinEnglandand Waleswithitsregisteredofficeaddressc/oComputershare InvestorServicesPLC,MoorHouse,120LondonWall,London EC2Y5ET.TheCompanyisaninvestmentcompanywithinthe meaningofsection833oftheCompaniesAct2006andcarries onbusinessasaninvestmenttrust.InvestmenttrustsareUK publiclistedcompaniesandtheirsharesaretradedonthe LondonStockExchange.Theyinvestinaportfolioofassets inordertospreadrisk.TheCompanyhasafixedsharecapital although,subjecttoshareholderapprovalsoughtannually,itmay purchaseitsownsharesorissueshares.Thepriceofthe Company’ssharesisdetermined,likeotherlistedshares,by supplyanddemand. TheCompanyhasbeenapprovedasaninvestmenttrustby HMRevenue&CustomssubjecttotheCompanycontinuingto meettheeligibilityconditions.TheDirectorsareoftheopinionthat theCompanyhascontinuedtoconductitsaffairssoastoenable ittocomplywiththeongoingrequirementsofsection1158ofthe CorporationTaxAct2010andtheInvestmentTrust(Approved Company)(Tax)Regulations2011. TheCompanyisanAlternativeInvestmentFund(AIF)forthe purposesoftheUKAlternativeInvestmentFundManagers Regulations. Purpose TheMonksInvestmentTrustaimstodeliveraboveaverage long-termreturnsforshareholdersbykeepingfeesandcostslow andharnessingthelong-termgrowthpotentialofcompanies. Objective and Policy TheCompany’sobjectiveistoinvestgloballytoachievecapital growth.Thistakespriorityoverincomeanddividends. Monksseekstomeetitsobjectivebyinvestingprincipallyina portfolioofglobalquotedequities.Equitiesareselectedfortheir inclusionwithintheportfoliosolelyonthebasisofthestrengthof theinvestmentcase. Therearenolimitstogeographicalorsectorexposures,butthese arereportedto,andmonitoredby,theBoardinordertoensure thatadequatediversificationisachieved.Thenumberofholdings inequitiestypicallyrangesfrom70to200.Atthefinancialyear end,theportfoliocontained116equityholdings.Aportfolio reviewbytheinvestmentmanagersisgivenonpages5to8and theinvestmentsheldattheyearendarelistedonpages12to14. Investmentmayalsobemadeinfunds(openandclosed-ended) includingthosemanagedbyBaillieGifford&Co.Themaximum permittedinvestmentinUKlistedinvestmentcompaniesin aggregateis15%ofgrossassets.Assetclassesotherthan quotedequitiesmaybepurchasedfromtimetotimeincluding fixedinterestholdings,unquotedsecuritiesandderivatives. TheCompanymayusederivativesforthepurposeofefficient portfoliomanagement(includingreducing,transferringor eliminatinginvestmentriskinitsinvestmentsandprotection againstcurrencyrisk)andtoachievecapitalgrowth. Whilethereisacomparativeindexforthepurposeofmeasuring performance,noattentionispaidtothecompositionofthisindex whenconstructingtheportfolio;theportfoliomay,therefore,differ substantiallyfromthatoftheindex.Along-termviewistakenand theremaybeperiodswhenthenetassetvaluepersharedeclines bothinabsolutetermsandrelativetothecomparativeindex. Paymentofdividendsissecondarytoachievingcapitalgrowth. Thesharesarenotconsideredtobeasuitableinvestmentfor thoseseekingaregularorrisingincome. Borrowingsareinvestedinequitiesandotherassetclasseswhen thisisconsideredtobeappropriateoninvestmentgrounds. Gearinglevels,andtheextentofequitygearing,arediscussedby theBoardandinvestmentmanagersateveryBoardmeetingand adjustedaccordinglywithregardtotheoutlook.Newborrowings willnotbetakenoutifthistakesthelevelofeffectiveequity gearingtoover30%ofshareholders’funds.Equityexposuremay, onoccasions,bebelow100%ofshareholders’funds. Culture and Values Inthecontextofacompanywithnoemployees,cultureand valuesareexpressedbytheCompany’sDirectorsandtheservice providerswithwhomshareholdersandotherstakeholders interact,andthroughtherelationshipsbetweentheBoardand thoseserviceproviders,includingtheManagers.Asnotedin moredetailinthesection172statementonpages21and22 theBoardseekstoengagewithitsManagersandotherservice providersinacollaborativeandcollegiatemanner,andtomaintain thehigheststandardsofbusinessconduct. Performance AteachBoardmeeting,theDirectorsconsideranumberof performancemeasurestoassesstheCompany’ssuccessin achievingitsobjectives. Key Performance Indicators TheBoardusesperformanceindicators(KPIs)tomeasurethe progressandperformanceoftheCompanyovertimewhen dischargingitsdutiesassetoutonpage28andevaluatingthe Managersasnotedonpage24.TheseKPIsareestablished industrymeasuresandareasfollows: — themovementinnetassetvalueperordinaryshareon atotalreturnbasis; — themovementinthesharepriceonatotalreturnbasis; — thepremium/discount;and — ongoingcharges. AnexplanationofthesemeasurescanbefoundintheGlossary ofTermsandAlternativePerformanceMeasuresonpages74to 76.Theone,fiveandtenyearrecordsoftheKPIsareshownon pages15to17. Inadditiontotheabove,theBoardalsohasregardtothetotal returnoftheCompany’sprincipalcomparativeindex(FTSEWorld Indexinsterlingterms)andconsiderstheperformanceof comparablecompanies. Strategic Report Business Review The Monks Investment Trust PLC 19 Borrowings TheCompany’sborrowingsat30April2022comprised: £40million6 3 / 8%debenturestockrepayableinMarch2023 (30April2021–£40million);£60million1.86%SeriesANotes repayablein2054(30April2021–£60million);£40million1.77% SeriesBNotesrepayablein2045(30April2021–£40million); and£75millionunderthe£150millionfloatingratefacilitywith NationalAustraliaBank(30April2021–nil).Furtherdetailsofthe Company’sborrowingsaresetoutinnotes11and12onpages 55and56anddetailsoftheCompany’sgearinglevelsare includedintheChairman’sStatementonpage2andtheTenYear Summaryonpage17. Principal and Emerging Risks Ase xplainedonpage30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.Adescriptionoftheserisksandhowtheyare beingmanagedormitigatedissetoutbelow. TheBoardconsiderstheongoingCovid-19pandemic,geopolitical tensionsarisingfromtheRussianinvasionofUkraine,andthe impactofBrexit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. Financial 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58to63.TheBoardhas,inparticular,consideredthe impactofheightenedmarketvolatilityduringtheCovid-19 pandemicandoverrecentmonthsowingtomacroeconomicand geopoliticalconcerns,includingtheRussia-Ukraineconflict.To mitigatetheserisks,thecompositionanddiversificationofthe portfoliobygeography,industry,growthcategory,holdingsize andthematicriskcategoryareconsideredateachBoardmeeting alongwithsalesandpurchasesofinvestments.Individual investmentsarediscussedwiththeinvestmentmanagers togetherwiththeirgeneralviewsonthevariousinvestment marketsandsectors. Astrategymeetingisheldannually. Investment Strategy 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.Tomitigatethis risk,theBoardregularlyreviewsandmonitors:theCompany’s objectiveandinvestmentpolicyandstrategy;theinvestment portfolioandits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. Strategic Report Climate and Governance Risk–asinvestorsplaceincreased emphasisonEnvironmental,SocialandGovernance(ESG)issues, perceivedproblemson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 InvestmentManager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. ThisismitigatedbytheManager’sstrongESGstewardshipand engagementpolicies,whichhavebeenendorsedbythe Company,andwhicharefullyintegratedintotheinvestment process,aswellastheextensiveup-frontandongoingdue diligencewhichtheInvestmentManagerundertakesoneach investeecompany.Thisduediligenceincludesassessmentof therisksinherentinclimatechange(seepage32). Regulatory Risk–failuretocomplywithapplicablelegaland regulatoryrequirementssuchasthetaxrulesforinvestment trustcompanies,theFCA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.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.Majorregulatory changecouldimposedisproportionatecomplianceburdenson theCompany.Insuchcircumstancesrepresentationismade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TransparencyDirectiveandtheMarketAbuseDirectivewith referencetoinsideinformation. Custody and Depositary Risk–safecustodyoftheCompany’s assetsmaybecompromisedthroughcontrolfailuresbythe Depositary,includingbreachesofcybersecurity.Tomitigatethis risk,theBoardreceivessix-monthlyreportsfromtheDepositary confirmingsafecustodyoftheCompany’sassetsheldbythe Custodian.Cashandportfolioholdingsareindependentlyreconciled totheCustodian’srecordsbytheManagers.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. Operational Risk–failureofBaillieGifford’ssystemsorthoseof otherthirdpartyserviceproviderscouldleadtoaninabilityto provideaccuratereportingandmonitoringoramisappropriation ofassets.Tomitigatethisrisk,BaillieGiffordhasacomprehensive businesscontinuityplanwhichfacilitatescontinuedoperationof thebusinessintheeventofaservicedisruption(includingany disruptionresultingfromtheCovid-19pandemic)ormajordisaster. BaillieGiffordstaffcontinuedtoworkfromhometomaintaina business-as-usualservicethroughouttheCovid-19pandemic. 20AnnualReport2022 FollowingtheremovalofCovid-19restrictionsbytheScottish andUKgovernments,ahybridmodelisnowoperating,withstaff determiningthemostappropriatesplitbetweenworkingfrom homeandworkingintheoffice,whichensuresongoingresilience. TheBoardreviewsBaillieGifford’sReportonInternalControlsand thereportsbyotherthirdpartyprovidersarereviewedbyBaillie GiffordonbehalfoftheBoard.Theotherkeythirdpartyservice providershavenotexperiencedsignificantoperationaldifficulties affectingtheirrespectiveservicestotheCompany. Discount 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.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whendeemedbytheBoardtobeinthebestinterests oftheCompanyanditsshareholders. Political and Associated Economic Risk –politicalchange inareasinwhichtheCompanyinvestsormayinvestmay increasinglyhavepracticalconsequencesfortheCompany. Tomitigatethisrisk,developmentsarecloselymonitoredand consideredbytheBoard.TheBoardhasparticularregardto repercussionsfromtheRussianinvasionofUkraine,andongoing tensionsbetweentheUSandChina,andmonitorsportfolio diversificationbyrevenuestreamaswellasbyinvestee companies’primarylocation,tomitigateagainstthenegative impactofmilitaryactionortradebarriers. Leverage 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extent 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.Tomitigatethisriskall borrowingsrequirethepriorapprovaloftheBoardandleverage levelsarediscussedbytheBoardand investmentmanagers at everymeeting.Covenantlevelsaremonitoredregularly.The majorityoftheCompany’sinvestmentsareinquotedsecurities thatarereadilyrealisable.Furtherinformationonleveragecanbe foundonpage71 andintheGlossaryofTermsandAlternative Performancemeasuresonpages74to76 . Emerging Risks–asexplainedonpage30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.TheBoardconsidersthatthekeyemerging risksarisefromtheinterconnectednessofglobaleconomies and therelatedexposureoftheinvestmentportfoliotoemerging threatssuchasthesocietalandfinancialimplicationsofthe escalationoftheRussia-Ukrainemilitaryconflict,cyberrisk, and newcoronavirusvariantsorsimilarpublichealththreats. ThesearemitigatedbytheInvestmentManager’scloselinks to theinvesteecompaniesandtheirabilitytoaskquestionson contingencyplans.TheInvestmentManagerbelievestheimpact ofsucheventsmaybetoslowthepaceofgrowthratherthanto invalidatetheinvestmentrationaleoverthelongterm. Strategic Report Viability Statement Havingregardtoprovision31oftheUKCorporateGovernance Code,theDirectorshaveassessedtheprospectsofthe Companyoverathreeyearperiod.TheDirectorsbelieve,having takenintoaccountanumberoffactorsincludingtheinvestment managers’investmenthorizon,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19and20),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debenturestockrepayablein2023,revolvingcreditfacility expiringin2024,andloannotesrepayablein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 duringthisperiodofhybridworkingasaresultoftheongoing Covid-19pandemic.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theriskoffurthermarketdeteriorationresulting fromtheCovid-19pandemicandincreasinggeopoliticalconcerns. 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threeyears. The Monks Investment Trust PLC 21 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anddebenturestockholders;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. 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.Under normalcircumstancesitalsoallowsshareholderstheopportunity tomeetwiththeBoardandManagersandraisequestionsand concerns.Whilethe2021AnnualGeneralMeetingwasclosed, inresponsetorapidlyrisinginfectionratesassociatedwiththe Covid-19Omicronvariant,shareholderquestionswereinvited andrespondedtobyemail,andaManagers’presentationwas publishedontheCompany’spageoftheManagers’website, inordertomaintainshareholdercommunicationdespitethe restrictionsonphysicalgatherings.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. TheBoardseekstoengagewithitsManagersandotherservice providersinacollaborativeandcollegiatemanner,encouraging openandconstructivediscussionanddebate,whilst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andstockholdersarebestservedbykeepingcost levelsproportionateandcompetitive,andbymaintainingthe higheststandardsofbusinessconduct. WhilsttheCompany’soperationsarelimited,asthirdpartyservice providersconductallsubstantiveoperations,theBoardisaware 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,includingtheimpactofclimate change,isanimportantpartofitsresponsibilitytoallstakeholders andthatproperconsiderationofESGfactorssitsnaturallywith Monks’longstandingaimofprovidingasustainablebasisfor addingvalueforshareholders.TheBoard’sreviewoftheManagers includesanassessmentoftheirESGapproachanditsapplication inmakinginvestmentdecisions.TheBoardsupportsthe Managers’Long-termPerspectiveassetoutintheirCore InvestmentBeliefsonpage4andregularlyreviewsGovernance Engagementreports,whichdocumenttheManagers’interactions withinvesteecompaniesonESGmatters.TheCompany’sAnnual StewardshipReportispublishedontheManagers’websiteat monksinvestmenttrust.co.uk. 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: — thedecisiontocommencearecruitmentprocessforanew Director,seekingtoidentifycandidatesthatmeetthe NominationCommittee’sobjectiveofdevelopingadiverse pipelineforBoardsuccession; — therenewaloftheunsecuredfloatingraterevolvingfacility withNationalAustraliaBankLimited,andincreasethereof fromanavailablecommitmentof£100millionto£150million, providingtheCompanywiththeabilitytosupplementits long-termfixedborrowingswithshort-termflexible borrowings,inordertorespondrapidlytomarketconditions; — thebuyingbackofover£8.8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enhance NAV/shareforremainingshareholders;and Strategic Report 22AnnualReport2022 — thedecisiontodeclareadividendof2.35p,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. Employees, Human Rights and Community Issues TheBoardrecognisestherequirementtoprovideinformation aboutemployees,humanrightsandcommunityissues.Asthe Companyhasnoemployees,allitsDirectorsarenon-executive andallitsfunctionsareoutsourced,therearenodisclosuresto bemadeinrespectofemployees,humanrightsandcommunity issues. Gender Representation TheBoardcurrentlycomprisesfiveDirectors,threemaleand twofemaleandcomplieswiththeHamptonAlexandertargetof 33%femalemembershipandtheFTSEWomenLeaderstargetof 40%.GiventhesmallsizeoftheBoard,however,andambitions forfurtherrecruitment,whiletheBoardwillaimtomeettarget diversitycriteriaoverthelongterm,theremaybepointsatwhich itdoesnot.TheCompanyhasnoemployees.TheBoard’spolicy ondiversityissetoutonpage28. Environmental, Social and Governance Policy DetailsoftheCompany’spolicyonsociallyresponsibleinvestment canbefoundunderCorporateGovernanceandStewardshipon page31. TheCompanyconsidersthatitdoesnotfallwithinthescopeof theModernSlaveryAct2015anditisnot,therefore,obligedto makeaslaveryandhumantraffickingstatement.Inanyevent, theCompanyconsidersitssupplychainstobeoflowriskasits suppliersaretypicallyprofessionaladvisers.Astatementbythe ManagersundertheActhasbeenpublishedontheManagers’ websiteatbailliegifford.com. Future Developments of the Company TheoutlookfortheCompanyisdependenttoasignificantdegree oneconomiceventsandthefinancialmarkets.Potentialthreats arediscussedinthePrincipalRisksanalysisonpages19and20 andfactorswhichtheBoardconsidertoindicatetheCompany’s positiveprospectsandfinancialhealtharediscussedinthe ViabilityStatementonpage20.Furthercommentsontheoutlook fortheCompanyanditsinvestmentportfolioaresetoutinthe Chairman’sStatementonpages2and3andtheManagers’ Reportonpages5to8. TheStrategicReportwhichincludespages2to22wasapproved by theBoardofDirectorsandsignedonitsbehalfon20June2022. KSSternberg Chairman Strategic Report The Monks Investment Trust PLC 23 Directors KS Sternberg KarlSternbergwasappointedaDirectorin2013andbecame Chairmanin2020.HeworkedforMorganGrenfellAsset Management(ownedbyDeutscheBank)from1992to2005 inavarietyofroles,ultimatelyasthechiefinvestmentofficerof DeutscheAssetManagementLimited.Heleftthatroleto establishOxfordInvestmentPartners,aninvestmentmanagement companyforagroupofOxfordcolleges,wherehewaschief executiveofficeruntil2013.HeisadirectorofJPMorganElect Plc,HeraldInvestmentTrustplc,JupiterFundManagementplc andClipstoneLogisticsREITplc. CM Boyle ClaireBoylewasappointedaDirectorin2020.Havingqualified asacharteredaccountantwithCoopers&Lybrand,whereshe specialisedinlitigationsupportandforensicaccounting, MsBoylethenspentthirteenyearsworkinginequityinvestment managementfor:RobertFlemingInvestmentManagement; AmericanExpressAssetManagement;andlatterlyOxburgh PartnersLLP,whereshewasapartnerwithresponsibilityfortheir EuropeanEquityHedgeFund.Sheisanon-executivedirectorand chairoftheauditcommitteeofAberdeenJapanInvestmentTrust PLC,anon-executivedirectorandchairoftheauditcommitteeof FidelitySpecialValuesPlc,andthenon-executivechairofLife ScienceREITplc. BJ Richards BelindaRichardswasappointedaDirectorin2016.Sheisa formerseniorpartneratDeloitteLLPwithathirtyyearcareer specialisinginbusinessoperationsandstrategydevelopment withaparticularfocusontheFinancialServicesandConsumer Productssectors.Sheiscurrentlythechairoftheauditcommittee ofSchroderJapanGrowthFundplcandAvastplcandanon- executivedirectorofPhoenixGroupHoldings.Inaddition,sheis atrusteeoftheYouthSportTrust. Professor Sir Nigel Shadbolt ProfessorSirNigelShadboltwasappointedaDirectorin2017. HeisPrincipalofJesusCollege,Oxford,ProfessorialResearch FellowintheDepartmentofComputerScience,Universityof OxfordandavisitingProfessorofArtificialIntelligenceatthe UniversityofSouthampton.Hespecialisesinopendataand artificialintelligenceandiscurrentlyalsochairmanoftheOpen DataInstitute. Directors and Management JJ Tigue JeremyTiguewasappointedaDirectorin2014.Hebecame ChairmanoftheAuditCommitteein2015andSeniorIndependent Directorin2019.MrTiguewasthefundmanagerofForeign& ColonialInvestmentTrustPLCfrom1997toJune2014.Heisa directorofAberdeenStandardEquityIncomeTrustPLCandwasa directorofTheMercantileInvestmentTrustplc.Hewasadirector oftheAssociationofInvestmentCompaniesfrom2003to2013. AlloftheDirectorsaremembersoftheManagementEngagement CommitteeandtheRemunerationCommittee,andallare membersoftheAuditCommitteewiththeexceptionof MrKSSternberg. Managers and Secretaries TheCompanyhasappointedBaillieGifford&CoLimited,awholly ownedsubsidiaryofBaillieGifford&Co,asitsAlternativeInvestment FundManager(‘AIFM’)andCompanySecretary.BaillieGifford& CoLimitedhasdelegatedportfoliomanagementservicestoBaillie Gifford&Co.BaillieGifford&Coisaninvestmentmanagement firmformedin1927outofthelegalfirmBaillie&Gifford,WS, whichhadbeeninvolvedininvestmentmanagementsince1908. BaillieGiffordisoneofthelargestinvestmenttrustmanagersin theUKandcurrentlymanagesthirteenclosed-endedinvestment companies.BaillieGiffordalsomanagesopenendedinvestment companies,togetherwithinvestmentportfoliosonbehalfof pensionfunds,charitiesandotherinstitutionalclients,bothinthe UKandoverseas.Fundsunderthemanagementoradviceof BaillieGiffordtotalaround£230billion.BasedinEdinburgh,itis oneoftheleadingprivatelyownedinvestmentmanagementfirms intheUK,with51partnersandastaffofaround1,700. TheMonksinvestmentmanagersareSpencerAdairandMalcolm MacColl.SpencerandMalcolmarebothpartnersatBaillieGifford andhavebeenworkingtogethersince2005.Malcolmisoneof BaillieGifford’stwojointseniorpartners. BaillieGifford&CoandBaillieGifford&CoLimitedareboth authorisedandregulatedbytheFinancialConductAuthority. Governance Report 24AnnualReport2022 Directors’ Report TheDirectorspresenttheirReporttogetherwiththeaudited FinancialStatementsoftheCompanyfortheyearto30April2022. Corporate Governance TheCorporateGovernanceReportissetoutonpages28to32 andformspartofthisReport. Managers and Company Secretaries BaillieGifford&CoLimited,awhollyownedsubsidiaryofBaillie Gifford&Co,hasbeenappointedastheCompany’sAlternative InvestmentFundManager(‘AIFM’)andCompanySecretaries. BaillieGifford&CoLimitedhasdelegatedportfoliomanagement servicestoBaillieGifford&Co.Dealingactivityandtransaction reportinghavebeenfurthersub-delegatedtoBaillieGifford OverseasLimitedandBaillieGiffordAsia(HongKong)Limited. TheInvestmentManagementAgreementsetsoutthematters overwhichtheManagershaveauthorityinaccordancewiththe policiesanddirectionsof,andsubjecttorestrictionsimposedby, theBoard.TheInvestmentManagementAgreementisterminable onnotlessthansixmonths’notice.Compensationfeeswould onlybepayableinrespectofthenoticeperiodifterminationwere tooccursooner.Theannualmanagementfeeis0.45%onthe first£750millionoftotalassets,0.33%onthenext£1billionof totalassetsand0.30%ontheremainingtotalassets(seenote 3onpage51formoredetails). TheBoardconsiderstheCompany’sinvestmentmanagement andsecretarialarrangementsonanongoingbasisandaformal reviewisconductedbytheManagementEngagementCommittee annually.TheCommitteeconsidered,amongstothers,the followingtopicsinitsreview:thequalityofthepersonnelassigned tohandletheCompany’saffairs;theinvestmentprocessand theresultsachievedtodate;investmentperformance;the administrativeservicesprovidedbytheSecretariesandthequality ofinformationprovided;themarketingeffortsundertakenbythe Managers;therelationshipwiththeManagers;and,comparative peergroupchargesandfees.Followingthemostrecentreview, theManagementEngagementCommitteeconcludedthatthe continuingappointmentofBaillieGifford&CoLimitedasAIFM andthedelegationofinvestmentmanagementservicesto BaillieGifford&Coandthefurthersub-delegationofdealing activityandtransactionreportingtoBaillieGiffordOverseas Limited,onthetermsagreed,isintheinterestsofshareholders asawhole.ThiswassubsequentlyapprovedbytheBoard. Depositary TheBankofNewYorkMellon(International)Limitedhasbeen appointedastheCompany’sDepositoryinaccordancewith the requirementsoftheUKAlternativeInvestmentFundManagers (AIFM)Regulations. TheCompany’sDepositaryalsoactsastheCompany’s Custodian.TheDepositary’sresponsibilitiesincludecash monitoring,safekeepingoftheCompany’sfinancialinstruments, verifyingownershipandmaintainingarecordofotherassetsand monitoringtheCompany’scompliancewithinvestmentlimits andleveragerequirements. Directors InformationabouttheDirectorswhowereinofficeattheyear endanduptothedatetheFinancialStatementsweresigned, includingtheirrelevantexperience,canbefoundonpage23. AllDirectorswillretireattheAnnualGeneralMeetingandall offer themselvesforre-election.Followingformalperformance evaluation,conductedinternallybywayofquestionnaireand interview,theChairmanconfirmsthattheBoardconsidersthat the Directors’performancecontinuestobeeffectiveandthatthey remaincommittedtotheCompany.TheBoardtherefore recommendstheirre-electiontoshareholders. Directors’ Indemnity and Insurance TheCompanyhasenteredintoqualifyingthirdpartydeedsof indemnityinfavourofeachofitsDirectors.Thedeeds,which wereinforceduringtheyearto30April2022anduptothedate ofapprovalofthisreport,coveranyliabilitiesthatmayarisetoa thirdparty,otherthantheCompany,fornegligence,defaultor breachoftrustorduty.TheDirectorsarenotindemnifiedin respectofliabilitiestotheCompany,anyregulatoryorcriminal fines,anycostsincurredinconnectionwithcriminalproceedings inwhichtheDirectorisconvictedorcivilproceedingsbrought bytheCompanyinwhichjudgementisgivenagainsthim/her. Inaddition,theindemnitydoesnotapplytoanyliabilitytothe extentthatitisrecoveredfromanotherperson.TheCompany alsomaintainsDirectors’andOfficers’liabilityinsurance. Conflicts of Interest EachDirectorsubmitsalistofpotentialconflictsofinteresttothe Boardonanannualbasis.TheBoardconsidersthesecarefully, takingintoaccountthecircumstancessurroundingthemand, ifconsideredappropriate,theyareapprovedforaperiodofone year.Havingconsideredthelistsofpotentialconflictstherewere noactualdirectorindirectinterestsofaDirectorwhichconflicted withtheinterestsoftheCompany. Dividends TheBoardrecommendsafinaldividendof2.35pperordinary sharefortheyear.Ifapproved,therecommendedfinaldividend ontheordinaryshareswillbepaidon9September2022to shareholdersontheregisteratthecloseofbusinesson29July 2022.Theex-dividenddateis28July2022.TheCompany’s RegistraroffersaDividendReinvestmentPlan(seepage71)and thefinaldateforelectionsforthisdividendis18August2022. Share Capital Capital Structure TheCompany’scapitalstructureconsistsof236,453,859ordinary sharesof5peachasat30April2022,comprising227,645,309 sharesinissueand8,808,550sharesheldintreasury.Thereareno restrictionsconcerningtheholdingortransferoftheCompany’s ordinarysharesandtherearenospecialrightsattachedtoanyof theshares. Dividends Theordinarysharescarryarighttoreceivedividends.Interim dividendsaredeterminedbytheDirectors,whereastheproposed finaldividendrequiresshareholderapproval.Sharesheldin treasuryarenotentitledtodividends. Governance Report The Monks Investment Trust PLC 25 Capital Entitlement Onawindingup,aftermeetingtheliabilitiesoftheCompany,the surplusassetswillbepaidtoordinaryshareholdersinproportion totheirshareholdings. Voting Eachordinaryshareholderpresentinpersonorbyproxyis entitledtoonevoteonashowofhandsand,onapoll,toone voteforeveryshareheld. Informationonthedeadlinesforproxyappointmentscanbe foundonpages66to68. Major Interests in the Company’s Shares TheCompanyhasnotreceivedanynotificationsofmajorinterests inthevotingrightsoftheCompanyasat30April2022.There havebeennonotificationsofmajorinterestsintheCompany’s sharesintimatedupto16June2022. Annual General Meeting Issuance of Shares AtthelastAnnualGeneralMeeting,theDirectorsweregranted shareholders’approvalforageneralauthoritytoallotsharesand alsoanauthoritytoissuesharesorsellsharesheldintreasuryon anonpre-emptivebasis(withoutfirstofferingsuchsharesto existingshareholderspro-ratatotheirexistingholdingsuptoa maximumnominalamountof£1,182,269.25).Duringtheyearto 30April2022theCompanyissuednoshares.Between1May and 16June2022,theCompanyissuednoshares. BothauthoritiesexpireattheforthcomingAnnualGeneralMeeting andtheDirectorsareseekingshareholders’approvaltorenew themforafurtheryear,asdetailedbelow. Resolution11intheNoticeofAnnualGeneralMeetingseeks ageneralauthorityfortheDirectorstoallotsharesuptoan aggregatenominalamountof£ 1,124,037.90 .Thisamount represents10%oftheCompany’stotalordinarysharecapitalin issueat 16 June2022andmeetsinstitutionalguidelines.This authoritywillcontinueuntiltheconclusionoftheAnnualGeneral Meetingtobeheldin2023orontheexpiryof15monthsfrom thepassingoftheresolutions,ifearlier. Resolution12,whichisproposedasaspecialresolution,seeks authorityfortheDirectorstoissuesharesorsellsharesheldin treasuryonanonpre-emptivebasisforcashuptoanaggregate nominalamountof£1,124,037.90(representing10%ofthe issuedordinarysharecapitaloftheCompanyasat 16 June 2022).Thisauthoritywillonlybeusedtoissuesharesorsell sharesfromtreasuryatapremiumtonetassetvalueonthebasis ofdebtvaluedatparvalueandonlywhentheDirectorsbelieve thatitwouldbeinthebestinterestsoftheCompanytodoso. ThisauthoritywillcontinueuntiltheconclusionoftheAnnual GeneralMeetingtobeheldin2023orontheexpiryof15months fromthepassingoftheresolutions,ifearlier. Purchase of Own Shares AtthelastAnnualGeneralMeetingtheCompanywasgranted authoritytopurchaseupto35,444,433ordinaryshares (equivalenttoapproximately14.99%ofitsissuedsharecapital), suchauthoritytoexpireattheAnnualGeneralMeetinginrespect oftheyearended30April2022.Duringtheyearto30April2022 theCompanyboughtbackatotalof8,808,550shares, representing3.7%oftheissuedsharecapitalat30April2021, atadiscounttonetassetvalue,on42separateoccasionsatan averagepriceof1,105.75pencepershareandatotalcostof £97,887,000.Thesesharesareheldintreasuryforreissue. Nosharesweresoldfromtreasuryduringtheyear,therefore 8,808,550shareswereheldintreasuryat30April2022.Inthe period1May2022to16June2022,afurther2,837,722shares wereboughtback.At16June202211,646,272shareswere heldintreasury.Theprincipalreasonforsharebuy-backsisto enhancenetassetvaluepershareforcontinuingshareholdersby purchasingsharesatadiscounttotheprevailingnetassetvalue. TheCompanymayholdbought-backshares‘intreasury’and then: (i) sellsuchshares(oranyofthem)forcash(oritsequivalent undertheCompaniesAct2006);or (ii) canceltheshares(oranyofthem). Shareswillonlybesoldfromtreasuryatapremiumtonetasset value. TheDirectorsareseekingshareholders’approvalattheAnnual GeneralMeetingtorenewtheauthoritytopurchaseupto14.99% oftheCompany’sordinarysharesinissueatthedateofpassing oftheresolution,suchauthoritytoexpireattheAnnualGeneral MeetingoftheCompanytobeheldinrespectoftheyearended 30April2023. InaccordancewiththeListingRules,themaximumprice (excludingexpenses)thatmaybepaidontheexerciseofthe authoritymustnotexceedthehigherof: (i) 5percent.abovetheaverageclosingpriceontheLondon StockExchangeofanordinaryshareoverthefivebusiness daysimmediatelyprecedingthedateofpurchase;and (ii) thehigherofthepriceofthelastindependenttradeandthe highestcurrentindependentbidforashareontheLondon StockExchange. Theminimumprice(exclusiveofexpenses)thatmaybepaidis 5ppershare.Purchasesofshareswillbemadewithinguidelines established,fromtimetotime,bytheBoard.TheCompanydoes nothaveanywarrantsoroptionsinissue.Yourattentionisdrawn toResolution13intheNoticeofAnnualGeneralMeetingon page66.Thisauthority,ifconferred,willbeexercisedonlyifto dosowouldresultinanincreaseinnetassetvalueperordinary sharefortheremainingshareholdersandifitisinthebest interestsofshareholdersgenerally. Governance Report 26AnnualReport2022 Adoption of New Articles of Association Resolution14,whichwillbeproposedasaspecialresolution,seeks shareholderapprovaltoadoptnewArticlesofAssociation(the ‘NewArticles’)inordertoupdatetheCompany’scurrentArticles ofAssociation(the‘ExistingArticles’).Theproposedamendments beingintroducedintheNewArticlesprimarilyrelatetochangesin lawandregulationanddevelopmentsinmarketpracticesincethe ExistingArticleswereadopted,andprincipallyinclude: (i) provisionsenablingtheCompanytoholdwhollyvirtual shareholdermeetingsusingelectronicmeans(aswellas physicalshareholdermeetingsandhybridmeetings); (ii) amendmentsinresponsetotherequirementsofthe AlternativeInvestmentFundManagersDirective(2011/61/EU) asincorporatedintoUKlawbytheEuropeanUnion (Withdrawal)Act2018; (iii) amendmentsinresponsetotheintroductionofinternational taxregimes(notablyFATCAandtheCommonReporting Standard)requiringtheexchangeofinformationwithtax authorities; (iv) increaseinthecaponDirectorsfeesto£400,000toallowfor recruitmentandpotentialoverlapastheyallowpossiblyless experiencedDirectorstimetobedinontheBoardbefore othersstanddown; (v) provisionswhichenabletheCompanytoholdshareholder meetingsacrosstwo(ormore)physicallocationsintheevent thatallshareholderscannotbeaccommodatedinasingle physicallocationonthedayofameeting; (vi)provisionswhichenabletheCompanytopostponea shareholdermeetingwheretheBoardconsidersthatitwould beimpracticalorundesirabletoholdthemeetingonthedate whichwasoriginallynotifiedtoshareholders; (vii)expandingthecircumstancesunderwhichthechairofa shareholdermeetingmayadjournthemeetingwithoutthe consentofthemeeting,includingwherethehealth,safetyor wellbeingofthoseentitledtoattendwouldbeputatriskby theirattendanceatthemeeting; (viii)provisionswhichrequireallDirectorstoretireateachAGM (and,iftheywish,toofferthemselvesforre-election)inline withtherecommendedcorporategovernanceregimeinthe UK,andprovisionsdealingwiththepotentialsituation wherebynoDirectorsarere-electedatanAGM; (ix)updatingtheprovisionsregardingthepaymentofdividendsto includetheuseofanyapprovedfundstransfersystemandto enabletheCompanytospecifywhichpaymentmethod(s)will beusedbytheCompanyinrespectofanydividend; (x) provisionswhichclarifythattheCompanymayestablisha capitalreserveandthat,subjecttotheprovisionsofthe CompaniesAct2006,capitalprofitsstandingtothecreditof thecapitalreservemaybeusedtofinancethepaymentof dividendsandsharebuybacks; (xi)updatingtheprovisionsregardingtheserviceofnoticesand otherinformationonshareholderstoreflectthevarious methodspermittedunderUKcompanylaw; (xii)removalofhistoricprovisionsrelatingtostocksandwarrants; and (xiii)simplifyingtheprocedureinrespectofuntracedshareholders byremovingtherequirementfortheCompanytopublish newspaperadvertisements. Asummaryoftheprincipalamendmentsbeingintroducedin theNewArticlesissetoutintheappendixtotheAGMNotice (onpages68and69ofthisdocument).Otheramendments, whichareofaminor,technicalorclarifyingnature,havenotbeen summarisedintheappendix. WhiletheNewArticles(ifadopted)wouldpermitshareholder meetingstobeconductedusingelectronicmeans,theDirectors havenopresentintentionofholdingavirtual-onlymeeting.These provisionswillonlybeusedwheretheDirectorsconsideritisin thebestofinterestsofshareholdersforhybridorvirtual-only meetingstobeheld.NothingintheNewArticleswillpreventthe Companyfromholdingphysicalshareholdermeetings. ThefulltermsoftheproposedamendmentstotheCompany’s ArticlesofAssociationareavailableattheofficesofDicksonMinto W.S.,Level13,BroadgateTower,20PrimroseStreet,LondonEC2A 2EWbetweenthehoursof9.00amand5.00pm(Saturdays, Sundaysandpublicholidaysexcepted)fromthedateoftheAGM Notice,andacopyoftheNewArticles,togetherwithacopy showingalloftheproposedchangestotheExistingArticles, willbeavailableforinspectionontheCompany’swebsite, monksinvestmenttrust.co.uk fromthedateoftheAGMNotice untilthecloseoftheAGM,andwillalsobeavailableforinspection atthevenueoftheAGMfrom15minutesbeforeandduring theAGM. Articles of Association TheCompany’sArticlesofAssociationmayonlybeamendedby specialresolutionatageneralmeetingofshareholders. Financial Instruments TheCompany’sfinancialinstrumentscompriseitsinvestment portfolio,cashbalances,borrowingsanddebtorsandcreditors thatarisedirectlyfromitsoperationssuchassalesandpurchases awaitingsettlementandaccruedincome.Thefinancialrisk managementobjectivesandpoliciesarisingfromitsfinancial instrumentsandtheexposureoftheCompanytoriskare disclosedinnote 19 totheFinancialStatements. Disclosure of Information to Auditor TheDirectorsconfirmthatsofaraseachoftheDirectorsisaware thereisnorelevantauditinformationofwhichtheCompany’s AuditorisunawareandtheDirectorshavetakenallthestepsthat theymightreasonablybeexpectedtohavetakenasDirectorsin ordertomakethemselvesawareofanyrelevantauditinformation andtoestablishthattheCompany’sAuditorisawareofthat information. Post Balance Sheet Events Subsequenttothe30April2022yearend,thenetassetvalue persharewithdebtatfairvaluefellby11.1%to977.8p(asat 16June2022)asmarketsreactedtomacroeconomicand geopoliticalconcerns. Governance Report The Monks Investment Trust PLC 27 Independent Auditor TheAuditor,Ernst&YoungLLP,iswillingtocontinueinoffice and,inaccordancewithsection489andsection491(1)ofthe CompaniesAct2006,resolutionsconcerningErnst&Young LLP’sreappointmentandremunerationwillbesubmittedtothe AnnualGeneralMeeting. Greenhouse Gas Emissions and Streamlined Energy & Carbon Reporting (‘SECR’) AlloftheCompany’sactivitiesareoutsourcedtothirdparties. TheCompanythereforehasnogreenhousegasemissionsto reportfromitsoperations,nordoesithaveresponsibilityforany otheremissionsproducingsourcesundertheCompaniesAct 2006(StrategicReportandDirectors’Reports)Regulations2013. Forthesamereasonsassetoutabove,theCompanyconsiders itselftobealowenergyuserundertheSECRregulationsand therefore,isnotrequiredtodiscloseenergyandcarbon information. Bribery Act TheCompanyhasazerotolerancepolicytowardsbriberyandis committedtocarryingoutbusinessfairly,honestlyandopenly. TheManagersalsoadoptazerotoleranceapproachandhave policiesandproceduresinplacetopreventbribery. Criminal Finances Act 2017 TheCompanyhasacommitmenttozerotolerancetowardsthe criminalfacilitationoftaxevasion. Recommendation TheDirectorsunanimouslyrecommendyouvoteinfavourof theresolutionstobeproposedattheAnnualGeneralMeeting asitistheirviewthattheresolutionsareinthebestinterestsof shareholdersasawhole. OnbehalfoftheBoard KSSternberg Chairman 20 June2022 Governance Report 28AnnualReport2022 Corporate Governance Report TheBoardiscommittedtoachievinganddemonstratinghigh standardsofCorporateGovernance.Thisstatementoutlineshow theprinciplesofthe2018UKCorporateGovernanceCode(the ‘Code’)whichcanbefoundatfrc.org.uk,andtherelevant principlesoftheAssociationofInvestmentCompanies(AIC) CodeofCorporateGovernancewereappliedthroughoutthe financialyear.TheAICCodeprovidesaframeworkofbest practiceforinvestmentcompaniesandcanbefoundat theaic.co.uk. Compliance TheFRChasconfirmedthatAICmembercompanieswhoreport againsttheAICCodewillbemeetingtheirobligationsinrelationto theUKCode(theAICCodecanbefoundattheaic.co.uk).The Companyhascompliedthroughouttheyearunderreviewwiththe relevantprovisionsoftheCodeandtherecommendationsofthe AICCode.TheCodeincludesprovisionsrelatingtotheroleofthe chiefexecutive,executivedirectors’remunerationandtheneedfor aninternalauditfunction.GiventhattheCompanyisanexternally- managedinvestmenttrust,theBoardconsiderstheseprovisions tobeinapplicabletotheCompany.Theneedforaninternalaudit functionspecifictotheCompanyisaddressedonpage33. The Board TheBoardhasoverallresponsibilityfortheCompany’saffairs, includingthedeterminationandembodimentofitscultureand values.Ithasanumberofmattersreservedforitsapproval includingstrategy,investmentpolicy,currencyhedging, borrowings,gearing,treasurymatters,dividendandcorporate governancepolicy.Aseparatestrategysessionisheldannually. TheBoardalsoreviewstheFinancialStatements,investment transactions,revenuebudgetsandperformance.Fullandtimely informationisprovidedtotheBoardtoenableittofunction effectivelyandtoallowDirectorstodischargetheirresponsibilities. TheBoardcurrentlycomprises five Directorsallofwhomare non-executive. TheChairmanisresponsiblefororganisingthebusinessof theBoard,ensuringitseffectivenessandsettingitsagenda. Theexecutiveresponsibilityforinvestmentmanagementhas beendelegatedtotheCompany’sAlternativeInvestmentFund Manager(‘AIFM’),BaillieGifford&CoLimited,and,inthecontext ofaBoardcomprisingonlynon-executiveDirectors,thereis nochiefexecutiveofficer. TheSeniorIndependentDirector(SID)isMrJJTigue,and, assuch,heisavailabletoshareholdersasanalternativetothe Chairmaniftheyhaveconcerns.TheSIDleadstheChairman’s performanceappraisalandchairstheNominationCommittee whenitconsiderstheChairman’ssuccession. TheDirectorsbelievethattheBoardhasabalanceofskillsand experiencethatenablesittoprovideeffectivestrategicleadership andpropergovernanceoftheCompany.Informationaboutthe Directors,includingtheirrelevantexperience,canbefoundon page23. ThereisanagreedprocedureforDirectorstoseekindependent professionaladvice,ifnecessary,attheCompany’sexpense. Diversity Policy AppointmentstotheBoardaremadeonmeritwithdueregard forthebenefitsofdiversity,includinggender,socialandethnic backgrounds,cognitiveandpersonalstrengths.Thepriorityin appointingnewDirectorsistoidentifythecandidatewiththebest rangeofskillsandexperiencetocomplementexistingDirectors. TheBoardthereforedoesnotconsideritappropriatetoset diversitytargets. Appointments to the Board FollowingtheNominationCommittee’sannualreviewofthe Board’scompositionandbearinginmindtheBoard’sambition todevelopadiversepipelineforsuccession,theCommittee determinedthatasearchshouldcommence,inordertoidentify acandidatewiththerequisiteskillsandexperienceandwith particularregardtotherecommendationsoftheParkerReview. OdgersBerndtsonhavebeenappointedtosearchforanew Director. ThetermsandconditionsofDirectors’appointmentsaresetout informallettersofappointmentwhichareavailableforinspection onrequest. ADirectorappointedduringtheyearisrequiredtoretireandseek electionbyshareholdersatthenextAnnualGeneralMeeting. InaccordancewiththeCode,allDirectorsofferthemselvesfor re-electionannually. Independence of Directors AlltheDirectorsareconsideredbytheBoardtobeindependentof theManagersandfreeofanybusinessorotherrelationshipwhich couldinterferewiththeexerciseoftheirindependentjudgement. TheDirectorsrecognisetheimportanceofsuccessionplanning forcompanyboardsandtheBoard’scompositionisreviewed annually.TheBoardisoftheviewthatlengthofservicewillnot necessarilycompromisetheindependenceorcontributionof directorsofaninvestmenttrustcompany,wherecontinuityand experiencecanbeabenefittotheBoard. Policy on Chairman’s Tenure TheBoardconsidersthatthetenureoftheChairshouldbe determinedprincipallybytheBoard’sroleinprovidingstrategic leadership,governance,challengeandsupporttotheManagers, whilstbalancingtheimportanceofindependence,refreshment anddiversitywithretentionofthecorporatememory.Itfirmly believesthatanappropriatecombinationofthesefactorsis essentialforaneffectiveBoard.This,attimes,willnaturallyresult insomelongerservingdirectors,includingtheChair.The NominationCommitteeoftheBoardconsiderslongterm successionplanningforthisroleaspartofitsbroaderremitto ensureanappropriatelevelofrefreshmentanddiversityonthe Board.Itdoesnotbelievetheimpositionofhardtimelimitstobe helpfulinrespectofthisrole,anymorethanforthetenureof Directorsoverall. Governance Report The Monks Investment Trust PLC 29 Meetings ThereisanannualcycleofBoardmeetingswhichisdesigned toaddress,inasystematicway,overallstrategy,reviewof investmentpolicy,investmentperformance,marketing,revenue budgets,dividendpolicyandcommunicationwithshareholders. TheBoardconsidersthatitmeetssufficientlyregularlyto dischargeitsdutieseffectively.Thetablebelowshowsthe attendancerecordforthecoreBoardandCommitteemeetings heldduringtheyear,excludingancillaryandsub-committee meetings.TheAnnualGeneralMeetingwasattendedbyall theDirectors. Directors’ Attendance at Meetings Board Audit Committee Management Engagement Committee Nomination Committee Number of meetings 4 2 1 1 CMBoyle 4 2 1 1 BJRichards 4 2 1 1 ProfessorSirNigelShadbolt 4  2 1 1 KSSternberg 4 2 * 1 1 JJTigue 4 2 1 1 * MrKSSternbergisnotamemberoftheAuditCommitteebut attendsbyinvitation. Performance Evaluation AnappraisaloftheChairman,eachDirectorandaperformance evaluationandreviewoftheBoardasawholeandtheAudit Committeewascarriedoutduringtheyear.Afterconsideringand respondingtoanevaluationquestionnaireeachDirectorhadan interviewwiththeChairman.TheChairman’sappraisalwasledby MrJJTigue,theSeniorIndependentDirector.Theappraisalsand evaluationsconsidered,amongstothercriteria,thebalanceof skillsoftheBoard,traininganddevelopmentrequirements,the contributionofindividualDirectorsandtheoveralleffectivenessof theBoardanditsCommittees.Followingthisprocessitwas concludedthattheperformanceofeachDirector,theChairman, theBoardanditsCommitteescontinuestobeeffectiveandthat eachDirectorandtheChairmanremaincommittedtothe Company.Foritsappraisalduring2021,theBoardsecuredthe servicesofLintstock,anindependentcorporateadvisorwhich hasnootherrelationshipwiththeCompanyoritsDirectors,in accordancewiththerequirementforFTSE350companiesto haveBoardevaluationsexternallyfacilitatedeverythreeyears. ExternalfacilitationwillnextbeconsideredforBoardevaluations in2024. AreviewoftheChairman’sandotherDirectors’commitments wascarriedoutandtheBoardissatisfiedthattheyarecapableof devotingsufficienttimetotheCompany. Induction and Training NewDirectorsareprovidedwithaninductionprogrammewhichis tailoredtotheparticularcircumstancesoftheappointee.Duringthe yearbriefingsonindustryandregulatorymatterswereprovidedto theBoardbytheManagersandSecretaries.Directorsreceive otherrelevanttrainingasnecessary. Management Engagement Committee TheroleoftheManagementEngagementCommitteeistoensure thattheManagerremainssuitabletomanagetheportfolio,that themanagementcontractiscompetitiveandreasonableforthe shareholders,andthattheCompanymaintainsappropriate administrativeandcompanysecretarialsupport.AllDirectorsare membersoftheManagementEngagementCommittee,whichis chairedbytheChairmanoftheBoard.TheBoardconsiderseach memberoftheCommitteetobeindependent.Todischargeits duties,theCommitteemetononeoccasionduringtheyearto consider:theperformanceandsuitabilityoftheManager;the termsandconditionsoftheAIFMAgreement,includingfees;and theCommittee’sTermsofReference.TheCommittee’sTermsof ReferenceareavailableonrequestfromtheCompanyandonthe Company’spageoftheManagers’website: monksinvestmenttrust.co.uk. Nomination Committee TheNominationCommitteeconsistsofalltheDirectorsandKarl SternbergistheChairmanoftheCommittee.TheCommittee meetsonanannualbasisandatsuchothertimesasmaybe required.TheCommitteehaswrittentermsofreferencewhich includereviewingthecompositionoftheBoard,identifyingand nominatingnewcandidatesforappointmenttotheBoard,Board appraisal,successionplanningandtraining.TheCommittee alsoconsiderswhetherDirectorsshouldberecommendedfor re-electionbyshareholders.TheCommittee’sTermsofReference areavailableonrequestfromtheCompanyandonthe Company’spageoftheManagers’website: monksinvestmenttrust.co.uk. Remuneration AstheBoardconsidersallitsmemberstobeindependent,and alltheDirectorsarenon-executive,theBoarddoesnotconsider itnecessarytoformaseparateRemunerationCommittee. Directors’feesareconsideredbytheBoardasawholewithin thelimitsapprovedbyshareholders.TheCompany’spolicyon remunerationissetoutintheDirectors’RemunerationReport onpages35and36. Audit Committee ThereportoftheAuditCommitteeissetoutonpages33and34. Governance Report 30AnnualReport2022 Internal Controls and Risk Management TheDirectorsacknowledgetheirresponsibilityfortheCompany’s riskmanagementandinternalcontrolsystemsandforreviewing theireffectiveness.Thesystemsaredesignedtomanagerather thaneliminatetheriskoffailuretoachievebusinessobjectives andcanonlyprovidereasonablebutnotabsoluteassurance againstmaterialmisstatementorloss. TheBoardconfirmsthatthereisanongoingprocessfor identifying,evaluatingandmanagingthesignificantrisksfacedby theCompanyinaccordancewiththeFRCguidance‘Guidanceon RiskManagement,InternalControlandRelatedFinancialand BusinessReporting’. Thepracticalmeasuresinrelationtothedesign,implementation andmaintenanceofcontrolpoliciesandprocedurestosafeguard theCompany’sassetsandtomanageitsaffairsproperly, includingthemaintenanceofeffectiveoperationalandcompliance controlshavebeendelegatedtotheManagersandSecretaries. TheBoardoverseesthefunctionsdelegatedtotheManagers andSecretariesandthecontrolsmanagedbytheAIFMin accordancewiththeUKAlternativeInvestmentFundManagers Regulations(asdetailedbelow).BaillieGifford&Co’sInternal AuditandComplianceDepartmentsandtheAIFM’spermanent riskfunctionprovidetheAuditCommitteewithregularreportson theirmonitoringprogrammes.Thereportingproceduresforthese departmentsaredefinedandformalisedwithinaservicelevel agreement.BaillieGifford&Coconductsanannualreviewofits systemofinternalcontrolswhichisdocumentedwithinaninternal controlsreportwhichcomplieswithISAE3402–Assurance ReportsonControlsataServiceOrganization.Thisreportis independentlyreviewedbyBaillieGifford&Co’sauditorsanda copyissubmittedtotheAuditCommittee. AreportidentifyingthematerialrisksfacedbytheCompanyand thekeycontrolsemployedtomanagetheserisksisreviewedby theAuditCommittee. Theseproceduresensurethatconsiderationisgivenregularly tothenatureandextentofrisksfacingtheCompanyandthat theyarebeingactivelymonitored.Wherechangesinriskhave beenidentifiedduringtheyeartheyalsoprovideamechanismto assesswhetherfurtheractionisrequiredtomanagetheserisks. TheDirectorsconfirmthattheyhavereviewedtheeffectiveness oftheCompany’sriskmanagementandinternalcontrolssystems, whichaccordwiththeFRC‘GuidanceonRiskManagement, InternalControlandRelatedFinancialandBusinessReporting’, andtheyhaveproceduresinplacetoreviewtheireffectiveness onaregularbasis.Nosignificantweaknesseswereidentifiedin theyearunderreviewanduptothedateofthisReport. TheBoardconfirmsthattheseprocedureshavebeeninplace throughouttheCompany’sfinancialyearandcontinuetobein placeuptothedateofapprovalofthisReport. TocomplywiththeUKAlternativeInvestmentFundManagers Regulations,TheBankofNewYorkMellon(International)Limited actsastheCompany’sDepositaryandBaillieGifford&CoLimited actsasitsAIFM. TheDepositary’sresponsibilitiesincludecashmonitoring,safe keepingoftheCompany’sfinancialinstruments,verifying ownershipandmaintainingarecordofotherassetsand monitoringtheCompany’scompliancewithinvestmentlimits andleveragerequirements.TheDepositaryisliablefortheloss offinancialinstrumentsheldincustody.TheDepositarywill ensurethatanydelegatesegregatestheassetsoftheCompany. TheCompany’sDepositaryalsoactsastheCompany’s Custodian.TheCustodianpreparesreportsonitskeycontrols andsafeguardswhichareindependentlyreviewedbyits appointedauditors,KPMGLLP.Thereportsarereviewedby BaillieGifford’sBusinessRiskDepartmentandasummaryofthe keypointsisreportedtotheAuditCommitteeandanyconcerns areinvestigated. TheDepositaryprovidestheAuditCommitteewithareportonits monitoringactivities. TheAIFMhasestablishedapermanentriskmanagementfunction toensurethateffectiveriskmanagementpoliciesandprocedures areinplaceandtomonitorcompliancewithrisklimits.TheAIFM hasariskmanagementpolicywhichcoverstherisksassociated withthemanagementoftheportfolio,andtheadequacyand effectivenessofthispolicyisreviewedandapprovedatleast annually.Thisreviewincludestheriskmanagementprocesses andsystemsandlimitsforeachriskarea. Therisklimits,whicharesetbytheAIFMandapprovedbythe Board,takeintoaccounttheobjectives,strategyandriskprofile oftheportfolio.Theselimits,includingleverage(seepage71), aremonitoredandthesensitivityoftheportfoliotokeyrisksis reviewedperiodicallyasappropriatetoascertaintheimpactof changesinkeyvariablesintheportfolio.Exceptionsfromlimits monitoringandstresstestingundertakenbyBaillieGifford’s BusinessRiskDepartmentareescalatedtotheAIFMand reportedtotheBoardalongwithremedialmeasuresbeingtaken. Noexceptionsoccurredduringtheyear. Governance Report The Monks Investment Trust PLC 31 Going Concern InaccordancewithTheFinancialReportingCouncil’sguidanceon goingconcernandliquidityrisk,includingitsCovid-19guidance, theDirectorshaveundertakenarigorousreviewoftheCompany’s abilitytocontinueasagoingconcernandspecificallyinthe contextoftheCovid-19pandemic. TheCompany’sprincipalrisksaremarketrelatedandinclude marketrisk,liquidityriskandcreditrisk.Anexplanationofthese risksandhowtheyaremanagediscontainedonpages19and 20andinnote19totheFinancialStatements.TheBoardhas,in particular,consideredtheimpactofheightenedmarketvolatility duringtheCovid-19pandemicand,overrecentmonths,owingto macroeconomicandgeopoliticalconcerns,includingtheRussia- Ukraineconflict,butdoesnotbelievetheCompany’sgoing concernstatusisaffected. TheCompany’sassets,themajorityofwhichareinvestments inquotedsecuritieswhicharereadilyrealisable(Level1),exceed itsliabilitiessignificantlyandcouldbesoldtorepayborrowingsif required.AllborrowingsrequirethepriorapprovaloftheBoard. Gearinglevelsandcompliancewithborrowingcovenantsare reviewedbytheBoardonaregularbasis.Duringtheyear,the Companysecureda£150millionthreeyearflexiblefacilitywith NationalAustraliaBankLimited(‘NAB’)toreplacethe£100million NABfacilityexpiring30November2021andtheupto£50million Scotiabank(Ireland)facilityexpiring13March2022.TheBoardis consideringthebestformofborrowingstoreplacethe Company’s£40milliondebenturestockmaturingon1March 2023,butisconfidentthatappropriatefinancingwillbesecured. Inthemeantime,the£150millionNABfacilityhas£75million commitmentstillundrawn.TheCompanyhascontinuedto complywiththeinvestmenttruststatusrequirementsofsection 1158oftheCorporationTaxAct2010andtheInvestmentTrust (ApprovedCompany)Regulations2011.TheCompany’sprimary thirdpartysuppliers,includingitsManagersandSecretaries, CustodianandDepositary,Registrar,AuditorandBroker,havenot experiencedsignificantoperationaldifficultiesaffectingtheir respectiveservicestotheCompany,asaresultoftheCovid-19 pandemic.Accordingly,theFinancialStatementshavebeen preparedonthegoingconcernbasisasitistheDirectors’ opinion,havingassessedtheprincipalandemergingrisksand othermattersincludingtheimpactoftheCovid-19pandemicset outintheViabilityStatementonpage20,whichassessesthe prospectsoftheCompanyoveraperiodofthreeyears,thatthe Companywillcontinueinoperationalexistencefortheperiodto 31July2023,whichisforaperiodofatleasttwelvemonthsfrom thedateofapprovaloftheseFinancialStatements. Relations with Shareholders TheBoardplacesgreatimportanceoncommunicationwith shareholders.TheCompany’sManagersmeetregularlywith shareholdersandreportshareholders’viewstotheBoard. The Chairmanhasmaintainedopenlinesofcommunicationwith marketparticipantsandinvestorsintheCompany,separateof Managerinvolvement,inordertoascertainviewsoncorporate matters.TheChairmanisavailabletomeetwithshareholders as appropriate.Shareholderswishingtocommunicatewithany membersoftheBoardmaydosobywritingtothematthe Secretaries’addressorthroughtheCompany’sBroker,Investec Bankplc(seecontactdetailsonthebackcover). TheCompany’sAnnualGeneralMeetingprovidesaforumfor communicationwithallshareholders.Thelevelofproxieslodged foreachresolutionisannouncedatthemeetingandispublished atmonksinvestmenttrust.co.uksubsequenttothemeeting. ThenoticeperiodfortheAnnualGeneralMeetingisatleast twentyworkingdays. Shareholdersandpotentialinvestorsmayobtainup-to-date informationontheCompanyatmonksinvestmenttrust.co.uk. Corporate Governance and Stewardship TheBoardhasgivendiscretionaryvotingpowerstoBaillieGifford &Co.TheManagersvoteagainstresolutionstheyconsidermay damageshareholders’rightsoreconomicinterestsandreport theiractionstotheBoard. TheBoardbelievesthatitisintheshareholders’intereststo considerenvironmental,socialandgovernance(ESG)factors whenselectingandretaininginvestmentsandhasaskedthe Managerstotaketheseissuesintoaccount.TheManagersdonot excludecompaniesfromtheirinvestmentuniversepurelyonthe groundsofESGfactors.Apositiveengagementapproachis employedwherebymattersarediscussedwithmanagement withtheaimofimprovingtherelevantpoliciesandmanagement systemsandenablingtheManagerstoconsiderhowESG factorscouldimpactlong-terminvestmentreturns.TheManagers’ statementofcompliancewiththeUKStewardshipCodecan befoundontheManagers’websiteat bailliegifford.com. TheManagers’policyhasbeenreviewedandendorsedbythe Board.Inaddition,theMonksStewardshipReport,whichoutlines theManagers’approachtoengagementandprovidesexamples, ispreparedannually,andisavailableontheCompany’spageof theManagers’websiteatmonksinvestmenttrust.co.uk. Governance Report 32AnnualReport2022 Climate Change TheBoardrecognisesthatclimatechangeposesaseriousthreat toourenvironment,oursocietyandtoeconomiesandcompanies aroundtheglobe.Addressingtheunderlyingcausesislikelyto resultincompaniesthatarehighemittersofcarbonfacinggreater societalandregulatoryscrutinyandhighercoststoaccountforthe trueenvironmentalimpactoftheiractivities. TheManagershaveengagedanexternalprovidertomapthe carbonfootprintoftheequityportfolio,usingtheinformationto prioritiseengagementandunderstandwhathigheremitting companiesaredoingtomanageclimateriskbetter.Thecarbon intensityofTheMonksInvestmentTrust’sportfoliois25%higher thantheCompany’sbenchmark(FTSEWorldIndex).Thisanalysis estimateisbasedon90%ofthevalueoftheCompany’sequity portfoliowhichreportsoncarbonemissionsandothercarbon- relatedcharacteristics.TheManagersareliaisingwiththeexternal providertounderstandarecentchangeinitsmethodology,which hasalteredthedataprovidedontheMonksportfolio,worsening itsreportedrelativepositionat30April2022whencomparedto similardatapreviouslyprovided.Theoutcomeofthatdiscussion willinformtheManagers’futureportfolioanalysis. BaillieGifford’sTaskForceonClimate-RelatedFinancial Disclosures(‘TCFD’)ClimateReportisavailableonthe Managers’websiteatbailliegifford.com.BaillieGiffordwill provideaTCFDclimatereportforMonkswhichisexpected tobeavailableduring2023. TheManagershaveconsideredtheSustainableFinance DisclosuresRegulation(‘SFDR’)andfurtherdetailscanbefound onpage72. TheManagersaresignatoriestotheUnitedNationsPrinciplesfor ResponsibleInvestment,theCarbonDisclosureProject,theNet ZeroAssetManagersinitiative,andarealsomembersoftheAsian CorporateGovernanceAssociationandtheInternational CorporateGovernanceNetwork. OnbehalfoftheBoard KSSternberg Chairman 20 June2022 Governance Report The Monks Investment Trust PLC 33 Audit Committee Report TheAuditCommitteeconsistsofMsCMBoyle,MsBJRichards, ProfessorSirNigelShadboltandMrJJTigue,whoisthe ChairmanoftheCommittee.ThemembersoftheCommittee considerthattheyhavetherequisitefinancialskillsandexperience tofulfiltheresponsibilitiesoftheCommittee.TheCommittee’s authorityanddutiesareclearlydefinedwithinitswrittentermsof referencewhichareavailableonrequestfromtheCompany Secretaryandatmonksinvestmenttrust.co.uk.Thetermsof referencearereviewedannually. TheCommittee’seffectivenessisreviewedonanannualbasisas partoftheBoard’sperformanceevaluationprocess. AtleastonceayeartheCommitteemeetswiththeexternal AuditorwithoutanyrepresentativeoftheManagersbeingpresent. Main Activities of the Committee TheCommitteemettwiceduringtheyearandtheexternal Auditor,Ernst&YoungLLP,attendedoneofthosemeetingsand heldseparatemeetingswiththeAuditCommitteeChairin advanceofbothCommitteemeetings.BaillieGifford&Co’s InternalAuditandComplianceDepartmentsandtheAIFM’s permanentriskfunctionprovidedreportsontheirmonitoring programmesforthesemeetings.Inaddition,theexternalAuditor metwiththeAuditCommitteeChaironanad-hocbasisto discussmatterspertinenttotheCommitteeastheyarose. Themattersconsidered,monitoredandreviewedbythe Committeeduringthecourseoftheyearincludedthefollowing: — theresultsannouncementandtheAnnualandInterimReports; — theCompany’saccountingpoliciesandpracticesandthe implementationoftheManagers’valuationpolicyfor investmentsinunquotedcompanies; — theregulatorychangesimpactingtheCompany; — thefairness,balanceandunderstandabilityoftheAnnual ReportandFinancialStatementsandwhetheritprovided theinformationnecessaryforshareholderstoassessthe Company’sperformance,businessmodelandstrategy; — theeffectivenessoftheCompany’sinternalcontrolenvironment; — reappointment,remunerationandtermsofengagementof theexternalAuditor; — whethertheauditservicescontractshouldbeputouttotender; — thepolicyontheengagementoftheexternalAuditorto supplynon-auditservices; — theindependenceandobjectivityoftheexternalAuditor andeffectivenessoftheexternalauditprocess; — theneedfortheCompanytohaveitsowninternalauditfunction; — internalcontrolsreportsreceivedfromtheManagersand Custodians;and — thearrangementsinplacewithinBaillieGifford&Cowhereby theirstaffmay,inconfidence,raiseconcernsaboutpossible improprietiesinmattersoffinancialreportingorothermatters. Internal Audit TheCommitteecontinuestobelievethatthecomplianceandinternal controlsystemsandtheinternalauditfunctioninplacewithinthe Managersprovidesufficientassurancethatasoundsystemof internalcontrol,whichsafeguardsshareholders’investmentand theCompany’sassets,ismaintained.Aninternalauditfunction, specifictotheCompany,isthereforeconsideredunnecessary. Financial Reporting TheCommitteeconsidersthatthemostsignificantissueslikelyto impacttheFinancialStatementsaretheexistenceandvaluation ofinvestments,astheyrepresent 98.8 %oftotalassets,andthe accuracyandcompletenessofincomefrominvestments. Themajorityoftheinvestmentsareinlistedsecuritiesandmarket pricesarereadilyavailablefromindependentexternalpricing sources.TheCommitteereviewedtheManagers’Reporton InternalControlswhichdetailsthecontrolsinplaceregarding recordingandpricingofinvestmentsandthereconciliationof investmentholdingstothirdpartydata. Thevalueofallthelistedinvestmentsasat30April2022was agreedtoexternalpricesources.TheCommitteeconsidered theManagers’proposedvaluationofallunquotedandsuspended investmentsat30April2022,whicharedeterminedusing valuationtechniquesbaseduponnetassetvalues,comparable companymultiplesandperformance,achievementofcompany milestonesandotherinformationasappropriate,andassessed theappropriatenessofthejudgementsandassumptionsusedin valuingsuchinvestments.TheManagersagreedtheportfolio holdingstoconfirmationsfromtheCompany’sCustodian. TheCommitteereviewedtheManagers’ReportonInternal Controlswhichdetailsthecontrolsinplaceregarding completenessandaccuraterecordingofinvestmentincome. Theaccountingtreatmentofeachspecialdividendreceivedor receivableduringtheyearwasreviewedbytheManagers. TheCommitteeconsideredthefactors,includingtheimpactof Covid-19,thatmightaffecttheCompany’sviabilityoveraperiod ofthreeyearsanditsabilitytocontinueasagoingconcernforthe periodto31July2023,togetherwithreportsfromtheManagers onthecashpositionandcashflowprojectionsoftheCompany, theliquidityofitsinvestmentportfolio,compliancewithdebt covenants,availabilityofborrowingfacilities,andtheCompany’s abilitytomeetitsobligationsastheyfalldue.TheCommitteealso reviewedtheViabilityStatementonpage20andstatementon GoingConcernonpage31includingthepotentialimpactof Covid-19.Followingthisassessment,theCommittee recommendedtotheBoardtheappropriatenessoftheGoing ConcernbasisinpreparingtheFinancialStatementsand confirmedtheaccuracyoftheViabilityStatementandstatement onGoingConcern. TheManagersconfirmedtotheCommitteethattheywerenot awareofanymaterialmisstatementsinthecontextoftheFinancial StatementsasawholeandthattheFinancialStatementsarein accordancewithapplicablelawandaccountingstandards. Governance Report 34AnnualReport2022 Internal Controls and Risk Management TheCommitteereviewedtheeffectivenessoftheCompany’s riskmanagementandinternalcontrolssystemsasdescribed onpage30.Nosignificantweaknesseswereidentified intheyearunderreview. External Auditor Tofulfilitsresponsibilityregardingtheindependenceand objectivityoftheexternalAuditor,theCommitteereviewedthe Auditor’sauditplan,whichincludesadescriptionoftheAuditor’s arrangementstomanageindependence,areportfromtheAuditor ontheconclusionoftheauditsettingoutwhytheAuditorremains independentandtheextentandnatureofnon-auditservices providedbytheAuditor.Non-auditfeesincurredbytheCompany fortheyearto30April2022amountto£1,500(2021–£1,250) andrelatedtothecertificationoffinancialinformationtothe debenturetrustee. TheCommitteehasreviewedandapprovedthenon-audit servicesprovidedbytheAuditorduringtheyearanddoesnot believethattheyhaveimpairedtheAuditor’sindependenceasthe amountinvolvedisimmaterial. ToassesstheeffectivenessoftheAuditorandtheexternalaudit process,theCommitteereviewedandconsideredtheauditplan, thefulfilmentbytheAuditoroftheagreedauditplan,areportfrom theAuditorontheconclusionoftheaudit,feedbackfromthe SecretariesontheperformanceoftheauditteamandtheAudit QualityInspectionReportonErnst&YoungLLPissuedbythe FRC’sAuditQualityReviewTeam(AQRT). Followingacompetitivetenderprocess,Ernst&YoungLLPwas appointedastheCompany’sAuditorattheAnnualGeneral Meetingheldon2August2017,withCarolineMercerasthelead auditpartner.Theauditpartnersresponsiblefortheauditaretobe rotatedatleasteveryfiveyearsinaccordancewithprofessionaland regulatorystandardsinordertoprotectindependenceand objectivityandtoprovidefreshchallengetothebusiness.Thisis CarolineMercer’sfifthandfinalyearasleadauditpartnerforthe Company’saudit.AsuccessortoCarolineMercerhasbeen proposed,andwillleadnextyear’sauditsubjecttotheAudit Committee’sapproval. Ernst&YoungLLPhasconfirmedthatitbelievesitisindependent withinthemeaningofregulatoryandprofessionalrequirements andthattheobjectivityoftheauditpartnerandstaffisnotimpaired. Havingcarriedoutthereviewdescribedabove,theCommitteeis satisfiedthattheAuditorremainsindependentandeffectivefor thepurposesofthisyear’sauditand,assuch,hasnotconsidered itnecessarytoputtheauditservicescontractouttotender. Inaccordancewithregulationsinrelationtothestatutoryaudits oflistedcompanies,theCompanyisrequiredtoputtheaudit outtotenderforthe2028yearend. TherearenocontractualobligationsrestrictingtheCommittee’s choiceofexternalAuditor. Regulatory Compliance TheCommitteeconfirmsthattheCompanyisincompliancewith therequirementsoftheStatutoryAuditServicesforLarge CompaniesMarketInvestigation(MandatoryUseofCompetitive TenderProcessesandAuditCommitteeResponsibilities)Order 2014,whichrelatestothefrequencyandgovernanceoftenders fortheappointmentoftheexternalauditorandthesettingof policyontheprovisionofnon-auditservices. Accountability and Audit TherespectiveresponsibilitiesoftheDirectorsandtheAuditor inconnectionwiththeFinancialStatementsaresetoutonpages 37to43. OnbehalfoftheBoard JJTigue ChairmanoftheAuditCommittee 20 June2022 Governance Report The Monks Investment Trust PLC 35 Directors’ Remuneration Report Thisreporthasbeenpreparedinaccordancewiththe requirementsoftheCompaniesAct2006. Statement by the Chairman TheDirectors’RemunerationPolicyissubjecttoshareholder approvaleverythreeyearsorsoonerifanalterationtothepolicy is proposed.TheRemunerationPolicywhichissetoutbelow,was approvedbyshareholdersattheAnnualGeneralMeetingheldin September2020,andnochangesareproposed. TheBoardreviewedtheleveloffeesduringtheyearanditwas agreedthatwitheffectfrom1May2022theChairman’sFee and Directors’Feesshouldeachincreaseby£1,500perannum with nochangetotheincrementfortheAuditChairorSenior IndependentDirector.Thefeelevelswerelastincreasedon 1 May2021. Directors’ Remuneration Policy TheBoardiscomposedwhollyofnon-executiveDirectors,none ofwhomhasaservicecontractwiththeCompany.Thereisno separateremunerationcommitteeandtheBoardasawhole considerschangestoDirectors’feesfromtimetotime.BaillieGifford &CoLimited,theCompanySecretaries,providecomparative informationwhentheBoardconsidersthelevelofDirectors’fees. TheBoard’spolicyisthattheremunerationofDirectorsshouldbe setatareasonablelevelthatiscommensuratewiththeduties andresponsibilitiesoftheroleandconsistentwiththerequirement toattractandretainDirectorsoftheappropriatequalityand experience.TheBoardbelievesthatthefeespaidtotheDirectors shouldreflecttheexperienceoftheBoardasawhole,befair andshouldtakeaccountoftheleveloffeespaidbycomparable investmenttrusts.Anyviewsexpressedbyshareholdersonthe feesbeingpaidtoDirectorswillbetakenintoconsiderationby theBoardwhenreviewingtheBoard’spolicyonremuneration. Non-executiveDirectorsarenoteligibleforanyotherremuneration orbenefitsapartfromthereimbursementofallowableexpenses. TherearenoperformanceconditionsrelatingtoDirectors’fees andtherearenolong-termincentiveschemesorpension schemes.Thereisnonoticeperiodandnocompensationis payableonlossofoffice. Limits on Directors’ Remuneration Thefeesforthenon-executiveDirectorsarepayablemonthly in arrearsandaredeterminedwithinthelimitsetoutinthe Company’sArticlesofAssociation,whichiscurrently£300,000 in aggregate.Anychangetothislimitrequiresshareholder approval.Itisproposedthatthislimitbeincreasedto£400,000 perannuminaggregate,toallowheadroomforrecruitmentand refreshmentincludingserviceoverlap,andaresolutionwillbeput toshareholdersattheforthcomingAnnualGeneralMeetingin conjunctionwiththewiderrefreshmentoftheArticles. ThefeespaidtoDirectorsinrespectoftheyearended30April 2022andtheexpectedfeespayableinrespectoftheyearending 30April2023aresetoutinthetablebelow.Thefeespayableto theDirectorsinthesubsequentfinancialperiodswillbedetermined followinganannualreviewoftheDirectors’fees. Expected fees for year ending 30 Apr 2023 £ Fees as at 30 Apr 2022 £ Chairman’sfee 47,500 46,000 Non-executiveDirectorfee 32,500 31,000 AdditionalfeeforChairmanofthe AuditCommittee * 6,000 6,000 AdditionalfeefortheSenior IndependentDirector * 3,000 3,000 * TheAuditChairperformsadditionalresponsibilitiesasnotedin theAuditCommitteeReportonpages33and34.TheSenior IndependentDirector(‘SID’)performsadditionalresponsibilitiesas notedonpage28. Annual Report on Remuneration Anordinaryresolutionfortheapprovalofthisreportwillbeputto themembersattheforthcomingAnnualGeneralMeeting. ThelawrequirestheCompany’sAuditortoauditcertainofthe disclosuresprovidedinthisreport.Wheredisclosureshavebeen audited,theyareindicatedassuch.TheAuditor’sopinionis includedintheIndependentAuditor’sReportonpages38to43. Directors’ Remuneration for the Year (audited) TheDirectorswhoservedduringtheyearreceivedthefollowingremunerationintheformoffeesandtaxablebenefits.Thisrepresents theentireremunerationpaidtotheDirectors. Name 2022 Fees £ 2022 Taxable benefits † £ 2022 Total £ 2021 Fees £ 2021 Taxable benefits † £ 2021 Total £ CMBoyle 31,000 165 31,165 30,000 – 30,000 JGDFerguson(retired1September2020) – – – 14,836 196 15,032 EMHarley(retired16March2021) – – – 26,685 – 26,685 BJRichards 31,000 – 31,000 30,000 – 30,000 ProfessorSirNigelShadbolt 31,000 – 31,000 30,000 – 30,000 KSSternberg(Chairfrom1September2020) 46,000 – 46,000 39,333 – 39,333 JJTigue(AuditCommitteeChair) 40,000 – 40,000 35,000 – 35,000 179,000 165 179,165 205,854 196 206,050 † ComprisesexpensesincurredbyDirectorsinthecourseoftraveltoattendBoardandCommitteemeetingsheldattheofficesofBaillieGifford &CoLimited,theCompany’sSecretaries.Theseamountshavebeengrossedupforincometax. Governance Report 36AnnualReport2022 Annual Percentage Change in Remuneration Thisrepresentstheannualpercentagechangeinthetotalremuneration paidtotheDirectors. Name % change from 2021 to 2022 % change from 2020 to 2021 CMBoyle(appointed1May2020) 3.9 – JGDFerguson(retired1September2020) – (65.8) * EMHarley(retired16March2021) – (8.0) BJRichards 3.3 3.4 ProfessorSirNigelShadbolt 3.3 3.4 KSSternberg(Chairfrom  1September2020) 17.0 35.6 * JJTigue(AuditCommitteeChair  andSID) 14.3 4.5 * Thes epercentagemovementsreflecttheDirectors’retirement/ appointmentsintheperiod. Directors’ Interests (audited) TheDirectorsattheyearend,andtheirinterests(includingthoseof connectedpersons)intheCompanyareasshowninthefollowing table.TherehavebeennochangesintimatedintheDirectors’ interestsupto16June2022. Name Nature of interest Ordinary 5p shares held at 30 April 2022 Ordinary 5p shares held at 30 April 2021 CMBoyle Beneficial – – BJRichards Beneficial 11,397 11,397 ProfessorSir  NigelShadbolt Beneficial – – KSSternberg Beneficial 19,189 18,189 JJTigue Beneficial 41,231 41,176 Statement of Voting at Annual General Meeting AtthelastAnnualGeneralMeeting,oftheproxyvotesreceived inrespectoftheDirectors’RemunerationReport,99.8%werein favour,0.1%wereagainstandvoteswithheldwere0.1%.Atthe lastAnnualGeneralMeetingatwhichtheDirectors’Remuneration Policywasconsidered(September2020)99.8%oftheproxy votesreceivedwereinfavour,0.1%wereagainstand0.1%were withheld. Relative Importance of Spend on Pay Thetablebelowshowstheactualexpenditureduringtheyear inrespectofDirectors’remunerationanddistributionsto shareholdersbywayofdividends. 2022 £’000 2021 £’000 Change % Directors’remuneration 179 206 (13.1) Dividendspaidtoshareholders 5,350 4,729 13.1 Cumulative years to 30 April 2014 2017 20202019 20222021 Source: Refinitiv/Baillie Gifford and relevant underlying index providers # . Monks share price FTSE All-Share FTSE World Index Past performance is not a guide to future performance. A ll figures are total returns (see Glossary of Terms and Alternative Performance Measures on pages 74 to 76). # See disclaimer on page 73. 2012 201620152013 2018 50 450 150 350 250 200 100 400 300 Performance Graph (figuresrebasedto100at30April2012) Company Performance Thefollowinggraphcomparesthesharepricetotalreturn (assumingalldividendsarereinvested)toMonks’ordinary shareholderscomparedwiththetotalshareholderreturnona notionalinvestmentmadeupofsharesinthecomponentpartsof theFTSEAll-ShareIndex.Thisindexwaschosenforcomparison purposesasitisawidelyusedmeasureofperformanceforUK listedcompanies(FTSEWorldIndex,whichistheCompany’s comparativeindex,isprovidedforinformationpurposesonly). Approval TheDirectors’RemunerationReportonpages35and36was approvedbytheBoardofDirectorsandsignedonitsbehalfon 20June2022. KSSternberg Chairman Governance Report The Monks Investment Trust PLC 37 TheDirectorsareresponsibleforpreparingtheAnnualReport andthe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,whosenamesandfunctionsarelisted withintheDirectorsandManagement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 KSSternberg Chairman 20June2022 Statement of Directors’ Responsibilities in Respect of the Annual Report and the Financial Statements Governance Report 38AnnualReport2022 Opinion WehaveauditedthefinancialstatementsofTheMonks InvestmentTrustPLC(the‘Company’)fortheyearended30April 2022whichcomprisetheIncomeStatement,BalanceSheet, StatementofChangesinEquity,CashFlowStatementandthe relatednotes1to21,includingasummaryofsignificant accountingpolicies.Thefinancialreportingframeworkthathas beenappliedintheirpreparationisapplicablelawandUnited KingdomAccountingStandardsincludingFRS102“TheFinancial ReportingStandardapplicableintheUKandRepublicofIreland” (UnitedKingdomGenerallyAcceptedAccountingPractice). Inouropinion,thefinancialstatements: — giveatrueandfairviewoftheCompany’saffairsasat 30April2022andofitslossfortheyearthenended; — havebeenproperlypreparedinaccordancewithUnited KingdomGenerallyAcceptedAccountingPractice;and — havebeenpreparedinaccordancewiththerequirementsof theCompaniesAct2006. Basis for Opinion WeconductedourauditinaccordancewithInternational StandardsonAuditing(UK)(ISAs(UK))andapplicablelaw. Ourresponsibilitiesunderthosestandardsarefurtherdescribed intheAuditor’sresponsibilitiesfortheauditofthefinancial statementssectionofourreport.Webelievethattheaudit evidencewehaveobtainedissufficientandappropriateto provideabasisforouropinion. Independence WeareindependentoftheCompanyinaccordancewiththe ethicalrequirementsthatarerelevanttoourauditofthefinancial statementsintheUK,includingtheFRC’sEthicalStandardas appliedtopublicinterestentities,andwehavefulfilledourother ethicalresponsibilitiesinaccordancewiththeserequirements. Thenon-auditservicesprohibitedbytheFRC’sEthicalStandard werenotprovidedtotheCompanyandweremainindependentof theCompanyinconductingtheaudit. Conclusions Relating to Going Concern Inauditingthefinancialstatements,wehaveconcludedthatthe Directors’useofthegoingconcernbasisofaccountinginthe preparationofthefinancialstatementsisappropriate.Our evaluationoftheDirectors’assessmentoftheCompany’sability tocontinuetoadoptthegoingconcernbasisofaccounting included: — WeconfirmedourunderstandingoftheCompany’sgoing concernassessmentprocessanddiscussedwiththe DirectorsandtheCompanySecretarythosefactorsthey consideredimportantintheirassessment.Weconsidered whetherthefactorstakenaccountofintheDirectors’ assessmentaddressedthosematterswhichweconsidered important. — WeinspectedtheDirectors’assessmentofgoingconcern, includingthecashflowforecast,fortheperiodto31July 2023whichisatleasttwelvemonthsfromthedatethe financialstatementswereauthorisedforissue.Inpreparing therevenueforecast,theCompanyhasconcludedthatitis abletocontinuetomeetitsongoingcostsastheyfalldue. — Wereviewedthefactorsandassumptions,includingthe impactoftheCOVID-19pandemicandothersignificant eventsthatcouldgiverisetomarketvolatility.Wealso reviewedandchallengedthereversestresstestingperformed andassessedtheindicativeimpactontheCompany’snet assetvalue.Weconsideredtheappropriatenessofthe methodsusedtobeabletomakeanassessmentforthe Company. — InrelationtotheCompany’sborrowingarrangements,we assessedtheriskofbreachingthedebtcovenantsasaresult ofareductioninthevalueoftheCompany’sportfolio.We calculatedtheCompany’scompliancewithdebtcovenants andperformedreversestresstestinginordertoidentifywhat factorswouldleadtotheCompanybreachingthefinancial covenants. — Weconsideredthemitigatingfactorsincludedinthecashflow forecastsandcovenantcalculationsthatarewithinthecontrol oftheCompany.WereviewedtheCompany’sassessmentof theliquidityofinvestmentsheldandevaluatedtheCompany’s abilitytosellthoseinvestmentsinordertocoverworking capitalrequirementsshouldrevenuedeclinesignificantly. — WereviewedtheCompany’sgoingconcerndisclosures includedintheannualreportinordertoassessthatthe disclosureswereconsistentwiththefinancialstatementsand ourunderstandingoftheCompanyandinconformitywiththe reportingstandards. Basedontheworkwehaveperformed,wehavenotidentified anymaterialuncertaintiesrelatingtoeventsorconditionsthat, individuallyorcollectively,maycastsignificantdoubtonthe Company’sabilitytocontinueasagoingconcernforaperiod to31July2023. InrelationtotheCompany’sreportingonhowtheyhaveapplied theUKCorporateGovernanceCode,wehavenothingmaterialto addordrawattentiontoinrelationtotheDirectors’statementin thefinancialstatementsaboutwhethertheDirectorsconsideredit appropriatetoadoptthegoingconcernbasisofaccounting. OurresponsibilitiesandtheresponsibilitiesoftheDirectorswith respecttogoingconcernaredescribedintherelevantsectionsof thisreport.However,becausenotallfutureeventsorconditions canbepredicted,thisstatementisnotaguaranteeastothe Company’sabilitytocontinueasagoingconcern. Financial Report Independent Auditor’s Report To the Members of The Monks Investment Trust PLC The Monks Investment Trust PLC 39 Overview of Our Audit Approach Key audit matters Riskofincorrectvaluationandownership ofthelistedandunquotedinvestments. Riskofincompleteorinaccuraterevenue recognition,includingtheclassificationof specialdividendsasrevenueorcapitalin theIncomeStatement. Materiality Overallmaterialityof£24.79mwhich represents1%ofshareholders’funds. An Overview of the Scope of Our Audit Tailoring the Scope Ourassessmentofauditrisk,ourevaluationofmaterialityandour allocationofperformancematerialitydetermineourauditscope fortheCompany.Thisenablesustoformanopiniononthe financialstatements.Wetakeintoaccountsize,riskprofile,the organisationoftheCompanyandeffectivenessofcontrols, includingcontrolsandchangesinthebusinessenvironmentwhen assessingthelevelofworktobeperformed.Allauditworkwas performeddirectlybytheauditengagementteamwhichincluded ourvaluationspecialists. Climate Change Therehasbeenincreasinginterestfromstakeholdersastohow climatechangewillimpactcompanies.TheCompanyhas determinedthatclimateproblemsmayimpactinvesteeCompany valuationsandinturntheCompany’sownshareprice.Thisis explainedonpage19intheprincipalandemergingriskssection, whichformpartofthe“Otherinformation,”ratherthantheaudited financialstatements.Ourproceduresonthesedisclosures thereforeconsistedsolelyofconsideringwhethertheyare materiallyconsistentwiththefinancialstatementsorour knowledgeobtainedinthecourseoftheauditorotherwise appeartobemateriallymisstated. Financial Report Ourauditeffortinconsideringclimatechangewasfocusedon theadequacyoftheCompany’sdisclosuresinthefinancial statementsassetoutinNote1aandconclusionthattherewas nofurtherimpactofclimatechangetobetakenintoaccountas theinvestmentsarevaluedbasedonmarketpricingasrequired byFRS102andunquotedinvestmentsarevaluedwithreference tolistedcomparablecompaniesthereforereflectiveofmarket participantsviews.WealsochallengedtheDirectors’ considerationsofclimatechangeintheirassessmentofviability andassociateddisclosures. Key Audit Matters Keyauditmattersarethosemattersthat,inourprofessional judgment,wereofmostsignificanceinourauditofthefinancial statementsofthecurrentperiodandincludethemostsignificant assessedrisksofmaterialmisstatement(whetherornotdueto fraud)thatweidentified.Thesemattersincludedthosewhichhad thegreatesteffecton:theoverallauditstrategy,theallocationof resourcesintheaudit;anddirectingtheeffortsoftheengagement team.Thesematterswereaddressedinthecontextofouraudit ofthefinancialstatementsasawhole,andinouropinionthereon, andwedonotprovideaseparateopiniononthesematters. 40AnnualReport2022 Risk Our response to the risk Key observations communicated to the Audit Committee Incorrect valuation and ownership of the listed and unquoted investments (asdescribedonpage33intheReport of theAuditCommitteeandasperthe accountingpolicysetoutonpage49). Thevaluationoftheinvestmentportfolio at30April2022was£2,662.01m (2021 – £3,238.13m)consistingof quotedinvestmentswithan aggregatevalueof£2,599.76m (2021 – £3,158.82m)andunquotedand suspendedequitieswithanaggregate valueof£62.25m(2021 – £74.15m). Thevaluationoftheassetsheldinthe investmentportfolioisthekeydriverof theCompany’snetassetvalueandtotal return.Incorrectinvestmentpricing,ora failuretomaintainproperlegaltitletothe investmentsheldbytheCompanycould haveasignificantimpactontheportfolio valuationandthereturngeneratedfor shareholders. Thefairvalueofquotedinvestmentsis determinedbyreferencetobidvalueor thelasttradedpricedependingonthe conventionoftheexchangeonwhichthe investmentisquoted. Unquotedinvestmentsarevaluedatfair valuebytheDirectorsfollowingadetailed reviewandappropriatechallengeofthe valuationsproposedbytheBaillieGifford FairValuePricingGroup.Theunquoted investmentpolicyappliesmethodologies consistentwiththeInternationalPrivate EquityandVentureCapitalValuation guidelines(‘IPEV’). Thevaluationofunquotedand suspendedinvestments,andtheresultant impactontheunrealisedgains/(losses), isthearearequiringthemostsignificant judgementandestimationinthe preparationofthefinancialstatements andhasbeenclassifiedasanareaof fraudriskashighlightedbelowon page43. We p erformed the following procedures: WeobtainedanunderstandingofBaillieGifford’s processesandcontrolssurroundinglegaltitleandpricing ofquotedandunquotedinvestmentsbyperforming walkthroughprocedures. Forallquotedinvestmentsintheportfolio,wecompared themarketpricesandexchangeratesappliedtoan independentpricingvendorandrecalculatedthe investmentvaluationsasattheyear-end. Weinspectedthestalepricingreportsproducedby BaillieGiffordtoidentifypricesthathavenotchanged withinonebusinessdayandverifiedwhetherthequoted priceisavalidfairvalue.Weidentifiedtwostalepricesin relationtoRussianstocks,wenotedthesewerenil valuedandagreedthesetopricingvendorinformation, verifyingthecircumstancestoconfirmanilvaluewas appropriate. Fortheunquotedandsuspendedinvestmentsheldasat 30April2022theauditteamorourvaluationspecialists reviewedandchallengedthevaluations.Thisincluded: — Reviewingthevaluationpaperspreparedbythe PrivateCompaniesValuationGroupandFairValue PricingGrouptogainanunderstandingof,and commenton,thevaluationmethodologiesand assumptions; — InitialdiscussionwiththeManager’sPrivate CompaniesValuationGrouptounderstandtheir valuationapproachandafollowupmeetingto challengecertainareasoftheirapproach, documentationandvaluationconclusions; — Assessingwhetherthevaluationshavebeen performedinlinewiththevaluationapproachesas setoutinUKGAAPandtheInternationalPrivate EquityandVenturecapital(‘IPEV’)guidelines; — Assessingtheappropriatenessofthedatainputs andchallengingtheassumptionsusedtosupport thevaluations; — Assessingotherfactsandcircumstances,suchas marketmovementandcomparativeCompany information,thathaveanimpactonthefairmarket valueoftheinvestments;andassessingwhether managementsvaluationisreasonable. Werecalculatedtheunrealisedgains/losseson investmentsasattheyear-endusingthebook-cost reconciliation. WecomparedtheCompany’sinvestmentholdingsat 30 April2022toindependentconfirmationsreceived directlyfromtheCompany’sCustodianorfromthe investeecompany. The results of our procedures identified no material misstatement in relation to the risk of incorrect valuation or ownership of the investment portfolio. Financial Report The Monks Investment Trust PLC 41 Risk Our response to the risk Key observations communicated to the Audit Committee Incomplete or inaccurate revenue recognition, including the classification of special dividends as revenue or capital items in the Income Statement (pertheAuditCommitteereportsetout onpages33to34andtheaccounting policysetoutonpage50). Thetotalrevenuefortheyearto30April 2022was£27.81m(2021–£22.53m). Includedintotalrevenuewasrevenue specialdividendswithavalueof£2.42m (2021–£1.07m).Capitalspecial dividendswithavalueof£0.13m (2021–£0.04m)arereflectedinnet gains/(losses)oninvestmentsinthe IncomeStatement. Thereisariskofincompleteorinaccurate recognitionofrevenuethroughthefailure torecogniseproperincomeentitlements ortoapplyanappropriateaccounting treatment. TheDirectorsmayberequiredtoexercise judgmentindeterminingwhetherincome receivableintheformofspecialdividends shouldbeclassifiedas‘revenue’or ‘capital’intheIncomeStatementandhas beenclassifiedasanareaoffraudriskas highlightedbelowonpage43. We have performed the following procedures: WeobtainedanunderstandingofBaillieGifford’s processesandcontrolssurroundingrevenuerecognition includingtheclassificationofspecialdividendsby performingwalkthroughprocedures. Foralldividends,werecalculatedtheincomeby multiplyingtheinvestmentholdingsattheex-dividend date,tracedfromtheaccountingrecords,bythe dividendpershare,whichwasagreedtoanindependent datavendor.Weagreedasampletobankstatements and,whereapplicable,wealsoagreedtheexchange ratestoanexternalsource. Totestcompletenessofrecordedincome,wetestedthat dividendshadbeenrecordedforasampleofinvestee companieswithreferencetoinvesteecompany announcementsobtainedfromanindependentdata vendor. Foralldividendsaccruedattheyearend,wereviewed theinvesteecompanyannouncementstoassess whetherthedividendobligationarosepriorto30April 2022.Weagreedthedividendratetocorresponding announcementsmadebytheinvesteecompany, recalculatedthedividendamountreceivableand confirmedthiswasconsistentwithcashreceivedas shownonpostyearendbankstatements. Weperformedareviewoftheincomeandacquisition anddisposalreportsproducedbyBaillieGiffordto identifyallspecialdividendsreceivedandaccruedduring theperiod,aboveourtestingthreshold.Weidentified 11specialdividendsthathadbeenreceivedbythe Companyintheyearwhichwereallindividuallybelowour testingthreshold.Forasampleofspecialdividends whichwereindividuallybelowourthresholdbuttotalled £2.33mweassessedtheappropriatenessof management’sclassification.Weconfirmedthroughan independentreviewthattheclassificationofthespecial dividendswereconsistentwiththeunderlyingmotives andcircumstancesforthepayments. The results of our procedures identified no material misstatement in relation to the risk of incomplete or inaccurate revenue recognition, including incorrect classification of special dividends as revenue or capital items in the Income Statement. Therehavebeennochangestotheareasofauditfocusraisedintheaboverisktablefromtheprioryear. Our Application of Materiality Weapplytheconceptofmaterialityinplanningandperforming theaudit,inevaluatingtheeffectofidentifiedmisstatementson theauditandinformingourauditopinion. Materiality The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures. WedeterminedmaterialityfortheCompanytobe£24.79million (2021–£32.05million),whichis1%(2021–1%)ofshareholders’ funds.Webelievethatshareholders’fundsprovidesuswitha materialityalignedtothekeymeasureoftheCompany’s performance. Performance Materiality The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality. Onthebasisofourriskassessments,togetherwithour assessmentoftheCompany’soverallcontrolenvironment, ourjudgementwasthatperformancematerialitywas75% (2021 – 75%)ofourplanningmateriality,namely£18.59m (2021 – £24.04m).Wehavesetperformancematerialityatthis percentageduetoourexperienceinprioryearsofworkingwith thekeyserviceprovidersthatindicatesalowerriskof misstatements,bothcorrectedanduncorrected. Giventheimportanceofthedistinctionbetweenrevenueand capitalforinvestmenttrusts,wehaveappliedaseparatetesting thresholdfortherevenuecolumnoftheIncomeStatementof £1.24m(2021 – £1.07m),beingourreportingthreshold. Financial Report 42AnnualReport2022 Reporting Threshold An amount below which identified misstatements are considered as being clearly trivial. WeagreedwiththeAuditCommitteethatwewouldreportto themalluncorrectedauditdifferencesinexcessof£1.24m (2021–£1.07m),whichissetat5%ofplanningmateriality,as wellasdifferencesbelowthatthresholdthat,inourview, warrantedreportingonqualitativegrounds. Weevaluateanyuncorrectedmisstatementsagainstboththe quantitativemeasuresofmaterialitydiscussedaboveandinlight ofotherrelevantqualitativeconsiderationsinformingouropinion. Other Information Theotherinformationcomprisestheinformationincludedinthe annualreportotherthanthefinancialstatementsandourauditor’s reportthereon.TheDirectorsareresponsiblefortheother informationcontainedwithintheannualreport. Ouropiniononthefinancialstatementsdoesnotcovertheother informationand,excepttotheextentotherwiseexplicitlystatedin thisreport,wedonotexpressanyformofassuranceconclusion thereon. Ourresponsibilityistoreadtheotherinformationand,indoingso, considerwhethertheotherinformationismateriallyinconsistent withthefinancialstatementsorourknowledgeobtainedinthe courseoftheauditorotherwiseappearstobematerially misstated.Ifweidentifysuchmaterialinconsistenciesorapparent materialmisstatements,wearerequiredtodeterminewhetherthis givesrisetoamaterialmisstatementinthefinancialstatements themselves.If,basedontheworkwehaveperformed,we concludethatthereisamaterialmisstatementoftheother information,wearerequiredtoreportthatfact. Wehavenothingtoreportinthisregard. Opinions on Other Matters Prescribed by the Companies Act 2006 InouropinionthepartoftheDirectors’RemunerationReportto beauditedhasbeenproperlypreparedinaccordancewiththe CompaniesAct2006. Inouropinion,basedontheworkundertakeninthecourseofthe audit: — theinformationgivenintheStrategicReportandtheDirectors’ Reportforthefinancialyearforwhichthefinancialstatements arepreparedisconsistentwiththefinancialstatements;and — theStrategicReportandDirectors’Reportshavebeen preparedinaccordancewithapplicablelegalrequirements. Matters on Which we are Required to Report by Exception InthelightoftheknowledgeandunderstandingoftheCompany anditsenvironmentobtainedinthecourseoftheaudit,wehave notidentifiedmaterialmisstatementsintheStrategicReportor Directors’Report. Wehavenothingtoreportinrespectofthefollowingmattersin relationtowhichtheCompaniesAct2006requiresustoreportto youif,inouropinion: — adequateaccountingrecordshavenotbeenkept,orreturns adequateforouraudithavenotbeenreceivedfrombranches notvisitedbyus;or — thefinancialstatementsandthepartoftheDirectors’ RemunerationReporttobeauditedarenotinagreementwith theaccountingrecordsandreturns;or — certaindisclosuresofDirectors’remunerationspecifiedbylaw arenotmade;or — wehavenotreceivedalltheinformationandexplanationswe requireforouraudit. Corporate Governance Statement WehavereviewedtheDirectors’statementinrelationtogoing concern,longer-termviabilityandthatpartoftheCorporate GovernanceStatementrelatingtotheCompany’scompliance withtheprovisionsoftheUKCorporateGovernanceCode specifiedforourreviewbytheListingRules. Basedontheworkundertakenaspartofouraudit,wehave concludedthateachofthefollowingelementsoftheCorporate GovernanceStatementismateriallyconsistentwiththefinancial statementsorourknowledgeobtainedduringtheaudit: — Directors’statementwithregardstotheappropriatenessof adoptingthegoingconcernbasisofaccountingandany materialuncertaintiesidentifiedsetoutonpage31; — Directors’explanationastoitsassessmentoftheCompany’s prospects,theperiodthisassessmentcoversandwhythe periodisappropriatesetoutonpage20; — Directors’statementonwhethertheyhaveareasonable expectationthattheCompanywillbeabletocontinuein operationandmeetsitsliabilitiessetoutonpage20; — Directors’statementonfair,balancedandunderstandableset outonpage37; — Board’sconfirmationthatithascarriedoutarobust assessmentoftheemergingandprincipalriskssetouton pages19and20; — Thesectionoftheannualreportthatdescribesthereviewof effectivenessofriskmanagementandinternalcontrolsystems setoutonpage30;and; — Thesectiondescribingtheworkoftheauditcommitteeset outonpages33and34. Financial Report The Monks Investment Trust PLC 43 Responsibilities of Directors AsexplainedmorefullyintheDirectors’responsibilitiesstatement setoutonpage37,theDirectorsareresponsibleforthe preparationofthefinancialstatementsandforbeingsatisfiedthat theygiveatrueandfairview,andforsuchinternalcontrolasthe Directorsdetermineisnecessarytoenablethepreparationof financialstatementsthatarefreefrommaterialmisstatement, whetherduetofraudorerror. Inpreparingthefinancialstatements,theDirectorsareresponsible forassessingtheCompany’sabilitytocontinueasagoing concern,disclosing,asapplicable,mattersrelatedtogoing concernandusingthegoingconcernbasisofaccountingunless theDirectorseitherintendtoliquidatetheCompanyortocease operations,orhavenorealisticalternativebuttodoso. Auditor’s Responsibilities for the Audit of the Financial Statements Ourobjectivesaretoobtainreasonableassuranceaboutwhether thefinancialstatementsasawholearefreefrommaterial misstatement,whetherduetofraudorerror,andtoissuean auditor’sreportthatincludesouropinion.Reasonableassurance isahighlevelofassurance,butisnotaguaranteethatanaudit conductedinaccordancewithISAs(UK)willalwaysdetecta materialmisstatementwhenitexists.Misstatementscanarise fromfraudorerrorandareconsideredmaterialif,individuallyorin theaggregate,theycouldreasonablybeexpectedtoinfluencethe economicdecisionsofuserstakenonthebasisofthesefinancial statements. Explanation as to What Extent the Audit was Considered Capable of Detecting Irregularities, Including Fraud Irregularities,includingfraud,areinstancesofnon-compliance withlawsandregulations.Wedesignproceduresinlinewithour responsibilities,outlinedabove,todetectirregularities,including fraud.Theriskofnotdetectingamaterialmisstatementdueto fraudishigherthantheriskofnotdetectingoneresultingfrom error,asfraudmayinvolvedeliberateconcealmentby,for example,forgeryorintentionalmisrepresentations,orthrough collusion.Theextenttowhichourproceduresarecapableof detectingirregularities,includingfraudisdetailedbelow. However,theprimaryresponsibilityforthepreventionand detectionoffraudrestswithboththosechargedwithgovernance oftheCompanyandmanagement. — Weobtainedanunderstandingofthelegalandregulatory frameworksthatareapplicabletotheCompanyand determinedthatthemostsignificantareUnitedKingdom GenerallyAcceptedAccountingPractice,theCompaniesAct 2006,theListingRules,UKCorporateGovernanceCode,the AssociationofInvestmentCompanies’CodeandStatement ofRecommendedPractice,Section1158oftheCorporation TaxAct2010andTheCompanies(MiscellaneousReporting) Regulations2018.WeunderstoodhowtheCompanyis complyingwiththoseframeworksthroughdiscussionswith theAuditCommitteeandCompanySecretaryandreviewof Boardminutes. — WeassessedthesusceptibilityoftheCompany’sfinancial statementstomaterialmisstatement,includinghowfraud mightoccurbyconsideringthekeyrisksimpactingthe financialstatements.Weidentifiedafraudriskwithrespectto theincompleteorinaccuraterevenuerecognitionthrough incorrectclassificationofspecialdividendsasrevenueor capitalitemsintheIncomeStatement.Wealsoidentifieda fraudriskwithrespecttotheincorrectvaluationofthe unquotedandsuspendedinvestmentsandtheresultant impactonunrealisedgains/(losses).Furtherdiscussionofour approachissetoutinthesectiononkeyauditmattersabove whichincludeourresponsetothefraudrisksandotherareas ofauditfocus. — Basedonthisunderstandingwedesignedouraudit procedurestoidentifynon-compliancewithsuchlawsand regulations.Ourproceduresinvolvedreviewofthereporting totheDirectorswithrespecttotheapplicationofthe documentedpoliciesandproceduresandreviewofthe financialstatementstoensurecompliancewiththereporting requirementsoftheCompany. Afurtherdescriptionofourresponsibilitiesfortheauditofthe financialstatementsislocatedontheFinancialReportingCouncil’s websiteatfrc.org.uk/auditorsresponsibilities.Thisdescription formspartofourauditor’sreport. Other Matters we are Required to Address — FollowingtherecommendationfromtheAuditCommittee,we wereappointedbytheCompanyon2August2017toaudit thefinancialstatementsfortheyearending30April2018and subsequentfinancialperiods.Theperiodoftotaluninterrupted engagementincludingpreviousrenewalsandreappointments is5years,coveringtheyearsending30April2018to30April 2022. — Theauditopinionisconsistentwiththeadditionalreporttothe AuditCommittee. Use of Our Report ThisreportismadesolelytotheCompany’smembers,asabody, inaccordancewithChapter3ofPart16oftheCompaniesAct 2006.Ourauditworkhasbeenundertakensothatwemight statetotheCompany’smembersthosematterswearerequired tostatetotheminanauditor’sreportandfornootherpurpose. Tothefullestextentpermittedbylaw,wedonotacceptor assumeresponsibilitytoanyoneotherthantheCompanyandthe Company’smembersasabody,forourauditwork,forthisreport, orfortheopinionswehaveformed. CarolineMercer(Seniorstatutoryauditor) forandonbehalfofErnst&YoungLLP,StatutoryAuditor Edinburgh 20June2022 Financial Report 44AnnualReport2022 Income Statement For the year ended 30 April Notes 2022 Revenue £’000 2022 Capital £’000 2022 Total £’000 2021 Revenue £’000 2021 Capital £’000 2021 Total £’000 (Losses)/gainsoninvestments 9 – (631,829) (631,829) – 1,069,700 1,069,700 Currency(losses)/gains 14 – (308) (308) – 1,916 1,916 Income 2 27,811 – 27,811 22,529 – 22,529 Investmentmanagementfee 3 (10,465) – (10,465) (10,011) – (10,011) Otheradministrativeexpenses 4 (1,888) – (1,888) (1,656) – (1,656) Net return before finance costs and taxation 15,458 (632,137) (616,679) 10,862 1,071,616 1,082,478 Financecostsofborrowings 5 (5,298) – (5,298) (5,027) – (5,027) Net return on ordinary activities before taxation 10,160 (632,137) (621,977) 5,835 1,071,616 1,077,451 Taxonordinaryactivities 6 (1,516) 293 (1,223) 1,966 (958) 1,008 Net return on ordinary activities after taxation 8,644 (631,844) (623,200) 7,801 1,070,658 1,078,459 Net return per ordinary share 7 3.67p (268.58p) (264.91p) 3.42p 469.83p 473.25p Note: Dividendspersharepaidandpayable inrespectoftheyear 8 2.35p 2.00p 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48to64areanintegralpartoftheFinancialStatements. Financial Report The Monks Investment Trust PLC 45 Balance Sheet Theaccompanyingnotesonpages48to64areanintegralpartoftheFinancialStatements. As at 30 April Notes 2022 £’000 2022 £’000 2021 £’000 2021 £’000 Fixed assets Investmentsheldatfairvaluethroughprofitorloss 9 2,662,015 3,238,130 Current assets Debtors 10 8,072 3,936 Cashandcashequivalents 19 35,879 108,723 43,951 112,659 Creditors Amountsfallingduewithinoneyear 11 (126,257) (5,063) Net current (liabilities)/assets (82,306) 107,596 Total assets less current liabilities 2,579,709 3,345,726 Creditors and Provisions Amountsfallingdueaftermorethanoneyear: Debenturestock 12 – (39,940) Loannotes 12 (99,853) (99,848) Provisionfortaxliability 12 (692) (958) (100,545) (140,746) 2,479,164 3,204,980 Capital and reserves Sharecapital 13 11,823 11,823 Sharepremiumaccount 14 262,183 262,183 Capitalredemptionreserve 14 8,700 8,700 Capitalreserve 14 2,129,483 2,859,214 Revenue reserve 14 66,975 63,060 Shareholders’ funds 15 2,479,164 3,204,980 Shareholders’ funds per ordinary share 15 1,089.0p 1,355.4p (borrowingsatbookvalue) TheFinancialStatementsofTheMonksInvestmentTrustPLC(Companyregistrationnumber236964)onpages44to64wereapprovedand authorisedforissuebytheBoardandweresignedon20June2022. KSSternberg Chairman Financial Report 46AnnualReport2022 Statement of Changes in Equity For the year ended 30 April 2022 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2021 11,823 262,183 8,700 2,859,214 63,060 3,204,980 Netreturnonordinaryactivitiesaftertaxation – – – (631,844) 8,644 (623,200) Ordinarysharesboughtback 13 – – – (97,887) – (97,887) Dividendspaidduringtheyear 8 – – – – (4,729) (4,729) Shareholders’ funds at 30 April 2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164 Theaccompanyingnotesonpages48to64areanintegralpartoftheFinancialStatements. For the year ended 30 April 2021 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2020 11,178 94,328 8,700 1,788,556 60,862 1,963,624 Netreturnonordinaryactivitiesaftertaxation – – – 1,070,658 7,801 1,078,459 Ordinarysharesissued 13 645 167,855 – – – 168,500 Dividendspaidduringtheyear 8 – – – – (5,603) (5,603) Shareholders’ funds at 30 April 2021 11,823 262,183 8,700 2,859,214 63,060 3,204,980 Financial Report The Monks Investment Trust PLC 47 Theaccompanyingnotesonpages48to64areanintegralpartoftheFinancialStatements. Cash Flow Statement For the year ended 30 April Notes 2022 £’000 2022 £’000 2021 £’000 2021 £’000 Cash flows from operating activities Netreturnonordinaryactivitiesbeforetaxation (621,977) 1,077,451 Netlosses/(gains)oninvestments 631,829 (1,069,700) Currencylosses/(gains) 308 (1,916) Financecostsofborrowings 5,298 5,027 Overseastaxincurred (1,586) (1,718) Corporationtaxrefund – 3,664 Changesindebtorsandcreditors 452 1,650 Cash from operations * 14,324 14,458 Interestpaid (4,991) (4,547) Net cash inflow from operating activities 9,333 9,911 Cash flows from investing activities Acquisitionsofinvestments (484,720) (573,161) Disposalsofinvestments 424,157 490,209 Net cash outflow from investing activities (60,563) (82,952) Cash flows from financing activities Equitydividendspaid 8 (4,729) (5,603) Ordinarysharesboughtback (91,577) – Ordinarysharesissued – 169,924 Privateplacementdebtnotesissued – 99,844 Borrowingsrepaid – (99,596) Borrowingsdrawndown 75,000 – Net cash (outflow)/inflow from financing activities (21,306) 164,569 (Decrease)/increase in cash and cash equivalents (72,536) 91,528 Exchangemovements (308) (2,342) Cashandcashequivalentsat1May 108,723 19,537 Cash and cash equivalents at 30 April 35,879 108,723 * Cashfromoperationsincludesdividendsreceivedof£28,165,000(2021–£22,668,000)andinterestreceivedof£1,000(2021–£365,000). Financial Report 48AnnualReport2022 TheMonksInvestmentTrustPLC(‘theCompany’)isapublic companylimitedbysharesandisincorporatedinEnglandand Wales.TheCompanyisaninvestmentcompanywithinthemeaning ofsection833oftheCompaniesAct2006andcarriesonbusiness asaninvestmenttrust. 1 Principal Accounting Policies TheFinancialStatementsfortheyearto30April2022havebeen preparedinaccordancewithFRS102‘TheFinancialReporting StandardapplicableintheUKandRepublicofIreland’onthebasis oftheaccountingpoliciessetoutbelowwhichareunchangedfrom theprioryearandhavebeenappliedconsistently. (a) Basis of Accounting AlloftheCompany’soperationsareofacontinuingnatureandthe FinancialStatementsarepreparedonagoingconcernbasisunder thehistoricalcostconvention,modifiedtoincludetherevaluationof fixedassetinvestmentsatfairvaluethroughprofitorloss,andon theassumptionthatapprovalasaninvestmenttrustundersection 1158oftheCorporationTaxAct2010andtheInvestmentTrust (ApprovedCompany)(Tax)Regulations2011willberetained. The Boardhas,inparticular,consideredtheimpactofheightened marketvolatilityduringtheCovid-19pandemicandoverrecent monthsowingtomacroeconomicandgeopoliticalconcerns, includingtheRussia-Ukraineconflict,butdoesnotbelievethe Company’sgoingconcernstatusisaffected.  TheCompany’sassets,themajorityofwhichareinvestmentsin quotedsecuritieswhicharereadilyrealisable(Level1),exceedits liabilitiessignificantlyandcouldbesoldtorepayborrowingsif required.AllborrowingsrequirethepriorapprovaloftheBoard. Gearinglevelsandcompliancewithborrowingcovenantsare reviewedbytheBoardonaregularbasis.Duringtheyear,the Companysecureda£150millionthreeyearflexiblefacilitywith NationalAustraliaBankLimited(‘NAB’)toreplacethe£100million NABfacilityexpiring30November2021andtheupto£50million Scotiabank(Ireland)facilityexpiring13March2022.TheBoardis consideringthebestformofborrowingstoreplacetheCompany’s £40milliondebenturestockmaturingon1March2023butis confidentthatappropriatefinancingwillbesecured.Inthe meantime,the£150millionNABfacilityhas£75millioncommitment stillundrawn.  TheCompanyhascontinuedtocomplywiththeinvestmenttrust statusrequirementsofsection1158oftheCorporationTaxAct 2010andtheInvestmentTrust(ApprovedCompany)Regulations 2011.TheCompany’sprimarythirdpartysuppliers,includingits ManagersandSecretaries,CustodianandDepositary,Registrar, AuditorandBroker,havenotexperiencedsignificantoperational difficultiesaffectingtheirrespectiveservicestotheCompany,asa resultoftheCovid-19pandemic.  Accordingly,theFinancialStatementshavebeenpreparedonthe goingconcernbasisasitistheDirectors’opinion,havingassessed theprincipalandemergingrisksandothermattersincludingthe impactoftheCovid-19pandemicsetoutintheViabilityStatement onpage20,whichassessestheprospectsoftheCompanyovera periodofthreeyears,thattheCompanywillcontinueinoperational existencefortheperiodto31July2023,whichisaperiodofat leasttwelvemonthsfromthedateofapprovaloftheseFinancial Statements.  TheFinancialStatementshavebeenpreparedinaccordancewith theCompaniesAct2006,applicableUnitedKingdomAccounting StandardsandwiththeAIC’sStatementofRecommended Practice‘FinancialStatementsofInvestmentTrustCompaniesand VentureCapitalTrusts’issuedinNovember2014andupdatedin April2021withconsequentialamendments.  InordertoreflectbettertheactivitiesoftheCompanyandin accordancewithguidanceissuedbytheAIC,supplementary informationwhichanalysestheprofitandlossaccountbetween itemsofarevenueandcapitalnaturehasbeenpresentedinthe IncomeStatement.  InpreparingtheseFinancialStatementstheDirectorshave consideredtheimpactofclimatechangeriskasaprincipalrisk assetoutonpage19.InlinewithFRS102investmentsare valuedatfairvalue,beingprimarilyquotedpricesforinvestments inactivemarketsatthebalancesheetdate,andthereforereflect marketparticipants’viewofclimatechangerisk.Unlisted investments,valuedbyreferencetocomparablecompanies (see1(d)below),similarlyreflectmarketparticipants’viewof climatechangerisk.  TheDirectorsconsidertheCompany’sfunctionalcurrencyto besterlingastheCompany’sshareholdersarepredominantly basedintheUK,theCompanyissubjecttotheUK’sregulatory environmentanditisthecurrencyinwhichitsdividendsand expensesaregenerallypaid. (b) Financial Instruments Financialassetsandfinancialliabilitiesarerecognisedinthe Company’sBalanceSheetwhenitbecomesapartytothe contractualprovisionsoftheinstrument. (c) Accounting Estimates, Assumptions and Judgements ThepreparationoftheFinancialStatementsrequirestheuse ofestimates,assumptionsandjudgements.Theseestimates, assumptionsandjudgementsaffectthereportedamountsof assetsandliabilities,atthereportingdate.Whileestimatesare basedonbestjudgementusinginformationandfinancialdata available,theactualoutcomemaydifferfromtheseestimates. Thekeysourcesofestimationanduncertaintyrelatetothefair valueoftheunlistedinvestments. Estimates  ThekeyestimateintheFinancialStatementsisthedetermination ofthefairvalueoftheunlistedinvestmentsbytheManagersfor considerationbytheDirectors.Thisestimateiskeyasit significantlyimpactsthevaluationoftheunlistedinvestmentsat theBalanceSheetdate.Thefairvaluationprocessinvolves estimationusingsubjectiveinputsthatareunobservable(for whichmarketdataisunavailable).Themainestimatesinvolvedin theselectionofthevaluationprocessinputsare: (i) theselectionofappropriatecomparablecompaniesinorder toderiverevenuemultiplesandmeaningfulrelationships betweenenterprisevalue,revenueandearningsgrowth. Comparablecompaniesarechosenonthebasisoftheir businesscharacteristicsandgrowthpatterns; (ii) theselectionofarevenuemetric(eitherhistoricalorforecast); (iii) theapplicationofanappropriatediscountfactortoreflectthe reducedliquidityofunlistedcompaniesversustheirlisted peers; (iv) theestimationoftheprobabilityassignedtoanexitbeing throughaninitialpublicoffering(‘IPO’)oracompanysale; (v) theselectionofanappropriateindustrybenchmarkindex toassistwiththevaluationvalidationortheapplicationof valuationadjustments,particularlyintheabsenceof establishedearningsorcloselycomparablepeers;and (vi) thecalculationofvaluationadjustmentsderivedfrom milestoneanalysis(i.e.incorporatingoperationalsuccess againsttheplan/forecastsofthebusinessintothevaluation). Notes to the Financial Statements Financial Report The Monks Investment Trust PLC 49  Fairvalueestimatesarecross-checkedtoalternativeestimation methodswherepossibletoimprovetherobustnessofthe estimates.Asthevaluationoutcomesmaydifferfromthefair valueestimatesapricesensitivityanalysisisprovidedinOther PriceRiskSensitivityinnote19onpages60to62toillustratethe effectontheFinancialStatementsofanoverorunderestimation offairvalues.Theriskofanoverorunderestimationoffairvalues isgreaterwhenmethodologiesareappliedusingmoresubjective inputs. Assumptions ThedeterminationoffairvaluebytheManagersinvolveskey assumptionsdependentuponthevaluationtechniqueused.As explainedin1(d)below,theprimarytechniqueappliedunderthe IPEVGuidelinesistheMultiplesapproach.WheretheMultiples approachisusedthevaluationprocessrecognisesalso,asstated intheIPEVGuidelines,thatthepriceofarecentinvestmentmay beanappropriatecalibrationforestimatingfairvalue.The Multiplesapproachinvolvessubjectiveinputsandtherefore presentsagreaterriskofoverorunderestimationandparticularly intheabsenceofarecenttransaction.  ThekeyassumptionsfortheMultiplesapproacharethatthe selectionofcomparablecompaniesprovidesareasonablebasis foridentifyingrelationshipsbetweenenterprisevalue,revenueand growthtoapplyinthedeterminationoffairvalue.Other assumptionsinclude: (i) thediscountappliedforreducedliquidityversuslistedpeers; (ii) theprobabilitiesassignedtoanexitbeingthrougheitheran IPOoracompanysale;and (iii)thattheapplicationofmilestoneanalysisandindustry benchmarkindicesareareasonablebasisforapplying appropriateadjustmentstothevaluations.Valuationsare cross-checkedforreasonablenesstoalternativeMultiples- basedapproachesorbenchmarkindexmovementsas appropriate. Judgements TheDirectorsconsiderthatthepreparationoftheFinancial Statementsinvolvesthefollowingkeyjudgements: (i) thedeterminationofthefunctionalcurrencyoftheCompany assterling(seerationalein1(a)above);and (ii) thefairvaluationoftheunlistedinvestments.  Thekeyjudgementsinthefairvaluationprocessare: (i) theManagers’determinationoftheappropriateapplicationof theInternationalPrivateEquityandVentureCapitalValuation (‘IPEV’)Guidelines2018toeachunlistedinvestment;and (ii) theDirectors’considerationofwhethereachfairvalueis appropriatefollowingdetailedreviewandchallenge.The judgementappliedintheselectionofthemethodologyused (see1(d)below)fordeterminingthefairvalueofeachunlisted investmentcanhaveasignificantimpactuponthevaluation. (d) Investments TheCompany’sinvestmentsareclassified,recognisedand measuredatfairvaluethroughprofitandlossinaccordancewith sections11and12ofFRS102.Investmentpurchasesandsales arerecognisedonatradedatebasis.Investmentsareinitially measuredatfairvalue,whichistakentobetheircostexcluding expensesincidentaltopurchaseswhichareexpensedtocapital onacquisition.Gainsandlossesoninvestments,includingthose arisingfromforeigncurrencyexchangedifferencesandexpenses incidentaltothepurchaseandsaleofinvestments,are recognisedintheIncomeStatementascapitalitems.  Thefairvalueoflistedinvestmentsiseitherthebidpriceorthe lasttradedpricedependingontheconventionoftheexchange onwhichtheinvestmentislisted.Thefairvalueofsuspended investmentsisthelasttradedprice,adjustedfortheestimated impactonthebusinessofthesuspension. Private Company Investments  Privatecompanyinvestmentsarevaluedatfairvaluebythe Directorsfollowingadetailedreviewandappropriatechallengeof thevaluationsproposedbytheManagers.TheManagers’private companyinvestmentpolicyappliestechniquesconsistentwiththe InternationalPrivateEquityandVentureCapitalValuationGuidelines 2018(‘IPEV’).Thetechniquesappliedarepredominantlymarket- basedapproaches.Themarket-basedapproachesavailableunder IPEVaresetoutbelowandarefollowedbyanexplanationofhow theyareappliedtotheCompany’sprivatecompanyportfolio: — Multiples; — IndustryValuationBenchmarks;and — AvailableMarketPrices.  Thenatureoftheprivatecompanyportfoliocurrentlywillinfluence thevaluationtechniqueapplied.Thevaluationapproachrecognises that,asstatedintheIPEVGuidelines,thepriceofarecent investment,ifresultingfromanorderlytransaction,generally representsfairvalueasatthetransactiondateandmaybean appropriatestartingpointforestimatingfairvalueatsubsequent measurementdates.However,considerationisgiventothefacts andcircumstancesasatthesubsequentmeasurementdate, includingchangesinthemarketorperformanceoftheinvestee company.Milestoneanalysisisusedwhereappropriateto incorporatetheoperationalprogressoftheinvesteecompanyinto thevaluation.Additionally,thebackgroundtothetransactionmust beconsidered.Asaresult,variousmultiples-basedtechniquesare employedtoassessthevaluationsparticularlyinthosecompanies withestablishedrevenues.Discountedcashflowsareusedwhere appropriate.Anabsenceofrelevantindustrypeersmaypreclude theapplicationoftheIndustryValuationBenchmarkstechnique andanabsenceofobservablepricesmayprecludetheAvailable MarketPricesapproach.Allvaluationsarecross-checkedfor reasonablenessbyemployingrelevantalternativetechniques. Theprivatecompanyinvestmentsarevaluedaccordingtoathree monthlycycleofmeasurementdates.Thefairvalueoftheprivate companyinvestmentswillbereviewedbeforethenextscheduled threemonthlymeasurementdateonthefollowingoccasions: — attheyearendandhalfyearendoftheCompany;and — wherethereisanindicationofachangeinfairvalueas definedintheIPEVguidelines(commonlyreferredtoas ‘trigger’events). Financial Report 50AnnualReport2022 (e) Cash and Cash Equivalents  Cashequivalentscompriseshort-termhighlyliquidinvestments thatarereadilyconvertibletoknownamountsofcashandare subjecttoaninsignificantriskofchangesinvalue. (f) Income (i) Incomefromequityinvestmentsisbroughtintoaccounton thedateonwhichtheinvestmentsarequotedex-dividendor, wherenoex-dividenddateisquoted,whentheCompany’s righttoreceivepaymentisestablished.Equityinvestment incomeincludesdistributionsfromCollectiveInvestment Schemes,otherthanthosethatrelatetoequalisationwhich aretreatedascapitalitems.Specialdividendsaretreatedas revenueorcapitalitemsdependingonthefactsofeach particularcase.  Ifscripistakeninlieuofdividendsincash,thenetamount ofthecashdividenddeclarediscreditedtotherevenue account.Anyexcessinthevalueofthesharesreceivedover theamountofthecashdividendforegoneisrecognisedas capital. (ii) Interestfromfixedinterestsecuritiesisrecognisedonan effectiveyieldbasis. (iii) Unfrankedinvestmentincomeandoverseasdividends includethetaxesdeductedatsource. (iv) Interestreceivableondepositsisrecognisedonanaccruals basis. (g) Expenses Allexpensesareaccountedforonanaccrualsbasisandare chargedtotherevenueaccountexceptwhere:(i)theyrelateto expensesincidentaltothepurchaseorsaleofinvestments (transactioncosts)whicharechargedtocapital.Transactioncosts aredetailedinnote 9 onpage54;or(ii)theyrelatedirectlytothe buy-back/issuanceofshares,inwhichcasetheyareaddedtothe buy-backcostordeductedfromtheshareissuanceproceeds. (h) Borrowings and Finance Costs  Borrowings,whichcompriseinterestbearingbankloans,loan notesanddebenturesarerecognisedinitiallyatthefairvalueof theconsiderationreceived,netofanyissueexpenses,and subsequentlyatamortisedcostusingtheeffectiveinterestrate method.Thefinancecostsofsuchborrowingsareaccounted foronanaccrualsbasisusingtheeffectiveinterestratemethod andareallocatedtorevenueintheIncomeStatement. (i) Taxation  Thetaxationchargerepresentsthesumofcurrenttaxandthe movementintheprovisionfordeferredtaxationduringtheyear. Currenttaxationrepresentsnon-recoverableoverseastaxes whichischargedtotherevenueaccountswhereitrelatesto incomereceivedandtocapitalwhereitrelatestoitemsofa capitalnature.Deferredtaxationisprovidedonalltiming differenceswhichhaveoriginatedbutnotreversedbytheBalance Sheetdate,calculatedonanon-discountedbasisatthetaxrates expectedtoapplywhenthetimingdifferencesreverse,basedon whathasbeenenactedorsubstantivelyenacted,relevanttothe benefitorliability.Deferredtaxassetsarerecognisedonlytothe extentthatitismorelikelythannotthattherewillbetaxable profitsfromwhichunderlyingtimingdifferencescanbededucted. (j) Dividend Distributions  Whererelevant,interimdividendsarerecognisedintheperiodin whichtheyarepaid.Finaldividendsarerecognisedintheperiod inwhichthedividendsareapprovedbytheCompany’s shareholders. (k) Foreign Currencies  Transactionsinvolvingforeigncurrenciesareconvertedattherate rulingatthetimeofthetransaction.Monetaryassetsandliabilities andfixedassetinvestmentinforeigncurrenciesaretranslated attheclosingratesofexchangeattheBalanceSheetdate. Anygainorlossarisingfromachangeinexchangerate subsequenttothedateofthetransactionisincludedasan exchangegainorlossintheIncomeStatementascapitalor revenueasappropriate. (l) Share Premium Account Thebalanceclassifiedassharepremiumrepresents: —theexcessoftheproceedsofissuanceofnewsharesover thenominalvalue;and —theproceedsofsalesofsharesheldintreasuryinexcessof theweightedaveragepricepaidbytheCompanyto repurchasetheshares. (m) Capital Redemption Reserve  Thenominalvalueofordinarysharecapitalrepurchasedand cancelledistransferredoutofthecalled-upsharecapitalandinto thecapitalredemptionreserve. (n) Capital Reserve  Gainsandlossesonrealisationofinvestments,changesinthe fairvalueofinvestmentsheldandexchangedifferencesofa capitalnaturearedealtwithinthisreserve.Purchasesofthe Company’sownsharesarealsofundedfromthisreserve.The salesproceedsoftreasurysharesreissuedaretreatedasa realisedprofituptotheamountoftheweightedaveragepurchase priceofthosesharesandtransferredtothecapitalreserve. (o) Revenue Reserve  Therevenueprofitorlossfortheyearistakentoorfromthis reserve.Therevenuereservemaybedistributedbywayofa dividend. (p) Single Segment Reporting  TheCompanyisengagedinasinglesegmentofbusiness, beingthatofaninvestmenttrustcompany,consequently nobusinesssegmentalanalysisisprovided. Financial Report The Monks Investment Trust PLC 51 2 Income 2022 £’000 2021 £’000 Income from investments UKdividends 10,519 4,785 Overseasdividends 17,291 17,379 Other Income 27,810 22,164 DepositInterest 1 365 Total Income 27,811 22,529 Total income comprises: Dividendsfromfinancialassetsdesignatedatfairvaluethroughprofitorloss 27,810 22,164 Interestfromfinancialassetsnotatfairvaluethroughprofitorloss 1 365 27,811 22,529 Specialdividendentitlementsarisingintheyearamountedto£2,526,000(2021–£1,096,000)with£2,393,000(2021–£1,096,000) classifiedasrevenueand£133,000(2021–nil)classifiedascapital. 3 Investment Management Fee 2022 £’000 2021 £’000 Investmentmanagementfee 10,465 10,011 DetailsoftheInvestmentManagementAgreementaredisclosedonpage24.TheannualmanagementfeepayabletoBaillieGifford&Co Limitedis0.45%onthefirst£750millionoftotalassets,0.33%onthenext£1billionoftotalassetsand0.30%ontheremainingtotal assets.Forfeepurposes,totalassetsisdefinedasthetotalvalueofallassetsheldlessallliabilities(otherthananyliabilityintheformofdebt intendedforinvestmentpurposes)andexcludesthevalueoftheCompany’sholdingsinTheSchiehallionFund,aclosed-endedinvestment companymanagedbyBaillieGifford&Co.TheCompanydoesnotcurrentlyholdanyothercollectiveinvestmentvehiclesmanagedbyBaillie Gifford&Co.WheretheCompanyholdsinvestmentsinopen-endedcollectiveinvestmentvehiclesmanagedbyBaillieGifford,suchas OEICs,Monks’shareofanyfeeschargedwithinthatvehiclewillberebatedtotheCompany.Alldebtdrawndownduringtheperiodsunder reviewisintendedforinvestmentpurposes. 4 Other Administrative Expenses 2022 £’000 2021 £’000 Generaladministrativeexpenses 1,658 1,407 Directors’fees(seeDirectors’RemunerationReportonpage35) 179 206 Auditor’sremuneration–statutoryauditofannualFinancialStatements * 50 42 Auditor’snon-auditremuneration–non-auditservices(seepage33) 1 1 1,888 1,656 IrrecoverableVATonauditfeesisincludedwithingeneraladministrativeexpenses. 5 Finance Costs of Borrowings 2022 £’000 2021 £’000 Bankloans 886 1,113 Debenturestocks 2,583 2,583 Loannotes 1,829 1,331 5,298 5,027 Financial Report 52AnnualReport2022 6 Tax on Ordinary Activities 2022 Revenue £’000 2022 Capital £’000 2022 Total £’000 2021 Revenue £’000 2021 Capital £’000 2021 Total £’000 Overseastaxation 1,516 – 1,516 1,698 – 1,698 UKcorporationtaxrefunded – – – (3,664) – (3,664) Indiancapitalgainstaxpaidandprovidedfor – (293) (293) – 958 958 1,516 (293) 1,223 (1,966) 958 (1,008) 2022 £’000 2021 £’000 Thetaxchargefortheyearishigher(2021–lower)thanthestandardrateofcorporationtax  intheUKof19%(2021–19%).Thedifferencesareexplainedbelow: Netreturnbeforetaxation (621,977) 1,077,451 Netreturnbeforetaxationmultipliedbytheaveragestandardrateofcorporationtax  intheUKof19%(2021–19%) (118,176) 204,716 Capitalreturnsnottaxable 120,106 (203,607) Incomenottaxable (5,067) (3,927) Taxableexpensesintheyearnotutilised 3,137 2,818 Overseastax 1,516 1,698 Corporationtaxrefundinrespectofprioryears – (3,664) Revenuetaxchargefortheyear 1,516 (1,966) (Decrease)/increaseinprovisionfortaxliabilityinrespectofIndiancapitalgains (266) 958 RefundofIndiantaxinrespectofpriorperiods (27) – Capitaltaxchargefortheyear (293) 958 Totaltaxchargefortheyear 1,223 (1,008) Asaninvestmenttrust,theCompany’scapitalgainsarenottaxableintheUnitedKingdom. Therevenuetaxchargefortheyearto30April2021includes£3,664,000UKcorporationtaxrepaidinrespectoftheCompany’sfinancial yearsto2008,2009and2010,followingsuccessfullegalactionregardingthetaxtreatmentofoverseasdividendincome.Thisamounthad notpreviouslybeenprovidedfor,asrecoverywasnotconsideredsufficientlyprobable.Itwasthereforerecognisedonreceipt.Asit exceededtheoverseaswithholdingtaxsufferedintheperiod,thisresultedinapositiverevenuetaxcharge. Interestonthecorporationtaxrepaymentwasincludedwithininterestincome. ThecapitaltaxchargeresultsfromthemovementintheprovisionfortaxliabilityinrespectofIndiancapitalgainstaxasdetailedinnote12. Factors that may Affect Future Tax Charges At30April2022theCompanyhadsurplusmanagementexpensesandlossesonnon-tradingloanrelationshipsof£108,019,000(2021– £94,683,000)whichhavenotbeenrecognisedasadeferredtaxasset.ThisisbecausetheCompanyisnotexpectedtogeneratetaxable incomeinafutureperiodinexcessofthedeductibleexpensesofthatfutureperiodand,accordingly,itisunlikelythattheCompanywillbe abletoreducefuturetaxliabilitiesthroughtheuseofexistingsurplusexpenses. Financial Report The Monks Investment Trust PLC 53 7 Net Return per Ordinary Share 2022 Revenue 2022 Capital 2022 Total 2021 Revenue 2021 Capital 2021 Total Netreturnperordinaryshare 3.67p (268.58p) (264.91p) 3.42p 469.83p 473.25p Revenuereturnperordinaryshareisbasedonthenetrevenuereturnonordinaryactivitiesaftertaxationof£8,644,000(2021–£7,801,000) andon235,252,716(2021–227,881,626)ordinarysharesof5p,beingtheweightedaveragenumberofordinarysharesinissueduring theyear. Capitalreturnperordinaryshareisbasedonthenetcapitallossforthefinancialyearof£631,844,000(2021–gainof£1,070,658,000)and on235,252,716(2021–227,881,626)ordinaryshares,beingtheweightedaveragenumberofordinarysharesinissueduringtheyear. Therearenodilutiveorpotentiallydilutivesharesinissue. 8 Ordinary Dividends 2022 2021 2022 £’000 2021 £’000 Amounts recognised as distributions in the year: Previousyear’sfinal(paid7September2021) 2.00p 2.50p 4,729 5,603 Wealsosetoutbelowthetotaldividendspaidandproposedinrespectofthefinancialyear,whichisthebasisonwhichtherequirements ofsection1158oftheCorporationTaxAct2010areconsidered.Therevenueavailablefordistributionbywayofdividendfortheyearis £8,644,000(2021–£7,801,000). 2022 2021 2022 £’000 2021 £’000 Amounts paid and payable in respect of the financial year: Proposedfinal(payable9September2022) 2.35p 2.00p 5,350 4,729 9 Fixed Assets – Investments As at 30 April 2022 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000 Listedandsuspendedequities 2,479,464 120,306 5,636 2,605,406 Unlistedequities – – 56,609 56,609 Totalfinancialassetinvestments 2,479,464 120,306 62,245 2,662,015 As at 30 April 2021 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000 Listedandsuspendedequities 3,039,527 129,609 – 3,169,136 Unlistedequities – – 68,994 68,994 Totalfinancialassetinvestments 3,039,527 129,609 68,994 3,238,130  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,anunlistedinvestment(GRAIL)wasacquiredbyalisted entity(Illumina),resultinginatransferof£6,429,000bookcost(£10,329,000fairvalue)fromLevel3toLevel1.Level2investmentscomprise theordinaryandCshareholdingsinTheSchiehallionFund.ThesuspendedinvestmentinBrillianceChinaAutomotivewasmovedfrom Level2toLevel3intheyear.SuspendedinvestmentsinSberbankofRussiaandVKCompanyhavebeenvaluedatnil. Financial Report 54AnnualReport2022 9 Fixed Assets – Investments (continued) Fair Value Hierarchy  Thefairvaluehierarchyusedtoanalysethebasisonwhichthefairvaluesoffinancialinstrumentsheldatfairvaluethroughtheprofitandloss accountaremeasuredisdescribedbelow.Fairvaluemeasurementsarecategorisedonthebasisofthelowestlevelinputthatissignificant tothefairvaluemeasurement. Level 1–usingunadjustedquotedpricesforidenticalinstrumentsinanactivemarket; Level 2–usinginputs,otherthanquotedpricesincludedwithinLevel1,thataredirectlyorindirectlyobservable(basedonmarketdata);and Level 3–usinginputsthatareunobservable(forwhichmarketdataisunavailable).  ThevaluationtechniquesusedbytheCompanyareexplainedintheaccountingpoliciesonpage49.Asensitivityanalysisbyvaluation techniqueoftheunlistedsecuritiesisgivenonpage61. 2022 Listed securities £’000 2022 Unlisted securities * £’000 2022 Total securities £’000 2021 Total securities £’000 Costofinvestmentsatstartofyear 1,684,937 54,195 1,739,132 1,445,130 Investmentholdinggainsatstartofyear 1,484,199 14,799 1,498,998 643,697 Valueofinvestmentsatstartofyear 3,169,136 68,994 3,238,130 2,088,827 Movementsinyear: Purchasesatcost 481,752 2,860 484,612 568,212 Salesproceedsreceived (428,898) – (428,898) (488,609) (Losses)/gainsoninvestments (623,013) (8,816) (631,829) 1,069,700 Changeinlisting 6,429 (6,429) – – Valueofinvestmentsatendofyear 2,605,406 56,609 2,662,015 3,238,130 Costofinvestmentsatendofyear 1,888,016 50,626 1,938,642 1,739,132 Investmentholdinggainsatendofyear 717,390 5,983 723,373 1,498,998 Valueofinvestmentsatendofyear 2,605,406 56,609 2,662,015 3,238,130 Includesholdingsinordinarysharesandpreferenceshares.  Thepurchasesandsalesproceedsfiguresaboveincludetransactioncostsof£374,000(2021–£714,000)and£173,000(2021–£192,000) respectively.TheCompanyreceived£428,898,000(2021–£488,609,000)frominvestmentssoldduringtheyear.Thebookcostofthese investmentswhentheywerepurchasedwas£285,102,000(2021–£274,210,000).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.Oftherealisedgainsonsalesof investmentsduringtheyearof£143,796,000(2021–gainsonsalesof£214,399,000),anetgainof£238,816,000(2021–gainof £117,824,000)wasincludedininvestmentholdinggainsatthepreviousyearend. 2022 £’000 2021 £’000 Net (losses)/gains on investments: Realisedgainsonsales 143,796 214,399 Changesininvestmentholdinggains (775,625) 855,301 (631,829) 1,069,700 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: 2022 Shares held 2022 Value £’000 2022 % of Shares held 2021 Shares held 2021 Value £’000 2021 % of Shares held SilkInvestAfricaFoodFund 10,000 4,958 42.6 10,000 6,065 42.6 Financial Report The Monks Investment Trust PLC 55 10 Debtors 2022 £’000 2021 £’000 Amounts falling due within one year: Accruedincome 2,461 2,719 Investmentsalesawaitingsettlement 4,741 – Shareissuanceproceedsawaitingsettlement 60 60 Overseastaxationrecoverable 655 1,032 Otherdebtorsandprepaidexpenses 155 125 8,072 3,936 Noneoftheabovedebtorsarefinancialassetsheldatfairvaluethroughprofitorloss.Thecarryingamountofdebtorsisareasonable approximationoffairvalue. 11 Creditors – Amounts falling due within one year 2022 £’000 2021 £’000 NationalAustraliaBankLimitedloan 75,000 – £40million6 3 / 8 %debenturestock2023 39,973 – Investmentpurchasesawaitingsettlement 833 941 Sharebuybacksawaitingsettlement 6,310 – Corporationtax 45 45 Othercreditorsandaccruals 4,096 4,077 126,257 5,063 Noneoftheabovecreditorsarefinancialliabilitiesheldatfairvaluethroughprofitorloss.Includedinothercreditorsis£2,286,000 (2021–£2,771,000)inrespectoftheinvestmentmanagementfee. Borrowing Facilities At30April2022theCompanyhada3year£150millionunsecuredfloatingraterevolvingfacilitywithNationalAustraliaBankLimited,which expireson29November2024. At30April2022drawingswereasfollows: — NationalAustraliaBankLimited:£75millionataninterestrateof1.4%overSONIA,being£50millionmaturinginAugust2022and £25millionmaturinginSeptember2022(2021–nil). 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2022(2021 – none). Financial Report 56AnnualReport2022 12 Creditors and Provisions – Amounts falling due after more than one year Repayment date Nominal rate Effective rate 2022 £’000 2021 £’000 £40million6 3 / 8 %debenturestock2023 1/3/2023 6.375% 6.5% – 39,940 £60million1.86%SeriesAnotes2054 7/8/2054 1.86% 1.86% 59,901 59,898 £40million1.77%SeriesBnotes2045 7/8/2045 1.77% 1.77% 39,952 39,950 99,853 139,788 ProvisionfortaxliabilityinrespectofIndiancapitalgainstax 692 958 100,545 140,746 Debenture Stock Thedebenturestockisstatedatamortisedcost(seenote1(h)onpage50);thecumulativeeffectistodecreasethecarryingamount ofborrowingsby£27,000(2021–£60,000).ThedebenturestockissecuredbyafloatingchargeovertheassetsoftheCompany. UnderthetermsoftheDebentureAgreement,totalborrowingsshouldnotexceednetassetsandtheCompanycannotundertake sharebuy-backsifthiswouldresultintotalborrowingsexceeding66.67%. 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£147,000(2021–£152,000). Provision for Tax Liability Thetaxliabilityprovisionat30April2022of£692,000(30April2021–£958,000)relatestoapotentialliabilityforIndiancapitalgainstaxthat mayariseontheCompany’sIndianinvestmentsshouldtheybesoldinthefuture,basedonthenetunrealisedtaxablecapitalgainsatthe periodendandonenactedIndiantaxrates.Theamountofanyfuturetaxamountspayablemaydifferfromthisprovision,dependingonthe valueandtimingofanyfuturesalesofsuchinvestmentsandfutureIndiantaxrates. 13 Share Capital 2022 Number 2022 £’000 2021 Number 2021 £’000 Allotted,calledupandfullypaidordinarysharesof5peach 227,645,309 11,382 236,453,859 11,823 Treasurysharesof5peach 8,808,550 441 – – Total 236,453,859 11,823 236,453,859 11,823 TheCompany’sauthoritypermitsittoholdsharesboughtback‘intreasury’.Suchtreasurysharesmaybesubsequentlyeithersoldforcash (at,oratapremiumto,netassetvalueperordinaryshare)orcancelled.Intheyearto30April2022,8,808,550shareswithanominalvalue of£441,000wereboughtbackatatotalcostof£97,887,000tobeheldintreasury(2021–12,900,000ordinaryshareswereissuedata nominalvalueof£645,000,raisingnetproceedsof£168,500,000).Noshareswereissuedduringtheyearandat30April2022,8,808,550 shareswereheldintreasury.At30April2022theCompanyhadauthoritytobuyback26,635,883ordinarysharesandtoallotorsellfrom treasury23,645,385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2022to16June2022theCompanyboughtbackafurther 2,837,722shareswithanominalvalueof£142,000attotalcostof£27,412,000tobeheldintreasury.At16June202211,646,272shares wereheldintreasuryandtheCompanyhadauthorityremainingtobuybackafurther23,798,161ordinaryshares. Financial Report The Monks Investment Trust PLC 57 14 Capital and Reserves Share capital £’000 Share premium account £’000 Capital redemption reserve £’000 Capital reserve £’000 Revenue reserve £’000 Shareholders’ funds £’000 At1May2021 11,823 262,183 8,700 2,859,214 63,060 3,204,980 Gainsoninvestments – – – (631,829) – (631,829) Otherexchangedifferences – – – (308) – (308) MovementinprovisionfortaxonIndian  notionalcapitalgains – – – 293 – 293 Revenuereturnonordinaryactivities  aftertaxation – – – – 8,644 8,644 Ordinarysharesboughtback – – – (97,887) – (97,887) Dividendspaidintheyear – – – – (4,729) (4,729) At30April2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164 Share capital £’000 Share premium account £’000 Capital redemption reserve £’000 Capital reserve £’000 Revenue reserve £’000 Shareholders’ funds £’000 At1May2020 11,178 94,328 8,700 1,788,556 60,862 1,963,624 Gainsoninvestments – – – 1,069,700 – 1,069,700 Exchangedifferencesonbankloans – – – 4,258 – 4,258 Otherexchangedifferences – – – (2,342) – (2,342) MovementinprovisionfortaxonIndian  notionalcapitalgains – – – (958) – (958) Revenuereturnonordinaryactivities  aftertaxation – – – – 7,801 7,801 Ordinarysharesissued 645 167,855 – – – 168,500 Dividendspaidintheyear – – – – (5,603) (5,603) At30April2021 11,823 262,183 8,700 2,859,214 63,060 3,204,980 Thecapitalreservebalanceat30April2022includesinvestmentholdinggainsoninvestmentsof£723,373,000(2021–gainsof £1,498,988,000)asdetailedinnote9onpage54.Therevenuereserveisdistributablebywayofdividend. 15 Shareholders’ Funds Per Ordinary Share 2022 2021 Shareholders’funds £2,479,164,000 £3,204,980,000 Numberofordinarysharesinissueattheyearend 227,645,309 236,453,859 Shareholders’fundsperordinaryshare 1,089.0p 1,355.4p Theshareholders’fundsfiguresabovehavebeencalculatedafterdeductingborrowingsatbookvalue,inaccordancewiththeprovisions ofFRS102.Thenetassetvaluefigureshavebeencalculatedafterdeductingborrowingsateitherparvalueorfairvalue.Reconciliations betweenshareholders’fundsandbothNAVmeasuresareshownintheGlossaryofTermsandAlternativePerformanceMeasuresonpages 74to76. Financial Report 58AnnualReport2022 16 Analysis of Change in Net Debt At 1 May 2021 £’000 Cash flows £’000 Other non-cash changes £’000 Exchange movement £’000 At 30 April 2022 £’000 Cashatbankandinhand 108,723 (72,536) – (308) 35,879 Loansduewithinoneyear – (75,000) – – (75,000) Debenturestocks (39,940) – (33) – (39,973) Loannotes (99,848) – (5) – (99,853) (31,065) (147,536) (38) (308) (178,947) At 1 May 2020 £’000 Cash flows £’000 Other non-cash changes £’000 Exchange movement £’000 At 30 April 2021 £’000 Cashatbankandinhand 19,537 91,528 – (2,342) 108,723 Loansduewithinoneyear (103,854) 99,596 – 4,258 – Debenturestocks (39,908) – (32) – (39,940) Loannotes – (99,844) (4) – (99,848) (124,225) 91,280 (36) 1,916 (31,065) 17 Contingent Liabilities, Guarantees and Financial Commitments  At30April2022and30April2021theCompanyhadnocontingentliabilities,guaranteesorfinancialcommitments. 18 Transactions with Related Parties and the Managers and Secretaries  TheDirectors’feesandshareholdingsaredetailedintheDirectors’RemunerationReportonpages35and36.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page24anddetailsofthefeesduringtheyearandthe balancesoutstandingattheyearendareshowninnotes3and11respectively. 19 Financial Instruments Asaninvestmenttrust,theCompanyinvestsinequitiesandmakesotherinvestmentssoastosecureitsinvestmentobjectiveofcapital growth.TheCompanyborrowsmoneywhentheBoardandinvestmentmanagershavesufficientconvictionthattheassetsfundedby borrowedmonieswillgenerateareturninexcessofthecostofborrowing.Inpursuingitsinvestmentobjective,theCompanyisexposedto avarietyofrisksthatcauseshorttermvariationintheCompany’snetassetsandcouldresultineitherareductionintheCompany’snet assetsorareductionintheprofitsavailablefordividend.  Theserisksarecategorisedhereasmarketrisk(comprisingcurrencyrisk,interestrateriskandotherpricerisk),liquidityriskandcreditrisk. TheBoardmonitorscloselytheCompany’sexposurestotheserisksbutdoessoinordertoreducethelikelihoodofapermanentreduction intheCompany’snetassetsratherthantominimisetheshorttermvolatility.  Theriskmanagementpoliciesandproceduresoutlinedinthisnotehavenotchangedsubstantiallyfromthepreviousaccountingperiod. Market Risk ThefairvalueorfuturecashflowsofafinancialinstrumentorotherinvestmentheldbytheCompanymayfluctuatebecauseofchangesin marketprices.Thismarketriskcomprisesthreeelements–currencyrisk,interestrateriskandotherpricerisk.TheBoardreviewsand agreespoliciesformanagingtheserisksandtheCompany’sinvestmentmanagersbothassesstheexposuretomarketriskwhenmaking individualinvestmentdecisionsandmonitortheoveralllevelofmarketriskacrosstheinvestmentportfolioonanongoingbasis.  DetailsoftheCompany’sinvestmentportfolioareshowninnote9. Financial Report The Monks Investment Trust PLC 59 19 Financial Instruments (continued) Currency Risk CertainoftheCompany’sassets,liabilitiesandincomearedenominatedincurrenciesotherthansterling(theCompany’sfunctionalcurrency andthatinwhichitreportsitsresults).Consequently,movementsinexchangeratesmayaffectthesterlingvalueofthoseitems.  TheinvestmentmanagersmonitortheCompany’sexposuretoforeigncurrenciesandreporttotheBoardonaregularbasis.TheInvestment ManagerassessestherisktotheCompanyoftheforeigncurrencyexposurebyconsideringtheeffectontheCompany’snetassetvalue andincomeofamovementintheratesofexchangetowhichtheCompany’sassets,liabilities,incomeandexpensesareexposed. However,thecurrencyinwhichacompany’ssharepriceisquotedisnotnecessarilytheoneinwhichitearnsitsprofits.  Themovementinexchangeratesonoverseasearningsmayhaveamoresignificantimpactuponacompany’svaluationthanasimple translationofthecurrencyinwhichthesharepriceofthecompanyisquoted.  ForeigncurrencyborrowingscanlimittheCompany’sexposuretoanticipatedfuturechangesinexchangerateswhichmightotherwise adverselyaffectthevalueoftheportfolioofinvestments.  Exposuretocurrencyriskthroughassetallocation,whichiscalculatedbyreferencetothecurrencyinwhichtheassetorliabilityisquoted, isshownbelow. At 30 April 2022 Investments £’000 Cash and cash equivalents £’000 Loans, loan notes and debentures £’000 Other debtors and creditors * £’000 Net exposure £’000 USdollar 1,756,724 – – 162 1,756,886 Euro 233,942 – – 1,845 235,787 Japaneseyen 121,500 – – 574 122,074 Otheroverseascurrencies 344,848 4,602 – 4,012 353,462 Totalexposuretocurrencyrisk 2,457,014 4,602 – 6,593 2,468,209 Sterling 205,001 31,277 (214,826) (10,497) 10,955 2,662,015 35,879 (214,826) (3,904) 2,479,164 Includesnon-monetaryassetsof£155,000. At 30 April 2021 Investments £’000 Cash and cash equivalents £’000 Loans, loan notes and debentures £’000 Other debtors and creditors * £’000 Net exposure £’000 USdollar 2,118,184 438 – 122 2,118,744 Euro 203,677 – – 1,032 204,709 Japaneseyen 206,572 – – 699 207,271 Otheroverseascurrencies 452,759 4,686 – 957 458,402 Totalexposuretocurrencyrisk 2,981,192 5,124 – 2,810 2,989,126 Sterling 256,938 103,599 (139,788) (4,895) 215,854 3,238,130 108,723 (139,788) (2,085) 3,204,980 Includesnon-monetaryassetsof£76,000. Currency Risk Sensitivity At30April2022,ifsterlinghadstrengthenedby5%inrelationtoallcurrencies,withallothervariablesheldconstant,totalnetassetsand totalreturnonordinaryactivitieswouldhavedecreasedbytheamountsshownbelow.A5%weakeningofsterlingagainstallcurrencies, withallothervariablesheldconstant,wouldhavehadanequalbutoppositeeffectontheFinancialStatementamounts.Theanalysisis performedonthesamebasisfor2021. 2022 £’000 2021 £’000 USdollar 87,844 105,937 Euro 11,789 10,235 Japaneseyen 6,104 10,364 Otheroverseascurrencies 17,673 22,920 123,410 149,456 Financial Report 60AnnualReport2022 19 Financial Instruments (continued) Interest Rate Risk  Interestratemovementsmayaffectdirectly: — thefairvalueofanyinvestmentsinfixedinterestratesecurities; — thelevelofincomereceivableoncashdeposits; — thefairvalueoftheCompany’sfixed-rateborrowings;and — theinterestpayableonanyvariablerateborrowingswhichtheCompanymaytakeout. InterestratemovementsmayalsoimpactuponthemarketvalueoftheCompany’sinvestments.Theeffectofinterestratemovementsupon theearningsofaninvesteecompanymayhaveasignificantimpactuponthevaluationofthatcompany’sequity.Thepossibleeffectsonfair valueandcashflowsthatcouldariseasaresultofchangesininterestratesaretakenintoaccountwhenmakinginvestmentdecisionsand whenenteringborrowingagreements.TheBoardreviewsonaregularbasistheamountofinvestmentsincashandfixedincomesecurities andtheincomereceivableoncashdeposits,floatingratenotesandothersimilarinvestments.TheCompanyfinancespartofitsactivities throughborrowingsatapprovedlevels.Theamountofsuchborrowingsandtheapprovedlevelsaremonitoredandreviewedregularlyby theBoard.  Movementsininterestrates,totheextentthattheyaffectthefairvalueoftheCompany’sfixedrateborrowings,mayalsoaffecttheamount bywhichtheCompany’ssharepriceisatadiscountorapremiumtothenetassetvalue(withborrowingsatfairvalue)assumingthatthe Company’ssharepriceisunaffectedbymovementsininterestrates. Financial Assets TheCompany’sinterestrateriskexposureonitsfinancialassetsat30April2022amountedto£35,879,000(2021–£108,723,000), comprisingitscashandshorttermdeposits.  Thecashdepositsgenerallycomprisecallorshorttermmoneymarketdepositsoflessthanonemonthwhicharerepayableondemand. Thebenchmarkratewhichdeterminestheinterestpaymentsreceivedoncashbalancesisthebankbaserate. Financial Liabilities  TheinterestrateriskprofileoftheCompany’sbankloans,loannotesanddebentures(atamortisedcost)andthematurityprofileofthe undiscountedfuturecashflowsinrespectoftheCompany’scontractualfinancialliabilitiesat30Aprilareshownbelow. Interest Rate Risk Profile 2022 £’000 2021 £’000 Floatingrate–sterling 75,000 – Fixedrate–sterling 139,826 139,788 214,826 139,788 Maturity Profile 2022 Within 1 year £’000 2022 Between 1 and 5 years £’000 2022 More than 5 years £’000 2021 Within 1 year £’000 2021 Between 1 and 5 years £’000 2021 More than 5 years £’000 Repaymentofloansanddebentures 115,000 – 100,000 – 40,000 100,000 Interestonloansanddebentures 5,327 7,296 43,788 4,374 9,846 45,612 120,327 7,296 143,788 4,374 49,846 145,612 Interest Rate Risk Sensitivity Anincreaseof100basispointsinbondyieldsappliedtotheCompany’sfinancialliabilitiesasat30April2022wouldhavedecreasedtotal netassetsandtotalreturnonordinaryactivitiesby£138,000(2021–nil)andwouldhaveincreasedthenetassetvaluepershare(with borrowingsatfairvalue)by7.8p(2021–9.8p).Adecreaseof100basispointswouldhaveincreasedtotalnetassetsandtotalreturnon ordinaryactivitiesby£80,000(2021–nil)andwouldhavedecreasednetassetvaluepershare(withborrowingsatfairvalue)by7.9p (2021–9.8p). Other Price Risk ChangesinmarketpricesotherthanthosearisingfrominterestrateriskorcurrencyriskmayalsoaffectthevalueoftheCompany’snet assets.TheBoardmanagesthemarketpricerisksinherentintheinvestmentportfoliobyensuringfullandtimelyaccesstorelevant informationfromtheInvestmentManager.TheBoardmeetsregularlyandateachmeetingreviewsinvestmentperformance,theinvestment portfolioandtherationaleforthecurrentinvestmentpositioningtoensureconsistencywiththeCompany’sobjectiveandinvestmentpolicy. Financial Report The Monks Investment Trust PLC 61 19 Financial Instruments (continued) Other Price Risk Sensitivity AfulllistoftheCompany’sinvestmentsisshownonpages12to14.Inaddition,variousanalysesoftheportfoliobygrowthcategory, thematicriskcategory,geographyandbroadindustrialorcommercialsectorarecontainedintheStrategicReport.105.1%ofthe Company’snetassetsareinvestedinquotedequities(2021–98.9%).A10%increaseinquotedequityvaluationsat30April2022would haveincreasedtotalassetsandtotalreturnonordinaryactivitiesby£260,541,000(2021–£316,914,000).Adecreaseof10%wouldhave hadanequalbutoppositeeffect. 2.3%(2021–2.2%)oftheCompany’snetassetsareinvestedinunlistedsecurities.Thefairvaluationoftheunlistedinvestmentsis influencedbytheestimates,assumptionsandjudgementsmadeinthefairvaluationprocess(see1(c)onpages48and49). Asensitivityanalysisisprovidedbelowwhichrecognisesthatthevaluationmethodologiesemployedinvolvesubjectivityintheirsignificant unobservableinputsandillustratesthesensitivityofthevaluationstotheseinputs.Theinputshavebeenflexedby+/-10%withthe exceptionoftheRecentTransactionPricevaluationapproachasitdoesnotinvolvesignificantsubjectivity. As at 30 April 2022 Positive impact Negative impact Valuation Technique Fair value of investments £’000 Key variable input Variable input sensitivity (%) £’000 † % of net assets £’000 † % of net assets RecentTransaction 19,613 n/a n/a n/a n/a n/a n/a Marketapproach usingcomparable tradedmultiples 27,327 Applicationofvaluationbasis Probabilityofestimationofliquidation events # Selectionofcomparablecompanies Estimatedsustainableearnings ±10 2,589 0.1 (2,535) (0.1) Applicationofilliquiditydiscount ±10 98 0.0 (94) 0.0 Comparable Company performance 4,711 Applicationofvaluationbasis Probabilityofestimationofliquidation events # Selectionofappropriatebenchmarks ±10 471 0.0 (471) 0.0 SumoftheParts 4,958 Applicationofvaluationbasis Selectionofcomparablecompanies Estimatedsustainableearnings ±10 543 0.0 (543) 0.0 Total 56,609 3,701 0.1 (3,643) (0.1) As at 30 April 2021 Positive impact Negative impact Valuation Technique Fair value of investments £’000 Key variable input encompassing possible fluctuations due to Covid-19 Variable input sensitivity (%) £’000 † % of net assets £’000 † % of net assets RecentTransaction 21,171 n/a n/a n/a n/a n/a n/a Marketapproach usingcomparable tradedmultiples 29,779 Applicationofvaluationbasis Probabilityofestimationofliquidation events # Selectionofcomparablecompanies Estimatedsustainableearnings ±10 2,255 0.1 (2,255) (0.1) Applicationofilliquiditydiscount ±10 449 0.0 (448) 0.0 SumoftheParts 6,065 Applicationofvaluationbasis Selectionofcomparablecompanies Estimatedsustainableearnings ±10 609 0.0 (609) 0.0 Priceofexpected transaction 11,979 Applicationofvaluationbasis Probabilityofestimationofliquidation events # Selectionofcomparablecompanies Estimatedsustainableearnings ± 10 1,198 0.0 (1,198) 0.0 Total 68,994 4,511 0.1 (4,510) (0.1) † Impactonnetassetsandnetreturnaftertaxation. # Aliquidationeventistypicallyacompanysaleoraninitialpublicoffering(‘IPO’).InassessingfairvaluetheCompanyhasdeterminedthe likelyenterprisevalueattributedtothedifferentinvestmentclassesheldbytheCompany. Financial Report 62AnnualReport2022 19 Financial Instruments (continued) Other Price Risk Sensitivity (continued) * Key Variable Inputs Thevariableinputsapplicabletoeachbroadcategoryofvaluationbasiswillvarydependentontheparticularcircumstancesofeachunlisted companyvaluation.Anexplanationofeachofthekeyvariableinputsisprovidedbelowandincludesanindicationoftherangeinvaluefor eachinput,whererelevant.Theassumptionsmadeintheproductionoftheinputsaredescribedinnote1(c)onpages48and49. Selection of Appropriate Benchmarks Theselectionofappropriatebenchmarksisassessedindividuallyforeachinvestment.Theindustryandgeographyofeachcompanyarekey inputstothebenchmarkselection,witheitheroneortwokeyindicesorbenchmarksbeingusedforcomparison. Selection of Comparable Companies Theselectionofcomparablecompaniesisassessedindividuallyforeachinvestmentatthepointofinvestment,andtherelevanceofthe comparablecompaniesiscontinuallyevaluatedateachvaluation.Thekeycriteriausedinselectingappropriatecomparablecompaniesare theindustrysectorinwhichtheyoperate,thegeographyofthecompany’soperations,therespectiverevenueandearningsgrowthrates andtheoperatingmargins.Typically,between4and10comparablecompanieswillbeselectedforeachinvestment,dependingonhow manyrelevantcomparablecompaniesareidentified.Theresultantrevenueorearningsmultiplesderivedwillvarydependingonthe companiesselectedandtheindustriestheyoperateinandcanvaryintherangeof1xto10x. Probability Estimation of Liquidation Events Theprobabilityofaliquidationeventsuchasacompanysale,oralternativelyaninitialpublicoffering(‘IPO’),isakeyvariableinputinthe Transaction-basedandMultiples-basedvaluationtechniques.TheprobabilityofanIPOversusacompanysaleistypicallyestimatedfromthe outsettobe50:50iftherehasbeennoindicationbythecompanyofpursuingeitheroftheseroutes.Ifthecompanyhasindicatedan intentiontoIPO,theprobabilityisincreasedaccordinglyto75%andifanIPOhasbecomeacertaintytheprobabilityisincreasedto100%. Likewise,inascenariowhereacompanyispursuingatradesaletheweightingswillbeadjustedaccordinglyinfavourofasalescenario,or inasituationwhereacompanyisunderperformingexpectationssignificantlyandthereforedeemedveryunlikelytopursueanIPO. Application of Valuation Basis Eachinvestmentisassessedindependently,andthevaluationbasisappliedwillvarydependingonthecircumstancesofeachinvestment. Whenaninvestmentispre-revenue,thefocusofthevaluationwillbeonassessingtherecenttransactionandtheachievementofkey milestonessinceinvestment.Adjustmentsmayalsobemadedependingontheperformanceofcomparablebenchmarksandcompanies. ForthoseinvestmentswhereatradingMultiplesapproachcanbetaken,themethodologywillfactorinrevenue,earningsornetassetsas appropriatefortheinvestment,andwhereasuitablecorrelationcanbeidentifiedwiththecomparablecompaniesthenaregressionanalysis willbeperformed.Discountedcashflowswillalsobeconsideredwhereappropriateforecastsareavailable. Estimated Sustainable Earnings Theselectionofsustainablerevenueorearningswilldependonwhetherthecompanyissustainablyprofitableornot,andwhereitisnot thensustainablerevenueswillbeusedinthevaluation.Thevaluationapproachwilltypicallyassesscompaniesbasedonthelasttwelve monthsofrevenueorearnings,astheyarethemostrecentavailableandthereforeviewedasthemostreliable.Whereacompanyhas reliablyforecastedearningspreviouslyorthereisachangeincircumstanceatthebusinesswhichwillimpactearningsgoingforward,then forwardestimatedrevenueorearningsmaybeusedinstead. Application of Liquidity Discount Theapplicationofaliquiditydiscountwillbeappliedeitherthroughthecalibrationofavaluationagainstthemostrecenttransaction,orby applicationofaspecificdiscount.Thediscountappliedwhereacalibrationisnotappropriateistypically10%,reflectingthatthemajorityof theinvestmentsheldaresubstantialcompanieswithsomesecondarymarketactivity. Liquidity Risk ThisistheriskthattheCompanywillencounterdifficultyinmeetingobligationsassociatedwithfinancialliabilities.Liquidityriskisnot significantasthemajorityoftheCompany’sassetsareinvestmentsinlistedsecuritiesthatarereadilyrealisable.TheBoardalsosets parametersforthedegreetowhichtheCompany’snetassetsareinvestedinlistedequities.TheCompanyhasthepowertotakeout borrowings,whichgiveitaccesstoadditionalfundingwhenrequired.TheCompany’scurrentliabilitiesandborrowingfacilitiesaredetailed innotes11and12andthematurityprofileofitsborrowingsissetoutonpage60. Financial Report The Monks Investment Trust PLC 63 19 Financial Instruments (continued) Credit Risk ThisistheriskthatafailureofacounterpartytoatransactiontodischargeitsobligationsunderthattransactioncouldresultintheCompany sufferingaloss.Thisriskismanagedasfollows: — wheretheinvestmentmanagersmakeaninvestmentinabondorothersecuritywithcreditrisk,thatcreditriskisassessedandthen comparedtotheprospectiveinvestmentreturnofthesecurityinquestion; — theDepositaryisliableforthelossoffinancialinstrumentsheldincustody.TheDepositarywillensurethatanydelegatesegregatesthe assetsoftheCompany.TheDepositaryhasdelegatedthecustodyfunctiontoTheBankofNewYorkMellon(International)Limited. BankruptcyorinsolvencyofthecustodianmaycausetheCompany’srightswithrespecttosecuritiesheldbythecustodiantobe delayed.TheManagersmonitortheCompany’sriskbyreviewingtheDepositary’sinternalcontrolreportsandreportingtheirfindingsto theBoard; — investmenttransactionsarecarriedoutwithalargenumberofbrokerswhosecreditworthinessisreviewedbytheManagers. TransactionsareordinarilydoneonadeliveryversuspaymentbasiswherebytheCompany’scustodianbankensuresthatthe counterpartytoanytransactionenteredintobytheCompanyhasdeliveredonitsobligationsbeforeanytransferofcashorsecurities awayfromtheCompanyiscompleted;and — cashisonlyheldatbanksthathavebeenidentifiedbytheManagersasreputableandofhighcreditquality. Credit Risk Exposure TheamountthatbestrepresentstheCompany’smaximumexposuretodirectcreditriskat30Aprilwas: 2022 £’000 2021 £’000 Cashandcashequivalents 35,879 108,723 Debtors 8,072 3,936 43,951 112,659 NoneoftheCompany’sfinancialassetsarepastdueorimpaired. Fair Value of Financial Assets and Financial Liabilities TheDirectorsareoftheopinionthatthereisnodifferencebetweentheamountsatwhichthefinancialassetsandliabilitiesoftheCompany arecarriedintheBalanceSheetandtheirfairvalues,withtheexceptionoflongtermborrowings.ThefairvaluesoftheCompany’s borrowingsareshownbelow.Thefairvalueofthe6 3 / 8%debenturestock2023iscalculatedusingacomparabledebtapproachand/or brokerquoteswhereavailable(2021–pricesourceBarclaysBXEC).Usingthe2021pricesourceasat30April2022wouldhavereduced thefairvalueofthedebentureby£189,000andincreasedthefairvalueNAVby0.1ppershare.Thefairvaluesoftheloannotesare calculatedusingacomparabledebtapproach,byreferencetoabasketofcorporatedebt(2021–calculatedbyreferencetoUKGiltswith comparablematurities,applyingafairvaluespreadusingnon-Giltbondindicesofsimilarduration).Thisadjustmenttomethodologyisnot consideredtodiffersignificantlyfromthepriorapproach. 2022 Par value £’000 2022 Book value £’000 2022 Fair value £’000 2021 Par value £’000 2021 Book value £’000 2021 Fair value £’000 Bankloansduewithinoneyear 75,000 75,000 75,000 – – – 6 3 / 8 % debenturestock2023 40,000 39,973 41,001 40,000 39,940 43,207 SeriesANotes1.86%2054 60,000 59,901 43,700 60,000 59,898 54,302 SeriesBNotes1.77%2045 40,000 39,952 30,607 40,000 39,950 36,015 215,000 214,826 190,308 140,000 139,788 133,524 Financial Report 64AnnualReport2022 20 Capital Management ThecapitaloftheCompanyisitssharecapitalandreservesassetoutinnote14togetherwithitsborrowings(seenotes11and12). TheobjectiveoftheCompanyistoinvestgloballytoachievecapitalgrowth,whichtakespriorityoverincomeanddividends. TheCompany’sinvestmentpolicyissetoutonpage18.InpursuitoftheCompany’sobjective,theBoardhasaresponsibilityforensuring theCompany’sabilitytocontinueasagoingconcernanddetailsoftherelatedrisksandhowtheyaremanagedaresetoutonpages19,20 and30. TheCompany hastheabilitytoissueandbuybackitsshares(seepage25)andanychangestothesharecapitalduringtheyear are setoutinnote 13 . TheCompanydoesnothaveanyexternallyimposedcapitalrequirementsotherthanthecovenantsonitsloans,loannotesanddebentures whicharedetailedinnotes11and12. 21 Subsequent Events Subsequenttothe30April2022yearend,thenetassetvaluepersharewithdebtatfairvaluefellby11.1%to977.8p(asat16June2022) asmarketsreactedtomacroeconomicandgeopoliticalconcerns. Financial Report The Monks Investment Trust PLC 65 Noticeisherebygiventhattheninety-thirdAnnualGeneral MeetingofTheMonksInvestmentTrustPLCwillbeheldatthe InstituteofDirectors,116PallMall,LondonSW1Y5EDon Tuesday,6September2022,at11.00amforthefollowing purposes: Ordinary Business Toconsiderand,ifthoughtfit,passthefollowingresolutionsas ordinaryresolutions: 1. ToreceiveandadopttheFinancialStatementsofthe Companyfortheyearended30April2022withtheReports oftheDirectorsandoftheIndependentAuditorthereon. 2. ToapprovetheDirectors’AnnualReportonRemunerationfor theyearended30April2022. 3. Todeclareafinaldividendof2.35pperordinaryshare. 4. Tore-electMrKSSternbergasaDirector. 5. Tore-electMrJJTigueasaDirector. 6. Tore-electMsBJRichardsasaDirector. 7. Tore-electProfessorSirNigelShadboltasaDirector. 8. Tore-electMsCMBoyleasaDirector. 9. ToreappointErnst&YoungLLPasIndependentAuditorof theCompanytoholdofficeuntiltheconclusionofthenext AnnualGeneralMeetingatwhichtheFinancialStatements arelaidbeforetheCompany. 10.ToauthorisetheDirectorstodeterminetheremunerationof theIndependentAuditor. 11.That,insubstitutionforanyexistingauthoritybutwithout prejudicetotheexerciseofanysuchauthoritypriortothedate hereof,theDirectorsoftheCompanybeandtheyarehereby generallyandunconditionallyauthorisedinaccordancewith section551oftheCompaniesAct2006(the‘Act’)toexercise allthepowersoftheCompanytoallotsharesintheCompany andtograntrightstosubscribeforortoconvertanysecurity intosharesintheCompany(‘Securities’)providedthatsuch authorityshallbelimitedtotheallotmentofsharesandthe grantofrightsinrespectofshareswithanaggregatenominal valueofupto£1,124,037.90(representing10%ofthe Company’stotalissuedsharecapitalasat16June2022), Piccadilly Pall Mall Haymarket Regent Street St. James’s Street Piccadilly Circus The Mall Charing Cross Whitehall Strand King St St James Sq Pall Mall East A400 INSTITUTE OF DIRECTORS Trafalgar Square SubjecttoGovernmentmeasuresrestrictingpublicgatherings,and relatedpublichealthguidanceassociatedwiththeCovid-19 pandemic,theAnnualGeneralMeetingoftheCompanywillbeheld attheInstituteofDirectors,116PallMall,LondonSW1Y5EDon Tuesday,6September2022,at11.00am.Giventheongoing uncertainty,theBoardwillcontinuetomonitordevelopmentsandmay beforcedtoprohibitshareholdersfromattendinginperson.The Boardthereforeencouragesallshareholderstoexercisetheirvotesat theAnnualGeneralMeetingbycompletingandsubmittingaformof proxy;andtomonitortheCompany’swebsitewhereanyupdateswill beposted. Ifyouhaveanyqueriesastohowtovoteorhowtoattendthe meeting,pleasecalluson08009172112. BaillieGiffordmayrecordyourcall. suchauthoritytoexpireattheconclusionofthenextAnnual GeneralMeetingoftheCompanyafterthepassingofthis resolutionorontheexpiryof15monthsfromthepassingof thisresolution,whicheveristheearlier,unlesspreviously revoked,variedorextendedbytheCompanyinageneral meeting,savethattheCompanymayatanytimepriortothe expiryofthisauthoritymakeanofferorenterintoan agreementwhichwouldormightrequireSecuritiestobe allottedorgrantedaftertheexpiryofsuchauthorityandthe DirectorsshallbeentitledtoallotorgrantSecuritiesin pursuanceofsuchanofferoragreementasifsuchauthority hadnotexpired. Toconsiderand,ifthoughtfit,topassresolutions12,13and14 asspecialresolutions: 12.That,subjecttothepassingofresolution11above,andin substitutionforanyexistingpowerbutwithoutprejudiceto theexerciseofanysuchpowerpriortothedatehereof,the DirectorsoftheCompanybeandtheyareherebygenerally empowered,pursuanttosections570and573ofthe CompaniesAct2006(the‘Act’)toallotequitysecurities (withinthemeaningofsection560(1)oftheAct)forcash eitherpursuanttotheauthoritygivenbyresolution11above orbywayofthesaleoftreasuryshareswhollyforcashasif section561(1)oftheActdidnotapplytoanysuchallotment orsale,providedthatthispower: (a)expiresattheconclusionofthenextAnnualGeneral MeetingoftheCompanyafterthepassingofthisresolution orontheexpiryof15monthsfromthepassingofthis resolution,whicheveristheearlier,savethattheCompany may,beforesuchexpiry,makeanofferoragreement whichwouldormightrequireequitysecuritiestobe allottedaftersuchexpiryandtheDirectorsmayallotequity securitiesinpursuanceofanysuchofferoragreementasif thepowerconferredherebyhadnotexpired;and (b)shallbelimitedtotheallotmentofequitysecuritiesor thesaleoftreasurysharesuptoanaggregatenominal valueof£1,124,037.90,beingapproximately10%ofthe nominalvalueoftheissuedsharecapitaloftheCompany asat16June2022. Notice of Annual General Meeting Shareholder Information 66AnnualReport2022 13.That,insubstitutionforanyexistingauthority,butwithout prejudicetotheexerciseofanysuchauthoritypriortothe datehereof,theCompanybeandisherebygenerallyand unconditionallyauthorised,pursuanttoandinaccordance withsection701oftheCompaniesAct2006(the‘Act’),to makemarketpurchases(withinthemeaningofsection693(4) oftheAct)offullypaidordinarysharesof5peachinthe capitaloftheCompany(‘Shares’),(eitherforretentionas treasurysharesforfuturereissue,resale,transferorfor cancellation)providedthat: (a)themaximumaggregatenumberofShareshereby authorisedtobepurchasedis33,698,657,or,ifless,the numberrepresentingapproximately14.99%oftheissued ordinarysharecapitaloftheCompanyasatthedateof thepassingofthisresolution; (b)theminimumprice(exclusiveofexpenses)whichmaybe paidforeachShareis5p; (c)themaximumprice(exclusiveofexpenses)whichmay bepaidforaShareshallbenotmorethanthehigherof: (i)5percentabovetheaverageclosingpriceonthe LondonStockExchangeofaShareoverthefivebusiness daysimmediatelyprecedingthedateofpurchase;and (ii)thehigherofthepriceofthelastindependenttradeof, andthehighestcurrentindependentbidfor,aShareon theLondonStockExchange;and (d)unlesspreviouslyvaried,revokedorrenewedbythe Companyinageneralmeeting,theauthorityhereby conferredshallexpireattheconclusionoftheAnnual GeneralMeetingoftheCompanytobeheldinrespectof theyearending30April2023,savethattheCompany may,priortosuchexpiry,enterintoacontractto purchaseSharesundersuchauthoritywhichwillormay beexecutedwhollyorpartlyaftertheexpirationofsuch authorityandmaymakeapurchaseofSharespursuant toanysuchcontract. 14.ThattheArticlesofAssociationproducedtothemeetingand signedbytheChairmanofthemeetingforthepurposesof identificationbeapprovedandadoptedastheArticlesof AssociationoftheCompanyinsubstitutionfor,andtothe exclusionof,theexistingArticlesofAssociationwitheffect fromtheconclusionofthemeeting. ByorderoftheBoard BaillieGifford&CoLimited CompanySecretary 6July2022 Notes 1. Asamemberyouareentitledtoappointaproxyorproxiesto exercisealloranyofyourrightstoattend,speakandvoteat theAGM.AproxyneednotbeamemberoftheCompanybut mustattendtheAGMtorepresentyou.Youmayappoint morethanoneproxyprovidedeachproxyisappointedto exerciserightsattachedtodifferentshares.Youcanonly appointaproxyusingtheproceduresetoutinthesenotes andthenotestotheproxyform.Youmaynotuseany electronicaddressprovidedeitherinthisnoticeoranyrelated documents(includingtheFinancialStatementsandproxy form)tocommunicatewiththeCompanyforanypurpose otherthanthoseexpresslystated. 2. Tobevalidanyproxyformorotherinstrumentappointinga proxy,togetherwithanypowerofattorneyorotherauthority underwhichitissignedoracertifiedcopythereof,mustbe receivedbypostor(duringnormalbusinesshoursonly)by handattheRegistrarsoftheCompanyatComputershare InvestorServicesPLC,ThePavilions,BridgwaterRoad, Bristol,BS996ZYoreproxyappointment.comnolaterthan twodays(excludingnon-workingdays)beforethetimeofthe meetingoranyadjournedmeeting. 3. CRESTmemberswhowishtoappointaproxyorproxies throughtheCRESTelectronicproxyappointmentservicemay dosobyusingtheproceduresdescribedintheCRESTManual and/orbyloggingontothewebsiteeuroclear.com/CREST. CRESTpersonalmembersorotherCRESTsponsored members,andthoseCRESTmemberswhohaveappointeda votingserviceprovider(s),shouldrefertotheirCRESTsponsor orvotingserviceprovider(s),whowillbeabletotakethe appropriateactionontheirbehalf. 4. Inorderforaproxyappointmentorinstructionmadeusing the CRESTservicetobevalid,theappropriateCREST message(a‘CRESTProxyInstruction’)mustbeproperly authenticatedinaccordancewithEuroclearUK&Ireland Limited’sspecifications,andmustcontaintheinformation requiredforsuchinstruction,asdescribedintheCREST Manual.Themessage,regardlessofwhetheritconstitutesthe appointmentofaproxyorisanamendmenttotheinstruction giventoapreviouslyappointedproxymust,inordertobevalid, betransmittedsoastobereceivedbytheCompany’sregistrar (ID3RA50)nolaterthantwodays(excludingnon-workingdays) beforethetimeofthemeetingoranyadjournment.Forthis purpose,thetimeofreceiptwillbetakentobethetime(as determinedbythetimestampappliedtothemessagebythe CRESTApplicationHost)fromwhichtheCompany’sregistrar isabletoretrievethemessagebyenquirytoCRESTinthe mannerprescribedbyCREST.Afterthistimeanychangeof instructionstoproxiesappointedthroughCRESTshouldbe communicatedtotheappointeethroughothermeans. Shareholder Information The Monks Investment Trust PLC 67 5. CRESTmembersand,whereapplicable,theirCREST sponsors,orvotingserviceprovidersshouldnotethat EuroclearUK&IrelandLimiteddoesnotmakeavailable specialproceduresinCRESTforanyparticularmessage. Normalsystemtimingsandlimitationswill,therefore,apply inrelationtotheinputofCRESTProxyInstructions.Itisthe responsibilityoftheCRESTmemberconcernedtotake(or, iftheCRESTmemberisaCRESTpersonalmember,or sponsoredmember,orhasappointedavotingservice provider(s),toprocurethathis/herCRESTsponsororvoting serviceprovider(s)take(s)suchactionasshallbenecessaryto ensurethatamessageistransmittedbymeansoftheCREST systembyanyparticulartime.Inthisconnection,CREST membersand,whereapplicable,theirCRESTsponsorsor votingserviceprovidersarereferred,inparticular,tothose sectionsoftheCRESTManualconcerningpracticallimitations oftheCRESTsystemandtimings. 6. TheCompanymaytreatasinvalidaCRESTProxyInstruction inthecircumstancessetoutinRegulation35(5)(a)ofthe UncertificatedSecuritiesRegulations2001. 7. Thereturnofacompletedproxyformorotherinstrumentof proxywillnotpreventyouattendingtheAGMandvotingin personifyouwish. 8. PursuanttoRegulation41oftheUncertificatedSecurities Regulations2001andsection311oftheCompaniesAct2006 theCompanyspecifiesthattobeentitledtoattendandvote attheAnnualGeneralMeeting(andforthepurposeofthe determinationbytheCompanyofthevotestheymaycast), shareholdersmustberegisteredintheRegisterofMembers oftheCompanynolaterthanthecloseofbusinesstwodays (excludingnon-workingdays)priortothecommencementof theAGMoranyadjournedmeeting.ChangestotheRegister ofMembersaftertherelevantdeadlineshallbedisregardedin determiningtherightsofanypersontoattendandvoteatthe meeting. 9. Anypersontowhomthisnoticeissentwhoisaperson nominatedundersection146oftheCompaniesAct2006to enjoyinformationrights(a‘NominatedPerson’)may,underan agreementbetweenhim/herandtheshareholderbywhom he/shewasnominated,havearighttobeappointed(orto havesomeoneelseappointed)asaproxyfortheAnnual GeneralMeeting.IfaNominatedPersonhasnosuchproxy appointmentrightordoesnotwishtoexerciseit,he/shemay, underanysuchagreement,havearighttogiveinstructions totheshareholderastotheexerciseofvotingrights. 10.Thestatementoftherightsofshareholdersinrelationtothe appointmentofproxiesinnotes1and2abovedoesnotapply toNominatedPersons.Therightsdescribedinthosenotes canonlybeexercisedbyshareholdersoftheCompany. 11.Undersection338oftheCompaniesAct2006,members meetingthequalificationcriteriasetoutinnote14belowmay, subjecttocertainconditions,requiretheCompanytocirculate tomembersnoticeofaresolutionwhichmayproperlybe movedandisintendedtobemovedatthatmeeting.The conditionsarethat:(a)theresolutionmustnot,ifpassed, beineffective(whetherbyreasonofinconsistencywithany enactmentortheCompany’sconstitutionorotherwise); (b)theresolutionmustnotbedefamatoryofanyperson, frivolousorvexatious;and(c)therequest:(i)maybeinhard copyformorinelectronicform;(ii)mustidentifytheresolution ofwhichnoticeistobegivenbyeithersettingoutthe resolutioninfullor,ifsupportingaresolutionsentbyanother member,clearlyidentifyingtheresolutionwhichisbeing supported;(iii)mustbeauthenticatedbythepersonor personsmakingit;and(iv)mustbereceivedbytheCompany notlaterthanMonday25July2022. 12.Undersection338AoftheCompaniesAct2006,members meetingthequalificationcriteriasetoutatnote14belowmay requiretheCompanytoincludeinthebusinesstobedealt withattheAnnualGeneralMeetingamatter(otherthana proposedresolution)whichmayproperlybeincludedinthe business(amatterofbusiness).Therequestmusthavebeen receivedbytheCompanynotlaterthanMonday25July 2022.Theconditionsarethatthematterofbusinessmust notbedefamatoryofanyperson,frivolousorvexatious.The requestmustidentifythematterofbusinessbyeithersetting itoutinfullor,ifsupportingastatementsentbyanother member,clearlyidentifythematterofbusinesswhichisbeing supported.Therequestmustbeaccompaniedbyastatement settingoutthegroundsfortherequest.Membersseekingto dothisshouldwritetotheCompanyprovidingtheirfullname andaddress. 13.Undersection527oftheCompaniesAct2006,members meetingthequalificationcriteriasetoutatnote14belowmay requiretheCompanytopublish,onitswebsite,(without payment)astatement(whichisalsopassedtotheAuditor) settingoutanymatterrelatingtotheauditoftheCompany’s FinancialStatements,includingtheAuditor’sReportandthe conductoftheaudit.Suchrequestsmustbemadeinwriting andmuststateyourfullnameandaddress. 14.Inordertobeabletoexercisethemembers’rightsinnotes 11to13,therelevantrequestmustbemadeby:(a)members representingatleast5%ofthetotalvotingrightsofallthe memberswhohavearighttovoteontheresolutiontowhich therequestsrelate;or(b)atleast100memberswhohavea righttovoteontheresolutiontowhichtherequestsrelate andholdsharesintheCompanyonwhichtherehasbeen paidupanaveragesum,permember,ofatleast£100.Such requestsshouldbesenttotheCompanyatCaltonSquare, 1GreensideRow,Edinburgh,EH13AN.Electronicrequests permittedundersection338(seenote11)shouldbesentto trustenquiries@bailliegifford.com. Shareholder Information 68AnnualReport2022 15.InformationregardingtheAnnualGeneralMeeting,including informationrequiredbysection311AoftheCompaniesAct 2006,isavailablefromtheCompany’spageoftheManagers’ websiteatmonksinvestmenttrust.co.uk. 16.Membershavetherighttoaskquestionsatthemeetingin accordancewithsection319AoftheCompaniesAct2006. 17.Anycorporationwhichisamembercanappointoneormore corporaterepresentativeswhomayexerciseonitsbehalfall ofitspowersasamemberprovidedthattheydonotdosoin relationtothesameshares. 18.Asat16June2022(beingthelastpracticabledatepriorto thepublicationofthisnotice)theCompany’sissuedshare capitalconsistedof224,807,587ordinaryshares,carrying onevoteeach.Therefore,thetotalvotingrightsinthe Companyasat16June2022were224,807,587votes. Summary of the Principal Amendments to the Company’s Articles of Association Setoutbelowisasummaryoftheprincipalamendmentswhich willbemadetotheCompany’sExistingArticlesthroughthe adoptionoftheNewArticlesifResolution14tobeproposedat theAGMisapprovedbyshareholders. Thissummaryisintendedonlytohighlighttheprincipalamendments whicharelikelytobeofinteresttoshareholders.Itisnotintended tobecomprehensiveandcannotbereliedupontoidentify amendmentsorissueswhichmaybeofinteresttoallshareholders. Thissummaryisnotasubstituteforreviewingthefulltermsofthe NewArticleswhichwillbeavailableforinspectionattheofficesof DicksonMintoW.S.,Level13,BroadgateTower,20Primrose Street,LondonEC2A2EWbetweenthehoursof9.00amand 5.00pm(Saturdays,Sundaysandpublicholidaysexcepted),and ontheCompany’swebsite,monksinvestmenttrust.co.uk,from thedateoftheAGMNoticeuntilthecloseoftheAGM,andwill alsobeavailableforinspectionatthevenueoftheAGMfrom 15minutesbeforeandduringtheAGM. Hybrid/Virtual-Only Shareholder Meetings TheNewArticlespermittheCompanytoholdshareholder meetingsonavirtualbasis,wherebyshareholdersarenot requiredtoattendthemeetinginpersonataphysicallocation butmayinsteadattendandparticipateusingelectronicmeans. Ashareholdermeetingmaybevirtual-onlyifattendeesparticipate onlybywayofelectronicmeans,ormaybeheldonahybridbasis wherebysomeattendeesattendinpersonataphysicallocation andothersattendremotelyusingelectronicmeans.Thisshould makeiteasierfortheCompany’sshareholderstoattendshareholder meetingsiftheBoardelectstoconductmeetingsusingelectronic means.AmendmentshavebeenmadethroughouttheNewArticles tofacilitatetheholdingofhybridorvirtual-onlyshareholdermeetings. WhiletheNewArticles(ifadopted)wouldpermitshareholder meetingstobeconductedusingelectronicmeans,theDirectors havenopresentintentionofholdingavirtual-onlymeeting.These provisionswillonlybeusedwheretheDirectorsconsideritisin thebestofinterestsofshareholdersforahybridorvirtual-only meetingtobeheld.NothingintheNewArticleswillpreventthe Companyfromholdingphysicalshareholdermeetings. The Alternative Investment Fund Managers Directive (2011/61/EU) (‘AIFMD’) as incorporated into UK law by the European Union (Withdrawal) Act 2018 and the Alternative Investment Fund Managers Regulations 2013 (SI 2013/1773) (the ‘AIFM Regulations’) TheBoardisproposingtotakethisopportunitytomake amendmentstotheExistingArticlesinresponsetotheAIFM Regulationsandallapplicablerulesandregulationsimplementing theAIFMD.Theproposednewprovisionsareasfollows: (i) TheExistingArticleswillbeamendedtoprovidethatthenet assetvaluepershareoftheCompanyshallbecalculatedat leastannuallyandbedisclosedtoshareholdersfromtimeto timeinsuchmannerasmaybedeterminedbytheBoard.The amendmentwillhavenobearingoncurrentpracticeandsimply articulatestheminimumrequirementsoftheAIFMRegulations. (ii) TheNewArticlesstipulatethatthevaluationoftheCompany’s assetswillbeperformedinaccordancewithprevailingaccounting standards,theAIFMRules,orsuchotheraccountingstandards, bases,policiesandproceduresastheBoardmaydetermine fromtimetotime.Thisreflectsbestpracticeandhasno bearingoncurrentpracticeandsimplyarticulatestheminimum requirementsoftheAIFMRegulations. International Tax Regimes Requiring the Exchange of Information TheBoardisproposingtoincludeprovisionsintheNewArticles toprovidetheCompanywiththeabilitytorequireshareholdersto co-operateinrespectoftheexchangeofinformationinorderto complywiththeCompany’sinternationaltaxreportingobligations, including,withoutlimitation,underorinrelationtoFATCA,the CommonReportingStandardandtheEuropeanUnion’sDirective onAdministrativeCooperation(‘TaxReportingRequirements’). TheExistingArticlesarebeingamendedtoprovidetheCompany withtheabilitytorequireshareholderstoco-operatewithitin ensuringthattheCompanyisabletocomplywithitsTaxReporting Requirements.TheExistingArticleswillalsobeamendedtoprovide that(i)whereanymemberfailstosupplytherelevantinformation totheCompanywithintherelevanttimeperiod,thememberwill bedeemedtohaveforfeitedtheirshares;and(ii)theCompanywill notbeliableforanymoniesthatbecomesubjecttoadeduction orwithholdingrelatingtoFATCA,theCommonReportingStandard oranysimilarlawsassuchliabilitywouldbetothedetrimentof shareholdersasawhole. 19.Anypersonholding3%ormoreofthetotalvotingrightsofthe CompanywhoappointsapersonotherthantheChairmanof themeetingashis/herproxywillneedtoensurethatbothhe/ sheandhisproxycomplieswiththeirrespectivedisclosure obligationsundertheUKDisclosureandTransparencyRules. 20.NoDirectorhasacontractofservicewiththeCompany. 21.Thefulltermsoftheproposedamendmentstothe Company’sArticlesofAssociationareavailableatthe officesofDicksonMintoW.S.,Level13BroadgateTower, 20PrimroseStreet,LondonEC2A2EWbetweenthehours of9.00amand5.00pm(Saturdays,Sundaysandpublic holidaysexcepted)andontheCompany’swebsite, monksinvestmenttrust.co.ukfromthedateoftheAGM NoticeuntilthecloseoftheAGM,andwillalsobeavailablefor inspectionatthevenueoftheAGMfrom15minutesbefore andduringtheAGM. Shareholder Information Appendix The Monks Investment Trust PLC 69 Directors’ Remuneration TheBoardisproposingtoamendtheExistingArticlestoincreasethe capontheaggregateofallfeespaidtoDirectorsfrom£300,000per annumto£400,000perannum.Theproposedincreaseisconsistent withmarketpractice.Shareholderslastapprovedanincreasein Directors’remunerationon2August2017whentheaggregate caponallfeeswasincreasedfrom£200,000to£300,000.The Directorsbelievethiscapisappropriateatthisjuncturetoallowfor recruitmentandpotentialoverlapastheyallowpotentiallyless experienceddirectorstimetobedinontheBoardbeforeothers standdown.AnysuchpaymentoffeestoDirectorswillbein accordancewiththeremunerationpolicyoftheCompanyfromtime totime. BoththeExistingArticlesandtheNewArticlesallowforahigher amounttobeapprovedfromtimetotimebyordinaryresolutionof theCompany. Minor Amendments TheBoardisalsotakingtheopportunitytomakesomeadditional minorortechnicalamendmentstotheExistingArticles,including: (i) provisionswhichenabletheCompanytoholdshareholder meetingsacrosstwo(ormore)physicallocationsintheevent thatallshareholderscannotbeaccommodatedinasingle physicallocationonthedayofameeting; (ii) provisionswhichenabletheCompanytopostponea shareholdermeetingwheretheBoardconsidersthatitwould beimpracticalorundesirabletoholdthemeetingonthedate whichwasoriginallynotifiedtoshareholders; (iii) expandingthecircumstancesunderwhichthechairofa shareholdermeetingmayadjournthemeetingwithoutthe consentofthemeeting,includingwherethehealth,safetyor wellbeingofthoseentitledtoattendwouldbeputatriskby theirattendanceatthemeeting; (iv)provisionswhichrequireallDirectorstoretireateachAGM (and,iftheywish,toofferthemselvesforre-election)inline withtherecommendedcorporategovernanceregimeinthe UK,andprovisionsdealingwiththepotentialsituation wherebynoDirectorsarere-electedatanAGM; (v) updatingtheprovisionsregardingthepaymentofdividendsto includetheuseofanyapprovedfundstransfersystemandto enabletheCompanytospecifywhichpaymentmethod(s)will beusedbytheCompanyinrespectofanydividend; (vi)provisionswhichclarifythattheCompanymayestablisha capitalreserveandthat,subjecttotheprovisionsofthe CompaniesAct2006,capitalprofitsstandingtothecreditof thecapitalreservemaybeusedtofinancethepaymentof dividendsandsharebuybacks; (vii)updatingtheprovisionsregardingtheserviceofnoticesand otherinformationonshareholderstoreflectthevarious methodspermittedunderUKcompanylaw; (viii)deletinghistoricstocksandwarrantsprovisions;and (ix)simplifyingtheprocedureinrespectofuntracedshareholders byremovingtherequirementfortheCompanytopublish newspaperadvertisements. Thesechangesgenerallyreflectmodernbestpracticeandshould assistinrelievingcertainadministrativeburdensontheCompany. Shareholder Information 70AnnualReport2022 Company History Monkswasincorporatedin1929andwasoneofthreetrusts foundedinthelate1920sbyagroupofinvestorsheadedby SirAuckland(laterLord)Geddes.Theothertwotrustswere TheFriarsInvestmentTrustandTheAbbotsInvestmentTrust. Thecompanysecretary’sofficewasat13/14AustinFriarsin theCityofLondon,hencethenames. In1931,BaillieGifford&Cotookoverthemanagementofallthree trustsandMonksbecameafoundermemberoftheAssociation ofInvestmentTrustsin1932. In1968,underaSchemeofArrangement,thethreetrustswere mergedwithMonksacquiringtheordinarysharecapitalofFriars andAbbots. Monks is an Investment Trust. Investment Trusts Offer Investors the Following: — participationinadiversifiedportfolioofshares; — constantsupervisionbyexperiencedprofessionalmanagers; and — theCompanyisfreefromcapitalgainstaxoncapitalprofits realisedwithinitsportfolioalthoughinvestorsarestillliablefor capitalgainstaxonprofitswhensellingtheirinvestment. How to Invest TheCompany’ssharesaretradedontheLondonStockExchange. Theycanbeboughtbyplacinganorderwithastockbrokerorby askingaprofessionaladvisertodoso.Ifyouareinterestedin investingdirectlyinMonks,youcandosoonline.Therearea numberofcompaniesofferingrealtimeonlinedealingservices– findoutmorebyvisitingmonksinvestmenttrust.co.uk. Sources of Further Information on the Company ThepriceofsharesisquoteddailyintheFinancialTimes andcanalsobefoundontheCompany’swebsiteat monksinvestmenttrust.co.uk andonotherfinancialwebsites. CompanyfactsheetsarealsoavailableontheCompany’swebsite andareupdatedmonthly.TheseareavailablefromBaillieGiffordon request. Monks Share Identifiers ISIN GB0030517261 Sedol 3051726 Ticker MNKS LegalEntityIdentifier213800MRI1JTUKG5AF64 TheordinarysharesoftheCompanyarelistedontheLondon StockExchangeandtheirpriceisshownintheFinancialTimes under‘InvestmentCompanies’. Key Dates TheInterimReportisissuedinDecemberandtheAnnualReport isnormallyissuedinJuly.The2022AGMisbeingheldatthestart ofSeptember.Dividendswillbepaidbywayofasinglefinal paymentshortlyaftertheCompany’sAGM. Capital Gains Tax ForCapitalGainsTaxindexationpurposes,themarketvalueofan ordinaryshareintheCompanyasat31March1982(asadjusted forthefiveforonesharesplitinJuly2001)was14.1p. Analysis of Shareholders at 30 April Name 2022 Number 2022 % 2021 Number 2021 % Institutions 30,293,640 13.3 35,471,681 15.0 Intermediaries 186,542,056 81.9 185,179,929 78.3 Individuals 10,247,908 4.5 14,363,343 6.1 Marketmakers 561,705 0.3 1,438,906 0.6 227,645,309 100.0 236,453,859 100.0 Share Register Enquiries ComputershareInvestorServicesPLCmaintainstheshareregister onbehalfoftheCompany.Intheeventofqueriesregarding sharesregisteredinyourownname,pleasecontacttheRegistrars on03707071170.Thishelplinealsooffersanautomated self-servicefunctionality(available24hoursaday,7daysaweek) whichallowsyouto: — hearthelatestshareprice; — confirmyourcurrentshareholdingbalance; — confirmyourpaymenthistory;and — orderChangeofAddress,DividendBankMandateandStock Transferforms. YoucanalsocheckyourholdingontheRegistrars’websiteat investorcentre.co.uk.Theyalsoofferafree,secureshare managementwebsiteservicewhichallowsyouto: — viewyourshareportfolioandseethelatestmarketpriceof yourshares; — calculatethetotalmarketpriceofeachshareholding; — viewpricehistoriesandtradinggraphs; — registertoreceivecommunicationsfromtheCompany, includingtheAnnualReport,inelectronicformat; — updatebankmandatesandchangeaddressdetails;and — useonlinedealingservices. Totakeadvantageofthisservice,pleaseloginat investorcentre.co.ukandenteryourShareholderReference NumberandCompanyCode(thisinformationcanbefoundon thelastdividendvoucheroryoursharecertificate). Further Shareholder Information Shareholder Information The Monks Investment Trust PLC 71 Dividend Reinvestment Plan ComputershareoperateaDividendReinvestmentPlanwhichcan beusedtobuyadditionalsharesinsteadofreceivingyourdividend viachequeorintoyourbankaccount.Forfurtherinformationlog on to investorcentre.co.ukandfollowtheinstructionsor telephone03707071694. Electronic Proxy Voting Ifyouholdstockinyourownnameyoucanchoosetovoteby returningproxieselectronicallyateproxyappointment.com. Ifyouhaveanyquestionsaboutthisservicepleasecontact Computershareon03707071170. InordertofulfilitsobligationsunderUKtaxlegislationrelatingto theautomaticexchangeofinformation,theCompanyisrequired tocollectandreportcertaininformationaboutcertain shareholders. Thelegislationrequiresinvestmenttrustcompaniestoprovide personalinformationtoHMRConcertaininvestorswhopurchase sharesininvestmenttrusts.Accordingly,theCompanywillhaveto provideinformationannuallytothelocaltaxauthorityonthetax residenciesofanumberofnon-UKbasedcertificated shareholdersandcorporateentities. Automatic Exchange of Information Shareholders,excludingthosewhosesharesareheldinCREST, whocomeontotheshareregisterwillbesentacertificationform forthepurposesofcollectingthisinformation. Forfurtherinformation,pleaseseeHMRC’sQuickGuide: AutomaticExchangeofInformation–informationforaccount holdersgov.uk/government/publications/exchange-of- information-account-holders. InaccordancewiththeAIFMRegulations,informationinrelation totheCompany’sleverageandtheremunerationofthe Company’sAIFM,BaillieGifford&CoLimited,isrequiredtobe madeavailabletoinvestors.InaccordancewiththeRegulations, theAIFMremunerationpolicyisavailableatbailliegifford.com or onrequest(seecontactdetailsonthebackcover).Thenumerical remunerationdisclosuresinrespectoftheAIFM’sreportingperiod arealsoavailableatbailliegifford.com. Alternative Investment Fund Managers (AIFM) Regulations TheCompany’smaximumandactualleveragelevels(seeGlossary ofTermsandAlternativePerformanceMeasuresonpages74to 76)at30April2022areasfollows: Leverage Gross method Commitment method Maximumlimit 2.50:1 2.00:1 Actual 1.07:1 1.08:1 CREST Proxy Voting IfyouareauseroftheCRESTsystem(includingaCRESTPersonal Member),youmayappointoneormoreproxiesorgiveaninstruction toaproxybyhavinganappropriateCRESTmessagetransmitted. ForfurtherinformationpleaserefertotheCRESTManual. Shareholder Information 72AnnualReport2022 Risks Pastperformanceisnotaguidetofutureperformance. MonksisaUKlistedcompany.Thevalueofitssharesandany incomefromthemcanfallaswellasriseandinvestorsmaynot getbacktheamountinvested. Monksinvestsinoverseassecurities.Changesintheratesof exchangemayalsocausethevalueofyourinvestment(andany incomeitmaypay)togodownorup. Marketvaluesforsecuritieswhichhavebecomedifficulttotrade maynotbereadilyavailable,andtherecanbenoassurancethat anyvalueassignedtosuchsecuritieswillaccuratelyreflectthe priceMonksmightreceiveupontheirsale. TheCompany’sriskcouldbeincreasedbyitsinvestmentin unlisted(privatecompany)investments.Theseassetsmaybe moredifficulttobuyorsell,sochangesintheirpricesmaybe greater. Monksinvestsinemergingmarketswheredifficultiesindealing, settlementandcustodycouldarise,resultinginanegativeimpact onthevalueofyourinvestment. Monkshasborrowedmoneytomakefurtherinvestments (sometimesknownas‘gearing’or‘leverage’).Theriskisthat whenthismoneyisrepaidbytheCompany,thevalueofthe investmentsmaynotbeenoughtocovertheborrowingand interestcosts,andtheCompanywillmakealoss.Ifthe Company’sinvestmentsfallinvalue,anyinvestedborrowings willincreasetheamountofthisloss. Monkscanbuybackitsownshares.Therisksfromborrowing, referredtoabove,areincreasedwhentheCompanybuysback itsownshares. Monkscanmakeuseofderivativeswhichmayimpactonits performance.Currently,theCompanydoesnotmakeuseof derivatives. Chargesaredeductedfromincome.Whereincomeislow,the expensesmaybegreaterthanthetotalincomereceived,meaning thattheCompanymaynotpayadividendandthecapitalvalue wouldbereduced. Sharepricesmayeitherbebelow(atadiscountto)orabove(ata premiumto)thenetassetvalue(NAV).TheCompanymayissue newshareswhenthepriceisatapremiumwhichwillreducethe shareprice.Sharesboughtatapremiumcanthereforequickly losevalue. AstheaimofMonksistoachievecapitalgrowthyoushouldnot expectasignificant,orsteady,annualincomefromtheCompany. Youshouldnotethattaxratesandreliefsmaychangeatanytime andtheirvaluedependsonyourcircumstances. MonksislistedontheLondonStockExchangeandassuch complieswiththerequirementsoftheFinancialConduct Authority.ItisnotauthorisedorregulatedbytheFinancial ConductAuthority. Furtherdetailsoftherisksassociatedwithinvestinginthe Company,includingaKeyInformationDocumentandhowcharges areapplied,canbefoundatmonksinvestmenttrust.co.uk,orby callingBaillieGiffordon08009172112.Thisinformationhasbeen issuedandapprovedbyBaillieGifford&CoLimited,theManagers andSecretaries,anddoesnotinanywayconstituteinvestment advice. TheFinancialStatementshavebeenapprovedbytheDirectorsof The Monks Investment Trust PLC. Theinformationandopinions expressedinthisdocumentaresubjecttochangewithoutnotice. ThestaffofBaillieGiffordandMonksDirectorsmayholdsharesin Monksandmaybuyorsellsuchsharesfromtimetotime. Shareholder Information Sustainable Finance Disclosure Regulation (‘SFDR’) TheEUSustainableFinanceDisclosureRegulation(‘SFDR’) doesnothaveadirectimpactintheUKduetoBrexit.However, itappliestothird-countryproductsmarketedintheEU.AsThe MonksInvestmentTrustPLCismarketedintheEUbytheAIFM, BG&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Governanceand SustainablePrinciplesandGuidelinesasitspolicyonintegration ofsustainabilityrisksininvestmentdecisions. BaillieGifford&Co’sapproachtoinvestmentisbasedon identifyingandholdinghighqualitygrowthbusinessesthatenjoy sustainablecompetitiveadvantagesintheirmarketplace.Todo thisitlooksbeyondcurrentfinancialperformance,undertaking proprietaryresearchtobuildupanin-depthknowledgeofan individualcompanyandaviewonitslong-termprospects.This includestheconsiderationofsustainabilityfactors(environmental, socialand/orgovernancematters)whichitbelieveswillpositively ornegativelyinfluencethefinancialreturnsofaninvestment. MoredetailontheInvestmentManager’sapproachto sustainabilitycanbefoundintheGovernanceandSustainability PrinciplesandGuidelinesdocument,availablepubliclyonthe BaillieGiffordwebsite(bailliegifford.com). Taxonomy Regulation TheTaxonomyRegulationestablishesanEU-wideframework orcriteriaforenvironmentallysustainableeconomicactivitiesin respectofsixenvironmentalobjectives.Itbuildsonthedisclosure requirementsunderSFDRbyintroducingadditionaldisclosure obligationsinrespectofAIFsthatinvestinaneconomicactivity thatcontributestoanenvironmentalobjective. TheCompanydoesnotcommittomakesustainableinvestments asdefinedunderSFDR.Assuch,theunderlyinginvestmentsdo nottakeintoaccounttheEUcriteriaforenvironmentally sustainableeconomicactivities. The Monks Investment Trust PLC 73 Monks on the Web Up-to-dateinformationaboutMonkscanbefoundonthe Company’spageoftheManagers’websiteat monksinvestmenttrust.co.uk.YouwillfindfulldetailsonMonks, includingrecentportfolioinformationandperformancefigures. Trust Magazine TrustistheBaillieGiffordinvestmenttrustmagazinewhichis publishedtwiceayear.Itprovidesaninsighttoourinvestment approachbyincludinginterviewswithourfundmanagers,aswell ascontaininginvestmenttrustnews,investmentfeaturesand articlesaboutthetrustsmanagedbyBaillieGifford,including Monks. Trustplaysanimportantroleinhelpingtoexplainour productssothatreaderscanreallyunderstandthem. YoucansubscribetoTrustmagazineorviewadigitalcopyat bailliegifford.com/trust. Suggestions and Questions Anysuggestionsonhowcommunicationswithshareholderscan beimprovedarewelcome.PleasecontacttheBaillieGiffordClient RelationsTeam(seecontactdetailsinthe‘FurtherInformation’ boxonthebackcover)andgivethemyoursuggestions.Theywill alsobeveryhappytoanswerquestionsthatyoumayhaveabout Monks. Client Relations Team Contact Details YoucancontacttheBaillieGiffordClientRelationsTeamby telephone(yourcallmayberecordedfortrainingormonitoring purposes),email,faxorpost.Seecontactdetailsinthe‘Further Information’boxonthebackcover. Please note that Baillie Gifford is not permitted to give financial advice. If you would like advice please ask an authorised intermediary. Communicating with Shareholders Nothirdpartydataprovider(‘Provider’)makesanywarranty, expressorimplied,astotheaccuracy,completenessor timelinessofthedatacontainedherewithnorastotheresults tobeobtainedbyrecipientsofthedata. NoProvidershallinanywaybeliabletoanyrecipientofthedata foranyinaccuracies,errorsoromissionsintheindexdataincluded inthisdocument,regardlessofcause,orforanydamages (whetherdirectorindirect)resultingtherefrom.NoProviderhas anyobligationtoupdate,modifyoramendthedataorto otherwisenotifyarecipientthereofintheeventthatanymatter statedhereinchangesorsubsequentlybecomesinaccurate. Withoutlimitingtheforegoing,noProvidershallhaveanyliability whatsoevertoyou,whetherincontract(includingunderan indemnity),intort(includingnegligence),underawarranty, understatuteorotherwise,inrespectofanylossordamage sufferedbyyouasaresultoforinconnectionwithany opinions,recommendations,forecasts,judgements,orany otherconclusions,oranycourseofactiondetermined,by youoranythirdparty,whetherornotbasedonthecontent, informationormaterialscontainedherein. Third Party Data Provider Disclaimer FTSE Index Data Source:LondonStockExchangeGroupplcanditsgroup undertakings(collectively,the‘LSEGroup’).©LSEGroup2022. FTSERussellisatradingnameofcertainoftheLSEGroup companies.‘FTSE ® ’‘Russell ® ’,‘FTSERussell ® ’,is/areatrade mark(s)oftherelevantLSEGroupcompaniesandis/areusedby anyotherLSEGroupcompanyunderlicense.Allrightsinthe FTSERussellindexesordatavestintherelevantLSEGroup companywhichownstheindexorthedata.NeitherLSEGroup noritslicensorsacceptanyliabilityforanyerrorsoromissionsin theindexesordataandnopartymayrelyonanyindexesordata containedinthiscommunication.Nofurtherdistributionofdata fromtheLSEGroupispermittedwithouttherelevantLSEGroup company’sexpresswrittenconsent.TheLSEGroupdoesnot promote,sponsororendorsethecontentofthiscommunication. Shareholder Information 74AnnualReport2022 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 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 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. 2022 £’000 2022 per share 2021 £’000 2021 per share Shareholders’funds(borrowingsatbookvalue) 2,479,164 1,089.0p 3,204,980 1,355.4p Add:bookvalueofborrowings 214,826 94.4p 139,788 59.1p Less:parvalueofborrowings (215,000) (94.4p) (140,000) (59.2p) Netassetvalue(borrowingsatparvalue) 2,478,990 1,089.0p 3,204,768 1,355.3p Thepersharefiguresabovearebasedon227,645,309(2021–236,453,859)ordinarysharesof5p,beingthenumberofordinarysharesin issueattheyearend. Net Asset Value (Borrowings at Fair Value) (APM) Borrowingsarevaluedatanestimateofmarketworth.Thefairvalueofthe6 3 / 8%debenturestock2023iscalculatedusinga comparabledebtapproachand/orbrokerquoteswhereavailable.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. 2022 £’000 2022 per share 2021 £’000 2021 per share Shareholders’funds(borrowingsatbookvalue) 2,479,164 1,089.0p 3,204,980 1,355.4p Add:bookvalueofborrowings 214,826 94.4p 139,788 59.1p Less:fairvalueofborrowings (190,308) (83.6p) (133,524) (56.4p) Netassetvalue(borrowingsatfairvalue) 2,503,682 1,099.8p 3,211,244 1,358.1p Thepersharefiguresabovearebasedon227,645,309(2021–236,453,859)ordinarysharesof5p,beingthenumberofordinarysharesin issueattheyearend. Glossary of Terms and Alternative Performance Measures (APM) Shareholder Information The Monks Investment Trust PLC 75 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sharepricefrom theNAVpershare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. 2022 2021 ClosingNAVpershare(borrowingsatpar) a 1,089.0p 1,355.3p ClosingNAVpershare(borrowingsatfairvalue) b 1,099.8p 1,358.1p Closingshareprice c  1,051.0p 1,396.0p (Discount)/premium to NAV with borrowings at par (c-a)÷a (3.5%) 3.0% (Discount)/premium to NAV with borrowings at fair value (c-b)÷b (4.4%) 2.8% Net Liquid Assets Netliquidassetscomprise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. 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. 2022 NAV (par) 2022 NAV (fair) 2022 Share Price 2021 NAV (par) 2021 NAV (fair) 2021 Share Price ClosingNAVpershare/shareprice a 1,089.0p 1,099.8p 1,051.0p 1,355.3p 1,358.1p 1,396.0p Dividendadjustmentfactor * b 1.0015 1.0015 1.0014 1.0024 1.0024 1.0023 AdjustedclosingNAVpershare/shareprice c=axb 1,090.6p 1,101.4p 1,052.5p 1,358.5p 1,361.3p 1,399.2p OpeningNAVpershare/shareprice d 1,355.3p 1,358.1p 1,396.0p 878.3p 875.6p 914.0p Totalreturn (c÷d)-1 (19.5%) (18.9%) (24.6%) 54.7% 55.5% 53.1% * Thedividendadjustmentfactoriscalculatedontheassumptionthatthedividendof2.00p(2021–2.50p)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. 2022 2021 Investmentmanagementfee £10,465,000 £10,011,000 Otheradministrativeexpenses £1,888,000 £1,656,000 Totalexpenses a £12,353,000 £11,667,000 Averagenetassetvalue(withborrowingsdeductedatfairvalue) b £3,114,257,000 £2,697,905,000 Ongoingcharges a÷b 0.40% 0.43% Shareholder Information 76AnnualReport2022 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Summaryonpage17. 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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. 2022 2021 Borrowings(atbookcost) a £214,826,000 £139,788,000 Less:cashandcashequivalents (£35,879,000) (£108,723,000) Less:salesforsubsequentsettlement (£4,741,000) – Add:purchasesforsubsequentsettlement £7,045,000 £941,000 Adjustedborrowings b £181,251,000 £32,006,000 Shareholders’funds c £2,479,164,000 £3,204,980,000 Gross (potential) gearing a÷c 8.7% 4.4% Net (invested) gearing b÷c 7.3% 1.0% 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2022aredetailedonpage71. 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 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. Shareholder Information Directors Chairman: KS Sternberg CM Boyle BJ Richards Professor Sir Nigel Shadbolt JJ Tigue Registered Office Computershare Investor Services PLC Moor House 120 London Wall London EC2Y 5ET Alternative Investment Fund Managers and Secretaries Baillie Gifford & Co Limited Calton Square 1 Greenside Row Edinburgh EH1 3AN Tel: 0131 275 2000 bailliegifford.com Registrar Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 6ZZ Tel: 0370 707 1170 Independent Auditor Ernst & Young LLP Atria One 144 Morrison Street Edinburgh EH3 8EX Brokers Investec Bank plc 30 Gresham Street London EC2V 7QP Depositary Bank of New York Mellon (International) Limited 1 Canada Square London E14 5AL Company Details monksinvestmenttrust.co.uk Incorporated in England and Wales Company Registration No. 00236964 ISIN GB0030517261 Sedol 3051726 Ticker MNKS Legal Entity Identifier: 213800MRI1JTUKG5AF64 Further Information Client Relations Team Baillie Gifford & Co Calton Square 1 Greenside Row Edinburgh EH1 3AN Tel: 0800 917 2112 Email: trustenquiries@bailliegifford.com