Monks Investment Trust PLC

Annual Report • Jul 11, 2023

Annual Report and Financial Statements 30 April 2023 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 Financial Conduct 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,  Markets Act 2000 immediately if you are in the United Kingdom or, if not, from another appropriately  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 Managers’ Report 7 The Managers’ Core Investment Beliefs 8 Investment Portfolio by Growth Category 10 Portfolio Positioning 11 List of Investments 14 Baillie Gifford’s Approach to Valuing Private Companies 15 One Year Summary 16 Five Year Summary 17 Ten Year Summary 18 Business Review Governance Report 23 Directors and Management 25 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 66 Notice of Annual General Meeting 68 Further Shareholder Information 68 Analysis of Shareholders 70 Automatic Exchange of Information 70 Alternative Investment Fund Managers Regulations 70 Sustainable Finance Disclosure Regulation 71 Communicating with Shareholders 71 Third Party Data Provider Disclaimer 72 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. The Monks Investment Trust PLC 01 Financial Highlights Past performance is not a guide to future performance. Share Price * (7.0%) NAV * (2.6%) (borrowings at par) NAV * (1.6%) (borrowings at fair value) Benchmark * † 3.2%   Financial Highlights – Year to 30 April 2023 A 2022 DJ FMJ J A S O N A 2023 M 1200 1000 900 800 1100 A 2022 DJ FMJ J A S O N A 2023 M (4) (8) (10) (12) (6) A 2022 DJ FMJ J A S O N A 2023 M 110 105 100 90 95 Share Price (pence) Share price Discount # Discount (after deducting borrowings at fair value # ) plotted as at month end dates NAV and Benchmark    (after deducting borrowings at fair value # )  † total return  †  #  02 Strategic Report *    Past performance is not a guide to future performance. Chairman’s Statement Performance        .  .    Share Capital  we were pleased to issue new shares to former shareholders of        estimated reduction to the ongoing charges ratio of two basis       shares in the open market. Having issued shares when Monks           Borrowings and Gearing            Unlisted Exposure            the valuations of the small number of investments we hold   believe that unquoted companies offer us the means to gain  Management Expenses  enhance returns to shareholders. The total ongoing charges ratio    as asset growth recovers. Earnings and Dividend    maintain investment trust status. Retained earnings are reinvested      Governance and Sustainability     individual businesses face is critical as the Manager seeks to   supports the portfolio managers in their engagement with      Monks Stewardship Report  The Monks Investment Trust PLC 03 Strategic Report The Board    considered recent and anticipated developments in the commercial      and unquoted investment.    that there is an equal need to manage succession so as to ensure adequate handover periods and retention of the corporate          Outlook           of the importance of valuation discipline. The aggressive period of           attractive growth companies with sustainable business models. Annual General Meeting           at monksinvestmenttrust.co.uk the meeting will be posted. Market announcements will also be    trustenquiries@bailliegifford.com or  KS Sternberg Chairman  04    Past performance is not a guide to future performance. Managers’ Report Strategic Report An environment for growth  than in the preceding decade and the operating environment is         stronger aggregate balance sheets than the broader market     to outcompete their peers over time and entrench their competitive positions.           potential to drive positive returns for investors over the long term. Performance The current team has managed The Monks Investment Trust for   ) compared to the  .        companies. This precipitated a sharp contraction in valuations                   This has been the case where:                There have been companies in the portfolio for which strong operational performance has been rewarded in share price terms.    has been taking positive steps in broadening the application of its    The market for Alnylam’s gene silencing treatment is expanding The Monks Investment Trust PLC 05 Strategic Report Positioning and optimism    and decisive moves on our part to sell holdings where operational         to capture this. Our latest Research Agenda outlines areas of   — Increased Return from Patience – during periods of fear and                — Infrastructure Upgrade to be rebuilt and rewired to cope with more people and a               — New Growth Frontiers – if the growth engines of the past           concerns about falling enrolment numbers and the risk posed          Floor and Décor has been driving growth by expanding across the US  The ongoing maintenance and upgrades of existing swimming pools forms an important part of Pool Corp’s business model 06 Strategic Report — Supply Side Importance            a preferred partner has been elevated as rates have increased. Independent Investment Trust            Governance and Sustainability               numerous productive discussions with the management and the       Tencent to acquire shares at levels that appeared to favour the   seen in the Monks Stewardship Report 2022. © CRH. Following discussions with CRH management, the company’s new decarbonisation target is encouraging Outlook  broadening and the prospects for growth companies are as compelling as ever. The operating environment for companies      invest in companies that grow their earnings over long periods –  look across the growth spectrum and around the world for ideas.     the greatest underappreciation of future growth. It is this future  the future.  Malcolm MacColl   The Monks Investment Trust PLC 07 Long-term Perspective   given time to drive returns.       during the inevitable periods of underperformance.      Dedicated Team with Clear Decision-making Process       Portfolio Construction          – some of our smaller positions will   Low Cost      basis for adding value for shareholders. Active Management    little interest to us. — High active share * provides the potential for adding value.     — Large swathes of the market are unattractive and of no interest to us.       often for prolonged periods. Committed Growth Investors   drives returns.    value.        of growth drivers within a disciplined framework. The Managers’ Core Investment Beliefs Strategic Report  08 Investment Portfolio by Growth Category * As at 30 April 2023 Growth Stalwarts Rapid Growth  Company characteristics Durable franchise  environments    Company characteristics   markets Highest conviction holdings c.2.0% each Microsoft   Service Corporation International Pernod Ricard MasterCard             Prosus Reliance Industries     Average sized holdings c.1.0% each Meta Platforms  Prudential Shiseido            Solutions    CoStar       The Trade Desk  Pharmaceuticals The Schiehallion  Moderna The Schiehallion           MercadoLibre Illumina Sea Limited        Incubator holdings c.0.5% each adidas  Certara Topicus.com         Doordash Tesla Coupang Schibsted        Stripe   Staar Surgical ICICI Prudential Life Insurance                  Midwich    Meituan Novocure    Datadog  Technologies  Lemonade                        Total in this growth category 36.8% Total in this growth category 30.7% Time  Time  *  Strategic Report The Monks Investment Trust PLC 09 Cyclical Growth  Company characteristics  structural growth prospects  Martin Marietta Materials CRH         Total in this holding size 39.0% Rio Tinto TSMC Richemont   Markel             Charles Schwab  SiteOne Landscape  SMC             Total in this holding size 39.6%    Holdings Pool Corporation   Howard Hughes  Sands China Redrow                 Persimmon    Sberbank of Russia         Total in this holding size 21.4% Total in this growth category 32.5% Time  Strategic Report 10 Portfolio Positioning As at 30 April 2023 Sectoral 2023 Geographical 2023  Industrials 13.3% (10.6%) Technology 21.6% (20.6%) Net Liquid Assets 1.7% (1.2%) Financials 17.8% (21.1%) Energy 2.6% (2.8%) Basic Materials 4.0% (5.0%) Consumer Staples 2.3% (2.0%) Healthcare 12.5% (14.5%) Consumer Discretionary 22.4% (19.5%) Real Estate 1.8% (2.7%) North America 52.4% (54.0%) Net Liquid Assets 1.7% (1.2%) Emerging Markets 10.9% (12.2%) United Kingdom 8.6% (8.7%) Developed Asia 4.9% (4.9%) Continental Europe 16.3% (14.5%) Japan 5.2% (4.5%)            airline. —          This brackets a diverse range of businesses from internet winners in developed and emerging economies to healthcare and semiconductor companies.  companies which seek to serve multiple stakeholders via a platform        —        —   Thematic Exposure     Industrial Demand        Platform Crush    Transformational Health          Other   Middle Classes            Industrial Demand   Compounders      Net Liquid Assets 1.7% Developed Market Growth 18.4% Developing Economies 16.9% New Economy 37.9% Economically Agnostic 25.1% Strategic Report The Monks Investment Trust PLC 11 Name Business Growth category Fair value £’000 % of total assets Cumulative % of total assets Equities Microsoft Software and cloud computing enterprise Stalwart  3.3 Elevance Health Healthcare insurer Stalwart   Prosus  Rapid   Martin Marietta Materials Cement and aggregates manufacturer    Moody’s  Stalwart   Service Corporation International Death care services Stalwart   Reliance Industries  Rapid   Amazon.com Online retailer Rapid   Pernod Ricard  Stalwart   CRH     25.8 The Schiehallion Fund  Rapid   The Schiehallion Fund – C Shares  Rapid     MasterCard  Stalwart    Online search engine Stalwart         Insurance broker Stalwart          Stalwart   Meta Platforms Social networking website Stalwart         Optoelectronic products Stalwart   43.1 Rio Tinto     Prudential International life insurance Stalwart   TSMC Semiconductor manufacturer    Shiseido  Stalwart   The Trade Desk  Rapid   Richemont       Stalwart    Indian mortgage provider      Rapid    Chinese life insurer    55.4  Integrated circuits Stalwart     Stalwart   Markel     Moderna  Rapid      Stalwart    Industrial equipment     Semiconductor testing equipment manufacturer     Software products and technologies Stalwart        List of Investments As at 30 April 2023 *    Strategic Report 12 Strategic Report Name Business Growth category Fair value £’000 % of total assets Cumulative % of total assets   Stalwart   64.7 Charles Schwab Online savings and trading platform      Rapid     Rapid    Manufacturer of law enforcement devices Rapid    Online commerce platform Rapid   MercadoLibre  Rapid   CoStar  Stalwart    Commercial real estate operator         SMC     72.3       Industrial engineering products          Medical testing equipment Stalwart        Illumina  Rapid   Sea Limited Online and digital gaming Rapid     Rapid    Online content platform including TikTok Rapid   Doordash Online commerce platform Rapid   79.0 Tesla  Rapid   Coupang South Korean ecommerce Rapid   adidas Sports apparel manufacturer Stalwart   Schibsted  Rapid     Rapid         Reseller of computer software Rapid    Online pet supplies retailer Stalwart     Rapid    Manufacturer of cables and electrical parts    84.4      Certara  Stalwart   Pool Corporation Swimming pool supplies and equipment          Low cost airline      Rapid   Howard Hughes       Rapid        Sands China Macau casino operator    89.0 Topicus.com  Stalwart    Cloud based data insight application Rapid   Redrow     The Monks Investment Trust PLC 13 Strategic Report Name Business Growth category Fair value £’000 % of total assets Cumulative % of total assets Stripe  Rapid     Rapid         Cloud based IT services business Rapid        Staar Surgical Implantable contact lenses Rapid   ICICI Prudential Life Insurance Life insurance services Rapid   93.0 Midwich  Rapid          Rapid     Rapid     Rapid   Meituan Online commerce platform Rapid   Novocure  treatment Rapid    Cancer detection and treatment Rapid    Commercial kitchen equipment manufacturer Stalwart        96.1  Online fashion retailer Rapid    Online music streaming service Rapid   Persimmon     Datadog  Rapid         Space rockets and satellites Rapid    Dating application Rapid   Lemonade  Rapid     Rapid        98.2  Online home furnishings business Rapid     Rapid     Rapid   Sberbank of Russia † Russian commercial bank  –   Medical implant manufacturer Rapid –  Total Investments 2,574,408 98.3 98.3 Net Liquid Assets #   Total Assets # 2,617,738 100.0 100.0  † Suspended investment. #  Listed equities % Schiehallion Fund % Unlisted securities ‡ % Net liquid assets # % Total assets # % 30 April 2023 94.4 2.0 1.9 1.7 100.0        ‡  #  14     process ensures that private companies are valued in both a fair             process.      or changes to the valuation of comparable public companies. The valuations committee also monitors relevant market indices       Baillie Gifford’s Approach to Valuing Private Companies   companies (unquoted investments) as part of their audit. The Monks Investment Trust Instruments valued 9 Revaluations performed       reporting period end.  prevailing market conditions. The average movement in both  is shown below. Average movement in investee company valuation Average movement in investee company share price Instruments valued    reporting period end.   which provides some downside protection.    the event of a corporate sale or liquidation. Strategic Report Private Company Instruments Name Instrument Fair value at 30 April 2023 £’000 % of total assets      Common Stock   Stripe   Stripe Series H Preference  Stripe Series I Preference        Class C Common            Total private company investments 53,137 1.9  *   Total unlisted investments 54,418 1.9     Total direct and indirect unlisted exposure 107,695 3.9  The Monks Investment Trust PLC 15 30 April 2023 30 April 2022 % change Total assets (before deduction of borrowings)              †     †    Share price     #          Ongoing charges †    †    †    †   Net gearing †    †   Year to 30 April 2023 2022 Total return performance% ‡ Net asset value (borrowings at par) †   Net asset value (borrowings at fair value) †   Share price †    #   Year to 30 April 2023 2023 2022 2022 Year’s high and low High Low High Low Net asset value (borrowings at par) †     Net asset value (borrowings at fair value) †     Share price      † ) ranged from a discount †  †  †  †   Year to 30 April 2023 2022 Net return per ordinary share Revenue   Capital   Total (29.77p) (264.91p) *  †  #  ‡  One Year Summary * Strategic Report Past performance is not a guide to future performance. 16 The following charts indicate how an investment in Monks has performed relative to  †   Premium/(discount) to Net Asset Value #  5 Year Total Return Performance #  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 ‡ . NAV total return #¶ Share price total return # 2019 Years to 30 April 2020 2021 2022 2023 40% 0% 20% (40%) (20%) 2018 Cumulative to 30 April 2020 2021 2022 2023 2019 Sour ce: Refinitiv and relevant underlying index providers ‡ . NAV total return #¶ Share price total return # FTSE World Index † total return 80 120 200 100 140 160 180 Source: Refinitiv/Baillie Gifford. Monks premium/(discount) (after deducting borrowings at fair value) # Monks premium/(discount) (after deducting borrowings at par) # 2018 Years to 30 April 2020 2021 2022 2023 2019 (15%) 10% (10%) (5%) 5% 0% Five Year Summary * Strategic Report Annual Net Asset Value and Share Price Total Returns # Source: Refinitiv/Baillie Gifford. NAV total return #¶ Share price total return # 2019 Years to 30 April 2020 2021 2022 2023 60% 0% 30% (30%) Past performance is not a guide to future performance. *  †  #  ‡  ¶  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 ¶ % Net (invested) gearing # % Gross (potential) gearing #§ %                                                                                9 2023 30,211 10,714 4.70 3.15 0.43 5 7 Cumulative Performance (taking 2013 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 ^                                                                                  333  393                 2023 265 276 275 287 228 289 100 80 149 Compound annual returns                     *  †   #  ‡   ¶  §  ^  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) %                                                                                                     2023 2,617,738 174,858 2,442,880 1,058.5 1,058.5 1,080.0 975.0 (7.9) (9.7) Strategic Report Past performance is not a guide to future performance. 18 Business Model Business and Status        public listed companies and their shares are traded on the                Regulations. Purpose The Monks Investment Trust aims to deliver above average   Objective and Policy      the investment case.                eliminating investment risk in its investments and protection         The shares are not considered to be a suitable investment for those seeking a regular or rising income.  this is considered to be appropriate on investment grounds.       Culture and Values   providers with whom shareholders and other stakeholders      the highest standards of business conduct. Performance    Key Performance Indicators             — ongoing charges.        comparable companies. Strategic Report Business Review The Monks Investment Trust PLC 19 Borrowings           Principal and Emerging Risks     regular basis. The Directors have carried out a robust assessment    being managed or mitigated is set out below.      the relevant risks. Financial Risk  therefore market related and include market risk (comprising      pandemic and owing to macroeconomic and geopolitical      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  Investment Strategy Risk            Manager. Strategic Report Climate and Governance Risk – as investors place increased                 includes assessment of the risks inherent in climate change  Regulatory Risk         change could impose disproportionate compliance burdens on  ensure that the special circumstances of investment trusts are    processes and procedures are in place to ensure adherence to  reference to inside information. Custody and Depositary Risk          Operational Risk  provide accurate reporting and monitoring or a misappropriation    20           Discount Risk        shareholders. Political and Associated Economic Risk – political change          Leverage Risk     can also make use of derivative contracts. To mitigate this risk    investment managers        . Emerging Risks     risks arise from the interconnectedness of global economies          than to invalidate the investment rationale over the long term. Strategic Report Viability Statement     taken into account a number of factors including the investment         to operate over that period. In making this assessment the Directors have taken into account        investment portfolio. The Directors have also considered the                  consideration of risk of further market deterioration resulting from geopolitical concerns and macroeconomic pressures. The stress          The Monks Investment Trust PLC 21 Promoting the Success of the Company (Section 172 Statement)                           below.          pandemic. The Chairman is available to meet with shareholders        when considering how best to promote the success of the     ensuring that appropriate and regular challenge is brought and evaluation conducted. This approach aims to enhance service     business conduct.          longstanding aim of providing a sustainable basis for adding value         monksinvestmenttrust.co.uk.     suitable consideration is given to the range of factors to which the Directors should have regard. In addition to ensuring that the      of the recruitment process and subsequent appointment of            3              — the decision to authorise the preparation of a prospectus  shareholder approval for a combination with The Independent    Strategic Report 22          Employees, Human Rights and Community Issues      issues. Gender Representation    Environmental, Social and Governance Policy          website at bailliegifford.com. Future Developments of the Company             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.         CM Boyle Claire Boyle was appointed a Director in 2020.             Directors and Management Dr D Chaya Dina Chaya was appointed a Director with effect from 30 November 2022.        BJ Richards Belinda Richards was appointed a Director in 2016. She is a       Governance Report   24 Governance Report Prof Sir Nigel Shadbolt Professor Sir Nigel Shadbolt was appointed a Director in 2017.      Data Institute. JJ Tigue Jeremy Tigue was appointed a Director in 2014. He became     Mercantile Investment Trust plc. He was a director of the  Managers and Secretaries                       Spencer Adair Malcolm MacColl The Monks Investment Trust PLC 25 Directors’ Report The Directors present their Report together with the audited  Corporate Governance  and forms part of this Report. Managers and Company Secretaries                   and secretarial arrangements on an ongoing basis and a formal            and the delegation of investment management services to     Depositary           and leverage requirements. Directors             shareholders. Directors’ Indemnity and Insurance         in which the Director is convicted or civil proceedings brought             Dividends        Share Capital Capital Structure      the shares. Governance Report 26 Dividends     Capital Entitlement   proportion to their shareholdings. Voting      Major Interests in the Company’s Shares     Annual General Meeting Issuance of Shares           Reconstruction as set out in the Circular and Prospectus dated             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         purchasing shares at a discount to the prevailing net asset value.  then:       value.              (ii) the higher of the price of the last independent trade and the highest current independent bid for a share on the London  Governance Report The Monks Investment Trust PLC 27        share for the remaining shareholders and if it is in the best  Articles of Association   Financial Instruments       disclosed in note   Disclosure of Information to Auditor 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Post Balance Sheet Events    Independent Auditor      Greenhouse Gas Emissions and Streamlined Energy & Carbon Reporting (‘SECR’)         information. Bribery Act     Criminal Finances Act 2017   Recommendation   as it is their view that the resolutions are in the best interests of shareholders as a whole.  KS Sternberg Chairman   Governance Report 28 Corporate Governance Report     companies and can be found at theaic.co.uk    frc.org.uk. Compliance          The Board  including the determination and embodiment of its culture and values. It has a number of matters reserved for its approval          Directors all of whom are  The Chairman is responsible for organising the business of          performance appraisal and chairs the Nomination Committee       There is an agreed procedure for Directors to seek independent  Nomination Committee The Nomination Committee consists of all the Directors and Karl Sternberg is the Chairman of the Committee. The Committee  required. The Committee has written terms of reference which    also considers whether Directors should be recommended for      monksinvestmenttrust.co.uk. Appointments to the Board             in formal letters of appointment which are available for inspection on request.     Diversity Policy               prefer not to disclose their ethnic background. In such   Governance Report The Monks Investment Trust PLC 29 Diversity of the Board    to the Parker Review recommendations. The Nomination          criteria.            Board as at 30 April 2023 Sex Number % Senior roles Men 3  3  3       Ethnic Background Number % Senior roles    3         Independence of Directors    The Directors recognise the importance of succession planning          Chair and Senior Independent Director. Governance Report Policy on Chairman’s Tenure      that an appropriate combination of these factors is essential for   Committee considers long term succession planning for this role as part of its broader remit to ensure an appropriate level of    Meetings          the combination with The Independent Investment Trust PLC.  serving at that date. Directors’ Attendance at Meetings Board Audit Committee Management Engagement Committee Nomination Committee Number of meetings 4 2 1 1       *          Professor Sir Nigel Shadbolt      KS Sternberg   †        *  †   30 Performance Evaluation    responding to an evaluation questionnaire each Director had an     contribution of individual Directors and the overall effectiveness    each Director and the Chairman remain committed to the          Induction and Training New Directors are provided with an induction programme which is tailored to the particular circumstances of the appointee. During the    Management Engagement Committee   the management contract is competitive and reasonable for the     member of the Committee to be independent. To discharge its       monksinvestmenttrust.co.uk. Remuneration        Audit Committee  Internal Controls and Risk Management      against material misstatement or loss.       and maintenance of control policies and procedures to safeguard  including the maintenance of effective operational and compliance controls have been delegated to the Managers and Secretaries.       their monitoring programmes. The reporting procedures for these               assess whether further action is required to manage these risks.          place up to the date of approval of this Report.     Governance Report The Monks Investment Trust PLC 31   ownership and maintaining a record of other assets and           are investigated.  monitoring activities.  to ensure that effective risk management policies and procedures                 Going Concern    concern.          status is affected.                   principal and emerging risks and other matters set out in the    which is for a period of at least twelve months from the date of  Relations with Shareholders    The Chairman has maintained open lines of communication with    matters. The Chairman is available to meet with shareholders        for each resolution is announced at the meeting and is published at monksinvestmenttrust.co.uk subsequent to the meeting.    monksinvestmenttrust.co.uk. Corporate Governance and Stewardship       when selecting and retaining investments and has asked the Managers to take these issues into account. The Managers do    with the aim of improving the relevant policies and management     bailliegifford.com.     monksinvestmenttrust.co.uk. Governance Report 32 Climate Change    result in companies that are high emitters of carbon facing greater  true environmental impact of their activities.   prioritise engagement and understand what higher emitting                bailliegifford.com  monksinvestmenttrust.co.uk.          KS Sternberg Chairman   Governance Report The Monks Investment Trust PLC 33 Audit Committee Report       its written terms of reference which are available on request from monksinvestmenttrust.co.uk.      Main Activities of the Committee      permanent risk function provided reports on their monitoring                                  — internal controls reports received from the Managers and      Internal Audit The Committee continues to believe that the compliance and internal      Financial Reporting          Internal Controls which details the controls in place regarding recording and pricing of investments and the reconciliation of          in valuing such investments. The Managers agreed the portfolio   Controls which details the controls in place regarding completeness and accurate recording of investment income. The accounting treatment of each special dividend received  The Committee considered the factors that might affect the   together with reports from the Managers on the cash position              accordance with applicable law and accounting standards. Governance Report 34 Internal Controls and Risk Management     External Auditor          combination with The Independent Investment Trust PLC (IIT) in  debenture trustee. Costs of the combination with IIT have been  connection with share issuance.                audit partner. The audit partners responsible for the audit are to be                     Regulatory Compliance        Accountability and Audit         Governance Report The Monks Investment Trust PLC 35 Directors’ Remuneration Report This report has been prepared in accordance with the  Statement by the Chairman           Chair or Senior Independent Director. The fee levels were last  Directors’ Remuneration Policy        set at a reasonable level that is commensurate with the duties and responsibilities of the role and consistent with the requirement            schemes. There is no notice period and no compensation is  Limits on Directors’ Remuneration  in arrears and are determined within the limit set out in the   in aggregate.      Expected fees for year ending 30 Apr 2024 £ Fees as at 30 Apr 2023 £         *    Independent Director *   *     Annual Report on Remuneration       Directors’ Remuneration for the Year (audited)  the entire remuneration paid to the Directors. Name 2023 Fees £ 2023 Taxable benefits † £ 2023 Total £ 2022 Fees £ 2022 Taxable benefits † £ 2022 Total £          –  – – –      –  Professor Sir Nigel Shadbolt     –  KS Sternberg (Chair)     –       –  200,167 4,064 204,231 179,000 165 179,165 †   Governance Report 36 Annual Percentage Change in Remuneration This represents the annual percentage change in the fees paid to the Directors. Name % change from 2022 to 2023 % change from 2021 to 2022 % change from 2020 to 2021   3.3 –    – –   3.3  Professor Sir Nigel Shadbolt  3.3   3.3    *     * Thes  Cumulative years to 30 April 2015 2018 20212020 20232022 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 72 to 74). # See disclaimer on page 71. 2013 201720162014 2019 50 450 150 350 250 200 100 400 300 Performance Graph  Company Performance The following graph compares the share price total return  shareholders compared with the total shareholder return on a notional investment made up of shares in the component parts of     Approval    KS Sternberg Chairman Governance Report Directors’ Interests (audited)     Name Nature of interest Ordinary 5p shares held at 30 April 2023 Ordinary 5p shares held at 30 April 2022   – –   – –     Professor Sir Nigel Shadbolt  – – KS Sternberg        Statement of Voting at Annual General Meeting       were withheld. Relative Importance of Spend on Pay    2023 £’000 2022 £’000 Change %     Dividends paid to shareholders    The Monks Investment Trust PLC 37   and regulations.                              continue in business. The Directors are responsible for keeping adequate accounting       hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.    Statement that complies with that law and those regulations.            to the best of their knowledge:              — the Strategic Report includes a fair review of the development and performance of the business and the position of the  and uncertainties that it faces.  KS Sternberg Chairman  Statement of Directors’ Responsibilities in Respect of the Annual Report and the Financial Statements Governance Report 38 Opinion      reporting framework that has been applied in their preparation is            — have been prepared in accordance with the requirements  Basis for opinion       Independence     ethical responsibilities in accordance with these requirements.    Conclusions relating to going concern     to adopt the going concern basis of accounting included:       addressed those matters which we considered important.     statements were authorised for issue. In preparing the cash     the debt covenants as a result of a reduction in the value of         in the annual report in order to assess that the disclosures   reporting standards.           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    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 or ownership of the investment portfolio Risk of Incomplete or inaccurate revenue  special dividends as revenue or capital in the Income Statement Materiality   An Overview of the Scope of Our Audit Tailoring the Scope      the potential impact of climate change and changes in the business environment when assessing the level of work to be  engagement team which included our valuation specialists. Climate Change There has been increasing interest from stakeholders as to          misstated. Our audit effort in considering climate change was focused on   no further impact of climate change to be taken into account as the investments are valued based on market pricing as required  listed comparable companies or recent market transactions and    Financial Report Key Audit Matters    assessed risks of material misstatement (whether or not due to      and we do not provide a separate opinion on these matters. 40 Risk Our response to the risk Key observations communicated to the Audit Committee Incorrect valuation or ownership of the investment portfolio (as described on  Committee and as per the accounting  The valuation of the investment portfolio   quoted investments with an aggregate  and unquoted investments (including    The valuation of the assets held in the   return. Incorrect investment pricing or a failure to maintain proper legal title to the   valuation and the return generated for shareholders. The fair value of quoted investments is  the last traded price depending on the  investment is quoted.   review and appropriate challenge of the    consistent with the International Private    and the resultant impact on the unrealised     as an area of fraud risk as highlighted  We performed the following procedures:  and controls surrounding legal title and pricing of quoted  procedures in which we evaluated the design of controls.   pricing vendor and recalculated the investment valuations as          the audit team or our valuation specialists reviewed and challenged the valuations. This included:     the valuation methodologies and assumptions.    valuation approach and a follow up meeting to challenge              that have an impact on the fair market value of the  valuation is reasonable.      valuation process and requested further support for the      purchase cost per the accounting records and to the bank statements.       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,  special dividends as revenue or capital items in the Income Statement (per the      Included in total revenue was revenue received from special dividends of    There is a risk of incomplete or inaccurate recognition of revenue through the failure to recognise proper income entitlements  treatment.   income receivable in the form of special    area of fraud risk as highlighted below on  We have performed the following procedures:  and controls surrounding revenue recognition including the  procedures.        dividends had been recorded for a sample of investee  obtained from an independent data vendor.    the dividend rate to corresponding announcements made        above our testing threshold.          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.  Our Application of Materiality   the audit and in forming our audit opinion. Materiality The magnitude of an omission or misstatement that, individually   Materiality provides a basis for determining the nature and       performance. Performance Materiality The application of materiality at the individual account or  low level the probability that the aggregate of uncorrected and            threshold for the revenue column of the Income Statement of  Financial Report 42 Reporting Threshold       warranted reporting on qualitative grounds.   of other relevant qualitative considerations in forming our opinion. Other Information The other information comprises the information included in    the other information contained within the annual report.     thereon.          we conclude that there is a material misstatement of the other   Opinions on Other Matters Prescribed by the Companies Act 2006     the audit:       prepared in accordance with applicable legal requirements. Matters on Which we are Required to Report by Exception          adequate for our audit have not been received from branches    Remuneration Report to be audited are not in agreement       we require for our audit. Corporate Governance Statement       concluded that each of the following elements of the Corporate                    assessment of the emerging and principal risks set out  — The section of the annual report that describes the review of effectiveness of risk management and internal control     Financial Report The Monks Investment Trust PLC 43 Responsibilities of Directors        to fraud or error.    concern and using the going concern basis of accounting unless   Auditor’s Responsibilities for the Audit of the Financial Statements          the economic decisions of users taken on the basis of these  Explanation as to What Extent the Audit was Considered Capable of Detecting Irregularities, Including Fraud    fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from      detection of fraud rests with both those charged with governance                     to the incomplete or inaccurate revenue recognition through   fraud risk with respect to the incorrect valuation of the unquoted investments and the resultant impact on unrealised   response to the fraud risks and other areas of audit focus.    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     website at frc.org.uk/auditorsresponsibilities. This description  Other Matters we are Required to Address      of total uninterrupted engagement including previous   — The audit opinion is consistent with the additional report  Use of Our Report         or for the opinions we have formed.     Financial Report 44 Income Statement For the year ended 30 April Notes 2023 Revenue £’000 2023 Capital £’000 2023 Total £’000 2022 Revenue £’000 2022 Capital £’000 2022 Total £’000 Losses on investments 9 –  (78,421) –  (631,829)   –  293 –  (308) Income   – 30,211  – 27,811 Investment management fee 3  – (8,878)  – (10,465)    – (1,833)  – (1,888)  and taxation   (58,628)   (616,679)    – (7,225)  – (5,298) Net return on ordinary activities before taxation   (65,853)   (621,977)     (1,991)   (1,223) Net return on ordinary activities after taxation 10,714 (78,558) (67,844) 8,644 (631,844) (623,200) Net return per ordinary share  4.70p (34.47p) (29.77p) 3.67p (268.58p) (264.91p) Note:    3.15p 2.35p       Financial Report The Monks Investment Trust PLC 45 Balance Sheet  As at 30 April Notes 2023 £’000 2023 £’000 2022 £’000 2022 £’000 Fixed assets  9   Current assets Debtors    Cash and cash equivalents      Creditors     Net current liabilities   Total assets less current liabilities   Creditors and Provisions  Loan notes          2,442,880 2,479,164 Capital and reserves Share capital    Share premium account    Capital redemption reserve    Capital reserve    Revenue reserve    Shareholders’ funds  2,442,880 2,479,164 Shareholders’ funds per ordinary share  1,058.5p 1,089.0p (borrowings at book value)   KS Sternberg Chairman Financial Report 46 Statement of Changes in Equity For the year ended 30 April 2023 Notes Share capital £’000 Share premium account £’000 Capital redemption reserve £’000 Capital reserve £’000 Revenue reserve £’000 Shareholders’ funds £’000       2,479,164  – – –   (67,844)   – – –  – (135,221)     –  – 172,048   – – – –  (5,267) Shareholders’ funds at 30 April 2023 12,659 433,714 8,700 1,915,385 72,422 2,442,880 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       3,204,980  – – –   (623,200)   – – –  – (97,887)   – – – –  (4,729) Shareholders’ funds at 30 April 2022 11,823 262,183 8,700 2,129,483 66,975 2,479,164  Financial Report The Monks Investment Trust PLC 47  Cash Flow Statement For the year ended 30 April Notes 2023 £’000 2023 £’000 2022 £’000 2022 £’000     Net losses on investments                  Decrease in creditors   Cash from operations *   Interest paid          Disposals of investments                  – Debenture repaid  –  –     Increase/(decrease) in cash and cash equivalents         Cash and cash equivalents at 30 April 42,191 35,879 *  Financial Report 48     as an investment trust. 1 Principal Accounting Policies    of the accounting policies set out below which are unchanged from      (a) Basis of Accounting     the assumption that approval as an investment trust under section         concern status is affected.                        the principal and emerging risks and other matters set out in the    which is a period of at least twelve months from the date of approval             items of a revenue and capital nature has been presented in the Income Statement.   considered the impact of climate change risk as a principal risk       climate change risk.       (b) Financial Instruments   contractual provisions of the instrument. (c) Accounting Estimates and Judgements   affect the reported amounts of assets and liabilities at the     Estimates        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  Comparable companies are chosen on the basis of their             to assist with the valuation validation or the application of       Notes to the Financial Statements Financial Report The Monks Investment Trust PLC 49   methods where possible to improve the robustness of the     of fair values. The risk of an over or under estimation of fair values is greater when methodologies are applied using more  Judgements      (ii) the fair valuation of the unlisted investments.         appropriate following detailed review and challenge. The    (d) Investments          recognised in the Income Statement as capital items. The fair value of listed investments is either the bid price or the  on which the investment is listed. The fair value of suspended investments and unlisted investments in listed companies is  circumstances of the instrument in question. Private Company Investments   Directors following a detailed review and appropriate challenge of                the valuation technique applied. The valuation approach recognises    appropriate starting point for estimating fair value at subsequent   including changes in the market or performance of the investee                  — where there is an indication of a change in fair value as   (e) Cash and Cash Equivalents     (f) Income      income includes distributions from Collective Investment  are treated as capital items. Special dividends are treated as revenue or capital items depending on the facts of each particular case.   of the cash dividend declared is credited to the revenue  over the amount of the cash dividend foregone is recognised as capital.       (iv) Interest receivable on deposits is recognised on an accruals basis. Financial Report 50 (g) Expenses     (transaction costs) which are charged to capital. Transaction costs are detailed in note 9    (h) Borrowings and Finance Costs       for on an accruals basis using the effective interest rate method and are allocated to revenue in the Income Statement. (i) Taxation     which is charged to the revenue accounts where it relates to income received and to capital where it relates to items of a         (j) Dividend Distributions     shareholders. (k) Foreign Currencies Transactions involving foreign currencies are converted at the rate     subsequent to the date of the transaction is included as an  revenue as appropriate. (l) Share Premium Account      repurchase the shares. (m) Capital Redemption Reserve    into the capital redemption reserve. (n) Capital Reserve    capital nature are dealt with in this reserve. Purchases of the    purchase price of those shares and transferred to the capital reserve. (o) Revenue Reserve    dividend. (p) Single Segment Reporting     Financial Report The Monks Investment Trust PLC 51 2 Income 2023 £’000 2022 £’000 Income from investments    Overseas dividends   Other Income   Deposit Interest   Total Income 30,211 27,811 Total income comprises:       30,211 27,811  3 Investment Management Fee 2023 £’000 2022 £’000 Investment management fee 8,878 10,465            4 Other Administrative Expenses 2023 £’000 2022 £’000     *       †    † –  1,833 1,888 *    run the programme. †    Financial Report 52 5 Finance Costs of Borrowings 2023 £’000 2022 £’000    Debenture stocks   Loan notes   7,225 5,298 6 Tax on Ordinary Activities 2023 Revenue £’000 2023 Capital £’000 2023 Total £’000 2022 Revenue £’000 2022 Capital £’000 2022 Total £’000   –   –   –   –   1,561 430 1,991 1,516 (293) 1,223 2023 £’000 2022 £’000                         1,561 1,516        430 (293)  1,991 1,223   Factors that may Affect Future Tax Charges     Financial Report The Monks Investment Trust PLC 53 7 Net Return per Ordinary Share 2023 Revenue 2023 Capital 2023 Total 2022 Revenue 2022 Capital 2022 Total  4.70p (34.47p) (29.77p) 3.67p (268.58p) (264.91p)       8 Ordinary Dividends 2023 2022 2023 £’000 2022 £’000 Amounts recognised as distributions in the year:         2023 2022 2023 £’000 2022 £’000       9 Fixed Assets – Investments As at 30 April 2023 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000 Listed and suspended equities   – 2,519,990  – –  54,418  2,466,713 53,277 54,418 2,574,408 As at 30 April 2022 Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000 Listed and suspended equities    2,605,406  – –  56,609  2,479,464 120,306 62,245 2,662,015       Financial Report 54 9 Fixed Assets – Investments (continued) Fair Value Hierarchy    to the fair value measurement. Level 1 Level 2 Level 3 – using inputs that are unobservable (for which market data is unavailable).    2023 Listed securities £’000 2023 Unlisted securities * £’000 2023 Total securities £’000 2022 Total securities £’000            2,605,406 56,609 2,662,015 3,238,130  Purchases at cost      †  –  – Sales proceeds received  –   Losses on investments      2,519,990 54,418 2,574,408 2,662,015            2,519,990 54,418 2,574,408 2,662,015 * Includes holdings in ordinary shares, preference shares and contingent value rights. † See notes 13 and 14 for further detail on the Scheme of Reconstruction and issuance of new shares in the Company to former shareholders of The Independent Investment Trust PLC (IIT) in return for cash and equities from the former IIT portfolio.      2023 £’000 2022 £’000 Net (losses)/gains on investments:    Changes in investment holding gains   (78,421) (631,829)       2023 Shares held 2023 Value £’000 2023 % of Shares held 2022 Shares held 2022 Value £’000 2022 % of Shares held        Financial Report The Monks Investment Trust PLC 55 10 Debtors 2023 £’000 2022 £’000 Amounts falling due within one year:    Investment sales awaiting settlement   Share issuance proceeds awaiting settlement         20,441 8,072   11 Creditors – Amounts falling due within one year 2023 £’000 2022 £’000     3    –  Investment purchases awaiting settlement       –  Other creditors and accruals   93,142 126,257   Borrowing Facilities         million .  – none). Debenture Stock  3    Financial Report 56 12 Creditors and Provisions – Amounts falling due after more than one year Repayment date Nominal rate Effective rate 2023 £’000 2022 £’000             99,858 99,853    101,018 100,545 Unsecured Loan Notes   Provision for Tax Liability     13 Share Capital 2023 Number 2023 £’000 2022 Number 2022 £’000           Total 253,171,460 12,659 236,453,859 11,823            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       2,479,164 Losses on investments – – –  – (78,421)  – – –  – 293  notional capital gains – – –  – (430)    – – – –  10,714  – – –  – (135,221)    –  – 172,048  – – – –  (5,267)  12,659 433,714 8,700 1,915,385 72,422 2,442,880 Share capital £’000 Share premium account £’000 Capital redemption reserve £’000 Capital reserve £’000 Revenue reserve £’000 Shareholders’ funds £’000       3,204,980  – – –  – (631,829)  – – –  – (308)  notional capital gains – – –  – 293    – – – –  8,644  – – –  – (97,887)  – – – –  (4,729)  11,823 262,183 8,700 2,129,483 66,975 2,479,164          15 Shareholders’ Funds Per Ordinary Share 2023 2022             Financial Report 58 16 Analysis of Change in Net Debt At 1 May 2022 £’000 Cash flows £’000 Other non-cash changes £’000 Exchange movement £’000 At 30 April 2023 £’000 Cash at bank and in hand   –     – – –  Debenture stocks    – – Loan notes  –  –  (178,947) 46,019 (32) 293 (132,667) 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   –    –  – –  Debenture stocks  – (33) –  Loan notes  –  –  (31,065) (147,536) (38) (308) (178,947) 17 Contingent Liabilities, Guarantees and Financial Commitments   18 Transactions with Related Parties and the Managers and Secretaries         19 Financial Instruments            Market Risk    individual investment decisions and monitor the overall level of market risk across the investment portfolio on an ongoing basis.   Financial Report The Monks Investment Trust PLC 59 19 Financial Instruments (continued) Currency Risk                is shown below. At 30 April 2023 Investments £’000 Cash and cash equivalents £’000 Loans, loan notes and debentures £’000 Other debtors and creditors * £’000 Net exposure £’000    –     – –     – –   Other overseas currencies   –      –   Sterling      2,574,408 42,191 (174,858) 1,139 2,442,880  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   – –     – –     – –   Other overseas currencies   –      –   Sterling     10,955 2,662,015 35,879 (214,826) (3,904) 2,479,164  Currency Risk Sensitivity     2023 £’000 2022 £’000          Other overseas currencies   115,737 123,410 Financial Report 60 19 Financial Instruments (continued) Interest Rate Risk                      Financial Assets  comprising its cash and short term deposits.    Financial Liabilities      2023 £’000 2022 £’000       174,858 214,826   2023 Within 1 year £’000 2023 Between 1 and 5 years £’000 2023 More than 5 years £’000 2022 Within 1 year £’000 2022 Between 1 and 5 years £’000 2022 More than 5 years £’000   –   –  Interest on loans and debentures       78,950 7,296 141,964 120,327 7,296 143,788 Interest Rate Risk Sensitivity     Other Price Risk     Financial Report The Monks Investment Trust PLC 61 19 Financial instruments (continued) Other price risk sensitivity     had an equal but opposite effect.         As at 30 April 2023 Significant unobservable inputs Valuation approach Fair value as at 30 April 2023 £’000 Key unobservable inputs Other unobservable inputs† Range Sensitivity % Sensitivity to changes in significant unobservable inputs Market approach using comparable traded multiples   multiple #  and Discounts  g       the fair value would   If the transaction  discount is changed      performance  Selection of comparable companies and relevant indices ¶    If input comparable   the fair value would   Sum of the parts ^   multiple #     and input comparable   the fair value would   Recent transaction price      *  †  #  ¶  ^   valuations. Financial Report 62 19 Financial instruments (continued) Other price risk sensitivity (continued) As at 30 April 2022 Significant unobservable inputs Valuation approach Fair value as at 30 April 2022 £’000 Key unobservable inputs Other unobservable inputs † Range Sensitivity % Sensitivity to changes in significant unobservable inputs Market approach using comparable trading multiples   multiple # Discount for lack of   e         the fair value would   If the transaction  discount is changed  value would change    performance  Selection of comparable companies and relevant indices ¶    If input comparable   the fair value would   Recent transaction price       Sum of the parts ^   multiple # Selection of comparable companies ¶      and input comparable   the fair value would   †  #  ¶  ^  overall valuation is the summation of these separate valuations. *     (a) Application of valuation basis       Financial Report The Monks Investment Trust PLC 63 19 Financial Instruments (continued) (b) Probability estimation of liquidation events       (c) Selection of comparable companies       (d) Estimated sustainable earnings      (e) Application of illiquidity discount    (f) Selection of appropriate benchmarks   (g) Valuation premium and discount     (h) Execution risk    deal has been assessed and legal documentation received. Liquidity Risk      Financial Report 64 19 Financial Instruments (continued) Credit Risk  suffering a loss. This risk is managed as follows:                  Credit Risk Exposure  2023 £’000 2022 £’000 Cash and cash equivalents   Debtors   62,632 43,951  Fair Value of Financial Assets and Financial Liabilities    3    of corporate debt with similar rates and maturities. 2023 Par value £’000 2023 Book value £’000 2023 Fair value £’000 2022 Par value £’000 2022 Book value £’000 2022 Fair value £’000         3     – – –                  175,000 174,858 125,404 215,000 214,826 190,308 20 Capital Management        are set out in note  .   Financial Report The Monks Investment Trust PLC 65  Meeting of The Monks Investment Trust PLC will be held at the   purposes:                                        grant of rights in respect of shares with an aggregate nominal 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         intend to attend in person). Shareholders are recommended to                agreement which would or might require Securities to be  the Directors shall be entitled to allot or grant Securities in     as special resolutions:                      Notice of Annual General Meeting Shareholder Information 66           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   Shareholder Information The Monks Investment Trust PLC 67  sponsor or voting service provider(s) take(s) such action as                     shareholders must be registered in the Register of Members    of Members after the relevant deadline shall be disregarded in  meeting.              to Nominated Persons. The rights described in those notes      and is intended to be moved at that meeting. The conditions                  (a matter of business). The request must have been received  The conditions are that the matter of business must not be      the grounds for the request. Members seeking to do this should        conduct of the audit. Such requests must be made in writing     members who have a right to vote on the resolution to which  right to vote on the resolution to which the requests relate      trustenquiries@bailliegifford.com.    website at monksinvestmenttrust.co.uk.      relation to the same shares.              Shareholder Information 68 Company History             Monks is an Investment Trust. Investment Trusts Offer Investors the Following:     and   realised within its portfolio although investors are still liable for  How to Invest     number of companies offering real time online dealing services – monksinvestmenttrust.co.uk. Sources of Further Information on the Company   monksinvestmenttrust.co.uk    request.      Ticker MNKS     Key Dates     Capital Gains Tax    Analysis of Shareholders at 30 April Name 2023 Number 2023 % 2022 Number 2022 % Institutions     Intermediaries     Individuals     Marketmakers     230,796,666 100.0 227,645,309 100.0 Share Register Enquiries Computershare Investor Services PLC maintains the share register              Transfer forms.  at investorcentre.co.uk              — use online dealing services.  investorcentre.co.uk   Further Shareholder Information Shareholder Information The Monks Investment Trust PLC 69 Dividend Reinvestment Plan Computershare operate a Dividend Reinvestment Plan which can   log on to investorcentre.co.uk and follow the instructions or  Electronic Proxy Voting  eproxyappointment.com.   CREST Proxy Voting     Risks Past performance is not a guide to future performance.   get back the amount invested. Monks invests in overseas securities. Changes in the rates of      price Monks might receive upon their sale.    greater.          the amount of this loss.   its own shares.   derivatives.    would be reduced.     of loss than those bought at a discount.           monksinvestmenttrust.co.uk    advice.  The Monks Investment Trust PLC. The information and opinions    Shareholder Information 70 Shareholder Information Sustainable Finance Disclosure Regulation (‘SFDR’)             sustainable competitive advantages in their marketplace. To do          bailliegifford.com). Taxonomy Regulation          sustainable economic activities.   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    shareholders and corporate entities. Automatic Exchange of Information   for the purposes of collecting this information.   holders gov.uk/government/publications/exchange-of- information-account-holders.     bailliegifford.com or on request (see contact details on the back cover). The numerical  are also available at bailliegifford.com. Alternative Investment Fund Managers (AIFM) Regulations    Leverage Gross method Commitment method       The Monks Investment Trust PLC 71 Monks on the Web   monksinvestmenttrust.co.uk  Trust Magazine Trust     Monks. Trust  Trust bailliegifford.com/trust. Suggestions and Questions      Monks. Client Relations Team Contact Details     Please note that Baillie Gifford is not permitted to give financial advice. If you would like advice please ask an authorised intermediary. 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No Provider has            information or materials contained herein. 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Shareholders’ Funds  Net Asset Value (APM)   Net Asset Value (Borrowings at Par Value) (APM)   is provided below. 2023 £’000 2023 per share 2022 £’000 2022 per share           Less: par value of borrowings     Net asset value (borrowings at par value) 2,442,738 1,058.5p 2,478,990 1,089.0p   Net Asset Value (Borrowings at Fair Value) (APM)    provided below. 2023 £’000 2023 per share 2022 £’000 2022 per share           Less: fair value of borrowings     Net asset value (borrowings at fair value) 2,492,334 1,080.0p 2,503,682 1,099.8p   Glossary of Terms and Alternative Performance Measures (APM) Shareholder Information The Monks Investment Trust PLC 73 Discount/Premium (APM)    this situation is called a premium. 2023 2022  a    b   Closing share price c    Discount to NAV with borrowings at par  (7.9%) (3.5%) Discount to NAV with borrowings at fair value  (9.7%) (4.4%) Net Liquid Assets  Active Share (APM)    Unlisted, Unquoted and Private Company Investments  Total Return (APM)  below. 2023 NAV (par) 2023 NAV (fair) 2023 Share Price 2022 NAV (par) 2022 NAV (fair) 2022 Share Price  a        * b                d       Total return  (2.6%) (1.6%) (7.0%) (19.5%) (18.9%) (24.6%) *   Ongoing Charges (APM)   2023 2022 Investment management fee       a    b   Ongoing charges  0.43% 0.40% Shareholder Information 74 Gearing (APM)        (a  c in the table below).    c in the table below).   *. *  2023 2022  a   Less: cash and cash equivalents   Less: sales for subsequent settlement       b    c   Gross (potential) gearing  7.2% 8.7% Net (invested) gearing  5.3% 7.3% Leverage (APM)       Compound Annual Return (APM)   Treasury Shares   rights attaching to them. Turnover (APM)   Shareholder Information Directors Chairman: KS Sternberg CM Boyle Dr D Chaya BJ Richards Professor Sir Nigel Shadbolt JJ Tigue  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 160 Queen Victoria Street London EC4V 4LA Company Details monksinvestmenttrust.co.uk Incorporated in England and Wales Company Registration No. 00236964 ISIN GB0030517261 Sedol 3051726 Ticker MNKS  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