Fund Profile

Disclaimer

Disclosure – Non-substantive Research

This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. With this commentary, Kepler Partners LLP does not intend to influence your investment firm's behaviour. 

Overview
Monks offers a highly active approach to investing in global equities...
Overview

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

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

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

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

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

Kepler View

Monks has plenty of characteristics that make it an attractive vehicle for investors looking for exposure to exciting growth companies across the globe.

Diversification of risk is a key attribute of the portfolio, illustrated by the high number of holdings – currently 132 – and the unique approach to looking at them, based on conviction and growth characteristics. We believe this is particularly attractive in the current volatile environment, where even a tweet can cause waves across the markets.

Charles Plowden, supported by Spencer Adair and Malcolm MacColl, has a proven track record and the company’s performance has been impressive over the short and long term. Clearly the change in strategy in 2015 has had a lot to do with this, and the trust sits in the top third of trusts for NAV total returns over the past six months, one year and three years. This has, however, now been reflected in the trust’s premium, which currently sits at 4% relative to a weighted average discount of 0.2% across the Global sector. Should the trust slip to a discount, we believe it to be an attractive opportunity for an entry point.

Bull Bear
Well diversified, growth-orientated portfolio
Trading on a premium
Strong long and short-term returns relative to the benchmark and peers High volatility
Continue to Portfolio

Fund History

17 Jun 2022 Baillie Gifford Monks Investment Trust: Growth investing in a changing world
In this recent webinar, manager of the Monks Investment Trust, Spencer Adair, outlines how the trust seeks to harness growth in an ever-changing world...
06 May 2022 Casting the net wider
Growth stocks are becoming more diverse, meaning stock-pickers need to embrace the unfamiliar, Spencer Adair, manager of The Monks Investment Trust, tells Ian McGugan...
12 Nov 2021 Virtuous cycles
From Ryanair to Rio Tinto, firms that suffer through tough times often resurface as big long-term winners. Spencer Adair, manager of The Monks Investment Trust, reveals what turns these stocks into comeback kings
08 Oct 2021 Baillie Gifford Monks Investment Trust - Manager Insights
Baillie Gifford investment manager Spencer Adair and client director John Carnegie review the portfolio’s performance and hone in on Tesla, Moderna and Sea, as well as its Chinese holdings...
19 Aug 2021 Pandemic immunity
We ask which global equity trusts have outperformed through the different stages of the pandemic…
05 Feb 2020 The best form of defence
We look at the continued rise of passive funds, and find out how investment trust managers are countering it...
23 Dec 2019 Insuring Asia
The extraordinary expansion of Asia’s middle class is turbocharging demand for products that provide a sense of security. Charles Plowden, manager of Monks Investment Trust, tells Colin Donald why the region’s life insurance giants are well-placed to reap the rewards...
23 Oct 2019 Sail away: the best trusts to escape the UK
We look under the hoods of Global sector trusts to see which offer the best diversification prospects for UK investors...
24 Jul 2019 Fund Analysis
Monks offers a highly active approach to investing in global equities...
13 Dec 2018 Fund Analysis
Diversification is a key attribute of the portfolio, with the managers focusing on the type of growth they anticipate each company delivering...
27 Sep 2017 Monks travels the Silk Road
The managers explain why China's grand ambitions for trade are an immense opportunity...
25 Aug 2017 Fund Analysis
A global equity portfolio which has seen performance improve markedly under the stewardship of a new investment team...
22 Feb 2017 Into the wilderness
As the West heads deeper into uncharted territory, we examine the way in which global fund managers are positioning in the face of vertiginous valuations and seismic political change...
21 Feb 2017 Fund Analysis
26 Jan 2016 Top picks from four leading brokers for 2016
We examine the key recommendations for individual trusts from our panel of the City’s leading analysts.
08 Sep 2015 Fidelity Special Values smashes it
Fidelity Special Values, one of the five ‘contrarian plays on big discounts’ we highlighted in April, has come in sharply since we tipped it for greatness.
05 Jun 2015 On the rebound
Contrarian investment ideas on big discounts.
View all

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.