Interim Management Statement

RNS Number : 1152K

Monks Investment Trust PLC

15 August 2012

 



 The Monks Investment Trust PLC

Interim Management Statement - 3 Months to 31 July 2012

Monks' objective is to invest internationally to achieve capital growth, which takes priority over income and dividends.  Monks' policy is to invest principally in a portfolio of international quoted equities. The Company is prepared to move freely between different markets as opportunities arise. Asset classes other than equities may be purchased from time to time including fixed interest holdings, unquoted securities and derivatives. The equity portfolio may be relatively concentrated for a global fund.

Review of the Period		¾  Over the period, the Company's net asset value total return, with borrowings deducted at fair value, was -6.4%, and the share price total return was -6.0% while the FTSE World Index in sterling terms returned 0.7%. ¾  At the Annual General Meeting held on 7 August 2012 all resolutions were passed, including the approval of a final dividend of 3.45p per share which was paid to shareholders on 13 August 2012. ¾  During the period, 481,000 shares were repurchased at a cost of £1.5 million. ¾  The Company's £40m 11% debenture stock 2012 was repaid on 1 June. The Company also closed out its £40m 30 year interest rate swap agreement during the period. ¾  Partial sales of Eldorado Gold, Quanta Computer and MercadoLibre saw them drop out of the Top Ten Equity Holdings, while Seadrill and Aggreko remained in the Top Ten despite partial sales. The other changes to the Top Ten constituents were due to market movements.
Geographical Analysis				% of total assets				Effective exposure %*
				At 31/07/12	At 30/04/12			At 31/07/12				At 30/04/12
		United Kingdom		24.8	24.6			21.1				21.6
		North America		24.8	21.2			`29.7				25.4
		Emerging Markets		20.6	23.1			19.7				19.2
		Continental Europe		12.5	13.4			7.0				8.8
		Japan		6.1	6.4			9.0				11.4
		Bonds		6.0	6.3			7.2				7.6
		Developed Asia		1.6	1.5			2.0				1.8
		Net Liquid Assets		3.6	3.5			4.3				4.2
		Total		100.0	100.0			100.0				100.0
		*  The effective exposure takes into account the exposure of derivative holdings which may differ substantially from their market value. The Company's derivatives holdings include sales of index futures and purchases of index call options.
Total Return Performance (capital and income)			%
			3 Months			1 Year			3 Years		5 Years
		Share Price	-6.0			-6.4			30.7		4.8
		NAV (at fair)	-6.4			-7.8			32.0		6.6
		Comparative Index*	0.7			2.0			36.3		20.3
		*  Comparative Index: FTSE World Index (in sterling terms). Source: Morningstar/Thomson Reuters Datastream. Past performance is not a guide to future performance
Top Ten Equity Holdings‡ (as a % of total assets)									31/07/12 %		30/04/12 %
		IP Group							3.3		3.0
		Seadrill							2.5		2.6
		Aggreko							2.3		2.8
		The Biotech Growth Trust							1.8		1.4
		Odontoprev							1.7		1.6
		Samsung Electronics							1.6		1.5
		TJX							1.6		1.3
		IHS							1.4		1.1
		Petrofac							1.4		1.4
		Kone							1.4		1.2
		Total							19.0		17.9
		‡      TJX, IHS and Kone entered the Top Ten Equity Holdings and Eldorado Gold, Quanta Computer and MercadoLibre dropped out.
General Information							31/07/12			30/04/12
		Total assets (before deduction of  borrowings)					£1,037.2m			£1,149.4m
		Total borrowings (at fair value)					£130.2m			£168.9m
		Total borrowings (at par)					£120.0m			£160.0m
		Net asset value per share (after deducting borrowings at fair value)†					354.8p			382.8p
		Net asset value per share (after deducting borrowings at par)†					358.8p			386.3p
		Share price					314.9p			338.5p
		Discount (borrowings at fair value)					11.2%			11.6%
		Discount (borrowings at par)					12.2%			12.4%
		Effective gearing (taking into account sales of equity index futures and purchase of equity index call options, borrowings at fair value)					(9%)			(6%)
		†      These figures have been calculated using the AIC cum income basis (includes current financial year retained income).
		This interim management statement and up to date NAV and Share Price information are available at www.monksinvestmenttrust.co.uk‡ ‡      Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement. For further information, contact: Robert O'Riordan  0131 275 3181 [e-mail]

 

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