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LONDON (Alliance News) - The Monks Investment Trust PLC, which is managed by Edinburgh-based Baillie Gifford & Co, Thursday said that performance in its last financial year was weaker than that of its comparative index.
Since March 27, management of the trust's portfolio has been transferred to Charles Plowden, supported by Spencer Adair and Malcolm MacColl, who are all part of Baillie Gifford's 'Global Alpha' investment team, following a review of performance and portfolio management arrangements.
The trust, which prioritises capital growth over income and dividends, said its net asset value total return, with borrowings at fair value, was 13.0% in the year ended April 30, while its share price total return was 18.8%, comparing against the 18.0% total return for the FTSE World Index over the same period.
"Geographic allocation was a notable detractor to relative performance over the financial year, accounting for 3.6 percentage points of underperformance. Good stock selection in Emerging Markets and Japan was offset by poor relative returns in the UK, North America and Europe (ex UK). The relative overweight to the UK market was also unhelpful, as was our Oil and Gas exposure, with Enquest, Seadrill, North Atlantic Drilling and IGas Energy in particular performing poorly," Chairman James Ferguson said in a statement.
"While cognisant of the macroeconomic environment and the impact that market sentiment might have on individual stocks in the short term, it will be company fundamentals that drive longer term portfolio returns. The Board is confident that the portfolio will benefit from this approach," the chairman said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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