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(Alliance News) - Monks Investment Trust PLC on Tuesday reported good growth in the first half of its financial year amid three main changes to its investment portfolio which will make it more diverse.
The investment trust, which focuses on long-term investment growth from equities, reported a net asset value per share at October 31 of 1,107.3 pence, up from 875.6p on March 31.
Net return before tax for the six months ended October 31 was GBP518.6 million, soaring from GBP30.4 million a year prior.
The FTSE 250-listed company said: "Monks retains a tried and tested investment approach which centres on bottom-up stock picking and an ability to invest in growth companies anywhere in the world. Indeed, the manager undertakes regular thematic reviews of the Monks portfolio, the most recent of which highlights a proliferating and reassuringly diverse range of underlying exposures.
"This established approach has supported a calm and measured response to the developments of recent months and has allowed Monks to make modest changes to position itself for future growth. Inherent in this is a desire to invest in companies run by management teams who are sensible stewards of capital and are capable of navigating and adapting to what the future brings."
Monks said there were three main areas of change in its portfolio during the half year. The first was a meaningful investment in "new frontiers" of the internet, such as Wayfair LLC in online furniture sales and Chinese music streaming and social media platform Tencent Music Entertainment Group.
The second change involved the diversification of its investments into commodities businesses, such as Rio Tinto PLC, which "offer alternative drivers of future growth for the portfolio".
Finally, Monks noted that it has made a handful of investments in companies where near-term demand looks bleak, such as online travel agency Booking Holdings Inc, but where Monks believes that company is in a "position of strength relative to peers".
Monks declared no interim dividend. It noted that it normally pays a single final dividend after its annual general meeting, reflecting the company's focus on capital growth.
Monks shares were up 0.9% at 1,277.24 pence each in London on Tuesday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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