LONDON (Alliance News) - Monks Investment Trust PLC, managed by Edinburgh-based money manager Baillie Gifford with the aim of generating capital growth for shareholders, on Wednesday said its board and managers believe the investment company's portfolio is set to grow at an above average rate.
In a statement, the trust said the growth expected by the directors and the manager should be delivered even in an environment of "only modest" economic expansion. Monks' portfolio of investments has "broad exposure" to the themes of Asian consumption, underlying growth of the US economy and technology.
The guidance came as the trust reported a net asset value total return was minus 0.4% in the year ended April 30, compared to a total return of 0.5% for the FTSE World Index in sterling terms. The share price total return for the same period was minus 1.3%, after a "slight" widening of the discount at which the stock traded to net asset value.
A final dividend of 1.00 pence, versus 3.45p a year earlier, made for a total dividend for the year of 1.5p, down from 3.95p a year earlier.
"During the year to April Monks net asset value, with borrowings at fair value, returned minus 0.4%, with the second half of the period being a challenging environment with a number of our holdings suffering amidst worries about global growth," Charles Plowden, Spencer Adair, and Malcolm MacColl of Baillie Gifford said in a report.
"Particularly affected were companies with exposure to Asian consumption and those which had performed strongly earlier in the year. Not surprisingly, the few energy companies the portfolio did own, such as Ultra Petroleum and Inpex, performed poorly and both have been sold," Plowden, Adair, and MacColl said.
Shares in Monks were up 0.10p at 424.40p shortly after the market open in London on Wednesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Monks Inv (MNKS)