Interim Management Statement

RNS Number : 0485I

Monks Investment Trust PLC

03 March 2010

 



THE MONKS INVESTMENT TRUST PLC

Interim Management Statement - 3 months to 31 January 2010

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

·	Over the period, the Company's net asset value (NAV) increased by 5.21% compared to a rise in the FTSE World Index of 4.65%, while the share price increased by 3.52%. All figures are total return (capital and income).
·	The interim dividend of 0.5p per share was paid on 29 January 2010 to shareholders on the register on 8 January 2010.
·	Petrobras and Goldman Sachs dropped out of the Top Ten Equity holdings following partial sales. Other changes to the Top 10 were due to market movements.
·	During the period, the bond weighting was reduced due to net sales of £32.3m.
·	To lock in to what are seen as low levels of long-term interest rates, the Company took out a £40m 30 year interest rate swap at 4.2025% shortly before the period end. Subsequent to the period end, the Company entered into a new £40m one year variable rate loan facility at 3 month LIBOR plus 1.35% which, at the date of this announcement, takes the Company's potential gearing with borrowings at fair value to around 13.7% (12.8% with borrowings at par value).
Geographical Analysis of Total Assets					Top Ten Equity Holdings
Region		% of total assets at 31/01/10	% of total assets at 31/10/09		Name	% of total assets at 31/01/10	% of total assets at 31/10/09
North America		23.9	21.9		OGX	5.0	4.5
Asia Pacific		16.0	17.2		Baillie Gifford Pacific Fund	4.6	5.1
Continental Europe		16.6	15.7		McDonalds	1.7	1.6
United Kingdom		12.2	9.4		Aggreko	1.7	1.5
Japan		3.2	4.2		Mediatek	1.3	1.2
Other Emerging Markets		19.3	18.0		Healthspring	1.2	1.0
Bonds		7.5	12.6		Seadrill	1.2	1.1
Net liquid assets		1.3	1.0		Dragon Oil	1.2	1.3
					Petrofac	1.2	1.2
					Transocean	1.2	1.2
Total		100.0	100.0		Total	20.3	19.7

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	3.52	26.71	2.40	56.47
NAV (Par)	5.21	36.84	5.64	54.20
Comparative Index	4.65	26.79	2.26	37.52

Source: Thomson Financial Datastream; Comparative Index is FTSE World Index (sterling terms).

Past performance is not a guide to future performance

General Information
	31/01/10	31/10/09
Share Price	274.7p	265.8p
Total assets (before deduction of  borrowings)*	£935.9m	£899.8m
Total borrowings (at fair value)	£88.3m†	£90.2m
Net asset value per share (after deducting borrowings at fair value)*	323.7p	308.1p
Discount (borrowings at fair value)*	15.1%	13.7%
Potential Gearing (borrowings at fair value)	10.4%†	11.1%
Gearing less cash (borrowings at fair value)	9.0%	9.7%
Gearing less cash and bonds (borrowings at fair value)	0.6%	-4.2%
Total borrowings (at par)	£80.0m	£80.0m
Net asset value per share (after deducting borrowings at par)*	326.8p	312.0p
Discount (borrowings at par)*	15.9%	14.8%
Potential Gearing (borrowings at par)	9.3%†	9.8%
Gearing less cash (borrowings at par)	7.9%	8.3%
Gearing less cash and bonds (borrowings at par)	-0.3%	-5.4%

*These figures have been calculated using the AIC cum income basis (includes current financial year retained income).

† Subsequent to the period end, the Company entered into a new £40m one year variable rate loan facility which, at the date of this announcement, takes the Company's potential gearing with borrowings at fair value to around 13.7% (12.8% with borrowings at par value).

This interim management statement and up to date NAV and share price information are available on the Managers' website www.monksinvestmenttrust.co.uk

Baillie Gifford & Co

Company Secretaries

3 March 2010

For further information contact:-  Robert O'Riordan on 0131 275 3181

 

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