Fact sheet: Monks IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
GLOBAL GROWTH
Sector
IT Global
Fund type
Investment Trust
Primary aim
GROWTH
Why Money Observer Rates Monks IT

Rated Fund 2014, 2017-2018. Backs companies with above-average earnings growth

Manager Charles Plowden and his two deputies, Malcolm MacColl and Spencer Adair, took over this trust in 2015, since when performance has shot forward. The trio abandoned the cautious approach that had previously been adopted and started increasing the trust's borrowing to take advantage of opportunities. Its gearing currently stands at 6 per cent out of a maximum 7 per cent.

The team's core belief is that a company's share price ultimately follows its earnings. They therefore look to invest in companies that offer the prospect of sustainable above-average earnings growth. Instead of poring over companies' financial statements, they focus on understanding where a company's competitive advantage lies and whether this edge is sustainable.

They take a long-term approach, expecting to hold stocks for around five years. Indeed, the fund's annualised turnover was a low 14 per cent during the financial year ending April 2017.

They believe their long-term investment perspective allows them to capture more volatile growth from companies in a range of industries that other growth investors may overlook. The portfolio typically contains more than 100 holdings.

Morningstar research analyst Fatima Khizou believes the considerable improvement in performance under the new management team is ムlikely to continue, and investors who stay for the long haul should be well-rewarded'. Furthermore, ongoing charges at 0.59 per cent are among the cheapest within global equity funds (both open and closed-ended), contributing further to her positive view.

In the middle of 2016, the shares were on a 15 per cent discount to net asset value. This has narrowed considerably to a small premium, but those who time their entry carefully could still buy at a discount.<\p>

3 Year Performance
Fund Performance74.9%
Average of Rated Funds Group50.3%
Sector Performance46.9%
Fund information
Fund name
Monks Investment Trust PLC
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund managers
  • Malcolm MacCollsince 27/03/2015
  • Charles Plowdensince 27/03/2015
  • Spencer Adairsince 27/03/2015
Accolades
Fund objective
The Trust aims for long-term capital growth which takes priority over income. This is pursued through applying a patient approach to investment, principally from a differentiated, actively managed global equity portfolio containing a diversified range of growth stocks.
Benchmark
  • FTSE World
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
22.9%
1 Year rank in sector
5/22
Sector
IT Global
Yield
0.2%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.59%
Fund size
£1,676m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
136
Mid price
778
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
751.2
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+3.57
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
104
Top in this sector
Fund name1 Year
Independent Investment Trust64.6%
Edinburgh Ww IT PLC42.3%
Lindsell Train IT plc39.9%
Sct Mtg IT PLC27.4%
Monks IT PLC22.9%
...more in IT Global

Performance snapshot

Holdings snapshot

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-1.1%-4.7%4.9%22.9%74.9%134.1%
Sector0.7%-3.2%2.4%15.6%46.9%86.3%
Rank within sector17 / 229 / 225 / 225 / 223 / 225 / 22
Quartile4th2nd1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund1.9%35%33.8%8.9%3.2%
Sector-0.8%23.5%21.1%6.8%7.4%
Rank within sector4 / 224 / 223 / 2211 / 2219 / 22
Quartile1st1st1st2nd4th
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
2.15
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.38
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.32
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
13.61
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
6.84
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
1
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.8
Price movement
52 week high825
52 week low633.5
Current bid price776
Current offer price777
Current mid price778
Region
No data available.
Industry sector
No data available.
Asset type
No data available.
Individual holdings
1AMAZON.COM INC4.3%
2NASPERS3.6%
3PRUDENTIAL PLC3%
4ROYAL CARIBBEAN CRUISES2.4%
5TAIWAN SEMICONDUCTOR MANUFACTURING2.2%
6ALIBABA GROUP HLDG LTD2.1%
7ANTHEM INC2.1%
8AIA GROUP LTD2%
9ALPHABET INC1.9%
Management
Fund manager group
Baillie Gifford
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund objective
The Trust aims for long-term capital growth which takes priority over income. This is pursued through applying a patient approach to investment, principally from a differentiated, actively managed global equity portfolio containing a diversified range of growth stocks.
Benchmark
  • FTSE World
Investment style
No data available.
Investment method
No data available.
Fund managers
NameSinceBiography
Malcolm MacColl27/03/2015Malcolm graduated MA in Economics and History in 1998 and MLitt in Economics, Politics and Management in 1999 both from the University of St Andrews. He joined Baillie Gifford in 1999 and has spent time working in the UK Small Cap Team and North American Team. He has been a Global Alpha Investment Manager since the product’s inception and became a Partner in 2011. Malcolm is a member of the UK Society of Investment Professionals (UKSIP).
Charles Plowden27/03/2015Charles graduated BA in Modern History from Oxford University in 1983 and joined Baillie Gifford the same year, becoming a Partner in 1988. He was an Investment Manager in the UK Equity team for over 20 years notably developing Baillie Gifford’s specialist UK capabilities, and was latterly head of the team. Since its inception in 2005, Charles has headed up the Global Alpha strategy which is currently his sole portfolio management role. He became Joint Senior Partner with overall responsibility for the investment departments in 2006. He is also Chair of the Strategic Leadership Group.
Spencer Adair27/03/2015Spencer graduated BSc in Medicine from the University of St Andrews in 1997, followed by two years of clinical training in Edinburgh. He joined Baillie Gifford in 2000 and spent time working in the Fixed Income, Japanese, European and UK teams, before becoming an Investment Manager for the Global Alpha portfolio. He became a Partner in 2013.
Compliance
AIC Member, Transparent for Swiss Tax
Domicile
No data available.
Fund for sale in
United Kingdom
Monks Investment Trust PLC
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price754.98
CurrencyGBX
Price updated18/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJJA
Data provided by

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