Monks has published results for the 12 months ended 30 April 2015. In the year to 30 April 2015, the net asset value total return, with borrowings at fair value, was 13.0% and the share price total return was 18.8% as the discount narrowed. The total return of the FTSE World Index in sterling terms was 18.0%. The full year dividend was maintained at 3.95p.
Towards the end of the financial year, responsibility for managing the portfolio moved to a different team within Baillie Gifford. This team is led by Charles Plowden and he is supported by Spencer Adair and Malcolm MacColl. They manage Baillie Gifford’s ‘Global Alpha’ investment strategy, which has a well established process and strong performance record. The narrowing of the Company’s discount followed this change.
They say performance detractors included geographic allocation and exposure to the Oil and Gas sector with Enquest, Seadrill, North Atlantic Drilling and IGas Energy in particular performing poorly. Good stock selection in Emerging Markets and Japan was offset by poor relative returns in the UK, North America and Europe (ex UK). The portfolio has been realigned to fit the new strategy.
MNKS : Monks’ performance disappoints but new portfolio now in place