the monks investment trust plc · cm12469 monks investment trust plc 0120 44252 int ps 1972...

THE MONKS INVESTMENT TRUST PLCGLOBAL GROWTH FROM DIFFERENT PERSPECTIVES

CM12469 Monks Investment Trust PLC 012044252 INT PS 1972

Important Information and Risk Factors

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As with any investment, your clients’ capital is at risk. Past performance is not a guide to future returns.

This is a marketing communication and should not be considered as advice or a recommendation to buy, sell or hold a particular investment. This document contains information on investments which does not constitute independent investment research. Accordingly, it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned. Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions.

Baillie Gifford & Co claims compliance with the Global Investment Performance Standards (GIPS®). An example of a compliant composite presentation and a complete list of the Firm’s composites and performance results are available on request.

The Monks Investment Trust PLC is listed on the London Stock Exchange and is not authorised or regulated by the Financial Conduct Authority. Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority. Baillie Gifford & Co Limited is the authorised Alternative Investment Fund Manager and Company Secretary of the Trust.

All data is sourced from Baillie Gifford & Co unless otherwise stated.

The Monks Investment Trust PLC portfolio is managed by Baillie Gifford and Co’s Global Alpha Team.

Registered Office:Calton Square, 1 Greenside Row, Edinburgh EH1 3AN, ScotlandTelephone: 0800 917 4752 www.bailliegifford.com

Copyright © Baillie Gifford & Co 2015Your call may be recorded for training or monitoring purposes.

This presentation has been prepared for use by professional advisers and intermediaries only. It is not intended for use by retail clients.


Why The Prevailing Gloom?

2CM12469 Monks Investment Trust PLC 012044252 INT PS 1972


Monks Philosophy

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How We Identify Long-Term Winners

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Reward Seeking

5


Balance and Diversification

6


Monks Equity Portfolio

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Holding Size Growth Stalwarts 28% Rapid Growth 41% Cyclical Growth 18% Latent Growth 12% Total

>1.5%

AIA SAP AlibabaAnthem Visa AlphabetMastercard Amazon.comMoody’s NaspersPrudential The Schiehallion Fund Limited 26%

~1.0%

AJ Gallagher ResMed Alnylam Pharmaceuticals MarketAxess Advantest Richemont ApacheBroadridge Financial Solutions Schindler B3 Ping An Insurance Atlas Copco Ryanair BHP BillitonBureau Veritas Service Corporation International Facebook Prosus Banco Bradesco SMC Fairfax FinancialMicrosoft Sysmex HDFC Reliance Industries CRH Teradyne Kirby CorpOlympus Thermo Fisher Scientific ICICI Bank Seattle Genetics Deutsche Boerse TSMC MS&AD InsurancePernod Ricard Waters ICICI Prudential Life Insurance Shopify EOG Resources Sberbank

M3 Tesla Inc Markel SignifyMartin Marietta Materials Sumitomo Mitsui Trust 46%

<0.65%

58.com Istyle Albemarle Bank of IrelandAbiomed Just Eat Epiroc Brilliance China AutomotiveAdevinta LendingTree Hays Ferro Alloy ResourcesAnt International Mail.ru Group Jardine Strategic Howard HughesAppian Meituan Dianping Jefferies Financial Group IIDAAutohome MercadoLibre Orica Lindblad ExpeditionsAxon Enterprise Myriad Genetics PageGroup M&G plcChegg Netflix Ritchie Bros. Auctioneers MRC GlobalChipotle Mexican Grill Novocure Sands China Now IncCtrip.com International Renishaw SiteOne Landscape Supply Silk Invest Africa Food FundCyberAgent Schibsted TD Ameritrade StericycleFarfetch Sensyne Health Wabtec Toyota TsushoGenmab Spotify Tsingtao BreweryGRAIL TeladocGrubhub The Trade DeskIllumina TrupanionInteractive Brokers Group ZillowiRobot 26%

As at 31 October 2019. Excludes cash. Figures may not sum due to rounding.


Long-Term Stewards of Capital

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Embracing the Asymmetry of Returns

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Past performance is not a guide to future returns.Source: StatPro, top and bottom 10 stock returns for the Global Alpha Composite from inception (31/05/05) to 31/10/19, sterling. Some stocks were only held for part of the period.

7.3x7.8x7.9x

8.8x9.0x10.3x

12.2x14.0x

16.1x91.1x

-100 400 900 1400 1900 2400 2900 3400 3900 4400 4900 5400 5900 6400 6900 7400 7900 8400 8900 9400 9900

Ultra PetroleumQ-Cells

Opti CanadaKowloon Development

Arcos DoradosDIA

EvrazOGX

UnicreditEFG Hermes

Moody'sNVIDIA

Samsung ElectronicsSchindlerTesla Inc

TSMCMastercard

Atlas CopcoNaspers

Amazon.com

Absolute Cumulative Return (%)


Breadth of Opportunity – Reward Seeking

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The Monks Investment Trust, as at 31 October 2019. This thematic opportunity analysis is reflective of the team’s views. Figures may not sum due to rounding. Excludes cash.

APPENDICES


Performance

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Investment Returns

Source: Morningstar and FTSE, total return, sterling.As at 31 October 2019.

Top and Bottom Ten Relative Equity Stock Contributors31 March 2015 to 31 October 2019

Source: StatPro and FTSE.Some stocks may not have been held for the whole period.

Fund (Avg Weight) %

FTSE World Index (Avg Weight) %

Contribution %

Amazon 3.6 1.1 3.1

NVIDIA 0.5 0.2 1.4

MercadoLibre 1.0 0.0 1.3

MarketAxess 0.9 0.0 1.0

Mastercard 1.5 0.4 1.0

Alibaba 1.9 0.0 0.9

Moody’s 1.8 0.1 0.9

LendingTree 0.6 0.0 0.8

TSMC 1.9 0.4 0.7

Seattle Genetics 0.9 0.0 0.7

Microsoft 0.2 1.5 -1.2

Prudential 3.2 0.1 -1.2

Apache 1.1 0.0 -1.2

Apple 0.0 2.0 -0.9

Liberty Tripadvisor 0.4 0.0 -0.9

Bank of Ireland 0.7 0.0 -0.8

Baidu.com 0.9 0.0 -0.7

IP Group 0.5 0.0 -0.7

Stericycle 0.4 0.0 -0.7

Ultra Petroleum 0.1 0.0 -0.7

12 Months % Since 31 March 2015 %Share Price 15.7 109.4

NAV (cum fair) 14.9 79.7

FTSE World Index 11.7 63.8


Global Alpha Team Track Record

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50100150200250300350400450500550

May 05 May 07 May 09 May 11 May 13 May 15 May 17 May 19Global Alpha Composite MSCI AC World (MSCI World prior to 31/03/08)

Cumulative Performance Since Inception (31 May 2005, rebased to 100, net of fees, sterling)

Source: StatPro and MSCI. Data to 31 October 2019.

Since Inception net returns +389% cumulative to 31 October 2019, Index +111%

CM12469 Monks Investment Trust PLC 012044252 INT PS 1972 14

Portfolio Positions

Stock Name Portfolio %Amazon.com 3.0Alibaba 2.6Prudential 2.5AIA 2.2Moody's 2.1The Schiehallion Fund 2.1Anthem Inc 2.1MasterCard 2.1Alphabet 2.0Naspers 2.0Total 22.7

As at 31 October 2019.*Industry weights and regional weights are residual of the ‘bottom-up’ stock selection process. Totals may not sum due to rounding.

Top 10 Holdings Regional Weights*Industry Weights*Industry Portfolio %Financials 30.9Consumer Services 16.3Industrials 15.1Health Care 13.0Technology 13.0Consumer Goods 4.8Oil & Gas 3.4Basic Materials 1.8Cash 1.7Total 100.0

Region Portfolio %North America 46.3Emerging Markets 18.4Europe 13.8United Kingdom 8.2Japan 8.2Developed Asia 3.4Cash 1.7Total 100.0

Output of bottom-up process


Change in Growth Bucket Weightings 2009–2019

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As at 30 September 2019. Based on a representative Global Alpha portfolio to 31 March 2015 and then The Monks Investment Trust PLC 30 June 2015 to 30 September 2019. Excludes cash.

0%

20%

40%

60%

80%

100%

Q209Q309

Q409Q110

Q210Q310

Q410Q111

Q211Q311

Q411Q112

Q212Q312

Q412Q113

Q213Q313

Q413Q114

Q214Q314

Q414Q115

Q215Q315

Q415Q116

Q216Q316

Q416Q117

Q217Q317

Q417Q118

Q218Q318

Q418Q119

Q219Q319

Latent Growth Cyclical Growth Rapid Growth Growth Stalwart


Growth Category Characteristics

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Source: UBS PAS, Baillie Gifford & Co and FTSE. As at 31 October 2019, sterling. An analysis of the characteristics of the individual growth buckets by style factor compared to FTSE World Index. Ratings are the category weighted average for each style factor.A negative leverage percentage represents net cash position.*Excludes financials.

Valuation, Profitability and QualityStalwart Rapid Cyclical Latent Total

PortfolioFTSE World

Valuation (Leading P/E over next 12 months) (X) 18.8 35.6 16.9 11.2 20.5 15.9

Forecast Earnings Growth (next 12 months) (%) 15.8 28.4 4.0 2.4 12.0 7.8

Historic Earnings Growth (5 year trailing p.a.) (%) 14.0 20.7 13.1 4.0 11.8 9.7

Return on Equity (next 12 months) (%) 17.2 12.5 14.7 9.8 13.3 14.6

Debt/Equity Ratio (%)* 42.2 -5.5 18.8 42.8 22.5 50.0


More Patience: Less Volatility

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Our objective is to outperform over rolling five year periods

Range of relative returns narrow with time

1 Year 2 Years 3 Years 4 Years 5 YearsPeriods outperformed 112 135 128 126 114Total periods 162 150 138 126 114Periods outperformed (%) 69 90 93 100 100

Global Alpha Composite Periods Outperformed – Net of Fees

Range of Relative Returns over Rolling Periods

Source: StatPro and MSCI.As at 31 October 2019.Each rolling time period is measured to the end of a calendar month.

Source: StatPro and MSCI. As at 31 October 2019, net of fees.The figures above show results after analysing annualised returns over each monthly time period for the Global Alpha Composite (31/05/05 to 31/10/19) vs MSCI AC World (MSCI World prior to 31/03/2008).

-6-4-202468

1012

1 Year 2 Years(p.a.)

3 Years(p.a.)

4 Years(p.a.)

5 Years(p.a.)

%

Positive Relative Return Negative Relative Return


Monks – Balance Sheet and Costs

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Balance Sheet and Gearing— Gearing used most of the time to

enhance long-term returns— Typical gearing range: -15% to +15%

Portfolio %Listed equity exposure 104.5Unlisted equities 1.0Cash 1.8Gross assets 107.3Borrowings (inc debenture)* 7.3Net assets 100.0

Balance Sheet Analysis

As at 31 October 2019. Total may not sum due to rounding. *with debt at par value.

Low Costs— Ongoing charges – 0.50%*— Low management fee

— 0.45% on the first £750m of total assets, 0.33% on the next £1bn of total assets and 0.30% thereafter**

— All research costs are borne by Baillie Gifford

*As at 30 April 2019. **Effective from 1 May 2018.


Annual Discrete Performance to 30 September

The Monks Investment Trust PLC

Source: Morningstar and FTSE, total return in sterling.

2015 2016 2017 2018 2019Share Price (%) 2.8 37.9 35.6 19.1 7.8

NAV (cum fair) 0.0 33.6 24.9 16.3 5.7

FTSE World Index (%) 0.8 31.2 15.4 14.2 7.9

Global Alpha Composite

Source: StatPro and MSCI.Net of fees, sterling.

2015 2016 2017 2018 2019Global Alpha Composite (%) 3.8 32.7 21.7 14.9 6.4

MSCI ACWI (%) 0.4 31.3 15.5 13.5 7.9


Charles PlowdenPortfolio Manager

Spencer joined Baillie Gifford in 2000 and is an Investment Manager in the Global Alpha Team. He became a Partner in 2013 and has also spent time working in the Fixed Income, Japanese, European and UK Equity teams. Spencer managed the Investment Grade Long Bond Fund whilst being a Fixed Income Investment Manager and the European portion of wider Global portfolios whilst in the European Team. He has also spent time with our Emerging Markets Team. Spencer has been involved in the Global Alpha portfolio since inception in 2005 and has focused exclusively on this portfolio management responsibility since early 2007. He graduated BSc in Medicine from the University of St Andrews in 1997, followed by two years of clinical training in Edinburgh.

Malcolm is a Investment Manager in the Global Alpha Team. He has been involved in Global Alpha since the product’s inception in 2005 and this is his sole portfolio responsibility. He joined Baillie Gifford in 1999 and spent his graduate rotation in the UK Small Cap Team before joining the North American Team. Malcolm managed the North American portion of wider Global portfolios whilst in the North American Team. He is a member of the CFA Society of the UK and became a Partner of the firm in 2011. Malcolm graduated MA in Economics and History in 1998 and MLitt in Economics, Politics and Management in 1999 both from the University of St Andrews.

Spencer AdairDeputy Manager

Malcolm MacCollDeputy Manager

Portfolio Managers

Since the inception of Global Alpha in 2005, Charles has been one of the three Investment Managers for the strategy. After becoming a Partner in 1988, he became Joint Senior Partner with overall responsibility for the investment departments in 2006. Charles is also Chair of the Strategic Leadership Group. He joined Baillie Gifford in 1983 and 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. Charles graduated BA in Modern History from The University of Oxford in 1983.


Legal Notices

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MSCISource: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an ‘as is’ basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the ‘MSCI Parties’) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com).

FTSESource: FTSE International Limited (‘FTSE’) © FTSE 2018. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and/or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE’s express written consent. FTSE does not promote, sponsor or endorse the content of this communication.

the monks investment trust plc · cm12469 monks investment trust plc 0120 44252 int ps 1972...

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