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Monks Investment NAV falls; its total return worse than benchmark

7th Dec 2022 10:06

(Alliance News) - Monks Investment Trust PLC on Wednesday said net asset value per share fell and total return performed worse than its comparator benchmark.

The Edinburgh-based investment trust said fair value NAV per share on October 31 was 1,040.10 pence, down 5.4% from 1,099.80p on April 30. NAV total return during the six months that ended October 31 was negative 5.2%, performing worse than comparator benchmark the FTSE World Index total return of negative 0.3%.

Shares in Monks Investment were down 0.7% to 978.29p each in London on Wednesday morning.

The company declared no interim dividend to shareholders.

Monks Investment also reported a half year investment loss of GBP164.1 million, swinging from a gain of GBP203.6 million a year prior.

"The performance of the Monks portfolio over the past six months has been disappointing. The backdrop of an ongoing war in Europe between Russia and Ukraine, rising inflation, and aggressive central bank rate rises have done little to ease investor nervousness," it said in a statement.

The statement continued: "Investors' appetite for risk has been reduced, their timeframes have shrunk, and the value the market is prepared to place on future profits has fallen. The sort of structurally expanding businesses Monks invests in, particularly those where profits lie a few years out, remain out of favour."

However, Monks Investment remained confident in outlook, saying its portfolio could navigate rising costs and weaker demand.

It said its investment edge remains in identifying long-term growth companies, alongside claiming the financial characteristics and competitive positions within most of its holdings fuel expectations many will outcompete their peers and emerge as stronger yielding investments.

By Greg Rosenvinge, Alliance News reporter

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