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magazineWhy we’re still mad keen on Monks
MONKS INVESTMENT TRUST (MNKS) £13.52
Gain to date: 2.9%
Original entry point: £13.14, 10 December 2020
We were expecting more than a 2.9% share price gain when adding Baillie Gifford-managed Monks (MNKS) to our Great Ideas selections list in December, but the recent renaissance of value stocks created headwinds for a trust focused on companies with above-average earnings growth.
Having consistently traded at a premium to net asset value over the past five years, Monks now trades at a 3% discount that offers an attractive new entry point.
Shares is pleased to see the trust smashed its FTSE World benchmark in the year to 30 April 2021, delivering a total return of 55.5% compared to 33.9% for the index.
Reaffirming its ‘buy’ rating, Investec Securities insists Monks gives investors ‘a differentiated and actively managed exposure to global growth’ and highlights the portfolio’s ‘rotation towards Rapid Growth companies from Cyclical Growth in recent years’, while also noting the ongoing charge is now ‘a frugal 43 basis points’.
We share Investec’s expectation that Monks’ growth philosophy and proven investment process should ‘underpin superior returns over the long term’.
SHARES SAYS: Keep buying Monks Investment Trust.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
