Monks Investment Trust posts negative return for the year

Monks Investment Trust posted a net asset value total return of -0.4% for its full financial year on Wednesday, trailing behind the total return of 0.5% for the FTSE World Index in sterling terms.

The FTSE 250 trust said its share price total return in the same period - the 12 months to 30 April - was -1.3%.

Its board said stock selection was a positive contributor to returns led by Amazon, Ryanair and Alphabet (Google).

After excluding the deployment of gearing and sale of the US Treasury bond, portfolio turnover for the 12 months was around 14%, Monks said.

It explained that some gearing was invested across the existing portfolio of stocks following the market declines in September 2015 and again in January 2016.

As at the financial year end, the company’s equity gearing stood at 6.2% compared to nil a year ago, with effecting gearing excluding bonds at 6.9%.

Earnings per share were notably lower at 2.31p, against 4.74p a year earlier.

Monks declared a final dividend of 1p, making for a total dividend of 1.5p for the year - far below the prior year’s final dividend of 3.45p and total dividend of 3.95p.

“The board and managers believe the company’s portfolio is set to grow at an above average rate, even in an environment of only modest economic expansion,” Monks said in a statement.

“The portfolio has broad exposure to the themes of Asian consumption, underlying growth of the US economy, and technology.”

Monks was also looking to raise some funds, planning to seek the authority of shareholders at the annual general meeting to re-sell shares held in treasury at a premium to the prevailing net asset value per share.