Monks

MNKS shares have derated, but the managers believe the portfolio will be resilient…

The best form of defence

Last year we published a number of studies showing that investment trust managers were counteracting the rise of passive vehicles by further concentrating their portfolios and using the advantages of the closed-end structure such as gearing and the ability to pay income from capital more aggressively. New analysis from the team at Kepler shows that that over the past five years, trusts which have seen the greatest reduction in number of stocks in portfolios have generated the highest levels of

Sail away: the best trusts to escape the UK

nvestors are increasingly turning to global funds. We suggest that concerns around Brexit are most likely leading investors to seek diversification overseas. In terms of retail sales the global sector has been comfortably the most popular among investors over the past few quarters. In 2018 global funds had close to twice the level of retail sales of any other sector, as can be seen in the chart below. A similar trend has emerged in the investment trust sphere, where the average discount within t

Monks Investment Trust - Overview

Monks Investment Trust (MNKS) aims to deliver long-term capital growth through a well-diversified, actively managed, global equity portfolio. Rigorous, bottom-up analysis is at the heart of the investment process, with the managers, Charles Plowden, Spencer Adair and Malcolm MacColl, looking to identify growth companies with above-average earnings growth. The team takes a long-term view on their holdings as this ensures that the fundamental attributes of a company are given ample time to drive

Monks Investment Trust - Overview

The principal aim of Monks is to deliver long-term capital growth, through a differentiated, actively managed global equity portfolio. The managers utilise a rigorous bottom up investment process, seeking out growth stocks which they envisage will offer above average earnings growth. In order to achieve this a longterm view is taken, ensuring that the fundamental attributes of the company are given ample time to drive returns. Diversification is a key attribute of the portfolio, and constituents

Molten Ventures - Forward Partners deal completed

Molten Ventures has recently completed the acquisition of Forward Partners, which allowed Molten to further broaden its portfolio, add a complementary strategy focused on earlier stage companies and potentially provide a pipeline of new core holdings. Furthermore, its recent equity raise gave Molten the funds to pursue new investments in what it currently considers a buyer’s market, with an emphasis on the venture capital (VC) secondary market. In FY24 (to end-March 2024), Molten’s gross portfol

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Morning Note – 3 May 2024

Hargreaves Lansdown: Consensus estimates are too low, but HL is not significantly undervalued unless material cost savings can be realised.

Hargreaves Lansdown is the St James’s Place of retail investment platforms. It has scale and brand, which have enduring value, but, in our view, just the wrong price structure, which it cannot address without killing its own profitability. In current corporate form we see a low single-digit growth business, in the middle of a major technology upgrade, which looks cheap prima facie, given the 11x next year multiple and the 5.4% prospective yield, but which DCF valuation suggests is not. We are mi

LIBERUM: DF Capital: Strong momentum carrying into FY 24

Hybridan Research 19/03/2024 - TMT Investments: 2023 final results - 64% of portfolio in established growth companies

TMT Investments today announced its audited results for the year ended 31 December 2023. The profit for the year was US$6.4m (2022: loss of US$81m) and the NAV was US$208.1m, up 3.3% (US$201.7m as of 31 December 2022), mainly as a result of the upward revaluation of Backblaze and Collectly. This translates to NAV per share of US$6.62 (compared to US$6.41 as at 31 December 2022) and the five-year IRR (internal rate of return) is 16% p.a. As of 18 March 2023, TMT had US$11.0m in net cash and cash

UK REITs: Building back better

UK commercial property has been a cornerstone asset for many income-seeking investors (both retail and institutional) in recent decades, particularly since the global financial crisis of 2007/8 and the resulting ultra-low interest rate environment. However, since rates began to rise in 2022 to tackle surging inflation, meaningful returns have once more become available on lower-risk assets such as cash and government bonds, which has led to a retrenchment from alternative income assets such as p

REMA - Zoning in on Zonal Pricing

Zonal pricing is now under consideration for implementation in the GB power market. While this is very much not a given, this note summarises the key reports on its potential impacts. We find that while there is an overall reduction in revenues across generation, this may be less than originally predicted and new regional price differences and timing differences may favour storage in Scotland and delay new gas plant construction nationally. We think this later second order impact improves the en

Morning Note – 2 May 2024

Temple Bar – Foundations for success

We are now more than three years into the tenure of Ian Lance and Nick Purves as managers of the Temple Bar Investment Trust. In that time, the Redwheel team has aimed to establish a well-diversified portfolio of value-orientated holdings, which it says is positioned for a long-overdue reversion to more normal market conditions, after a decade of what the managers believe was exceptional economic policy and quantitative easing. They say that slowing growth and stubborn inflation in the UK have w

Avation - Exercise of ATR 72 purchase rights underpins long-term growth strategy

Avation is a lessor of 34 commercial aircraft to a diversified client base of 16 airlines. This morning, the group has provided an update on its aircraft purchasing strategy, reporting the exercise of purchase rights for 10 ATR 72 aircraft for delivery between Q4 2025 to Q1 2028, which will follow the delivery of two new ATR 72 aircraft in the coming months already on order. In addition, AVAP has been granted new purchase rights and extended its remaining rights for 24 further ATR 72 aircraft, w

LIBERUM: Investment Platforms: Initial thoughts on the Dear CEO letter

LIBERUM: DF Capital: Prudent guidance drives another upgrade

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

Q3: flows deteriorated but negated by performance

AuM grew by a modest 0.6% qoq to £27.8bn (SCMe £27.8bn) with £1.7bn net outflows and £1.8bn positive performance. October saw most of the redemptions, with the injection of performance in Nov-Dec having no impact on flows. Although AuM is in line with our estimate, we adopt greater caution given persisting redemptions assuming outflows continue for longer. This drives a 10% reduction in outer year estimates (FY24e unch), though the 72p dividend remains covered. At 8x FY25e PER, with a 12% yield,