Monks continues to pursue its objective of long term capital appreciation. However, the performance of the portfolio and the change in share price have lagged behind a rise in broad stockmarket indices that has been largely driven by the search for yield rather than long term growth potential. Nevertheless, the net asset value per share did close at an all time year end high.
In the year to 30 April 2013 the net asset value total return, with borrowings at fair value, was 7.8% and the share price total return was 6.2%. Stock selection was the main reason the return was less than that of the 21.4% total return for the FTSE World Index.
A final dividend of 3.45p makes for an unchanged total dividend for the year of 3.95p.
During the course of the year Tom Walsh was appointed as deputy manager to work with Gerald Smith.
The managers believe that selecting companies for their potential to deliver superior operational performance and not overpaying for perceived safety remains the best policy for delivering the company's objective of capital appreciation in the long run.
Mr Karl Sternberg has agreed to join the Board with effect from 1 July 2013. He has extensive and relevant investment experience and will make a valuable contribution to the Company.