Saturday, 8 September 2018

Mid Wynd - Full Year Results


Mid Wynd International is a theme-based global investment trust. The strategy is to hold around 60 - 70 holdings between 8 to 10 themes. 

Current themes include Automation/Robots 16%, Emerging Market Consumer 9%, Tourism 13%, Healthcare & Immunology 15%, Online Services 13%, Low Carbon World 2% and Scientific Equipment 11%.

The management team led by Simon Edelsten have built a portfolio of high-quality holdings which focus on a number of trends which offer the prospect of long term growth.

The shares were added to my portfolio in April at the price of 474p. In June the price received a boost when the company entered the All Share Index and therefore the shares were in demand from the growing number of index trackers.

Results

Mid Wynd have recently announced results for the full year to end June 2018 (link via Investegate). This has been another good year with share price total return up 13.4% compared to the All Country World Index 8.9%.

I have acquired this trust mainly for growth but it does offer a yield of around 1.0%. The total dividend for the full year will be increased by 11% to 5.55p which is covered by revenues of 7.14p.

Outlook

Concluding his outlook, chairman Malcolm Scott said:

" Of course the bull market that began in March 2009 will not go on forever. Ultimately recessions cause bear markets. Many commentators are predicting a US, and indeed a global, recession in 2020. The catalyst for that will be apparent only in hindsight. In the meantime, we continue to believe that a diversified portfolio of companies exposed to growth around the world, and whose share prices are clearly supported by their underlying cashflows, will continue to serve your Company well over the longer term - come bull or bear."

3 Yr Comparison v Scottish Mortgage & Polar Technology
(click to enlarge)

This is early days for me, just 5 months in. The share price is currently 535p so a rise of 13% since purchase. It certainly seems to be less volatile compared to my other tech holdings, Scottish Mortgage and Polar Cap Technology Trust.

Interesting that the managers have hardly any UK-listed holdings. They say this is because all the best firms are unlisted and of the rest, they over-pay  in dividends and are under-invested in the business as a result. (This seems to tie in with my previous post on returns between the UK and US.)

For now, this can return to the bottom drawer but I may well add to my holding as my income-generating holdings are sold off. Currently however, the fall in the value of sterling does not offer such tempting deals.

As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation - always DYOR!

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