Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Mid Wynd International. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
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Overview

Mid Wynd (MWY), run by managers Simon Edelsten, Alex Illingworth and Rosanna Burcheri, look for longer term growth areas around the world and companies that can invest and grow in value even when economies are dull. They group these ideas into broad industry themes and then ensure they have spread investments between different themes with different drivers and also stocks exposed to this growth which trade on attractive valuations, often less well-known companies.

The portfolio normally consists of eight to ten themes, although the manager will have themes on the back burner that aren’t being used. Each theme has an upper limit of 25% of NAV, each carefully compared to one another through a correlation matrix to ensure that the trust is not over exposed to a particular trend. As of August 2019, healthcare costs (17.2%), online services (17.1%) and emerging market consumer (15.6%) make up the largest themes.

With the benchmark as the MSCI AC World Index, the managers aim to outperform over the long term by profiting during rising markets, and then protecting capital where possible when markets fall. The aim of protecting capital is a key and consistent aspect of the trust and, according to the managers, since inception the trust has outperformed more in months when the market has fallen than when we have seen rising markets (61% vs 58%). According to data from Morningstar, the trust has delivered NAV total returns of 121.8% since the managers took to the helm of the portfolio in May of 2014, compared to a return of 90.5% and 91.5% respectively from the MSCI AC World index and the IT Global sector average. As such, the trust sits in the top quartile of the AIC Global peer group for generating alpha (4.03) over that period and has a Sharpe ratio in the top two of the peer group, a testament to the success of their risk management processes.

Over the past few years the trust has consistently traded at a premium and this became even more pronounced towards the end of 2018, as investors looked increasingly for a ‘safe haven’. In December, the trust reached a premium as high as 7%, but this has since narrowed and currently the trust is trading on a premium of 3.8%.

Kepler View

The managers have clearly proven that they have the capacity to protect capital on the downside, but deliver long-term upside for investors. This is an extremely attractive proposition, especially in the current volatile climate. This is demonstrated by the five-year downside capture of just 75.5%, and an upside capture of 106.9% (Morningstar).

We see the trust as a core holding for investors, offering investors smoother equity returns than peers. Looking across the global peer group, no trust is as consistent as Mid Wynd in their returns, except for Lindsell Train which is trading at a premium of 25%. Furthermore, despite seeing a slowdown in growth across the globe, the fact that the team at Mid Wynd invest in growth companies, which tend to invest in new products, may allow them to continue to grow regardless of the economic conditions.

Mid Wynd’s board has demonstrated its commitment to discount control and so in our view there is little additional risk from the discount widening out on a sustained basis unless something changes dramatically.

bull bear
Unique and attractive investment thesis for the current volatile market Trading on a premium
Strong alpha generation since taking over in 2014
Low charges
Continue to Portfolio

Fund History

22 Jun 2022 Spider's web
We outline our new quantitative system for mapping the crucial performance characteristics of investment trusts…
18 May 2022 Riding out the storm
We look at trusts with tightly governed discounts which may appeal to investors in volatile markets…
19 Jan 2022 Apples and pears
We examine the relationship between the demand for open- and closed-ended funds, and ask whether investor behaviour can be predicted...
05 Jan 2022 Fund Analysis
MWY may be an opportunity for more cautious investors to gain exposure to global equity markets…
08 Dec 2021 We are the (ESG) champions
Investment trusts tend to be amongst the best-performing ESG strategies in the combined open- and closed-ended universe…
19 Aug 2021 Pandemic immunity
We ask which global equity trusts have outperformed through the different stages of the pandemic…
16 Jun 2021 A better class of travel*
Sharing many features of a traditional family office, investment trusts offer a sophisticated, cost effective solution for managing family wealth...
16 Jun 2021 Fund Analysis
MWY's approach to sustainability adds significant robustness to process…
10 Jun 2021 Green is good!
2021 will see billions dedicated to sustainable initiatives, which brings with it a host of possible investment opportunities...
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
04 Mar 2021 Slides and Audio: Mid Wynd International
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 04 March...
16 Dec 2020 My haven’t you grown!
How sustainability has gone from zero to hero in 2020…
19 Nov 2020 Hope springs eternal
The US election has given long-suffering value investors new hope of a 'great rotation' in their favour, but that light at the end of the tunnel could in fact be a train…
29 Oct 2020 Fund Analysis
MWY is a core global equity offering, with both upside potential and downside protection…
15 Oct 2020 Nice guys finish first
ESG has moved from hippy pipe-dream to corporate mainstream, but what is it really and where do we see opportunities?
09 Jul 2020 The next big thing: two mega-trends that everyone should own
Tech has beaten almost everything hands down – but nothing lasts forever. Where else should investors be looking for secular growth themes?
05 Jun 2020 Deep impact
Audio and presentations from our conference this week, where fifteen of the world's best fund managers described a profoundly altered investment landscape...
20 May 2020 Riding for a fall?
We consider the risks which could derail the multi-year tech boom…
13 May 2020 Braving the new world
Join 15 of the UK's best known fund managers at the Kepler Trust Intelligence Virtual Summit to find out how they see the world after the pandemic...
29 Apr 2020 On solid ground
Our analysis of discounts highlights trusts which are likely to offer significantly less discount downside from the current level…
15 Apr 2020 Fund Analysis
MWY has been a standout trust over the past three years, capturing less downside than its peers in negative phases and outperforming during the rising markets…
08 Apr 2020 Children of the Revolution
The outperformance of technology hints at an exciting possible future for the market when the virus is beaten…
10 Mar 2020 Kepler Spring Conference: presentations and audio
Audio and presentations from our spring conference at The May Fair Hotel last week…
09 Jan 2020 Full house
The KTI team’s ‘top picks’ for 2019 have delivered strong results…
12 Dec 2019 Regime change: how manager changes impact performance
Does a change in manager result in improved trust performance?
23 Oct 2019 Sail away: the best trusts to escape the UK
We look under the hoods of Global sector trusts to see which offer the best diversification prospects for UK investors...
11 Sep 2019 Fund Analysis
Mid Wynd aims to identify companies which can generate long-term growth whilst keeping a sharp eye on protecting investors’ wealth during negative periods…
13 Jun 2019 Real growth in a world of fake news
Presentations and audio from our event at the London Stock Exchange, where six fund managers set out their stall for an exciting future...
01 May 2019 Should you worry about what Sterling will do next?
Mid Wynd International Investment Trust's Sim Edelsten thinks not...
20 Mar 2019 A prudent approach
Alex Illingworth talks to Martin Stott about the team’s thematic approach to growing assets.
27 Feb 2019 A marathon not a sprint
Our research shows that investment trusts' structural advantages give them a significant edge for investors seeking long term capital growth...
04 Feb 2019 History repeating
We speak to Professor Russell Napier, founder of Edinburgh's Library of Mistakes - and find out why he thinks past performance really can be a guide to the future...
14 Jan 2019 Fund Analysis
A trust that aims to grow real wealth through investing in high-quality stocks across the world...
31 Dec 2018 Ladies, gentlemen and non-binary persons, start your engines…
With Britain only months away from the bright, sunlit uplands of Brexit and America officially ‘great’ again, we present our best ideas for what looks set to be a fascinating year…
13 Dec 2018 Efficiency is everything
With fee structures under increasing scrutiny, we analyse which trusts limit their costs without sacrificing standards...
08 Aug 2018 Fund Analysis
Mid Wynd International is a core global equity offering which aims to grow wealth steadily through the cycle...
08 Aug 2018 Feeling giddy?
As valuations continue to soar, we consider a few equity trusts with different approaches to diversification and risk management...
13 Dec 2017 Fund Analysis
A global equity offering which aims to grow wealth with a clear focus on delivering steady returns throughout the cycle, and in particular avoiding downside capture during negative phases...
22 Feb 2017 Into the wilderness
As the West heads deeper into uncharted territory, we examine the way in which global fund managers are positioning in the face of vertiginous valuations and seismic political change...
21 Feb 2017 Fund Analysis
21 Feb 2017 Don't wanna be an American idiot
We highlight various routes to US exposure for those who are not sure how much faith they place in the 'Trump Bump'...
13 Oct 2015 Global funds for income, growth and stormy weather
We compare investment trusts and funds across five global equity sectors, and highlight four of the best...
13 Oct 2015 Of fear and cheer…
The team behind Mid Wynd investment trust discuss a year of highs and lows, and their strategy for dealing with a choppy outlook...
10 Jun 2015 Liquidity: Punching above their weight
Five small yet highly liquid trusts which should be on your radar
View all

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