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 International Investment Trust (MWY) invests in a portfolio of high-quality global stocks, with the objective of growing its investors’ real returns. The management team consist of Simon Edelsten, Alex Illingworth and Rosanna Burcheri. They make heavy use of long-term themes across the world, anticipating how they will evolve over three to five years. The team are also valuation-sensitive, and typically use a cash flow or asset-based valuation when determining the underlying holdings.

As outlined in the Portfolio section, the strategy typically utilises eight to ten themes, with many more under constant review for possible inclusion. The three largest themes are currently online services at 22.6%, automation at 12.4% and low-carbon world at 11% (as at 30/09/2020). The portfolio is positioned towards quality growth, though it is by no means an exclusively growth fund and has the potential to rotate to value when appropriate. The team have implemented a negative stock screen and effective ESG analysis, receiving a five-globe rating for sustainability by Morningstar, its highest rating.

The investment strategy is designed to not only capitalise on the upside, but also to protect capital on the downside. Since taking over the strategy in May 2014 the team have largely achieved this objective, generating a cumulative NAV performance of 150.4% since taking over. This compares to 105.0% from the benchmark, with MWY also achieving a five-year 100.7% upside capture and a downside capture of 78.8% versus the benchmark. While dividend growth is not its primary objective, MWY also offers investors a progressive dividend payout, with a current yield of 0.9%.

Analyst's View

It is our opinion that Mid Wynd International Investment Trust has delivered on its objective. Since taking over the management of the trust, the team have managed to deliver outperformance versus the benchmark without ever truly failing on the downside, something evidenced by their recent performance during the COVID-19 pandemic. Having an investment process that focusses on themes and valuations rather than solely on stock-picking or macro factors produces a portfolio of core equities which is able to evolve with economic cycles. The current quality growth positioning to some extent explains the recent outperformance, but the team’s awareness of a need for a potential shift to value should bring confidence to an investor looking to hold this trust through multiple cycles.

The ESG credentials of the strategy are exceptionally strong, as shown by the Morningstar rating, but what we particularly like is the clarity in how MWY integrates ESG and its reporting. This, plus the team’s pragmatism in identifying ESG factors material to their valuations, forms our opinion that the portfolio will remain ESG-compliant in the future and that its integration will enhance returns.

The trust trades at a premium currently; however, the board makes an effort to keep the share price +/-2% from the NAV, so we feel that investors should not be too concerned about purchasing at a small premium.

bull bear
Managers have delivered on risk and return objectives since taking over in 2014 May mistime the rotation of value
Flexible and thematic approach allows the portfolio to evolve with markets Avoidance of certain themes (including negative screens) may mean missing out on outperformance during a post-COVID recovery (e.g. from tourism)
Disciplined discount control The team do not capitalise on momentum as much as their peers or the benchmark
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…
11 Apr 2022 Go with the flow
MWY has responded well to changing 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 ordinary investors a cost-effective solution to 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 seems to beat every other sector hands down – in both up and down markets – 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 ask what 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…
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…
28 Jun 2019 Trusted by families
In a guest addition of our 'view from the top' series, a descendant of the founding family of Mid Wynd investment trust, who sits on the trust's board, explains why the trust still works 70 years on...
01 May 2019 Should you worry about what Sterling will do next?
Mid Wynd International Investment Trust's Sim Edelsten thinks not...
07 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 matters
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...
15 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 a selection of 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 Feeling giddy?
As markets look toppy, we consider a few equity trusts with different approaches to diversification and risk management...
08 Aug 2018 Fund Analysis
Mid Wynd International is a core global equity offering which aims to grow wealth steadily through the cycle...
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...
12 Oct 2017 Roaring back…
We analyse the drivers behind the significant outperformance of global active managers in 2017, following what was a very poor year for them in 2016...
28 Feb 2017 Don’t wanna be an American idiot…
After such a chaotic start to Donald Trump's presidency, we look at potential options for investors in the US equity space...
22 Feb 2017 Into the wilderness...
In this detailed study of the global equity sectors, we analyse how managers are positioned in a world of high valuations and seismic political changes...
21 Feb 2017 Fund Analysis
A core global equity portfolio with a flexible mandate and a focus on capital preservation…
05 Oct 2016 Analysis - Going global
As the prospect of a messy divorce from the EU becomes increasingly real, we look at ways to diversify your portfolio away from the UK...
27 Jun 2016 Broken Britain
As the UK enters a period of uncertainty the like of which has not been seen since the Suez Crisis, we highlight four trusts which have little exposure to our unfolding catastrophe....
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