Mid Wynd International (MWY)

Mid Wynd International (MWY) aims to provide investors with a concentrated Portfolio of high-quality companies, selected on a bottom-up basis. Managers Louis Florentin-Lee and Barnaby Wilson focus on companies capable of delivering high financial productivity, operating in industries with high barriers to entry, and having opportunities to reinvest their cash flow to fuel their growth.

Examples of the types of companies held include new holdings Boston Scientific, a medical devices manufacturer (e.g. heart valves and catheters) and Palo Alto Networks, a company in the cybersecurity space. Both companies operate in non-cyclical industries, are dominant in their respective markets, have moats protecting them from new entrants, and have opportunities to reinvest their cash flows.

Performance has been challenging since the start of the year, as the strategy has faced stylistic headwinds, with the team also acknowledging some stock selection mistakes. That said, following the de-rating of quality names, the team note that their portfolio companies are generally trading at attractive valuations, with nearly half of their holdings trading at the bottom half of their ten-year P/E range.

Meanwhile, MWY increased its Dividend for the 13th consecutive year in FY 2025. However, earnings per share declined year-on-year, reflecting the change in strategy, with FY 2025 being the first full financial year completed under Lazard. The board has stated it will use revenue reserves, and if necessary capital reserves, to maintain or grow the dividend going forward.