Mid Wynd International (MWY)

Mid Wynd International (MWY) offers exposure to ‘compounders’, which are companies that can consistently generate high returns on capital and reinvest the cash they generate into their businesses to support future growth. Managers Louis Florentin-Lee, Barnaby Wilson, and Alistair Boyle aim to invest in companies with these characteristics when their shares trade at reasonable valuations, and to hold them for the long term.

Since the start of the year, the managers have reduced their exposure to semiconductor-related companies such as Taiwan Semiconductor Manufacturing Company (TSMC) and ASML. This was to manage their size in the Portfolio, as they have rallied strongly on the back of the build-out of AI infrastructure. Conversely, they have added to their positions in software businesses and introduced new holdings, such as financial technology firm Intuit. Many of these companies sold off in early 2026 as their business models have been seen as vulnerable to the rise of AI. However, the team believes these concerns may be excessive, as many of these companies benefit from competitive advantages that are hard to replicate.

The team has also initiated new positions in businesses they expect to benefit from secular growth trends. AutoZone, a US auto parts retailer, is one example. The managers expect it to gain from the ageing vehicle fleet in North America, rising miles driven, and increasing vehicle complexity.

In FY 2026, MWY increased its Dividend for a 14th consecutive year, strengthening its position among the AIC’s next generation of dividend heroes, while offering a historic yield of c. 1%. The board also continued its share buyback programme at an elevated pace, helping to maintain a narrow Discount, which currently stands at c. 2%.