The aim of Mid Wynd International Investment Trust (MWY) is to grow investors’ real wealth by investing in a portfolio of high-quality stocks across the globe. The team, led by Simon Edelsten, Alex Illingworth and Rosanna Burcheri, take a long-term view to investing, identifying long-term ‘themes’ across the globe and anticipating how each will develop over the next three to five years. Detailed analysis is then conducted into each theme, before the team invest in those which they believe to be the long-term winners and losers.
The portfolio normally consists of eight to ten themes, although there will be a number of themes outside the portfolio being analysed for potential inclusion. These are all regularly compared against each other through a correlation matrix, ensuring the trust is not overexposed to a particular trend. As of February 2020, online services (20.3%), automation (16.3%) and emerging market consumers (13.8%) make up the largest themes.
Although it is by no means an absolute return fund, the strategy is designed to outperform during rising markets and to minimise downside during negative phases. The managers have achieved this since taking over the portfolio in 2014, as we discuss in the Performance section. The past three years have been particularly impressive. MWY has outperformed in both falling and rising markets, most notably in the recent market crash following the spread of the coronavirus pandemic.
Due to the excellent performance, the trust has consistently traded at a premium over the past few years. We note that as the coronavirus pandemic has progressed, discounts have been volatile, but currently the trust is trading at a premium of 5.1%.