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.
Mid Wynd (MWY) aims to identify companies which can generate long term growth whilst keeping a sharp eye on protecting investors’wealth during negative periods.
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, this measurement - which shows the returns the managers have added beyond the underlying movements of the index - 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%.
This report has been issued by Kepler Partners LLP. The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.
Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.
Kepler Partners is not authorised to market products or make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.
The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.
The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.
This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.
Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm’s internal rules. A copy of the firm’s Conflict of Interest policy is available on request.
PLEASE SEE ALSO OUR TERMS AND CONDITIONS
Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 9/10 Savile Row, London W1S 3PF with registered number OC334771.
Fund History: Mid Wynd International
Invesco UK Equities managers Jonathan Brown and Robin West discuss three stocks that have fulfilled their investment thesis over the last few years...
Amid the recent revival for emerging markets, investors have remained focused on Asian markets. Should they be looking further afield to Latin America? Ed Kuczma, co-manager of the BlackRock Latin ...
We discuss how the global resources of JPMorgan Asset Management have bolstered the performance of JPMorgan Emerging Markets Trust...
For several years, quality as an investing style has dominated, outperforming both value and growth. We examine why the case for quality remains strong and the importance of taking an active approach…