Half Yearly Report

RNS Number : 8509G
Mid Wynd Inter Inv Trust PLC
09 February 2010
 



           

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

Results for the six months to 31 December 2009

In the six months to 31 December 2009, the Company's net asset value per share (after deducting borrowings at fair value) increased 28.6% to 998.8p while the FTSE World Index in sterling terms increased 24.7%.  The share price increased by 23.0%.

 

· 

 

Many share prices of companies that performed poorly in the first half of 2009 rebounded in the second half of the year.  Oil related companies and those with exposure to emerging markets were amongst the strongest performers.

 

· 

 

Bond holdings were reduced during the period and the proceeds reinvested in equities.

 

· 

Additional borrowings of £3.2 million were taken.  Potential gearing is now 110% of shareholders' funds having been 105% as at 30 June 2009.  The equivalent figures for equity gearing are 102% and 87%.

 

· 

As a result of the sales in the bond portfolio and a reduction in cash balances, earnings were 5.60p per share compared to 6.70p per share this time last year.  An unchanged interim dividend of 6.50p will be paid.

 

· 

While progress in the developed world may be constrained in the wake of the 2008 financial crisis and associated debt burdens, economic power and the hope of revived growth has passed from established traditional western economies to those in the developing world.

 

 

The objective of Mid Wynd International Investment Trust PLC is to achieve capital and income growth by investing on a worldwide basis.

 

Mid Wynd seeks to meet its objective of achieving capital and income growth through investment principally in a portfolio of international quoted equities. The proportion of the portfolio invested in UK companies will not normally exceed 25%. Further details of the Company's investment policy are given in the Directors' Report in the Annual Report and Financial Statements.

 

The Company had total assets of £55.4m (before deduction of bank loans of £5.2m) as at 31 December 2009.

 

Mid Wynd is managed by Baillie Gifford & Co, the Edinburgh based fund management group with around £55 billion under management and advice as at 8 February 2010.

 

Past performance is not a guide to future performance. The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. This is because the share price is determined by the changing conditions in the relevant stockmarkets in which the Company invests and by the supply and demand for the Company's shares. You can find up to date performance information about Mid Wynd at www.midwynd.co.uk

8 February 2010

- ends -

For further information please contact:

 

Michael MacPhee, Manager

Mid Wynd International Investment Trust PLC                          0131 275 2000

 

Roland Cross, Director,

Broadgate Marketing                                                                020 7726 6111

 



The following is the unaudited Half-Yearly Financial Report for the six months to 31 December 2009

 

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

Half-Yearly Financial Report 31 December 2009

Responsibility Statement

 

 

We confirm that to the best of our knowledge:

a)   the condensed set of financial statements has been prepared in accordance with the Accounting Standards Board's statement 'Half-Yearly Financial Reports';

b)   the Half-Yearly Management Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R (indication of important events during the first six months, and their impact on the financial statements, and a description of principal risks and uncertainties for the remaining six months of the year); and

c)   the Half-Yearly Financial Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.8R (disclosure of related party transactions and changes therein).

 

By order of the Board

PMS Barron

Chairman

8 February 2010


MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

Half-Yearly Management Report

 

 

Portfolio

The past six months has been a remarkable time in markets. The FTSE World Index in sterling terms has risen by 24.7% from the end of June. Mid Wynd's NAV has put on 28.6% to just under £10 per share. We have further reduced our bond holdings as yields have fallen and spreads shrunk and reinvested the proceeds in equities, so that the Company's level of exposure to the equity market is now above 100% for the first time in some years. Equities had become cheap, fear had become extreme and remedial policy measures were comparably radical.

 

During the six months ended 31 December 2009, the Company drew down additional borrowings in the form of €1.32 million under the existing US$5 million facility expiring 2012 plus £2 million under a new 365 day facility expiring September 2010. New investments have come in litigation finance, biotechnology, companies benefitting from stronger developing world consumers and financial systems, oil and gas exploration and gold mining to name some of the more prominent themes.

 

Biotechnology deserves a particular mention, since related companies account for over 6% of assets and because it is a theme unrelated to others in the portfolio. Concerns over US healthcare reform have depressed valuations of nearly all healthcare related undertakings. Some of this may well be justified. However, biotech companies find themselves trading very often near or below market multiples just as the industry is starting to confirm some of the hopes that were first expressed over a decade ago about the opening up of genomics and proteomics. Long term growth and return prospects appear rosy and unrecognised.

 

Sales of equities have come from holdings where short term opportunity has been fulfilled, such as Trinity Trikona, our Indian property developer, or where long term prospects have either withered or now appear to be properly discounted by markets. Neopost is a well run business in what appears increasingly to be a structurally overwhelmed postal industry. Pepsi, Walgreen and Nestlé are well appreciated steady growers where it has become challenging to describe what it is that we see that others may be missing. There is a lower than usual share of disappointments. This owes simply to the extent by which markets have risen over the period. One significant sadness was the takeover of Marvel Entertainment by Disney - we had hoped to enjoy some years of rapidly growing earnings as the group exploited its priceless back catalogue in film. Among large scale ongoing disappointments is the relapse of Japan into deflation to which the portfolio is somewhat exposed. Limited attempts to invest the other way have so far come to nothing. Kenedix and Mid Reit, commercial real estate landlords, continue to face difficult current trading after 20 years of preceding difficulties.

 

Earnings and dividend

The revenue return for the first half of the current financial year, at 5.60p per share, is 16.4% lower than the 6.70p per share earned in the six months to 31 December 2008, largely owing to sales in the bond portfolio and a reduction in cash balances. This shift in asset allocation was led by changing investment prospects. However, the Company has sufficient reserves to maintain its dividend and consequently a dividend of 6.50p will be paid on 1 April 2010 to shareholders on the register on 5 March 2010.

 



MID WYND INTERNATIONAL INVESTMENT TRUST PLC
 
Half-Yearly Management Report (Ctd)

 

Outlook

It is again impossible to avoid macro-economics when discussing the outlook for markets. Western economies have become a Japanese-style cartoon featuring two gigantic drunks, banks and governments, each desperately propping up the other. Neither is presently capable of standing up independently and both are flailing around doing significant and largely unintended damage to the economic structures around them. For business and anyone else who can, the sensible response is to stay as far out of their path as possible.

 

The strong black coffee has so far come in the innovative form of printing money and using it to buy government debt. No one knows how a withdrawal from this 'quantitative easing' may play out in practice since we have never seen this scale of experimentation in money printing before. However, smaller versions in the distant past have nearly all ended badly. More enduring support for western economies requires taking a knife to the bloated public sector to make room for productive private sector investment and job creation.

 

It seems likely that we will see some back up in the remarkable corporate margin improvement and free cash generation we have just experienced. A pick up in inventories is already underway - supply chain efficiencies have been tested to breaking point. This much is nearly inevitable given the extreme nature of the starting point. Yet the hangover from two decades of excess will be with us for some time just as the debt that fuelled the party will not evaporate quickly and is indeed still growing rapidly. Private sector confidence is unsurprisingly fragile and taxes are rising.  Low government bond yields are being artificially held down by banks' buying, and direct or indirect support from Central Banks. The scope for the latter to keep expanding their balance sheets without undermining their own credibility is diminishing. Fiscal constraints may well become severe in this context. Markets are about to impose discipline on our politicians. We may not need to fear this time that unprecedented stimulus will lead western consumers to lose control of their spending.

 

The longer term lesson to be observed by those developing countries that have not yet had the opportunity to become addicted to this cocktail of debt and monetary illusion is not that markets don't work. It's that they are not invulnerable to being distorted temporarily for short term gain. The good news is that the baton of growth has clearly passed to those in the developing world better able to carry it. High savings rates, high levels of capital investment, rapidly improving productivity, high and falling real interest rates, underlying continued improvement in fiscal positions and low levels of public and private debt: all these support rising domestic growth rates and rising consumption in populous nations like China, Brazil, Turkey, Indonesia and Poland. Appreciating currencies there, were it allowed to happen, would mean cheaper imports and some brake on local inflation. A stronger and more reliable future for developing world consumption will lead a shift in the focus of enterprises there towards their home markets. Critical in this evolution will be some gradual relaxation in the pegging of the renmimbi. Successful developing economies need to wean themselves off the cheap currency, export-driven economic path which typically also features reinvestment of revenues in western government debt. That change will in turn lead to necessary changes in western lifestyles.

 MID WYND INTERNATIONAL INVESTMENT TRUST PLC

INCOME STATEMENT

(unaudited)

 


For the six months ended

31 December 2009

For the six months ended

31 December 2008

For the year ended

30 June 2009

 

Revenue

£'000

Capital

£'000

Revenue

£'000

Capital

£'000

Total

£'000











Gains/(losses) on sales of investments

 

 

1,650 

 

1,650 

 

 

(3,420)

 

(3,420)

 

 

(4,210)

 

(4,210)

Changes in investment holding gains/(losses)

9,893 

9,893 

(7,548)

(7,548)

 

 

(6,567)

 

(6,567)

Currency losses

(145)

(145)

(187)

(187)

(12)

(12)

Income from investments and interest receivable

 

483 

 

 

483 

 

549 

 

 

549 

 

1,330 

 

 

1,330 

Other income

Investment management fee

(61)

(61)

(122)

(50)

(50)

(100)

(97)

(97)

(194)

Other administrative expenses

(86)

(86)

(82)

(82)

(150)

(150)

Net return before finance costs and taxation

 

338 

 

11,337 

 

11,675 

 

421 

 

(11,205)

 

(10,784)

 

1,089 

 

(10,886)

 

(9,797)

Finance costs of borrowings

(21)

(21)

(42)

(9)

(9)

(18)

(20)

(20)

(40)

Net return on ordinary activities before taxation

 

317 

 

11,316 

 

11,633 

 

412 

 

(11,214)

 

(10,802)

 

1,069 

 

(10,906)

 

(9,837)

Tax on ordinary activities

(35)

14 

(21)

(75)

13 

(62)

(251)

34 

(217)

Net return on ordinary activities after taxation

 

282 

 

11,330 

 

11,612 

 

337 

 

(11,201)

 

(10,864)

 

818 

 

(10,872)

(10,054)

Net return per ordinary share

(note 4)

 

5.60p

 

225.34p

 

230.94p

 

6.70p

 

(222.78p)

 

(216.08p)

 

16.26p

 

(216.24p)

 

(199.98p)

Note:

Dividends paid and payable per ordinary share (note 5)

 

 

6.50p

 

 

 

 

6.50p

 

 

 

 

 

15.00p

 

 

     The total column of this statement is the profit and loss account of the Company.

    All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

    A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

BALANCE SHEET

 (unaudited)

 

 


31 December 2009 


31 December 2008


30 June

2009


            £'000 


£'000


            £'000

 

FIXED ASSETS

 

 

 

 

 

Investments

54,344 

 

38,996 

 

40,776 







CURRENT ASSETS

 

 

 

 

 

Debtors

136 

 

178 

 

274 

Cash and short term deposits

1,203 

 

2,034 

 

143 

 

1,339 

 

2,212 

 

417 

CREDITORS

 

 

 

 

 

Amounts falling due within one year (note 6)

(2,265)

 

(318)

 

(240)

NET CURRENT (LIABILITIES)/ASSETS

(926)

 

1,894 

 

177 







TOTAL ASSETS LESS CURRENT LIABILITIES

 

53,418 

 

 

40,890 

 

 

40,953 

CREDITORS

 

 

 

 

 

Amounts falling due after more than one year

 

 

 

 

 

Bank loans (note 7)

(3,168)

 

(2,302)

 

(1,888)


(3,168)

 

(2,302)

 

(1,888)







PROVISIONS FOR LIABILITIES AND CHARGES

 

 

 

 

 

Deferred taxation

 

(6)

 


50,250 

 

38,582 

 

39,065 

 

CAPITAL AND RESERVES

 

 

 

 

 

Called-up share capital

1,257 

 

1,257 

 

1,257 

Share premium

20 

 

20 

 

20 

Capital reserve

47,721 

 

36,062 

 

36,391 

Revenue reserve

1,252 

 

1,243 

 

1,397 

SHAREHOLDERS' FUNDS

50,250 

 

38,582 

 

39,065 

 

 

 

 

 

 

 

 

 

 

 

 

NET ASSET VALUE PER ORDINARY SHARE (after deducting borrowings at fair value) (note 8) 

 

998.8p

 

 

766.8p

 

 

776.5p

NET ASSET VALUE PER ORDINARY SHARE (after deducting borrowings at par) 

 

999.4p

 

 

767.4p

 

 

777.0p







Ordinary shares in issue (note 9)

5,027,766 

 

5,027,766 

 

5,027,766 

 

 

 

 



MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

 

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (unaudited)

 

For the six months ended 31 December 2009

 

 

Share capital

£'000

 

Share premium

£'000

Capital reserve*

£'000

 

Revenue reserve

£'000

 Shareholders' funds

£'000







Shareholders' funds at 1 July 2009

1,257

20

36,391 

1,397 

39,065 

Net return on ordinary activities after taxation

 

-

 

-

 

11,330 

 

282 

 

11,612 

Dividends paid during the period#

-

-

(427)

(427)

Shareholders' funds at 31 December 2009

 

1,257

 

20

 

47,721 

 

1,252 

 

50,250 

 

 

For the six months ended 31 December 2008

 

 

Share capital

£'000

 

Share premium

£'000

Capital reserve*

£'000

 

Revenue reserve

£'000

 Shareholders' funds

£'000







Shareholders' funds at 1 July 2008

1,257

20

47,263 

1,449 

49,989 

Net return on ordinary activities after taxation

 

-

 

-

 

(11,201)

 

337 

 

(10,864)

Dividends paid during the period#

-

-

(543)

(543)

Shareholders' funds at 31 December 2008

 

1,257

 

20

 

36,062 

 

1,243 

 

38,582 

 

 

For the year ended 30 June 2009

 

 

Share capital

£'000

 

Share premium

£'000

Capital reserve*

£'000

 

Revenue reserve

£'000

 Shareholders' funds

£'000







Shareholders' funds at 1 July 2008

1,257

20

47,263 

1,449 

49,989 

Net return on ordinary activities after taxation

 

-

 

-

 

(10,872)

 

818 

 

(10,054)

Dividends paid during the year#

-

-

(870)

(870)

 

Shareholders' funds at 30 June 2009

1,257

20

36,391 

1,397 

39,065 

 

#   See note 5.

* Capital reserve as at 31 December 2009 includes an investment holding gain of £11,467,000 (31 December 2008 - gain of £594,000; 30 June 2009 - gain of £1,575,000).

 

 

 



MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

CONDENSED CASH FLOW STATEMENT

(unaudited)

 


Six months to

31 December 2009

Six months to

31 December 2008

Year to

30 June 2009


£'000

£'000

£'000

Net cash inflow from operating activities

377 

570 

982 

Net cash outflow from servicing of finance

(42)

(17)

(37)

Total tax paid

(198)

Net cash outflow from financial investment

(2,021)

(2,393)

(4,151)

Equity dividends paid (note 5)

(427)

(543)

(870)

Net cash outflow before use of liquid resources and financing

(2,113)

(2,383)

(4,274)

Liquid Resources




Decrease in short term deposits

1,771 

1,771 

Net cash inflow from use of liquid resources

1,771 

1,771 

Financing




Net cash inflow from bank loans

3,173 

Net cash inflow from financing

3,173 

Increase/(decrease) in cash

1,060 

(612)

(2,503)

Reconciliation of net cash flow to movement in net (debt)/funds




Increase/(decrease) in cash in the period

1,060 

(612)

(2,503)

Decrease in short term deposits

(1,771)

(1,771)

Increase in bank loans

(3,173)

Exchange movement on short term deposits and bank loans

(107)

(762)

(348)

Movement in net (debt)/funds in the period

(2,220)

(3,145)

(4,622)

Net (debt)/funds at start of the period

(1,745)

2,877 

2,877 

Net debt at end of the period

(3,965)

(268)

(1,745)

Reconciliation of net return before finance costs and taxation to net cash inflow from operating activities




Net return before finance costs and taxation

11,675 

(10,784)

(9,797)

Net (gains)/losses on investments

(11,543)

10,968 

10,777 

Currency losses

145 

187 

12 

Amortisation of fixed income book cost

(56)

(59)

(128)

Changes in debtors and creditors

198 

294 

183 

Overseas tax

(19)

(15)

(43)

Income tax

(23)

(21)

(22)

Net cash inflow from operating activities

377 

570 

982 

 



MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

THIRTY LARGEST HOLDINGS (unaudited)

at 31 December 2009

 

    Name

Region

Business

Value

 £'000

 

% of

total

assets*







Baillie Gifford Developed

  Asia Pacific Fund

Asia Pacific

  including Japan

Investment fund

1,853

 

3.3

Kone

Continental Europe

Elevators

1,530

 

2.8

OGX Petróleo e Gás

  Participacoes

Emerging Markets

Oil and gas exploration and production -

  Brazil

1,208

 

2.2

Baillie Gifford Japanese

   Smaller Companies Fund

Asia Pacific

  including Japan

Investment fund

1,198

 

2.2

Baillie Gifford Greater

  China Fund

Emerging Markets

Investment fund

1,157

 

2.1

Ocean Wilsons Holdings

United Kingdom

Tugboats, platform supply vessels and

  container handling - Brazil

1,093

 

2.0

Seadrill

Continental Europe

Deep water oil rigs

1,072

 

1.9

Athena Debt Opportunities

  Fund

Fixed Interest

Distressed debt

1,048

 

1.9

Reinet Investments SCA

Continental Europe

Investment holding company

1,007

 

1.8

China Merchants Bank

Emerging Markets

Banking - China

1,003

 

1.8

Essilor

Continental Europe

Ophthalmology

962

 

1.7

Medco Health Solutions

North America

Prescription management and health

  information

712

 

1.3

Juridica Investments

United Kingdom

Fund of lawsuits

711

 

1.3

Healthspring

North America

Medicare

697

 

1.3

Schindler

Continental Europe

Elevators

670

 

1.2

Marine Harvest

Continental Europe

Salmon farming

646

 

1.2

Naspers

Emerging Markets

Media company - South Africa & China

631

 

1.1

Eldorado Gold

Asia Pacific

   including Japan

Gold mining - Brazil, China, Greece &

  Turkey

624

 

1.1

Petrobras

Emerging Markets

Integrated oil - Brazil

620

 

1.1

Vision Opportunity China

  Fund

Emerging Markets

Investment fund - China

597

 

1.1

McDonalds

North America

Fast food restaurant chain

595

 

1.1

Better Capital

United Kingdom

Fund investing in distressed businesses

594

 

1.1

Falkland Oil and Gas

United Kingdom

Oil and gas exploration

583

 

1.1

Geberit

Continental Europe

Plumbing systems - Europe

582

 

1.1

Atlas Copco

Continental Europe

Industrial compressors and mining

  equipment

564

 

1.0

Novozymes

Continental Europe

Enzyme producer

558

 

1.0

The Biotech Growth Trust

United Kingdom

Biotechnology investment trust

554

 

1.0

Pride International

North America

Offshore drilling contractor

545

 

1.0

Dragon Oil

Emerging Markets

Oil and gas exploration and production -

  Turkmenistan

544

 

1.0

Ctrip.com International

Emerging Markets

Travel services - China

533

 

1.0

 

 

 

24,691

 

44.8

*Total assets before deduction of bank loans



 

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (unaudited)

 

1.

 

 

 

 

 

 

2.

 

 

 

 

 

3.

The condensed financial statements have been prepared on the basis of the same accounting policies as set out in the Company's Annual Financial Statements at 30 June 2009 and in accordance with the ASB's Statement 'Half-Yearly Financial Reports' and have not been audited or reviewed by the Auditors pursuant to the Auditing Practices Board Guidance on 'Review of Interim Financial Information'.  They have been prepared on the going concern basis as it is the Directors' opinion that the Company will continue in operational existence for the foreseeable future.

 

The financial information contained within this half-yearly financial report does not constitute statutory accounts as defined in sections 434 to 436 of the Companies Act 2006. The financial information for the year ended 30 June 2009 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The Auditors' Report on those accounts was not qualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985.

 

The management agreement is terminable on not less than 12 months' notice, or on shorter notice in certain circumstances. The fee in respect of each quarter is 0.125% of the net assets of the Company attributable to its shareholders on the last day of that quarter.

 

 

Six months to

31 December 2009

Six months to

31 December 2008

Year to

30 June

 2009

 

 

£'000

£'000

£'000

4.

Net return per ordinary share

 

 

 

 

Revenue return on ordinary activities after taxation

282

337 

818 

 

Capital return on ordinary activities after taxation

11,330

(11,201)

(10,872)

 

Total net return

11,612

(10,864)

(10,054)

 

 

Net return per ordinary share is based on the above totals of revenue and capital and on 5,027,766 ordinary shares, being the weighted average number of ordinary shares in issue during each period. There are no dilutive or potentially dilutive shares in issue.

 

 

 

Six months to

31 December 2009

Six months to

31 December 2008

Year to

30 June

 2009

 

 

£'000

£'000

£'000

5.

Dividends

 

 

 

 

Amounts recognised as distributions in the period:

 

 

 

 

Previous year's final dividend of 8.50p (2008 - 8.50p), paid 8 October 2009

 

427

 

427

 

427

 

2008 special dividend of 2.30p paid 16 October 2008

-

116

116

 

Interim dividend for the year ended 30 June 2009 of 6.50p paid 7 April 2009

 

-

 

-

 

327

 

 

427

543

870

 

 

 

 

 

 

Amounts paid and payable in respect of the period:

 

 

 

 

Interim dividend for the year ending 30 June 2010 of 6.50p (2009 - 6.50p)

 

327

 

327

 

327

 

Final dividend for the year ended 30 June 2009

-

-

427

 

 

327

327

754

 

 

The interim dividend was declared after the period end date and has therefore not been included as a liability in the balance sheet.  It is payable on 1 April 2010 to shareholders on the register at the close of business on
5 March 2010. The ex-dividend date is 3 March 2010. The Company operates a Dividend Reinvestment Plan and the final date for elections for this dividend is 11 March 2010.

 

 

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (unaudited)

 

6.

Creditors include £2 million in respect of a short term loan facility expiring on 2 September 2010.

 

7.

The bank loan falling due in more than one year comprises a ¥300 million and a €1.32 million loan drawn down under a US$5 million facility expiring on 27 February 2012 (31 December 2008 - ¥300 million; 30 June 2009 - ¥300 million).

 

8.

The fair value of the bank loans at 31 December 2009 was £5,200,000 (31 December 2008 - £2,331,000; 30 June 2009 - £1,913,000).

 

9.

At 31 December 2009 the Company had authority to buy back 753,662 of its own shares. No shares were bought back during the period under review.

 

10.

Transaction costs incurred on the purchase and sale of the investments are added to the purchase cost or deducted from the sale proceeds, as appropriate. During the period, transaction costs on purchases amounted to £31,000 (31 December 2008 - £12,000; 30 June 2009 - £33,000) and transaction costs on sales amounted to £4,000 (31 December 2008 - £5,000; 30 June 2009 - £10,000).

 

11.

At 31 December 2009 the Company had contingent liabilities of £1,005,000 (31 December 2008 - £1,005,000; 30 June 2009 - £1,005,000) in respect of a subscription agreement, relating to participating unsecured loan notes in Pantheon International Participations plc ('PIP'). The PIP loan notes of par value £495,000 held by the Company were valued at £300,000 at 31 December 2009 (31 December 2008 - £495,000; 30 June 2009 - £396,000).

 

 

None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

 

The half-yearly financial report is available on www.midwynd.co.uk and will be posted to shareholders on or around 19 February 2010.

 

 

Principal Risks and Uncertainties

The principal risks facing the Company relate to the Company's investment activities. These risks are market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk.  An explanation of these risks and how they are managed is contained in note 22 of the Company's Annual Report and Financial Statements for the year to 30 June 2009. The principal risks and uncertainties have not changed since the publication of the Annual Report which can be obtained free of charge from Baillie Gifford & Co and is available on the Mid Wynd page of the Managers' website: www.midwynd.co.uk. Other risks facing the Company include the following: gearing risk (the use of borrowing can magnify the impact of falling markets), the risk that the discount can widen and regulatory risk (that the loss of investment trust status or a breach of the UKLA Listing Rules could have adverse financial consequences and cause reputational damage).

 

 

 

 


This information is provided by RNS
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