Interim Management Statement

RNS Number : 3734O

Mid Wynd Inter Inv Trust PLC

10 October 2012

 



Mid Wynd International Investment Trust PLC

Interim Management Statement - 3 Months to 30 September 2012

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%.

Review of the Period

¾  Over the period, the Company's net asset value total return was -0.6% compared to a total return of 4.0% from the FTSE World Index (in sterling terms). The share price total return was 1.4% as the premium increased from 0.4% to 2.4%. ¾  The final dividend of 2.00p was approved by shareholders at the AGM held on 8 October 2012 and will be paid on 12 October 2012 to shareholders on the register on 7 September 2012. ¾  During the quarter, an addition was made to the holding in Ocean Wilsons and a part sale was made of Marine Harvest, which dropped out of the Top Ten as a result. All other changes to the Top Ten were as a result of market movements. ¾  In the three months to 30 September 2012 the FTSE100 and Eurostoxx 50 equity index call options with December 2012 maturity were replaced with options over the same indices with December 2013 maturity. The S&P 500 equity index call options were closed out. As a result effective gearing fell to -12.4%. ¾  Following the AGM held on 8 October 2012 the Company released the following statement on its Discount, Issuance and Buybacks Policy: "In February 2012 the Company confirmed its intention to be active in both issuing shares at a premium when there is demand and buying back shares at a discount when natural supply exceeds demand.  Establishing a discount/premium management policy allows for both issuance and buybacks to take place as a matter of routine and is intended to improve liquidity in the Company's shares. As a further measure to help improve liquidity, the Board will in future aim to limit the discount of the share price to the net asset value (NAV) per share to a maximum of 2% in normal circumstances (using a cum-income NAV with debt priced at fair value). This will be done using the Company's authority to buy back its own shares, subject to obtaining shareholder approval for this authority in future periods, as required. Any buy-back of ordinary shares will be made subject to the Companies Act 2006 and subject to Chapter 12 of the UK Listing Rules.  The execution and timing of any buy-backs and the issuance of shares will be at the absolute discretion of the Board and as such the discount or premium to NAV per share may at times exceed 2% on individual days due to market conditions governing the supply of and demand for shares. The Directors are authorised to cancel any Ordinary shares purchased under this authority or to hold them in Treasury for subsequent reissue at a premium."

Sector Analysis (as a % of total assets)			30/09/12 %	30/06/12 %
		Oil and Gas	7.4	7.2
		Basic Materials	5.9	5.2
		Industrials	16.1	16.4
		Consumer Goods	5.7	5.6
		Health Care	11.2	10.1
		Consumer Services	16.3	14.9
		Utilities	0.4	0.4
		Financials	9.7	11.3
		Investment Holding Companies	14.4	14.3
		Technology	6.0	7.2
		Fixed Interest	5.2	5.0
		Net Liquid Assets	1.7	2.4
Total			100.0	100.0

Top Ten Holdings (as a % of total assets)						30/09/12 %		30/06/12 %
		IP Group				4.7		5.7
		Odontoprev				3.5		3.2
		Level E Maya Fund				3.3		3.2
		Reinet Investments SCA				2.9		2.9
		Kone				2.8		2.5
		Ocean Wilsons				2.6		2.0
		BIM Birlesik Magazalar				1.8		1.8
		Fuchs Petrolub				1.8		1.5
		The Biotech Growth Trust				1.7		1.6
		Better Capital				1.7		1.7
Total						26.8		26.1
Total Return Performance		%
				3 Months	1 Year		3 Years		5 Years
		Share Price		1.4	5.7		60.0		49.3
		NAV		(0.6)	6.3		26.2		21.5
		Comparative Index		4.0	17.7		23.9		17.7
		Source: Morningstar/Thomson Reuters Datastream/Baillie Gifford & Co Comparative Index is FTSE World Index (in sterling terms) Past performance is not a guide to future performance

General Information			30/09/12	30/06/12
		Share price	232.0p	230.8p
		Net asset value per share† (after deducting borrowings at fair value)	226.5p	229.8p
		Net asset value per share† (after deducting borrowings at par)	226.9p	230.2p
		Premium (borrowings at fair value)	2.4%	0.4%
		Premium (borrowings at par)	2.2%	0.2%
		Total assets (before deduction of  borrowings)	£65.8m	£66.7m
		Total borrowings (at fair value)	£5.0m	£5.0m
		Total borrowings (at par)	£4.9m	£4.9m
		Potential gearing (borrowings at par)	8.0%	8.0%
		Actual gearing (borrowings at par)	(0.1%)	0.5%
		Effective gearing (taking into account sales of equity index futures and purchases of equity index call options, borrowings at par)	(12.5%)	(5.8%)
		Potential gearing (borrowings at fair value)	8.2%	8.1%
		Actual gearing (borrowings at fair value)	0.1%	0.7%
		Effective gearing (taking into account sales of equity index futures and purchases of equity index call options, borrowings at fair value)	(12.4%)	(5.7%)
		† These figures have been calculated using the AIC cum income basis (includes current financial year retained income). Dividends are not reinvested. The Company's Net Asset Value is calculated daily and can be viewed on the London Stock Exchange website at www.londonstockexchange.com
		This interim management statement and up to date NAV and Share Price information are available at www.midwynd.co.uk ‡ ‡ Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement. For further information, contact: Robert O'Riordan  0131 275 3181  [e-mail]

 

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