Middlefield Canadian Income PCC (the "Company")
Including Middlefield Canadian Income – GBP PC (the “Fund”), a cell of the Company
Registered No: 93546
Legal Entity Identifier: 2138007ENW3JEJXC8658
HALF-YEARLY FINANCIAL RESULTS
The information set out in this announcement is the Company’s full unedited half-yearly financial results (unaudited) for the period ended
The HYFR is expected to be printed and posted to all shareholders within
Enquiries:
Secretary
Tel.: 01534 700 000
President
Tel.: 01203 7094016
END OF ANNOUNCEMENT
Half Yearly Report
LON: MCT
Focusing on high levels of stable and increasing income together with capital growth, this Fund invests in Canada’s highest quality, large capitalisation businesses. Middlefield Limited, the Fund’s investment manager, is a private and independent firm located in
Financial Highlights
| 2025 DIVIDENDS PAID |
| 1.375p per share quarterly |
| 5.5p per share Dividend Guidance for 20251 |
| YIELD |
| 4.3% |
| SHARE PRICE |
| 129.00p |
| NAV PER SHARE |
| 134.61p |
| NET ASSETS |
| £143.3m |
1. This is a target only and does not constitute, nor should it be interpreted as, a profit forecast.
Key Information
This Fund invests in larger capitalisation Canadian and
Exposure to Key Canadian Themes & Industries
Canadian companies are amongst the world leaders across the real estate, financial, energy and power sectors.
| Real Estate | Financials One of the world’s most sophisticated and well-capitalised banking systems, Canada’s banks are well-positioned to consistently grow their dividends over time. Canadian financials have historically demonstrated less volatility than peers during periods of market uncertainty. | Energy and Power North American energy is expected to play a vital role in energy security and the energy transition over the coming decades. Its domestic power market benefits from an abundance of renewable energy sources and robust demand for electricity driven by growing corporate demand and improving global accessibility. |
Historical Performance
Performance Since Inception to
| Recent Performance | 1 Mth | 3 Mth | YTD | 1 Year |
| Share Price | 1.2% | 9.3% | 13.9% | 31.3% |
| NAV | 2.3% | 4.7% | 2.6% | 15.8% |
| Benchmark | 0.8% | 4.4% | 4.3% | 12.3% |
| S&P/TSX Composite Index | 1.9% | 7.7% | 6.0% | 16.5% |
| Long-Term Performance | 3 Year annualised | 5 year annualised | 7 year annualised | 10 year annualised | Since inception annualised |
| Share Price | 8.0% | 15.0% | 9.9% | 9.1% | 7.4% |
| NAV | 3.0% | 11.6% | 7.2% | 8.1% | 7.2% |
| Benchmark | 3.2% | 13.7% | 8.2% | 8.7% | 6.3% |
| S&P/TSX Composite Index | 9.1% | 12.3% | 9.3% | 9.9% | 6.6% |
| Long-Term Performance | 3 Year cumulative | 5 year cumulative | 7 year cumulative | 10 year cumulative | Since inception cumulative |
| Share Price | 26.1% | 101.6% | 93.4% | 139.1% | 286.0% |
| NAV | 9.3% | 73.1% | 63.1% | 117.9% | 272.0% |
| Benchmark | 10.0% | 89.8% | 73.9% | 131.2% | 215.3% |
| S&P/TSX Composite Index | 30.0% | 78.8% | 86.1% | 155.9% | 235.0% |
Sources: Middlefield, Bloomberg. As at
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. All price information is indicative only.
- Total returns including the reinvestment of dividends for all returns. Fund returns are net of fees.
- Composite of monthly total returns for the S&P/TSX Income Trust Index from inception to
31 December 2010 and the S&P/TSX Composite High Dividend Index (formerly named the S&P TSX Equity Income Index) thereafter. - Currency adjusted to reflect CAD$ returns from inception of MCT to
Oct 2011 and GBP returns thereafter since MCT was CAD$ hedged from inception toOct 2011 . - Prior to
31 October 2024 , the Fund’s Benchmark, as well as the S&P/TSX Composite Index, were calculated gross of withholding tax. Beginning31 October 2024 , the Benchmark and the S&P/TSX Composite Index are calculated net of a 15% withholding tax and all period returns have been restated on this basis.
Responsibility Statement
We confirm that to the best of our knowledge:
- The half-yearly financial report has been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company.
- The Chairman’s Report and Investment Manager’s Interim Report include a fair review of the development, performance and position of the Company and a description of the risks and uncertainties, as disclosed in note 16 to the interim financial statements, that it faces for the next six months, as required by DTR 4.2.7.R of the Disclosure Guidance and Transparency Rules.
- The Investment Manager’s Interim Report and note 13 to the interim financial statements include a fair review of related party transactions and changes therein, as required by DTR 4.2.8.R of the Disclosure Guidance and Transparency Rules.
By order of the Board
Chairman Audit Committee Chair
Date:
Chairman’s Statement
It is my pleasure to present the Half-Yearly Financial Report for the period ended
Investment Performance
Against a backdrop of geopolitical and economic uncertainty in the first half of 2025, the Fund generated total returns of 13.9 per cent on its share price and 2.6 per cent on net assets versus the benchmark total return of 4.3 per cent. Positive stock selection within the financials, energy, and real estate sectors were the biggest positive contributors to performance, whilst the utilities sector was the biggest detractor. Building on a strong 2024, the Fund’s recent performance highlights the resilience and attractiveness of high-quality, dividend-paying companies within Canada’s core sectors.
Since the start of 2025, the discount to NAV at which the Fund’s shares traded narrowed from 13.5 per cent at the start of the year to 4.2 per cent by
In addition, the Fund’s discount to NAV narrowed appreciably following the announcement by the Fund on
Investment Management
The Board has regular contact with the Investment Manager, Middlefield Limited, to discuss portfolio strategy and review its investment approach, gearing and sector allocations. We remain satisfied that the Investment Manager is applying the strategy consistently and professionally and are confident that the Investment Manager’s outlook and the Fund’s corresponding positioning can deliver competitive performance over time. Middlefield Limited, the Fund’s Investment Manager, has over 45 years of investing experience. The Investment Manager uses an actively managed strategy, allowing it to take advantage of market dislocations across
Shareholder Engagement
The Board and the Investment Manager were actively engaged with shareholders throughout 2025. Both the Board and Investment Manager are committed to maintaining an open dialogue with investors and will continue to engage with them proactively as the Fund moves through the next phase of a strategic transition.
Engagement with Saba
The requisition notice from Saba received by the Fund on
Following consultation with a number of the Fund’s largest shareholders, including Saba, and following constructive discussions, on
After considerable discussions with the Fund’s largest shareholders and other stakeholders, the Company announced in early May its intention to propose a rollover of the Fund into a newly created, actively managed UCITS ETF, which would be admitted to trading on the
Gearing
The Fund reports its gearing relative to net and total assets in its monthly fact sheet. Gearing relative to total assets was consistent throughout the first half of 2025 at 16 per cent. This compares to the Fund’s upper limit of being able to borrow up to 25 per cent of its total assets at the time of drawdown. Net gearing, which represents borrowings as a percentage of net assets, is the AIC’s standard measure of gearing. Net gearing at the start of the year was 19.3 per cent and ended the period on
Fund Sector Weights Compared to Benchmark as at
| Sector Allocation | MCT | Benchmark | Over/ Underweight |
| Real Estate | 23.8% | 4.3% | 19.5% |
| Energy | 21.4% | 13.7% | 7.7% |
| Financials | 21.3% | 30.8% | -9.5% |
| Pipelines | 15.4% | 15.4% | 0.0% |
| Utilities | 10.2% | 14.6% | -4.4% |
| Materials | 3.5% | 5.9% | -2.4% |
| 2.6% | 10.2% | -7.6% | |
| Industrials | 1.9% | 0.7% | 1.2% |
| Consumer Discretionary | 0.0% | 2.6% | -2.6% |
| Consumer Staples | 0.0% | 0.9% | -0.9% |
| Health Care | 0.0% | 0.8% | -0.8% |
| Information Technology | 0.0% | 0.1% | -0.1% |
| Total | 100.0% | 100.0% |
Source: Middlefield, Bloomberg
The background to the Fund’s performance is explained in depth by Mr
The cost of borrowing has continued to come down since the start of 2024, with the
Earnings and Dividends
In light of the excess earnings generated by the Fund in 2024, together with the prospect of dividend growth from the underlying portfolio, the Board approved a 0.2p increase to the annual dividend target to 5.5p in early 2025. Two quarterly interim dividends each of 1.375p per share were paid on
Directors’ Remuneration
The directors’ remuneration has remained unchanged at £36,000 per annum for the chairman of the Board, £32,000 per annum for the chairman of the Audit Committee and £29,000 per annum for all other directors bar
Related Party Transactions
The Company’s related parties are its directors and the Investment Manager. There were no related party transactions (as defined in the Listing Rules) during the year under review, nor up to the date of this report. Details of the remuneration paid to the directors and the Investment Manager during the period under review are shown in note 13.
Material Events
As disclosed earlier, following ongoing engagement with shareholders and a strategic review process, the Board announced its intention to pursue a rollover of the Fund into an ETF. This decision reflects the Board’s objective to enhance long-term value and liquidity for shareholders.
In anticipation of the Transaction being implemented and in order to minimise costs, the existing loans under the credit facility with Royal Bank of Canada have been fully repaid and the Fund currently has no gearing in place.
The Board is not aware of any other material events or transactions between
Company and Fund Annual General Meetings
At each of the Company and Fund Annual General Meetings held on
Board Composition and Succession Planning
The Board frequently reviews its succession planning strategy and has taken multiple steps in recent years to refresh its composition. We are pleased with the significant progress made to ensure the highest standards of good corporate governance. These steps included the appointment of four new non-executive directors over the past six years: Mr
Contact
Shareholders can write to the Company at its registered office or by email to the Secretary at middlefield.cosec@JTCgroup.com.
Principal Risks and Uncertainties
While discussions between the Board and Saba have been constructive and led to the proposal to roll over the Fund into an ETF structure, uncertainty remains as to whether the necessary level of shareholder approval will be obtained to implement the transaction. The Board remains focused on acting in the best interests of shareholders as a whole and is committed to avoiding further costly or prolonged activist campaigns that could divert attention from the Fund’s investment objectives.
The prospect of USMCA negotiations and renewed tariff threats from the
Inflation has shown signs of moderating in 2025, but any resurgence driven by tariffs or supply shocks could limit central banks’ ability to cut interest rates further. Fiscal pressures are also rising, with the
Geopolitical risks persist, notably ongoing conflicts in
Managing Risks
The Board places strong emphasis on the ongoing assessment and effective oversight of material risks that could impact the Company’s ability to meet its investment objectives. The Board prioritises this aspect, guided by its evaluation of the risks inherent in the Company’s operations. It oversees the controls implemented by the Board, the Investment Manager and other service providers. These evaluations and oversight activities are documented in the Company’s business risk matrix, which remains an effective instrument for identifying and tracking risks.
The directors consider the principal risks facing the Company to be those risks, or a combination thereof, that may materially threaten the Company’s ability to meet its investment objectives, its solvency, liquidity or viability. In assessing the principal risks, the directors consider the Company’s exposure to and likelihood of factors that they believe would result in significant erosion of value, such as the possibility of a recession, the ability of
Currently, geopolitical instability and the unpredictability of
Outlook
While Canadian equities are trading at a material discount to their
Chairman
Investment Manager’s Interim Report
The first half of 2025 (H1) was marked by significant market volatility stemming from renewed trade tensions and geopolitical uncertainty. Despite these headwinds, which peaked in early April, the TSX Composite Index and S&P 500 Index both finished H1 at all-time highs. Large cap financials, technology, and communication services stocks led the market rebound, while value-oriented and cyclical sectors outperformed during periods of risk-off sentiment. In local currencies, the TSX Composite beat the S&P 500 by 4 per cent with a total return of 10 per cent, driven by rising capital flows and increasing investor interest in Canada’s economic durability. The Fund’s benchmark returned 4.3 per cent in British Pounds, lagging the TSX by nearly 2 per cent. Notwithstanding the recent period of outperformance, company valuations in
In British Pounds, shares in the Fund generated a total return of 13.9 per cent and a NAV total return of 2.6 per cent. Financials were the biggest contributor to performance in H1, led by core positions in TD Bank and AGF Management. After a challenging 2024, real estate was the next largest contributor as several Canadian REITs benefited from increased M&A activity and renewed foreign investor interest. Real estate is now the Fund’s largest sector weight and has remained the largest active overweight position for several quarters.
The resignation of
Despite a more supportive domestic policy backdrop, trade tensions between
We expect inflation in
We remain optimistic for the Canadian real estate sector heading into the second half of 2025. A compelling mix of attractive valuations, supply-demand imbalance, and increased M&A activity has reignited investor interest in Canadian REITs. Global investors, including sovereign wealth funds and private equity, are seeking access to high quality Canadian real estate.
Despite the rally in H1, Canadian REITs still trading at an approximate 15 per cent discount to NAV, providing room for further upside as transaction activity picks up. The Fund maintains a significant overweight exposure to real estate relative to the benchmark, with core exposures to necessity-based retail, multi-family apartments, industrial, and seniors’ housing.
Energy is a cornerstone of the Fund’s strategy, contributing positively to performance in the first half of 2025 and remaining a key area of conviction. Energy represents 21.3 per cent of the Fund, overweight by 7.7 per cent relative to the benchmark, reflecting our confidence in the sector’s strong fundamentals and long-term outlook. The Fund’s holdings are concentrated in high-quality producers and pipeline operators with strong balance sheets, low leverage, disciplined capital allocation, and attractive dividend yields. Canada’s role as a reliable, secure supplier of energy is growing increasingly important amid rising geopolitical tensions. The Trans Mountain Pipeline Expansion (TMX) has added another 590,000 barrels per day of crude oil capacity, providing Canadian producers with greater access to global markets. The commencement of LNG Canada’s first shipments to
We remain constructive on the financials sector, which represents 21.3 per cent of the Fund, its third-largest allocation. While we entered the year with a modest underweight exposure due to valuation concerns following a strong 2024, we’ve maintained selective exposure and continue to see attractive opportunities across the broader sector. Canadian banks are well-capitalised, having built up ample reserves to navigate potential credit headwinds, and are now returning to organic growth initiatives. Credit quality trends have stabilised, with provisions for credit losses peaking in prior quarters. Capital markets activity has been a bright spot, supported by heightened trading volumes and a resurgence in M&A activity.
Asset managers have also benefitted from improving fund flows as investor sentiment has rebounded sharply post-Liberation Day. Our highest weighted names include AGF Management, TD Bank, and Manulife, all of which offer solid balance sheets and growing dividends and benefit from industry tailwinds.
As of
| Company | Sector | % of Equities |
| Canadian Natural Resources Canadian Natural Resources (CNQ) is one of Canada’s largest energy producers with a diversified portfolio of crude oil, natural gas, and oil sands assets. CNQ has long-life, low-decline reserves and growing free cash flow. Its disciplined capital allocation, sustainable dividend growth, and operational excellence support its position as a leading low-cost producer. | Energy | 4.3% |
| Enbridge Enbridge (ENB) is one of the largest energy infrastructure companies in | Pipelines | 4.3% |
| Tourmaline Oil Tourmaline Oil (TOU) is Canada’s largest natural gas producer, which primarily focuses on exploration and development in the | Energy | 4.2% |
| Whitecap Resources Whitecap (WCP) is a Canadian oil-weighted producer with a growing footprint across | Energy | 4.2% |
| AGF Management AGF Management (AGF) is a Canadian-based independent asset management firm offering diversified investment solutions across retail, institutional, and alternative strategies. AGF has strengthened its platform through strategic partnership and expanding its private markets offerings. The firm is well-positioned to benefit from shifting investor preferences toward active and alternative strategies, with a scalable platform designed to deliver higher-margin growth and long-term value creation. | Financials | 4.0% |
| Nutrien Ltd Nutrien (NTR) is the world’s largest provider of crop inputs and services, including potash, nitrogen, and phosphate. Operating in over 40 countries, Nutrien supports global food security through its expansive retail network and low-cost production assets. Its scale, integrated business model, and focus on sustainability make it a key player in global agriculture. | Materials | 3.5% |
| TD Bank Toronto Dominion Bank (TD) is one of Canada’s largest banks, offering retail, commercial, wealth, and capital markets services across | Financials | 3.4% |
| TC Energy TC Energy (TRP) is a Canadian-based energy infrastructure company that owns and operates natural gas pipelines. TRP’s 93,600 km network of pipelines delivers 30% of North America’s natural gas, playing a vital role in transporting fuel to where it’s needed most. TRP spun off its liquids pipeline business under a new and dedicated company, South | Pipelines | 3.4% |
| RioCan REIT RioCan REIT is one of Canada’s largest REITs, focused on owning and developing retail and mixed-use properties in high-density urban markets. RioCan’s portfolio is anchored by grocery, pharmacy, and essential service tenants, supporting resilient cash flows. | Real Estate | 3.3% |
| Manulife Financial Founded in 1887, Manulife Financial is a leading insurance provider in Canada’s financial sector. Offering a comprehensive range of financial solutions, the company operates through a widespread network and digital platforms. With a focus on insurance, wealth management, and investments, Manulife’s commitment to innovation and customer satisfaction cements its prominent position in the global financial landscape. | Financials | 3.0% |
Outlook
We believe the recent period of solid performance in Canadian equities will continue, supported by attractive valuations, sound company fundamentals and a broadening of market performance. Despite similar expected earnings growth, the TSX Composite continues to trade at a 6x multiple discount relative to the S&P 500, offering attractive risk/reward characteristics. Amid elevated trade uncertainty, the Fund is well-diversified across resilient, high-quality sectors that are less exposed to tariffs. The pro-growth policy direction under the Carney government, including a renewed focus on deregulation and infrastructure acceleration, further supports a constructive backdrop for Canadian stocks. We also believe the A.I.-driven infrastructure cycle will be a durable long-term theme, supporting incremental investment in power generation, pipelines, and natural gas infrastructure, areas where the Fund maintains meaningful exposure. Canadian corporations are expected to deliver stable and growing returns to shareholders through rising dividends and share buybacks.
The Fund is focused on high-quality companies with strong balance sheets, robust free cash flow generation, and a proven ability to grow their dividends. Over the past five years, dividends received by the Fund on its portfolio have increased by 8.2 per cent per annum, exceeding the 7.5 per cent per annum growth rate for the benchmark. As a result, MCT offers an attractive mix of growing income combined with capital appreciation potential, with a constructive outlook for the second half of the year.
Middlefield Limited
Corporate Information
| Registered Office 28 Esplanade Jersey JE2 3QA | Custodian 2nd Floor |
| Directors | Registrar Jersey JE2 3RT |
| Service Providers Administrator and Secretary 28 Esplanade JE2 3QA | CREST Agent, |
| Investment Advisor 288 | Independent Auditor 13-14 Esplanade Jersey JE4 9RJ |
| Investment Manager Middlefield Limited Suite 3100 | Marketing Agent |
| Legal Advisers In Jersey 47 Esplanade Jersey JE1 0BD | Financial Calendar Annual Results Announced Regular Dividend Payment Dates2 Last Business Day of January, April, July and October |
| In Bay Adelaide Centre Box 20, Suite 2400 | Annual General Meeting Half Yearly Results Announced |
| Broker and Corporate Advisor | Information Sources For more information about the Company and Fund, visit the website http://www.middlefield.co.uk/ |
2 On
Financial Statements
Condensed Statement of Financial Position of the Fund
As at
| Notes | GBP | GBP | GBP | |
| Current assets | ||||
| Securities (at fair value through profit or loss) | 3 & 18 | 169,445,674 | 152,338,695 | 169,952,944 |
| Accrued dividend income | 679,051 | 708,104 | 743,674 | |
| Prepayments | 9,258 | 6,949 | 20,324 | |
| Cash and cash equivalents | 4 | 1,437,641 | 3,377,011 | 1,345,531 |
| 171,571,624 | 156,430,759 | 172,062,473 | ||
| Current liabilities | ||||
| Other payables and accruals | 5 | (418,238) | (389,998) | (434,929) |
| Interest payable | (38,158) | (76,953) | (48,282) | |
| Loan payable | 14 | (27,826,573) | (26,882,228) | (28,884,872) |
| (28,282,969) | (27,349,179) | (29,368,083) | ||
| Net assets | 143,288,655 | 129,081,580 | 142,694,390 | |
| Equity attributable to equity holders | ||||
| Stated capital | 6 | 49,661,314 | 49,704,414 | 49,661,314 |
| Retained earnings | 93,627,341 | 79,377,166 | 93,033,076 | |
| Total Shareholders’ equity | 143,288,655 | 129,081,580 | 142,694,390 | |
| Net asset value per redeemable participating preference share (pence) | 7 | 134.61 | 121.22 | 134.05 |
The financial statements and notes on pages 20 to 36 were approved by the directors on
Michael Phair Andrew Zychowski
Chairman Audit Committee Chair
The accompanying notes on pages 24 to 36 form an integral part of these financial statements.
Condensed Statement of Comprehensive Income of the Fund
For the period
| Six months ended | Six months ended 30 June 2024 | Year ended | ||||
| Revenue | Capital | Total | Total | Total | ||
| Notes | GBP | GBP | GBP | GBP | GBP | |
| Revenue | ||||||
| Dividend income and Interest income | 8 | 4,687,468 | – | 4,687,468 | 4,566,852 | 9,102,503 |
| Net movement in the fair value of securities (at fair value through profit or loss) | 9 | – | 209,612 | 209,612 | (363,728) | 12,852,158 |
| Net movement on foreign exchange | – | 904,756 | 904,756 | 595,337 | 1,579,028 | |
| Total revenue | 4,687,468 | 1,114,368 | 5,801,836 | 4,798,461 | 23,533,689 | |
| Expenditure | ||||||
| Investment management fees | 192,734 | 289,102 | 481,836 | 449,069 | 937,865 | |
| Custodian fees | 8,250 | – | 8,250 | 7,696 | 16,316 | |
| Corporate Broker’s fees | 34,417 | – | 34,417 | 32,262 | 67,175 | |
| Other expenses | 548,051 | – | 548,051 | 357,615 | 721,120 | |
| Operating expenses | 783,452 | 289,102 | 1,072,554 | 846,642 | 1,742,476 | |
| Net operating profit before finance costs | 3,904,016 | 825,266 | 4,729,282 | 3,951,819 | 21,791,213 | |
| Finance costs | (204,462) | (306,693) | (511,155) | (809,649) | (1,505,718) | |
| Profit before tax | 3,699,554 | 518,573 | 4,218,127 | 3,142,170 | 20,285,495 | |
| Withholding tax expense | (696,563) | – | (696,563) | (677,768) | (1,343,801) | |
| Net profit after taxation | 3,002,991 | 518,573 | 3,521,564 | 2,464,402 | 18,941,694 | |
| Profit per redeemable participating preference share – basic and diluted (pence) | 10 | 2.82 | 0.49 | 3.31 | 2.31 | 17.79 |
The total column of this statement represents the Fund’s Statement of Comprehensive Income, prepared in accordance with
There are £nil (2024: £nil) earnings attributable to the management shares.
The accompanying notes on pages 24 to 36 form an integral part of these financial statements.
Condensed Statement of Changes in Redeemable Participating Preference Shareholders’ Equity of the Fund
For the period
Account | Retained Income | Total | ||
| Notes | GBP | GBP | GBP | |
| At | 49,704,414 | 79,734,676 | 129,439,090 | |
| Profit for the period | – | 2,464,402 | 2,464,402 | |
| Dividends | 11 | – | (2,821,912) | (2,821,912) |
| At | 49,704,414 | 79,377,166 | 129,081,580 | |
| Buyback of shares during period | (43,100) | – | (43,100) | |
| Profit for the period | – | 16,477,292 | 16,477,292 | |
| Dividends | 11 | – | (2,821,382) | (2,821,382) |
| At | 49,661,314 | 93,033,076 | 142,694,390 | |
| Profit for the period | – | 3,521,564 | 3,521,564 | |
| Dividends | 11 | – | (2,927,299) | (2,927,299) |
| At | 49,661,314 | 93,627,341 | 143,288,655 |
The accompanying notes on pages 24 to 36 form an integral part of these financial statements.
Condensed Statement of Cash Flows of the Fund
For the period
| Six months ended 30 June | Year ended 31 December | |||
| 2025 | 2024 | 2024 | ||
| Notes | GBP | GBP | GBP | |
| Cash flows generated from/(used in) operating activities | ||||
| Net profit after taxation | 3,521,564 | 2,464,402 | 18,941,694 | |
| Adjustments for: | ||||
| Net movement in the fair value of securities (at fair value through profit or loss) | 9 | (209,612) | 363,728 | (12,852,158) |
| Realised gains on foreign exchange | (750,548) | (448,014) | (1,401,441) | |
| Unrealised gains on foreign exchange | (154,208) | (147,323) | (177,587) | |
| Payment for purchases of securities | (39,493,316) | (33,846,697) | (64,019,103) | |
| Proceeds from sale of securities | 41,892,779 | 27,787,776 | 53,561,820 | |
| Net movement in derivative financial instruments | (1,682,581) | – | – | |
| Operating cash flows before movements in working capital | 3,124,078 | (3,826,128) | (5,946,775) | |
| Decrease/(increase) in receivables | 75,689 | (60,854) | (109,799) | |
| (Decrease)/increase in payables and accruals | (26,815) | 7,188 | 23,448 | |
| Net cash flows generated from/(used in) operating activities | 3,172,952 | (3,879,794) | (6,033,126) | |
| Cash flows (used in)/generated from financing activities | ||||
| Repayments of borrowings | (144,303,757) | (190,761,180) | (352,730,557) | |
| Buyback of shares | – | – | (43,100) | |
| New bank loans raised | 144,276,912 | 196,432,615 | 361,474,806 | |
| Dividends paid | 11 | (2,927,299) | (2,821,912) | (5,643,294) |
| Net cash (used in)/generated from financing activities | (2,954,144) | 2,849,523 | 3,057,855 | |
| Net increase/(decrease) in cash and cash equivalents | 218,808 | (1,030,271) | (2,975,271) | |
| Cash and cash equivalents at the beginning of the period/year | 1,345,531 | 4,433,118 | 4,433,118 | |
| Effect of foreign exchange rate changes | (126,698) | (25,836) | (112,316) | |
| Cash and cash equivalents at the end of the period/year | 1,437,641 | 3,377,011 | 1,345,531 | |
| Cash and cash equivalents made up of: Cash at bank | 4 | 1,437,641 | 3,377,011 | 1,345,531 |
The accompanying notes on pages 24 to 36 form an integral part of these financial statements.
Notes to the Condensed Financial Statements of the Fund
For the period
1. General Information
The Company is a closed-ended investment company incorporated in Jersey on
The address of the Company’s registered office is 28, Esplanade,
The Fund’s shares have been admitted to the Official List of the
The functional and presentational currency of the Company and the Fund is Pounds Sterling (‘GBP’) as the Fund is trading on the London Stock Exchange’s Main Market.
The half-yearly financial report and interim condensed financial statements have not been audited or reviewed by the auditor,
The information presented for the year ended
2. Principal Accounting Policies
a. Basis of preparation
The interim condensed financial information for the period ended
The interim condensed financial statements have been prepared on the historical cost basis, except for the revaluation at fair value through profit or loss of investments, and in accordance with IFRS. The condensed statement of comprehensive income is presented in accordance with the Statement of Recommended Practice (SORP) ‘Financial Statements of
The condensed statement of financial position, condensed statement of comprehensive income, condensed statement of changes in redeemable participating preference shareholders’ equity and condensed cash flow statement refer solely to the Fund. The non-cellular assets comprise two Management Shares. However, there has been no trading activity with regards to the non-cellular assets.
Adoption of new standards and amendments
The following amendments to existing standards that are effective for the first time for the financial period beginning
Amendments to IAS 21, ‘The Effects of Changes in Foreign Exchange Rates: Lack of exchangeability’. (effective periods commencing on or after
The Company has adopted the amendment to IAS 21 for the first time in the current period. The amendment specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. A currency is considered to be exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations. If a currency is not exchangeable into another currency, an entity is required to estimate the spot exchange rate at the measurement date. An entity’s objective in estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. The amendments note that an entity can use an observable exchange rate without adjustment or another estimation technique.
There are no other standards, interpretations or amendments to the existing standards that are not yet effective that would be expected to have a significant impact on the Company.
New standards and interpretations not yet effective and have not been adopted early by the Company
- Amendments to IFRS 9 and IFRS 7 ‘Amendments to the Classification and Measurement of Financial Instruments’. (effective periods commencing on or after
1 January 2026 for IFRS). - IFRS 18 ‘Presentation and Disclosure in Financial Statements’. (effective periods commencing on or after
1 January 2027 for IFRS).
There are no other standards, interpretations or amendments to existing standards that are not yet effective that would be expected to have a significant impact on the Company.
b. Going concern
In the opinion of the directors, the Company and the Fund have adequate resources to continue in operational existence for the foreseeable future being at least the next twelve months from the approval of these financial statements. For this reason, the Financial Statements have been prepared using the going concern basis.
The directors considered, inter alia, the following factors:
• ongoing shareholder interest in the continuation of the Fund;
• the Fund has sufficient liquidity in the form of cash assets to meet all on-going expenses;
• should the need arise, the directors have the option to reduce dividend payments in order to positively affect the Fund’s cash flows; and
• the Fund’s investments in Canadian and
The directors appreciate the uncertainty of the current economic environment and continue to assess, in conjunction with the Investment Manager and the Investment Advisor, the situation and how it may impact the Company in the short and long term. The directors consider the Company to be well placed to withstand any significant adverse shocks and assume the going concern basis to be appropriate.
The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will continue to operate and meet its obligations as they fall due. However, the Company's ability to continue as a going concern is subject to material uncertainty.
Since the Company’s year end, on
The requisition notice received by the Company on
Following consultation with a number of the Company’s largest shareholders including Saba, and following constructive discussions with Saba, on
On
Although the Board is confident that the Company will have sufficient financial resources to meet its obligations due within twelve months from the date of approval of the financial statements, the uncertain future outcome of the Board’s deliberations indicates the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. Nevertheless, the Board believes that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.
3. Securities (at fair value through profit and loss)
| GBP | GBP | GBP | |
| 169,445,674 | 152,338,695 | 169,952,944 |
Please refer to Note 18 for the Schedule of Investments.
4. Cash and cash equivalents
| GBP | GBP | GBP | |
| Cash at bank | 1,437,641 | 3,377,011 | 1,345,531 |
Cash and cash equivalents comprise cash held by the Fund and bank balances with an original maturity of three months or less. The carrying value of these assets approximates their fair value.
5. Other payables and accruals
| GBP | GBP | GBP | |
| Investment management fees (Note 13) | 238,620 | 234,024 | 254,113 |
| Corporate Broker’s fees | 34,417 | 16,716 | 18,151 |
| Audit fees | 19,340 | 19,393 | 39,000 |
| Administration fees | 34,089 | 33,432 | 36,302 |
| General expenses | 17,937 | 18,918 | 17,970 |
| Registrar’s fees | 10,701 | 9,825 | 10,286 |
| Tax service fees | 10,313 | 10,241 | 6,894 |
| Custodian’s fees | 3,409 | 3,004 | 3,560 |
| Investor relations fee (Note 13) | 48,333 | 43,023 | 48,653 |
| 1,079 | 1,422 | – | |
| 418,238 | 389,998 | 434,929 |
6. Stated capital
The authorised share capital of the Fund is split into two management shares of no par value and an unlimited number of redeemable participating preference shares of no par value, the latter of which are attributable solely to the Fund.
| No. of shares | GBP | |
| Management shares issued | ||
| 2 management shares of no par value issued at | 2 | 2 |
| At | 2 | 2 |
| Redeemable participating preference shares issued (excluding shares held in treasury) | ||
| At | 106,447,250 | 49,661,312 |
| Movement for the year | – | – |
| At | 106,447,250 | 49,661,312 |
| Total stated capital as at | 49,661,314 |
The holders of redeemable participating preference shares are entitled to receive in proportion to their holdings all of the revenue profits of the Fund (including accumulated revenue reserves).
Each redeemable participating preference shareholder is entitled to one vote for each share held, provided all amounts payable in respect of that share have been paid.
Management shares are non-redeemable, have no right in respect of the accrued entitlement and have no right to participate in the assets of the Fund on a winding-up. In all other respects, the management shares have the same rights and restrictions as redeemable participating preference shares. Each management share entitles the holder to one vote for each share held.
Redeemable participating preference shares are redeemed at the absolute discretion of the directors. Since redemption is at the discretion of the directors, in accordance with the provisions of IAS 32, the redeemable participating preference shares are classified as equity. The Fund will not give effect to redemption requests in respect of more than 25 per cent. of the shares then in issue, or such lesser percentage as the directors may decide.
At the period end, there were 18,235,000 (
On
As reported in last year’s annual report, the Board believes that the Company’s shares are “excluded securities” under the FCA’s definitions of such and, as a result, the FCA’s restrictions on retail distribution do not apply. This status is reviewed annually and the Board intends to conduct the Company’s affairs to retain such status for the foreseeable future.
Retained Earnings
This reserve records all net gains and losses and transactions with owners not recorded elsewhere. This reserve is available for distribution to the shareholders. Dividends paid to shareholders are recognised directly in this reserve.
7. Net asset value per redeemable participating preference share
The net asset value per share of 134.61p (
8. Dividend and interest income
| Period ended | |||||
| Revenue | Capital | Total | |||
| GBP | GBP | GBP | GBP | GBP | |
| Interest income | 37,412 | – | 37,412 | 52,323 | 85,246 |
| Dividend income | 4,650,056 | – | 4,650,056 | 4,514,529 | 9,017,257 |
| 4,687,468 | – | 4,687,468 | 4,566,852 | 9,102,503 | |
9. Net movement in the fair value of securities
| Period ended | |||||
| Revenue GBP | Capital GBP | Total GBP | GBP | GBP | |
| Net movement in the fair value of securities (at fair value through profit or loss) | – | 209,612 | 209,612 | (363,728) | 12,852,158 |
10. Profit per redeemable participating preference share – basic and diluted
Basic profit per redeemable participating preference share is calculated by dividing the net profit attributable to redeemable participating preference shares of £3,521,564 (
11. Dividends
Dividends of
12. Taxation
The Fund is subject to
13. Related party transactions
The directors are regarded as related parties and key management personnel. Total directors’ fees earned during the period amounted to £73,249, of which £nil remained outstanding at the period end (
The directors held interests in shares and received dividends during the period.
The Investment Advisor and Investment Manager are regarded as a related party due to common ownership. Total management fees paid during the period amounted to £481,836, of which £238,620 remained outstanding at the period end (
The Investment Advisor and Investment Manager are also paid an additional fee for investor relations services. The fee paid during the period amounted to £95,776, of which £48,333 remained outstanding at the period end (
14. Loan payable
The Fund has a Credit Facility Agreement with RBC whereby RBC provides the Credit Facility, with a maximum principal amount of the lesser of
At
| Issue date | Maturity date | Loan amount |
As at
Interest on the loans is payable at the CORRA rate plus 0.60 per cent per annum.
Post
15. Security agreement
In connection with entry into the credit facility agreement, the Fund has entered into a general security agreement with RBC, pursuant to which the Fund has granted RBC interests in respect of collateral, being all present and future personal property, including the securities portfolio, as security for the Fund’s obligations under the credit facility agreement.
16. Financial instruments
Fair values
The carrying amounts of the investments, accrued income, other receivables, cash and cash equivalents, loan payable and other payables approximate their fair values. In 2015, the percentage of the value of portfolio assets which may be invested in securities listed on a recognised stock exchange outside
Management of capital
The Investment Manager manages the capital of the Fund in accordance with the Fund’s Investment Objectives and Policy.
The capital structure of the Fund consists of proceeds from the issue of preference shares, loans and reserve accounts. The Investment Manager manages and adjusts its capital in response to general economic conditions, the risk characteristics of the underlying assets and working capital requirements. Generally speaking, the Fund will reduce leverage when investments are likely to decrease in value and will increase leverage when investment appreciation is anticipated. In order to maintain or adjust its capital structure, the Fund may borrow or repay debt under its Credit Facility or undertake other activities deemed appropriate under the specific circumstances. The Fund and the Company do not have any externally imposed capital requirements. However, the Fund is subject to bank covenants in respect of leverage and complied with those covenants in the 6 months to
Investment and trading activities
It is intended that the Fund will continue throughout its life to be primarily invested in Canadian and
The Fund’s investing activities expose it to various types of risk that are associated with the financial instruments and markets in which it invests. The most important types of financial risk to which the Fund is exposed are market price risk, interest rate risk and currency risk.
Credit risk
Credit risk is the risk that an issuer or counterparty may be unable or unwilling to meet a commitment that it has entered into with the Fund.
The Fund’s principal financial assets are bank balances and cash, other receivables and investments as set out in the Statement of Financial Position which represents the Fund’s maximum exposure to credit risk in relation to the financial assets. The credit risk on bank balances is limited because the counterparties are banks with high credit ratings of A, AA- and A+ assigned by Standard and Poor’s rating agency. All transactions in listed securities are settled upon delivery using approved brokers.
The risk of default is considered minimal as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligations. Where the Investment Manager makes an investment in debt or corporate securities, the credit rating of the issuer is taken into account to manage the Company’s exposure to risk of default. Investments in debt or corporate securities are across a variety of sectors and geographical markets, to avoid concentration of credit risk.
The Fund’s maximum exposure to credit risk is the carrying value of the assets on the Statement of Financial Position.
Market price risk
Market price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. The Fund’s exposure to market price risk is comprised mainly of movements in the value of the Fund’s investments.
It is the business of the Investment Manager to manage the portfolio and borrowings to achieve the best returns. The directors manage the risk inherent in the portfolio by monitoring, on a formal basis, the Investment Manager’s compliance with the Company’s stated Investment Policy and reviewing investment performance.
Country risk
On
The Fund invests primarily in Canadian and
Fair value measurements
IFRS 13 establishes a fair value hierarchy that prioritises the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under IFRS 13 are as follows:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; or
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); or
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
The level in the fair value hierarchy within which the fair value measurement is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.
The determination of what constitutes ‘observable’ requires significant judgment by the directors. The directors consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.
The following tables present the Fund’s financial instruments by level within the valuation hierarchy as of
| Level 1 | Level 2 | Level 3 | Total | |
| GBP | GBP | GBP | GBP | |
| Financial assets | ||||
| Securities (at fair value through profit or loss) | 169,445,674 | – | – | 169,445,674 |
| Level 1 GBP | Level 2 GBP | Level 3 GBP | Total GBP | |
| Financial assets | ||||
| Securities (at fair value through profit or loss) | 152,338,695 | – | – | 152,338,695 |
| Level 1 GBP | Level 2 GBP | Level 3 GBP | Total GBP | |
| Financial assets | ||||
| Securities (at fair value through profit or loss) | 169,952,944 | – | – | 169,952,944 |
The Fund holds securities that are traded in active markets. Such financial instruments are classified as Level 1 of the IFRS 13 fair value hierarchy. There were no transfers between Level 1, 2 and 3 in the period.
Price sensitivity
At
At
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The Fund’s interest rate sensitive assets and liabilities mainly comprise cash and cash equivalents, debt securities and loan payable. The cash and cash equivalents are subject to floating rates and are considered to be part of the investment strategy of the Fund. No other hedging is undertaken in respect of this interest rate risk.
There were no fixed rate assets or liabilities at
The following table details the Fund’s exposure to interest rate risk at
| Floating rate assets | ||||||
| Weighted average interest at year end | GBP | Weighted average interest at year end | GBP | Weighted average interest at year end | GBP | |
| Assets | ||||||
| Cash and cash equivalents | * | 1,437,641 | * | 3,377,011 | * | 1,345,531 |
| 1,437,641 | 3,377,011 | 1,345,531 | ||||
* Interest on bank balances is not material to the financial statements and are based on prevailing bank base rates.
| Floating rate liabilities | |||
| GBP | GBP | GBP | |
| Liabilities | |||
| Loan payable (See Note 14) | 27,826,573 | 26,882,228 | 28,884,872 |
| 27,826,573 | 26,882,228 | 28,884,872 | |
The above analysis excludes short-term debtors and creditors as all material amounts are non-interest bearing.
Interest rate sensitivity analysis
At
Liquidity risk
Liquidity risk is the risk that the Fund cannot meet its liabilities as they fall due. The Fund’s primary source of liquidity consists of cash and cash equivalents, securities at fair value through profit or loss and the credit facility.
The Fund’s investments are considered to be readily realisable, predominantly issued by Canadian and
As at
| Less than 1 month | 1-3 months | 3 months to 1 year | More than 1 year | Total | |
| GBP | GBP | GBP | GBP | GBP | |
| Assets | |||||
| Securities (at fair value through profit or loss) | 169,445,674 | – | – | – | 169,445,674 |
| Accrued dividend income | 679,051 | – | – | – | 679,051 |
| Cash and cash equivalents | 1,437,641 | – | – | – | 1,437,641 |
| 171,562,366 | – | – | – | 171,562,366 | |
| Liabilities | |||||
| Other payables and accruals | (418,238) | – | – | – | (418,238) |
| Interest payable | (38,158) | – | – | – | (38,158) |
| Loan payable | (27,826,573) | – | – | – | (27,826,573) |
| (28,282,969) | – | – | – | (28,282,969) | |
| 143,279,397 | – | – | – | 143,279,397 |
As at
| Less than 1 month GBP | 1-3 months GBP | 3 months to 1 year GBP | More than 1 year GBP | Total GBP | |
| Assets | |||||
| Securities (at fair value through profit or loss) | 152,338,695 | – | – | – | 152,338,695 |
| Accrued dividend income | 514,691 | 193,413 | – | – | 708,104 |
| Cash and cash equivalents | 3,377,011 | – | – | – | 3,377,011 |
| 156,230,397 | 193,413 | – | – | 156,423,810 | |
| Liabilities | |||||
| Other payables and accruals | (389,998) | – | – | – | (389,998) |
| Interest payable | (76,953) | – | – | – | (76,953) |
| Loan payable | (26,882,228) | – | – | – | (26,882,228) |
| (27,349,179) | – | – | – | (27,349,179) | |
| 128,881,218 | 193,413 | – | – | 129,074,631 |
As at
| Less than 1 month | 1-3 months | 3 months to 1 year | More than 1 year | Total | |
| GBP | GBP | GBP | GBP | GBP | |
| Assets | |||||
| Securities (at fair value through profit or loss) | 169,952,944 | – | – | – | 169,952,944 |
| Other receivables | 719,453 | 24,221 | – | – | 743,674 |
| Cash and cash equivalents | 1,345,531 | – | – | – | 1,345,531 |
| 172,017,928 | 24,221 | – | – | 172,042,149 | |
| Liabilities | |||||
| Other payables and accruals | (434,929) | – | – | – | (434,929) |
| Interest payable | (21,788) | (26,494) | – | – | (48,282) |
| Loan payable | (11,109,566) | (17,775,306) | – | – | (28,884,872) |
| (11,566,283) | (17,801,800) | – | – | (29,368,083) | |
| 160,451,645 | (17,777,579) | – | – | 142,674,066 |
Currency risk
The Fund is denominated in GBP, whereas the Fund’s principal investments are denominated in CAD and USD. Consequently, the Fund is exposed to currency risk. The Fund’s policy is therefore to actively monitor exposure to currency risk. The Board reserves the right to employ currency hedging but, other than in exceptional circumstances, does not intend to hedge. The Board considers that exposure was significant at the period end.
The Fund’s net exposure to CAD currency at the period end was as follows:
| GBP | GBP | GBP | |
| Assets | |||
| Securities (at fair value through profit or loss) | 169,445,674 | 149,459,234 | 169,952,944 |
| Cash and cash equivalents | 997,976 | 2,750,577 | 757,724 |
| Accrued income | 679,051 | 708,104 | 743,674 |
| 171,122,701 | 152,917,915 | 171,454,342 | |
| GBP | GBP | GBP | |
| Liabilities | |||
| Loan payable | 27,826,573 | 26,882,228 | 28,884,872 |
| Other payables and accruals | 363 | – | – |
| Interest payable | 38,158 | 76,953 | 48,282 |
| 27,865,094 | 26,959,181 | 28,933,154 |
The Fund’s net exposure to USD currency at the period end was as follows:
| GBP | GBP | GBP | |
| Assets | |||
| Securities (at fair value through profit or loss) | – | 2,879,461 | – |
| Cash and cash equivalents | 120,782 | 91,514 | 101,771 |
| 120,782 | 2,970,975 | 101,771 |
Sensitivity analysis
At
At
17. Cash Flow statement reconciliation of financing activities
| Non-cash changes | ||||||
1 January | Foreign exchange | Fair value | 30 June | |||
| 2025 | Cash flows | Acquisition | movements | changes | 2025 | |
| GBP | GBP | GBP | GBP | GBP | GBP | |
| Financial liabilities held at amortised cost | 28,884,872 | (26,845) | – | (1,031,454) | – | 27,826,573 |
| Total | 28,884,872 | (26,845) | – | (1,031,454) | – | 27,826,573 |
| Non-cash changes | ||||||
1 January | Foreign exchange | Fair value | 31 December | |||
| 2024 | Cash flows | Acquisition | movements | changes | 2024 | |
| GBP | GBP | GBP | GBP | GBP | GBP | |
| Financial liabilities held at amortised cost | 21,831,966 | 8,744,249 | – | (1,691,343) | – | 28,884,872 |
| Total | 21,831,966 | 8,744,249 | – | (1,691,343) | – | 28,884,872 |
18. Schedule of Investments – Securities (at fair value through profit or loss)
As at
| Description | Shares/Units | Book Cost GBP | Bid-Market Value GBP | % of Net Assets | % of Portfolio |
| Equities Utilities: | |||||
| Brookfield Infrastructure Partners L.P. | 180,000 | 4,337,056 | 4,392,317 | 3.07% | 2.59% |
| Brookfield Renewable Partners L.P. | 255,000 | 4,761,962 | 4,709,140 | 3.29% | 2.78% |
| 9,099,018 | 9,101,457 | 6.36% | 5.37% | ||
Basic Materials: | |||||
| Nutrien Ltd. | 140,000 | 5,555,657 | 5,922,244 | 4.13% | 3.50% |
| Energy: | |||||
| Arc Resources Ltd. | 160,000 | 2,043,557 | 2,453,019 | 1.71% | 1.45% |
| Canadian Natural Resources Limited | 320,000 | 4,720,869 | 7,329,091 | 5.11% | 4.33% |
| MEG Energy Corp. | 300,000 | 4,023,346 | 4,117,798 | 2.87% | 2.43% |
| Peyto Exploration & Development Corp. | 365,000 | 2,684,145 | 3,793,136 | 2.65% | 2.24% |
| Topaz Energy Corp. | 315,000 | 2,923,886 | 4,308,517 | 3.01% | 2.54% |
| Tourmaline Oil Corp. | 205,000 | 8,168,069 | 7,191,992 | 5.02% | 4.24% |
| Whitecap Resources Inc. | 1,440,000 | 7,039,102 | 7,050,825 | 4.92% | 4.16% |
| 31,602,974 | 36,244,378 | 25.29% | 21.39% | ||
| Financials: | |||||
| AGF Management Limited | 955,000 | 4,559,419 | 6,725,361 | 4.69% | 3.97% |
| Bank of Montreal | 60,000 | 4,003,803 | 4,838,613 | 3.38% | 2.86% |
| Canadian Imperial Bank of Commerce | 85,000 | 2,611,915 | 4,385,735 | 3.06% | 2.59% |
| Manulife Financial Corporation | 220,000 | 2,980,200 | 5,125,869 | 3.58% | 3.03% |
| Power Corporation of Canada | 155,000 | 3,500,586 | 4,404,358 | 3.07% | 2.60% |
| Royal Bank of Canada | 50,000 | 3,781,082 | 4,790,987 | 3.34% | 2.83% |
| 108,000 | 4,803,184 | 5,782,833 | 4.04% | 3.41% | |
| 26,240,189 | 36,053,756 | 25.16% | 21.29% | ||
| Industrials: | |||||
| Magna International Inc. | 115,000 | 3,162,724 | 3,219,133 | 2.25% | 1.90% |
| Description | Shares/Units | Book Cost GBP | Bid-Market Value GBP | % of Net Assets | % of Portfolio |
| Pipelines: | |||||
| Enbridge Inc. | 220,000 | 6,011,206 | 7,246,147 | 5.06% | 4.28% |
| Gibson Energy Inc. | 385,000 | 5,489,785 | 4,905,423 | 3.42% | 2.89% |
| Keyera Corp. | 150,000 | 1,980,830 | 3,573,574 | 2.49% | 2.11% |
| Pembina Pipeline Corporation | 170,000 | 3,614,436 | 4,651,372 | 3.25% | 2.75% |
| TC Energy Corporation | 160,000 | 4,921,769 | 5,668,915 | 3.96% | 3.35% |
| 22,018,026 | 26,045,431 | 18.18% | 15.38% | ||
| Power and Utilities: | |||||
| AltaGas Ltd. | 200,000 | 2,877,590 | 4,230,710 | 2.95% | 2.50% |
| Capital Power Corporation | 135,000 | 2,375,067 | 3,953,808 | 2.76% | 2.33% |
| 5,252,657 | 8,184,518 | 5.71% | 4.83% | ||
| Real Estate: | |||||
| Canadian Apartment Properties Real Estate Investment Trust | 145,000 | 3,349,980 | 3,438,936 | 2.40% | 2.03% |
| Chartwell Retirement Residences | 470,000 | 2,954,960 | 4,637,833 | 3.24% | 2.73% |
| Choice Properties Real Estate Investment Trust | 510,000 | 3,933,239 | 4,041,863 | 2.82% | 2.39% |
| Dream Industrial Real Estate Investment Trust | 480,000 | 3,416,733 | 3,018,113 | 2.11% | 1.78% |
| First Capital Real Estate Investment Trust | 480,000 | 4,866,870 | 4,646,610 | 3.24% | 2.73% |
| Granite Real Estate Investment Trust | 65,000 | 2,477,931 | 2,400,738 | 1.68% | 1.42% |
| 605,000 | 2,815,198 | 2,428,136 | 1.69% | 1.43% | |
| 340,136 | 2,722,055 | 2,671,991 | 1.86% | 1.58% | |
| RioCan Real Estate Investment Trust | 600,000 | 5,515,949 | 5,666,989 | 3.95% | 3.33% |
| Sienna Senior Living Inc. | 360,000 | 3,065,893 | 3,650,632 | 2.55% | 2.15% |
| SmartCentres Real Estate Investment Trust | 275,000 | 3,609,356 | 3,755,517 | 2.62% | 2.22% |
| 38,728,164 | 40,357,358 | 28.16% | 23.79% | ||
| Rogers Communications Inc. | 200,000 | 4,130,041 | 4,317,399 | 3.01% | 2.55% |
| 145,789,450 | 169,445,674 | 118.25% | 100.00% | ||
| Total investments ( | 145,789,450 | 169,445,674 | 118.25% | 100.00% | |
| Total investments ( | 148,566,473 | 169,952,944 | 119.10% | 100.00% |
Statement of Financial Position of the Company
As at
| 30.06-2025 | 30.06-2024 | 30.12-2024 | ||
| Notes | GBP | GBP | GBP | |
| Current Assets | ||||
| Other Receivables | 2 | 2 | 2 | |
| Net Assets | 2 | 2 | 2 | |
| Equity Attributable to equity holders | ||||
| Stated capital | 2 | 2 | 2 | 2 |
| Total Shareholders’ Equity | 2 | 2 | 2 |
The financial statements and notes on pages 37 to 38 were approved by the directors on
Michael Phair Andrew Zychowski
Director Director
Notes to the Financial Statements of the Company
For the period
1. Basis of accounting
The separate financial statements of the Company have been prepared showing results of the Company only. They have been prepared in accordance with
The financial statements of the Fund have been prepared on the historical cost basis, except for the measurement at fair value of investments and derivatives, and in accordance with
A separate Statement of Comprehensive Income, Statement of Changes in Equity and Cash Flow Statement have not been prepared as there have been no results or cash flows for the Company for this year or the preceding year.
There are no standards and interpretations in issue but not effective that the directors believe would or might have a material impact on the financial statements of the Company.
Judgements and estimates used by the directors
The preparation of financial statements in compliance with IFRS requires the directors to make judgements, estimates and assumptions that affect the application of policies and reported amount of assets and liabilities, income and expenses. The estimates and associated liabilities are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent. For the purposes of these financial statements, there were no specific areas in which judgement was exercised and no estimation was required by the directors.
2. The Company’s stated capital
The authorised share capital of the Company is split into two management shares of no par value.
| No. of shares | GBP | |
| Management shares issued At | 2 | 2 |
3. Taxation
The Company adopted
4. Ultimate holding company
The ultimate holding company is Middlefield Limited.
Definitions
| AIC | |
| AIC Code | The AIC Code of Corporate Governance |
| Auditor | |
| Benchmark | The S&P TSX Composite High Dividend Index |
| CAD | Canadian Dollar |
| Cell or Fund | Middlefield Canadian Income – GBP PC |
| Company or MCT | Middlefield Canadian Income PCC |
| Credit Facility | The on-demand credit facility with RBC |
| ESG | Environmental, Social and Governance |
| FRC | |
| Fund | Middlefield Canadian Income – GBP PC |
| Fund Shares | The redeemable participating preference shares of no par value in the Fund |
| GBP | Sterling |
| Half Yearly Report | The half yearly report and interim condensed financial statements (unaudited) |
| IAS | International Accounting Standards |
| IFRSIC | International Financial Reporting Standards Interpretations Committee |
| IFRS | International Financial Reporting Standards |
| JFSC | Jersey |
| Listing Rules | The listing rules made by the |
| NAV | Net Asset Value of the Company in GBP |
| Prime Loan | Loans to which the Prime Rate can be applied |
| Prime Rate | Annual interest rate set by Canada’s major banks and financial institutions |
| RBC | Royal Bank of Canada |
| REIT | Real estate investment trust |
| SID | Senior Independent Director |
| SORP | Statement of recommended practice |
| Term CORRA loan | The amount drawn under the Credit Facility Agreement |
Investment Objective: To provide Shareholders with a high level of dividends as well as capital growth over the longer term. The Fund intends to pay dividends on a quarterly basis each year.
Investment Policy3: The Fund seeks to achieve its investment objective by investing predominantly in the securities of companies and REITS domiciled in
3.LR.11.2.6: No more than 10% of the Company’s total assets may be invested in other listed closed-ended investment companies unless such investment companies themselves have published investment policies to invest no more than 15% of their total assets in other listed closed-ended investment companies, in which case the restriction does not apply.
288
EC2M 4QP
Telephone +44 (0) 20 7814 6644
Fax +44 (0) 20 7814 66 11
Suite 3100
Telephone 001 (416) 362-0714
