Like childbirth, we think 2020 will be remembered for what it produced rather than the agony of the experience. Events have conspired that, rather than the sickly and unpopular child it once was, sustainability as an investment theme has become a thriving, healthy teenager which seems destined for great things (note the torturous lack of gender specifics in this sentence, another thing we can thank 2020 for). As with many trends that were already in progress at the start of 2020, the speed at w
Companies: JGC MWY BERI MNP ATST MHN IEM PAC JFJ HNE
Mid Wynd International Investment Trust (MWY) invests in a portfolio of high-quality global stocks, with the objective of growing its investors’ real returns. The management team consist of Simon Edelsten, Alex Illingworth and Rosanna Burcheri. They make heavy use of long-term themes across the world, anticipating how they will evolve over three to five years. The team are also valuation-sensitive, and typically use a cash flow or asset-based valuation when determining the underlying holdings. A
Companies: Mid Wynd International Investment Trust PLC
ESG investing, Environmental, Social, and Governance respectively, is much in vogue and has ended up weaving its way into almost every manager’s investment thesis, though with varying degrees of genuine integration. In this article we shine light on where ESG originated from, how Kepler Trust Intelligence goes about analysing ESG, and examples of trusts which demonstrate both good ESG credentials but also the nuances of assessing ESG.
Companies: NESF BERI UKW TRIG IEM HNE MWY JGC
2020 has so far proven to be the latest episode in a long period of technology outperformance, as we observed in this article. Over the past decade, technology-related companies have tended to perform like consumer staples or defensives on the downside, and like high-growth discretionary stocks on the upside: an ideal combination from the investor’s point of view. As a result the indices (and fund managers’ portfolios) are increasingly correlated to ‘big tech’. How do investors who want a divers
Companies: ATT PCT SMT BBH UKW IBT MHN IEM BERI MWY
In the financial markets, the biggest winners from the crisis so far have – without a doubt – been the technology sectors. Software, hardware, ecommerce and related sectors have outperformed in the immediate aftermath (as we discussed in a recent strategy note). They also seem likely to benefit from some of the likely long-lasting changes to society that the crisis will forge. This is the latest episode in a long period of outperformance. Looking back over the past decade, technology-related com
Companies: PCT ATT JFJ MWY SMT MNL BBOX
To those who regularly invest in investment trusts, discounts can often be part of the opportunity. But to others, discounts are an extra complication, not to mention an extra risk. The last six weeks has probably strengthened the prejudices of both sides on the topic. The recent bout of volatility has – in our opinion – more clearly exposed both the advantages and the disadvantages of investment trusts. Our perspective is that discounts are like a drunk friend. They are fun to have around, but
Companies: PLI BHGU SMT RCP TIGT MWY RICA JAM BRWM
The aim of Mid Wynd International Investment Trust (MWY) is to grow investors’ real wealth by investing in a portfolio of high-quality stocks across the globe. The team, led by Simon Edelsten, Alex Illingworth and Rosanna Burcheri, take a long-term view to investing, identifying longterm ‘themes’ across the globe and anticipating how each will develop over the next three to five years. Detailed analysis is then conducted into each theme, before the team invest in those which they believe to be t
Companies: Mid Wynd International Investment Trust
The COVID-19 pandemic is far from over, but with March coming to a close we have perhaps seen the end of the first act. Most of the developed world is in various degrees of ‘lockdown’; anxiously watching poorly reported – and often poorly understood – numbers for indications that their government’s strategy is working. Meanwhile equity markets saw one of their worst ever quarters in Q1 2020, as whole swathes of the economy were shut down by government diktat. The speed with which the situation d
Companies: BHGU BHMG RICA PSH BGUK MWY USA BGEU SMT MNL ATT FGT TIGT
This time last year the team at Kepler Trust Intelligence (KTI) chose their personal ‘top picks’ within the investment trust universe for 2019. The aim was for each member of the team to choose the trust they believed would perform best from an investor’s point of view; i.e. in share price terms rather than NAV. Any trust could be selected, regardless of whether it was equity-focused or not. Overall the year was a prosperous one for those brave enough to hang on throughout. The MSCI World Index
Companies: STS AJOT TRG MWY
All leaderships come to an end at some point. With investment trusts, however, it is rarely the electorate (aka shareholders) who initiate the change in manager. In some cases it is the board. In others, it is the management company itself recognising the need for a new manager, and replacing them before the board feels the need for more decisive action. A change instigated by the board will often result in a transformative outcome for a trust, perhaps with a change in management house as well a
Companies: JAM BRNA BRIG MWY
nvestors are increasingly turning to global funds. We suggest that concerns around Brexit are most likely leading investors to seek diversification overseas. In terms of retail sales the global sector has been comfortably the most popular among investors over the past few quarters. In 2018 global funds had close to twice the level of retail sales of any other sector, as can be seen in the chart below. A similar trend has emerged in the investment trust sphere, where the average discount within t
Companies: SMT MNP MNKS MWY
Mid Wynd (MWY) aims to identify companies which can generate long term growth whilst keeping a sharp eye on protecting investors’wealth during negative periods. Managers Simon Edelsten, Alex Illingworth and Rosanna Burcheri, look for longer term growth areas around the world and companies that can invest and grow in value even when economies are dull. They group these ideas into broad industry themes and then ensure they have spread investments between different themes with different drivers an
Mid Wynd (MWY) aims to grow real wealth through investing in high-quality stocks across the world. The managers, Simon Edelsten, Alex Illingworth and Rosanna Burcheri, take a long-term perspective, looking to invest in companies which have relatively low business risk (and low leverage), high barriers to entry and strong secular growth - regardless of the short-term economic environment. They aim to find these companies by first identifying themes which the managers believe have long-term tailwi
Over the last few years, fees and costs have become a lightning rod in the investment world, attracting the scrutiny of regulators, the media and the public alike. Investment trusts, with their independent boards acting partly on the views of shareholders, have been quick to respond. We review the changing fee landscape among investment trusts in 2018 through proprietary analysis, and discuss those which boards have done most to reduce costs for investors.
Companies: PCT SMT HSL CTY JAM IPU MWY LWI
Mid Wynd International is a core global equity offering which aims to grow wealth steadily throughout the cycle, all the while avoiding the downside during tough times. Fund managers Simon Edelsten, Alex Illingworth and Rosanna Burcheri, apply a rigorous valuation-driven investment process to create a reasonably concentrated portfolio of global equities arranged around themes. Secular growth areas account for a large proportion of the trust’s impetus, principally due to the bias towards technolo
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Ramsdens interim results highlight the resilience of the business model. Despite the prolonged UK lockdown and international travel restrictions materially impacting the business, we believe a pre-tax loss of only £0.1m was a great result. Moreover, the balance sheet remains strong with net assets up £0.5m HoH to £35.5m and net cash at £15m. While FY2021 has been tough due to COVID-19, management remain confident and are positioning the business for growth with a pipeline of six new stores, incl
Companies: Ramsdens Holdings PLC
NextEnergy Solar Fund’s full year results announcement shows a business continuing to outperform on development, output and pricing. The portfolio now stands at 814MW and the company has already reached its targeted subsidy free capacity of 150MW. A pipeline of international and battery storage opportunities gives NESF considerable diversification potential. With a target dividend of 7.16p for FY 22, NESF continues to offer a well-supported, RPI-linked income stream.
Companies: Nextenergy Solar Fund
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
Trident has announced the appointment of a new Non-Executive Chairman. Paul Smith, an ex-Glencore senior executive will join the company on 21st June. Mr Smith has made an immediate £1m equity investment in Trident at a premium and retains the right to make a further £1m investment for a total proposed investment of £2m.
Companies: Trident Royalties Plc
What’s new: Full year results were ahead of our March 2021 forecasts, as set out in the 20 April trading update.
- AuM rose 35% over the year to £9.0bn on 31 March 2021;
- Net inflows added £755m, with 2H net inflows of £427m 30% higher than 1H net inflows of £328m; annualised growth rose from 10% to 11.4%;
- Revenue rose 9.3% to £23.35m (6% above Zeus estimate: £22.0m);
- Adj EBIT rose 25.6% to £11.4m (13% above Zeus estimate: £10.1m);
- Adj diluted EPS rose 22.8% to 14.7p (12% abov
Companies: Tatton Asset Management Plc
Palace Capital’s (PCA) FY21 results were robust, with a clear improvement in the second half. With a good level of rent collection continuing, Q421 DPS was increased by 20%, to a level that management hopes to at least maintain through FY22. Importantly, the flagship Hudson Quarter (HQ) development in York completed in April, on budget. We expect HQ to be a significant driver of forecast increasing returns and deleveraging.
Companies: Palace Capital plc
Augmentum Fintech’s (“AF”) disciplined approach and diversified portfolio has delivered value uplift. A number of follow-on rounds and a maiden exit (Dext) added 14p to the NAV – now standing at 130.4p; +12% yoy and 9% in H2 alone. £31m capital has been deployed since Mar-20, including 4 new investments. There is a significant pipeline of new opportunities (£924m) with £144m (across 24 deals) in active development. In order to pursue these, AF has announced that it is seeking to raise at least £
Companies: Augmentum Fintech
The repeal of the Berlin rent cap (the ‘Mietendeckel’), ruled unconstitutional, is a significant positive for Phoenix Spree Deutschland (PSD). It allows a resumption of its core reversionary rent strategy, providing greater flexibility in the extraction of the value embedded in the portfolio. With a continuing discount to net assets, the board has stepped up the share repurchase programme, aiming to ensure that the share price better reflects its view of intrinsic value and the improved outlook.
Companies: Phoenix Spree Deutschland Fund
Despite the turbulence in power prices triggered by the pandemic, NextEnergy Solar Fund (NESF) achieved its dividend target of 7.05p for the financial year. The 2022 dividend target was increased in line with RPI to 7.16p per ordinary share for the year ended 31 March 2022, payable quarterly. We believe given the sharp increase in power prices and the hedging strategies used by NESF, cashflow is likely to be significantly higher over the next two to three years than what is incorporated in NESF’
Trident Royalties Plc (AIM: TRR) has, this morning, announced the appointment of Paul Smith as Non-Executive Chairman. Alongside the appointment Mr Smith will invest up to £2 million into the company, of which £1 million will be an immediate subscription at 40p/ share (representing a 4% premium to the 5-day VWAP), with up to a further £1 million at the same price within 12 months. The current Chair, James Kelly, will remain on the board as a Non-Executive Director. Non-Executive Director Mark Po
Final results show impressive growth and strong operating margins; +5% ahead of our recently upgraded forecasts – with challenges posed by COVID navigated successfully. FuM is growing very strongly. Flows have recovered over the last 12m and continue to build, hitting £9.5bn post-period end already. Management has outlined an aspiration to reach £15bn FuM in 3 years. We leave headline forecasts unchanged, but see upside as FuM continues to grow. With scope to double the business in the medium te
Companies: M&G Plc
Urban Logistics REIT (“ULR”) has delivered a watershed year: doubling the portfolio with a disciplined approach focusing on value-add opportunity through reversion and regear. Finals show rental income doubling from acquired assets, with recurring EPS in line with our forecast. EPRA NAV was 6% ahead of N+1Se, as valuation yields tightened. The manager has secured a further c.£150m pipeline of similarly attractive assets. We make a modest upgrade to EPRA NAV on better valuation. We see sustained
Companies: Urban Logistics REIT plc
Tatton’s FY21 results highlight strong momentum in the business. Current AUM inflows have returned to pre-Covid levels and now average £100m per month, with the £9.0bn AUM milestone reached on 31 Mar (subsequently surpassed, reaching £9.5bn on 15 June). That translated to 35% AUM growth for FY21 (AUM 31 Mar 20: 6.7bn)
Tavistock Investments Plc (“Tavistock”) consists of Tavistock Wealth (an investment management business) and Tavistock Advisory (several financial advisory businesses). The Company has announced the sale of Tavistock Wealth for up to £40m which compares extremely favourably to the £16m Group market capitalisation prior to the announcement. Tavistock also provided a trading update confirming that H2 2021 (year end March) followed the strong H1 performance. Full year underlying EBITDA of £2.77m (+
Companies: Tavistock Investments PLC