TIDMMWY
RNS Number : 9629X
Mid Wynd Inter Inv Trust PLC
27 February 2017
Mid Wynd International Investment Trust PLC (the 'Company')
Half-Yearly Financial Report (unaudited) for the six months
ended 31 December 2016
This announcement contains regulated information
Chairman's statement
Board changes
In my first report to shareholders as Chairman following Richard
Burns' retirement at the end of the Annual General Meeting held on
7 November 2016, I would like to thank him on behalf of the Board
for his outstanding service to the Company. He was an advisor to
the Company before its flotation in 1981, served as a Director
thereafter, acted as Fund Manager and became Chairman in 2011. Over
the years, his guidance, insight and wisdom made an invaluable
contribution. We shall miss him and wish him well for the
future.
At the time of Richard's retirement, the Board appointed David
Kidd as a non-executive independent Director of the Company. He has
considerable experience in investment management and as a director
of investment trusts. We look forward to working with him.
Performance
Over the six months to 31 December 2016 the Company's net asset
value, on a capital return basis, increased by 11.7% to 412.89
pence per share and its share price increased by 18.9% to 418.50
pence per share. This compares with the capital return of 14.3%
from the MSCI All Country World Index. The shares outperformed the
net asset value and index during the period, reflecting the
re-rating of the shares and the reversal of the discount to net
asset value that existed at the end of June, following the EU
referendum result. The shares ended the period at a premium of 1.4%
to the net asset value. This compares to a discount of 4.8% as at
30 June 2016.
The net asset value total return for the period, which is based
on the combination of capital appreciation and dividends (assuming
dividends are re-invested), was 12.5%, compared to the total return
of 15.3% produced by the MSCI All Country World Index. While the
net asset value underperformed the index for the period, the
Company's longer term returns remain strong with the net asset
value outperforming the index by 9.2 percentage points (net asset
value total return of 56.1% versus 46.9% from the index) since
Artemis' appointment as Investment Manager on
1 May 2014.
Revenue account and dividend
For the six months ended 31 December 2016 the Company had a
revenue return of 1.66 pence per share. An interim dividend of 1.70
pence per share, 3% higher than last year's equivalent (2016: 1.65
pence), will be paid on 7 April 2017 to shareholders on the
register on 10 March 2017, with an ex-dividend date of 9 March
2017.
The Company's Registrar offers a Dividend Reinvestment Plan; the
final date for shareholders to elect to participate for this
dividend is 17 March 2017.
Share capital
With the reversal of the discount to net asset value during July
2016, demand for the Company's shares resulted in 1,030,000 new
shares being issued in the period. These shares were issued at a
premium to the prevailing net asset value, resulting in a small
accretion of value to the net asset value for existing
shareholders, and generated GBP4.1 million of new capital for the
Company.
In addition, 260,116 new shares were issued to Drumeldrie
Investments Limited, in exchange for GBP1.0 million on 30 September
2016. This represents the final issue of shares to Drumeldrie. In
aggregate, across all four tranches, this transaction resulted in
the issue of 1,158,122 shares, in exchange for total proceeds of
GBP4.1 million.
Since the end of the period, a further 350,000 new shares have
been issued, at a premium to net asset value, to meet continuing
demand for the Company's shares in the market, raising a further
GBP1.5 million.
Outlook
Following a long period of sluggish growth, the global economy
is accelerating again. With this faster growth we can expect rising
inflation and higher interest rates. Indeed, we are already seeing
some evidence of this. As the Investment Manager looks for
companies with strong market positions and balance sheets,
operating in sectors with attractive, long term growth prospects,
it is hoped the portfolio will benefit over the long term from this
economic growth and provide shareholders with some protection
against inflation. At the same time, these attributes are expected
to provide a degree of capital protection for shareholders in the
event of any market turbulence.
Keep up-to-date...
Shareholders can keep up to date with developments between
formal reports by visiting midwynd.co.uk, where you will find
information on the Company and a factsheet that is updated each
month. In addition, the Board is always keen to hear from
shareholders. Should you wish, you can
e-mail me at midwyndchairman@artemisfunds.com.
Malcolm Scott
Chairman
27 February 2017
Investment Manager's review
Review of period
The second half of 2016 saw a sharp change in market conditions.
Although the end of very low interest rates and bond yields has
been in prospect for some years, it took the surprise election of
Donald Trump to trigger a sharp rise in US bond yields. In equity
markets, the fall in bond prices pulled down valuations of
utilities and property, whilst boosting the banks. Over the summer
we shifted the portfolio to benefit from this change. US bank
shares seemed modestly valued compared with their asset values and
their profitability was improving. We also took further profits in
a number of companies where growth prospects were modest and whose
valuations had become stretched.
Performance
The Company performed well despite the unexpected political
developments but lagged the index following its strong run higher
after Mr Trump's victory. Our holdings in Asia have been
particularly subdued in the last couple of months, but we believe
they offer very good value for 2017. Overall, the Company's net
asset value total return was 12.5% during the period, compared with
the 15.3% gain in the MSCI All Country World Index.
Five largest stock contributors
Contribution
Company Theme (%)
------------------ ----------------- ------------
Charles Schwab Online Services 1.0
Time Warner Media Content 0.9
Emerging Market
LVMH Consumer 0.8
J.P. Morgan Chase Bank Regulation 0.7
Retiree Spending
Prudential Power 0.6
Five largest stock detractors
Contribution
Company Theme (%)
---------------------- ----------------- ------------
DeNA Media Content (0.5)
Publicis Media Content (0.2)
China Mobile Media Content (0.2)
Avangrid Low Carbon World (0.2)
Emerging Market
Essilor International Consumer (0.1)
Artemis' investment process
The aim of our thematic approach to portfolio construction is to
identify areas of commercial growth around the world and invest in
companies that trade on attractive valuations and give the Company
exposure to this growth. We select high quality companies, with
proven profitability and high levels of cash generation, preferring
businesses with strong balance sheets and those that have
established strong barriers to entry. Such companies sometimes lag
equity markets when they recover, but they protect capital well
when economic conditions become more testing. Our strict valuation
discipline also helps us to identify opportunities within our
themes across regions, and this inevitably leads to additional
portfolio turnover. Over time, we have found this investment
approach provides a solid framework to deliver consistent returns
to investors.
Current investment themes
Online Services (18.1% of investments) - Most of our higher
growth investments continued to perform well, with Amazon.com,
Alphabet, Tencent Holdings and Priceline Group all meeting the
market's expectations. We sold Facebook during the period as we
became sceptical about whether its campaigns are proving
sufficiently effective to keep attracting more advertising
revenue.
Media Content (13.0% of investments) - Investors have become
concerned that viewers are spending more and more time online.
While this may be true of the young (and of the inhabitants of Wall
Street), many consumers still watch numerous hours of regular
television and quality programming increasingly attracts a global
audience. We have added to this out-of-favour theme and were
rewarded when Time Warner, one of our largest holdings, was bid for
by AT&T. Our investments in programme makers such as Time
Warner, Walt Disney and ITV give the Company exposure to the
growing demand for entertainment worldwide, whether paid for by
advertising or by subscription.
Emerging Market Consumer (12.4% of investments) and Frontier
Investments (0.2% of investments) - Emerging markets bounced back
during the period, helped by recovering commodity prices. Our
exposure to China performed well as underlying growth continued to
be strong and the much-rumoured debt calamity failed to occur. We
have reduced our exposure to this theme as emerging countries and
their currencies seldom do well when US interest rates rise.
Bank Regulation (11.5% of investments) - We have invested in a
range of US financial companies over the last six months. We expect
they will benefit from rising US interest rates and they were
trading on modest valuations. Banks generally have very stable
franchises based on customer relationships, but earnings that can
vary with economic conditions. We believe that the larger US banks
have paid the bulk of their fines, reduced their risks, have more
substantial capital backing and better compliance. Finally, their
prospects are improving as interest rates rise. The situation in
Europe is also improving, albeit from a darker place, with the main
Italian banks finally refinancing. Whilst prospects for improving
returns from European banks still seem less compelling, their
improved stability is helpful for the financial sector globally.
The recent announcement by President Trump that the Dodd Frank
legislation will be simplified suggests that US banks will gain a
competitive advantage while European banks continue to resolve
outstanding issues from 2008.
Healthcare Costs (11.1% of investments) - We continued to trim
our exposure to healthcare as President Trump seems keen to attack
costs in the system. Wall Street had been more concerned about the
prospect of a Clinton presidency on this score, but Mr Trump's
recent rhetoric seems no better. It is interesting to see that new
drug approvals in the US have been dropping in number. Our
investments are in companies able to offer high quality care at
affordable prices and, despite budgetary pressures, these
businesses seem to be growing nicely.
Retiree Spending Power (10.7% of investments) - Some investments
in this theme were seen as highly valued and this was a headwind
for returns from this theme during the period. The prospects for
Nike seem better for the year ahead, however, and we have added to
this holding.
Tourism (8.4% of investments) - Our tourism theme has been quiet
during the period, despite tourist numbers rising steadily in Asia.
The falling yen should benefit the Company's holding in Japan
Airport Terminal and see Chinese tourists return in numbers in
2017.
High Quality Assets (6.4% of investments) - This part of the
portfolio contains companies which trade at modest valuations
compared with their underlying assets. Over recent months we have
reduced the Company's holdings in property companies as they tend
to struggle when interest rates rise - and we have added holdings
in Japan such as Mitsubishi Heavy Industries which owns stakes in
many of the world's best mines. Its investments in coal are
especially profitable with demand from China growing as it tries to
improve the quality of its domestic steel production.
Energy in a Gas Glut (4.6% of investments) - This theme saw the
most change following Mr Trump's election. The US is a signatory to
the Paris global climate change agreements and the country was
promoting the development of renewable energy. These initiatives
now seem likely to be reversed, so we have sold the Company's US
utility holdings. Over the summer we invested in some leading oil
fracking companies, which had reduced costs sufficiently to cope
with oil prices at lower levels. The recent production cuts agreed
to by Opec have, however, driven oil prices to a level where US
fracking may recover, eventually leading to oil price weakness - so
we have started taking profits.
Scientific Equipment (3.6% of investments) - We took profits in
Eurofins Scientific and PerkinElmer during the period as reduced
spending on drug research could slow this sector's growth in the
medium term. We have invested in Shimadzu in Japan which offers
similar exposure but on a more modest valuation.
Thematic attribution
Contribution
Theme (%)
------------------------- ------------
Online Services 3.8
Emerging Market Consumer 1.8
Bank Regulation 1.8
Retiree Spending Power 1.5
Healthcare Costs 1.2
Media Content 1.0
Scientific Equipment 0.9
Tourism 0.7
Energy in a Gas Glut 0.5
High Quality Assets 0.1
Frontier Investments (0.1)
Regional attribution
Contribution
Region (%)
--------------- ------------
North America 9.7
Emerging 1.0
UK 1.0
Europe 0.8
Japan 0.8
Developed Asia (0.1)
Outlook
We are finally seeing the end of artificially low interest
rates. Very low rates were introduced following the financial
crisis so that bank failures did not provoke a wider crisis. Very
low rates tend to result in rising asset prices, but also penalise
savers. Some advocates of lower rates hoped that they would
encourage higher rates of growth and job creation, but the example
of quantitative easing in Japan suggested these hopes were
misplaced. This has proven to be the case in Europe, where economic
growth remains subdued.
The US has seen steady growth and world trade also now seems to
be growing more healthily. This seems a curious moment to introduce
growth-oriented policies in the US, especially tax cuts, but equity
markets will, no doubt, enjoy them. Perhaps Mr Trump won the US
election through being the 'least bad' candidate, rather than
through coherent policies, but some of his growth-oriented rhetoric
is now being echoed by mainstream politicians in Europe looking to
head off the rise of populist parties. A move away from austerity
towards growth policies seems the likely background for 2017; the
exception will presumably be Japan which will persist with low
rates until deflation has clearly been eliminated. The UK is in a
strange period. The Bank of England is determined to keep rates
low, despite inflation rising steadily due to the fall in
sterling.
Equity markets tend to enjoy growth policies and the cash
earnings of more economically sensitive sectors of the market are
likely to rise. These cyclical sectors, out of favour for most of
the last six years, may overshadow less economically sensitive
sectors which had led the bull run - such as consumer staples and
property companies. Some of the latter are currently regarded as
'quality' stocks which should never be sold. Such convictions may
prove similar to the cult of holding technology shares in the late
1990s. Conversely, bank shares, which some investors say they will
never own, may now be rather safer, if duller, investments than
they were in the mid-2000s. The market always has, and always will,
have its phases and cycles. We feel we are now at the start of a
very different phase from the one we enjoyed earlier this
decade.
Markets will, no doubt, continue to be volatile and political
developments unpredictable. The Company's portfolio, however,
consists of high quality companies trading on modest valuations and
operating in growing areas of the world economy. We believe that,
over the medium term, these investments will continue to produce
healthy growth in shareholders' wealth in real terms.
Simon Edelsten, Alex Illingworth & Rosanna Burcheri
Fund managers
Responsibility statement of the Directors in respect of the
Half-Yearly Financial Report
The Directors confirm that to the best of their knowledge, in
respect of the Half-Yearly Financial Report for the six months
ended 31 December 2016:
-- the condensed set of financial statements has been prepared
in accordance with Financial Reporting Standard ('FRS') 104:
'Interim Financial Reporting';
-- having considered the expected cash flows and operational
costs of the Company for the 18 months from the period end, the
Directors are satisfied that the Company has adequate resources to
continue in operational existence for the foreseeable future. For
this reason, the going concern basis of accounting continues to be
used in the preparation of the Half-Yearly Financial Report;
-- the Chairman's statement to shareholders and Investment
Manager's review includes a fair review of the information required
by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of the important events that have
occurred during the first six months of the financial year and
their impact on the financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
entity during that period, and any changes in the related party
transactions described in the last annual report that could do
so.
The Half-Yearly Financial Report for the six months ended 31
December 2016 was approved by the Board and the above
responsibility statement has been signed on its behalf by:
Malcolm Scott
Chairman
27 February 2017
Condensed statement of comprehensive income
For the six months For the six months For the year
ended ended ended
31 December 2016 31 December 2015 30 June 2016
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ------- -------- -------- ------- ------- ------- ------- -------- --------
Gains on
sales of
investments - 13,862 13,862 - 4,298 4,298 - 13,918 13,918
Currency
losses - (372) (372) - (293) (293) - (570) (570)
Income 759 - 759 760 - 760 2,107 - 2,107
Investment
management
fee (76) (228) (304) (53) (160) (213) (113) (340) (453)
Other expenses (94) (10) (104) (103) (10) (113) (200) (20) (220)
----------------- ------- -------- -------- ------- ------- ------- ------- -------- --------
Return before
finance
costs and
taxation 589 13,252 13,841 604 3,835 4,439 1,794 12,988 14,782
----------------- ------- -------- -------- ------- ------- ------- ------- -------- --------
Finance
costs of
borrowings (15) (45) (60) (9) (27) (36) (20) (60) (80)
Return on
ordinary
activities
before taxation 574 13,207 13,781 595 3,808 4,403 1,774 12,928 14,702
----------------- ------- -------- -------- ------- ------- ------- ------- -------- --------
Taxation
on ordinary
activities (78) - (78) (79) - (79) (214) - (214)
----------------- ------- -------- -------- ------- ------- ------- ------- -------- --------
Return on
ordinary
activities
after taxation 496 13,207 13,703 516 3,808 4,324 1,560 12,928 14,488
----------------- ------- -------- -------- ------- ------- ------- ------- -------- --------
Return per
share 1.66p 44.13p 45.79p 2.01p 14.83p 16.84p 5.78p 47.94p 53.72p
----------------- ------- -------- -------- ------- ------- ------- ------- -------- --------
The total column of this statement is the profit and loss
account of the Company.
All revenue and capital items in this statement derive from
continuing operations. No operations were acquired or discontinued
during the period.
The return for the period disclosed above represents the
Company's total comprehensive income.
Condensed statement of financial position
As at As at As at
31 December 31 December
2016 2015 30 June 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------- ------------ ------------ -------------
Non current assets
Investments 128,886 89,930 108,969
--------------------------------- ------------ ------------ -------------
Current assets
Debtors 168 193 1,669
Cash and cash equivalents 5,800 6,811 4,427
--------------------------------- ------------ ------------ -------------
5,968 7,004 6,096
--------------------------------- ------------ ------------ -------------
Creditors
Amounts falling due
within one year (9,327) (5,459) (7,439)
--------------------------------- ------------ ------------ -------------
Net current (liabilities)/assets (3,359) 1,545 (1,343)
--------------------------------- ------------ ------------ -------------
Total net assets 125,527 91,475 107,626
--------------------------------- ------------ ------------ -------------
Capital and reserves
Share capital 1,520 1,359 1,456
Capital redemption
reserve 16 16 16
Share premium 20,087 8,739 15,205
Capital reserve 102,167 79,840 88,851
Revenue reserve 1,737 1,521 2,098
--------------------------------- ------------ ------------ -------------
Shareholders' funds 125,527 91,475 107,626
--------------------------------- ------------ ------------ -------------
Net asset value per
share 412.89p 336.61p 369.70p
--------------------------------- ------------ ------------ -------------
Condensed statement of changes in equity
For the six months ended 31 December 2016 (unaudited)
Capital
Share redemption Share Capital Revenue Shareholders'
capital reserve premium reserve(1,2) reserve(2) funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
Shareholders' funds at
1 July 2016 1,456 16 15,205 88,851 2,098 107,626
Return on ordinary activities after
taxation - - - 13,207 496 13,703
Transfer of prior year expenses related to
issue of the prospectus - - (109) 109 - -
Expenses related to issue of the
prospectus - - (2) - - (2)
Expense related to listing of shares - - (21) - - (21)
Issue of new shares 64 - 5,014 - - 5,078
Dividend paid - - - - (857) (857)
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
Shareholders' funds at 31 December 2016 1,520 16 20,087 102,167 1,737 125,527
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
For the six months ended 31 December 2015 (unaudited)
Capital
Share redemption Share Capital Revenue Shareholders'
capital reserve premium reserve(1,2) reserve(2) funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
Shareholders' funds at
1 July 2015 1,343 16 6,650 71,146 1,686 80,841
Return on ordinary activities after
taxation - - - 3,808 516 4,324
Issue of new shares 16 - 1,010 - - 1,026
Issue of shares from treasury - - 1,079 4,886 - 5,965
Dividend paid - - - - (681) (681)
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
Shareholders' funds at 31 December 2015 1,359 16 8,739 79,840 1,521 91,475
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
For the year ended 30 June 2016 (audited)
Capital
Share redemption Share Capital Revenue Shareholders'
capital reserve premium reserve(1,2) reserve(2) funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
Shareholders' funds at
1 July 2015 1,343 16 6,650 71,146 1,686 80,841
Return on ordinary activities after
taxation - - - 12,928 1,560 14,488
Issue of new shares 113 - 7,476 - - 7,589
Expenses related to issue of the
prospectus - - - (109) - (109)
Issue of shares from treasury - - 1,079 4,886 - 5,965
Dividends paid - - - - (1,148) (1,148)
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
Shareholders' funds at 30 June 2016 1,456 16 15,205 88,851 2,098 107,626
------------------------------------------ -------- ----------- -------- ------------- ----------- -------------
(1) Capital reserve as at 31 December 2016 includes unrealised
gains of GBP15,799,000 (31 December 2015: GBP6,400,000; 30 June
2016: GBP14,627,000).
(2) These reserves form the distributable reserves of the Company.
Condensed statement of cash flows
For the six For the six
months ended months ended For the year ended
31 December 2016 31 December 2015 30 June 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------------------------ ----------------- ----------------- ------------------
Cash used in operations 556 308 916
Interest received 12 5 15
Interest paid (60) (36) (80)
------------------------------------------------------------ ----------------- ----------------- ------------------
Net cash generated from operating activities 508 277 851
------------------------------------------------------------ ----------------- ----------------- ------------------
Cash flow from investing activities
Purchase of investments (96,707) (48,806) (130,162)
Sale of investments 90,066 43,553 115,732
Realised currency gains 270 - 244
------------------------------------------------------------ ----------------- ----------------- ------------------
Net cash used in investing activities (6,371) (5,253) (14,186)
------------------------------------------------------------ ----------------- ----------------- ------------------
Cash flow from financing activities
Issue of new shares 5,078 1,026 7,589
Drawdown of credit facility 3,205 - -
Issue of shares from treasury - 5,965 5,965
Expenses related to issue of the prospectus (5) - (106)
Expense related to listing of shares (21) - -
Dividends paid (857) (681) (1,148)
------------------------------------------------------------ ----------------- ----------------- ------------------
Net cash generated from financing activities 7,400 6,310 12,300
------------------------------------------------------------ ----------------- ----------------- ------------------
Net increase/(decrease) in cash and cash equivalents 1,537 1,334 (1,035)
------------------------------------------------------------ ----------------- ----------------- ------------------
Cash and cash equivalents at start of the period 4,427 5,460 5,460
Increase/(decrease) in cash in the period 1,537 1,334 (1,035)
Unrealised currency (losses)/gains on cash and cash
equivalents (164) 17 2
------------------------------------------------------------ ----------------- ----------------- ------------------
Cash and cash equivalents at end of the period 5,800 6,811 4,427
------------------------------------------------------------ ----------------- ----------------- ------------------
Notes to the Half-Yearly Financial Report
1 Accounting policies
The condensed financial statements for the six months to 31
December 2016 comprise the statements set out above together with
the related notes below. The financial statements have been
prepared in accordance with the Company's accounting policies as
set out in the Annual Financial Report for the year ended 30 June
2016 and are presented in accordance with the Companies Act 2006
(the 'Act'), FRS 104 and the requirements of the Statement of
Recommended Practice 'Financial Statements of Investment Trust
Companies and Venture Capital Trusts' ('SORP') issued by the
Association of Investment Companies (the 'AIC') in November
2014.
The financial information contained within this Half-Yearly
Financial Report does not constitute statutory accounts as defined
in sections 434 to 436 of the Act. The financial information for
the year ended 30 June 2016 has been extracted from the statutory
accounts which have been filed with the Registrar of Companies. The
Auditor's report on those accounts was not qualified and did not
contain statements under sections 498(2) or (3) of the Act.
2 Return per share
Return per share has been calculated based on the weighted
average number of ordinary shares in issue for the six months ended
31 December 2016 being 29,929,531 (six months ended 31 December
2015: 25,675,244; year ended 30 June 2016: 26,969,898).
3 Dividend
An interim dividend for the six months ended 31 December 2016 of
1.70 pence per ordinary share (31 December 2015: 1.65 pence) has
been declared. This dividend will be paid on 7 April 2017 to those
shareholders on the register at close of business on
10 March 2017.
4 Borrowing facilities
The Company has entered into a three-year US$16 million
revolving credit facility with Scotiabank, of which US$11.3 million
(GBP9.1 million) was drawn down at 31 December 2016 (31 December
2015: US$7.3 million (GBP4.9 million); 30 June 2016: US$7.3 million
(GBP5.4 million)). This is recognised in amounts falling due within
one year in the condensed statement of financial position. Interest
is charged at variable rates equivalent to 0.9% over the US Dollar
London interbank market rate. The interest rate as at 31 December
2016 was 1.644% (31 December 2015: 1.3021%; 30 June 2016:
1.3508%).
5 Fair value hierarchy
All investments are designated at fair value through profit or
loss on initial recognition in accordance with FRS 102 'The
Financial Reporting Standard applicable in the UK and Republic of
Ireland'. The following table provides an analysis of these
investments based on the fair value hierarchy as described below
which reflects the reliability and significance of the information
used to measure their fair value.
The disclosure is split into the following categories:
Level 1 - Investments with unadjusted quoted prices in an active market;
Level 2 - Investments whose fair value is based on inputs other
than quoted prices that are either directly or indirectly
observable;
Level 3 - Investments whose fair value is based on inputs that
are unobservable (i.e. for which market data is unavailable).
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
--------------------------- ----------- ----------- --------
Level 1 128,886 89,858 108,864
Level 3 - 72 105
--------------------------- ----------- ----------- --------
Total value of investments 128,886 89,930 108,969
--------------------------- ----------- ----------- --------
6 Share capital
As at 31 December 2016 there were 30,401,952 ordinary shares in
issue (31 December 2015: 27,175,460; 30 June 2016: 29,111,836).
In the six months ended 31 December 2016 1,290,116 ordinary
shares were allotted with total proceeds of GBP5,078,000 (six
months ended 31 December 2015: 311,360 ordinary shares were
allotted with total proceeds of GBP1,026,000; year ended 30 June
2016: 2,248,006 ordinary shares were allotted with total proceeds
of GBP7,589,000).
In the six months ended 31 December 2016 no ordinary shares were
issued from treasury (six months ended 31 December 2015: 1,825,321
ordinary shares were issued with total proceeds of GBP5,965,000;
year ended 30 June 2016: 1,825,321 ordinary shares were issued with
total proceeds of GBP5,965,000).
In the six months ended 31 December 2016 no ordinary shares were
bought back (six months ended
31 December 2015: nil; year ended 30 June 2016: nil).
7 Related party transactions
There were no related party transactions during the period.
8 Transactions with the Investment Manager
The investment management fee payable to Artemis Fund Managers
Limited for the six months ended 31 December 2016 was GBP304,000
(six months ended 31 December 2015: GBP213,000; year ended 30 June
2016: GBP453,000) of which GBP155,000 was outstanding at the period
end (31 December 2015: GBP111,000; 30 June 2016: GBP124,000).
9 Principal risks and uncertainties
Pursuant to DTR 4.2.7R of the Disclosure Guidance and
Transparency Rules, the principal risks faced by the Company
include general market risk, regulatory, operational, financial and
gearing risks.
These risks, which have not materially changed since the Annual
Financial Report for the year ended 30 June 2016, and the way in
which they are managed, are described in more detail in the Annual
Financial Report which is available at midwynd.co.uk.
Copies of the Half-Yearly Financial Report will be posted to
shareholders shortly and may also be obtained from the Company's
website at midwynd.co.uk.
For further information, please contact:
Artemis Fund Managers Limited
Company Secretary
Telephone number: 0131 225 7300
27 February 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Mid-wynd International I... (LSE:MWY)
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