New Investment Manager - Portfolio Update

RNS Number : 4278K

Mid Wynd Inter Inv Trust PLC

24 June 2014

 



Mid Wynd International Investment Trust PLC (the "Company")

New Investment Manager - portfolio update

Further to the announcement on 30 April 2014 regarding the appointment of Artemis Investment Management LLP ("Artemis") as investment manager of the Company, the Board wishes to provide shareholders with an update on the portfolio of the Company. 

The portfolio is being managed on a day-to-day basis by the Artemis Global Select Team, comprising Simon Edelsten, Alex Illingworth and Rosanna Burcheri.  Since taking over the portfolio from the previous manager, the team has been working on an orderly re-positioning of the portfolio, to bring it into line with their investment strategy.  This process is now substantially complete, with only a few small illiquid positions remaining.

The Artemis Global Select team's strategy focuses on managing a concentrated portfolio (typically between 40 and 70 holdings) of high quality companies spread across 8 to 10 investment themes. The themes reflect areas of long term growth, often resulting from predictable changes in demographics or technology, rather than growth relying on continued economic recovery in major economies.

Major themes in the portfolio at present include: companies that help reduce the cost of healthcare, leading companies in unconventional oil production in the USA, companies which benefit from the spending power of older consumers, companies which benefit from the growing consumption power of emerging markets, companies which provide content or services via the internet and smartphones.

Within these investment themes, companies are selected which have strong market positions in their industries, excellent balance sheets, and which trade on attractive valuations. Position sizes will normally be between 1 per cent and 2.5 per cent.   

Investment decisions are based on a fundamental, bottom-up process with intensive accounts-based analysis driving stock selection. The strategy is benchmark agnostic and is focused on real returns with a capital protective bias. 

Set out below is a summary of the top twenty investments as at 20 June 2014, together with an analysis of the geographic split of the portfolio and the main investment themes in the portfolio.

Top twenty holdings

Security	Geographic region	Activity	% of portfolio
Google	North America	Mobile search	2.5
Unibail-Rodamco	Europe	European property	2.4
Mapletree Logistics Trust	Developed Asia	Distribution in SE Asia	2.4
Ebara	Japan	Pump maker supplying  LNG market	2.4
Time Warner	North America	US Media	2.4
St. Joe	North America	US real estate	2.3
Capital One Financial	North America	Credit cards	2.3
GlaxoSmithKline	UK	Drugs and OTC healthcare	2.3
Spectra Energy	North America	US gas pipelines	2.3
Union Pacific	North America	US railroad	2.2
Deutsche Post	Europe	European logistics	2.2
Pernod-Ricard	Europe	Spirits	2.1
ITV	UK	UK programme maker	2.1
Actavis	North America	Generic drugmaker	2.1
Abbvie	North America	US pharmaceuticals	2.1
Perrigo	North America	OTC healthcare	2.0
East African Breweries	Emerging	Kenyan Brewery	2.0
Experian	UK	Consumer credit checking	1.9
Singapore Telecom	Developed Asia	Asian telecoms	1.9
Reinet Investments	Europe	Financial services	1.9

Geographic split of portfolio

Geographic region	% of portfolio
North America	41.2
Europe	15.8
Japan	14.7
Developed Asia	10.9
UK	10.9
Emerging	6.5

Top ten investment themes

Investment theme	% of portfolio
Healthcare	15.1
Asset Growth	13.8
Energy in a Gas Glut	12.5
Mobile Data & eCommerce	12.2
Distribution	9.4
Retiree Spending Power	8.8
Frontier	5.5
Emerging Market Consumer	5.3
Business Investment	5.0
Media Content	4.4

The Company will publish its annual report in early September 2014 and this will contain a detailed overview of the portfolio and investment process, together with a full portfolio listing.  In addition, from early July 2014, there will be a monthly factsheet and commentary from the managers published on Artemis' website, which will also include details of the top 10 holdings and geographic and sector splits of the portfolio.   

Further information on the Global Select Team and how it manages money is available on the Company's page on Artemis' website at www.artemis.co.uk.

Mid Wynd International Investment Trust PLC

24 June 2014

 

END

 

 

PFUEALKLASDLEFF