The resilient global trust offers growth with a capital preservation bent
Thursday 05 Mar 2020 Author: James Crux

The market sell-off has pulled down share prices in attractive investments so many investors are understandably looking for opportunities in the hope of a market recovery.

Putting money into an investment trust or a fund is arguably a lower risk way of playing a recovery in the markets as you would be spread your risks across multiple stocks rather than betting it all on one company.

If this suits your risk appetite, we suggest looking at Mid Wynd International Investment Trust (MWY) which had enjoyed a great run before February’s sell-off. It has achieved 86.2% total return over the past five years versus 64.3% from its
MSCI AC World benchmark. Charges are fairly low at 0.66%.

Managed by Artemis’ Simon Edelsten, Alex Illingworth and Rosanna Burcheri, Mid Wynd aims to achieve both capital and income growth by investing on a worldwide basis. Having celebrated its 70th birthday last year, the trust is able to move freely between different markets, sectors, industries and market capitalisation brackets as investment opportunities dictate.

The focus is on investments in high-quality companies which can generate long term growth, with the managers also keeping an eye on protecting investors’ capital when markets fall.

Mid Wynd puts money to work with companies that have fortress balance sheets, good secular growth prospects, high barriers to entry and little competition, giving them the ability to maintain pricing power over time. Investments are spread across many geographic regions and industries, providing welcome diversity.

It looks to profit from long-term trends such as online services, automation and the emerging market consumer. Technology and health care stocks account for 43% of the portfolio.

The managers consider how much a stock could fall as well as rise and will hold up to 20% of assets in cash if they feel equities are over-priced with the aim of reducing risk compared to other global equity funds.

According to the February factsheet, Mid Wynd had just one Chinese stock in the portfolio as of 31 January, although some of its other holdings do business in the Asian country and so could see short-term coronavirus disruption.

Among the top 30 holdings are the likes of instruments maker Thermo Fisher Scientific, retailer Amazon, tech titan Microsoft and utility National Grid (NG.).

You’re also getting exposure to the likes of Japan’s Hoya, which supplies high-tech and healthcare products, French luxury goods leviathan LVMH and Japan-based Daifuku, widely acknowledged as the world leader in warehouse automation.

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