Mid Wynd International upbeat about valuations despite weak H1

(Sharecast News) - London-listed investment trust Mid Wynd International underperformed the benchmark over its first half but reiterated confidence in its portfolio over 2026 as the stock's discount to net asset value continued to narrow. The NAV total return was just 3.8% during the six months to 31 December, while MWI's share price gained 5.2%. That was well below its comparator index, the MSCI All Country World Index, which returned 13.3%.

Chairman David Kidd said that the MSCI ACWI benefitted from the performance of a small number of AI-oriented shares during the first half - "most of which do not fit the quality criteria for this company to invest in them".

"This has been exacerbated by the increasing role of passive investment funds in the market which serve to drive momentum (and which may also accelerate a fall of the index in future)," he said.

However, with around half of MWI's investments now trading at the bottom of their 10-year price-to-earnings valuation range, Kidd remains upbeat.

"This confirms the board's views that the company's investments are currently being held at remarkably attractive valuations, and the board is optimistic that the coming year will bring a significant improvement in both absolute and relative performance," he said.

Nevertheless, the stock's discount to NAV fell to 1.2% by the end of the period, down from 2.5% six months earlier and 2.2% the year before.

The stock was up 0.2% at 741.5p by 1219 GMT.