Middlefield Canadian Inc... Share Discussion Threads

[skyship] 05/6/2014 10:40

Hi ASMO - sorry, tax not my thing! Anyway, surely now time to say goodbye to these after the excellent recent rise all the way back up to underlying NAV.

Depending upon your views on the currency, perhaps switch into CGI for the 32% NAV discount. Coverage now by Panmure and also Edison Investment Research as of this week - free Report on their website.

[asmodeus] 04/6/2014 17:20

Sky - or anyone - have you had the letter from Kleinwort Jersey regarding dividends and tax credits? I don't fully understand it, but have written to them to explain that if dividends were paid gross, as stated on div slips, and they are now being paid net, and, indeed, all divs are being treated as such since 2011, there is no longer any incentive for a standard-rate tax-payer such as me to continue to hold them in an ISA. But I don't understand how they can suddenly say that divs paid gross were in fact net! Do you understand it?

[asmodeus] 16/9/2013 15:10

What are you feelings now, Sky? I really wish I had sold back in May! This is my worst-performing holding this year.

[skyship] 30/5/2013 08:04

Yes, but the main point is that the recent weakness should not be construed as disturbing, just a routine correction back to the rising 200day MA - the pink line.

[asmodeus] 30/5/2013 07:53

I'm not a chartist, Skyship, but can I assume that the implications of your chart are that although Middlefield has been falling disturbingly, recently, that as long as history is repeated, there should soon be an upturn again?

[asmodeus] 11/3/2013 09:27

MCT has been performing well, and I have bought back in, but have to confess I can't remember the implications of it being a Convertible Pref. Would Skyship, Praipus, or anybody please try to expain for me/us?

[skyship] 23/7/2012 09:25

MCT v. CGI comparison update. I certainly made the wrong call last year in buying CGI rather than MCT; however, now that MCT trade @ a premium to NAV whilst the CGI discount has widened out to 29%, I look forward to welcoming a few MCT holders over to my side of the fence.

CGI for MCT looks like a classic switch:

[praipus] 23/9/2011 11:42

Gutted I missed the run up but pleased I'm out the way of the fall.

[skyship] 23/9/2011 11:36

CGI was the major underperformer throughout 2011 - but MCT now looking as though its heading for the 80p level once again; either because of the Markets, because of its higher resources exposure or because a mere 8% NAV discount is just too low - should be 15%+ IMO:

[cnx] 05/7/2011 19:25

this one has been very kind to me over 4 years

[taylor20] 21/12/2010 14:22

Picked up a handful this morning.

[davebowler] 16/11/2010 14:24

As at the close of business on 9th November 2010 the Net Asset Value per share
was 95.26 pence (including accrued income)

[davebowler] 12/11/2010 13:11

MIDDLEFIELD CANADIAN INCOME TRUSTS INVESTMENT COMPANY PCC
Interim Management Statement

This statement has been prepared to provide additional information to
shareholders as a body to meet the relevant requirements of the UK Listing
Authority's Disclosure and Transparency Rules. It should not be relied upon by
any party for any purpose other than as stated above. This statement covers the
period 1 July 2010 to date.

Middlefield Canadian Income Trusts Investment Company PCC is a closed-ended
investment company incorporated in Jersey on 24 May 2006. The Company has
initially established one closed-ended Cell known as Middlefield Canadian Income
Trusts - GBP PC (referred to as the "Fund" which term includes, where the
context permits, the Company acting in respect of Middlefield Canadian Income
Trusts - GBP PC). Admission to the official list of the UK Listing Authority and
dealing in redeemable participating preference shares commenced on 6 July 2006.


Investment Objective


The Fund's investment objective is to produce a high income return whilst also
seeking to preserve shareholder capital.

To achieve its objectives, the Fund (i) entered into a Swap with a Canadian
chartered bank in order to achieve efficient currency hedged economic exposure
to the Canadian equity income market through its reference asset, CIT Trust, an
actively managed portfolio of Canadian equity income securities and (ii) invests
its assets in a Money Market and Bond Portfolio.

Performance Summary

The net asset value of the Fund as at 28 October 2010 was 89.39 pence per share
or £71.8 million. The total return of the Fund, which reflects changes in the
net asset value as well as dividends paid, was 26.2% for the year to date period
ended 28 October 2010. The key driver of Fund performance is the mark-to-market
value of the Swap which, in turn, is affected by a combination of the
performance of its reference asset, CIT Trust, and the mark-to-market value of
the CCMD Value. The CCMD Value is the direct result of the Fund's decision to
eliminate the impact of fluctuations in the spread between Sterling and Canadian
interest rates on the Fund's revenues by locking in the spread from the outset.
All else being equal, the CCMD Value will reduce to zero as the termination
date of 28 June 2013 for the Swap is approached.

The asset class weightings for CIT Trust as at 31 October 2010 were:

+--------------------+---------------------+
| Asset Class | Portfolio Weighting |
+--------------------+---------------------+
| Oil and Gas | 54% |
+--------------------+---------------------+
| Industrials | 21% |
+--------------------+---------------------+
| Power and Pipeline | 13% |
+--------------------+---------------------+
| Other | 12% |
+--------------------+---------------------+

Material Events


Over the next several months, virtually all income trusts will be converting to
corporations as they become taxable entities in 2011 and the adviser believes a
number of these companies will continue to pay out high levels of dividends. In
fact, those that have already converted to corporations and continue to pay
distributions are generating an average yield of 6.0% as at 30 September 2010,
which is substantially higher than the average yield on the S&P/TSX Composite
Index of 2.7%.

Due to the significant number of Canadian equities paying high levels of
dividends, Standard & Poor's has indicated that they intend to replace the
S&P/TSX Income Trust Index with a new S&P/TSX Equity Income Index before the end
of 2010. The new index will be comprised of the highest yielding Canadian
equities among the constituents of the broader S&P/TSX Composite Index. This is
a very positive development since this new index is expected to become the new
benchmark for all dividend, income and balanced fund mandates in Canada and
given the relatively attractive yield it offers, it will likely act as a buying
catalyst for new domestic and foreign institutional investment in the unique
Canadian equity income sector. In addition, CIT Trust will be adopting new
categorizations for its investee companies which more closely align with Global
Industry Classification Standards (GICS).

As a result of the increasing investor preference for yield, the adviser
believes companies offering high levels of sustainable income will continue to
attract significant investor interest and achieve premium valuations. CIT
continues to be biased towards high quality issuers with low debt, stable
distributions and good prospects for growing their business.

[praipus] 05/3/2010 09:50

Discovered this by accident, 6.4% yeild paid quarterly



MCT

CHARTS