Middlefield Canadian Inc PCC MAY PORTFOLIO UPDATE (1567C)
June 17 2021 - 2:00AM
UK Regulatory
TIDMMCT
RNS Number : 1567C
Middlefield Canadian Inc PCC
17 June 2021
MAY PORTFOLIO UPDATE
MIDDLEFIELD CANADIAN INCOME PCC (LON:MCT)
All information is at 31 May 2021 and unaudited
Net asset value - capital only: 123.66p
Share price: 108.50
Discount to NAV: -12.3%
Net yield(1): 4.7%
Gearing: 18.0%
Options overwrite: 0%
Ordinary shares in issue: 106,487,250
Ongoing charges(2) : 1.1%
(1) Based on four quarterly interim dividends of 1.275p per
share paid 31 January 2020, 30 April 2020, 31 July 2020, 30 October
2020, and based on the share price as at close of business on 31
December 2020.
(2) Ongoing charges represent the management fee and all other
operating expenses excluding interest as a % of average
shareholders' funds for the year ended 31 December 2020.
Performance with Net Income Reinvested
One Three Six One Three Five
Month Months Months Year Years Years
Net asset value 2.5% 17.4% 22.7% 35.6% 8.8% 10.9%
Share price 4.1% 19.5% 27.4% 45.7% 9.3% 12.6%
TSX High Dividend Index 3.3% 18.2% 24.0% 43.4% 10.1% 11.4%
Source: Middlefield, Bloomberg.
Sector Weights Total Equities (%)
Financials 34.06
Real Estate 30.20
Utilities 14.79
Pipelines 9.76
Communication Services 3.13
Information Technology 2.90
Energy 1.90
Materials 1.77
Healthcare 1.49
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100.00
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Total Equities (%)
Country Analysis
Canada 90.1
United States 9.9
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100.0
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Ten Largest Investments
Company Country of Risk (%) of Equities
CIBC Canada 5.17
Bank of Montreal Canada 5.07
TD Bank Canada 4.74
Bank of Nova Scotia Canada 4.72
RioCan REIT Canada 3.86
SmartCentres REIT Canada 3.72
AltaGas Canada 3.66
Capital Power Canada 3.63
Sun Life Financial Canada 3.54
National Bank Canada 3.42
Dean Orrico, representing the Investment Manager, noted:
Markets continued to move higher in May with the S&P 500,
MSCI World and TSX Composite adding 0.7%, 1.5% and 3.5%,
respectively. The Fund's unit price appreciated by 4.1% and is at a
5-year high.
The impressive 3.5% return generated by the TSX Composite this
month, or 2.5% in British Pounds, resulted in Canada's equity
market surpassing the total return of the S&P 500 year-to-date.
As at May 30th, Canada had administered at least one vaccine dose
to almost 60% of its population which is narrowly trailing the U.K.
and represents the second highest rate among G7 nations. In
response, provincial governments across the country have begun to
formalize plans for reopening the economy including Alberta's "Open
For Summer" plan which could see virtually all Covid-related
restrictions lifted by the end of June.
Our outlook on Canadian equities remains positive and we expect
continued momentum in the second half of the year. The Fund has
increased its weighting in Canadian equities to over 90% from 65%
in May 2020. Furthermore, as a result of the positive momentum in
Canada, the Canadian dollar has appreciated by 1.6% relative to the
British Pound and over 5% relative to the U.S. dollar this
year.
Canadian banks reported blowout fiscal Q2 results. Operating
cash earnings of $14.4 billion were 2.5 times higher than last
year's $5.7 billion, largely reflecting lower credit loss
provisions. Bank of Montreal, Bank of Nova Scotia and National Bank
of Canada returned 10.1%, 8.8% and 6.3% in May, respectively. All
three companies represent top 10 positions in the Fund's portfolio.
Looking ahead, the outlook for banks remains positive as reserve
ratios are well above required minimums and earnings per share are
expected to continue their upward trajectory in 2022.
On June 1st, Pembina Pipeline Corporation, a long-held core
position in the Fund, announced an agreement to acquire Inter
Pipeline (IPL) for $8.3 billion. The proposed arrangement will
combine two highly connected and complementary businesses and
create one of the largest energy infrastructure companies in Canada
with a diversified and integrated asset base. As part of the
transaction, they are also significantly increasing their
commitment to ESG, including reducing the carbon intensity of their
combined operations. The announcement follows a hostile takeover
attempt from Brookfield Infrastructure during the first quarter of
2021 which was not supported by IPL's management. Its Board of
Directors has recommended that shareholders support the strategic
transaction with Pembina in exchange for shares of the pro-forma
entity. Ultimately, we believe IPL shareholders will vote in favour
of the friendly business combination with Pembina in recognition of
the significant potential growth opportunities and operational
synergies. Pembina's share price has appreciated by over 6% since
the agreement was announced.
Enquiries:
Middlefield International Limited 01203 7094016
Dean Orrico
Buchanan 020 7466 5000
Charles Ryland
Henry Wilson
George Beale
Notes to Editors
Middlefield Canadian Income PCC aims to provide long term
returns through dividend income and capital growth from a
diversified portfolio of predominantly Canadian equity income
securities and US stocks. The Company has been listed since 2006 as
London's only listed Canadian equity income fund.
For more information on the Company, please visit our
website:
http://www.middlefield.co.uk/mcit.htm
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