Mid Wynd International IT PLC

8/3/2019 Mid Wynd International IT PLC

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Mid Wd Ittil Ivtmt Tt PLCAnnual Report and Financial Statements 30 June 2010

http://www.bailliegifford.com/



1 CompanySummary2 Year’sSummary

3 FiveYearSummary

4 Chairman’sStatement

7 DirectorsandManagement

9 TenYearRecord

10 PerormanceAttribution

10 InvestmentChanges

11 ContributorstoPerormance

11 ThirtyLargestEquityHoldings12 ClassifcationoInvestments

13 Managers’PortolioReview

17 ListoInvestments

21 Directors’Report

29 Directors’RemunerationReport

31 StatementoDirectors’Responsibilities

32 IndependentAuditors’Report

34 IncomeStatement

Contents

35 BalanceSheet36 ReconciliationoMovementsin Shareholders’Funds

37 CashFlowStatement

38 NotestoFinancialStatements

53 NoticeoAnnualGeneralMeeting

56 FurtherShareholderInormation

57 AnalysisoShareholders

Mid Wynd invests on an international basis.

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to the action you should take, you should consult your stockbroker, bank manager, solicitor, accountant or other independent nancial adviser authorised under the FinancialServices and Markets Act 2000 immediately.

If you have sold or otherwise transferred all of your ordinary shares in Mid Wynd International Investment Trust PLC, please forward thisdocument and the accompanying form of proxy as soon as possible to the purchaser or transferee or to the stockbroker, bank or other agentthrough whom the sale or transfer was or is being effected for delivery to the purchaser or transferee.



MID WYND INTERNATIONAL INVESTMENT TRUST PLC 1

CoMPany suMMary

Company Summary

Investment Policy

MidWyndseekstomeetitsobjectiveoachievingcapitalandincomegrowththroughinvestmentprincipallyinaportolioointernationalquotedequities.TheproportionotheportolioinvestedinUKcompanieswillnotnormallyexceed25%.

FurtherdetailsotheCompany’sinvestmentpolicyaregivenintheDirectors’Report.

Company History

MidWyndcantraceitsoriginstoaDundeebasedtextilebusinessoperatedbysuccessivegenerationsotheScottamily

since1797,whenpremiseswerefrstpurchasedorthebusinessinthelaneor‘wynd’romwhichtheCompanytakesitsname.MidWyndobtainedalistingoitssharecapitalontheLondonStockExchangeinOctober1981andhas,sincethattime,conducteditsbusinessasaninvestmenttrustcompany.

Comparative Index

TheprincipalindexagainstwhichperormanceismeasuredistheFTSEWorldIndexinsterlingterms.

Management Details

BaillieGiord&CoareappointedasinvestmentmanagersandsecretariestotheCompany.Themanagementcontractcanbeterminatedattwelvemonths’notice.

Management Fee

BaillieGiord&Co’sannualremunerationis0.50%othenetassetsotheCompanyattributabletoitsshareholders,calculatedonaquarterlybasis.

Capital Structure

AttheyearendtheCompany’ssharecapitalconsistedo4,962,766ullypaidordinaryshareso25peach.TheCompanyhasbeengrantedauthoritytobuybackalimitednumberoitsownordinarysharesorcancellation.

AIC

TheCompanyisamemberotheAssociationoInvestmentCompanies.

Savings Vehicles

MidWyndsharescanbeheldthroughavarietyosavingsvehicles(seepage57ordetails).

Notes

Noneotheviewsexpressedinthisdocumentshouldbeconstruedasadvicetobuyorsellaparticularinvestment.

InvestmenttrustsareUKpubliclistedcompaniesandassuchcomplywiththerequirementsotheUKListingAuthority.TheyarenotauthorisedorregulatedbytheFinancialServicesAuthority.

Mid Wynd’s objective is to achieve capital and income growth by investingon a worldwide basis.

Company data at 30 June 2010

Total assets Shareholders’ funds Market capitalisation

£55.4m† £50.1m £46.4m

†beoredeductionobankloans.



2 ANNUAL REPORT 2010

year’s suMMary

Year to Year to

30 June 2010 30 June 2009

Year’s high and low High Low High Low

Shareprice* 963.5p 657.5p 826.0p 566.0pNetassetvalue(aterdeductingborrowingsatairvalue) 1,113.8p 766.6p 994.4p 629.2pNetassetvalue(aterdeductingborrowingsatpar) 1,114.4p 767.1p 994.3p 629.2p(Discount)/premium(aterdeductingborrowingsatairvalue) (6.8%) (23.1%) 1.4% (21.0%)(Discount)/premium(aterdeductingborrowingsatpar) (6.8%) (23.2%) 1.4% (21.0%)

30 June 30 June

2010 2009 % change

Totalassets(beoredeductionobankloans) £55.4m £41.0mBankloans £5.3m £1.9mEquityshareholders’unds £50.1m £39.1m

Netassetvalueperordinaryshare(aterdeductingborrowingsatairvalue) 1,008.2p 776.5p 29.8Netassetvalueperordinaryshare(aterdeductingborrowingsatpar) 1,008.7p 777.0p 29.8Shareprice* 935.0p 672.5p 39.0FTSEAll-ShareIndex 2,543.5 2,172.1 17.1FTSEWorldIndex(insterlingterms) 303.7 253.4 19.9

Dividendspaidandproposed 15.50p 15.00p 3.3Revenuereturnperordinaryshare 16.85p 16.26p 3.6Totalexpenseratio 0.87% 0.77%

Discount(aterdeductingborrowingsatairvalue) 7.3% 13.4%Discount(aterdeductingborrowingsatpar) 7.3% 13.4%

30 June 30 June2010 2009

Total return per ordinary share

Revenue 16.85p 16.26p

Capital 229.23p (216.24p)

Total 246.08p (199.98p)

*Atmidmarketprice.

Year’s Summary

One Year Performance

(fguresrebasedto100at30June2009)

Pastperormanceisnotaguidetoutureperormance.

Source: Thomson Financial Datastream/Baillie Gifford & Co

NAV (after deducting borrowings at fair value)

Share price

FTSE World Index (in sterling terms)

Dividends are not reinvested.

20102009

J A S O D J F M A M JN

95

100

105

110

115

120

125

130

135

140

145




Five Year SummaryThe following charts indicate how an investment in Mid Wynd has performed relative

to its comparative index and its underlying net asset value over the ve year period to

30 June 2010.

fIe year suMMary

5 Year Total Return Performance


Dividend and RPI Growth


Annual Share Price Total Return and NAVTotal Return (relative to the FTSE WorldIndex Total Return in sterling terms)

Discount to Net Asset Value

(plottedonamonthlybasis)


Source: Thomson Financial Datastream

NAV (par) total return

Share price total return

FTSE World Index (in sterling terms) total return

CUMULATIVE TO 30 JUNE

20102005 2006 2007 2008 2009

80

100

120

140

160

180


NAV (par) total return

Share price total return

YEARS TO 30 JUNE

20102006 2007 2008 2009

-10

-5

0

5

10

15

20


Mid Wynd discount

The discount is the difference between Mid Wynd’s quotedshare price and its underlying net asset value (at par).

YEARS TO 30 JUNE

20092005 2006 2007 2008(25%)

(5%)

2010

(10%)

(15%)

(20%)

Source: Thomson Financial Datastream/Baillie Gifford & Co

RPI

Mid Wynd’s dividend*

*The 2008 dividend excludes the special dividendof 2.30p.

YEARS TO 30 JUNE

20092006 2007 2008

100

110

120

130

140

150

160

170

180

2010




ChaIrMan’s sTaTeMenT

Performance

Intheyearto30June2010,netassetvaluepershareroseby29.8%to1,008.2ppershare,thesharepriceincreased39.0%to935.0pandtheFTSEWorldIndexinsterlingtermsroseby19.9%.Theimprovementinperormanceshowninthesecondhalolast yearcontinuedasmarketsreboundedandMidWynddidindeed,aswehopedlastyear,managetomakehayasthesunshone.NAVpersharereachedanewhigho1,113.8pinmidApril.Inthefnaltwomonthsoouryearitebbedby9.5%romitspeakasdatahaveunveiledaslowinginthepaceoeconomicgrowth,astillsomewhatjoblessWestandthelevellingoutocorporateearningsexpectationsalbeitatimpressivelevels.Allothisisavastimprovementonthedramaandshockenduredinlate2008andearly2009.Thereisrelativelylittlementiontodayosystemicearsoverbankingsystemsand,instead,someocusonahandulominorsovereigns’solvencyproblems.Governmentshavetakenthedebtburdenuponthemselves.Someareweigheddownmorethanothersinconsequence.Ithisappearsnoveltoourgeneration,itisscarcelyunknowntoormerones.Despitethewideningosomesovereignandcorporatecreditspreads,thespectreoinationremainsapaleshadowandmostgovernmentbondyieldshavesteadilyallenintheaceorapidlyrisingstocksodebt.Thiswedidnotanticipate,

andcontinuetomistrust.Wehopethatgovernmentbondsarenotaballooninsearchoapin,orthatwouldhaveadverseconsequencesacrossmostassetclasses.

Havingbemoanedtheailureoourbondholdingstocushionusagainstthedownturninmarketslastyearitseemsonlysymmetricaltopointoutthatourbondportolio,largelythesamebondportolio,outperormedthosesameequitiesthisyearinarisingmarket.CQS,LloydscontingentconvertiblesandtheAthenadistresseddebtundareattherootothisphenomenonandarediscussedintheManagers’review.

Earnings and dividend

Earningso16.85ppersharecomparewith16.26ppershareromtheyeartoJune2009.Despitedismallevelsointerestondepositandgenerallylowcashlevelstogetherwithasteadilyallingbondallocation,revenueswerestrong.Thisreectsaewlargeindividualeatures(Seadrill,MarineHarvest,Kone).Againstourexpectationsolastyear,thereore,wefndourselvesoncemorewitharisingstreamodividendstoreport.Giventheextentosalesromthebondportolio,however,thisisunlikelytocontinue.

Afnaldividendo9.0pisrecommended,takingtheullyeartotalto15.5ppershare,anincreaseo3.3%onlastyear.


Chairman’s Statement

• Relative and absolute NAVand share price performancewas strong over the year; up29.8% and 39.0% respectively

compared to 19.9% for thecomparative index.

• Earnings per share increased to16.85p (2009 – 16.26p) and anal dividend of 9.0p per shareis being recommended, taking

the total to 15.5p per share forthe year (2009 – 15.0p).

• Investments continue to be madein stocks that should benetfrom continuing epochal shiftsin economic power or where

mispricing presents a specicopportunity.

highlights





Discount and share buybacks

Thediscountnarrowedrom13.4%to7.3%overthecourseothe year.TheBoardconsidersthelevelodiscountonaregularbasisandhasauthorisedtherepurchaseoshareswhenthiswillbeobenefttocontinuingshareholdersaswellasbeingintheinterestothoseshareholderswhomayneedtosellsomeorallotheirshares.

Duringtheyearto30June2010theCompanyutiliseditsauthoritytorepurchaseitsownsharesorthefrsttime,buyingback65,000

sharesorcancellationatacosto£616,000.AttheAnnualGeneralMeetingotheCompanytobeheldon22September2010theBoardwillseektorenewthebuybackauthorityandextendittopermitsharesboughtbacktobeheldintreasury,orreissueorcancellationatalaterdate.

Outlook

Thelongrunchallengesacedbydevelopedeconomieshavechangedlittleoverthepastyear.Massivestimulusandrecordlowinterestrateshaveproducedasoartepidrecoveryinenddemandandasparklingrecoveryinassetmarkets.Asurprisinglywiderangeopossibleprognosesjostleorspace,withdebtdeationatoneendandhighinationattheother.Thedistributionoprobabilitiesseemsunusuallywidelydispersedwithinthiswiderangeopossibleoutcomes.Fiscalretrenchmentisbeingamboyantlydeployedtosupportconfdenceinpublicfnancesandenablemonetarypolicytoremainloose.Thisissomethingoahighwireact.

Hereisasynopsisoplausible(butnotexclusive)scenariosortheindebtedWestrecentlyprovidedbyHSBC’schieeconomist:

1. The‘theological’option:fscaldefcitproblemsareallcyclical,notstructural.Nominalgrowthwilltherebysolveeverything.

2. Austerity:peoplemostlydislikeitenoughtovoteagainstit,andtoomuchoitisseldeeating.AsktheIMF.OrArgentina.OrGreece.Theewexamplesthathavehistoricallysucceeded–Swedenintheearly‘90sisroutinelyrunout–havebenefttedromoneormoreotheollowingco-drivers:devaluation,allingglobalbondyields,allingination,aleveragingupintheprivatesector,aboomingglobaleconomy.Itishardtobehopeulthatmanyothesemaybewithusincombinationstartingromhere.

3. Japanese-styledeation:tolerableinretainingthestabilityorealpercapitaGDP.Thispathonlyworksoranagedsocietywithaloathingochangewhere,critically,domesticsavingsarelargeenoughtosupportanincreasinglybustgovernment.Buyssometimebut,likedebtandination,borrowsromuturegenerations.Notopentomany.Wouldseemtomaketheunderlyingproblemworsenotbetter.

4. Deaultbystealth:negativerealinterestratesandrisingination–baby-boomerslikeditwhentheywereindebt;theymaywellnotnowtheyarethesavers.




5. Devaluation:onlytobeattemptediyourdebtislargelyinyourowncurrency.Notagameormultipleplayerssimultaneously.

6. Outrightdeault:allthatremainsatertheseotherpossibilitieshavebeenexhausted.

Happilyorourshareholders,webelievewehavemorechoicesthanjusttheseavailabletous.Therearemanymorepeopleintoday’sworldwhoareexperiencingoroughtsoontoexperiencevastlyimprovedprospectsorthemselvesandtheirchildrenthantherearethosewhofndthemselvesunder-skilled,over-aged,increasinglywithoutthewelaresaetynettheyexpectedandmiredindebt.Thatthisissoowesinlargeparttoglobalisation,industrialisation,educationandproductivity.

Despitethevicissitudesoshorttermpolicytightening,realstrengthandpotentialresidesinthosesuchasChinese,Indian,Indonesian,TurkishandBrazilianconsumers.Asyetitislargelyuntapped.Realinterestratesinthesecountriesremainhigh,thoughmainlyallingacrossrecentcycles,andaccesstocreditisstillconstrained.Shouldthischange,asseemsareasonable10yearexpectation,weplantobebenefciariesosuchacontinuedcomingoage.Lookingthroughtheoddityowherestocksarelistedandconcentratingmoreonwhereourbusinessesandtheircustomersactuallyare,theeectiveexposuretothischangeisclosertohalor60%oourassetsthantheonethirdorsothatderivesromthelistingsdata.Iwouldconesstowonderingattimeswhetherthisisyetsufcientlybold.

Separately,giventheebrilenatureomarkets,ongoingprivatesectorde-leveragingandalingeringspiritotrepidationatertheeventsolate2008andearly2009,itseemstousthereisarangeoattractiveunusual,neglected,illiquidorunlovedinvestmentsacrossaspanoendmarkets.Litigationfnance,liesettlementsandturnaroundundsareexamplesothis.Manyaceindividualchallengesoruncertaintiesthatareairlyspecifctotheirowncircumstances.Somethrowupawiderangeopotentialoutcomes.Allwouldseemtooerexploitabledegreesomispricingotheopportunitieseachholdsorinvestmentreturns.

PatrickMSBarron5August2010





Directors and ManagementThe Directors of the Company have many years’ experience of investment trusts and

professional services. Baillie Gifford & Co, a leading UK investment management rm,

have acted as Managers and Secretaries to the Company since it listed on the London

Stock Exchange in 1981.

DIreCTors anD ManaGeMenT

3 RAR Napier, LLB, LLM, ASIPRussellNapierbecameaDirectorotheCompanyin2009.HejoinedBaillieGiordin1989managingundsintheJapanese,USand,fnally,Asianmarkets.HemanagedAsianportoliosorForeign&ColonialEmergingMarketsrom1994andin1995becameAsianequitystrategistorstockbrokersCLSAinHongKong.Since1999hehasbeenaconsultantglobalmacrostrategistwithCLSAAsia-Pacifcmarkets.Heistheauthoro‘AnatomyoaBear

–LessonsromWallStreet’sFourGreatBottoms’andhehasestablishedandrunsacoursecalled‘APracticalHistoryoFinancialMarkets’atTheEdinburghBusinessSchool.HeisadirectorotheDidaskoEducationCompanyLimited,OrlockAdvisorsLimitedandtheScottishInvestmentTrustPLC.

4 MCN Scott, QCMalcolmScottbecameaDirectorotheCompanyin1990.HewaseducatedatTrinityCollege,GlenalmondandthereateratGonville&CaiusCollege,CambridgeandGlasgowUniversity.HebecameanAdvocatein1978andaQCin1991.HeisapractisingAdvocate.

Directors

1 PMS Barron, RDPatBarronhasbeenaDirectorotheCompanysince1979,wasappointedChairmanin1989andisChairmanotheNominationCommittee.HavingarmedinPerthshireor30years,heconvertedhisarmintoagolcourseinthemid-90s,retiringin2006.Heservedor20yearsintheRoyalNavalReserveretiringintherankoCommander.

2 RRJ Burns, W.S.

RichardBurnsbecameaDirectorotheCompanyatthetimeothelistingoitssharesin1981.Hequalifedasasolicitorin1971andhejoinedBaillieGiordin1973asatraineeinvestmentmanager,becomingaPartnerin1977andwasjointSeniorPartnerrom1999untilhisretiralinApril2006.HeisadirectoroEPGlobalOpportunitiesTrustPLC,StandardLieEquityIncomeTrustPLC,TheBankersInvestmentTrustPLC,JPMorganIndianInvestmentTrustplc,TheArmyandNavyInvestmentCompanyLimitedandisaTrusteeotheNationalGalleriesoScotland.




1 PMS Barron, RD 2 RRJ Burns, W.S.

DIreCTors anD ManaGeMenT

AllDirectorsaremembersotheNominationandAuditCommittees,withtheexceptionoMrBurns,whoisnotamemberotheAuditCommittee.

Managers and Secretaries

MidWyndismanagedbyBaillieGiord&Co,aninvestmentmanagementfrmormedin1927outothelegalfrmBaillie&Giord,WS,whichhadbeeninvolvedininvestmentmanagementsince1908.

BaillieGiordareoneothelargestinvestmenttrustmanagersintheUKandcurrentlymanageeightinvestmenttrusts.BaillieGiordalsomanageunittrustsandOpenEndedInvestmentCompanies,togetherwithinvestmentportoliosonbehalopensionunds,charitiesandotherinstitutionalclients,bothintheUKandoverseas.FundsunderthemanagementoradviceoBaillieGiordtotalaround£60billion.

BasedinEdinburgh,theyareoneotheleadingprivatelyownedinvestmentmanagementfrmsintheUK,with35partnersandastaoaround650.

ThemanageroMidWynd’sportolioisMichaelMacPhee,apartneroBaillieGiord.

ThefrmoBaillieGiord&CoisauthorisedandregulatedbytheFinancialServicesAuthority.

3 RAR Napier, LLB 4 MCN Scott, QC




Ten year reCorD

Capital

FTSEWorld Index

Net FTSE (in sterling Dividend paidasset value Net Share price World Index terms) Revenue and proposed Retail

At per share asset value Share total (in sterling total earnings per share price30 June (at par) total return †† price return †† terms) †† return †† per share (net) # index ††

2000 100 100 100 100 100 100 100 100 1002001 96 98 91 92 87 88 112 102 1022002 82 84 83 86 67 69 119 107 1032003 76 80 76 80 60 63 123 111 1062004 86 91 79 86 66 72 94 111 1092005▲ 98 106 92 101 74 81 110 113 1122006 116 125 114 126 83 93 131 127 1162007 129 141 127 143 94 108 151 145 1212008 128 142 124 142 83 99 236 169 1272009 100 114 102 119 70 85 189 181 1252010 130 150 141 169 84 105 196 187 131

Compoundannualreturns

5year 5.8% 7.1% 8.9% 10.8% 2.6% 5.2% 12.3% 10.5% 3.1%10year 2.7% 4.1% 3.5% 5.4% (1.8%) 0.5% 7.0% 6.4% 2.7%

Cumulative Performance (taking 2000 as 100)

†† Source:ThomsonFinancialDatastream.# The2008dividendexcludesthespecialdividendo2.30p.▲ Thefgurespriorto2005havenotbeenrestatedorthechangesinaccountingpoliciesimplementedin2006.


Equity NetAt Total shareholders’ asset value Share30 June assets* Bank loans funds per share (at par) price Discount †

£’000 £’000 £’000 p p %

2000 40,804 1,873 38,931 774.3 662.5 14.42001 39,462 1,939 37,523 746.3 602.5 19.3

2002 33,671 1,861 31,810 632.7 550.0 13.12003 31,425 1,737 29,688 590.5 501.0 15.22004 35,053 1,654 33,399 664.3 526.0 20.82005▲ 40,209 1,674 38,535 766.4 611.0 20.32006 46,672 1,622 45,050 896.0 753.0 16.02007 52,590 2,422 50,168 997.8 842.5 15.62008 51,411 1,422 49,989 994.3 824.0 17.12009 40,953 1,888 39,065 777.0 672.5 13.42010 55,409 5,347 50,062 1,008.7 935.0 7.3#

* Totalassetscomprisetotalnetassetsbeoredeductionobankloans.† DiscountisthedierencebetweenMidWynd’squotedsharepriceanditsunderlyingnetassetvalue(atpar).▲ Thefgurespriorto2005havenotbeenrestatedorthechangesinaccountingpoliciesimplementedin2006.# At30June2010thenetassetvalueaterdeductingborrowingsatairvaluewas1,008.2p.Thediscountonthesamebasiswas7.3%.

Dividend paidAvailable Revenue and proposed Total

Year to Gross for ordinary earnings per share expense Actual Potential30 June revenue shareholders per share (net)# ratio § gearing ¶ gearing ll

£’000 £’000 p p %

2000 804 432* 8.59* 8.30 0.97 86 1052001 849 484 9.64 8.50 0.89 90 1052002 858 512 10.18 8.90 0.86 82 1062003 887 533 10.60 9.20 0.93 83 1062004 721 406 8.07 9.20 0.98 95 1052005▲ 833 475 9.43 9.40 0.90 92 1042006 996 564 11.21 10.50 0.94 96 1042007 1,113 649 12.93 12.00 0.84 99 1052008 1,561 1,020 20.29 14.00 0.82 86 1032009 1,336 818 16.26 15.00 0.77 87 105

2010 1,263 847 16.85 15.50 0.87 105 111# The2008dividendexcludesthespecialdividendo2.30p.§Ratioototaloperatingcoststoaverageshareholders’unds.The2008fgureexcludestheimpactoVATrecovered.Witheectrom2009operatingcostsare

calculatedwithoutanydeductionorcorporationtaxreliethereon.Figurespriorto2009havebeenrestatedaccordingly.¶ Totalassets(includingalldebtusedorinvestmentpurposes)lessallcashandfxedinterestsecurities(excludingconvertibles)dividedbyshareholders’unds.ll Totalassets(includingalldebtusedorinvestmentpurposes)dividedbyshareholders’unds.* Restatedorchangeinaccountingpolicytochargeexpenses50:50betweenrevenueandcapital.▲ Thefgurespriorto2005havenotbeenrestatedorthechangesinaccountingpoliciesimplementedin2006.

Revenue Gearing Ratios




Contribution

Mid Wynd Contribution attributable to:

Index allocation asset allocation Performance* to relative Stock Asset

01.07.09 30.06.10 01.07.09 30.06.10 Mid Wynd Index return selection allocation†

Portfolio breakdown % % % % % % % % %

UK 9.0 8.4 8.8 22.9 39.2 19.9 3.4 3.7 (0.3)

Europeex.UK 19.8 18.4 22.5 21.9 26.2 15.9 1.9 2.4 (0.5)

NorthAmerica 47.6 47.9 20.4 20.3 29.3 26.1 (0.3) 0.5 (0.8)

AsiaPacifcincludingJapan 16.2 17.1 11.8 6.9 19.9 18.6 0.1 0.2 (0.1)

EmergingMarkets 7.4 8.2 21.9 31.7 33.2 35.7 1.5 (0.1) 1.6

Bonds – – 18.6 5.2 55.4 – 1.4 – 1.4

Cash – – 0.8 1.8 – – (0.9) – (0.9)

Loans – – (4.8) (10.7) 9.8 – 0.8 – 0.8

Total 100.0 100.0 100.0 100.0 32.7 22.9 7.9 6.7 1.2

Thefguresaboveortotalassetsaremadeupototalnetassetsbeoredeductionothebankloans.

*Equitiesincludelimitedpartnerships,unittrusts,OEICs,SICAVsandconvertibleloannotesexpectedtoconverttoequity.

Investment Changes (£’000)

Valuation at Net acquisitions/ Appreciation/ Valuation at30 June 2009 (disposals) (depreciation) 30 June 2010

Equities*:UK 3,178 6,361 1,902 11,441

ContinentalEurope 9,122 (472) 2,338 10,988

NorthAmerica 8,027 (233) 2,428 10,222

AsiaPacifcincludingJapan 4,632 (1,902) 749 3,479

EmergingMarkets 8,627 4,655 2,579 15,861

Totalequities 33,586 8,409 9,996 51,991

Bonds:Sterlingbonds 1,125 (1,000) 773 898

Eurobonds 1,005 (1,053) 160 112USdollarbonds 3,915 (3,145) 815 1,585

Japaneseyenbonds 1,145 (1,378) 233 –

Totalbonds 7,190 (6,576) 1,981 2,595

Totalinvestments 40,776 1,833 11,977 54,586

Netliquidassets 177 617 29 823

Totalassets 40,953 2,450 12,006 55,409

Performance Attribution for the year to 30 June 2010 (in sterling terms)ComputedrelativetotheFTSEWorldIndex(insterlingterms)withnetincomereinvested.


Source:Statpro/BaillieGiord&Co

*Theabovereturnsarecalculatedonatotalreturnbasiswithnetincomereinvested.MidWynd’sfguresrepresentthereturnsontheCompany’sportolioandtheindexfguresoreachgeographicalarearepresentthereturnontheappropriateFTSEindex.

†Assetallocationincludesthecontributionattributabletocurrencymovements.

Contributionscannotbeaddedtogetherastheyaregeometric;orexample,tocalculatehowareturno32.7%againstanindexreturno22.9%translatesintoarelativeperormanceo7.9%,dividetheportolioperormanceo132.7bytheindexyearendfgureo122.9andsubtractone.

PerforManCe aTTrIbuTIon anD InesTMenT ChanGes




Top Ten and Bottom Ten Contributors to PerformanceFortheyearended30June2010

ConTrIbuTors To PerforManCe anD ThIrTy LarGesT equITy hoLDInGs

2010 2009

Value % of Value

Name Region Business £’000 total assets £’000

LevelEMayaFund UnitedKingdom Artifcialintelligencebasedtradingplatorm 2,473 4.5 –

OGXPetróleoe GásParticipacoes EmergingMarkets Oilandgasexplorationandproduction–Brazil 1,545 2.8 618

EldoradoGold NorthAmerica Goldmining–Brazil,China,GreeceandTurkey 1,343 2.4 –

Kone ContinentalEurope Elevators 1,167 2.1 1,069

OceanWilsons UnitedKingdom Tugboatsandportterminals–Brazil 1,145 2.1 553

ChinaMerchantsBank EmergingMarkets Banking–China 1,137 2.0 707

BaillieGiordJapanese AsiaPacifc SmallerCompaniesFund includingJapan Investmentund 1,050 1.9 1,688

VisionOpportunity ChinaFund EmergingMarkets Investmentund–China 1,022 1.8 –

BaillieGiordDeveloped AsiaPacifc AsiaPacifcFund includingJapan Investmentund 1,013 1.8 2,037

Odontoprev EmergingMarkets Dentalhealthservices–Brazil 941 1.7 –

ReinetInvestmentsSCA ContinentalEurope Investmentholdingcompany 835 1.5 692

Seadrill ContinentalEurope Deepwateroilrigs 826 1.5 735

BetterCapital UnitedKingdom Fundinvestingindistressedbusinesses 810 1.5 –

Schindler ContinentalEurope Elevators 796 1.4 528

ASOS UnitedKingdom Onlineashionretailer 774 1.4 –

Essilor ContinentalEurope Ophthalmology 702 1.3 753

FalklandOilandGas UnitedKingdom Oilandgasexplorationandproduction –FalklandIslands 679 1.2 210

McDonalds NorthAmerica Fastoodrestaurantchain 678 1.2 279

IGGroup UnitedKingdom Spreadbetting 666 1.2 252

Healthspring NorthAmerica Medicare 665 1.2 –

JuridicaInvestments UnitedKingdom Fundolawsuits 664 1.2 398

MedcoHealthSolutions NorthAmerica Prescriptionmanagementandhealthinormation 662 1.2 499

MarineHarvest ContinentalEurope Salmonarming 636 1.1 407

Novozymes ContinentalEurope Enzymeproducer 622 1.1 427

AtlasCopco ContinentalEurope Industrialcompressorsandminingequipment 621 1.1 381

Ctrip.comInternational EmergingMarkets Travelservices–China 603 1.1 337

TheBiotechGrowthTrust UnitedKingdom Biotechnologyinvestmenttrust 600 1.1 –

DragonOil EmergingMarkets Oilandgasexplorationandproduction –Turkmenistan 570 1.0 508

Naspers EmergingMarkets Mediacompany–SouthAricaandChina 563 1.0 398

Cetip EmergingMarkets Investmentservices–Brazil 558 1.0 –

26,366 47.4 13,476

Thirty Largest Equity Holdings

Top TenName Contribution (%)

AthenaDebtOpportunitiesFund 1.1OGXPetróleoeGásParticipacoes 1.0

ASOS 0.9

FalklandOilandGas 0.9

CQSRigFinanceFund 0.7

EldoradoGold 0.7

Seadrill 0.6

LevelEMayaFund 0.6

LloydsBankSaphir6.369%2015Perpetual 0.5

Kone 0.5

Bottom TenName Contribution (%)

MarfnInvestmentGroup (0.5)USTII1.75%15/01/2028 (0.5)

PantheonInternationalParticipationsULN (0.4)

SevanMarine (0.4)

Apple (0.4)

AlliedIrishbanks (0.3)

NationalBankoGreece (0.3)

Curis (0.3)

InspurInternational (0.3)

BasileaPharmaceutica (0.3)




CLassIfICaTIon of InesTMenTs

Classication of Investments

*Equitiesincludeslimitedpartnerships,unittrusts,OEICs,SICAVsandconvertibleloannotesexpectedtoconverttoequity.

Continental North Asia Pacic Emerging 2010 2009UK Europe America incl. Japan Markets Total Total

Classication % % % % % % %

Equities*:Oilandgasproducers 1.6 0.5 0.4 – 4.7 7.2 8.0Oilequipment,servicesanddistribution 1.1 1.8 – – – 2.9 5.0Alternativeenergy – – – – 0.4 0.4 –

Oil and Gas 2.7 2.3 0.4 – 5.1 10.5 13.0

Forestryandpaper – – 0.7 – – 0.7 –Industrialmetals – – – – – – 0.5Mining – – 2.9 – 1.1 4.0 1.1

Basic Materials – – 3.6 – 1.1 4.7 1.6

Constructionandmaterials – 0.6 – – 0.7 1.3 1.4Generalindustrials – 0.6 – – – 0.6 –Electronicandelectricalequipment 0.7 – – – – 0.7 1.3Industrialengineering – 4.6 0.5 – – 5.1 5.3Industrialtransportation 2.1 – – – 2.2 4.3 2.4

Supportservices – – – – – – 0.7Industrials 2.8 5.8 0.5 – 2.9 12.0 11.1

Beverages – 0.5 – – 0.8 1.3 1.4Foodproducers – 1.1 – – – 1.1 3.1Leisuregoods – – – 0.4 0.7 1.1 1.2Personalgoods – 0.7 – – – 0.7 0.9Tobacco 0.8 – 0.9 – – 1.7 1.9

Consumer Goods 0.8 2.3 0.9 0.4 1.5 5.9 8.5

Healthcareequipmentandservices – 2.5 3.0 – 1.7 7.2 3.7Pharmaceuticalsandbiotechnology 0.6 2.2 2.5 – – 5.3 2.1

Health Care 0.6 4.7 5.5 – 1.7 12.5 5.8

Foodanddrugretailers – – – – 1.0 1.0 2.0Generalretailers 1.4 – 1.3 – 0.5 3.2 2.0

Media – – – – 1.0 1.0 1.0Travelandleisure – 0.7 1.2 0.7 1.1 3.7 1.5

Consumer Services 1.4 0.7 2.5 0.7 3.6 8.9 6.5

Fixedlinetelecommunications – – – – 0.6 0.6 –Mobiletelecommunications – – – – 0.5 0.5 1.4

Telecommunications – – – – 1.1 1.1 1.4

Electricity 0.6 – – – – 0.6 –Gas,waterandmultiutilities 0.5 – – – – 0.5 –

Utilities 1.1 – – – – 1.1 –

Banks – 0.4 0.8 – 4.7 5.9 4.5Insurance – – 0.6 – – 0.6 2.2Realestate – 0.7 – 0.5 1.0 2.2 1.8Generalfnancial – 0.9 1.7 – 1.7 4.3 3.8

Investmentcompanies 10.7 1.9 0.7 4.1 3.4 20.8 18.4Financials 10.7 3.9 3.8 4.6 10.8 33.8 30.7

Sotwareandcomputerservices 0.7 – 0.7 0.6 – 2.0 1.4Technologyhardwareandequipment – – 0.6 – 0.7 1.3 1.8

Technology 0.7 – 1.3 0.6 0.7 3.3 3.2

TotalEquities* 20.8 19.7 18.5 6.3 28.5 93.8

TotalEquities*–2009 7.7 22.1 19.6 11.4 21.0 – 81.8Bonds 1.6 0.2 2.9 – – 4.7 17.8Net Liquid Assets 0.3 0.4 0.1 0.1 0.6 1.5 0.4

TotalAssets 22.7 20.3 21.5 6.4 29.1 100.0(beoredeductionobankloans)

TotalAssets–2009 10.4 25.0 29.3 14.3 21.0 – 100.0 Bank Loans (3.6) (2.0) – (4.0) – (9.6) (4.6)

Shareholders’Funds 19.1 18.3 21.5 2.4 29.1 90.4Shareholders’Funds–2009 10.4 25.0 29.3 9.7 21.0 95.4

Numberofequityinvestments* 19 24 26 7 33 109 91




1 Marine Harvest

The world’s largest sh farmingcompany.

Picture courtesy of Marine Harvest.

(The value of our holding in MarineHarvest is £407,000)

ManaGers’ PorTfoLIo reIeW

Managers’ Portfolio Review

The portfolio

Bondshaveshrunkto5%oassetsollowingnetsales.Ourhurricanebond,Vega,appreciatedaswehadhopedandhadlittleurtherupsidetooer.Lloyds’BankSaphirnoncumulativepreerredshareswereconvertedto‘co-co’bonds,resultinginatreblingovalueromdepressedlevelsandasubsequentsale.CQSRigFinanceFund’sNAVroseromminus3pandsuspensionto25p;wequadrupledourholdingintheshareswhentheyre-quotedollowingnegotiationswiththeirbankersoninteresttermsanddebtcovenants.Athena,the

distressedsecuritiseddebtund,sawitsNAVrise70%orsoromatrough(atwhichweaddedtotheholding)asseniortranchesosecuritiseddebtpoolshaveaccumulatedadominantshareocashowsintothesevehiclesandconfdencehasreturnedamodicumoliquiditytothismarket.

Largest equity holdings

Level E Maya Fund

Thisisanewinvestmentwhichhastwoparts.TheholdingintheundrepresentsourcontributiontoseedingaundthatusesalgorithmictradingstrategiesderivedromtheworkoanEdinburghUniversitybasedteamoexpertsinartifcialintelligence.Thesecondelement

isanoptionbasedontheundinvestmentgrantingtheCompanytherighttoacquire6.25%otheunderlyingintellectualpropertyortechnologycompanyanditssisterassetmanagementcompany.

Theoptionisorafveyearterm,orafxedshareinthecapitalobothcompaniesasatthetimeoexercise,andatafxedexercisepriceo$1.25m.WepaidnothingortheoptionanditisconsequentlyheldatazerovaluationatthisearlystageotheLevelEcompanies’lives.

OGX Petróleo e Gás Participacoes

ABrazilianexplorationandproductioncompanyholdingvaluableoshoreacreageamiliarromlastyear’sreport.TheCompanyincreaseditspositionovertheyear,andthesharepricehasalso

appreciatedalongsideavourablenews.AstrategyoemployingtheretiringseniorgeologistatPetrobras,thenationaloilgiant,appearstobepayingohandsomelywithan89%drillingsuccessratetodateinthoseareaswherethegrouphaswonbids.

Kone

Theelevatorbusinessisastable,disciplined,airlyastgrowingindustrywithhighlyattractivefnancialcharacteristics.Maintenance,serviceandupgraderevenuesprovideacoresourceostrengthandrecurrence.Globalindustrialisationandurbanisationtrendsdriveunderlyingdemandornewlits.Strongcashowsdeployedinacquiringsub-scalemaintenanceportoliosascontiguousin-fllstothecorebusinessareanotherworthwhileeature.Signifcantamily

ownershipandinvolvementoersthebeneftolongtermalignmentopurposebetweencontrollersandshareholders.Schindler,anothersignifcantholdingortheCompany,enjoysthesamestrengths.Bothhavebeenandremaincorelongtermholdings.





1 Pride International

Owner of primarily semi-submersibledrilling rigs.

Picture courtesy of Pride International.

(The value of our holding in PrideInternational is £636,000)

Ocean Wilsons

Thevaluationderivesromtwoparts.First,theunderlyingBrazilianmarinebusiness–atraditionalranchiseintugboats,containerterminalsandplatormsupplyvessels.Second,aninvestmentportoliowithastronglongrunrecordorealtotalreturns.Bothelementshavedoneverywellonaverageovermanyyearsnow.Thewholeremainsavailableinthestockmarketataverylargediscounttothepublicmarketvalueoitstwohalves.

Eldorado Gold

Thisisalowcostgoldproducerwithexperienced,successul,downtoearthmanagement,assetsinChina,TurkeyandBrazilandwhichoersrisingproductionandgrowthpotentialalongsideitsunderlyingexposuretogolditsel.Goldisointerestseparatelyinrelationtotheriskoscenarios4and5mentionedintheChairman’sStatement.

China Merchants Bank

MarketshaveexpendedconsiderableenergyworryingabouttheChinesebankingsystem.Thiswassopriortoandduringtheunanticipatedcollapseoourownandappearstoremainthecasestill.Weareimpressedbythecombinationostrongandrationaldemandorcreditromthebanks’customers,stillmorebythepotentialoruturesimilardemandandalsobythestrengthoits

balancesheetcombinedwithstrong,eectiveregulationandsystemicallyhighmargins.

Vision Opportunity China Fund

VOCprovidesgrowthcapitaltoasmallnumberorapidlygrowing,largelyunlistedandamilycontrolledChineseconcerns.Theseoperateacrossabreadthodomesticindustries.Inreturn,VOCattainssignifcantequityinthesebusinessesandhelpsthemtolistontheNASDAQmarketintheUS.Followingthisprimarycycle,theund’scapitalisthensteadilyredeployedinareshroundounlisted,immaturegrowthbusinesses.Thisprocesshasbeenbothoperationallysuccessulorthefrmsandhighlyrewardingortheund,withNAV

doublinginthefrsttwoyearssincelistinginlate2007versusadeclineosome30%inthemainChinesestockindices.

Odontoprev

ThisistheleadingBraziliandentalplancompanythatacquireditsnearestcompetitorattheendo2009.Theresultinggrouphasadominantmarketpositioninahighlyimmatureandunder-penetratedindustryinayoungcountrywithrapidlygrowingincomes.Dentalplansquicklybecomehighmargin,cashgenerativeoperationsicustomerserviceandretentioniscemented,andOdontoprevhasundertakentoreturnnearlyallproftstoshareholders.Thecompanyshouldhavenodifcultyinundingitseldespitethishighdividendpayoutwhilecontinuingtogrowrapidly.





Seadrill

RecenteventsintheGuloMexicohavethrowntheworldodeepwaterdrillingintoturmoil.Seadrillhasabrandnewindustry-leadingeet,aportolioocontractstermedoutto2013,asecurestreamocashowsthereoreandadoubledigitdividendyield.Mostlikely,atsomepoint,therewillbeanopportunitytourtherconsolidateitsindustry.Weexpectthatdeepwateroilrecovery, whetheroshoreBrazil,oshoreWestArica,GuloMexicoorromextremeregionsNorthandSouth,willormacriticalelementinmeetingenergy

demandsoverthecomingtwentyyearsorsodespitegrowingincentivestoaccelerateresearchintoalternativeuels.

Reinet

ThisistheRupertamilyholdingcompany,spunoutoRichemontandcomprisedoasubstantialholdinginBATandinvestmentsmaderomcashandthedividendstreamromthoseBATshares.Havingappreciatedsignifcantlyromspinout,itstillstandsatamoderatediscounttoitsNAVandmainlydependsupontheskillwithwhichinvestmentsaremadeoranyutureoutsizereturns.TheacquisitionoorwardcommitmentsromadistressedLehmanprivateequityundbodeswellinthisregardwebelieve.

Better Capital

Anopportunisticundpioneered,managedandinvestedinby JonMoulton,whosespecialismisinturningaroundbankruptordistressedcompanies.Regrettably,weanticipatetherewillbemuchworktobedoneinthisareaovercomingyearsintheUK.

1 Marvel Entertainment

The world’s largest comic bookpublisher, Marvel has begun to produceits own lms after several years oflicensing out lm rights.

Picture courtesy of Marvel Entertainment.

(The value of our holding in MarvelEntertainment is £303,000)

2 ALL America Latina Logistica

ALL operates railway concessions inSouthern Brazil and Argentina.

Picture courtesy of ALL America LatinaLogistica.

(The value of our holding in ALL AmericaLatina Logistica is £231,000)

ASOS

Thisisanonlineclothesretailer,thenameowhichstandsorAs-Seen-On-Screen,andthathasanenthusiasticandrapidlygrowingbaseocustomersintheUK.Thebusinessmodel,whichshouldtransertoothergeographies,issomewherebetweenAmazonandZaraandwearetakenbothbyitsprospectsanditsrecentabilitytotradeverysuccessullyduringadifcultperiodorUKconsumersandbricksandmortarretailers.

Healthspring

Averytightlymanaged,lowcostAmericanproviderohealthinsuranceservices.ThevaluationhadbeenheldbackbygloomconcerningPresidentObama’shealthcarerhetoricwhenwestartedbuyingtheshares.WeeelthatHealthspring,likeanotherlargeholding,Medco,ismorepartothecostandservicesolutionthanpartotheproblem.Despitetheincompetenceoreormssoar,wemightexpecttoseethisedgetranslateintoworthwhileearningsgrowth.

Falkland Oil and Gas

WeinvestedinthiswildcatoilexplorerwithinterestingacreageintheSouthEastFalklandsbasinandaverystrongpartnerinBHP.Thesharesperormedverystronglyintherunuptothedrilling

campaignandwedisinvestedprogressivelyintothisstrength.Ourintentionhadalwaysbeentotrytoremoveourinitialstakewhilstleavingaremainingholdingtorunthroughthedrillingcampaign.Asithasturnedout,wehavemanagedratherbetterthanthat.




FollowingtheinitialToroaresults,however,whichweredisappointing, weeltthattheoptionvalueascribedtoLoligo,theremainingprospect,wasover-estimatedandhavesoldthesmallbalanceoourholdings,stillataproftthoughatalesserone.

Transactions

Thereareaewclearthematicinuencesthoughmostideasareveryspecifctotheirownuniqueprospects.TheCompanybuiltupabasketobiotechholdingsorreasonscoveredintheinterimreport.

ThethreeinternalBaillieGiordOEICshavesteadilybeensolddownasindividualideashavecomeintoreplacethem.Wellknowncompanieshavebeenreplacedbylesserknownones.Overthepastseveralyears,asdiscussedbytheChairman,theportoliohasprogressivelysoughtoutinvestmentstobeneftromcontinuingepochalshitsineconomicpower.SaversinpopulousdevelopingnationsareachievinghigherlivingstandardsandproductivityleapsevenasconsumersintheWestarealteringalongwiththeirbanksandgovernmentsollowingmanyyearsodebtaccumulation.

Someexamplesonewholdingsduringtheyearareasollows.CetipcontrolstheBrazilianpaymentssystem,MIPShasasystem-on-a-chipdesignranchisethatmaywellderivegreatopportunityrom

anexponentialgrowthinsmartphoneusage,Greenlight Capital RedependsupontheinvestmentskilloitsounderDavidEinhornandOSXupontheentrepreneurialskilloitsounderEikeBatistaandthe

needsohisrelatedexplorationandproductioncompanyOGX. Jain IrrigationisaMalthusianinvestmentinsustainablelongtermproductivitygrowthorinnumerablearmersacrosstheglobeoperatingonwaterscarceland.Mundra,India’sleadingport,expressesanoptimismoverwhereIndiantradeislikelytoheadovercomingyears.ThesameappliestoSantoswithregardtoBraziliantrade,inparticularthelikelygrowthoimportsromverylowlevelstoday.CFAOistheleadingdistributoroconsumergoodsacrossNorthernArica.Dialightisameansocapturingtheattractive

prospectsorandefcienciesoLEDlightingovercomingyears.DNOand,morerecently,Gulf Keystone PetroleumarebothrelatedtotheopeningupoKurdistan’soilbasins. Cryo Saveisdesignedtoallowparentstooertheirchildrenthechancetobeneftromadvancesinmedicalsciencebypreservingtheirumbilicalstemcells.VODoneexpectstobeabletotapintoamainlandChineseadoptionomobilelotterygames.

Portolioturnoverremainsaroundlastyear’shighlevelandabovewhattheManagerconsiderstobethelikelylongtermaverageobetweenafthandathird.Followingadramaticreboundinmarketsandintermittentperiodsoheightenedvolatilityitisperhapsnotsurprisingthatopportunitieshavearisenand/orbeenrealised.Wehopethatoursuccesseswillcontinuetobemorematerialinscale

thanourmistakesandthatwecancontinuetoproduceattractivelongtermrealtotalreturns.Uncertaintyovertheunderpinningsorecoveryremainsornowbothachallengeandanopportunity.


1 Kellogg

Leading cereal and snack producer.

Picture courtesy of Kellogg.

(The value of our holding in Kellogg is

£280,000)

2 Impala Platinum Holdings

South Africa’s second largest producerof platinum group metals.

Picture courtesy of Impala PlatinumHoldings.

(The value of our holding in ImpalaPlatinum Holdings is £335,000)




LIsT of InesTMenTs as aT 30 June 2010

Value

Classication Name Business £’000 %

UnitedKingdom

Oilandgasproducers Borders&SouthernPetroleum Oilandgasexplorationandproduction –FalklandIslands 223 FalklandOilandGas Oilandgasexplorationandproduction –FalklandIslands 679

902 1.6

Oilequipment,services anddistribution Petroac Engineeringservices–MiddleEast 296 Wellstream Pipelineproducts 314

610 1.1

Electronicandelectricalequipment Dialight LEDlighting 384 0.7

Industrialtransportation OceanWilsons Tugboats,platormsupplyvesselsand

containerhandling–Brazil 1,145 2.1Tobacco ImperialTobacco Tobacco 453 0.8

Pharmaceuticalsandbiotechnology Genus Livestockarmingproducts 357 0.6

Generalretailers ASOS Onlineashionretailer 774 1.4

Electricity DraxGroup Electricitygeneration 325 0.6

Investmentcompanies AlternativeAssetOpportunities Liesettlementsinvestmenttrust 251 BetterCapital Fundinvestingindistressedbusinesses 810 BurordCapital Fundolawsuits 370 IGGroup Spreadbetting 666 JuridicaInvestments Fundolawsuits 664 LevelEMayaFund Artifcialintelligencebasedalgorithmictrading 2,473 TheBiotechGrowthTrust Biotechnologyinvestmenttrust 600

5,834 10.7Sotwareandcomputerservices AutonomyCorporation Searchandprocessingotext,audioandvideo 365 0.7

Gas,waterandmultiutilities IslandGasResources Gasdistribution 292 0.5

Total United Kingdom Equities 11,441 20.8

ContinentalEurope

Oilandgasproducers DNOInternational Oilandgasexplorationandproduction–Kurdistan 267 0.5

Oilequipment,services anddistribution Seadrill Deepwateroilrigs 826 SevanMarine Engineeringservices 178

1,004 1.8

Constructionandmaterials Geberit Plumbingsystems 312 0.6Generalindustrials CFAO SpecialisedconsumerdistributioninArica 314 0.6

Industrialengineering AtlasCopco Industrialcompressorsandminingequipment 621

Kone Elevators 1,167 Schindler Elevators 796

2,584 4.6

Beverages Anheuser-BuschInbev Globalbrewer 283 0.5

Foodproducers MarineHarvest Salmonarming 636 1.1

Personalgoods Richemont Luxurygoods 404 0.7

Healthcareequipmentandservices CryoSaveGroup Stemcellbank 360 Essilor Ophthalmology 702 Getinge Healthcareequipment 334

1,396 2.5




LIsT of InesTMenTs

Value


ContinentalEurope(continued)

Pharmaceuticalsandbiotechnology BasileaPharmaceutica Pharmaceuticals 266 Novozymes Enzymeproducer 622 Roche Pharmaceuticalsanddiagnostics 351

1,239 2.2

Travelandleisure Ryanair Airline 411 0.7

Banks AlliedIrishBanks Bank–Ireland 196 0.4

Realestate AtriumEuropeanRealEstate Operatinganddevelopingshoppingcentres 383 0.7

Generalfnancial MarfnInvestmentGroup Investmentholdingcompany–Greece 414 Marfn5%19/03/2015CV Investmentholdingcompany–Greece 97

511 0.9

Investmentcompanies CorporaciónFinancieraAlba Investmentholdingcompany–Spain 213

ReinetInvestmentsSCA Investmentholdingcompany–Luxembourg 835 1,048 1.9

Total Continental European Equities 10,988 19.7

NorthAmerica

Oilandgasproducers PrideInternational Oshoredrillingcontractor 211 0.4

Mining EldoradoGold Goldmining–Brazil,China,GreeceandTurkey 1,343 PolarisMinerals Commercialaggregatequarries–Canada 276

1,619 2.9

Forestryandpaper Sino-Forest Commercialorestplantationoperator–China 370 0.7

Industrialengineering FirstSolar Manuacturerophotovoltaicsolarmodules 259 0.5

Tobacco Altria Tobaccoandood–US 144 PhilipMorrisInternational Tobacco–worldexUS 329

473 0.9

Healthcareequipmentandservices Healthspring Medicare 665 IntuitiveSurgical Roboticminimallyinvasivesurgicaltools 337 MedcoHealthSolutions Prescriptionmanagementandhealthinormation 662

1,664 3.0

Pharmaceuticalsandbiotechnology Celgene Biopharmaceuticals 268

Curis Biopharmaceuticaldrugdevelopment 199 Genzyme Biopharmaceuticals 231 GileadSciences Biopharmaceuticals 213 SeattleGenetics Biopharmaceuticals 293

VandaPharmaceuticals Pharmacogenetics 188 1,392 2.5

Generalretailers O’ReillyAutomotive Automotivepartsstores 257 TJXCompanies Discountclothingandhomewarestores 437

694 1.3

Travelandleisure McDonalds Fastoodrestaurantchain 678 1.2

Banks Capitalsource Caliornianbank 437 0.8

Insurance BerkshireHathaway Insuranceandinvestmentholdingcompany 359 0.6

Generalfnancial GoldmanSachsGroup Investmentbank 372 GreenlightCapitalRe Reinsurancecompany 540

912 1.7




Value


LIsT of InesTMenTs

NorthAmerica(continued)

Investmentcompanies FairaxFinancial Propertyandcasualtyinsuranceand investmentholdingcompany 416 0.7

Sotwareandcomputerservices SoleraHoldings Sotwareservicesorautomobileclaimsprocessing 416 0.7

Technologyhardwareandequipment MIPSTechnologies Embeddedsemiconductors 322 0.6

Total North American Equities 10,222 18.5

AsiaPacicincludingJapan

Leisuregoods FunaiElectric ManuactureoLCD,wirelessand plasmamonitors–Japan 213 0.4

Travelandleisure SankyoGunma ManuactureandsaleoPachinkoand slotmachines–Japan 404 0.7

Realestate ShuiOnLand Propertycompany–China 265 0.5

Investmentcompanies BaillieGiordDevelopedAsia PacifcFund Investmentund 1,013 BaillieGiordJapanese

SmallerCompaniesFund Investmentund 1,050 KenedixRealtyInvestment Realestateinvestmentund–Japan 216

2,279 4.1

Sotwareandcomputerservices VODone Onlinemedia,gamingandlottery–China 318 0.6

Total Asia Pacic including Japan Equities 3,479 6.3

OtherEmergingMarkets

Oilandgasproducers DragonOil Oilandgasexplorationandproduction –Turkmenistan 570 GulKeystonePetroleum Oilandgasexplorationandproduction –Kurdistan 248 KazMunaiGasExploration Oilandgasexplorationandproduction –Kazakhstan 283 OGXPetróleoeGásParticipacoesOilandgasexplorationandproduction –Brazil 1,545

2,646 4.7

Alternativeenergy GushanEnvironmentalEnergy Biodieselproduction–China 232 0.4

Mining ImpalaPlatinumHoldings Platinumminingcompany 392 KenmareResources Naturalresourcemining–Mozambique 206

598 1.1Constructionandmaterials JainIrrigationSystems Micro-irrigation–India 379 0.7

Industrialtransportation MundraPortandSEZ Privateport–India 290 OSXBrasil Shipyard–Brazil 471 SantosBrasilParticipacoes Containerhandlingandlogisticsservices–Brazil 525

1,286 2.2

Beverages AnadoluEes Beerandsotdrinks–Turkey 424 0.8

Leisuregoods LGElectronics Electronicgoods 380 0.7

Healthcareequipmentandservices Odontoprev Dentalhealthservices–Brazil 941 1.7

Foodanddrugretailers BIMBirlesikMagazalar Discountoodstores–Turkey 530 1.0

Generalretailers Walmex Generalretailer–Mexico 281 0.5

Media Naspers Mediacompany–SouthAricaandChina 563 1.0Travelandleisure Ctrip.comInternational Travelservices–China 603 1.1

Mobiletelecommunications MTNGroup Mobiletelecommunication–AricaandMiddleEast 299 0.5




OtherEmergingMarkets(continued)

Banks ChinaConstructionBank Bank–China 475 ChinaMerchantsBank Bank–China 1,137 ItauUnibancoBancoMultiplo Bank–Brazil 445 TurkiyeGarantiBankasi Bank–Turkey 533

2,590 4.7

Realestate ChinaVankeCompany Residentialrealestatedeveloper–China 302 RenheCommercialHoldings Undergroundshoppingmall–China 275

577 1.0

Fixedlinetelecommunications TelekomunikacjaPolska Diversifedtelecommunicationservices–Poland 320 0.6

Generalfnancial BM&FBovespa Securitiesexchangeandposttradeservices–Brazil 391 Cetip Investmentservices–Brazil 558

949 1.7Investmentcompanies BaillieGiordGreaterChinaFund Investmentund–China 331 GPInvestments PrivateequityundmanagerinvestinginLatinAmerica 253 VietnamEnterpriseInvestments Investmentund–Vietnam 261 VisionOpportunityChinaFund Investmentund–China 1,022

1,867 3.4

Technologyhardwareandequipment MediaTek Semiconductormanuacturer–Taiwan 396 0.7

Total Other Emerging Markets Equities 15,861 28.5

Total Equity Investments 51,991 93.8

FixedInterest

Sterlingdenominated CQSRigFinanceFund Oilrigbonds 563 * PantheonInternational Participationsloannotes Privateequityundloannotes 335

898 1.6

Eurodenominated SemperFinanceFRNSLP2017 EastGermanhousingassociationunding 112 0.2

USdollardenominated AthenaDebtOpportunitiesFund Distresseddebtund 1,303 CTCDO2005-1A Mortgage-backedsecurity 143 TamweelFundingCV 4.31%23/01/13 Dubaipropertybonds 139

1,585 2.9

Total Fixed Interest 2,595 4.7

Total Investments 54,586 98.5

Net Liquid Assets 823 1.5

Total Assets at Fair Value 55,409 100.0

(beoredeductionobankloans)

*denotesunlistedsecurity

LIsT of InesTMenTs

Value





TheDirectorspresenttheirReporttogetherwiththefnancialstatementsotheCompanyortheyearto30June2010.

Business Review

Business and Status

TheCompanyisaninvestmentcompanywithinthemeaningosection833otheCompaniesAct2006.

TheCompanycarriesonbusinessasaninvestmenttrust.Itwasapprovedasaninvestmenttrustundersection842otheIncomeandCorporationTaxesAct1988ortheyearended30June2009,subjecttomattersthatmayariseromanysubsequentenquirybyHMRevenue&CustomsintotheCompany’staxreturn.Inthe

opinionotheDirectors,theCompanyhassubsequentlyconducteditsaairssoastoenableittoseekapprovalundersection1158otheCorporationTaxesAct2010.

Objective

TheCompany’sobjectiveistoachievecapitalandincomegrowthbyinvestingonaworldwidebasis.

Investment Policy

MidWyndseekstomeetitsobjectiveoachievingcapitalandincomegrowththroughinvestmentprincipallyinaportolioointernationalquotedequities.Investmentsareselectedortheirinclusionwithintheportoliosolelyonthebasisothestrengthotheinvestmentcase.

TheCompanyispreparedtomovereelybetweendierentmarkets,sectors,industries,marketcapitalisationsandassetclassesasinvestmentopportunitiesdictate.TheproportionotheportolioinvestedinUKcompanieswillnotnormallyexceed25%,andgeographicalandsectoralexposuresarereportedto,andmonitoredby,theBoard

inordertoensurethattheportolioprovidesadequatediversifcation.Thetotalnumberoinvestmentswilltypicallybebetween50and150.

ExposurestoindividualentitiesaremonitoredbytheBoard.Onacquisition,noholdingshallexceed15%otheportolio.Investmentmayalsobemadeinunds(openandclosed-ended)includingthosemanagedbyBaillieGiord&Co.ThemaximumpermittedinvestmentinUKlistedinvestmentcompaniesinaggregateis15%ogrossassets.Assetsotherthanequitieswillbepurchasedromtimetotimeincludingbutnotlimitedtofxedinterestholdings,unquotedsecuritiesandderivatives.SubjecttopriorBoardapproval,theCompanymayusederivativesorinvestmentpurposesororefcientportoliomanagement(includingreducing,transerringor

eliminatinginvestmentriskinitsinvestmentsandprotectionagainstcurrencyrisk).

ItisanaimotheTrusttoprovidedividendgrowthovertime,althoughthisissubordinatetotheprimaryaimomaximisingtotalreturnstoshareholders.

Whilethereisacomparativeindexorthepurposeomeasuringperormance,noattentionispaidtothecompositionothisindexwhenconstructingtheportolioandthecompositionotheportolioislikelytovarysubstantiallyromthatotheindex.Alongtermviewistakenandtheremaybeperiodswhenthenetassetvaluepersharedeclinesbothinabsolutetermsandrelativetothecomparativeindex.Thenumberoindividualholdingswillvaryovertimeand

theportolioismanagedonaglobalbasisratherthanasaseriesoregionalsub-portolios.

Borrowingsareinvestedinequityandothermarketsasconsideredtobeappropriateoninvestmentgrounds.ThelevelogearingisdiscussedbytheBoardandManagersateveryBoardmeeting.

Directors’ Report

DIreCTors’ rePorT




DIreCTors’ rePorT

Theportionoborrowingswhichisnotinvestedinequitiesmaybe

investedinfxedinterestorotherliquidsecurities.ExceptinexceptionalcircumstancestheBoardwillnottakeoutadditionalborrowingsi,atthetimeoborrowing,thiswouldtaketheleveloeectivegearingtoequitiesbeyond130%.Equityexposurewill,onoccasions,bebelow100%oshareholders’unds.

DetailsoinvestmentstrategyandactivitythisyearcanbeoundintheChairman’sStatementonpages4to6andtheManagers’Reviewonpages13to16.

Discount

TheBoardrecognisesthatitisinthelongterminterestsoshareholderstomanagediscountvolatilityandbelievesthattheprimedriverodiscountsoverthelongertermisperormance.TheBoarddoesnot

haveaprecisediscounttargetatwhichshareswillbeboughtbackasitbelievesthattheannouncementospecifctargetsislikelytohinderratherthanhelpthesuccessulexecutionoabuybackpolicy.FuturebuybackswillbeconsideredprimarilybyreerencetotheCompany’sdiscountrelativetoitspeers.DuringtheyeartheCompanyboughtback65,000ordinaryshareswithanominalvalueo£16,250atatotalcosto£616,000.

Performance

AteachBoardmeeting,theDirectorsconsideranumberoperormancemeasurestoassesstheCompany’ssuccessinachievingitsobjectives.

Thekeyperormanceindicators(KPIs)usedtomeasuretheprogress

andperormanceotheCompanyovertimeareestablishedindustrymeasuresandareasollows:

•themovementinnetassetvalueperordinarysharecomparedtotheFTSEWorldIndex;

•themovementintheshareprice;

•thediscount;

•thetotalexpenseratio;and

•dividendpershare.

Theone,fveandtenyearrecordsortheKPIscanbeoundonpages2,3and9respectively.

Results and Dividends

Thenetassetvaluepershare(aterdeductingborrowingsatairvalue)increasedby29.8%duringtheyear,comparedtoanincreaseinthecomparativeindexo19.9%.Thediscountdecreasedrom13.4%to7.3%andthetotalexpenseratiowas0.87%.

TheBoardrecommendsafnaldividendo9.0pperordinarysharewhich,togetherwiththeinterimalreadypaid,makesatotalo15.5portheyear,anincreaseo3.3%comparedwith15.0porthepreviousyear.

Iapproved,therecommendedfnaldividendontheordinaryshareswillbepaidon7October2010toshareholdersontheregisteratthecloseobusinesson10September2010.Theex-dividenddate

is8September2010.TheCompany’sRegistraroersaDividendReinvestmentPlan(seepage56)andthefnaldateorreceiptoelectionsorthisdividendis16September2010.

Borrowings

DuringtheyeartheCompanydrewdown€1,320,000undertheUS$5millionmulti-currencyacilitywithLloydsTSBScotland,whichexpireson27February2012,and£2,000,000underaone-yearacilitywithLloydsTSBScotland,whichexpireson27August2010.

Review of the Year and Future Trends

AreviewothemaineaturesotheyearandtheinvestmentoutlookiscontainedintheChairman’sStatementandtheManagers’Reviewonpages4to6and13to16respectively.

Principal Risks and Uncertainties

TheCompany’sassetsconsistmainlyolistedsecuritiesanditsprincipalrisksarethereoremarketrelatedandincludemarketrisk(comprisingcurrencyrisk,interestrateriskandotherpricerisk),liquidityriskandcreditrisk.Anexplanationothoserisksandhowtheyaremanagediscontainedinnote21tothefnancialstatementsonpages47to52.




DIreCTors’ rePorT

OtherrisksacedbytheCompanyincludetheollowing:

Regulatory risk–ailuretocomplywithapplicablelegalandregulatoryrequirementscouldleadtosuspensionotheCompany’sStockExchangeListing,fnancialpenaltiesoraqualifedauditreport.BreachoSection1158otheCorporationTaxesAct2010couldleadtotheCompanybeingsubjecttotaxoncapitalgains.BaillieGiord’sheadsoBusinessRisk&InternalAuditandRegulatoryRiskprovideregularreportstotheAuditCommitteeonBaillieGiord’smonitoringprogrammes.TheManagersmonitorinvestmentmovementsandtheleveloorecastincomeandexpendituretoensuretheprovisionsoSection1158arenotbreached.

Operational/Financial Risk–ailureotheManagers’accountingsystemsorthoseootherthirdpartyserviceproviderscouldlead

toaninabilitytoprovideaccuratereportingandmonitoringoramisappropriationoassets.TheBoardreviewstheManagers’ReportonInternalControlsandthereportsbyotherkeythirdpartyprovidersarereviewedbytheManagersonbehalotheBoard.

Discount Volatility–thediscountatwhichtheCompany’ssharestradecanwiden.TheBoardmonitorsthelevelodiscountandtheCompanyhasauthoritytobuybackitsownshares.

Gearing Risk–theCompanymayborrowmoneyorinvestmentpurposes(sometimesknownas‘gearing’).Itheinvestmentsallinvalue,anyborrowingswillmagniytheextentothisloss.Iborrowingacilitiesarenotrenewed,theCompanymayhavetosellinvestmentstorepayborrowings.

AllborrowingsrequirethepriorapprovalotheBoardandgearinglevelsarediscussedbytheBoardandManagersateverymeeting.ThemajorityotheCompany’sinvestmentsareinquotedsecuritiesthatarereadilyrealisable.

Employees

TheCompanyhasnoemployees.

Social and Community Issues

Asaninvestmenttrust,theCompanyhasnodirectsocialorcommunityresponsibilities.TheCompanyhoweverbelievesthatitisintheshareholders’intereststoconsiderenvironmental,socialandgovernanceactorswhenselectingandretaininginvestments.

DetailsotheCompany’spolicyonsociallyresponsibleinvestmentaresetoutonpage26.

Corporate Governance

TheBoardiscommittedtoachievinganddemonstratinghighstandardsoCorporateGovernance.ThisstatementoutlineshowtheprinciplesoTheCombinedCodeonCorporateGovernancepublishedin2008(the‘CombinedCode’)andotheAssociationoInvestmentCompanies(AIC)CodeoCorporateGovernancewereappliedthroughoutthefnancialyear.

Compliance

TheBoardconfrmsthattheCompanyhascompliedthroughoutthe yearunderreviewwiththeprovisionssetoutinSection1otheCombinedCodeexceptthattheChairmanotheBoardisalsotheSeniorIndependentDirector.DuetothesmallsizeandcompositionotheBoarditisnoteltnecessarytohaveaseparateSenior

IndependentDirector.ShareholdersmayaddresstheirconcernstoanyBoardmember.

TheBoardisotheopinionthattheCompanyhascompliedwiththerecommendationsotheAICCodeinallmaterialrespects.

The Board

TheBoardhasoverallresponsibilityortheCompany’saairs.Ithasanumberomattersreservedoritsapprovalincludingstrategy,investmentpolicy,currencyhedging,gearing,treasurymatters,dividendandcorporategovernancepolicy.TheBoardalsoreviewsthefnancialstatements,investmenttransactions,revenuebudgetsandperormance.FullandtimelyinormationisprovidedtotheBoardtoenabletheBoardtounctioneectivelyandtoallow

Directorstodischargetheirresponsibilities.

TheBoardcomprisesourDirectors,allowhomarenon-executive.TheexecutiveresponsibilityorinvestmentmanagementhasbeendelegatedtotheCompany’sManagersandSecretaries,BaillieGiord&Co,and,inthecontextoaBoardcomprisingentirelynon-executiveDirectors,thereisnochieexecutiveofcer.

TheDirectorsbelievethattheBoardhasabalanceoskillsandexperiencethatenablesittoprovideeectivestrategicleadershipandpropergovernanceotheCompany.InormationabouttheDirectors,includingtheirrelevantexperience,canbeoundonpage7.

ThereisanagreedprocedureorDirectorstoseekindependentproessionaladvice,inecessary,attheCompany’sexpense.

No. of ordinary

Name 25p shares held % of issue

BrewinDolphinSecuritiesLimited–Indirect 249,763 5.0MrMWMRMacPhee–Direct 228,730 4.6MrRRJBurns–Direct 162,500 3.3

–Indirect 23,900 0.5

TheaboveinormationhasbeenintimatedtotheCompanyasat3August2010.

Major Interests in Shares




DIreCTors’ rePorT

Terms of Appointment

LetterswhichspeciythetermsoappointmentareissuedtonewDirectors.Thelettersoappointmentareavailableorinspectiononrequest.

UndertheprovisionsotheCompany’sArticlesoAssociation,aDirectorappointedduringtheyearisrequiredtoretireandseekelectionbyshareholdersatthenextAnnualGeneralMeeting.Directorsarerequiredtosubmitthemselvesorre-electionatleastonceeverythreeyearsandDirectorswhohaveservedormorethannineyearsoerthemselvesorre-electionannually.

Independence of Directors

AllotheDirectors,withtheexceptionoMrRRJBurns,areconsideredbytheBoardtobeindependentotheManagersandreeoany

businessorotherrelationshipwhichcouldintererewiththeexerciseotheirindependentjudgement.MrRRJBurnsisnotconsideredtobeindependentashewasaseniorpartneroBaillieGiord&Countilheretiredon30April2006.AsMrRRJBurnshasservedormorethannineyears,heoershimselorre-electionannually.

TheDirectorsrecognisetheimportanceosuccessionplanningorcompanyboardsandtheBoard’scompositionisreviewedannually.TheBoardisotheviewthatlengthoservicewillnotnecessarilycompromisetheindependenceorcontributionoDirectorsoaninvestmenttrustcompany,wherecontinuityandexperiencecanbeabenefttotheBoard.TheBoardconcurswiththeviewexpressedintheAICCodethatlongservingdirectorsshouldnotbeprevented

rombeingconsideredindependent.Followingormalperormanceevaluation,andnotwithstandingthatMrPMSBarronandMrMCNScotthavebothbeenDirectorsormorethannineyears,theBoardhasconcludedthatthisdoesnotaecttheirindependence.TheyarebothconsideredtobeindependentincharacterandjudgementandtheirskillsandexperienceaddsignifcantlytothestrengthotheBoard.TheBoardbelievesthatnoneotheothercommitmentsoMrPMSBarronandMrMCNScott,assetoutonpage7othisreport,intererewiththedischargeotheirdutiestotheCompanyandtheBoardissatisfedthattheyarecapableodevotingsufcienttimetotheCompany.MrPMSBarronandMrMCNScottoerthemselvesorre-electionannually.

Meetings

ThereisanannualcycleoBoardmeetingswhichisdesignedtoaddress,inasystematicway,overallstrategy,reviewoinvestmentpolicy,investmentperormance,marketing,revenuebudgets,dividendpolicyandcommunicationwithshareholders.TheBoardconsidersthatitmeetssufcientlyregularlytodischargeitsdutieseectively.ThetableaboveshowstheattendancerecordortheBoardandCommitteeMeetingsheldduringtheyear.AllotheDirectorsattendedtheAnnualGeneralMeeting.

Nomination Committee

TheNominationCommitteeconsistsothewholeBoardandtheChairmanotheBoardistheChairmanotheCommittee.TheCommitteemeetsonanannualbasisandatsuchothertimes

asmayberequired.TheCommitteehaswrittentermsoreerencewhichincludereviewingtheBoard,identiyingandnominatingnewcandidatesorappointmenttotheBoard,Boardappraisal,successionplanningandtraining.TheCommitteealsoconsiderswhetherDirectorsshouldberecommendedorre-electionbyshareholders.TheCommitteeisresponsibleorconsideringDirectors’potentialconictsointerestandormakingrecommendationstotheBoardonwhetherornotthepotentialconictsshouldbeauthorised.ThetermsoreerenceareavailableonrequestromtheCompanyandontheCompany’spageotheManagers’website:www.midwynd.co.uk .

Performance Evaluation

TheNominationCommitteemettoassesstheperormanceotheChairman,eachDirector,theBoardasawholeanditsCommittees,aterinvitingeachDirectorandtheChairmantoconsiderandrespondtoasetoquestions.TheappraisalotheChairmanwasledbyMrRRJBurns.

Theappraisalsconsidered,amongstothercriteria,thebalanceoskillsotheBoard,thecontributionoindividualDirectorsandtheoveralleectivenessotheBoardanditsCommittees.FollowingthisprocessitwasconcludedthattheperormanceoeachDirector,theChairman,theBoardanditsCommitteescontinuestobeeectiveandeachDirectorandtheChairmanremaincommittedtotheCompany.

AreviewotheChairman’sandtheotherDirectors’commitmentswascarriedoutandtheNominationCommitteeissatisfedthattheyarecapableodevotingsufcienttimetotheCompany.TherewerenosignifcantchangestotheChairman’sothercommitmentsduringtheyear.

Audit Nomination

Board Committee Committee

Number of meetings 5 2 1

PMSBarron 5 2 1†RRJBurns 5 2 1 RARNapier(appointed10August2009) 4 1 1 MCNScott 5 2 1

†MrRRJBurnsisnotamemberotheAuditCommitteebuthewasinattendanceatthemeetings.

Directors’ Attendance at Meetings

http://www.midwynd.co.uk/







Induction and Training

NewDirectorsareprovidedwithaninductionprogrammewhichistailoredtotheparticularcircumstancesotheappointee.RegularbriefngsareprovidedonchangesinregulatoryrequirementsthatcouldaecttheCompanyandDirectors.Directorsreceiveotherrelevanttrainingasnecessary.

Remuneration

AsalltheDirectorsarenon-executive,theprovisionsotheCombinedCodeinrespectoDirectors’remunerationarenotrelevanttotheCompanyexcepttotheextentthattheyrelatespecifcallytonon-executiveDirectors.ConsequentlythereisnorequirementoraseparateRemunerationCommittee.Directors’eesareconsideredbytheBoardasawholewithinthelimitsapprovedbyshareholders.

TheCompany’spolicyonremunerationissetoutintheDirectors’RemunerationReportonpages29and30.

Internal Controls and Risk Management

TheDirectorsacknowledgetheirresponsibilityortheCompany’ssystemointernalcontrolsandorreviewingitseectiveness.Thesystemointernalcontrolsisdesignedtomanageratherthaneliminatetheriskoailuretoachievebusinessobjectivesandcanonlyprovidereasonablebutnotabsoluteassuranceagainstmaterialmisstatementorloss.

TheDirectorsconfrmthattheyhavereviewedtheeectivenessothesystemandtheyhaveproceduresinplacetoreviewitseectivenessonaregularbasis.Nosignifcantweaknesseswereidentifedinthe

yearunderreview.TheBoardconfrmsthatthereisanongoingprocessoridentiying,evaluatingandmanagingthesignifcantrisksacedbytheCompanyinaccordancewiththeguidance‘InternalControl:RevisedGuidanceorDirectorsontheCombinedCode’.

Thepracticalmeasurestoensurecompliancewithregulationandcompanylaw,andtoprovideeectiveandefcientoperationsandinvestmentmanagement,havebeendelegatedtotheManagersandSecretaries,BaillieGiord&Co,underthetermsotheManagementAgreement.TheBoardacknowledgesitsresponsibilitiestosuperviseandcontrolthedischargebytheManagersandSecretariesotheirobligations.

BaillieGiord&Cohavebeendelegatedresponsibilityorthedesign,implementationandmaintenanceocontrolpoliciesandprocedurestosaeguardtheassetsotheCompanyandtomanageitsaairsproperly.Thisresponsibilityalsoextendstomaintainingeectiveoperationalandcompliancecontrolsandriskmanagement.

TheBaillieGiord&CoheadsoBusinessRisk&InternalAuditand

RegulatoryRiskprovidetheBoardwithregularreportsonBaillieGiord&Co’smonitoringprogrammes.Thereportingproceduresorthesedepartmentsaredeinedandormalisedwithinaservicelevelagreement.BaillieGiord&CoconductanannualreviewotheirsystemointernalcontrolswhichisdocumentedwithinaninternalcontrolsreportwhichcomplieswithTechnicalReleaseAAF01/06–AssuranceReportsonInternalControlsoServiceOrganisationsmadeavailabletoThirdParties.ThisreportisindependentlyreviewedbyBaillieGiord&Co’sauditorsandacopyissubmittedtotheAuditCommittee.

TheCompany’sinvestmentsaresegregatedromthoseoBaillieGiord&CoandtheirotherclientsthroughtheappointmentoTheBankoNewYorkMellonasindependentcustodianotheCompany’sinvestments.

AdetailedriskmapispreparedwhichidentifesthesignifcantrisksacedbytheCompanyandthekeycontrolsemployedtomanagetheserisks.

TheseproceduresensurethatconsiderationisgivenregularlytothenatureandextentotherisksacingtheCompanyandthattheyarebeingactivelymonitored.Wherechangesinriskhavebeenidentifedduringtheyeartheyalsoprovideamechanismtoassesswhetherurtheractionisrequiredtomanagetherisksidentifed.TheBoardconfrmsthattheseprocedureshavebeeninplacethroughouttheCompany’sfnancialyearandcontinuetobeinplaceuptothedateoapprovalothisReport.

Internal Audit

TheAuditCommitteecarriesoutanannualreviewotheneedoraninternalauditunction.TheAuditCommitteecontinuestobelievethatthecomplianceandinternalcontrolsystemsandtheinternalauditunctioninplacewithintheManagersandSecretariesprovidesufcientassurancethatasoundsystemointernalcontrol,whichsaeguardsshareholders’investmentandtheCompany’sassets,ismaintained.Aninternalauditunction,specifctotheCompany,isthereoreconsideredunnecessary.

Accountability and Audit

TherespectiveresponsibilitiesotheDirectorsandtheAuditorsin

connectionwiththeFinancialStatementsaresetoutonpages31and32.

Nature Ordinary 25p shares held at

Name of interest 30 June 2010 30 June 2009

†PMSBarron Benefcial 38,234 38,200 RRJBurns Benefcial 162,500 162,500 Non-benefcialTrustee 23,900 23,900

†RARNapier Benefcial 49,565 – †MCNScott Benefcial 116,338 116,338 Non-benefcialTrustee 50,000 50,000

†MemberotheAuditCommittee.

Directors’ Interests

TheDirectorsattheyearend,andtheirinterestsintheCompany,wereasshownopposite.

TherehavebeennochangesintimatedintheseDirectors’interestsupto3August2010.

DIreCTors’ rePorT




Going Concern

TheCompany’sprincipalrisksaremarketrelatedandincludemarketrisk,liquidityriskandcreditrisk.Anexplanationotheserisksandhow

theyaremanagediscontainedinnote21tothefnancialstatements.TheCompany’sassets,themajorityowhichareinvestmentsinquotedsecuritieswhicharereadilyrealisable,exceeditsliabilitiessignifcantly.AllborrowingsrequirethepriorapprovalotheBoard.GearinglevelsandcompliancewithborrowingcovenantsarereviewedbytheBoardonaregularbasis.Accordingly,thefnancialstatementshavebeenpreparedonthegoingconcernbasisasitistheDirectors’opinionthattheCompanywillcontinueinoperationalexistenceortheoreseeableuture.

Audit Committee

AnAuditCommitteehasbeenestablishedconsistingoalltheindependentnon-executiveDirectors.Itsauthorityanddutiesare

clearlydefnedwithinitswrittentermsoreerencewhichareavailableonrequestandontheCompany’spageotheManagers’website:www.midwynd.co.uk.MrRARNapierhassucceededMrMCNScottasChairmanotheAuditCommittee.TheCommittee’s responsibilitieswhichweredischargedduringtheyearinclude:

•monitoringandreviewingtheintegrityothehal-yearlyandannualfnancialstatementsandanyormalannouncementsrelatingtotheCompany’sfnancialperormance;

•reviewingstandardsointernalcontrolandriskmanagement;

•makingrecommendationstotheBoardinrelationtotheappointmentotheexternalauditorsandapprovingtheremunerationandtermsotheirengagement;

•developingandimplementingpolicyontheengagementotheexternalauditorstosupplynon-auditservices(therewerenonon-auditservicesduringtheyear);

•reviewingandmonitoringtheindependence,objectivityandeectivenessotheexternalauditors;

•reviewingthearrangementsinplacewithinBaillieGiord&Cowherebytheirstamay,inconfdence,raiseconcernsaboutpossibleimproprietiesinmattersofnancialreportingorothermattersinsoarastheymayaecttheCompany;

•reviewingannuallythetermsotheInvestmentManagementAgreement;and

•consideringannuallywhetherthereisaneedortheCompanytohaveitsowninternalauditunction.

Scott-MoncrieareengagedastheCompany’sAuditors.Havingconsideredtheexperienceandtenureotheauditpartnerandstaandthenatureandleveloservicesprovided,thecommitteeremainssatisfedwiththeAuditors’eectiveness.Theauditpartnersresponsibleortheauditarerotatedevery5yearsandthecurrentleadpartnerhasbeeninplaceor3years.TherearenocontractualobligationsrestrictingtheCompany’schoiceoexternalauditor.TheCommitteereceivesconfrmationromtheAuditorsthattheyhavecompliedwiththerelevantUKproessionalandregulatoryrequirementsonindependence.

Relations with Shareholders

TheBoardplacesgreatimportanceoncommunicationwithshareholders.TheCompany’sManagersmeetregularlywith

shareholdersandreportshareholders’viewstotheBoard.TheChairmanisavailabletomeetwithshareholdersasappropriate.ShareholderswishingtocommunicatewithanymembersotheBoardmaydosobywritingtothemattheaddressonthebackcover.

TheCompany’sAnnualGeneralMeetingprovidesaorumorcommunicationwithallshareholders.TheleveloproxieslodgedoreachresolutionisannouncedatthemeetingandispublishedontheCompany’spageotheManagers’website:www.midwynd.co.uk subsequenttothemeeting.ThenoticeperiodortheAnnualGeneralMeetingisatleasttwentyworkingdays.Shareholdersandpotentialinvestorsmayobtainup-to-dateinormationontheCompanyromtheManagers’website.

Voting Policy and Environmental, Social and Governance FactorsTheCompanyhasgivendiscretionaryvotingpowerstotheinvestmentmanagers,BaillieGiord&Co.TheManagersvoteagainstresolutionstheyconsidermaydamageshareholders’rightsoreconomicinterests.TheCompanybelievesthatitisintheshareholders’intereststoconsiderenvironmental,socialandgovernance(ESG)actorswhenselectingandretaininginvestmentsandhaveaskedtheManagerstotaketheseissuesintoaccount.TheManagersdonotexcludecompaniesromtheirinvestmentuniversepurelyonthegroundsoESGactorsbutadoptapositiveengagementapproachwherebymattersarediscussedwithmanagementwiththeaimoimprovingtherelevantpoliciesandmanagementsystemsandenablingtheManagerstoconsiderhow

ESGactorscouldimpactlongterminvestmentreturns.TheManagers’policyhasbeenreviewedandendorsedbytheBoard.

TheManagersaresignatoriestotheUnitedNationsPrinciplesorResponsibleInvestmentandtheCarbonDisclosureProject.

Conicts of Interest

EachDirectorsubmitsalistopotentialconictsointeresttotheNominationCommitteeonanannualbasis.TheCommitteeconsidersthesecareully,takingintoaccountthecircumstancessurroundingthem,andmakesarecommendationtotheBoardonwhetherornotthepotentialconictsshouldbeauthorised.Boardauthorisationisoraperiodooneyear.HavingconsideredthelistsopotentialconictstherewerenosituationswhichgaverisetoadirectorindirectinterestoaDirectorwhichconictedwiththeinterestsotheCompany.

Investment Managers

TheBoardasawholeulflstheunctionotheManagementEngagementCommittee.AnInvestmentManagementAgreementbetweentheCompanyandBaillieGiord&CosetsoutthemattersoverwhichtheManagershaveauthorityinaccordancewiththepoliciesanddirectionso,andsubjecttorestrictionsimposedby,theBoard.TheManagementAgreementisterminableonnotlessthan12months’notice.CareulconsiderationhasbeengivenbytheBoardastothebasisonwhichthemanagementeeischarged.TheBoardconsidersthatmaintainingarelativelylowtotalexpense

ratioisinthebestinterestsoallshareholders.TheBoardisalsootheviewthatcalculatingtheeewithreerencetoperormancewouldbeunlikelytoexertapositiveinuenceoverthelongtermperormance.DetailsotheeearrangementswithBaillieGiord&Coareshownonpage40.

DIreCTors’ rePorT

http://www.bailliegifford.com/pages/UKPersonalInvestors/Literature/InvestmentTrustLiterature.aspx













TheBoardconsiderstheinvestmentmanagementandsecretarialarrangementsortheCompanyonanongoingbasisandaormalreviewisconductedannually.TheBoardconsiders,amongstothers,

theollowingtopicsinitsreview:thequalityothepersonnelassignedtohandletheCompany’saairs;theinvestmentprocessandtheresultsachievedtodate;theadministrativeservicesprovidedbytheSecretariesandthemarketingeortsundertakenbytheManagers.FollowingthemostrecentreviewitistheopinionotheDirectorsthatthecontinuingappointmentoBaillieGiord&CoasManagers,onthetermsagreed,isintheinterestsoshareholdersasawhole.

Directors

InormationabouttheDirectors,includingtheirrelevantexperience,canbeoundonpage7.

MrRARNapierwasappointedtotheBoardon10August2009

andelectedbytheCompany’sshareholdersattheAnnualGeneralMeetingheldon29September2009.

MrPMSBarron,MrRRJBurnsandMrMCNScott,havingservedormorethannineyears,aresubjecttoannualre-electionandwillthereoreberetiringattheAnnualGeneralMeetingandwilloerthemselvesorre-election.Followingormalperormanceevaluation,theBoardconsidersthattheperormanceoMrPMSBarron,MrRRJBurns,andMrMCNScottcontinuestobeeectiveandeachremainscommittedtotheCompany.TheircontributiontotheBoardisgreatlyvaluedandtheBoardrecommendstheirre-electiontoshareholders.

Directors’ Indemnity and Insurance

TheCompanyhasenteredintodeedsoindemnityinavouroeachoitsDirectors.Thedeedscoveranyliabilitiesthatmayarisetoathirdparty,otherthantheCompany,ornegligence,deaultorbreach otrustorduty.TheDirectorsarenotindemnifedinrespectoliabilitiestotheCompany,anyregulatoryorcriminalfnes,anycostsincurredinconnectionwithcriminalproceedingsinwhichtheDirectorisconvictedorcivilproceedingsbroughtbytheCompanyinwhichjudgementisgivenagainsthim.Inaddition,theindemnitydoesnotapplytoanyliabilitytotheextentthatitisrecoveredromanotherperson.

TheCompanyalsomaintainsDirectors’andOfcers’LiabilityInsurance.

Share CapitalCapital Structure

TheCompany’scapitalstructureconsistedo4,962,766ordinaryshareso25peachat30June2010.TherearenorestrictionsconcerningtheholdingortranserotheCompany’sordinarysharesandtherearenospecialrightsattachedtoanyotheshares.

DividendsTheordinarysharescarryarighttoreceivedividends.InterimdividendsaredeterminedbytheDirectors,whereastheproposedfnaldividendissubjecttoshareholderapproval.

Capital Entitlement

Onawindingup,atermeetingtheliabilitiesotheCompany,thesurplusassetswillbepaidtoordinaryshareholdersinproportiontotheirshareholdings.

Voting

Eachordinaryshareholderpresentinpersonorbyproxyisentitledtoonevoteonashowohandsand,onapoll,toonevoteor

everyshareheld.Inormationonthedeadlinesorproxyappointmentscanbeoundonpage55.

Market Purchases of Own Shares

AttheAGMinSeptember2009theCompanywasgrantedauthoritytomakemarketpurchasesoupto753,662ordinaryshares(equivalentto14.99%oitsissuedsharecapital),suchauthoritytoexpireattheAGMotheCompanytobeheldin2010.Duringthe yearunderreviewtheCompanyboughtback65,000ordinaryshares(nominalvalue£16,250)ontheLondonStockExchangeorcancellation.Thetotalconsiderationortheseshareswas£616,000.

Asat3August2010,theCompanyhadnotboughtbackanysharessincetheyearend.Theprincipalreasonsorsharebuy-backsare:

(i) toenhancethenetassetvalueorcontinuingshareholdersbypurchasingsharesatadiscounttotheprevailingnetassetvalue;and

(ii) toaddressanyimbalancebetweenthesupplyoanddemandortheCompany’ssharesthatresultsinadiscountothequotedmarketpricetothepublishednetassetvalueperordinaryshare.

Resolution11,whichisbeingproposedasaspecialresolution,willauthorisetheCompanytomakemarketpurchasesoitsownordinaryshares.

TheDirectorsareseekingshareholders’approvalattheAnnualGeneralMeetingtorenewtheauthoritytomakemarketpurchasesoupto14.99%otheCompany’sordinarysharesinissueatthedateopassingotheresolution,suchauthoritytoexpireattheconclusionothenextAnnualGeneralMeetingotheCompanyorontheexpiryo15monthsromthedateopassingotheresolution,whicheverisearlier.

InaccordancewiththeListingRulesotheUKListingAuthority,themaximumprice(excludingexpenses)thatmaybepaidontheexerciseotheauthoritywillbethehighero(i)5percentabovetheaveragemarketvalueotheordinaryshares(asderivedromtheDailyOfcialListotheLondonStockExchange)overthefve

businessdaysimmediatelyprecedingthedateopurchase;and(ii)thehigherothelastindependenttradeandthehighestcurrentindependentbidontheLondonStockExchange.Theminimumprice(exclusiveoexpenses)thatmaybepaidwillbe25ppershare.

TheauthoritywillnotoitselorcetheCompanytomakemarketpurchasesoitsordinarysharesbutitisconsidereddesirableortheCompanytohavethepowertopurchasesuchshareswhenconsideredappropriate.TheauthoritymaybeusedbytheCompanytomakeaseriesopurchasesoitsordinarysharesorasinglepurchaseothemandanypurchase(s)oordinaryshareswillbemadewithinguidelinesestablishedbytheBoardromtimetotime.

DIreCTors’ rePorT




Theauthoritytomakemarketpurchases,iconerred,willonlybeexerciseditheDirectorsareotheopinionthatthenetassetvalueperordinarysharewillbeenhancedortheremainingshareholders

anditisconsideredtobeinthebestinterestsoshareholdersgenerallyoritheoverallfnancialpositionotheCompanywastobeneftromsuchpurchases.ItheCompanypurchasesanysharesunderthisauthority,itmaycancelsuchsharesorholdthemintreasury.TheDirectorsbelieveitisadvantageousortheCompanytohavethischoice.NodividendswouldbepaidontreasurysharesandtheCompanycannotexerciseanyrights(includinganyrighttoattendorvoteatmeetings)inrespectothoseshares.Shareswillonlybere-soldromtreasuryatapremiumtothenetassetvalueperordinaryshare.

Authority to Allot Shares and Disapply Pre-emption Rights

Resolution9intheNoticeotheAnnualGeneralMeetingseekstorenewtheDirectors’generalauthoritytoallotsharesintheCompanyuptoanaggregatenominalvalueo£413,522.Thisamountrepresentsapproximately33.3%otheCompany’stotalordinarysharecapitalinissueasat3August2010(thelatestpracticabledatepriortopublicationothisdocument)andmeetsinstitutionalguidelines.

Resolution10,whichisproposedasaspecialresolution,seekstoprovidetheDirectorswithauthoritytoallotequitysecuritiesandtosellordinarysharesheldintreasuryonanon-pre-emptivebasisorcash(i.e.withoutfrstoeringthemtoexistingshareholderspro-ratatotheirexistingshareholdings)uptoanaggregatenominalamounto£124,069(representingapproximately10%otheissuedsharecapitalotheCompanyasat3August2010)(thelatestpracticable

datepriortopublicationothisdocument).TheauthoritiessoughtinResolutions9and10willcontinueuntiltheearlierotheAnnualGeneralMeetingtobeheldin2011ortheexpiryo15monthsromthedateopassingotheseresolutions.

WhiletheDirectorshavenopresentintentionousingtheauthoritieswhichwillbeconerredbyResolutions9and10,theyenvisagedoingsoattimeswhenthesharepricestandsatapremiumtonetassetvalueandnaturalliquidityisunabletomeetdemands.TheDirectorswillnotmakeanyissueonewordinarysharestoinvestorsunlesstheyconsideritadvantageoustotheCompanytodoso,andnoissueoordinaryshareswillbemadepursuanttotheauthorisationinResolution9whichwouldeectivelyalterthecontrolotheCompanywithoutthepriorapprovaloshareholders

ingeneralmeeting.

Duringtheyearnoordinaryshareswereallottedorcash.

TheCompanydoesnotholdanysharesintreasuryasat3August2010,thelatestpracticabledatepriortopublicationothisdocument.TheCompanydoesnothaveanywarrantsoroptionsinissue.

Creditor Payment Policy

ItistheCompany’spaymentpolicyortheorthcomingfnancialyeartoobtainthebesttermsorallbusiness.Ingeneral,theCompany

agreeswithitssuppliersthetermsonwhichbusinesswilltakeplaceanditisitspolicytoabidebytheseterms.TheCompanyhadnotradecreditorsat30June2010or30June2009.

Disclosure of Information to Auditors

TheDirectorsconfrmthatsoaraseachotheDirectorsisawarethereisnorelevantauditinormationowhichtheCompany’sauditorsareunawareandtheDirectorshavetakenallthestepsthattheymightreasonablybeexpectedtohavetakenasDirectorsinordertomakethemselvesawareoanyrelevantauditinormationandtoestablishthattheCompany’sauditorsareawareothatinormation.

Independent Auditors

TheAuditors,Scott-Moncrie,arewillingtocontinueinofceandresolutionsconcerningtheirreappointmentandremunerationwillbeproposedattheAnnualGeneralMeeting.

Recommendation

TheDirectorsunanimouslyrecommendyoutovoteinavourotheresolutionstobeproposedattheAnnualGeneralMeetingasitistheirviewthattheresolutionsareinthebestinterestsotheCompanyanditsshareholdersasawhole,consistentwiththeDirectors’dutytoactinthewaymostlikelytopromotethesuccessotheCompanyorthebeneftoitsshareholdersasawhole.

RichardRJBurnsDirector5August2010

DIreCTors’ rePorT




DIreCTors’ reMuneraTIon rePorT

2010 2009

£ £

PMSBarron 16,500 16,500RRJBurns 12,000 12,000MIngall(deceasedFebruary2009) – 8,000

RARNapier(appointedAugust2009) 10,734 –MCNScott 12,000 12,000

51,234 48,500

TheDirectorswhoservedintheyearreceivedtheaboveemolumentsintheormoees.

Directors’ Emoluments for the Year (audited)

Directors’ Remuneration Report

TheBoardhaspreparedthisreport,inaccordancewiththerequirementsotheCompaniesAct2006.AnordinaryresolutionortheapprovalothisreportwillbeputtothemembersattheorthcomingAnnualGeneralMeeting.

ThelawrequirestheCompany’sauditorstoauditcertainothedisclosuresprovided.Wheredisclosureshavebeenaudited,theyareindicatedassuch.Theauditors’opinionisincludedintheirreportonpages32and33.

Remuneration CommitteeTheCompanyhasourDirectorsallowhomarenon-executive.ThereisnoseparateremunerationcommitteeandtheBoardasawholeconsiderschangestoDirectors’eesromtimetotime.BaillieGiord&Co,whohavebeenappointedbytheBoardasManagersandSecretaries,provideadvicewhentheBoardconsiderstheleveloDirectors’ees.

Policy on Directors’ fees

TheBoard’spolicyisthattheremunerationoDirectorsshouldbesetatareasonablelevelthatiscommensuratewiththedutiesandresponsibilitiesotheroleandconsistentwiththerequirementtoattractandretainDirectorsotheappropriatequalityandexperience.ItshouldalsoreecttheexperienceotheBoardasawhole,beairandshouldtakeaccountotheleveloeespaidbycomparableinvestmenttrusts.Itisintendedthatthispolicywillcontinueorthe yearending30June2011andsubsequentyears.

Theeesorthenon-executiveDirectorsaredeterminedwithinanaggregatelimitsetoutintheCompany’sArticlesoAssociation,whichcurrentlystandsat£75,000.Non-executiveDirectorsarenoteligibleoranyotherremunerationapartromthereimbursementoallowableexpenses.

TheBoardcarriedoutareviewotheleveloDirectors’eesduringtheyearandconcludedthattheannualeepayabletoeachDirectorshouldremainunchangedat£12,000andtheChairman’sadditional eeshouldremainunchangedat£4,500.Directors’eeswerelast

increasedon1July2007.

Sums paid to Third Parties (audited)

TheDirectors’eespayabletoRARNapierwerepaidtoOrlockAdvisorsLimitedormakinghisservicesavailableasaDirectorotheCompany.

Directors’ service contracts

ItistheBoard’spolicythatnoneotheDirectorshasaservicecontract.AllotheDirectorshavebeenprovidedwithappointmentlettersandthetermsotheirappointmentprovidethatDirectorsshallretireandbesubjecttoelectionatthefrstAnnualGeneralMeetingatertheirappointment.Thereatertheyareobligedtoretireeverythreeyears,andmay,itheywish,oerthemselvesorre-election.TheBoardhasalsoresolvedthatDirectorswhohaveservedontheBoardormorethannineyearswillsubmitthemselvesorre-electionannually.Thereisnonoticeperiodandnoprovisionorcompensationuponearlyterminationoappointment.




DIreCTors’ reMuneraTIon rePorT

Date of Due date for

appointment re-election

PMSBarron 9May1979 AGM2010RRJBurns 25September1981 AGM2010RARNapier 10August2009 AGM2012

MCNScott 12February1990 AGM2010

Directors’ Service Details

Company performance

Thegraphbelowcomparesthetotalreturn(assumingalldividendsarereinvested)toMidWynd’sordinaryshareholderscomparedtothetotalshareholderreturnonanotionalinvestmentmadeuposharesinthecomponentpartsotheFTSEAll-ShareIndex.Thisindexwaschosenorcomparisonpurposes,asitisawidelyusedmeasureoperormanceorUKlistedcompanies(FTSEWorldIndexinsterlingterms,whichistheCompany’scomparativeindex,isprovidedorinormationpurposesonly).

Approval

TheDirectors’RemunerationReportonpages29and30wasapprovedbytheBoardoDirectorsandsignedonitsbehalon5August2010.

RichardRJBurnsDirector

Performance Graph



Mid Wynd’s share price

FTSE World Index (in sterling terms)

FTSE All-Share

All figures are total returns(assuming net dividends are reinvested).

Past performance is not a guide tofuture performance.

CUMULATIVE TO 30 JUNE

20092006 2007 20082005 2010

80

100

120

140

160

180




Statement of Directors’ Responsibilitiesin Respect of the Annual Report andthe Financial Statements

sTaTeMenT of DIreCTors’ resPonsIbILITIes

fnancialstatementsandtheDirectors’RemunerationReportcomplywiththeCompaniesAct2006.TheyarealsoresponsibleorsaeguardingtheassetsotheCompanyandhenceortakingreasonablestepsorthepreventionanddetectionoraudandotherirregularities.

TheDirectorshavedelegatedresponsibilitytotheManagersorthemaintenanceandintegrityotheCompany’spageotheManagers’website.LegislationintheUnitedKingdomgoverningthepreparationanddisseminationofnancialstatementsmaydierromlegislationinotherjurisdictions.

EachotheDirectors,whosenamesandunctionsarelistedwithintheDirectorsandManagementsectionconfrmthat,tothebestotheirknowledge:

•thefnancialstatements,whichhavebeenpreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice(UnitedKingdomAccountingStandardsandapplicablelaw),giveatrueandairviewotheassets,liabilities,fnancialpositionandproftotheCompany;and

•theDirectors’ReportincludesaairreviewothedevelopmentandperormanceothebusinessandthepositionotheCompany,togetherwithadescriptionotheprincipalrisksanduncertainties

thatitaces.ByorderotheBoard

RichardRJBurns5August2010

TheDirectorsareresponsibleorpreparingtheAnnualReport,theDirectors’RemunerationReportandthefnancialstatementsinaccordancewithapplicablelawandregulations.

CompanylawrequirestheDirectorstopreparefnancialstatementsoreachfnancialyear.UnderthatlawtheDirectorshaveelectedtopreparethefnancialstatementsinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice(UnitedKingdomAccountingStandardsandapplicablelaw).UndercompanylawtheDirectorsmustnotapprovethefnancialstatementsunlesstheyaresatisfedthat

theygiveatrueandairviewothestateoaairsotheCompanyandotheproftorlossotheCompanyorthatperiod.Inpreparingthesefnancialstatements,theDirectorsarerequiredto:

•selectsuitableaccountingpoliciesandthenapplythemconsistently;

•makejudgementsandaccountingestimatesthatarereasonableandprudent;

•statewhetherapplicableUKAccountingStandardshavebeenollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefnancialstatementsrespectively;and

•preparethefnancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheCompanywill

continueinbusiness.

TheDirectorsareresponsibleorkeepingadequateaccountingrecordsthataresufcienttoshowandexplaintheCompany’stransactionsanddisclosewithreasonableaccuracyatanytimethefnancialpositionotheCompanyandenablethemtoensurethatthe




InDePenDenT auDITors’ rePorT

Independent Auditors’ Reportto the shareholders of Mid Wynd International Investment Trust PLC

WehaveauditedthefnancialstatementsoMidWyndInternationalInvestmentTrustPLCortheyearended30June2010whichcomprisetheIncomeStatement,theBalanceSheet,theReconciliationoMovementsinShareholders’Funds,theCashFlowStatementandtherelatednotes.ThefnancialreportingrameworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice).

Respective responsibilities of Directors and Auditors

AsexplainedmoreullyintheDirectors’ResponsibilitiesStatementsetoutonpage31,theDirectorsareresponsibleorthepreparationothefnancialstatementsandorbeingsatisfedthattheygiveatrueandairview.OurresponsibilityistoauditthefnancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsorAuditors.

Thisreport,includingtheopinions,hasbeenpreparedorandonlyortheCompany’smembersasabodyinaccordancewithSections495to497otheCompaniesAct2006andornootherpurpose.Wedonot,ingivingtheseopinions,acceptorassumeresponsibility

oranyotherpurposeortoanyotherpersontowhomthisreportisshownorintowhosehandsitmaycomesavewhereexpresslyagreedbyourpriorconsentinwriting.

Scope of the audit of the nancial statements

Anauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefnancialstatementssufcienttogivereasonableassurancethatthefnancialstatementsarereerommaterialmisstatement,whethercausedbyraudorerror.Thisincludesanassessmento:whethertheaccountingpoliciesareappropriatetotheCompany’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;thereasonablenessosignifcantaccountingestimatesmadebytheDirectors;andtheoverall

presentationothefnancialstatements.

Opinion on nancial statements

Inouropinionthefnancialstatements:

•giveatrueandairviewothestateotheCompany’saairsasat30June2010andoitsresultsortheyearthenended;

•havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice;and

•havebeenpreparedinaccordancewiththerequirementsotheCompaniesAct2006.




InDePenDenT auDITors’ rePorT

Opinion on other matters prescribed by the CompaniesAct 2006

Inouropinion:

•thepartotheDirectors’RemunerationReporttobeauditedhasbeenproperlypreparedinaccordancewiththeCompaniesAct2006;

•theinormationgivenintheDirectors’Reportorthefnancialyearorwhichthefnancialstatementsarepreparedisconsistentwith

thefnancialstatements;and

•theinormationgivenintheCorporateGovernanceStatementincompliancewithrules7.2.5and7.2.6intheDisclosureandTransparencyRulessourcebookissuedbytheFinancialServicesAuthority(inormationaboutinternalcontrolandriskmanagementsystemsinrelationtofnancialreportingprocessesandaboutsharecapitalstructures)isconsistentwiththefnancialstatements.

Matters on which we are required to report by exception

Wehavenothingtoreportinrespectotheollowing:

UndertheCompaniesAct2006wearerequiredtoreporttoyoui,

inouropinion:

•adequateaccountingrecordshavenotbeenkept,orreturnsadequateorouraudithavenotbeenreceivedrombranchesnotvisitedbyus;or

•thefnancialstatementsandthepartotheDirectors’RemunerationReporttobeauditedarenotinagreementwiththeaccountingrecordsandreturns;or

•certaindisclosuresoDirectors’remunerationspecifedbylawarenotmade;or

•wehavenotreceivedalltheinormationandexplanationswerequireorouraudit.

UndertheListingRuleswearerequiredtoreview:

•theDirectors’statementinrelationtogoingconcern;and

•thepartotheCorporateGovernanceStatementrelatingtotheCompany’scompliancewiththenineprovisionsotheJune2008CombinedCodespecifedorourreview.

AlanRDonaldson(Seniorstatutoryauditor)orandonbehaloScott-Moncrie,StatutoryAuditorExchangePlace3SempleStreet

EdinburghEH38BL5August2010




For the year ended 30 June 2010 For the year ended 30 June 2009

Revenue Capital Total Revenue Capital Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Gains/(losses)oninvestments 9 – 11,977 11,977 – (10,777) (10,777)

Currencylosses 15 – (293) (293) – (12) (12)

Income 2 1,263 – 1,263 1,336 – 1,336

Investmentmanagementee 3 (126) (126) (252) (97) (97) (194)

Otheradministrativeexpenses 4 (168) – (168) (150) – (150)

Net return before nance costsand taxation 969 11,558 12,527 1,089 (10,886) (9,797)

Financecostsoborrowings 5 (45) (45) (90) (20) (20) (40)

Net return on ordinary activitiesbefore taxation 924 11,513 12,437 1,069 (10,906) (9,837)

Taxonordinaryactivities 6 (77) 7 (70) (251) 34 (217)

Net return on ordinary activitiesafter taxation 847 11,520 12,367 818 (10,872) (10,054)

Net return per ordinary share 8 16.85p 229.23p 246.08p 16.26p (216.24p) (199.98p)

InCoMe sTaTeMenT

ThetotalcolumnothisstatementistheproftandlossaccountotheCompany.

Allrevenueandcapitalitemsinthisstatementderiveromcontinuingoperations.Nooperationswereacquiredordiscontinuedduringtheyear.AStatementoTotalRecognisedGainsandLossesisnotrequiredasallgainsandlossesotheCompanyhavebeenreectedintheabovestatement.

Theaccompanyingnotesonpages38to52areanintegralpartothefnancialstatements.

Afnaldividendortheyearo9.0ppershareisproposed(2009–8.5p)makingatotalo15.5portheyear(2009–15.0p).Moreinormationondividenddistributionscanbeoundinnote7onpage42.

Income Statement




baLanCe sheeT

At 30 June 2010 At 30 June 2009

Notes £’000 £’000 £’000 £’000

Fixed assetsInvestmentsheldatairvaluethroughproftorloss 9 54,586 40,776

Current assetsDebtors 10 1,378 274

Cashanddeposits 21 402 143

1,780 417

CreditorsAmountsallingduewithinoneyear 11 (2,957) (240)

Net current (liabilities)/assets (1,177) 177

Total assets less current liabilities 53,409 40,953

CreditorsAmountsallingdueatermorethanoneyear 12 (3,347) (1,888)

Provisions for liabilities and chargesDeerredtaxation 13 – –

Total net assets 50,062 39,065

Capital and reserves

Called-upsharecapital 14 1,241 1,257Capitalredemptionreserve 15 16 –

Sharepremium 15 20 20

Capitalreserve 15 47,295 36,391

Revenuereserve 15 1,490 1,397

Shareholders’ funds 15 50,062 39,065

Net asset value per ordinary share(aterdeductingborrowingsatairvalue) 16 1,008.2p 776.5p

Net asset value per ordinary share(aterdeductingborrowingsatpar) 16 1,008.7p 777.0p

ThefnancialstatementsoMidWyndInternationalInvestmentTrustPLC(CompanyregistrationnumberSC42651)wereapprovedandauthorisedorissuebytheBoardandweresignedon5August2010.

RICHARDRJBURNSDirector


Balance Sheet




reConCILIaTIon of MoeMenTs In sharehoLDers’ funDs

Capital

Share redemption Share Capital Revenue Shareholders’capital reserve premium reserve reserve funds

Notes £’000 £’000 £’000 £’000 £’000 £’000

Shareholders’undsat1July2009 1,257 – 20 36,391 1,397 39,065

Netreturnonordinaryactivitiesatertaxation15 – – – 11,520 847 12,367

Sharespurchasedorcancellation 15 (16) 16 _ (616) – (616)

Dividendspaidduringtheyear 7 – – – – (754) (754)

Shareholders’ funds at 30 June 2010 1,241 16 20 47,295 1,490 50,062

Capital

Share redemption Share Capital Revenue Shareholders’capital reserve premium reserve reserve funds

Notes £’000 £’000 £’000 £’000 £’000 £’000

Shareholders’undsat1July2008 1,257 – 20 47,263 1,449 49,989

Netreturnonordinaryactivitiesatertaxation – – – (10,872) 818 (10,054)

Dividendspaidduringtheyear 7 – – – – (870) (870)

Shareholders’ funds at 30 June 2009 1,257 – 20 36,391 1,397 39,065

For the year ended 30 June 2010

For the year ended 30 June 2009

Reconciliation of Movements in Shareholders’ Funds





For the year ended For the year ended

30 June 2010 30 June 2009

Notes £’000 £’000 £’000 £’000

Net cash inow from operating activities 17 755 982

Servicing of nanceInterestpaid (90) (37)

Net cash outow from servicing of nance (90) (37)

TaxationCorporationtaxpaid (154) (198)

Total tax paid (154) (198)

Financial investmentAcquisitionsoinvestments (30,573) (29,282)

Disposalsoinvestments 28,147 24,795

Realisedcurrencyproft 29 336

Net cash outow from nancial investment (2,397) (4,151)

Equity dividends paid (754) (870)

Net cash outow before use ofliquid resources and nancing (2,640) (4,274)

Liquid resourcesDecreaseinshorttermdeposits – 1,771

Net cash inow from use of liquid resources – 1,771

Financing

Sharespurchasedorcancellation (238) –

Bankloansdrawndown 3,137 –

Net cash inow from nancing 2,899 –

Increase/(decrease) in cash 18 259 (2,503)

Reconciliation of net cash ow tomovement in net debt 18

Increase/(decrease)incashintheyear 259 (2,503)

Decreaseinshorttermdeposits – (1,771)

Netcashinowrombankloans (3,137) –

Exchangemovementonshorttermdeposits – 118

Exchangemovementonbankloans (322) (466)

Movement in net debt in the year (3,200) (4,622)

Net (debt)/funds at 1 July (1,745) 2,877

Net debt at 30 June (4,945) (1,745)

Cash fLoW sTaTeMenT

Cash Flow Statement





1 Principal Accounting Policies

2 Income

3 Investment Management Fee

4 Other Administrative Expenses

5 Finance Costs of Borrowings

6 Tax on Ordinary Activities

7 Ordinary Dividends

8 Net Return per Ordinary Share

9 Fixed Assets – Investments

10 Debtors

11 Creditors – Amounts fallingdue within one year

12 Creditors – Amounts fallingdue after more than one year

Contents

13 Deferred Taxation

14 Called-up Share Capital

15 Capital and Reserves

16 Net Asset Value per Ordinary Share

17 Reconciliation of Net Return beforeFinance Costs and Taxation to NetCash Inow from Operating Activities

18 Analysis of Change in Net Debt

19 Contingent Liabilities, Guarantees andFinancial Commitments

20 Related Party Transactions

21 Financial Instruments

noTes To fInanCIaL sTaTeMenTs

Notes to Financial Statements




1 Principal Accounting Policies


Asummaryotheprincipalaccountingpolicies,whichareunchangedromtheprioryearandhavebeenappliedconsistently,issetoutbelow.

(a) Basis of AccountingThefnancialstatementsarepreparedunderthehistoricalcostconvention,modifedtoincludetherevaluationofxedassetinvestments,andontheassumptionthatapprovalasaninvestmenttrustwillcontinuetobegranted.

ThefnancialstatementshavebeenpreparedinaccordancewithTheCompaniesAct2006,applicableUnitedKingdomaccountingstandardsandwiththeStatementoRecommendedPractice‘FinancialStatementsoInvestmentTrustCompanies’issuedinJanuary2009.

InordertobetterreecttheactivitiesotheCompanyandinaccordancewithguidanceissuedbytheAIC,supplementaryinormationwhichanalysestheproftandlossaccountbetweenitemsoarevenueandcapitalnaturehasbeenpresentedintheIncomeStatement.

FinancialassetsandfnancialliabilitiesarerecognisedintheCompany’s

balancesheetwhenitbecomesapartytothecontractualprovisionsotheinstrument.

TheDirectorsconsidertheCompany’sunctionalcurrencytobesterlingastheCompany’sshareholdersarepredominantlybasedintheUKandtheCompanyissubjecttotheUK’sregulatoryenvironment.

(b) InvestmentsPurchasesandsalesoinvestmentsareaccountedoronatradedatebasis.

Investmentsaredesignatedasheldatairvaluethroughproftorlossoninitialrecognitionandaremeasuredatsubsequentreportingdatesatairvalue.Theairvalueolistedinvestmentsisbidvalueor,inthecaseoFTSE100constituents,Japanese,GreekandIndianlistedinvestments,atlasttradedprices.ListedinvestmentsincludeOpenEndedInvestment

Companies(‘OEICs’)authorisedintheUKandSociétéd’InvestissementÀCapitalVariable(‘SICAVs’)authorisedinEurope;thesearevaluedatclosingpricesandareclassifedinthelistoinvestmentsaccordingtotheprincipalgeographicalareaotheunderlyingholdings.

Theairvalueounlistedinvestmentsusesvaluationtechniques,determinedbytheDirectors,baseduponlatestdealingprices,stockbrokervaluations,netassetvaluesandotherinormation,asappropriate.

(c) DerivativesTheCompanymayusederivativesorthepurposeoefcientportoliomanagement(includingreducing,transerringoreliminatingriskinitsinvestmentsandprotectionagainstcurrencyrisk)andtoachievecapitalgrowth.SuchinstrumentsarerecognisedonthedateothecontractthatcreatestheCompany’sobligationtopayorreceivecashowsandare

measuredasfnancialassetsorliabilitiesatairvalueatsubsequentreportingdates,whiletherelevantcontractsremainopen.Theairvalueisdeterminedbyreerencetotheopenmarketvalueothecontract.

WheretheinvestmentrationaleortheuseoderivativesistohedgespecifcriskspertainingtotheCompany’sportoliocomposition,hedgeaccountingwillonlybeadoptedwherethederivativeinstrumentrelatesspecifcallytoasingleitem,orgroupoitems,oequalandoppositefnancialexposure,andwherethederivativeinstrumenthasbeenexplicitlydesignatedasahedgeosuchitem(s)atthedateoinitialrecognition.InallothercircumstanceschangesintheairvalueoderivativeinstrumentsarerecognisedimmediatelyintheIncomeStatementascapitalorrevenueasappropriate.

(d) Cash and Cash Equivalents

Cashandcashequivalentsincludescashinhand,depositsheldatcallwithbanksandothershorttermhighlyliquidinvestmentswithoriginalmaturitiesothreemonthsorless.

(e) Income(i) Incomeromequityinvestmentsisbroughtintoaccountonthedate

onwhichtheinvestmentsarequotedex-dividendor,wherenoex-dividenddateisquoted,whentheCompany’srighttoreceivepaymentisestablished.EquityinvestmentincomeincludesdistributionsromCollectiveInvestmentSchemesotherthanthosethatrelatetoequalisation,whicharetreatedascapitalitems.

(ii)Interestromfxedinterestsecuritiesisrecognisedonaneective yieldbasis.

(iii)Unrankedinvestmentincomeincludesthetaxesdeductedatsource.

(iv)Frankedinvestmentincomeisstatednetotaxcredits.

(v)Underwritingcommissionandinterestreceivableondepositsarerecognisedonanaccrualsbasis.

(vi)Iscripistakeninlieuodividendsincash,thenetamountothecashdividenddeclarediscreditedtotherevenueaccount.Anyexcessinthevalueothesharesreceivedovertheamountothecashdividendoregoneisrecognisedascapital.

(f) ExpensesAllexpensesareaccountedoronanaccrualsbasis.Expensesarechargedthroughtherevenueaccountexceptasollows:wheretheyrelatedirectlytotheacquisitionordisposaloaninvestment,inwhichcasetheyareaddedtothecostotheinvestmentordeductedromthesaleproceeds;andwheretheyareconnectedwiththemaintenanceorenhancementothevalueoinvestments,inwhichcasetheyarecharged50:50totherevenueaccountandcapitalreserve.

(g) Finance CostsLoaninterestisaccountedoronanaccrualsbasisandisallocated50:50

totherevenueaccountandcapitalreserve.Loanbreakagecostsarechargedtothecapitalreserve.

(h) Deferred TaxationDeerredtaxationisprovidedonalltimingdierenceswhichhaveoriginatedbutnotreversedbythebalancesheetdate,calculatedatthecurrenttaxraterelevanttothebeneftorliability.Deerredtaxassetsarerecognisedonlytotheextentthatitismorelikelythannotthattherewillbetaxableproftsromwhichunderlyingtimingdierencescanbededucted.

(i) Dividend DistributionsInterimdividendsarerecognisedintheperiodinwhichtheyarepaidandfnaldividendsarerecognisedintheperiodinwhichthedividendsareapprovedbytheCompany’sshareholders.

(j) Foreign CurrenciesTransactionsinvolvingoreigncurrenciesareconvertedattheraterulingatthetimeothetransaction.Assetsandliabilitiesinoreigncurrenciesaretranslatedattheclosingratesoexchangeatthebalancesheetdate,withtheexceptionoorwardexchangecontractswhicharevaluedattheorwardraterulingatthebalancesheetdate.Anygainorlossarisingromachangeinexchangeratesubsequenttothedateothetransactionisincludedasanexchangegainorlossincapitalreserveorrevenuereserveasappropriate.

(k) Capital ReserveGainsandlossesonsalesoinvestments,exchangedierencesoacapitalnatureandtheamountbywhichtheairvalueoassetsand

liabilitiesdiersromtheirbookvaluearedealtwithinthisreserve.50%omanagementeesandfnancecoststogetherwithanyassociatedtaxrelieareallocatedtothecapitalreserveinaccordancewiththeCompany’sobjectiveocombiningcapitalandincomegrowth.PurchasesotheCompany’sownsharesarealsoundedromthisreserve.





2 Income

2010 2009

£’000 £’000

Income from investments

Frankedinvestmentincome 98 128UKunrankedinvestmentincome† 143 196Overseasdividends 753 497Overseasinterest 263 479

1,257 1,300

Other incomeDepositinterest – 30Underwritingcommissionandcommitmentees 6 6

6 36

Total income 1,263 1,336

Total income comprises:Dividendsromfnancialassetsdesignatedatairvaluethroughproftorloss 914 740

Interestromfnancialassetsdesignatedatairvaluethroughproftorloss 343 560Depositinterestromfnancialassetsnotatairvaluethroughproftorloss – 30Otherincomenotromfnancialassets 6 6

1,263 1,336

†IncludesOEICincome.

3 Investment Management Fee

2010 2009


£’000 £’000 £’000 £’000 £’000 £’000

Investmentmanagementee 126 126 252 97 97 194

BaillieGiord&CoareemployedbytheCompanyasManagersandSecretariesunderamanagementagreementwhichisterminableonnotlessthanoneyear’snotice,oronshorternoticeincertaincircumstances.Theeeinrespectoeachquarteris0.125%othenetassetsotheCompanyattributabletoitsshareholdersonthelastdayothatquarter.Themanagementeeisleviedonallassets,includingholdingsincollectiveinvestmentschemes(OEICs)managedbyBaillieGiord&Co,however,theOEICs’shareclassesheldbytheCompanydonotincurmanagementees.

MrRRJBurns,aDirectorotheCompany,wasapartneroBaillieGiord&Co,untilhisretiralon30April2006.

4 Other Administrative Expenses – all charged to revenue

2010 2009£’000 £’000

Generaladministrativeexpenses 106 90Directors’ees(seeDirectors’RemunerationReportonpages29and30) 51 49Auditors’remunerationorauditservices 11 11

168 150





5 Finance Costs of Borrowings

2010 2009


£’000 £’000 £’000 £’000 £’000 £’000

Bank loans repayable withinve years:Interest 45 45 90 20 20 40

6 Tax on Ordinary Activities

2010 2009

Revenue Capital Total Revenue Capital Total£’000 £’000 £’000 £’000 £’000 £’000

UKcorporationtaxat28%(2009–28%) 7 (7) – 255 (34) 221Overseastaxation 70 – 70 43 – 43

Relieoroverseastaxation – – – (43) – (43)Totalcurrenttax 77 (7) 70 255 (34) 221Deerredtaxation(seenote13) – – – (4) – (4)

77 (7) 70 251 (34) 217

2010 2009

£’000 £’000

ThetaxchargeortheyearislowerthantheaveragestandardrateocorporationtaxintheUK(28%)

Thedierencesareexplainedbelow:

Netreturnonordinaryactivitiesbeoretaxation 12,437 (9,837)

NetreturnonordinaryactivitiesmultipliedbytheaveragestandardrateocorporationtaxintheUKo28%(2009–28%) 3,482 (2,754)Eectso:Capitalreturnsnottaxable (3,272) 3,021Incomenottaxable(UKdividendincome) (27) (36)Incomenottaxable(overseasdividendincome) (218) (7)Marginalsmallcompaniesrelie – (7)Overseastax–nonosettable 70 –Deerredtaxadjustment – 4Taxablelossesintheyearnotutilised 35 –

Currenttaxchargeortheyear 70 221

Asaninvestmenttrust,theCompany’scapitalreturnsarenottaxable.





7 Ordinary Dividends

2010 2009 2010 2009

£’000 £’000

Amounts recognised as distributions in the year:

Previousyear’sfnal(paid8October2009) 8.50p 8.50p 427 427Previousyear’sspecial – 2.30p – 116Interim(paid1April2010) 6.50p 6.50p 327 327

15.00p 17.30p 754 870

Wealsosetoutbelowthetotaldividendspaidandpayableinrespectothefnancialyear,whichisthebasisonwhichtherequirementsosection1158otheCorporationTaxesAct2010areconsidered.Therevenueavailableordistributionbywayodividendorthe yearis£847,000(2009–£818,000).

2010 2009 2010 2009

£’000 £’000

Dividends paid and payable in respect of the year:Interimdividendperordinaryshare(paid1April2010) 6.50p 6.50p 327 327

Proposedfnaldividendperordinaryshare (payable7October2010) 9.00p 8.50p 447 427

15.50p 15.00p 774 754

8 Net Return per Ordinary Share

2010 2009


Netreturnonordinaryactivitiesatertaxation 16.85p 229.23p 246.08p 16.26p (216.24p) (199.98p)

Revenuereturnperordinaryshareisbasedonthenetrevenueonordinaryactivitiesatertaxationo£847,000(2009–£818,000),andon5,025,506(2009–5,027,766)ordinaryshares,beingtheweightedaveragenumberoordinarysharesinissueduringtheyear.

Capitalreturnperordinaryshareisbasedonthenetcapitalgainorthefnancialyearo£11,520,000(2009–netcapitallosso£10,872,000),andon5,025,506(2009–5,027,766)ordinaryshares,beingtheweightedaveragenumberoordinarysharesinissueduringtheyear.

Therearenodilutiveorpotentiallydilutivesharesinissue.

9 Fixed Assets – Investments

Level 1 Level 2 Level 3 Total

As at 30 June 2010 £’000 £’000 £’000 £’000

SecuritiesListedequities 49,518 2,473 – 51,991Listedconvertiblesecurities 139 – – 139Listeddebtsecurities 563 – 1,558 2,121Unlisteddebtsecurities – – 335 335

Totalfnancialassetinvestments 50,220 2,473 1,893 54,586





9 Fixed Assets – Investments (continued)

Level 1 Level 2 Level 3 Total

As at 30 June 2009 £’000 £’000 £’000 £’000

Securities

Listedequities 33,586 – – 33,586Listedconvertiblesecurities 440 – – 440Listeddebtsecurities 4,494 1,299 561 6,354Unlisteddebtsecurities – – 396 396

Totalfnancialassetinvestments 38,520 1,299 957 40,776

Investmentsinsecuritiesarefnancialassetsdesignatedatairvaluethroughproftorlossoninitialrecognition.InaccordancewithFinancialReportingStandard29‘FinancialInstruments:Disclosures’,theprecedingtablesprovideananalysisotheseinvestmentsbasedontheairvaluehierarchydescribedbelowwhichreectsthereliabilityandsignifcanceotheinormationusedtomeasuretheirairvalue.

Fair Value HierarchyTheairvaluehierarchyusedtoanalysetheairvaluesofnancialassetsisdescribedbelow.Thelevelsaredeterminedbythelowest(thatistheleastreliableorleastindependentlyobservable)leveloinputthatissignifcanttotheairvaluemeasurementortheindividualinvestmentinitsentiretyasollows:

Level 1– investmentswithquotedpricesinanactivemarket;

Level 2– investmentswhoseairvalueisbaseddirectlyonobservablecurrentmarketpricesorisindirectlybeingderivedrommarketprices;and

Level 3-–investmentswhoseairvalueisdeterminedusingavaluationtechniquebasedonassumptionsthatarenotsupportedbyobservablecurrentmarketpricesorarenotbasedonobservablemarketdata.

Listed Listed Unlisted

equities debt debt Total

£’000 £’000 £’000 £’000

Costoinvestmentsheldat1July2009 30,269 8,437 495 39,201Investmentholdinggains/(losses)at1July2009 3,317 (1,643) (99) 1,575

Fairvalueoinvestmentsheldat1July2009 33,586 6,794 396 40,776Movementsinyear:Purchasesatcost 30,188 869 – 31,057Sales–proceeds (21,779) (7,515) – (29,294) –gainsonsales 4,183 687 – 4,870Amortisationofxedinterestbookcost – 70 – 70Changesininvestmentholdinggains/losses 5,813 1,355 (61) 7,107

Fairvalueoinvestmentsheldat30June2010 51,991 2,260 335 54,586

Costoinvestmentsheldat30June2010 42,861 2,548 495 45,904Investmentholdinggains/(losses)at30June2010 9,130 (288) (160) 8,682

Fairvalueoinvestmentsheldat30June2010 51,991 2,260 335 54,586Thepurchasesandsalesproceedsfguresaboveincludetransactioncostso£69,000onpurchases(2009–£33,000)and£16,000onsales(2009–£10,000),makingatotalo£85,000(2009–£43,000).

ListedequitiesincludesOEICs,SICAVsandconvertibleloannotesexpectedtoconverttoequity.





9 Fixed Assets – Investments (continued)

TheollowingtableshowsareconciliationromtheopeningbalancestotheclosingbalancesorairvaluemeasurementsinLevel3otheairvaluehierarchy.

Value at Purchases/ Sales Gains on Holding Valueat 30 June 2009 amortisation* proceeds sales gains/losses 30June2010

Level 3 £’000 £’000 £’000 £’000 £’000 £’000

Listeddebt 561 442 (2) 2 555 1,558Unlisteddebt 396 – – – (61) 335

957 442 (2) 2 494 1,893

*Purchases/amortisationincludesamortisationofxedincomesecuritieso£12,000.ThegainsandlossesincludedintheabovetablehaveallbeenrecognisedintheIncomeStatementonpage34.TheCompanybelievesthatotherreasonablypossiblealternativevaluationsoritsLevel3holdingswouldnotbesignifcantlydierentromthoseincludedinthefnancialstatements.

2010 2009

£’000 £’000

Net gains/(losses) on investments designated at fair value through prot or loss on initial recognition Gains/(losses)onsales 4,870 (4,210)Changesininvestmentholdinggains/losses 7,107 (6,567)

11,977 (10,777)

Othegainsonsaleso£4,870,000(2009–losseso£4,210,000)duringtheyear,anetgaino£168,000(2009–£3,739,000)wasincludedintheinvestmentholdinggainsatthepreviousyearend.

DuringtheyeartheCompanyheldsharesinOpenEndedInvestmentCompanies(OEICs)managedbyBaillieGiord&Co,theCompany’sinvestmentmanager.TheshareclassesheldintheOEICsdonotincurmanagementees.At30JunetheCompanyheld:

2010 2009

% %

C income of share C income of share

shares held class held shares held class held

BaillieGiordDevelopedAsiaPacifcFund 550,400 10.6 1,351,000 32.3BaillieGiordJapaneseSmallerCompaniesFund 103,464 100.0 202,364 100.0BaillieGiordGreaterChinaFund 170,260 3.6 579,100 10.4

ThetotalvalueotheCompany’sholdingsininvestmentsmanagedbyBaillieGiord&Coat30June2010was£2,394,000(2009–£4,601,000).

10 Debtors

2010 2009

£’000 £’000

Amounts falling due within one year:Incomeaccrued(net) 193 226Salesorsubsequentsettlement 1,147 –Otherdebtorsandprepayments 38 48

1,378 274

Noneotheabovedebtorsarefnancialassetsdesignatedatairvaluethroughproftorloss.Thecarryingamountodebtorsisareasonableapproximationoairvalue.





11 Creditors – Amounts falling due within one year

2010 2009

£’000 £’000

LloydsTSBScotlandshorttermloanacility(seenote12) 2,000 –

Purchasesorsubsequentsettlement 862 –Corporationtaxpayable – 154Othercreditorsandaccruals 95 86

2,957 240

Noneotheabovecreditorsarefnancialliabilitiesdesignatedatairvaluethroughproftorloss.Includedinothercreditorsis£63,000(2009–£49,000)inrespectotheinvestmentmanagementee.

12 Creditors – Amounts falling due after more than one year

2010 2009

£’000 £’000

Bankloan 3,347 1,888

Borrowing facilities

A£2millionloanacilityhasbeenarrangedwithLloydsTSBScotlandplc,expiringon27August2010.

AUS$5millionmulti-currencyloanacilityhasbeenarrangedwithLloydsTSBScotlandplc,expiringon27February2012.

At30June2010drawingswereasollows:

LloydsTSBScotlandplc–¥300millionataninterestrateo1.905%perannum(2009–¥300millionat1.905%)–€1.32millionataninterestrateo0.8483%perannum(2009–nil)–£2millionataninterestrateo2.1724%perannum(2009–nil)

Themaincovenantsrelatingtotheloansare:

(i) Totalborrowingsshallnotexceed25%otheCompany’sinvestmentportolio.(ii)TheCompany’sminimumnetassetvalueshallbe£20million.

13 Deferred Taxation

2010 2009

£’000 £’000

Incometaxableinalaterperiod – –Overseaswithholdingtaxclaimableasadeductioninalaterperiod – –

– –

Deerredtaxationprovisionat1July – 4Deerredtaxationchargeortheyear – (4)

Deerredtaxationprovisionat30June – –

14 Called-up Share Capital

2010 2009

Number £’000 Number £’000

Allotted,calledupandullypaidordinaryshareso25peach 4,962,766 1,241 5,027,766 1,257

Intheyearto30June2010theCompanyboughtback65,000ordinaryshareswithanominalvalueo£16,250atatotalcost

o£616,000.At30June2010theCompanyhadauthoritytobuybackaurther688,662ordinarysharesinaccordancewiththeauthoritygrantedattheAGMinSeptember2009.UndertheprovisionsotheCompany’sArticlesoAssociationsharebuybacksareundedromthecapitalreserve.





15 Capital and Reserves

Capital

Share redemption Share Capital Revenue Shareholders’

capital reserve premium reserve reserve funds£’000 £’000 £’000 £’000 £’000 £’000

At1July2009 1,257 – 20 36,391 1,397 39,065Gainsoninvestments – – – 11,977 – 11,977Exchangedierencesonbankloans – – – (322) – (322)Otherexchangedierences – – – 29 – 29Investmentmanagementee – – – (126) – (126)Financecostsoborrowings – – – (45) – (45)Taxrelieonmanagementeesandfnancecosts – – – 7 – 7Revenuereturnonordinaryactivities atertaxation – – – – 847 847Sharespurchasedorcancellation (16) 16 – (616) – (616)Dividendspaidintheyear – – – – (754) (754)

At30June2010 1,241 16 20 47,295 1,490 50,062

Distributable reservesUnderthetermsotheCompany’sArticlesoAssociation,sumsstandingtothecreditotheCapitalreservearedistributableonlybywayoredemptionorpurchaseoanyotheCompany’sownshares.CompanylawstatesthatInvestmentCompaniesmayonlydistributeaccumulated‘realised’profts.Securitieslistedonarecognisedstockexchangearegenerallyregardedasbeingreadilyconvertibleintocashandhenceunrealisedproftsinrespectosuchsecuritiescanberegardedasdistributableundercompanylaw.TheCapitalreserveincludesinvestmentholdinggainso£8,682,000(2009–gainso£1,575,000)asdetailedinnote9.

TheRevenuereserveisdistributablebywayodividend.

16 Net Asset Value per Ordinary Share

ThenetassetvalueperordinaryshareandthenetassetsattributabletotheordinaryshareholdersattheyearendcalculatedinaccordancewiththeArticlesoAssociationwereasollows:

2010 2009 2010 2009

£’000 £’000

Ordinaryshares 1,008.7p 777.0p 50,062 39,065

2010 2009

£’000 £’000

Themovementsduringtheyearotheassetsattributabletotheordinaryshareswereasollows: Totalnetassetsat1July 39,065 49,989Totalrecognisedgainsandlossesortheyear 12,367 (10,054)Sharespurchasedorcancellation (616) –

Dividendsappropriatedintheyear (754) (870)

Totalnetassetsat30June 50,062 39,065

Netassetvalueperordinaryshareisbasedonnetassetsasshownaboveandon4,962,766(2009–5,027,766)ordinaryshares,beingthenumberoordinarysharesinissueattheyearend.

Deductingborrowingsatairvalue(seenote21,page52)wouldhavetheeectodecreasingnetassetvalueperordinarysharerom1,008.7pto1,008.2p.Takingthemarketpriceotheordinarysharesat30June2010o935.0p,thiswouldhavegivenadiscounttonetassetvalueo7.3%onbothbases.At30June2009thenetassetvalueaterdeductingborrowingsatairvaluewas776.5p.Takingthemarketpriceotheordinarysharesat30June2009o672.5p,thiswouldhavegivenadiscounttonetassetvalueo13.4%onbothbases.





17 Reconciliation of Net Return before Finance Costs and Taxation to Net Cash Inow from Operating Activities

2010 2009

£’000 £’000

Netreturnbeorefnancecostsandtaxation 12,527 (9,797)

(Gains)/lossesoninvestments (11,977) 10,777Currencylosses 293 12Amortisationofxedinterestbookcost (70) (128)Decreaseinaccruedincome 44 32Decreaseindebtors 10 162Increase/(decrease)increditors 9 (11)Overseastaxsuered (58) (43)Incometaxsuered (23) (22)

Netcashinowromoperatingactivities 755 982

18 Analysis of Change in Net Debt

At 1 July Cash Exchange At 30 June

2009 ows movement 2010

£’000 £’000 £’000 £’000

Cashatbankandinhand 143 259 – 402Bankloandueinlessthanoneyear – (2,000) – (2,000)Bankloansdueinonetotwoyears (1,888) (1,137) (322) (3,347)

(1,745) (2,878) (322) (4,945)

19 Contingent Liabilities, Guarantees and Financial Commitments

At30June2010theCompanyhadcontingentliabilitieso£1,005,000(2009–£1,005,000)inrespectoasubscriptionagreement,relatingtoparticipatingunsecuredloannotesinPantheonInternationalParticipationsplc(PIP),whichexpireson31December2010.ThePIPloannotesoparvalue£495,000heldbytheCompanywerevaluedat£335,000at30June2010(30June2009£396,000).TheCompanyiscurrentlyinnegotiationstoextendthesubscriptionagreementexpirydateto31December2011anditisexpectedthathalotheremainingsubscriptionamountwillbedrawnintourtherunsecuredloannotesinPIPbytheendoSeptember2010.

20 Related Party Transactions

TheDirectors’eesortheyeararedetailedintheDirectors’RemunerationReportonpage29.NoDirectorhasacontractoservicewiththeCompany.DuringtheyearnoDirectorwasinterestedinanycontractorothermatterrequiringdisclosureundersection412otheCompaniesAct2006otherthanasdisclosedinnote3.Thedetailsothemanagementeearesetoutinnote3,andthemanagementeeduetoBaillieGiordasat30June2010isdisclosedinnote11.

21 Financial Instruments

AsanInvestmentTrust,theCompanyinvestsinequitiesandmakesotherinvestmentssoastoachieveitsinvestmentobjectiveoachievingcapitalandincomegrowthbyinvestingonaworldwidebasis.Inpursuingitsinvestmentobjective,theCompanyisexposedtovarioustypesoriskthatareassociatedwiththefnancialinstrumentsandmarketsinwhichitinvests.

Theserisksarecategorisedhereasmarketrisk(comprisingcurrencyrisk,interestrateriskandotherpricerisk),liquidityriskandcreditrisk.TheBoardmonitorscloselytheCompany’sexposuretotheserisksbutdoessoinordertoreducethelikelihoodoapermanentlossocapitalratherthantominimisetheshorttermvolatility.

TheCompanymayenterintoderivativetransactionsasexplainedintheInvestmentPolicyonpage21.Nosuchtransactionswereundertakenintheperiodunderreview.

Theriskmanagementpoliciesandproceduresoutlinedinthisnotehavenotchangedsubstantiallyromthepreviousaccountingperiod.

Market RiskTheairvalueoruturecashowsoafnancialinstrumentorotherinvestmentheldbytheCompanymayuctuatebecauseochangesinmarketprices.Thismarketriskcomprisesthreeelements–currencyrisk,interestrateriskandotherpricerisk.TheBoardoDirectorsreviewsandagreespoliciesormanagingtheserisksandtheCompany’sInvestmentManagersbothassesstheexposuretomarketriskwhenmakingindividualinvestmentdecisionsandmonitortheoveralllevelomarketriskacrosstheinvestmentportolioonanongoingbasis.





21 Financial Instruments (continued)

(i) Currency RiskCertainotheCompany’sassets,liabilitiesandincomearedenominatedincurrenciesotherthansterling(theCompany’sunctionalcurrencyandthatinwhichitreportsitsresults).Consequently,movementsinexchangeratesmayaectthesterlingvalueothoseitems.

TheInvestmentManagersmonitortheCompany’sexposuretooreigncurrenciesandreporttotheBoardonaregularbasis.TheInvestmentManagersassesstherisktotheCompanyotheoreigncurrencyexposurebyconsideringtheeectontheCompany’snetassetvalueandincomeoamovementintheratesoexchangetowhichtheCompany’sassets,liabilities,incomeandexpensesareexposed.However,thecountryinwhichacompanyislistedisnotnecessarilywhereitearnsitsprofts.Themovementinexchangeratesonoverseasearningsmayhaveamoresignifcantimpactuponacompany’svaluationthanasimpletranslationothecurrencyinwhichthecompanyisquoted.

ForeigncurrencyborrowingscanlimittheCompany’sexposuretoanticipateduturechangesinexchangerateswhichmightotherwiseadverselyaectthevalueotheportoliooinvestments.

Exposuretocurrencyriskthroughassetallocation,whichiscalculatedbyreerencetothecurrencyinwhichtheassetorliabilityisquoted,isshownbelow.TheexposureotheCompany’sOEICinvestmentsmanagedbyBaillieGiord&Cohasbeenincludedintheanalysisassterling,beingtheircurrencyoquotation.Themainchangestonetcurrencyexposureduringtheyearareasollows:exposuretotheUSdollardecreased,reectingsalesoUSbonds;exposuretotheJapaneseyendecreasedowingtothesaleoaJapanesebond;exposure

totheBrazilianrealincreasedthroughpurchasesoBrazilianequityinvestmentsandexposuretotheHongKongdollarincreasedthroughpurchasesoHongKongandChineseequities.ExplanationsochangesinassetallocationcanbeoundintheChairman’sStatementandManagers’PortolioReviewonpages4to6and13to16.

Cash and Bank Other debtors Net Investments deposits loans and creditors* exposure

At 30 June 2010 £’000 £’000 £’000 £’000 £’000

USdollar 12,664 (651) – 36 12,049Euro 5,127 51 (1,081) 201 4,298Norwegiankrona 1,907 – – – 1,907Swissranc 2,129 193 – – 2,322 Japaneseyen 833 479 (2,266) 72 (882)Brazilianreal 4,683 2 – – 4,685

HongKongdollar 2,772 – – – 2,772SouthAricanrand 1,254 – – – 1,254Otheroverseascurrencies 7,101 246 – (68) 7,279

Totalexposuretocurrencyrisk 38,470 320 (3,347) 241 35,684Sterling 16,116 82 (2,000) 180 14,378

54,586 402 (5,347) 421 50,062

*Includesnetnon-monetaryassetso£8,000.

Cash and Bank Other debtors Net Investments deposits loans and creditors* exposure

At 30 June 2009 £’000 £’000 £’000 £’000 £’000

USdollar 14,111 4 – 45 14,160Euro 5,570 28 – 65 5,663Norwegiankrona 1,142 – – – 1,142Swissranc 1,830 53 – – 1,883 Japaneseyen 1,590 54 (1,888) (3) (247)Brazilianreal 1,180 2 – – 1,182HongKongdollar 1,448 – – – 1,448SouthAricanrand 1,049 – – – 1,049Otheroverseascurrencies 3,067 – – 4 3,071

Totalexposuretocurrencyrisk 30,987 141 (1,888) 111 29,351Sterling 9,789 2 – (77) 9,714

40,776 143 (1,888) 34 39,065

*Includesnetnon-monetaryassetso£10,000.






Currency Risk SensitivityAt30June2010,isterlinghadstrengthenedby5%inrelationtoallcurrencies,withallothervariablesheldconstant,totalnetassetsandtotalreturnonordinaryactivitieswouldhavedecreasedbytheamountsshownbelow.A5%weakeningosterlingagainstall

currencies,withallothervariablesheldconstant,wouldhavehadanequalbutoppositeeectonthefnancialstatementamounts.Theanalysisisperormedonthesamebasisor2009.2010 2009

£’000 £’000

USdollar 602 708Euro 215 283Norwegiankrona 95 57Swissranc 116 94 Japaneseyen (44) (12)Brazilianreal 234 59HongKongdollar 139 72SouthAricanrand 63 52Otheroverseascurrencies 364 155

1,784 1,468

(ii) Interest Rate RiskInterestratemovementsmayaectdirectly:

• theairvalueotheinvestmentsinfxedinterestratesecurities;

• theleveloincomereceivableoncashdeposits;

• theairvalueotheCompany’sfxed-rateborrowings;and

• theinterestpayableonanyvariablerateborrowingswhichtheCompanymaytakeout.

InterestratemovementsmayalsoimpactuponthemarketvalueotheCompany’sinvestmentsoutwithfxedincomesecurities.Theeectointerestratemovementsupontheearningsoacompanymayhaveasignifcantimpactuponthevaluationothatcompany’sequity.

Thepossibleeectsonairvalueandcashowsthatcouldariseasaresultochangesininterestratesaretakenintoaccountwhen

makinginvestmentdecisionsandwhenenteringborrowingagreements.TheBoardreviewsonaregularbasistheamountoinvestmentsincashandfxedincomesecuritiesandtheincomereceivableoncashdeposits,oatingratenotesandothersimilarinvestments.

TheCompanyfnancespartoitsactivitiesthroughborrowingsatapprovedlevels.TheamountosuchborrowingsandtheapprovedlevelsaremonitoredandreviewedregularlybytheBoard.Movementsininterestrates,totheextentthattheyaectthemarketvalueotheCompany’sfxedrateborrowings,mayalsoaecttheamountbywhichtheCompany’ssharepriceisatadiscountorapremiumtothenetassetvalue.

TheinterestrateriskprofleotheCompany’sfnancialassetsandliabilitiesat30Juneisshownontheollowingpage.ThemainchangestotheinterestrateriskprofleotheCompany’sfnancialassetsduringtheyearhavebeennetsaleso£6,528,000oUKandOverseasbonds,adrawdowno€1.32millionundertheUS$5millionmulti-currencyacilitywithLloydsTSBScotland,andadrawdowno£2millionundertheone-yearacilitywithLloydsTSBScotland.





Financial Assets2010 2009

Weighted Weighted

Fair Weighted average Fair Weighted averagevalue average period until value average period until£’000 interest rate maturity £’000 interest rate maturity

Fixed rate: UKbonds – – – 682 6.5% 15yearsUSdollarbonds 139 4.3% 3years 663 5.6% 15yearsEurobonds 97 5.0% 5years 878 6.8% 14years

Floating rate: UKbonds(interestratelinkedtoLIBOR) 335 2.0% 1year 396 2.0% 1yearUSdollarbonds(interestrate linkedtoUSLIBOR) 143 1.0% 40years 1,299 8.9% 1yearUSdollarbonds(interestrate

linkedtoUSCPI) – – – 1,519 1.8% 19yearsEurobonds(interestratelinkedtoEuroLIBOR) 112 8.6% 5years 127 9.5% 6years Japanesebond(interestratelinkedtoJapaneseCPI) – – – 1,145 1.4% 9years

Fixed interest collectiveinvestment schemes:CQSRigFinanceFund 563 – n/a 47 – n/aAthenaDebtOpportunitiesFund 1,303 2.9% 27years 434 4.4% 28years

Thecashdepositsgenerallycomprisecalldepositsorshorttermmoneymarketdepositswithoriginalmaturitiesolessthanthreemonths,whicharerepayableondemand.Thebenchmarkratewhichdeterminestheinterestpaymentsreceivedoncashbalancesisthebankbaserate.

Financial Liabilities 2010 2009

£’000 £’000

TheinterestrateriskprofleotheCompany’sfnancialliabilitiesat30Junewas:Fixedrate–Yendenominated 2,266 1,888Floatingrate–Eurodenominated 1,081 –Floatingrate–Sterlingdenominated 2,000 –

5,347 1,888

ThematurityprofleotheCompany’sfnancialliabilitiesat30Junewas:Inlessthanoneyear 2,000 –Inonetotwoyears(YenandEurobankloanmaturesin1year8months) 3,347 –Intwotofveyears – 1,888

5,347 1,888

Interest Rate Risk SensitivityAnincreaseo100basispointsinbondyieldsasat30June2010wouldhavedecreasedtotalnetassetsandtotalreturnonordinaryactivitiesby£7,000(2009–£396,000).Adecreaseo100basispointswouldhavehadanequalbutoppositeeect.

Anincreaseo100basispointsinbondyieldsasat30June2010wouldhavedecreasedthenetassetvaluepershare(withborrowingsatairvalue)by0.15p(2009–7.88p).Adecreaseo100basispointswouldhavehadanequalbutoppositeeect.

(iii) Other Price RiskChangesinmarketpricesotherthanthosearisingrominterestrateriskorcurrencyriskmayalsoaectthevalueotheCompany’snetassets.

TheBoardmanagesthemarketpricerisksinherentintheinvestmentportoliobyensuringullandtimelyaccesstorelevantinormationromtheInvestmentManagers.TheBoardmeetsregularlyandateachmeetingreviewsinvestmentperormance,theinvestmentportolio

andtherationaleorthecurrentinvestmentpositioningtoensureconsistencywiththeCompany’sobjectivesandinvestmentpolicies.Theportoliodoesnotseektoreproducetheindex,investmentsareselectedbaseduponthemeritoindividualcompaniesandthereoreperormancemaywelldivergeromtheshorttermuctuationsothecomparativeindex.






Other Price Risk SensitivityFixedassetinvestmentsarevaluedatbidpriceswhichequatetotheirairvalue.AulllistotheCompany’sinvestmentsisgivenonpages17to20.Inaddition,ananalysisotheinvestmentportoliobygeographicalsplitandbroadindustrialorcommercialsectorandalisto

the30largestequityinvestmentsbytheiraggregatemarketvalueisgivenonpages10to12.103.9%(2009–86.0%)otheCompany’snetassetsareinvestedinequities.A3%increaseinquotedequityvaluationsat30June2010wouldhaveincreasedtotalassetsandtotalreturnonordinaryactivitiesby£1,560,000(2009–£1,008,000).Adecreaseo3%wouldhavehadanequalbutoppositeeect.

Liquidity RiskThisistheriskthattheCompanywillencounterdifcultyinmeetingobligationsassociatedwithfnancialliabilities.

LiquidityriskisnotsignifcantasthemajorityotheCompany’sassetsareinvestmentsinquotedsecuritiesthatarereadilyrealisable.TheBoardmonitorstheexposuretoanyoneholding.

TheCompanyhasthepowertotakeoutborrowings,whichgiveitaccesstoadditionalundingwhenrequired.TheCompany’sborrowingacilitiesaredetailedinnote12.

Credit RiskThisistheriskthataailureoacounterpartytoatransactiontodischargeitsobligationsunderthattransactioncouldresultinthe

Companysueringaloss.

Thisriskismanagedasollows:

• WheretheInvestmentManagersmakeaninvestmentinabondorothersecuritywithcreditrisk,thatcreditriskisassessedandthencomparedtotheprospectiveinvestmentreturnothesecurityinquestion.

• TheBoardregularlyreceivesinormationromtheInvestmentManagersonthecreditratingsothosebondsandothersecuritiesinwhichtheCompanyhasinvested.

• TheCompany’slistedinvestmentsareheldonitsbehalbyTheBankoNewYorkMellon,theCompany’scustodian.BankruptcyorinsolvencyothecustodianmaycausetheCompany’srightswithrespecttosecuritiesheldbythecustodiantobedelayed.TheInvestmentManagersmonitortheCompany’sriskbyreviewingthecustodian’sinternalcontrolreportsandreportingtheirfndingstotheBoard.

• InvestmenttransactionsarecarriedoutwithalargenumberobrokerswhosecreditworthinessisreviewedbytheInvestmentManagers.TransactionsareordinarilyundertakenonadeliveryversuspaymentbasiswherebytheCompany’scustodianbank

ensuresthatthecounterpartytoanytransactionenteredintobytheCompanyhasdeliveredonitsobligationsbeoreanytranserocashorsecuritiesawayromtheCompanyiscompleted.

• Transactionsinvolvingderivatives,andotherarrangementswhereinthecreditworthinessotheentityactingasbrokerorcounterpartytothetransactionislikelytobeosustainedinterest,aresubjecttorigorousassessmentbytheInvestmentManagersothecreditworthinessothatcounterparty.

• CashisonlyheldatbanksthatareregularlyreviewedbytheManagers.

Credit Risk ExposureTheexposuretocreditriskat30Junewas:

2010 2009

£’000 £’000

Fixedinterestinvestments 2,692 7,190Cashanddeposits 402 143

Debtorsandprepayments 1,378 274

4,472 7,607

NoneotheCompany’sfnancialassetsarepastdueorimpaired.






Fair Value of Financial Assets and Financial LiabilitiesTheDirectorsareotheopinionthatthefnancialassetsandliabilitiesotheCompanyarestatedatairvalueinthebalancesheetwiththeexceptionolongtermborrowingswhicharestatedinaccordancewithFRS26.

2010 2009

Book Fair Book Fair

£’000 £’000 £’000 £’000

Fixedrateyenloan 2,266 2,294 1,888 1,913Floatingrateeuroloan 1,081 1,081 – –

Totallongtermborrowings 3,347 3,375 1,888 1,913

Gains and losses on hedgesAt30June2010therewerenounrecognisedgains/lossesonhedges(2009–nil).

Currencygains/lossesaretakentothecapitalreserveandarenotreectedintherevenueaccountunlesstheyareoarevenuenature.

Capital ManagementTheCompanydoesnothaveanyexternallyimposedcapitalrequirements.ThecapitalotheCompanyistheordinarysharecapitalasdetailedinnote14.Itismanagedinaccordancewithitsinvestmentpolicyinpursuitoitsinvestmentobjective,bothowhicharedetailedonpage21.Sharesmayberepurchasedasexplainedonpages27and28.





noTICe of annuaL GeneraL MeeTInG

Notice of Annual General MeetingNOTICEISHEREBYGIVENthattheAnnualGeneralMeetingoMidWyndInternationalInvestmentTrustPLCwillbeheldwithintheRegisteredOfceotheCompanyatCaltonSquare,1GreensideRow,EdinburghEH13ANonWednesday22September2010at12.00noon(the‘Meeting’)ortheollowingpurposes:

Ordinary Business

Toconsiderand,ithoughtft,passResolutions1to9(inclusive)whichwillbeproposedasordinaryresolutions:

1. ToreceiveandadopttheAnnualReportandtheFinancialStatementsotheCompanyorthefnancialyearended30June2010togetherwiththeReportsotheDirectorsandotheIndependentAuditorsthereon.

2. ToapprovetheDirectors’RemunerationReportorthefnancialyearended30June2010.

3. Todeclareafnaldividendo9.0pperordinaryshareorthefnancialyearended30June2010.

4. Tore-electMrPMSBarronasaDirectorotheCompany.

5. Tore-electMrRRJBurnsasaDirectorotheCompany.

6. Tore-electMrMCNScottasaDirectorotheCompany.

7. ToreappointScott-MoncrieasIndependentAuditorsotheCompanytoholdofceromtheconclusionotheMeetinguntiltheconclusion

othenextmeetingatwhichaccountsarelaidbeoretheCompany.8.ToauthorisetheDirectorstodeterminetheremunerationotheIndependentAuditors.

9. That,insubstitutionoranyexistingauthorityundersection80otheCompaniesAct1985(asamended)butwithoutprejudicetotheexerciseoanysuchauthoritypriortothedatehereo,theDirectorsotheCompanybeandtheyareherebygenerallyandunconditionallyauthorisedinaccordancewithSection551otheCompaniesAct2006(the‘Act’)toexerciseallthepowersotheCompanytoallotsharesintheCompanyandtograntrightstosubscribeorortoconvertanysecurityintosharesintheCompany(suchsharesandrightstogetherbeing‘Securities’)uptoanaggregatenominalvalueoupto£413,522,beingequaltoapproximately33.3%otheCompany’sissuedsharecapitalasat3August2010,tosuchpersonsandonsuchtermsastheDirectorsmaydetermine,suchauthoritytoexpireattheconclusion

othenextAnnualGeneralMeetingotheCompanyheldaterthepassingothisresolutionorontheexpiryo15monthsromthedateopassingothisresolution,whicheveristheearlier,unlesspreviouslyrevoked,variedorextendedbytheCompanyingeneralmeeting,savethattheCompanymayatanytimepriortotheexpiryothisauthoritymakeanoerorenterintoanagreementwhichwouldormightrequireSecuritiestobeallottedorgrantedatertheexpiryosuchauthorityandtheDirectorsshallbeentitledtoallotorgrantSecuritiesinpursuanceosuchanoeroragreementasisuchauthorityhadnotexpired.

Toconsiderand,ithoughtft,topassResolutions10and11asspecialresolutions:

10.That,subjecttothepassingoResolution9above(the‘Section551Resolution’),andinsubstitutionoranyexistingauthorityunderSection95(1)otheCompaniesAct1985butwithoutprejudicetotheexerciseoanysuchauthoritypriortothedatehereo,theDirectors otheCompanybeandtheyareherebygenerallyempowered,pursuanttoSections570and573otheCompaniesAct2006(the‘Act’),toallotequitysecurities(asdefnedinSection560otheAct),orcashpursuanttotheSection551Resolutionorbywayoasaleotreasuryshares,ineachcaseasiSection561(1)otheActdidnotapplytoanysuchallotmentoequitysecurities,providedthatthispower:

(a) shallbelimitedtotheallotmentoequitysecuritiesinconnection

withanoerosuchsecuritiestotheholdersoordinaryshareso25penceeachinthecapitalotheCompanyinproportion(asnearlyasmaybe)totheirrespectiveholdingsosuchsharesbutsubjecttosuchexclusions,limitsorrestrictionsorotherarrangementsastheDirectorsmaydeemnecessaryorexpedienttodealwithtreasuryshares,ractionalentitlements,recorddatesoranylegal,regulatoryorpracticalproblemsinorunderthelawsoanyterritory,ortherequirementsoanyregulatorybodyoranystockexchangeinanyterritoryorotherwisehowsoever;

(b) shallbelimitedtotheallotmentoequitysecurities(otherwisethanpursuanttosub-paragraph(a)othisresolution)uptoanaggregatenominalvalueo£124,069beingapproximately10%othenominalvalueotheissuedsharecapitalotheCompany,asat3August2010;and

TheAnnualGeneralMeetingotheCompanywillbeheldattheofcesoBaillieGiord&Co,CaltonSquare,1GreensideRow,EdinburghEH13AN,onWednesday,22September2010at12.00noon.

Iyouhaveanyqueriesastohowtovoteorhowtoattendthemeeting,pleasecalluson08000270133.

BaillieGiordmayrecordyourcall.

–




(c) expiresattheconclusionothenextAnnualGeneralMeetingotheCompanyheldaterthepassingothisResolutionorontheexpiryo15monthsromthedateopassingothisResolution,whicheveristheearlier,savethattheCompanymay,beoresuchexpiry,makeanoerorenterintoanagreementwhichwouldormightrequireequitysecuritiestobeallottedatersuchexpiryandtheDirectorsmayallotequitysecuritiesinpursuanceoanysuchoeroragreementasithepowerconerredherebyhadnotexpired.

11.That,insubstitutionoranyexistingauthoritybutwithoutprejudicetotheexerciseoanysuchauthoritypriortothedatehereo,theCompanybeandisherebygenerallyandunconditionallyauthorisedpursuanttoSection701otheCompaniesAct2006(the‘Act’)tomakemarketpurchases(withinthemeaningoSection693(4)otheAct)oordinaryshareso25penceeachinthecapitalotheCompany(‘ordinaryshares’)insuchmanneranduponsuchtermsastheDirectorsotheCompanymayromtimetotimedetermine,providedthat:

(a) themaximumaggregatenumberoordinarysharesherebyauthorisedtobepurchasedis743,918representingapproximately14.99%otheissuedordinarysharecapitalotheCompanyasat3August2010;

(b) theminimumprice(excludingexpenses)whichmaybepaidoranyordinaryshareis25pence;

(c) themaximumprice(excludingexpenses)whichmaybepaidoranyordinaryshareshallnotbemorethanthehighero:

(i) 5percentabovetheaverageclosingpriceoanordinaryshareontheLondonStockExchangeoverthefvebusinessdaysimmediatelyprecedingthedateopurchase;and

(ii) thehigherothepriceothelastindependenttradeinordinarysharesandthehighestcurrentindependentbidorsuchsharesontheLondonStockExchange;and

(d) unlesspreviouslyvaried,revokedorrenewedbytheCompanyinageneralmeeting,theauthorityherebyconerredshallexpireattheconclusionothenextAnnualGeneralMeetingotheCompanyheldaterthepassingothisresolutionorontheexpiryo15monthsromthedateopassingothisresolution,whicheveristheearlier,savethattheCompanymay,priortosuchexpiry,enterintoacontracttopurchaseordinarysharesundersuchauthoritywhichwillormightbecompletedorexecutedwhollyorpartlyatertheexpirationosuchauthorityandmaymakeapurchaseoordinarysharespursuanttoanysuchcontract.

ByorderotheBoard

BaillieGiord&CoManagersandSecretaries19August2010





Notes1. InormationabouttheMeetingisavailableontheCompany’spage

otheManagers’websiteatwww.midwynd.co.uk

2. Asashareholderyouareentitledtoappointoneormoreproxiestoexercisealloranyoyourrightstoattend,speakandvoteattheMeeting.Youmayappointmorethanoneproxyprovidedeachproxyisappointedtoexerciserightsattachedtodierentshares.Youmaynotappointmorethanoneproxytoexercisetherightsattachedtoanyoneshare.AproxyneednotbeashareholderotheCompany.

3. AFormoProxyisenclosedandtobevalidmustbelodgedwiththeRegistrarsotheCompanyatComputershareInvestorServicesPLC,POBox82,ThePavilions,BridgewaterRoad,BristolBS996ZYorwww.eproxyappointment.comsoastoarrivenotlaterthan48hours,excludingnon-workingdays,beorethetimesetortheMeeting,oranyadjournedmeeting.AnyPoweroAttorneyoranyotherauthorityunderwhichtheFormoProxyissigned(oradulycertifedcopyo

suchpowerorauthority)mustbeincludedwiththeFormoProxy.TheappointmentoaproxywillnotpreventashareholderromsubsequentlyattendingandvotingattheMeetinginperson.

4. TherighttovoteattheMeetingisdeterminedbyreerencetotheRegisteroMembersotheCompanyasatthecloseobusinesson20September2010.

ChangestoentriesontheRegisteroMembersaterthecloseobusinesson20September2010shallbedisregardedindeterminingtherightsoanyshareholdertoattendandvoteattheMeeting.

5. Asashareholder,youhavetherighttoputquestionsattheMeetingrelatingtothebusinessbeingdealtwithattheMeeting.

6.ShareholdersparticipatingintheBaillieGiordInvestmentTrustSharePlan,Children’sSavingsPlanortheBaillieGiordInvestment

TrustISAwhowishtovoteand/orattendtheMeetingmustcompleteandreturntheenclosedreply-paidFormoDirection.

7. AnypersontowhomthisNoticeissentwhoisapersonnominatedunderSection146otheCompaniesAct2006(the‘2006Act’)toenjoyinormationrights(a‘NominatedPerson’)may,underagreementbetweenthemandtheshareholderbywhomtheywerenominated,havearighttobeappointed(ortohavesomeoneelseappointed)asaproxyortheMeeting.IaNominatedPersonhasnosuchproxyappointmentrightordoesnotwishtoexerciseittheymay,underanysuchagreement,havearighttogiveinstructionstotheshareholderastotheexerciseovotingrights.ThestatementotherightsoshareholdersinrelationtotheappointmentoproxiesinNotes2and3abovedoesnotapplytoNominatedPersons.TherightsdescribedintheseNotescanonlybeexercisedby

shareholdersotheCompany.8. Asatnoonon3August2010,thelatestpracticabledatebeore

publicationothisdocument,theCompanyhad4,962,766ordinaryshareso25peachinissue.EachordinarysharecarriestherighttoonevoteatageneralmeetingotheCompanyand,thereore,thetotalnumberovotingrightsintheCompanyasatnoonon3August2010is4,962,766.

9. CRESTmemberswhowishtoappointaproxyorproxiesbyutilisingtheCRESTelectronicproxyappointmentservicemaydosoortheMeetingandanyadjournment(s)thereobyutilisingtheproceduresdescribedintheCRESTManualontheEuroclearwebsite(www.euroclear.com/CREST).CRESTpersonalmembersorotherCRESTsponsoredmembersandthoseCRESTmemberswhohaveappointedavotingserviceprovider(s),shouldreertotheirCREST

sponsororvotingserviceprovider(s)whowillbeabletotaketheappropriateactionontheirbehal.

10.InorderoraproxyappointmentbymeansoCRESTtobevalid,theappropriateCRESTmessage(a‘CRESTProxyInstruction’)mustbeproperlyauthenticatedinaccordancewithEuroclearUKandIrelandLimited’s(‘EUI’)specifcationsandmustcontaintheinormationrequiredorsuchinstructions,asdescribedintheCRESTManual.Themessagemustbetransmittedsoastobereceivedbytheissuer’sagent(IDnumber3RA50)notlaterthan48hoursbeorethetimeappointedorholdingtheMeeting.Forthispurposethetimeoreceiptwillbetakentobethetime(asdeterminedbythetimestampappliedtothemessagebytheCRESTApplicationsHost)romwhichtheissuer’sagentisabletoretrievethemessagebyenquirytoCRESTinthemannerprescribedbyCREST.

11.CRESTmembersand,whereapplicable,theirCRESTsponsorsorvotingserviceprovidersshouldnotethatEUIdoesnotmakeavailablespecialproceduresinCRESToranyparticularmessages.NormalsystemtimingsandlimitationswillthereoreapplyinrelationtotheinputoCRESTProxyInstructions.ItistheresponsibilityotheCRESTmemberconcernedtotake(or,itheCRESTmemberisaCREST

personalmemberorsponsoredmemberorhasappointedavotingserviceprovider(s),toprocurethathisCRESTsponsororvotingserviceprovider(s)take(s))suchactionasshallbenecessarytoensurethatamessageistransmittedbymeansotheCRESTsystembyanyparticulartime.Inthisconnection,CRESTmembersand,whereapplicable,theirCRESTsponsorsorvotingserviceprovidersarereerred,inparticular,tothosesectionsotheCRESTManualconcerningpracticallimitationsotheCRESTsystemandtimings.

12.TheCompanymaytreatasinvalidaCRESTProxyInstructioninthecircumstancessetoutinRegulation35(5)(a)otheUncertifcatedSecuritiesRegulations2001.

13.NoDirectorhasacontractoservicewiththeCompany.CopiesoDirectors’lettersoappointmentwillbeavailableorinspectionoratleast15minutespriortotheMeetingandduringtheMeeting.

14.Itispossiblethat,pursuanttorequestsmadebyshareholdersotheCompanyunderSection527otheCompaniesAct2006(the‘2006Act’),theCompanymayberequiredtopublishonawebsiteastatementsettingoutanymatterrelatingto:(i)theauditotheCompany’saccounts(includingtheauditors’reportandtheconductotheaudit)thataretobelaidbeoretheMeeting;or(ii)anycircumstancesconnectedwithanauditorotheCompanyceasingtoholdofcesincethepreviousmeetingatwhichannualaccountsandreportswerelaidinaccordancewithSection437othe2006Act.

TheCompanymaynotrequiretheshareholdersrequestinganysuchwebsitepublicationtopayitsexpensesincomplyingwithSections527or528othe2006Act.WheretheCompanyisrequiredtoplaceastatementonawebsiteunderSection527othe2006Act,

itmustorwardthestatementtotheCompany’sauditorsnotlaterthanthetimewhenitmakesthestatementavailableonthewebsite.ThebusinesswhichmaybedealtwithatthemeetingincludesanystatementthattheCompanyhasbeenrequiredunderSection527othe2006Acttopublishonawebsite.





http://www.eproxyappointment.com/



http://www.euroclear.com/CREST










Further Shareholder InformationHow to Invest

TheCompany’ssharesaretradedontheLondonStockExchange.

Theycanbeboughtbyplacinganorderwithastockbroker,byaskingaproessionaladvisertodoso,orthroughtheBaillieGiordsavingsvehicles(seepage57ordetails).IyouareinterestedininvestingdirectlyinMidWynd,youcandosoonline.Thereareanumberocompaniesoeringrealtimeonlinedealingservices–fndoutmorebyvisitingtheinvestmenttrustpagesatwww.bailliegifford.com.

Sources of Further Information on the Company

ThepriceosharesisquoteddailyintheFinancialTimesandcanalsobeoundontheBaillieGiordwebsiteatwww.bailliegifford.com ,Trustnetatwww.trustnet.co.uk andonotherfnancialwebsites.Companyactsheetsarealsoavailable

ontheBaillieGiordwebsiteandareupdatedmonthly.TheseareavailableromBaillieGiordonrequest.

Key Dates

Ordinaryshareholdersnormallyreceivetwodividendsinrespectoeachfnancialyear.AninterimdividendispaidinAprilandafnaldividendispaidinOctober.TheAGMisnormallyheldinOctober.

Capital Gains Tax

ForCapitalGainsTaxindexationpurposes,themarketvalueoanordinaryshareintheCompanyasat31March1982was52p.

Share Register Enquiries

ComputershareInvestorServicesPLCmaintainstheshareregisteronbehalotheCompany.Intheeventoqueriesregardingsharesregisteredinyourownname,pleasecontacttheRegistrarson08707071186.

Thishelplinealsooersanautomatedsel-serviceunctionality(available24hoursaday,7daysaweek)whichallowsyouto:

•hearthelatestshareprice;

•confrmyourcurrentshareholdingbalance;

•confrmyourpaymenthistory;and

•orderChangeoAddress,DividendBankMandateandStock

Transerorms.

ByquotingthereerencenumberonyoursharecertifcateyoucanalsocheckyourholdingontheRegistrars’websiteatwww-uk.computershare.com/investor.

Theyalsooeraree,securesharemanagementwebsiteservicewhichallowsyouto:

•viewyourshareportolioandseethelatestmarketpriceoyourshares;

•calculatethetotalmarketpriceoeachshareholding;

•viewpricehistoriesandtradinggraphs;

•updatebankmandatesandchangeaddressdetails;

•useonlinedealingservices;and

•paydividendsdirectlyintoyouroverseasbankaccountinyourchosenlocalcurrency.

Totakeadvantageothisservice,pleaseloginatwww-uk.computershare.com/investorandenteryourShareholderReerenceNumberandCompanyCode(thisinormationcanbe

oundonthelastdividendvoucheroryoursharecertifcate).

Dividend Reinvestment Plan

ComputershareoperateaDividendReinvestmentPlanwhichcanbeusedtobuyadditionalsharesinsteadoreceivingyourdividendviachequeorintoyourbankaccount.Forurtherinormationlogintowww-uk.computershare.com/investorandollowtheinstructionsortelephone08707071694.

Electronic Proxy Voting

Iyouholdstockinyourownnameyoucanchoosetovotebyreturningproxieselectronicallyat www.eproxyappointment.com.

IyouhaveanyquestionsaboutthisservicepleasecontactComputershareon08707071186.

Mid Wynd is an investment trust. Investment trustsoffer investors the following:

•Participationinadiversifedportoliooshares.

•Constantsupervisionbyexperiencedproessionalmanagers.

•TheCompanyisreeromcapitalgainstaxoncapitalproftsrealisedwithinitsportolio,althoughinvestorsarestillliableorcapitalgainstaxonproftswhensellingtheirinvestment.

ThefnancialstatementshavebeenapprovedbytheDirectorso

MidWyndInternationalInvestmentTrustPLC.BaillieGiordSavingsManagementLimited(‘BGSM’)istheISAManagerotheBaillieGiordInvestmentTrustISAandtheManagerotheBaillieGiordInvestmentTrustSharePlanandChildren’sSavingsPlan.BGSMiswhollyownedbyBaillieGiord&Co.BothareauthorisedandregulatedbytheFinancialServicesAuthority.BaillieGiordonlyprovidesinormationaboutitsproductsanddoesnotprovideinvestmentadvice.ThestaoBaillieGiordandMidWynd’sDirectorsmayholdsharesinMidWyndandmaybuyorsellsuchsharesromtimetotime.

Risks


MidWyndislistedonthestockmarket.Asaresult,thevalueotheshares,andanyincomeromthoseshares,isnotguaranteedandcouldgodownaswellasup.Youmaynotgetbacktheamount youinvested.Youshouldviewyourinvestmentaslongterm.

AsMidWyndinvestsinoverseassecurities,changesintheratesoexchangemayalsocausethevalueoyourinvestment(andanyincomeitmaypay)togodownorup.

MidWyndcanborrowmoneytomakeurtherinvestments(sometimesknownas‘gearing’).TheriskisthatwhenthismoneyisrepaidbytheCompany,thevalueotheinvestmentsmaynotbeenoughtocovertheborrowingandinterestcosts,andtheCompanywillmakealoss.

ItheCompany’sinvestmentsallinvalue,anyborrowingswillincreasetheamountothisloss.

MidWyndcanbuybackandcancelitsownshares.Therisksromborrowing,reerredtoabove,areincreasedwhentheCompanybuysbackandcancelsitsshares.

furTher sharehoLDer InforMaTIon

http://www.bailliegifford.com/pages/UKPersonalInvestors/InvestmentTrusts/midwynd/itsinvestonline.aspx



http://www.bailliegifford.com/pages/UKPersonalInvestors/itprices/prices.aspx

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundcode=ITMWY&univ=T






http://www-uk.computershare.com/investor





















MidWyndcanmakeuseoderivatives.Wherederivativesareusedtocompensateorpossibleunavourablecurrencyandmarketmovementsthereisariskthatpotentialgainsmayberestrictedinarisingmarket.WherederivativesareusedorinvestmentpurposestherecouldbeahighriskolosstotheCompanyduetothelargeandquickpricemovementsothesecontracts.

MidWyndcharges50%otheinvestmentmanagementeeand50%oborrowingcoststocapitalwhichreducescapitalvalue.

Also,whereincomeislow,theremainingexpensesmaybegreaterthanthetotalincomereceived,meaningtheCompanymaynotpayadividendandthecapitalvaluewouldbeurtherreduced.

TheavourabletaxtreatmentoISAsmaychange.

Detailsootherrisksthatapplytoinvestmentinthesavingsvehiclesshownbelowarecontainedintheproductbrochures.

Baillie Gifford Savings Vehicles

BaillieGiord&CooeranumberoplansthatenableyoutobuyandholdsharesinMidWyndcost-efciently.PurchasesandsalesarenormallysubjecttoadealingpricespreadandGovernmentstampdutyo0.5%ispayableonpurchases.

Baillie Gifford’s Investment Trust Share Plan

Youcaninvestaminimumo£250orrom£30permonth.Theplanisdesignedtobeacost-eectivewayosavingonaregularorlumpsumbasis.

Baillie Gifford’s Investment Trust ISA

Youcaninvestinataxefcientwaybyinvestingaminimumo£2,000orrom£100permonthorbytranserringanISAwithavalueoatleast£2,000romyourexistingmanager.

Baillie Gifford’s Children’s Savings Plan

Acost-eectiveplantailoredespeciallytomeettherequirementstosaveorchildren.Youcaninvestaminimumo£100orrom£25permonth.

Online Management Service

YoucanalsoopenandmanageyourSharePlanand/orISAonline,throughoursecureOnlineManagementService(OMS)whichcanbeaccessedthroughtheBaillieGiordwebsiteatwww.bailliegifford.com .OMSenablesyoutoapplyor,openandadministeraBaillieGiordInvestmentTrustSharePlanorInvestmentTrustISAonline.Aswellasbeingabletoviewthedetailsoyourplanonline,theservicealsoallowsyouto:

• getcurrentvaluations;

• makelumpsuminvestments;

• switchbetweeninvestmenttrusts(exceptwherethereismorethanoneholder);

• setupadirectdebittomakeregularinvestments;and

• updatecertainpersonaldetails.

Further Information

ClientRelationsTeamBaillieGiordSavingsManagementLimited

CaltonSquare1GreensideRowEDINBURGHEH13AN

Tel:08000270133Wemayrecordyourcall

E-mail:[email protected]:www.bailliegiord.com

Fax:01312753955

At 30 June 2010 At 30 June 2009

Number % Number %

Institutions 188,123 3.8 225,488 4.5Intermediaries 1,912,803 38.6 2,134,463 42.5

Individuals 1,743,096 35.1 1,695,443 33.7BaillieGiordSharePlans/ISA 1,118,744 22.5 972,372 19.3

4,962,766 100.0 5,027,766 100.0

furTher sharehoLDer InforMaTIon

Analysis of Shareholders

http://www.bailliegifford.com/pages/UKPersonalInvestors/SharePlan/SharePlan.aspx

http://www.bailliegifford.com/pages/UKPersonalInvestors/ISAs/ISAs.aspx


http://www.bailliegifford.com/pages/UKPersonalInvestors/Children/InvestingforChildren.aspx


http://www.bailliegifford.com/pages/UKPersonalInvestors/InvestmentTrusts/UKRetailInvestorsandAdvisers/OnlineManagementService.aspx










http://www.bailliegifford.com/pages/UKPersonalInvestors/SharePlan/SharePlan.aspx





Dict

Chairman:PMS Barron

RRJ BurnsRAR NapierMCN Scott

rgit

Computershare InvestorServices PLCPO Box 82The PavilionsBridgwater RoadBristol BS99 7NHTel: 0870 707 1186

bk

The Bank of New YorkMellon

bk

JP Morgan Cazenove10 AldermanburyLondonEC2V 7RF

Independent auditors

Scott-MoncrieffExchange Place 3Semple StreetEdinburghEH3 8BL

Company registration No. SC42651

Mid Wynd International IT PLC

Documents

Transcript of Mid Wynd International IT PLC