Meet Mid Wynd International chairman David Kidd
David reflects on why he loves investment trusts and what makes Mid Wynd different.
David Kidd sharpened his observational skills watching sport. As well as being a keen racegoer, the chairman of Mid Wynd International Investment Trust at one point held season tickets for three football clubs: Falkirk, Cheltenham Town and Oxford United. Fans of other teams might remark that this suggests a proclivity for quantity over quality. He laughs at the thought. But in the investment arena his experience is seen as premier league, and his insights highly valued.
David became Chief Investment Officer for Royal Bank of Scotland’s investment management division at the age of 29. He has also worked for private bank Arbuthnot Latham and was director of the Salvation Army international trustee company for nine years.
His heart, though, lies with investment trusts. He is chairman of the Baillie Gifford Japan Trust, was also recently on the board of the Martin Currie Global Portfolio Trust (now Franklin Global Trust) and worked with the pensions side of the Law Debenture business during the Truss/Kwarteng crisis. David first joined Mid Wynd in 2016 and became chairman in October 2024.
I’ve seen the downsides of open-ended funds and the difficulties of having large inflows and outflows every single day.
David Kidd, Chairman of Mid Wynd International
He says: “I’ve lived through some tumultuous times in the investment world. In particular, I’ve seen the downsides of open-ended funds and the difficulties of having large inflows and outflows every single day. The closed-ended nature of investment trusts has a lot of benefits.
“I made my first personal investment in a trust in 1984 and got my first non-executive director position in 2004. We’re coming out of a difficult cycle where trusts have been under pressure. We’ve seen 17 mergers, acquisitions or liquidations in the first half of 2025 alone compared with nine in the same period last year. But I think there will be times – and I suspect not too far ahead – where we see trusts issuing shares again and the launch of new trusts.
“I think this structure still has benefits and relevance today. Investment trusts have a long history of meeting the needs of investors. There’s the opportunity to use gearing when it’s cost-effective, costs tend to be lower, and the independent board is able to exercise some control and governance. The single most important people are the shareholders and potential shareholders. They come way above anybody else, and our primary job as a board is to represent them.
“Boards try to do this in several ways. They must try to ensure that the investment managers employed are the right investment managers. If circumstances change, they can make changes ¬– as the Mid Wynd board has in the past. That means investors can put their money in for the long term, knowing somebody experienced is keeping a close eye on the management of the assets.
“On the governance side, a board will look at risk control measures, succession plans and reporting. It will ensure that the reports and accounts are clear and fit for purpose. Importantly, the board should ensure that communications and marketing are of high quality and that shareholders are being kept well informed about their investments.
“In the past, when investment trust AGMs were sometimes accompanied by a three-course meal and wine, you could get 150 private investors along. These days the refreshments at AGMs are much more modest, travel costs are higher, and so a lot fewer turn up. That’s disappointing to me, because I used to meet a lot of investors year after year. I valued those meetings and the feedback and insights I would get from them.
“Today we have to be more creative in how we reach out to shareholders. This is why we encourage investors and prospective investors to sign up to our newsletter – so we can share factsheets, manager videos and investment articles to keep them abreast of what’s happening in the trust and the wider economy. I would still encourage investors to come to the AGM, though – it’s good to meet the board and the managers face to face.”
What makes Mid Wynd distinctive? David replies: “I think it has a very clear, well-developed and powerful investment philosophy centred on quality compounders that have been shown to deliver strong returns over the long term. I would also say that it has a very clear and well-run discount control mechanism. One of the potential downsides of investment trusts is that discounts can widen in times of market stress. Mid Wynd’s commitment to ensuring that the discount doesn’t go far beyond 2% gives investors a lot of reassurance.”
He adds: "We've seen the discounts of some rival trusts in our sector sink to between 25% and 30% in the past year. On the one hand that can present a buying opportunity for newcomers. However, for existing holders who might need to sell some units for income or other needs, that can be very painful indeed. In some ways it's hurt Mid Wynd not to let the discount just widen – it's made the trust less attractive to new shareholders, though that's changing as discounts have started coming in again generally. But it's been good for existing shareholders. It’s an article of faith for us that we control the discount to protect the interests of our loyal supporters. And from the conversations I've had with investors, it's something that's really valued."
Interview by Martin Stott, CEO of Bulletin PR
