Middlefield Canadian Income PCC, a closed-end investment company, released its half-yearly financial report for the period ended June 30, 2024. The report includes financial highlights, a chairmans statement, an investment managers interim report, and detailed financial statements for the Fund and the Company. Here is a summary
## Financial Highlights
The Funds total return for the six months ended June 30, 2024, was 4.6% compared to the benchmark total return of 0.3%.
Dividends paid were 1.325p per share quarterly, with a 5.3p per share dividend guidance for 2024.
The yield was 5.1%, with a share price of 103p and a net asset value per share of 121.22p.
Net assets totaled £129.1 million.
## Chairmans Statement
The Fund focuses on high levels of stable and increasing income, along with capital growth, by investing in high-quality, large-capitalization Canadian businesses.
The Funds investment manager, Middlefield Limited, has over 40 years of experience in the Canadian market and uses an active management strategy.
The Funds share price discount to NAV narrowed from 16.8% at the end of 2023 to 15.0% as of June 30, 2024, and further reduced to 12.4% as of September 18, 2024.
The Funds gearing relative to total assets was consistent throughout H1, and net gearing at the end of the period was 18.3%.
The Board approved a 0.1p increase in the annual dividend target, and two quarterly interim dividends of 1.325p per share were paid.
The Board regularly reviews the Funds dividend coverage and will consider further dividend increases based on legal requirements, market conditions, and the Funds earnings.
## Investment Managers Interim Report
The Funds performance was driven by strong returns in the U.S. market, led by technology stocks.
Canadian equities generated a total return of 3.4% in British Pounds and an above-average return of 6.1% in Canadian dollars.
The Fund is overweight in Real Estate, Financials, Energy, and Pipelines sectors compared to the benchmark.
The Fund maintains a positive outlook on Canadian energy stocks and is overweight in energy producers and infrastructure companies.
Financials represented the largest sector weight in the portfolio, with rebounding capital markets activity and increased cost-cutting efforts.
The Fund has a positive outlook on Canadian REITs, benefiting from a structural demand/supply imbalance, and expects capital flows to return to dividend-paying equities in Canada.
## Conclusion
The Half-Yearly Financial Report provides a comprehensive overview of Middlefield Canadian Income PCCs performance and financial position as of June 30, 2024. The Fund focuses on stable and increasing income, capital growth, and investing in high-quality Canadian businesses. The Funds active management strategy, sector allocations, and exposure to key Canadian themes and industries contribute to its performance.