Category: Health

MIL-OSI Africa: African Development Bank Group to expand investment in Lesotho to $331 million
Source: Africa Press Organisation – English (2) – Report:

MASERU, Lesotho, March 25, 2025/APO Group/ —

The African Development Bank Group (www.AfDB.org) plans to invest $331 million in key strategic sectors in Lesotho as part of its proposed Country Strategy Paper for 2025-2030 to boost economic growth and industrial competitiveness.

During an official visit to Lesotho — the first by an African Development Bank President — Dr. Akinwumi Adesina met with His Majesty King Letsie III to discuss strengthening development partnerships and expanding the Bank’s investments in the country.

His Majesty expressed delight at the Bank President’s visit, viewing the mission as a reflection of the Bank and Adesina’s appreciation for Lesotho’s progress in improving people’s lives.

“With haste, we will ensure that the policies and incentives to accommodate the needs of and attract the private sector are in place, especially in healthcare, agriculture, and manufacturing,” the King remarked.

King Letsie said he was confident that Adesina, whom he described as a ‘man of action,’ would help catalyze progress on the Bank’s strategic projects in Lesotho.

Adesina thanked King Letsie for his strong leadership role as the African Union Nutrition Champion since 2014, his advocacy for improved nutrition and food security on the continent — especially for women, adolescents, and children — and his passion for youth development.

The African Development Bank president commended His Majesty for his leadership on the King Letsie III Just Energy Transition Fund, which aims to generate approximately 200 megawatts of power through private sector investments.

He also briefed King Letsie about the Bank’s new 2025-2030 Country strategy paper and planned investments of $331 million to support quality infrastructure, capacity building, energy, integration and interconnectivity, debt management and standards, and strengthening the office of the Prime Minister.

Referencing dwindling donor commitments globally, Dr. Adesina said, “Africa must prepare to engage more proactively with the private sector. Every challenge is an investor’s dream. Ultimately, capital, like water, will always find a receptive place to go.”

According to Adesina, the Bank has implemented 87 projects totaling $429 million since Lesotho joined the Bank in 1973.

“We have eight ongoing projects worth $60 million, and we look forward to significantly expanding our commitments,” Adesina said.

The Bank’s investment strategy for Lesotho will focus on several priority areas:
- Energy infrastructure, including electricity transmission lines connecting Lesotho to South Africa
- Agricultural development to enhance food security and rural livelihoods
- Climate resilience initiatives to address environmental challenges
- Digital transformation, including broadband expansion for digital financial inclusion and government service digitalization
- Water resource management, building on the success of the Lesotho Lowland Rural Water Supply Project
- Public financial management and debt management support
- Trade competitiveness enhancements through improved grades and standards for exports
The African Development Bank-led Lesotho Rural Water Supply and Sanitation Project has delivered remarkable results: 190 kilometers of pipeline to distribution networks, water storage tanks with a total capacity of 3.48 million liters, and 166 public water points serving approximately 28,266 people across eight zones in Maseru and Berea districts.

Responding to King Letsie’s request, Dr. Adesina said the Bank will prioritize investments in primary healthcare centers across Lesotho.

“We will work on an integrated project that includes components of energy, a potential multi-partner $2.3 billion water transfer project from Lesotho through South Africa to Botswana, agro-value chains, and trade facilitation in Lesotho,” Adesina said after the meeting with King Letsie III.

The Bank is expected to support Lesotho in mobilizing approximately $260 million for the integrated water transfer project, which will supply 308 million cubic meters of water for domestic, agricultural, and industrial use through a 700 km pipe system. The project has the potential to generate up to 22 MW of hydropower.

Speaking earlier, Minister of Finance and Development Planning Retselisitsoe Matlanyane indicated that as Lesotho’s energy supply will exceed domestic demand by the end of 2026, the country intends to build a substation to export excess power production to South Africa. She reiterated Lesotho’s commitment to private sector-friendly policies and engagement.

The minister highlighted the importance of primary healthcare and nutrition investments to help combat extreme stunting in several parts of the country.

King Letsie is the African Union-appointed African Leaders for Nutrition champion. The initiative, spearheaded by the African Development Bank and championed by African leaders, works to galvanize political will and significant investments to end malnutrition on the continent.

Dr. Adesina also met with Prime Minister Samuel Ntsokoane Matekane; and the ministers of Foreign Affairs; Agriculture, Food Security & Nutrition; Natural Resources; Health; Communication, Science & Technology; and Education & Training.

The Bank’s delegation to Lesotho included its Executive Director for Lesotho, Dr. Nomfundo X. Ngwenya; Deputy Director General for Southern Africa, Moono Mupotola; and Senior Advisor to the President for Communication and Stakeholder Engagement, Dr. Victor Oladokun.

MIL OSI Africa –
March 25, 2025
MIL-OSI NGOs: Oxfam: Humanitarian operations in Gaza severely hampered; famine risks increasing

Source: Oxfam –

Restoring ceasefire deal vital as death toll hits 50,000 and continues to rise amid Israeli airstrikes, aid and power blockades and renewed mass forced displacements

Oxfam and partners’ operations have been severely hampered as Israel’s renewed military assault and ground offensive on Gaza continues into its 7th day.

Oxfam is calling for a renewed ceasefire and for Israel to lift its 23-day siege which is again blocking aid supplies and increasing famine risks for desperate civilians. Israel imposed a complete blockade 23 days ago and cut off electricity to Gaza a few days later.

Israeli authorities are denying entry to trucks loaded with 63,000 metric tons of food for 1.1 million people. Operations have been forced to stop in vital areas such as food security and livelihood, as well as hygiene promotion, and essential repair work to damaged water infrastructure.

“For the past 535 days, Israel has been systematically weaponizing life-saving aid, inflicting collective punishment upon the population of Gaza. The denial of food, water, fuel and electricity is a war crime and a crime against humanity. Many within the international community are enabling this by their silence, inaction and complicity.”

Bushra Khalidi, Policy Lead

Oxfam Office in the Occupied Palestinian Territory and Israel

Bushra Khalidi, Oxfam’s OPT Policy Lead, said:

“During the 42-day ceasefire families in Gaza could finally fall asleep knowing their loved ones would still be beside them when they woke up. Even though aid that entered was not enough—far from enough—it was something. The price of food stabilized. Supermarkets reopened. Bakeries began running again. Many people even went to their homes or what was left of it, and tried to repair and rebuild, however little they could.”

Humanitarian agencies were able to mount operations that saw an average of more than 4,000 trucks per week entering Gaza despite Israeli authorities initially only partially opening the crossings and denying much of the urgently needed reconstruction materials. Oxfam reached almost 200,000 people with essential relief.

Israel’s renewed bombardment of residential areas, including Jabalia and Khan Younis, has killed almost 700 people, including at least 200 children since March 18. Israeli authorities have issued new mass forced displacement orders, forcing around 120,000 Palestinians to flee across at least 37% of Gaza. These orders are causing panic and chaos in the absence of anywhere safe in Gaza.

Oxfam says humanitarian operations have been gravely hindered by the absence of guarantees of safety for aid workers moving around Gaza.

Oxfam and its partners say their storage facilities containing food parcels are severely depleted. Israeli authorities have denied access to Oxfam shipments of six desalination units and seven trucks of water and sanitation infrastructure, up to 85% of which has been destroyed by Israel’s bombing campaign.

“Oxfam, through its partners has been able to initiate emergency water trucking across the Gaza Strip, and are maintaining some other aid programs, such as multi-purpose cash transfers, despite the severe challenges that all humanitarian workers now face around lack of protection,” said Khalidi.

“For the past 535 days, Israel has been systematically weaponizing life-saving aid, inflicting collective punishment upon the population of Gaza. The denial of food, water, fuel and electricity is a war crime and a crime against humanity. Many within the international community are enabling this by their silence, inaction and complicity.”

Oxfam’s health partner in Gaza, Juzoor for Health and Social Development, had its center in Jabalia destroyed in an airstrike on March 18. It had been serving over 1,000 patients daily. Dr Umaiyeh Khammash, Director of Juzoor, said: “Every airstrike that hits, threatens the lives and safety of our dedicated staff and the patients they serve. This center is not just a building; it’s the heartbeat of healthcare for countless families here. Without it, many will lose access to crucial medical care.”

In another attack yesterday (March 23), three sewage operators from the Abasan Al Kabira municipality working with Oxfam’s partner Coastal Municipalities Water Utility (CMWU) were killed while performing their duties when their clearly- marked truck was destroyed in an attack by Israeli military.

A renewed ceasefire must be permanent and accompanied by the safe return of Israeli hostages and illegally detained Palestinian prisoners. Israel must provide unfettered aid at scale. Oxfam said governments must stop transferring arms, while the international community must enforce international law. We reiterate our call for justice and accountability for all those affected.

MIL OSI NGO –

March 25, 2025
MIL-OSI United Kingdom: Survey finds adult social care workers have pride in their role

Source: City of Wolverhampton

That’s according to the latest Social Work and Wider Workforce Health Checks, annual surveys which assess the health and wellbeing of social workers and other frontline practitioners within Adult Social Care.

They found that practitioners feel supported by learning and development opportunities and by good quality, regular supervision which helps them to ensure they are providing the right support to adults in the city, while also being able to discuss their own wellbeing.

A report due to go to Adult Scrutiny Panel today (Tuesday 25 March, 2025) also shows that, once again, the majority of staff across the service have a strong sense of pride in the job that they do – and would recommend the council as an employer to their friends and family.

Councillor Jasbir Jaspal, the council’s Cabinet Member for Adults and Wellbeing, said: “I would like to extend my thanks for the fantastic work all of our staff in Adult Social Care do for people in our city.

“Wolverhampton continues to be a place where social care practitioners and social workers can make a real difference to the lives of adults with care and support needs, and carers.

“We have actions already in place to further support our social workers and wider workforce this coming year. However, we will continue to offer regular opportunities for staff to give their feedback on what is working well and also where we can improve as this is an ongoing open dialogue that does not have to wait for the next annual survey.”

For more information about social work jobs available with the City of Wolverhampton Council, please visit Wolverhampton Social Work Jobs.

MIL OSI United Kingdom –

March 25, 2025
MIL-OSI: Personalized Cancer Vaccines Clinical Trials Market Opportunity Technology Platform Insight
Source: GlobeNewswire (MIL-OSI)

Delhi, March 25, 2025 (GLOBE NEWSWIRE) — Global Personalized Cancer Vaccine Market Opportunity & Clinical Trials Outlook 2025 Report Highlights & Findings:
- Commercially Approved Personalized Cancer Vaccine: Provenge
- Provenge Patent , Price & Dosage Insight
- Global Clinical Research Trends By Region & Indication
- Insight On More Than 18 Personalized Cancer Vaccines In Clinical Trials
- Personalized Cancer Vaccines Clinical Insight By Developer, Indication & Phase
- Insight On Key Personalized Cancer Vaccines Proprietary Development Platforms
- Competitive Landscape
Download Report: https://www.kuickresearch.com/report-personalized-cancer-vaccine-clinical-trials

Personalized cancer vaccines represent a revolutionary approach to cancer treatment, leveraging the body’s immune system to fight cancer more precisely. Unlike traditional therapies that target general aspects of cancer cells, these vaccines are designed to recognize and destroy tumors that are unique to each patient. This groundbreaking shift in oncology focuses on exploiting the genetic makeup of a patient’s specific cancer to craft a tailored treatment.

At the heart of personalized cancer vaccines lies the concept of neoantigens mutated proteins found in cancer cells that are not present in normal tissues. The process begins with a tumor biopsy and genetic sequencing to identify mutations driving the cancer. Sophisticated algorithms then predict which neoantigens will trigger a strong immune response. A vaccine is created, often using mRNA or peptides, and administered to stimulate T-cells that recognize and attack cancer cells. This approach primes the immune system to fight cancer more effectively and creates long-term immunity, offering a proactive treatment strategy.

This personalized approach to cancer treatment is particularly promising for cancers with high mutation rates, such as melanoma and lung cancer. Results from the Phase 2b KEYNOTE-942 study demonstrated the potential of combining mRNA-4157 (V940), an mRNA-based cancer vaccine with the checkpoint inhibitors Keytruda in enhancing the immune response in melanoma patients. The 2.5 year recurrence free survival rate for the combination was 74.8%, compared to 55.6% for Keytruda alone, showing significant benefits across various subgroups. These findings demonstrate the power of personalized cancer vaccines to not only treat but potentially prevent recurrence by enabling the immune system to recognize and eliminate any remaining cancer cells.

Despite their potential, there are challenges that need to be addressed in the development of personalized cancer vaccines. The production of these vaccines is time-consuming, and the precision required to predict the right neoantigens is not yet perfect. Not all mutations are immunogenic meaning they may not always provoke the desired immune response—which can limit the effectiveness of the vaccine. Furthermore, the process of sequencing and producing a personalized vaccine for each patient can be resource-intensive, making it a less accessible option for some.

Ongoing research is addressing these challenges, with clinical trials and new technologies driving progress in the field. For example, intratumoral injections, where the vaccine is directly injected into the tumor, and nanoparticle carriers, which deliver the vaccine more efficiently, are showing promise in enhancing the vaccine’s effectiveness. As of early 2025, numerous candidates are in Phase I and II clinical trials, suggesting that personalized cancer vaccines are steadily advancing toward becoming a mainstream treatment.

The future of personalized cancer vaccines also lies in their combination with other therapies, such as existing immunotherapies. Combining these vaccines with checkpoint inhibitors and other treatments could amplify the immune response, offering even greater potential for tumor control and long-term remission. Early-stage cancers or cases with minimal residual disease may particularly benefit from this approach, as the immune system is most effective at preventing recurrence when the cancer burden is low.

In conclusion, personalized vaccines are poised to redefine cancer therapy landscape, offering a tailored, biology driven solution to cancer treatment. While challenges remain, the progress made so far both in terms of clinical trials and technology suggests that this innovative approach could soon become a standard part of cancer care, transforming the way we fight this complex and often devastating disease.

The MIL Network –
March 25, 2025
MIL-OSI United Kingdom: UKHSA highlights pathogens of greatest risk to public health
Source: United Kingdom – Executive Government & Departments

Press release

UKHSA highlights pathogens of greatest risk to public health

A new Priority Pathogens reference tool aims to support national funders of research and development into diagnostics, vaccines and therapeutics.
The UK Health Security Agency (UKHSA) has today published its view on the pathogen families that could pose the greatest risk to public health, in a bid to focus and guide preparedness efforts against these threats.

The list of 24 pathogen families, a reference tool to help guide research and development investment in England, is the first specifically designed to consider both global public health threats as well as those most relevant to a UK population.

It provides information on pathogen families where UKHSA believes further research would be most beneficial to boost preparedness against future biosecurity risks, particularly around diagnostics, vaccines and therapeutics. Research and development across a range of other pathogen families not on this list also remains vital.

For each viral family included in the tool, an indicative rating of high, moderate, or low pandemic and epidemic potential is suggested. These ratings are the opinions of scientific experts within UKHSA, who have considered routes of transmission and severity of disease arising from pathogens in each family to inform the ratings.

This rating does not indicate which pathogen UKHSA considers most likely to cause the next pandemic, but rather those pathogens requiring increased scientific investment and study.

This includes those pathogens where we need increased vaccine or diagnostics development, or those which may be exacerbated by a changing climate or antimicrobial resistance.

Dr Isabel Oliver, Chief Scientific Officer for UKHSA, said:

This tool is a vital guide for industry and academia, highlighting where scientific research can be targeted to boost UK preparedness against health threats.

We are using the tool as part of our conversations with the scientific community, to help ensure that investment is focused to where it can have the biggest impact.

We hope this will help to speed up vaccine and diagnostics development where it is most needed, to ensure we are fully prepared in our fight against potentially deadly pathogens.

Among the pathogen families where UKHSA is keen to see greater scientific strides made are the coronaviridae family, which includes Covid-19; the paramyxoviridae family which includes Nipah virus; and the orthomyxoviridae family which includes avian influenza. However, the reference tool is not a detailed threat assessment and the list of families included in this tool is not exhaustive and the families are not ranked.

Priorities and risks will change with updates in epidemiology and progress will be made with the development of diagnostics and countermeasures. Therefore, the tool, which is intended to be updated annually, must be used with other information as appropriate, and represents a snapshot at one point in time.

The tool, which aims to support all aspects of the UK Biological Security Strategy, is just one of a number of UKHSA is using to secure and protect the public’s health. Both UKHSA’s Vaccine Development and Evaluation Centre and Diagnostic Accelerator are working closely with academia and industry to identify and prepare for pathogenic threats to UK health and the Priority Pathogens tool will help guide this work.

UK Health Security Agency press office

10 South Colonnade
London
E14 4PU

Email ukhsa-pressoffice@ukhsa.gov.uk

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Published 25 March 2025
MIL OSI United Kingdom –
March 25, 2025
MIL-OSI United Kingdom: ‘Broken-heart syndrome’ patients twice as likely to suffer further heart problems New research from the University of Aberdeen found that re-admission to hospital for takotsubo patients was comparable to the re-admission rates for heart attack patients and double that of the general population.

Source: University of Aberdeen

New research from the University of Aberdeen found that re-admission to hospital for takotsubo patients was comparable to the re-admission rates for heart attack patients and double that of the general population.

Our findings highlight these patients’ vulnerability to further illness and need for better treatment and follow-up specific to their condition.” Professor Dana Dawson

Funded by the British Heart Foundation, the research has been published today in Annals of Internal Medicine.

Takotsubo cardiomyopathy affects around 5,000 people in the UK each year, and at least seven percent of all people who attend hospital with a suspected heart attack are subsequently diagnosed with broken heart syndrome.

The University of Aberdeen has led the way on research into the little-understood condition which was only recognised in the late 1990s.

The exact cause of the condition is not clearly understood but an acute episode can be triggered by severe emotional distress, such as the death of a loved one. As a result, when it was first discovered, it was also referred to as “broken heart syndrome”.

Researchers now believe it can be caused by a number of different factors, including intense physical trauma, but also lesser physical or emotional upsets or in some cases no incident at all.

Acute symptoms include shortness of breath and chest pain and as such it is often mistaken for a heart attack. It affects women and men of all ages with women more likely to experience the condition, and although significant recovery is possible, patients can often continue to experience long-lasting symptoms.

Professor Dana Dawson, Chair in Cardiovascular Medicine at the University, led this new research that used data from The Scottish Takotsubo Registry which records all cases of takotsubo in Scotland since January 2010. Currently, this is the only registry in the world with complete national data that includes details of the complete medical care of all takotsubo patients.

Results showed that of nearly 13,000 hospitalisations, the rate of readmissions of patients with takotsubo syndrome was 743 per 1000 person-years for patients with takotsubo syndrome, 365 per 1000 person-years for general Scottish population patients and 750 per 1000 person-years for patients with myocardial infarction.

Professor Dawson explains: “We know that people with takotsubo cardiomyopathy are more likely to die younger and that life expectancy is around the same as patients who have experienced a heart attack. But we don’t know what is causing this.

“We found that patients with takotsubo are twice as likely as the general population to be re-admitted to hospital and that figure is very similar to those who have experienced a heart attack.

“These re-admissions were usually for cardiovascular causes, mostly heart failure or irregular heart rhythms, but interestingly, also commonly for mental health reasons.

“Our findings highlight these patients’ vulnerability to further illness and need for better treatment and follow-up specific to their condition.”

Dr Sonya Babu-Narayan, Clinical Director at the British Heart Foundation and consultant cardiologist, said: “Because patients with Takotsubo syndrome may initially recover from their acute illness well, both in terms of their symptoms and their heart function, the seriousness of the condition may have previously been underestimated. But this study shows their readmission rates to hospital are increased compared to the general population and are almost at the same high level as people who have survived a heart attack.

“It is therefore vital that people with Takotsubo syndrome get the right tests and treatments when they need them. Further research is also crucial, so scientific breakthroughs can be made that will save and improve the lives of those living with this condition.”

Ameila Rudd, BHF-funded Allied Health Professional at the University who gathered and analysed the data added: “We found that takotsubo patients are at increased risk of experiencing ongoing symptoms such as breathlessness, chest pain and that their life expectancy is shortened.

“Our findings demonstrate that these patients remain vulnerable to continuing illness and that further research is still needed to improve their quality of life.”

MIL OSI United Kingdom –

March 25, 2025
MIL-OSI Russia: NSU plans to open a preparatory department in medical and biological profile in Egypt

Translartion. Region: Russians Fedetion –

Source: Novosibirsk State University – Novosibirsk State University –

Novosibirsk State University is discussing the possibility of opening a full-time preparatory department in the medical and biological profile in Cairo or Alexandria by the end of 2025 in partnership with Rossotrudnichestvo and one of the Egyptian recruiting companies. The goal is to ensure a stable flow of foreign students and increase the number of students studying in the medical field. A preliminary agreement on opening the department was reached during the Open Day of Universities of the Novosibirsk Region, which was held at NSU in mid-March.

The University also intends to increase the number of students in the English-language program offered by the Faculty of Medicine and Psychology of NSU, and by attracting students from India.

— In 2024, we had about 30 international students enrolled in the medical program, mostly from Iran. This year, our goal is to double this number by attracting students from India and Egypt. Thus, the opening of a preparatory department in Egypt and the expansion of programs for international students continue NSU’s strategic goal of internationalizing education and strengthening the university’s position in the global educational arena, — commented Evgeniy Sagaydak, Head of the NSU Education Export Department.

The selection of international students for the medical program will include the following stages: registration in the applicant’s personal account with the submission of the necessary documents for admission to the university, an online chemistry exam and an interview to check knowledge of English. In addition, it is planned to organize additional information sessions and webinars for applicants to explain in detail the requirements for applicants, as well as introduce them to the curriculum and life at the university.

The medical direction will be actively developing at the university in the coming years. In 2024, the Institute of Medicine and Medical Technologies (IMMT) of NSU was created, a new Faculty of Pharmacy and Medical Cybernetics appeared. Also within the framework of the project construction of the NSU campus A new building for the educational and scientific center of the NSU Institute of Medical Technologies is being constructed, where a modern infrastructure will be created for training students in the medical field, including equipped laboratories, practical classes, and simulation training centers.

The Open Day of Universities of the Novosibirsk Region is a traditional event that has been held for several years now. The initiator is Novosibirsk State University with the support of the regional Ministry of Education. This year, the event was held in person, unlike in 2024. The number of companies that took part also doubled — 12 in total. In addition, the geography expanded: this year there were representatives from North African countries, Arab countries, including Egypt, as well as Southeast Asian countries — India, Pakistan, China.

— Universities of the Novosibirsk Region are quite willing to take part in the Open Day, and we also see great interest from recruiting companies, who have the opportunity to get to know and negotiate with all Novosibirsk universities in two days, — emphasized Evgeny Sagaydak.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

March 25, 2025

MIL-OSI: Middlefield Canadian Income PCC – Annual Financial Report

Source: GlobeNewswire (MIL-OSI)

Middlefield Canadian Income PCC (the “Company”)

Including Middlefield Canadian Income – GBP PC (the “Fund”), a cell of the Company

Registered No: 93546

Legal Entity Identifier: 2138007ENW3JEJXC8658

ANNUAL FINANCIAL REPORT

The Company hereby announces the publication of its full unedited annual financial report for the year ended 31 December 2024 (the “AFR”).

In accordance with Listing Rule 6.4.1, a copy of the AFR has been submitted to the National Storage Mechanism and it will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

The AFR is also available from the ‘Trust Documents’ section of the Company’s website: https://middlefield.com/funds/uk-funds/middlefield-canadian-income-trust/

Enquiries:

Secretary

JTC Fund Solutions (Jersey) Limited

Tel.: 01534 700000

Dean Orrico

President

Middlefield International Limited

Tel.: 01203 7094016

END OF ANNOUNCEMENT

Middlefield Canadian Income Trust

Annual Report and Accounts

For the year ended 31 December 2024

LON: MCT

Focusing on high levels of stable and increasing income together with capital growth, this Fund invests in high quality, Canadian large capitalisation businesses. Middlefield Limited, the Fund’s investment manager, is a private and independent firm located in Toronto, Canada, and is regulated by the Ontario Securities Commission.

Financial Highlights

2024 DIVIDENDS PAID

5.3p per share

1.325p per share quarterly

5.5p per share New Dividend Guidance for 2025¹

YIELD

4.6%

SHARE PRICE

116.00p

NAV PER SHARE

134.05p

NET ASSETS

£142.7m

1. This is a target only and does not constitute, nor should it be interpreted as, a profit forecast.

Why Middlefield Canadian Income PCC?

Who is this fund for?

This Fund is for long-term investors seeking dividends and capital appreciation from a diversified portfolio of stable, profitable businesses domiciled primarily in Canada.

Reasons to buy

Unique

The UK’s only listed Canadian equity fund focused on high income – admitted to the FTSE UK All-Share Index in 2011.

Proven

Outperformance over the period since inception in 2006. The Fund’s total return for 2024 was 20.6 per cent versus the benchmark total return of 7.6 per cent.

Diversification

UK investors are underexposed to Canadian equities – Canada is one of the largest investable economies in the developed world.

High Income

Canadian equities offer a higher yield compared to other developed markets. MCT has consistently paid dividends in excess of 5p per share per annum since 2017 and increased its dividend in 2023, 2024 and 2025.

Stability

Canada is a member of the G7 and offers one of the most stable political and financial systems in the world.

Governance

Experienced Board of Directors with an independent majority, re-elected annually by shareholders to protect their interests.

A member of the Association of Investment Companies

Further details about the Company, including the latest annual and half yearly financial reports, fact sheets and stock exchange announcements, are available on the website at www.middlefield.co.uk/mcit.htm

Contents

Strategic Report

Key Information 4

Historical Performance 5

Chairman’s Statement 6

Investment Manager’s Report 11

Top Holdings 13

ESG Policy 16

Business Model 22

Biographies 26

Corporate Information 29

Report of the Directors 36

Corporate Report

Statement of Directors’ Responsibilities 40

Directors’ Remuneration Report 41

Corporate Governance Statement 43

Report of the Audit Committee 48

General Shareholder Information 51

General Data Key Investor Document and Related Data 52

Independent Auditor’s Report on the Fund 53

Financial Statements

Statement of Financial Position of the Fund 60

Statement of Comprehensive Income of the Fund 61

Statement of Changes in Redeemable Participating Preference Shareholders’ Equity of the Fund 62

Statement of Cash Flows of the Fund 63

Notes to the Financial Statements of the Fund 64

Independent Auditor’s Report on the Company 81

Statement of Financial Position of the Company 84

Notes to the Financial Statements of the Company 85

Definitions 86

Alternative Performance Measures 87

Key Information

This Fund invests in larger capitalisation Canadian and U.S. high yield equities with a focus on companies that pay and grow dividends.

Exposure to Key Canadian Themes & Industries

Canadian companies are amongst the world leaders across the real estate, financial and energy and power sectors.

Real Estate

Canada has had the highest population growth rate in the developed world. Immigration tailwinds and a highly educated workforce are expected to support ongoing demand for real estate in Canada. Middlefield is one of the top real estate investors in Canada with over 40 years of experience and $450M+ in AUM across real estate strategies.

Financials

One of the world’s most sophisticated and well-capitalised banking systems, Canada’s banks are well-positioned to consistently grow their dividends over time. Canadian financials have historically demonstrated less volatility than peers during periods of market uncertainty.

Energy and Power

North American energy is expected to play a vital role in energy security and the energy transition over the coming decades. Its domestic power market benefits from an abundance of renewable energy sources and robust demand for electricity driven by immigration, growing corporate demand, and improving global accessibility.

Key Data as at 31 Dec 2024

Historical Performance

As at 31 December 2024

Performance Since Inception to 31 December 2024

As at 31 December 2024

Notes:

1. Net asset value total returns (in Sterling, net of applicable withholding taxes, fees, and including the reinvestment of dividends).

2. The Fund’s benchmark, the S&P/TSX Composite High Dividend Index (“Benchmark”), has been currency adjusted to reflect the Canadian Dollar (“CAD”) returns from inception to October 2011 (while the Fund was CAD hedged) and Sterling (“GBP”) returns thereafter.

3. Prior to 31 October 2024, the Fund’s Benchmark as well as the S&P/TSX Composite Index, were calculated gross of withholding tax. Beginning 31 October 2024, the Benchmark and the S&P/TSX Composite Index are calculated net of a 15% withholding tax and all period returns have been restated on this basis.

Recent Performance	1 Mth	3 Mth	6 Mth	YTD	1 Year
Share Price	-10.8%	3.6%	15.3%	20.6%	20.6%
NAV	-4.2%	2.6%	12.9%	15.1%	15.1%
Benchmark	-4.7%	1.1%	7.7%	7.6%	7.6%
S&P/TSX Composite	-4.5%	4.2%	9.9%	13.5%	13.5%

Long-Term Performance	3 Year annualised	5 year annualised	7 Year annualised	10 year annualised	Since Inception annualised¹
Share Price	4.3%	8.2%	7.2%	6.7%	6.8%
NAV	3.3%	7.2%	6.8%	7.4%	7.2%
Benchmark	5.2%	7.9%	6.9%	7.1%	6.1%
S&P/TSX Composite	6.4%	9.8%	8.3%	8.4%	6.4%

Long-Term Performance	3 Year cumulative	5 year cumulative	7 Year cumulative	10 year cumulative	Since Inception cumulative¹
Share Price	13.5%	48.3%	62.8%	90.8%	239.0%
NAV	10.2%	41.9%	58.1%	104.1%	262.7%
Benchmark	16.4%	46.3%	59.2%	97.6%	199.1%
S&P/TSX Composite	20.5%	59.3%	74.6%	124.4%	215.0%

Sources: Middlefield, Bloomberg. As at 31 December 2024.

Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. All price information is indicative only.

Total returns including the reinvestment of dividends for all returns. Fund returns are net of fees.

Composite of monthly total returns for the S&P/TSX Income Trust Index from inception to 31 December 2010 and the S&P/TSX Composite High Dividend Index (formerly named the S&P TSX Equity Income Index).

Currency adjusted to reflect CAD$ returns from inception of MCT to Oct 2011 and GBP returns thereafter since MCT was CAD$ hedged from inception to Oct 2011

Prior to 31 October 2024, the Fund’s Benchmark, as well as the S&P/TSX Composite Index, were calculated gross of withholding tax. Beginning 31 October 2024, the Benchmark and the S&P/TSX Composite Index are calculated net of a 15% withholding tax and all period returns have been restated on this basis.

Chairman’s Statement

Michael Phair

Chairman

It is my pleasure to introduce the 2024 Annual Financial Report for Middlefield Canadian Income PCC (“MCT” or the “Company”) and its closed-ended cell known as Middlefield Canadian Income – GBP PC (the “Fund”). The Fund invests primarily in dividend-paying Canadian equities, with the objective of providing shareholders with a high level of dividend as well as capital growth over the longer term.

Investment Performance

The Fund delivered very good relative performance in 2024. MCT generated total returns of 20.6 per cent on its share price and 15.1 per cent on net assets, both of which were higher than the benchmark total return of 7.6 per cent. Financials, Energy, and Utilities were all positive contributors primarily due to sector allocation and stock selection gains. The Investment Manager believes that 2024 represented the early stages of a sustained outperformance following a period of challenging market conditions for the Fund’s core sectors. In January 2025, the Fund’s dividend was increased from 5.3p to 5.5p per share per annum.

Over 2024, the discount to net asset value at which the Fund’s shares traded narrowed from -16.8 per cent at the start of the year to -13.5 per cent at the end. The discount moved to within -6 per cent at the beginning of December 2024 which coincided with the share price increasing to 131.25p, a high point for the year. This increase reflected the buying activity by Saba Capital Management L.P. (“Saba”) which first announced a notifiable holding in the Fund’s shares in April 2024, and which has announced further increases in its holding since such date. Saba’s current total interest in the Fund’s shares (comprising its direct and indirect exposure) is estimated to be 29 per cent. Recent developments regarding Saba are discussed below under “Engagement with Saba”.

Investment Management

The Board has regular contact with the Investment Manager, Middlefield Limited, to discuss portfolio strategy and review its investment approach, gearing and sector allocations. We remain satisfied that the Investment Manager is applying the strategy consistently and professionally and are confident that the Investment Manager’s outlook and the Fund’s corresponding positioning are capable of delivering good performance over time.

Middlefield Limited, the Fund’s Investment Manager, has 45 years of investing experience. The Investment Manager uses an actively managed strategy, allowing it to take advantage of market dislocations across Canada and the U.S. In 2024, Canada was ahead of other developed countries in reducing their policy rates after sustained downward trends in inflation. Meanwhile, the U.S. Federal Reserve’s monetary policy remained restrictive for longer. In light of the high levels of cash flow and dividends that Canadian equities offer, and the valuation discounts at which they trade relative to U.S. companies, the Board remains supportive of the Investment Manager’s decision to be substantially invested in Canadian equities. In Q4 2024, against the backdrop of an improving outlook for the Canadian economy as well as a peaking of 10-year government bond yields in the U.S. and Canada, the Fund increased its exposure in Canadian energy from c. 19 per cent to c. 22 per cent which remains above the benchmark, while Real Estate remains the most overweight sector in the Fund relative to the benchmark.

Shareholder Engagement

Increasing investor interest in the Fund remains one of the Board’s highest priorities. The Board continues to promote the Company through the Investment Manager’s investor relations initiative, which is dedicated to keeping our shareholders well-informed, especially in times of market turmoil. The Investment Manager provides regular updates through commentaries and articles to get their perspectives directly. This content is accessible on the Investment Manager’s website, where it generates regular insights into the portfolio’s outlook and the decision-making process: Middlefield Canadian Income Trust Content. In addition, the Trust remains engaged with Kepler Partners. Kepler Partners continues to introduce the Investment Manager to new investors throughout London and its surrounding regions, while consistently producing research aimed at raising the profile of the Fund. Kepler Partner’ coverage of the Fund can be accessed at: Middlefield Canadian Income Research. The Board also works with Buchanan, a public relations firm tasked with enhancing the Fund’s reputation among retail investors. The Fund’s ongoing press engagements are featured on our website under “Featured Press”. Alternatively, prospective investors can subscribe to email updates on the Fund’s website to be updated regularly: Middlefield Canadian Income Trust | Middlefield Group.

Fund Sector Weights Compared to Benchmark as at 31 December 2024

Sector Allocation	MCT	Benchmark	Over/Underweight
Financials	27.3%	30.0%	-2.7%
Energy	22.4%	15.0%	7.4%
Real Estate	18.5%	4.4%	14.1%
Pipelines	16.9%	15.8%	1.1%
Utilities	9.5%	13.8%	-4.3%
Materials	2.8%	5.4%	-2.6%
Communication Services	2.6%	10.4%	-7.8%
Consumer Discretionary	0.0%	3.0%	-3.0%
Industrials	0.0%	0.8%	-0.8%
Consumer Staples	0.0%	0.8%	-0.8%
Health Care	0.0%	0.7%	-0.7%
Information Technology	0.0%	0.0%	0.0%
Total	100.0%	100.0%

Source: Middlefield, Bloomberg

The background to the Fund’s performance is explained in depth by Mr Dean Orrico in the Investment Manager’s accompanying report.

Engagement with Saba

Since the Fund’s year end, on 10 February 2025 the Fund, together with three other UK-listed closed-end funds, received a requisition notice from Saba, marking the second phase of Saba’s recent activist campaign in the UK-listed closed-end fund sector. The first phase commenced on 18 December 2024 with Saba requisitioning general meetings at seven UK-listed closed-end funds, proposing resolutions (each of which later failed) to remove the current independent directors of those seven funds and replace them with Saba’s own appointees, with a view to also terminating the management contracts and, in due course, replacing the investment managers with Saba.

The requisition notice received by the Fund on 10 February 2025 was for the approval by shareholders of the taking of all necessary steps to implement a scheme or process by which shareholders would become (or have the option to become) shareholders of a UK-listed open-ended investment company (or similar open-ended investment vehicle) implementing a substantially similar strategy to the Fund. Such scheme or process could entail shareholders rolling into an existing or newly established UK-listed open-ended investment company (or similar open-ended investment vehicle), in either case managed by the Fund’s existing investment manager or one of its affiliates.

Following consultation with a number of the Fund’s largest shareholders including Saba, and following constructive discussions with Saba, on 21 February 2025 the Fund announced that Saba had agreed to withdraw its requisition notice for a period of 60 days to enable the Fund and its advisers to formulate proposals that are in the best interests of all shareholders.

Gearing

The Fund reports its gearing relative to net and total assets in its monthly fact sheet. Gearing relative to total assets was consistent throughout 2024. This compares to the Fund’s upper gearing limit of 25 per cent. of its total assets at the time of drawdown. Net gearing, which represents borrowings as a percentage of net assets, is the AIC standard measure of gearing. Net gearing at the start of the year was 17.2 per cent and ended the period on 31 December 2024 at 19.3 per cent.

The cost of borrowing has come down in 2024 due to the Bank of Canada cutting rates by a total of 175 basis points throughout the year. We anticipate further declines in borrowing costs as the BoC is expected to continue its easing cycle in 2025. The Board continues to believe the use of gearing is warranted at prevailing interest rates due to an expected total return that exceeds total borrowing costs. The Board will continue to weigh the benefits of gearing against the costs and monitor the spread between interest expenses and the yield of the portfolio to ensure the use of leverage remains in the best interest of shareholders. On 3 April 2024, the credit facility was amended to replace Banker’s Acceptances with CORRA (Canadian Overnight Repo Rate Average administered and published by the Bank of Canada) loans.

Earnings and Dividends

In light of the excess revenue earnings generated by the Fund this year, together with the prospect of dividend growth from the underlying portfolio, the Board approved a 0.2p increase to the annual dividend target in early 2025 to 5.5p for 2025. This is a target only and should not constitute, nor should it be interpreted as a profit forecast.

Quarterly interim dividends each of 1.325p per share were paid on 31 January 2024, 30 April 2024, 31 July 2024 and 31 October 2024 representing a 1.92 per cent. increase to quarterly payments made in 2023.

Consistent dividend growth is a core consideration for the Fund’s security selection process and factored into the Board’s decision to increase the dividend. The Company’s revenue earnings per share totalled 5.61p for the current year, reflecting a dividend coverage ratio of 1.06. This compares to dividend coverage ratios of 1.07 in 2023 and 1.16 in 2022. The Board regularly reviews the Fund’s dividend coverage and, subject to market conditions as well as the Fund’s earnings, it will continue to consider whether further dividend increases are warranted in the future.

Directors’ Remuneration

For 2024, the directors’ remuneration remained at £36,000 per annum for the chairman of the Board, £32,000 per annum for the chairman of the audit committee and £29,000 per annum for all other directors bar Mr Orrico, who has waived his entitlement for remuneration for acting as a director. The last increase was on 1 July 2023.

Related Party Transactions

The Company’s related parties are its directors and the Investment Manager. There were no related party transactions (as defined in the Listing Rules) during the year under review, nor up to the date of this report. Details of the remuneration paid to the directors and the Investment Manager during the year under review are shown in note 13.

Material Events

Save for the Saba requisition and the Board’s ongoing consideration of future strategic options for the Company following engagement with Saba as referred to above, the Board is not aware of any significant event or transaction which has occurred between 1 January 2025 and the date of publication of this statement which could have a material impact on the financial position of the Fund.

Company and Fund Annual General Meetings

At each of the Company and Fund Annual General Meetings held on 13 June 2024, all resolutions, relating to both ordinary business and special business were duly passed.

Board Composition and Succession Planning

The Board frequently reviews its succession planning strategy and has taken multiple steps in recent years to refresh its composition. We are pleased with the significant progress made to ensure the highest standards of good corporate governance. These steps include the appointment of four new nonexecutive directors over the past five years: Mr Michael Phair (on 13 June 2019), Ms Kate Anderson (on 12 April 2021), Ms Janine Fraser (on 13 September 2022) and Mr Andrew Zychowski (on 30 June 2023).

The Board currently comprises five nonexecutive directors, of whom four are independent and 40 per cent are female, including the senior independent director.

Contact

Shareholders can write to the Company at its registered office or by email to the Secretary at middlefield.cosec@ JTCGroup.com.

Principal Risks and Uncertainties

Trade policy uncertainty will remain a persistent overhang in the coming months, affecting business confidence, capital investment, and supply chain planning across North America. With the looming USMCA renegotiation deadline and ongoing discussions around tariffs, businesses face heightened risks when making strategic decisions. Companies reliant on cross-border trade may hesitate to expand operations, allocate capital, or engage in M&A, given the potential for new trade barriers and shifting regulatory frameworks. This uncertainty could lead to reduced investment and prolonged supply chain inefficiencies, ultimately weighing on economic growth and corporate earnings.

Additionally, although discussions to date between the Board and Saba have been constructive, uncertainty remains over how the Company will proceed going forwards. The Board remains mindful of the need to act at all times in the best interests of shareholders as a whole and wishes to avoid future engagement in costly and time-consuming activist shareholder campaigns.

Despite inflation moderating in 2024, the risk of an upside surprise in inflation remains a key concern. Stickier inflation could erode consumer purchasing power and increase the cost of borrowing, stifling economic activity. Persistently high inflation could delay further rate cuts from central banks, which could exacerbate financial stress, leading to higher delinquency rates and weaker household consumption.

The combination of expanding fiscal policies and easing monetary conditions could further strain government balance sheets in 2025. Canada and the US continue to run large fiscal deficits, with rising debt levels fuelling concerns about long-term sustainability. Increased government borrowing costs, especially in a higher-for-longer rate environment, could lead to investors demanding higher risk premiums and increased volatility in bond markets and sovereign credit ratings.

Geopolitical concerns in 2024 centred on the wars in Ukraine and the Middle East, trade policy between the US and its trading partners, and a change in leadership in Canada and U.S. Although there are efforts to reach a ceasefire in both Ukraine and Israel, these conflicts all have the potential to disrupt global trade routes, commodity prices, and investor sentiment. The risk of further escalation could lead to supply shocks in energy markets, driving up commodity prices and putting renewed pressure on inflation. In addition, strained US-China relations – particularly over trade, technology and Taiwan – could introduce market volatility, affecting global supply chains and investment flows.

Managing Risks

The Board places significant emphasis on the Company’s risk assessment and the management of substantial risks. The Board prioritises this aspect, guided by its evaluation of the risks inherent in the Company’s operations. It oversees the controls implemented by the Board, the Investment Manager and other service providers. These evaluations and oversight activities are documented in the Company’s business risk matrix assessment, which remains an effective instrument for identifying and tracking primary risks.

The directors consider the principal risks of the Company to be those risks, or a combination thereof, that may materially threaten the Company’s ability to meet its investment objectives, its solvency, liquidity or viability. In assessing the principal risks, the directors consider the Company’s exposure to and likelihood of factors that they believe would result in significant erosion of value, such as the possibility of a recession, the ability of Canada to diversify its economy away from natural resources, ongoing geopolitical tensions, the impact of climate change risk on investee companies, foreign exchange rates and the impact of higher interest rates on the Company and investor sentiment.

At the time of this report, trade policy uncertainty, interest rates, and geopolitical tensions continue to have an impact on markets at both macro and micro levels. Growing geopolitical tensions can increase the risk of supply chain shocks and spikes in commodity prices. While the long-term severity and the impact on the Company’s principal risks and viability cannot currently be predicted with any accuracy, it is expected that a prolonged war in the Middle East would have detrimental effects on market sentiment, which could affect the Company’s asset values.

Outlook

Canada is well-positioned for economic resilience and market outperformance, supported by a lower rate environment, strong corporate fundamentals, and favourable structural tailwinds across key sectors. 2024 served as a strong base for the Fund’s core sector exposures, and we expect to build on that momentum. Canadian equities continue to offer attractive valuations, robust earnings growth, and compelling risk-adjusted returns relative to global peers. MCT remains strategically positioned to capitalise on these trends, with its core exposure in financials, real estate, energy, pipelines, and utilities – sectors that are well insulated from external trade policy uncertainty and provide strong income generation, stability, and long-term growth potential. The Fund does not hold significant exposure to industries most vulnerable to tariffs, such as manufacturing, autos, and materials, reducing its reliance on unpredictable trade negotiations.

Despite having similar expected earnings growth over the next two years, Canadian equities continue to trade at steep valuation discounts to US stocks. With a circa 4.5 per cent dividend yield, the Fund also provides a stable and growing stream of income to investors in the form of quarterly distributions. We believe the current valuation discount embedded in Canadian equities offers a compelling entry point into high-quality Canadian companies. We continue to advocate that UK investors seeking North American equity exposure should allocate capital to Canada.

We look forward to an ongoing dialogue with shareholders in order to inform our decision making process going forward and to enable us to continue to act in the best interests of all shareholders.

Michael Phair

Chairman

24 March 2025

Middlefield Group is a private and independent asset manager focused on equity income investment strategies. Located in Toronto, Canada, the company oversees a suite of funds, many of which have been recognised for excellence in various investment categories. Middlefield specialises in managing diversified equity income strategies for UK and Canadian investors with a particular focus on delivering stable distributions and capital appreciation over the long term.

Investment Manager’s Report

Dean Orrico

2024 was an exceptional year for MCT unitholders, as we look to build on the momentum for continued growth into 2025. Despite both the TSX Composite and S&P 500 closing near all-time highs, many areas of the market, such as dividend payers and small-caps, did not meaningfully participate in the 2024 market rally. Technology and communication services stocks led to the upside while cyclical and value sectors lagged. In British Pounds, shares in the Fund generated a total return of 20.6 per cent and a NAV total return of 15.1 per cent. In local currency, the S&P 500, NASDAQ Composite, and the TSX Composite returned 25 per cent, 30 per cent and 22 per cent, respectively. The TSX lagged the S&P 500 by 3 per cent in 2024, due to its lower exposure to technology stocks and greater weighting to cyclical and value sectors. The Fund’s benchmark is more concentrated in higher-yielding dividend stocks and returned 9.6 per cent, lagging the TSX by nearly 12 per cent. Price-to-earnings multiples remain depressed for the TSX, resulting in a 4x multiple discount relative to the S&P 500.

We are encouraged by several trends that emerged in mid-2024. Firstly, the Bank of Canada (BoC) began its first rate-cutting cycle in 4 years through a series of rate cuts totalling 175 basis points. Meanwhile, 10-year bond yields fell by more than 100 basis points from their 2023 highs as inflation concerns abated. Second, market breadth improved as companies and sectors that lagged throughout 2023 and H1’2024 benefitted from a relief rally. We believe this market broadening could represent the early stages of a prolonged recovery in dividend-paying stocks that should continue throughout 2025.

In British Pounds, the Fund’s net asset value generated a total return of 15.1 per cent. Stock selection within the energy sector was the biggest contributor to performance in 2024 following a difficult 2023 period, with Enbridge and TC Energy among the Top 5 biggest contributors to performance. Utilities were the next biggest contributor, with Capital Power generating a total return of 77.9 per cent due to its strategy to supply power for upcoming AI data centres in Canada. Capital Power remains a large overweight position relative to the benchmark and has been a consistent Top 10 holding in the Fund.

President Trump’s second term has introduced significant trade policy uncertainty. Despite all the trade noise, Canada’s economy remains on sound footing and is compelling for investors seeking attractive valuations and higher levels of income. While the scale and scope of potential US tariffs remain unpredictable, the Fund is well-positioned due to its diversification across resilient, high-quality sectors. With a focus on Canadian financials, pipelines, and REITs, the Fund is largely insulated from more tariff-targeted manufacturing industries, such as steel, aluminium, autos, and lumber. Similar to President Trump’s first term, we believe rational economic interests will prevail and the USMCA trade agreement will ultimately be renegotiated with minimal impact on Canadian equities. The U.S. represents over 75 per cent of Canadian exports and is an extremely important end-market for these sectors. US, Canada, and Mexico share over $1.5 trillion in annual trade, supporting 17+ million jobs across the three economies. This trilateral trade flow is one of the largest in the world, underscoring the significance of the USMCA agreement in maintaining economic stability in North America. Given this deep integration, renegotiations will likely aim to preserve trade stability rather than disrupt it.

The Canadian federal election which has been called for 28 April 2025, will be a key event to watch with potential positive implications for economic policy, trade, and capital markets. A Canada-first mentality is gaining traction, emphasizing deregulation, pro-business policies, and strengthening domestic industries. A more conservative, business-friendly government could lead to increased investment in key sectors such as energy infrastructure, along with streamlined regulatory processes to encourage economic growth. In addition, diversifying trade partnerships beyond the US could present significant opportunities for Canadian pipeline and energy companies. These developments could also lead to increased foreign investment in Canada, strengthening the Canadian dollar. However, trade policy negotiations will bring uncertainty in the markets, particularly if US protectionist policies weigh on exports.

Our base assumption remains that Canadian inflation will continue trending lower throughout 2025, supported by slowing immigration, easing supply chain pressures, and a more accommodative monetary policy stance from central banks. Over the past year, both the BoC and the Fed have seen meaningful progress in reducing inflation which has prompted rate cuts. However, deregulation, increased fiscal spending, and tax relief in the US could reintroduce inflationary pressures by stimulating aggregate demand, business investment, and consumer spending. While these policies are beneficial for long-term growth, they could delay or slow the pace of rate cuts if inflation proves to be stickier than expected. The balance between continued disinflation and the potential for reaccelerating inflation will be a key theme for policymakers in the year ahead.

We remain constructive on the Canadian real estate sector in 2025. Although there was a strong rally in REIT unit prices during Q3, we saw a reversal after 10-year yields began climbing again. Investor sentiment for the broader real estate sector is inflecting and we are now seeing foreign buyers of Canadian REITs after a prolonged disconnect between fundamentals and valuations. With bond yields declining and central banks cutting rates further, we believe certain REITs are extremely well-positioned to outperform. Canadian REITs continue trading at an approximate 25 per cent discount to NAV.

We expect quality REITs that generate stable and growing cash flows to narrow this discount throughout 2025. For these reasons, real estate remains the Fund’s largest active sector weight relative to the Benchmark. The Fund’s core real estate exposure areas include necessity-based retail, apartments, industrial, and seniors housing.

Energy was among the Fund’s biggest contributors to performance in 2024 and remains a high-conviction investment theme for 2025. Energy represents 22 per cent of the portfolio, which outweighs the benchmark by 7.4 per cent. As geopolitical tensions mount, energy security has become a paramount issue for many countries. Canada’s oil and natural gas reserves rank in the top five globally, positioning the Canadian energy sector for consistent growth for decades. The recently completed Trans Mountain Expansion project will help unlock this growth potential by increasing capacity for crude oil transportation by an additional 590,000 barrels per day. In addition, LNG Canada, the largest private infrastructure project in Canada’s history, will become operational later this year. With an export capacity of 1.8 Bcf/d, LNG Canada will provide Canadian gas producers with a material boost to production egress. These large infrastructure projects are expected to stimulate significant investments from energy producers as well as midstream companies that will need to add necessary processing and handling capabilities.

Financials represented 28 per cent of the Fund and remained the largest sector exposure in 2024. The decision stemmed from our growing confidence in the economic landscape both in Canada and the U.S, increasing corporate and investor sentiment as well as a pickup in capital markets activity. As the Bank of Canada began cutting rates mid-2024, Canadian banks rallied in Q3 after posting solid earnings results and improved sentiment. The banks remain well capitalised above regulatory minimums and are now strategically deploying capital to support organic growth. Credit concerns have been abating as we are past the peak in provisions for credit losses. The banks have prudently been building their capital reserves to ensure they remain well-equipped in the event of widespread credit defaults. With bond yields having fallen approximately 80 basis points from their April 2024 peak, and strengthening underwriting standards, we have become less concerned by this risk but continue to monitor credit quality closely. The Fund has been diversifying its exposure to financials by adding insurance companies and asset managers to the portfolio. These positions will expose the Fund to different revenue streams and geographies. Our highest weighted names remain Bank of Montreal, Royal Bank of Canada, and CIBC, all of which have well-capitalised balance sheets and fully covered dividends.

The Fund had 9.5 per cent of the portfolio allocated to utilities at the end of 2024, below the Benchmark weight of 13.8 per cent. This underweight positioning was additive to performance. Despite its traditionally defensive characteristics, the sector lagged the TSX last year by 9.6 percentage points, with a total return of 8.6 per cent (local currency). Independent power producers did most of the heavy lifting, while regulated utilities and renewables significantly lagged. We expect the rest of the sector to re-rate over time as interest rates decline. The surging demand for electricity to power new data centres is a positive trend and we remain bullish on the sector’s long-term growth prospects. Our preferred picks in the sector include AltaGas, Capital Power, and Brookfield Renewables.

Top Holdings

Top Holdings as at 31 December 2024

Company	Sector	% of Equities
Tourmaline Oil Tourmaline is Canada’s largest natural gas producer and one of North America’s top suppliers of low-cost energy. The company operates high quality assets in the Montney and Deep Basin formations, leveraging its scale and strong balance sheet to maintain industry leadership. Tourmaline has also built a solid track record of dividend growth while paying out frequent special dividends over the last few years driven by their strong cash flow generation and commitment to growing shareholder returns.	Energy	4.8%
Enbridge Inc. Enbridge is one of the largest energy infrastructure companies in North America with an extensive delivery network of crude oil, natural gas, natural gas liquids and renewable energy. The company also provides gas utility services in Ontario, Quebec, and New Brunswick. It is actively investing in low carbon technologies such as solar, wind and hydroelectric power generation facilities. Enbridge’s goal is to achieve net-zero emissions by 2050 and reduce its greenhouse gas emissions by 30% by 2025.	Pipelines	4.7%
Bank of Montreal Bank of Montreal, which was founded in 1817, has grown to be Canada’s fourth largest bank. For over two centuries, BMO has maintained a consistent record of dividend payments. It has a well-established commercial banking business that it plans to grow through new product offerings and superior customer experience. BMO conducts its business in the US through its subsidiary, BMO Harris Bank which has over 500 branches.	Financials	3.9%
Canadian Natural Resource Ltd. Canadian Natural Resource is one of the largest independent producers of oil and natural gas in Canada. The company is focused on maximising shareholder value through a combination of organic growth initiatives, dividend payments and share buybacks. It has grown its dividend by approximately 23% per annum over the past 5 years and has never cut its dividend.	Energy	3.8%
Royal Bank of Canada Established in 1864, RBC stands as Canada’s largest bank by market capitalization. With a robust presence globally, RBC excels in providing diverse financial products and services through branches, ATMs, and cutting-edge online platforms. Renowned for its customer-centric approach, RBC’s strategic focus on the Capital Markets division enhances its standing, making the bank a key player in international finance.	Financials	3.7%

TC Energy TC Energy is a leading North American energy infrastructure company, operating natural gas, liquids pipelines, and power generation assets. It owns and operates over 93,300 km of natural gas pipelines across Canada, the U.S, and Mexico, supplying ~25% of North America’s natural gas demand. In addition, it operates power generation assets, including nuclear and renewable energy, contributing to a diversified portfolio. The company generates revenue through long-term take-or-pay contracted agreements which provide stable cash flows with minimal commodity price exposure.	Pipelines	3.5%
CIBC CIBC is one of Canada’s Big Six banks, providing a range of personal, business, and institutional banking services. The bank operates across four key segments, including Personal Banking, Commercial Banking & Wealth Management, as well as Capital Markets. The bank boasts a significant presence in Canada and U.S banking, with a growing U.S commercial lending business.	Financials	3.4%
AGF Management AGF Management is a global asset management firm, providing investment solutions across mutual funds, ETFs, and alternative investments. In recent years, it has expanded into private credit and alternatives, positioning itself for higher-margin growth. As funds flow out of savings accounts and back into equity markets post-rate cutting cycle, the active asset management industry will face meaningful tailwinds.	Financials	3.4%
Manulife Financial Founded in 1887, Manulife Financial is a leading insurance provider in Canada’s financial sector. Offering a comprehensive range of financial solutions, the company operates through a widespread network and digital platforms. With a focus on insurance, wealth management, and investments, Manulife’s commitment to innovation and customer satisfaction cements its prominent position in the global financial landscape.	Financials	3.4%
Pembina Pipelines Corp. Pembina is a well-established and reputable transportation and midstream service provider with over 65 years of operational history. Its assets are diversified across the hydrocarbon value chain, including pipelines, gathering & processing, and NGL midstream operations in Canada and the US. The company is actively investing in low-carbon and sustainability solutions such as carbon capture and storage to offset greenhouse gas emissions.	Pipelines	3.1%

Outlook

Global markets face heightened uncertainty, driven by elevated geopolitical risks, shifting monetary policy, and trade tensions. Despite these challenges, Canada remains well-positioned for outperformance in 2025, underpinned by attractive valuations, strong fundamentals, and structural tailwinds in key sectors, including energy, real estate, and financials. The TSX Composite continues to trade at a 7 turns discount to the S&P 500, representing an attractive entry point for investors seeking dividend growth, capital discipline and resilient earnings.

While trade policies remain unpredictable, the Fund is well-diversified across resilient, high-quality, service-based sectors that are less exposed to tariffs. Canada is benefitting from deregulation, a more pro-business environment, and a shift in fund flows towards value and cyclical sectors as markets continue to broaden. The AI-driven expansion will require vast energy infrastructure to support data centre growth, creating significant opportunities for pipeline and utility companies – sectors where the Fund has substantial exposure.

Canadian corporations continue to prioritize shareholder returns, with record dividend payouts and share buybacks, a trend that is expected to persist. The Fund remains focused on high-quality companies with strong free cash flow generation and ability to grow their dividends. MCT’s portfolio emphasises high dividend paying stocks which have a long track record of consistently increasing dividends. Over the past five years, dividends received by the Fund on its portfolio have increased by 8.2 per cent per annum, exceeding the 7.5 per cent per annum growth rate for the Benchmark.

Middlefield Limited

Date 24 March 2025

ESG

Environment, Social and Governance (“ESG”) Policy and Stewardship Principles: ESG Policy

As Investment Manager, Middlefield Limited (“Middlefield”) has a duty to maximise investment returns for the shareholders of the Fund without undue risk of loss. Middlefield does this within the investment limits of the Fund’s investment mandate. Although the Fund is not an ESG-focused or sustainable fund, Middlefield incorporates ESG considerations into its investment process to aid decision making, identify potential risks and opportunities and to enhance long-term, risk-adjusted returns. Stephen Erlichman, one of the foremost experts on governance in Canada, serves as Chair, ESG for Middlefield to augment its ESG capabilities and processes.

It is Middlefield’s responsibility to employ a disciplined investment process that seeks to identify attractive investment opportunities and evaluate material risks that could impact portfolio returns. Middlefield believes that ESG factors have become an important component of a thorough investment analysis and that the integration of ESG factors will result in a more comprehensive understanding of a company’s strategy, culture and sustainability. Consistent with these objectives, Middlefield integrates ESG considerations into its investment process and these considerations are significant factors in selecting portfolio companies for its ESG-focused mandates. Our current ESG integration process includes the following:

1. Middlefield incorporates ESG scores and other ESG data in its multi-disciplined investment process to evaluate investments. Its methodology includes a qualitative review and assignment of ESG scores to individual holdings. Each company is analysed on an absolute basis and measured relative to its peers. The ESG scores and other ESG data are not the sole factors that govern its investment decisions, however, but rather constitute part of the information it reviews and considers alongside its fundamental, quantitative and qualitative research.

2. The ESG scoring framework considers the average ESG scores from several reputable third-party data providers. In addition, it cross-references potential investments with the constituents of relevant ESG indices to assess their eligibility in ESG-focused mandates. The data providers it has chosen to incorporate into its ESG analysis currently are Sustainalytics, S&P, Bloomberg and Refinitiv.

3. ESG considerations also are integrated into our investment process by, among other things:

• reviewing companies’ public disclosure, including annual reports, proxy circulars, and, if available, sustainability or ESG reports;

conducting research and analysis on companies’ ESG policies and practices;

obtaining third party research on companies;

engaging with companies, including from time to time having discussions with management teams (both before purchasing shares for the portfolios and while our portfolios own such shares) on topics such as what initiatives and strategies have been put in place by the companies to deal with ESG considerations material to such companies; and

monitoring shareholder meetings and voting proxies.

Middlefield’s approach to ESG integration may evolve over time as more ESG and sustainability research and data become available.

In addition to Middlefield’s integration of ESG considerations into its investment process Middlefield has adopted Stewardship Principles and activities which are complementary to its ESG integration process.

Middlefield’s Stewardship Principles

Middlefield, as a Canadian asset manager, understands it has the responsibility to be an effective steward of the assets it manages for its clients in order to enhance the value of those assets for the benefit of its clients. The Canadian Coalition for Good Governance (“CCGG”) has published a set of seven stewardship principles which have become recognised as Canada’s stewardship code for institutional asset owners and asset managers.

Middlefield believes that CCGG’s stewardship principles should be tailored for asset managers depending on various factors, such as the size of the asset manager and the type of assets managed. Set out below are CCGG’s seven stewardship principles and a description of how Middlefield, as an independent Canadian asset manager whose predominant assets are public and private investment funds that invest in Canadian and international equities, carries out or intends to carry out such principles.

Principle 1.

Develop an approach to stewardship: Institutional investors should develop, implement and disclose their approach to stewardship and how they meet their stewardship responsibilities.

Middlefield integrates stewardship into its investment process. Such integration includes:

a procedure for voting proxies (see Principle 3);

monitoring companies (see Principle 2);

engaging with companies (see Principle 4);

• outsourcing stewardship activities (by, inter alia, utilising a proxy advisory firm to assist in monitoring companies and voting proxies);

reporting to its clients (as required by law); and

managing potential conflicts of interest (via Middlefield’s Independent Review Committee mandated by National Instrument 81-107, as well as Middlefield’s Code of Conduct).

Principle 2.

Monitor companies: Institutional investors should monitor the companies in which they invest.

Middlefield monitors the companies in which it invests, including as follows:

it reviews companies’ public disclosures, including annual reports and proxy circulars;

it conducts research and analysis on companies;

it obtains third party research on companies;

it engages with companies (see Principle 4); and

it monitors formal shareholder meetings and, if there is a particularly important matter and it believes it is practical and appropriate to do so, it attends formal shareholder meetings.

Principle 3.

Report on voting activities: Institutional investors should adopt and publicly disclose their proxy voting guidelines and how they exercise voting rights.

Middlefield exercises voting rights attached to the securities held by the funds it manages as follows:

• Middlefield uses the following proxy voting guidelines:

proxies will be voted in a manner that seeks to enhance the long-term sustainable value of the funds it manages; and

proxies will be voted in a manner consistent with leading Canadian and international corporate governance practices.

• on routine matters, Middlefield generally supports management and the board unless there are unusual circumstances; and

Middlefield uses the services of a proxy advisory firm to assist in voting proxies. Middlefield assesses the voting recommendations of the proxy advisory firm but Middlefield also monitors leading Canadian and international corporate governance practices. Middlefield does not automatically follow the recommendations of the proxy advisory firm, but in most cases, it votes as recommended. Middlefield retains ultimate responsibility for all proxy voting decisions.

In addition, the public funds managed by Middlefield follow the proxy voting requirements of Part 10 of National Instrument 81-106 in regard to establishing policies and procedures for proxy voting and in regard to preparing and disclosing their proxy voting records.

Principle 4.

Engage with companies: Institutional investors should engage with portfolio companies.

Middlefield engages with portfolio companies as follows:

Middlefield engages with management of portfolio companies regularly, both before shares are purchased for the funds it manages and also while its funds own shares of the portfolio companies; and

When Middlefield believes it is warranted, it may escalate engagement activities by engaging with directors, by voting against or withholding votes from directors or by voting against companies’ “say on pay” resolutions.

Principle 5.

Collaborate with other institutional investors: Institutional investors should collaborate with other institutional investors where appropriate.

Middlefield collaborates with other institutional investors through investor associations to which Middlefield belongs.

Principle 6.

Work with policy makers: Institutional investors should engage with regulators and other policy makers where appropriate.

Middlefield’s professional advisors, such as the law firms and accounting firms it retains, assist to keep it up to date on developments that are material to it as an asset manager. It utilises its professional advisors, and it also relies on the organisations to which it belongs, to engage on its behalf with regulators and policy makers where appropriate.

Principle 7.

Focus on long-term sustainable value: Institutional investors should focus on promoting the creation of long-term sustainable value.

Middlefield focuses on a portfolio company’s long-term success and sustainable value creation, including as follows:

Middlefield focuses on a company’s management and strategy, as well as its risks (both company specific and systemic); and

Middlefield considers environmental, social and governance factors that are relevant to a company and integrates such factors into its investment activities.

ESG Case Studies

Canadian Imperial Bank (3.41% of the portfolio as at 31 December 2024)

Summary:

Canadian Imperial Bank of Commerce (CIBC) is Canada’s 5^th largest bank and serves retail, commercial, wealth management, and capital market clients. The company’s enterprise-wide regulatory program aims to enhance alignment with market practice and regulatory requirements. The company has received various accolades and recognition for its sustainability initiatives and commitment to sustainability.

Highlights:

• Ranked #3 in North American Project Financial Renewables by IJ Global

• Built a leading renewables franchise focused on providing clients with expert guidance and access to the required capital

• CIBC Foundation continues to demonstrate purpose in action and supporting causes that are important to clients and communities

Top ESG Issues:

• Strengthening cybersecurity and anti-money laundering standards remain a key issue for the financial services sector in North America

• Implementing the right policies and procedures to address current and emerging ESG priorities, including artificial intelligence, financed emissions, and sustainable finance

ESG Ranking Relative to the Fund’s Benchmark:

Sources: S&P, Sustainalytics, Bloomberg.

Choice Properties REIT (2.22% of the portfolio as at 31 December 2024)

Summary:

Choice Properties REIT invests in necessity-based retail, commercial, industrial, mixed-use, and residential properties across Canada. The Choice Cares program aims to develop a strong culture of philanthropy, diversity, equity, and inclusion. Choice was also named one of Greater Toronto’s Top Employers (2023 and 2024) in recognition of their mentorship and benefit enhancement programs.

Highlights:

• Achieved the first CAGBC Zero Carbon Building Design certification to be awarded to a retail property

• Maintained GRESB 4-star rating for second year (scored 82 on a 100-point scale), and continued to receive “low” Sustainalytics ESG risk rating

• Developed a Social Impact Framework that aligns with their core business and promotes local economic development and social cohesion at the neighbourhood level

Top ESG Issues:

• Addressing affordability needs by developing mixed-use and community-driven projects

• Implementing green building standards as well as reducing energy and water consumption across its real estate portfolio

ESG Ranking Relative to the Fund’s Benchmark:

Sources: S&P, Sustainalytics, Bloomberg.

Business Model

The Company’s Status

Middlefield Canadian Income – GBP PC is a protected cell of Middlefield Canadian Income PCC, a Jersey-incorporated protected cell company.

The Fund is a closed-ended fund, whose shares have been admitted to the Official List of the FCA and to trading on the London Stock Exchange’s Main Market for listed securities. The Fund is regulated in Jersey by the Jersey Financial Services Commission (“JFSC”).

JTC Fund Solutions (Jersey) Limited acts as the Company’s secretary and administrator. The Fund’s NAV is calculated using the bid prices of the securities held within its portfolio. The Company publishes the NAV of a share in the Fund on a daily basis.

Investment Objective and Policy²

The Fund seeks to provide shareholders with a high level of dividends as well as capital growth over the longer term. The Fund intends to pay dividends on a quarterly basis each year.

Investment Portfolio

The Fund seeks to achieve its investment objective by investing predominantly in the securities of companies and REITs domiciled in Canada and listed on a Canadian Stock Exchange that the Investment Manager believes will provide an attractive level of distributions, together with the prospect for capital growth. It is expected that the Fund’s portfolio will generally comprise between 35 and 70 investments.

The Fund may also hold cash or cash equivalents.

The Fund may utilise derivative instruments including index-linked notes, contracts for differences, covered options and other equity-related derivative instruments for the purposes of efficient portfolio management.

The Fund will at all times invest and manage its assets in a manner which is consistent with the objective of spreading investment risk.

Investment restrictions

The Fund will not at the time of making an investment:

have more than 10 per cent. of the value of its portfolio assets invested in the securities of any single issuer; or

have more than 50 per cent. of the value of its portfolio assets comprised of its ten largest security investments by value; or

have more than 40 per cent. of the value of its portfolio assets invested in securities listed on a recognised stock exchange outside Canada; or

(d) have more than 10 per cent. of the value of its portfolio assets invested in securities listed on a recognised stock exchange outside Canada and the United States; or

(e) have more than 10 per cent. of the value of its portfolio assets invested in unquoted securities; or

(f) purchase securities on margin or make short sales of securities or maintain short positions in excess of 10 per cent. of the Fund’s NAV.

Hedging

The Board reserves the right to employ currency hedging but, other than in exceptional circumstances, does not intend to hedge.

Gearing

The Fund has the power to borrow up to 25 per cent. of the value of its total assets at the time of drawdown. In the normal course of events, and subject to Board oversight, the Fund is expected to employ gearing in the range of 0 to 20 per cent. of the value of its total assets in order to enhance returns. Net gearing, which represents net borrowings as a percentage of net assets, is the AIC standard measure of gearing. At year end, the Fund’s net gearing was 19.3 per cent.

Promoting the Company’s Success – Section 172 Statement

The AIC Code requires that the Company should understand the views of the Company’s key stakeholders and describe in the annual report how their interests and the matters set out in section 172 of the UK’s Companies Act 2006 have been considered in Board discussions and decision-making.

The Company has no employees and all of the directors are non-executive, so the Board considers that its key stakeholders are its shareholders, its service providers, society, the government, and regulators.

The Board’s engagement with stakeholders is described in the section “Engagement with Stakeholders” below.

The Board considers that the Company, as an externally-managed investment trust, with no employees, premises, nor manufacturing or other physical operations, therefore has no material, direct impact on the community and the environment. However, the Board considers social, community, environmental and human rights matters to be of significant importance and, in this respect, takes soundings from the Investment Manager as to how these matters are taken into consideration in respect of portfolio construction and its ongoing management. The Investment Manager is tasked with assessing how companies deal with and report on social and environmental risks and issues specific to the industry. It aims to incorporate ESG criteria into the Investment Manager’s processes when making stock selection decisions and promoting ESG disclosure.

The Investment Manager is mindful of the impact which it can have upon shaping the consideration given to ESG matters by the Fund’s investee companies. In addition to considering ESG matters in portfolio construction decisions, the Investment Manager conducts ongoing investee company monitoring, and this engagement process may include voting and communication with management and company board members. Although the Company does not take a controlling stake in its investees, the Board also considers the interests of those stakeholders and oversees the activities of the Investment Manager, as explained in this Section 172 Statement. The Board ascribes to the highest standards of business conduct and has policies in place to ensure compliance with all applicable laws and regulations. In this respect, it also interacts with governmental organisations providing public services for society, and financial services regulators (such as the FCA and JFSC). In addition to monitoring the Company’s compliance with its own obligations, the Management Engagement Committee also monitors compliance by its service providers with their own obligations and; the work of the Management Engagement Committee during the year is explained in more detail later in this report on pages 46 and 47.

The Company has an unlimited life and as described in detail in the Company’s viability statement, the Board considers the prospects of the Company for at least the next three years whenever it considers the Company’s long-term sustainability. All strategic decisions are therefore taken with the long-term success of the Company in mind and the Board takes external advice whenever it considers that such would be beneficial to its decision-making process, primarily from its retained service providers (including legal counsel), but also from other external consultants.

The Board encourages openness and transparency and promotes proactive compliance with new regulations. The Company, through its Investment Manager and Administrator, files Jersey regulatory statistics on a quarterly basis and assists the Administrator in collecting data for provision to the JFSC to conduct a national risk assessment of money laundering and terrorist financing threats to Jersey.

Engagement with Stakeholders

As regards the Board’s engagement with shareholders, all shares in issue rank pari passu, all shareholders are treated equally. and no shareholder receives preferential treatment. When making decisions of relevance to shareholders, the Board considers first and foremost the likely consequences of its decisions in light of its duty to act in the best interests of the Company and shareholders as a whole.

In addition to the regular reporting provided by key service providers, the Board’s primary formal engagement with its service providers is via the Management Engagement Committee, which issues questionnaires to all of its service providers and considers the detailed feedback received on an annual basis, reporting to the Board on its conclusions. The services provided by the key third-party service providers are critical to the ongoing operational performance of the Company. The Board believes that fostering constructive and collaborative relationships with the Company’s service providers will assist in their promotion of the success of the Company for the benefit of all shareholders.

Management

The Company is an Alternative Investment Fund (“AIF”) in accordance with the provisions of the AIFMD. For the purposes of the AIFMD, which was implemented into UK law with effect from 22 July 2013, the Company has been classified as a non-EU AIF managed by a non-EU AIFM. As such, the Company is not subject to the full scope of the AIFMD and therefore does not incur additional costs, such as those incurred in having to appoint a depositary, that would have been applicable had it been deemed to be managed by an EU AIFM.

The Board is responsible for setting the Company’s Investment Objective and Investment Policy, subject to shareholders’ approval of any proposed material changes, and has a schedule of investment matters reserved for the directors’ resolution. The Board has contractually delegated to external agencies the management of the investment portfolio, the custodial services and the day-to-day accounting and secretarial requirements. Each of these contracts is only entered into after proper consideration by the Board of the quality of services being offered.

The Board also receives and considers, together with representatives of the Investment Manager, reports in relation to the operational controls of the Investment Manager, Administrator, Custodian and Registrar. These reviews identified no issues of significance.

The Board meets at least quarterly to review the overall business of the Company and to consider matters specifically reserved for its review. At these meetings, the Board monitors the investment performance of the Fund. The directors also review the Fund’s activities every quarter to ensure that it adheres to the Fund’s investment objective and policy or, if appropriate, to consider changes to that policy. Additional ad hoc reports are received as required and directors have access at all times to the advice and services of the Secretary, which is responsible for guiding the Board on procedures and applicable rules and regulations.

Relationship with the Investment Manager and Performance

The Company has no employees, premises, assets other than financial assets or operations. The Board engages reputable third-party suppliers with established track records to deliver day-to-day operations. The most important of these is the Investment Manager, which is responsible for the management of the Company’s assets in accordance with its investment objective and policy. The Board maintains a close working relationship with the Investment Manager and holds it to account for the smooth running of the Company’s day-to-day business. There is continuous engagement and dialogue between Board meetings, with communication channels remaining open and information, ideas and advice flowing freely between the Board and the Investment Manager.

The Board retains responsibility for decisions over corporate strategy, corporate governance, risk and internal control assessment, determining the overall limits and restrictions of the portfolio and in respect of gearing and asset allocation, investment performance monitoring, dividend policy and setting marketing budgets.

The Investment Manager and Investment Advisor promote the Company with the support of the Corporate Broker and the Board makes additional funds available to support marketing activities aimed at raising the profile of the Company among investors in the UK.

As the Investment Manager holds the overall day-to-day relationship with the Company’s other third-party suppliers, the Board places reliance on the Investment Manager in this regard. The Board is confident that the Investment Manager has developed and maintains good working relationships with all of the Company’s third-party suppliers. To ensure the chosen service providers continue to deliver the expected level of service, the Board receives regular reports from them, evaluates the control environments in place at each service provider and formally assesses their appointment annually.

By doing so, the Board seeks to ensure that the key service providers continue to be appropriately remunerated to deliver the level of service that it demands of them.

The Company has appointed the Investment Manager as its AIFM. The Investment Manager is regulated by the Ontario Securities Commission. The Company has a formal schedule of the areas of decision making reserved for the Board and those over which the Investment Manager has discretion, and it is available for inspection on the Company’s website.

A review of the Investment Manager’s performance is included in the Chairman’s Statement and the Investment Manager’s Report. The Board receives formal reports from the Investment Manager at each of its Board meetings, at which meetings representatives of the Investment Manager are present to answer the Board’s questions.

Such reporting and the ensuing discussions cover all areas within the Investment Manager’s remit, including portfolio performance, portfolio risk, asset allocation and gearing, compliance with the Company’s investment objective and policy and investment restrictions and the outlook for the market and the Company’s prospects, as well as a comparison with the Company’s peer group provided by the Company’s corporate broker. In between meetings, the Investment Manager provides updates to the directors on any material events. The Investment Manager’s performance is assessed on an ongoing basis and includes the Fund’s performance relative to appropriate benchmarks and its peer groups.

The Board and Investment Manager also discuss the marketing and investor relations work performed by the Investment Manager and Investment Advisor, which is an affiliate of the Investment Manager, in each quarterly Board meeting. The Investment Advisor and the Investment Manager are paid an additional fee for investor relations services totalling the lesser of 15 basis points of the market value of the Fund or £200,000 per annum, with the fee to be calculated daily based on the closing market value of the Fund and payable quarterly in arrears, and its performance is measured by reference to an agreed set of metrics.

The Board has delegated voting on matters proposed to the Company by its investees and a report on the Investment Manager’s institutional voting policy for the Company is included in the Directors’ Report. The Board and the Investment Manager also consider social, community, environmental and human rights issues to be important and a report on the Investment Manager’s policies for the Company is also included in the Directors’ Report.

As required by the Listing Rules and recommended by the AIC Code, the following additional information is provided:

During the year under review and up to the date of this report, Middlefield Limited has acted as the Company’s discretionary investment manager. Middlefield International Limited (“the Investment Advisor”) provides investment advisory services to the Company and the Investment Manager. The Company pays an annual fee of 0.70 per cent. of NAV to the Investment Manager to cover its services and those provided to it by the Investment Advisor and the agreement can be terminated by either party on 90 days’ written notice. The Investment Manager and Investment Advisor are also paid an additional fee for investor relations services as previously mentioned and disclosed in note 2u.

Having reviewed the investment management and advisory services provided by the Investment Manager and the Investment Advisor and having regard to the Fund’s investment performance since the Fund’s launch in May 2006, the directors are of the view that the portfolio should remain managed by the Investment Manager for the foreseeable future.

Biographies

As at 31 December 2024, the Board of Directors comprised five non-executive directors, four of whom were independent of the Investment Manager and its affiliates.

Directors

Michael Phair, Chair

Mr. Phair has over 30 years’ investment banking experience at World Bank Group, Rothschild and UBS with a focus on privatisations, telecoms and media. He has lived and worked in Canada, Latin America, the United States, Europe and is a British citizen and resident in London since 1988. He is the Founder, former CEO and currently director of REG (UK) Ltd. which is a leading software solutions provider for counter-party risk management in the UK and global insurance market. He is the Chair of Children and Families Across Borders, a UK-based charity which is part of the International Social Services Network operating in over 130 countries worldwide. A successful private equity investor, Mr. Phair is the former Managing Member of Boston Capital Management (VP) LLC.

Kate Anderson

Ms Anderson, until 1st April 2025, is a managing partner of Voisin Law in Jersey. Ms Anderson intends to take up a new position in the legal profession in Jersey in due course. Her regulatory and funds practice specialises in the legal, regulatory and corporate governance aspects of investment funds, holding companies and managers. In recent years she has joined a number of working groups related to these areas, including the consultation group for the restatement of the Jersey Law of Contract, the working group tasked with updating the Limited Partnership (Jersey) Law to improve its functionality when used with funds and the Jersey Finance Community of Interest group on sustainable investment. Since 2008 Ms Anderson has sat on a number of collective investment fund and fund manager/ general partner boards.

Janine Fraser

Ms. Fraser, through her company, Harmony Business Partnering in Jersey, provides financial expertise and professional training. She is a member of the Institute of Directors and a Fellow of the Association of Chartered Certified Accountants. She also holds a Master’s Degree in E-Commerce from the University of Westminster.

With over a decade of experience as a group financial controller at Triton Partners, an international investment firm, and extensive global experience in various sectors, including retail, merchant banking, travel, manufacturing, and oil, Ms. Fraser brings a wealth of industry knowledge to her role from her previous positions at RBS, Lloyds TSB, Hill Samuel, and British Airways.

Dean Orrico

Mr Orrico, President, Chief Executive Officer of Middlefield Limited and President of Middlefield International Limited, has been employed by the firm since 1996.

Mr Orrico is currently responsible for overseeing the creation and ongoing management of all of Middlefield’s investment funds including mutual funds, Toronto and London Stock Exchange-listed funds and flow-through funds. He graduated with a Bachelor of Commerce degree from the Rotman School of Management (University of Toronto) and holds an MBA from the Schulich School of Business (York University). Mr Orrico is a registered Portfolio Manager.

Mr Orrico has developed expertise in both equity and fixed income securities. Having spent many years managing equity portfolios and meeting with international companies and investors, Mr Orrico has overseen the diversification of Middlefield’s portfolios into global equity income securities.

Andrew Zychowski

Mr Zychowski has over 30 years’ investment banking experience, providing corporate advisory services to investment company boards. Until June 2019, he was the Head of the Investment Companies corporate department at Canaccord Genuity Limited. Prior to that he was the Head of the Investment Companies corporate department at Dresdner Kleinwort. Mr Zychowski is currently a non-executive director of The Ralph Veterinary Referral Centre Plc, a state of the art, multidisciplinary, small animal specialist referral veterinary hospital and Digital 9 Infrastructure plc which is traded on the London Stock Exchange and is in managed wind-down, with the objective to realise all existing assets in the company in an orderly manner. He is a qualified accountant and holds a BSc in Physics from Imperial College.

Corporate Information

Registered Office

28 Esplanade

St Helier

Jersey JE2 3QA

Directors

Michael Phair (Chairman)

Kate Anderson (SID)

Janine Fraser

Dean Orrico

Andrew Zychowski

Service Providers

Administrator and Secretary

JTC Fund Solutions (Jersey) Limited

28 Esplanade

St. Helier

Jersey, JE2 3QA

Investment Advisor

Middlefield International Limited

288 Bishopsgate

London, EC2M 4QP

Investment Manager

Middlefield Limited

Suite 3100

8 Spadina Ave

Toronto, Ontario

Canada, M5V 0S8

Legal Advisers

In Jersey

Carey Olsen Jersey LLP

47 Esplanade

St. Helier

Jersey, JE1 0BD

In Canada

Fasken Martineau DuMoulin LLP

Bay Adelaide Centre

Box 20, Suite 2400

333 Bay Street

Toronto, Ontario

Canada, M5H 2T6

Broker and Corporate Advisor

Investec Bank plc

30 Gresham Street

London, EC2V 7QP

Custodian

RBC Investor Services Trust

155 Wellington Street West 2nd Floor

Toronto, Ontario

Canada, M5V 3L3

Registrar

MUFG Corporate Markets (Jersey) Limited

12 Castle Street

St. Helier

Jersey, JE2 3RT

CREST Agent, UK Paying Agent and Transfer Agent

MUFG Corporate Markets

Central Square

29 Wellington Street

Leeds, LS1 4DL

Independent Auditor

RSM Channel Islands (Audit) Limited

13-14 Esplanade

St Helier

Jersey, JE4 9RJ

Marketing Agent

Kepler Partners LLP

70 Conduit Street

London

W1S 2GF

Financial Calendar

Annual Results

Announced March 2025

Dividend Payment Dates

Last Business Day of January, April, July and October

Annual General Meetings

19 June 2025

Half-Yearly Results

Announced September 2025

Information Sources

For more information about the Company and Fund, visit the website www.middlefield.co.uk

Managing Risks

The Company’s risk assessment and the way in which significant risks are managed is a key focus for the Board. It is guided by the Board’s assessment of the risks arising in the Company’s operations and identification and oversight of the controls exercised by the Board and its delegates, the Investment Manager and other service providers. This information is documented in the Company’s business risk matrix, a valuable tool for identifying and monitoring principal risks.

The directors consider the primary risks facing the Company as those that could substantially jeopardise its capacity to achieve its investment objectives, maintain solvency, liquidity, or viability. In evaluating these key risks, the directors analyse the Company’s vulnerability to various factors that could lead to significant devaluation, such as potential recession, geopolitical instability, commodity price shocks, persistent inflation, supply chain interruptions, the effects of climate risk on investee firms, foreign exchange fluctuations, the consequences of restrictive monetary policies, and the influence of increased interest rates on both the Company and investor sentiment.

At the time of this report, trade policy uncertainty and geopolitical tensions are having an impact at both macro and micro levels. While the long-term severity and the impact on the Company’s principal risks and viability cannot currently be predicted with any accuracy, it is expected that an escalation in ongoing geopolitical conflicts and severe trade restrictions would have detrimental effects.

Strategy Risks

Risk	Mitigants	Change from 2024
Macroeconomic and political environment Unfavourable changes to the macro political and economic environment including global trade tensions, and climate risk pressures, causes the investment objective to become obsolete with reduced investor demand.	The Board has established guidelines to ensure that the investment policy is pursued by the Investment Manager. The Board reviews the Investment Manager’s compliance with the agreed investment restrictions, investment performance and risk against investment objectives and strategy, the portfolio’s risk profile and appropriate strategies employed to mitigate any negative impact of substantial changes in markets.	Trade policy uncertainty
Inflation and Interest Rates Inflation has been trending lower but has the potential to re-accelerate. Central banks have been loosening monetary policy after obtaining evidence that inflation continues trending downwards.	The Investment Manager monitors the portfolio daily and considers the portfolio’s sensitivity to interest rates. The Investment Manager also monitors the borrowing rates and weighs the benefits of gearing against its costs.	Inflation outlook has improved Rates continue their downward trend
Share price discount to NAV Continued trading of the Fund’s share price at a level below that of its NAV reflects a lack of liquidity and/or lack of investor interest in the Fund’s shares. A share price discount to NAV will prevent the Fund from growing via the issue of additional shares and may cause a persistent discount to widen further. The Fund’s level of discount has been significant for a prolonged period and a lack of demand for the Fund’s shares has provided the opportunity for an activist investor to acquire a significant stake in the Fund over a relatively short period of time.	The Board, the Investment Manager and Broker monitor the share price and level of discount on a regular basis. During the year, the Board, the Investment Manager and Broker have spent considerable time engaging with existing and potential shareholders to understand investors’ needs and best interests and to help improve investor interest in the Fund’s shares. This included liaising directly with Saba, as the Fund’s largest shareholder, and holding constructive talks with Saba and existing shareholders to address investor concerns and adapt to shareholder needs. In assessing whether to conduct buybacks, the directors take into account market factors, the discounts of comparable funds and the size of the Fund and the shrinkage in its asset base which would necessarily result from the Fund repurchasing its own shares.	Saba becoming the largest shareholder of the Fund.
Gearing The utilisation of gearing increases the impacts of adverse movements in equity prices or interest rates and may require the Company to liquidate positions at inopportune times in order to maintain the correct levels of gearing.	The Company maintains a prudent level of gearing and the loan to value ratio is monitored on a daily basis as part of the valuation process, so that in falling markets the Company will be able to take proactive steps to reduce gearing to avoid breaching its investment policy and any loan to value covenants.	Unchanged
Shareholder Activism A failure to adapt to changes in the market and investor demand might leave the Company exposed to the risk of further shareholder dissatisfaction, activism, and influence.	The Board, Investment Manager and Broker engage directly with shareholders to understand investors’ needs and best interests. The Investment Manager and Broker regularly monitor movements in the Fund’s share register.	Saba becoming the largest shareholder of the Fund

Portfolio Risks

Risk

Mitigants

Change from 2024

Regulatory & Legal Risks

The Company is primarily focused on Canadian companies that may have operations in, or be exposed to, regulatory risks in many other countries. These have the potential of negatively impacting the efficiency and structure of the Company.

The Investment Manager and the Board are kept abreast of changes to all relevant laws by the Company’s legal and tax advisers, secretary, Administrator and Auditor.

Unchanged

Income/Dividend

The Company sets its target dividend at a rate it expects to earn from the dividends received from its underlying equity investments based upon robust modelling and assumptions.

Failure by those investments to meet expectations due to, for example, decreased operating margins, changes in tax treatment of dividends, increased borrowing costs or poor underlying performance, may prevent the Company from being able to meet its target dividend.

The Investment Manager’s allocation process seeks to select investments capable of producing strong reliable dividends and future capital growth across a diverse range of sectors. Day to day risk management techniques seek to diversify risk and monitor high levels of volatility. The Board monitors the income received on investments and available for distribution prior to the declaration of each dividend.

Unchanged

Operational Risks

Risk

Mitigants

Change from 2024

Key man Risks

The Company is reliant on key individuals of the Investment Manager to meet its investment objective and for growing the Company’s shareholder base.

The Company’s portfolio is managed by a team of investment professionals led by Dean Orrico and Rob Lauzon.

Unchanged

Service provider performance

The Company is reliant on the performance, safe custody of assets and data and internal controls of its service providers for its day-to-day activities. Poor performance or failure to meet their contractual obligations, including the absence of adequate business continuity plans and data and cyber security, could negatively impact the operations, reputation, governance and cost efficiency of the Company.

Due diligence is carried out on all service providers prior to their appointment, with their level of service monitored continually and assessed formally by the Management Engagement Committee on an annual basis.

The Board monitors the performance of the Investment Manager at every Board meeting and otherwise as appropriate.

Unchanged

Financial Risks

Risk

Mitigants

Change from 2024

Market Risks

The Company may generate a loss on its investments at realisation due to adverse movements in their share prices, currency or interest rate movements.

The directors monitor the Investment Manager’s compliance with the Company’s stated investment policy and review the investment performance.

Unchanged

Liquidity Risk

The Company may hold positions, long or short, in securities that may not be able to be sold or bought quickly enough so as to prevent or minimise a loss.

The Fund primarily invests in securities that are readily realisable, mainly issued by Canadian companies and REITS listed on a Canadian Stock Exchange and are actively traded.

Unchanged

Emerging Risks

Tensions in the Middle East remain a key geopolitical risk, impacting global markets and supply chains. The events have led to regional instability, with concerns of a broader conflict involving the US, Iran, and other regional powers. Although there are current diplomatic efforts to reach a ceasefire in both Ukraine and Israel, these conflicts have the potential to disrupt global trade routes, commodity prices, and investor sentiment. The US has increased sanctions on Iranian-linked groups while also seeking to prevent direct conflict with Iran. As we’re currently witnessing, long-term stability will require diplomatic engagement, economic incentives, and security assurances to prevent further escalation. A resolution could help tame commodity price volatility, restore trade flows, and ease investor concerns over prolonged geopolitical uncertainty.

In July 2024, the unwinding of the FX carry trade triggered a sharp selloff in global markets. Investors had been borrowing in low-yielding currencies, particularly the Japanese Yen, to fund investments in higher-yielding assets, taking advantage of Japan’s ultra-low-interest rate environment. However, speculation that the Bank of Japan (BOJ) would tighten monetary policy and allow interest rates to rise led to a sudden surge in the Yen. As a result, investors were forced to unwind their positions, causing widespread deleveraging and significant volatility across asset classes. The BOJ’s measured approach to adjust policies prevented further panic, but investors remain cautious of further FX-driven volatility.

The 2024 election cycle was one of the most consequential in recent history and reshaped global trade policies, leadership dynamics, and economic strategies, driving market volatility. While some elections reinforced political continuity, others led to major shifts in international relations, trade agreements, and economic policies. In the US, Trump’s return to office signalled a shift toward protectionist trade policies, deregulation, and energy independence, with renewed emphasis on tariffs, border security, and reshoring manufacturing. His administration’s approach to China, Mexico, and Canada has already introduced trade policy uncertainty, including the temporary threat of 25% tariffs on Canadian and Mexican imports. Markets reacted with heightened volatility, particularly in trade-exposed sectors, as investors assessed the long-term impact of potential USMCA renegotiations and increased trade restrictions. Looking ahead, the 2025 Canadian federal election could reshape economic policies and business sentiment. A pro-business environment, conservative leadership shift could accelerate deregulation and foster a more investment-friendly environment. With rising protectionist rhetoric in the US, Canada’s focus may shift towards strengthening non-US trade relationships. As global political landscapes evolve, markets will continue to navigate shifting policies, impacting investment strategies in the year ahead.

Emerging risks, along with all other risks the directors have identified the Company to be exposed to, are monitored via the Company’s risk register. During the year, as part of their regular review and assessment of risk, the directors have considered the ongoing discussions with Saba and the potential impact of the requisition on the Fund’s future structure. The fund is a closed-ended investment fund and thus is not required to comply with LR 6.6.1R(13) or LR 6.6.8R due to LR11.4.22R.

Going Concern and Viability

The performance of the investments held by the Fund over the reporting year is reflected in the Statement of Comprehensive Income and in notes 3 and 22 to the financial statements and the outlook for the future is described in the Chairman’s Report and the Investment Manager’s Report. The Company’s financial position, its cash flows and liquidity position are set out in the financial statements and the Company’s financial risk management objectives and policies, details of its financial instruments and its exposures to market price risk, credit risk, liquidity risk, interest rate risk, currency risk and country risk are set out at note 16 to the financial statements. The Company’s long-term viability and assessment of longer-term risks to which the Company is exposed are also reported upon in the Company’s long-term viability statement included below.

The financial statements have been prepared on a going concern basis, supported by the directors’ current assessment of the Company’s position based on the following factors:

• ongoing shareholder interest in the continuation of the Fund;

• the Fund has sufficient liquidity in the form of cash assets to meet all on-going expenses;

• should the need arise, the directors have the option to reduce dividend payments in order to positively affect the Fund’s cash flows;

• the Fund’s investments in Canadian and U.S. securities are readily realisable to meet liquidity requirements, if necessary; and

• assuming the Fund’s trading in a security represented 30% of the average daily trading volume of that security, 100% of portfolio’s holdings can be liquidated in under 5 working days.

Based on the above, in the opinion of the directors, there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.

The directors have also considered the application of the SORP for Financial Statements of Investment Trust Companies and Venture Capital Trusts, whereby the going concern basis of preparation of the financial statements is considered appropriate until a vote is passed to discontinue the Fund or Company. There is no requirement under the Company’s and Fund’s articles of association to propose any continuation vote in respect of either the Company as a whole or the Fund itself and the directors have no intention of proposing any continuation vote in the foreseeable future, subject to unforeseen future events. For these reasons, the financial statements have been prepared using the going concern basis.

The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will continue to operate and meet its obligations as they fall due. However, the Company’s ability to continue as a going concern is subject to material uncertainty. Since the Company’s year end, on 10 February 2025 the Company, together with three other UK-listed closed-end funds, received a requisition notice from Saba, marking the second phase of Saba’s recent activist campaign in the UK-listed closed-end fund sector. The first phase commenced on 18 December 2024 with Saba requisitioning general meetings at seven UK-listed closed-end funds, proposing resolutions (each of which later failed) to remove the current independent directors of those seven funds and replace them with Saba’s own appointees, with a view to also terminating the management contracts and, in due course, replacing the investment managers with Saba. The requisition notice received by the Company on 10 February 2025 was for the approval by shareholders of the taking of all necessary steps to implement a scheme or process by which shareholders would become (or have the option to become) shareholders of a UK-listed open-ended investment company (or similar open-ended investment vehicle) implementing a substantially similar strategy to the Company. Such scheme or process could entail shareholders rolling into an existing or newly established UK-listed open-ended investment company (or similar open-ended investment vehicle), in either case managed by the Company’s existing investment manager or one of its affiliates. Following consultation with a number of the Company’s largest shareholders including Saba, and following constructive discussions with Saba, on 21 February 2025 the Company announced that Saba had agreed to withdraw its requisition notice for a period of 60 days to enable the Company and its advisers to formulate proposals that are in the best interests of all shareholders. At the current time, the Board is in the process of considering a number of strategic options in the best interests of shareholders as a whole. A further announcement regarding future proposals which the Company may put to shareholders will be made in due course. Although the Board is confident that the Company will have sufficient financial resources to meet its obligations due within twelve months from the date of approval of the financial statements, the uncertain future outcome of the Board’s deliberations indicates the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. Nevertheless, the Board believes that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

Viability Statement

Provision 36 of the AIC Code includes a recommendation that the directors publish a long-term viability statement and this statement is intended to meet that requirement.

The Board of directors regularly assesses the viability of the Company for at least the three years following the date of that review. The Board believes that this three-year period remains the appropriate period over which to assess the Company’s viability because the Company’s shareholders and other stakeholders desire long-term certainty as to the Company’s viability. The Board does not consider it feasible to anticipate with any reasonable degree of certainty the viability of the Company for a period longer than three years. In considering the Company’s viability, the Board considers the Company’s current position and the principal and emerging risks to which it is exposed, as set out on pages 30 to 33, the viability of its investment objective and policy, market risks, the ongoing charges ratio, the liquidity of its investments, the ability to use hedging as a portfolio management tool, gearing and the reduction in reliance of the Canadian economy on energy as it diversifies into promising growth industries, such as healthcare and technology.

The Board considers the impacts on the Company’s business plan and viability if severe principal and emerging risks are applied. Certain financial risks were considered under a scenario analysis that stress tests the portfolio against historic market shocks, including the 2008 Lehman Default, the 2011 Debt Ceiling Crisis and the 2015 Greece Financial Crisis. It is expected that the value of the Fund’s total investments as at 31 December 2024 would have experienced drawdowns of 22.7 per cent, 13.0 per cent and 1.5 per cent, respectively. Strategy, portfolio and market risks were also considered under a stress tested scenario where adverse movements in currency of 15 per cent are experienced, operating expenses increase by 20 per cent and gearing is reduced to zero due to higher interest rates. Under this scenario, the Fund’s revenue is expected to decline by approximately £1,629,698, its net profit is expected to decline by £1,161,351 and the dividend coverage of the Fund is expected to decline to 84 per cent. This analysis is relative to fiscal 2024 results and incorporates the dividend increase announced in January 2025.

The directors have made a robust assessment of principal risks and, together with the Company’s Investment Manager, have adopted procedures and strategies to mitigate these risks. The Fund has an established Investment Policy, which has been approved and is monitored by the directors. The Investment Manager regularly updates the directors on the Company’s portfolio and the overall status of the market. The directors engage tax accountants to perform an investment trust test (for compliance with the requirement to distribute at least 85% of investment income received) on an annual basis). A solvency test is also undertaken (in compliance with Jersey company law) before any dividend is declared.

Notwithstanding the ongoing uncertainty caused by geopolitical events, higher interest rates and inflation, if the Company’s income, expenses and dividends remain substantially unchanged in 2024 and 2025, the Company will hold sufficient cash to pay all of its expenses and the current rate of dividends for at least the next 12 months following the date of approval of this annual financial report. In addition, the Board reviews the liquidity of the Company’s investments on a quarterly basis and the Company’s investment portfolio remains extremely liquid. The Board is confident, based on its regular monitoring of liquidity, that additional cash can be raised very quickly if needed through sale of investments.

The Fund has a credit facility agreement with RBC whereby RBC provides the credit facility, with a maximum principal amount of the lesser of CAD 75,000,000 and 25 per cent. of the total asset value of the Fund. Based on the Fund’s total assets of GBP 172,062,473 as at 31 December 2024, a decrease in total assets of GBP 56,481,233, or 32.83 per cent of assets, would be required for the principal amount to exceed 25 per cent of the total asset value of the fund.

In 2024, the level of net gearing was kept relatively consistent at an average level of 15.9 per cent. At the year -end it stood at 16.2 percent on a gross basis and 19.3 per cent net.

Following careful consideration and analysis of all material risk factors, the Board acknowledged the ongoing uncertainty as set out under the going concern and viability statement on page 33 and believes that the Company remains viable for the foreseeable future.

Key Performance Indicators At each Board meeting, the Board considers several performance measures to assess the Company’s success in achieving its objectives. The key performance indicators (KPIs) used to measure the progress and performance of the Company, and which are comparable to other investment trusts, are set out below.

In addition, the Board regularly reviews the performance of the portfolio from both a net asset value and share price perspective and compares this against various companies and indices. The Board also reviews the performance of the portfolio against its benchmark; the S&P TSX High Dividend Index. Information on the Company’s performance is given in the Chairman’s Statement and Investment Manager’s Report.

Key performance indicator	2024 Value	2023 Value
NAV per share	134.05 pence	121.55 pence
NAV total return performance for the year	15.1%	(1.4%)
Benchmark Index*	7.6%	3.9%
Share price	116 pence	101.10 pence
Discount to NAV	(13.47%)	(16.84%)
Dividend paid in the year	5.3 pence	5.2 pence
Ongoing charges**	1.30%	1.33%

* S&P/TSX High Dividend Index, total return basis.

** refer to page 42.

Borrowings

At 31 December 2024, the amount drawn down under the credit facility was CAD 52 million (GBP equivalent at amortised cost of £28,884,872). For further details, please refer to Note 14. Loan Payable on page 71.

Future Developments

Details of the main trends and factors likely to affect the future development, performance and position of the Company’s business can be found in the Investment Manager’s Report on pages 11 to 15. Further details as to the risks affecting the Company are set out on pages 30 to 33.

Environmental, Social and Governance Matters (‘ESG’)

The Board and the Investment Manager believe that companies should operate in a socially responsible manner. Day-to-day decisions regarding the Company’s investment portfolio have been delegated to the Investment Manager. While MCT is not explicitly focused on ESG or sustainability, it acknowledges the increasing importance that non-financial factors including social and environmental issues can have on the share price, as well as the reputation of companies. Specialists at the Investment Manager are responsible for evaluating how companies address and report on social and environmental risks specific to their industries. Their goal is to integrate ESG criteria into the Investment Manager’s decision-making processes for stock selection and to promote ESG disclosure. The Investment Manager is mindful of its influence on the consideration of ESG matters by the Fund’s investee companies. Alongside portfolio construction decisions, the Investment Manager continuously monitors investee companies for ESG compliance. Company monitoring, including engagement processes such as voting and communication with management and Company board members, is part of the Investment Manager’s responsibilities. The Investment Manager’s ESG policy can be found on pages 16 to 18.

Institutional Voting Policy

The Company’s policy is that a decision on whether to vote on matters proposed by its investees is to be based on the nature of the matter being proposed. In the ordinary course of business, voting decisions have been delegated to the Investment Manager.

The Investment Manager’s proxy voting policies are designed to be general in nature and the Investment Manager aims to exercise its proxy voting on all securities held. When exercising voting rights, the Investment Manager will generally vote with management of the issuer. For each proxy, the Investment Manager incorporates research and considers the recommendations provided by Glass Lewis, the Investment Manager’s proxy advisor, in exercising its voting rights. All proxy UK voting is conducted through Glass Lewis Viewpoint and /proxy voting is a key element of the Investment Manager’s stewardship of the assets it manages, which is adjunct to the integration of ESG factors into its investment process.

On a monthly basis, the Investment Manager’s portfolio managers generate a list of issuers whose weightings represent more than 3% of the Fund’s net assets at the month-end preceding the voting date. For each of these issuers, the Investment Manager will record comments which support the rationale for the proxy decision made. For example, comments would be registered in Glass Lewis Viewpoint if the Investment Manager’s proxy voting decision differs from the recommendation from management or Jersey Glass Lewis. Copies of all proxy records are retained and available in Glass Lewis Viewpoint.

Board Diversity and Experience

The Company’s affairs are overseen by a Board comprised of five non-executive directors, two of whom are female. The directors’ biographies are included on pages 26 to 27 above, demonstrating the diversity of their experience including, but not limited to, investment management, corporate governance, corporate law, banking, accounting and audit and ESG matters.

The directors regularly consider the leadership needs and specific skills required to manage the Company’s affairs in the best interests of its shareholders and other stakeholders and take account of diversity recommendations in their succession planning. The Board is cognisant of the requirements of listing rule 6.6.6R (9) and the tables below provide the relevant data required by listing rules 6.6.6R (9) to (11) and annex 1R to listing rule 6. The Board is not yet fully compliant with these rules, because none of the directors is from a minority ethnic background, but will continue to work towards compliance in a structured and orderly manner. The directors have decided that in future, in order to reach a broader range of diverse candidates, they will consider using one or more UK external search agents to assist with the search for new directors.

The following table represents the gender identity of the Board as of the date of approval of this annual financial report and includes the information required by Listing Rule 6.6.6(9) and Annex 1 to Listing Rule 6, this data having been obtained by polling the directors:

	Number of Board Members	Percentage of the Board	Number of Senior Positions on the Board (CEO, CFO, SID and Chair)	Number in Executive Management	Percentage of Executive Management
Men	3	60%	1	N/A – No executive Management	N/A – No executive Management
Women	2	40%	1	N/A – No executive Management	N/A – No executive Management
Not specified/prefer not to say	0	0%	0	N/A – No executive Management	N/A – No executive Management

The following table represents the ethnic background of the Board as of the date of approval of this annual financial report and includes the information required by Listing Rule 6.6.6(10) and Annex 1 to Listing Rule 6, this data having been obtained by polling the directors:

	Number of Board Members	Percentage of the Board	Number of Senior Positions on the Board (CEO, CFO, SID and Chair)	Number in Executive Management	Percentage of Executive Management
White British or other White (including minority-white groups)	5	100%	2	N/A – No executive Management	N/A – No executive Management
Mixed/Multiple Ethnic Groups	0	0%	0	N/A – No executive Management	N/A – No executive Management
Asian/Asian British	0	0%	0	N/A – No executive Management	N/A – No executive Management
Black/African/ Caribbean/ Black British	0	0%	0	N/A – No executive Management	N/A – No executive Management
Other ethnic group, including Arab	0	0%	0	N/A – No executive Management	N/A – No executive Management
Not specified/prefer not to say	0	0%	0	N/A – No executive Management	N/A – No executive Management

REPORT OF DIRECTORS

The Directors present their report and the audited financial statements of the Company for the year ended 31 December 2024.

Results and Dividend Policy

The results for the year are shown in the Statement of Comprehensive Income on page 61 and related notes on pages 64 to 80. Four interim dividends of 1.325 pence per share were declared and paid on account during the year ended 31 December 2024. In early 2025, a dividend of 1.375 pence per share was paid on 31 January 2025.

The Board is aware of the current circumstances surrounding inflation, higher interest rates and the evolving geopolitical landscape and their significant impact on economies and financial markets. As a result, we will be keeping the future level of dividends under close review.

Currently, we remain confident that our dividend can be paid based on the solvency and future viability of the Fund.

In light of the excess revenue earnings generated by the Fund this year, together with the prospect of dividend growth from the underlying portfolio, the board approved a 0.2p increase to the total dividends payable in 2025. This results in a new dividend rate of 5.5 pence per share per annum payable in 2025 on a quarterly basis in equal instalments. These figures are targets only and do not constitute, nor should they be interpreted as, a profit forecast.

In addition, this is a target only and should not be treated as an assurance or guarantee of performance. If the Company’s results permit it, the Board may consider further increases to the rate of dividends paid to shareholders at the appropriate time.

The current dividend rate of 1.375 pence per share per quarter is expected to be supported by dividend and interest income earned by the Fund.

Directors’ Conflicts of Interest

A director must avoid a situation where he or she has or might have a direct or indirect interest that either conflicts with or has the potential to conflict with the Company’s interests. The Company’s and Fund’s Articles of Association give the directors authority to authorise potential conflicts of interest and there are safeguards in place which will apply whenever the directors decide that such are necessary or desirable. Firstly, only directors who have no interest in the matter being considered are able to vote upon the relevant decision, and secondly, in voting on the decision, the directors must act in a way they consider, in good faith, will be in the best interests of the Company. The directors can impose limits or conditions when giving authorisation if they consider this to be appropriate.

The directors declare any potential conflicts of interest to the Board at each Board meeting. Any actual or potential conflicts of interest are entered into the Company’s register of such conflicts, which register is reviewed regularly by the Board. The register of conflicts of interest is kept at the Company’s registered office. The directors advise the Secretary as soon as they become aware of any new actual or potential conflicts of interest or any material changes to an existing conflict.

Share Capital

The Fund has the power to issue an unlimited number of shares of no par value which may be issued as redeemable participating preference shares or otherwise and which may be denominated in Sterling or any other currency.

There are currently 2 Management Shares of no par value in the Company (issued on incorporation) and 124,682,250 Fund Shares in issue. As at 31 December 2024, 18,235,000 (2023: 18,195,000) Fund Shares were held in treasury. Since the financial year end and up to the date of this report, no Fund Shares had been sold out of or repurchased into treasury, and there remain 18,235,000 Fund Shares held in treasury, which may in future be sold out of treasury to satisfy market demand. Accordingly, the number of Fund Shares in issue and with voting rights attached is currently 106,447,250 (2023: 106,487,250) and this figure may be used by shareholders as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under FCA’s Disclosure Guidance and Transparency Rules.

Further issues and Repurchases of Fund Shares

The Fund’s Articles of Association provide the Board of directors with authority to issue further Fund Shares without seeking shareholders’ approval, although, unless otherwise authorised by shareholders, such Fund Shares must be issued on a pre-emptive basis. However, at the Cell AGM held on 13 June 2024, the Fund’s shareholders authorised the issue or sale out of treasury of Fund Shares representing up to 10 per cent. of the Fund’s issued share capital as at the date of the Cell AGM on a non-pre-emptive basis. Such issues or sales will only be effected in the event of investor demand which cannot be met through the market and will only be conducted at a price equal to or above the prevailing NAV.

The aforementioned authority expires on the earlier of 30 September 2025 or the conclusion of the next Cell AGM.

The Fund’s Articles of Association also provide the Board of directors with authority to repurchase Fund Shares, provided that such repurchases are made with shareholders’ prior approval.

At the Cell AGM held on 13 June 2024, the Fund’s shareholders authorised the Board to make market purchases of up to 15,962,438 Fund Shares (representing 14.99 per cent. of the Fund’s issued share capital as at the date of the Cell AGM), provided that no such purchases may be made at a price above the prevailing net asset value per Fund Share on the date of any such purchase.

The aforementioned authority also expires on the earlier of 30 September 2025 or the conclusion of the next Cell AGM.

At the next Cell AGM, the Board will be seeking renewal of its authority to issue or sell out of treasury additional Fund Shares and to make market acquisitions of Fund Shares. The Fund conducted two share buybacks during 2024, The Board believes that it is important to retain the authority to buyback where appropriate (which, in turn is likely to depend on, inter alia, the prevailing discount rating of the Fund Shares, the financial resources that the Company has at its disposal, liquidity levels in the Fund Shares and the size of the Company). Buybacks can confer several benefits on remaining shareholders: they are accretive to NAV and can provide additional useful liquidity.

Holdings in the Company’s Shares

As at the year end and as at 28 February 2025, being the most recent practicable date prior to the publication of this Annual Financial Report, the Company had received notification in accordance with the Financial Conduct Authority’s Disclosure and Transparency Rule 5 of the following interests in 5 per cent or more of the Fund’s issued share capital with voting rights attached, where the Board has been advised that the holder retains a holding in excess of 5 per cent.

Name	Redeemable Participating Preference Shares 31 December 2024 31 31 December 2024	Redeemable Participating Preference Shares 31 December 2024	Redeemable Participating Preference Shares 28 February 2025
	Number of Shares	% of Shares in issue	Number of Shares
Saba Capital Management, L.P.*	31,048,865	29.12%	31,048,865
M&G PLC	9,794,162	9.20%	9,794,162
JP Morgan Chase & Co	NIL	NIL	5,479,118

* Of the 29.1% holding disclosed by Saba Capital Management L.P. 17.6% interest is held via total return swaps and the counterparty to such swaps may be separately disclosed in the table and result in double disclosure of such shares

Fund Shares are redeemable at the sole option of the directors and therefore classified as equity in the Statement of Financial Position.

Reappointment of Auditor

RSM Channel Islands (Audit) Limited has expressed its willingness to continue in office as auditor and a resolution to re-appoint it will be proposed at the Company’s and Fund’s forthcoming AGMs.

Related Party Transactions

Annual General Meetings (‘AGMs’)

This year’s AGMs will be held on 19 June 2025. Shareholders are welcome to attend the AGMs in person. The AGM Notices and details of the resolutions to be proposed are being sent to shareholders with this annual financial report. Shareholders can also write to the Company for further details at its registered office or by e-mail to the Secretary at Middlefield.Cosec@JTCGroup.com.

Directors’ Statement as to Disclosure of Information to the Auditor

Each of the persons who is a director at the date of approval of this annual financial report confirms that:

• so far as the director is aware, there is no relevant audit information of which the Company’s auditor is unaware; and

• the director has taken all steps that he should have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.

Approval

This Strategic Report was approved by the Board on 24 March 2025 and is signed on their behalf by:

Michael Phair Andrew Zychowski

Director Director

Corporate Governance

Statement of Directors Responsibilities

Directors’ Responsibility Statement

The directors are responsible for preparing the annual financial report in accordance with applicable law and regulations. The Companies (Jersey) Law 1991, as amended (the “Companies Law”) requires the directors to prepare financial statements for each financial year which gives a true and fair view of the state of affairs of the Company and Fund as at the end of the financial year and of the profit or loss for that year. The directors have elected to prepare the financial statements under UK-adopted IFRS.

International Accounting Standard 1 requires that financial statements present fairly for each financial period the Company’s and Fund’s financial position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting Standards Board’s ‘Framework for the preparation and presentation of financial statements’. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable IFRS. However, directors are also required to:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in IFRS are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company’s and Fund’s financial position and performance; and

• make an assessment on the Company’s and Fund’s ability to continue as a going concern.

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Law. They are also responsible for safeguarding the assets of the Company and Fund, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website www.middlefield.co.uk.

Legislation in Jersey and the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Having taken advice from the Audit Committee, the Board considers the report and accounts, taken as a whole, as fair, balanced and understandable and that it provides the information necessary for shareholders to assess the Company’s and Fund’s performance, business model and strategy.

We confirm that to the best of our knowledge:

1. the financial statements, prepared in accordance with under UK-adopted IFRS, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and Fund;

2. the Chairman’s Statement, Investment Manager’s Report and notes to the financial statements incorporated herein by reference include a fair review of the development, performance and position of the Company and Fund, together with a description of the principal risks and uncertainties that it faces; and

3. the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company’s and Fund’s position and performance, business model and strategy.

By order of the Board:

Michael Phair Andrew Zychowski

Director Director

Date: 24 March 2025

Directors’ Remuneration Report

Remuneration Report

Remuneration policy

The Company’s remuneration policy is designed to ensure that the remuneration of directors is set at a reasonable level commensurate with the duties and responsibilities of each director and the time commitment required to carry out their roles effectively. Remuneration will be such that the Company and Fund are able to attract and retain directors of appropriate experience and quality. The fees paid to directors will reflect the experience of the Board as a whole, will be fair, and will take account of the responsibilities attaching to each role given the nature of the Company’s interests, as well as the level of fees paid by comparable investment trusts and companies.

Directors will be reimbursed for travel and subsistence expenses incurred in attending meetings or in carrying out any other duties incumbent upon them as directors of the Company or Fund. The level of directors’ fees paid will not exceed the limit set out in the Company’s and Fund’s Articles of Association.

Directors’ Remuneration

No director has a service contract with the Company or Fund and details of the directors’ fees are disclosed in note 13. The non-executive directors each earned the following fees in the 2024 and 2023 financial years:

Director	2024 Fees	2023 Fees
Philip Bisson (Resigned 1 June 2023)	–	£10,440
Dean Orrico	–	–
Richard Hughes (Resigned 1 June 2023)	–	£11,275
Michael Phair	£36,000	£33,500
Kate Anderson	£29,000	£27,000
Janine Fraser	£29,000	£27,000
Andrew Zychowski (Appointed 30 June 2023)	£32,000	£16,000

Mr Orrico has waived his entitlement for remuneration for acting as a director, because of his employment by the Investment Manager. The directors receive no other remuneration or benefits from the Company other than the fees stated above. The directors are paid out of pocket expenses for attendance at Board meetings and for any other expenditure they incur when acting on the Company’s behalf.

The remuneration of each director is determined by the Nomination and Remuneration Committee, with each director abstaining from discussion of and voting upon their own remuneration. When the directors’ remuneration is being considered, the Nomination and Remuneration Committee takes into account various factors including, but not limited to, the Company’s and individual directors’ performance, as well as each director’s time commitment to their role. To date, no external remuneration consultant has been appointed.

For the year under review, the directors’ remuneration was set at £36,000 per annum for the chairman of the Board, £32,000 per annum for the chairman of the audit committee and £29,000 for all other directors bar Mr Orrico, who has waived his entitlement to remuneration for acting as a director.

Shareholders’ Views

The Board welcomes the opportunity to discuss matters of remuneration with shareholders at the Company’s and Fund’s AGMs or at any investor forum that may be held during the year.

Letters of Appointment

All directors are non-executive. Every director has a letter of appointment and the letters of appointment are available for inspection on the Company’s website.

Directors’ Interests in Shares

The interests as at 28 February 2025, 31 December 2024 and 2023 of the directors who served on the Board and their connected persons during the year were as follows:

	28 February 2025 Fund Shares	31 December 2024 Fund Shares	31 December 2023 Fund Shares
Dean Orrico	220,000	220,000	220,000
Middlefield Limited (a company connected with Dean Orrico)	170,000	170,000	–
Michael Phair (current Chairman)	70,000	70,000	70,000
Andrew Zychowski (appointed 30 June 2023)	50,000	50,000	50,000
Danuta Zychowska (a person connected to Andrew Zychowski)	83,000	83,000	83,000
Kate Anderson	–	–	–
Janine Fraser	–	–	–

Directors’ dividends

The following dividends were paid to Directors during the year as well as persons connected to the Directors.

	31 December 2024 Dividend GBP	31 December 2023 Dividend GBP
Philip Bisson (resigned 1 June 2023)	–	–
Philean Trust Company Limited (a company connected with Philip Bisson until 1 June 2023)	–	11,731
Probitas Trust Company Limited (a company connected with Philip Bisson until 1 June 2023)	–	3,900
Beg Kaleh Services Limited (a company connected with Philip Bisson until 1 June 2023)	–	3,848
Beg Kaleh Pension Limited (a company connected with Philip Bisson until 1 June 2023)	–	28,418
Dean Orrico	11,660	11,440
Middlefield Limited (A PCA of Mr Orrico and the Manager of the Company)	6,758	–
Richard Hughes (resigned 1 June 2023)	–	2,637
Cheng Sim Hughes (a person connected to Richard Hughes until 1 June 2023)	–	650
Michael Phair (current Chairman)	3,710	3,640
Andrew Zychowski (appointed 30 June 2023)	2,650	2,600
Danuta Zychowska (a person connected to Andrew Zychowski)	4,399	4,316
Kate Anderson	–	–
Janine Fraser	–	–

Ongoing Charges

The below table shows the annualised ongoing charges that relate to the management of the Fund as a single percentage of the average NAV over the same year. In terms of the AIC’s methodology, ongoing charges are those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital or revenue, and which relate to the operation of the Fund as a collective investment fund, excluding the costs of acquisition/disposal of investments, financing charges and gains/losses arising on investments.

	Ongoing charges (%)
31 December 2024	1.30
31 December 2023	1.33

Applicable Corporate Governance Codes

The Board is committed to achieving and demonstrating high standards of corporate governance. The Board is advised on all governance matters by the Secretary and has access to independent professional advice at the Company’s expense where it is judged necessary.

As an overseas closed-ended investment fund which has been admitted to the Official List of the FCA and to trading on the London Stock Exchange’s Main Market for Listed Securities, the Company is required by listing rule 6.6.6R (5) and (6), as modified by listing rule 11.7.7R, to report how the Company has applied the Principles set out in the UK Corporate Governance Code (the “UK Code”) and whether the Company has complied throughout the accounting period with all relevant provisions of the UK Code and, if it has not complied with all provisions, those provisions with which it has not complied and its reasons for non-compliance.

The AIC, of which the Company is a member, has published the AIC Code, which has been endorsed by the FRC and supported by the JFSC. The FRC has confirmed that, by following the AIC Code, investment company boards should fully meet their obligations in relation to the UK Code and paragraph LR 6.6.6 of the Listing Rules.

The UK Code is available for download from the FRC’s web-site www.frc.org.uk and the AIC Code is available for download from the AIC’s website www.theaic.co.uk. Both of these documents can also be provided by the Secretary by e-mail upon request.

Statement of Compliance

The Board has considered the principles and recommendations of the AIC Code. The AIC Code addresses all the principles set out in the UK Code, as well as setting out additional principles and recommendations on issues that are of specific relevance to the Company. The Board considers that reporting against the principles and recommendations of the AIC Code provides better information to shareholders.

The directors believe that the Company has complied with the provisions of the AIC Code, where appropriate, and that it has complied throughout the year with the provisions where the requirements are of a continuing nature.

Responsibilities of the Board

Internal Controls

The directors are responsible for overseeing the effectiveness of the Company’s risk management and internal control systems, which are designed to ensure that proper accounting records are maintained, that the financial information on which business decisions are made and which is issued for publication is reliable, and that the assets of the Company are safeguarded. However, such a system can only be designed to manage rather than eliminate the risk of failure to achieve business objectives and therefore can only provide reasonable and not absolute assurance against material misstatement or loss.

Having reviewed the Company’s risk management and internal control systems and on the advice of the Audit Committee, the Board believes that they continue to be effective and that no changes thereto are necessary or desirable at this juncture. Because the Company delegates its day-to-day operations to third parties and has no employees, having reviewed the effectiveness of the internal control systems of the Administrator on a quarterly basis and having regard to the role of its external auditor, the Board does not consider that there is a need for the Company to establish its own internal audit function. The Administrator does however provide the Company’s compliance officer, who monitors the Company’s compliance with applicable laws and regulations and reports directly to the Board of directors on a quarterly basis.

The Company receives reports from the Secretary and Administrator relating to its activities. Documented contractual arrangements are in place with the Secretary and Administrator, which define the areas where the Company has delegated authority to it. The Secretary ensures that the directors receive accurate, timely and clear information from all service providers.

Directors

Appointment, Retirement and Tenure

As Mr Orrico is not independent of the Investment Manager, he is required by the FCA’s Listing Rules to submit himself for re-election annually. In addition, in accordance with the provisions of the AIC Code, and PIRC’s published guidance, all directors will continue to offer themselves for annual re-election for the foreseeable future.

As the Company is a Jersey-regulated entity, the appointment of any new director is subject to the JFSC’s confirmation that they have no objection to such director’s appointment. It is also a regulatory requirement that the Company have at least two Jersey resident directors. Therefore, for so long as there are only two Jersey resident directors in office, any Jersey resident director who retires or whose re-election is not approved at a Company and Cell AGM will therefore remain in office until such time as a replacement Jersey-resident director acceptable to the JFSC has been appointed.

The Board is of the view that length of service does not automatically compromise the independence or contribution of directors of an investment company, where continuity and experience can be a benefit to the Board. Furthermore, the Board agrees with the view expressed in the AIC Code that long-serving directors should not be prevented from forming part of an independent majority or from acting as Chairman. Consequently, no limit had previously been imposed on the directors’ overall length of service.

However, the Board has noted that the AIC considers that directors who have served on the Board for more than nine years may not be independent and that certain corporate governance advisory bodies believe that directors should not serve more than nine years on an investment company’s Board. Therefore, in the spirit of best corporate governance, the Board has decided that any remunerated, independent director appointed in 2018 or thereafter shall only serve for a maximum of nine years before being required to retire from office.

As stated in previous annual financial reports, the Board has recognised the merits of refreshing its composition as well as planning for future succession. The Board intends to continue evolving its composition on a periodic basis and has agreed a succession plan for the directors with over nine years of service. The Board’s advance planning for the retirement of directors ensures an orderly transition process that maintains an appropriate balance of skills and relevant experience. The Board has used open advertising in the past. The directors have decided that in future, in order to reach a broader range of diverse candidates, it will also consider using one or more UK external search agents to assist with the search for new directors.

As required by the FCA’s Listing Rules, full biographical details of any additional directors appointed will be announced and he or she will stand for re-election at the next subsequent Company and Cell Meeting convened after their appointment and annually thereafter.

Independence

For the period 1 January 2024 to the date of this report, the Board consisted of five members, all of whom were non-executive. Mr Orrico is a director of Middlefield Limited, the Investment Manager and President of the Investment Advisor. All the directors, apart from Mr Orrico, are considered to be independent of the Investment Manager and free of any business or other relationship that could influence their ability to exercise independent judgement. The Board believes that Mr Orrico’s investment management experience as well as his first-hand knowledge of the Canadian economic and investment sector adds considerable value to the Company.

The Board believes that Ms Anderson, Ms Fraser, Mr Phair and Mr Zychowski are independent in character and judgement and that their experience and knowledge of the specialised sector in which the Company operates adds significant strength to the Board. M Phair was also considered to be independent upon his appointment as Chairman. The directors believe that the Board has a balance of skills and experience which enable it to provide effective strategic leadership and proper governance of the Company. Information about the directors, including their relevant experience, can be found on pages 26 to 27.

In accordance with the recommendations of the AIC Code, Ms Kate Anderson acted as Senior Independent Director. In-line with the AIC’s recommendation, Ms Anderson provides a sounding board for the chair and serves as an intermediary for the other directors and shareholders. She is responsible for coordinating a regular meeting, at least annually and on other occasions as necessary, of the non-executive directors (excluding the chair), to appraise the chair’s performance.

Induction and Ongoing Training

Although no formal training in corporate governance is given to directors, the directors are kept appraised of corporate governance issues through bulletins and training materials provided from time to time by the Secretary and the AIC.

Directors’ Insurance

The Company purchases directors’ and officers’ liability insurance cover at a level which is considered appropriate for the Company.

Meeting Attendance

The table below summarises the directors’ attendance at each type of meeting held during the year.

	Quarterly Board	Ad hoc Board	Audit Committee	Nomination and Remuneration Committee	Management Engagement Committee	Dividend Committee**
No. of meetings in the Year	4	2	4	2	1	4
Dean Orrico*	4	2	4	2	1	0
Janine Fraser***	4	2	4	2	1	3
Michael Phair	4	2	4	2	1	1
Kate Anderson***	4	2	4	2	1	0
Andrew Zychowski	4	2	4	2	1	3

* Mr Orrico attended meetings of the Committees as an observer, not a member or participant.

** The quorum for a meeting of the Dividend Committee is one director physically present in the UK.

*** Ms Anderson and Ms Fraser attended as observers at the ad hoc Board meeting on 7 May 2024.

The Board’s Committees

Performance Evaluation

The directors recognise the importance of the AIC Code in terms of evaluating the performance of the Board as a whole, its respective Committees and individual directors. After the year end, the performance of the Board, Committees of the Board and individual directors was assessed in terms of:

• attendance at Board and Committee Meetings;

• the independence of individual directors;

• the ability of individual directors to make an effective contribution to the Board and Committees of the Board, together with the diversity of skills and experience each director brings to meetings;

• the Board’s ability to effectively challenge the Investment Manager’s recommendations, suggest areas of debate and fix timetables for debates on the future strategy of the Company; and

• the Board’s diversity in terms of gender, social and ethnic backgrounds and cognitive and personal strengths and weaknesses.

The directors concluded that the performance evaluation process had proven successful, with the Board, the Chairman, the Committees of the Board and the individual directors scoring well in all areas. The Board and the Committees of the Board continued to be effective, each director’s behaviour continued to be aligned to the Company’s purpose, values and strategy and the individual directors continued to demonstrate commitment to their respective roles and responsibilities. Although the Board did not procure an externally facilitated Board evaluation during the year under review, the directors will consider doing so at the appropriate time in the future.

The Board also reviews its own policies and procedures on a periodic basis, as well as the terms of reference of its committees, to ensure that they serve to further the Company’s purpose and that they are aligned with the Company’s values and strategy. The Board with the support of the Secretary reviewed all of their policies, procedures and the terms of reference, all of which were updated (as applicable) to meet the recommendations of the AIC Code and concluded that they continued to be in a satisfactory form.

Committees of the Board

Audit Committee

On 26 May 2010 an Audit Committee was established. The current members are Andrew Zychowski (Chairman), Michael Phair, Kate Anderson and Janine Fraser. Notwithstanding that Mr Phair is Chairman of the Board, he was independent on appointment and the Board considers that his experience and knowledge is of great value to the Audit Committee. A separate report from the Audit Committee is included at pages 48 to 50.

Nomination and Remuneration Committee

The Board has also established a Nomination and Remuneration Committee, which meets when necessary. At the present time, the current members are all the directors of the Company bar Mr Orrico, and their summary biographical details are set out on pages 26 to 27.

The Chairman of the Nomination and Remuneration Committee is Andrew Zychowski or, failing him, any member of the Nomination and Remuneration Committee present within the United Kingdom other than the Chairman of the Company. The Board believes it is appropriate for all members of the Board (excluding Mr Orrico) to be on the Nomination and Remuneration Committee, because the directors work together collegiately, and each brings a different perspective to the Nomination and Remuneration Committee’s discussions.

The key terms of reference of the Nomination and Remuneration Committee are set out below.

• The Committee oversees the process of identifying and nominating prospective directors.

• The Committee considers and monitors the level and structure of remuneration of the directors of the Company and the Fund.

• The Committee considers the need to appoint external remuneration consultants.

• The Committee is authorised, in consultation with the Secretary, where necessary to fulfil its duties, to obtain outside legal or other professional advice, including the advice of independent remuneration consultants, to secure the attendance of external advisors at its meetings, if it considers this necessary, and to obtain reliable up-to-date information about remuneration in other companies, all at the expense of the Fund.

• The Committee considers the overall levels of insurance cover for the Company, including directors’ and officers’ liability insurance.

• The Committee conducts a process annually to evaluate the performance of the Board and its individual directors.

• The Committee considers such other topics as directed by the Board.

The Board believes that, subject to any exception explained in this report and the nature of the Company as an investment fund, it has complied with the applicable provisions of the AIC Code throughout the year. The Board has noted the recommendations of the AIC relating to Board diversity. Although the Board does not have a formal written policy on diversity and inclusion, the Board, advised by the Nomination and Remuneration Committee, considers diversity, including the balance of skills, knowledge, diversity (including gender) and experience amongst other factors when reviewing the composition of the Board and appointing new directors, but does not consider it appropriate to establish targets or quotas in this regard. Board diversity is carefully considered and will continue to be considered in the future.

When considering the proposed appointment of new directors, the Nomination and Remuneration Committee receives full biographical information on all candidates and considers all matters which it considers relevant, including their experience and ability to devote sufficient time to the Company’s business. The process also takes into account numerous other factors including, but not limited to, each candidate’s experience, gender, social and ethnic background and personal strengths and weaknesses. Each director is interviewed by the Nomination and Remuneration Committee as part of the Board’s evaluation of prospective candidates. After their appointment, each director seeks the Board’s consent before taking on any other significant external appointments.

Management Engagement Committee

The Board established a Management Engagement Committee at its meeting held on 20 November 2013. In addition to regular reporting and engagement at Board meetings with its service providers, the Board formally reviews all service providers via the Management Engagement Committee. At the present time, the Management Engagement Committee’s members are all the directors of the Company bar Mr Orrico, who does not sit on the Management Engagement Committee because of the perceived conflict that his role as President of the Investment Advisor could present.

The Chairman of the Management Engagement Committee is Andrew Zychowski or, failing him, any member of the Management Engagement Committee present within the United Kingdom other than the Chairman of the Company. For the purposes of transacting business, a quorum of the Management Engagement Committee is not less than two members of the Management Engagement Committee and all meetings must take place in the UK.

The Board believes it is appropriate for all independent members of the Board to be on the Management Engagement Committee, because the directors work together collegiately and each brings a different perspective to the Management Engagement Committee’s discussions.

Duties

The Management Engagement Committee’s key duty is to review the performance by service providers of their duties and the terms of all agreements for the provision of services that the Company has entered into or will in future enter into.

The Management Engagement Committee meets at least annually to specifically consider the ongoing management, administrative and secretarial and investment management requirements of the Company. The Management Engagement Committee receives self- evaluation questionnaires provided by all service providers, which include reporting on each service provider’s opinion of the quality of services provided by the Company’s other service providers, and the Board also receives detailed compliance reporting from the Company’s compliance officer, which the Management Engagement Committee takes into account when reviewing the services provided. The quality and timeliness of reports to the Board are also taken into account and the overall management of the Company’s affairs by the Investment Manager is considered. Based on its recent review of activities, and taking into account the performance of the portfolio, the other services provided by the key service providers, and the risk and governance environment in which the Company operates, the Board believes that the retention of the current key service providers on the current terms of their appointment remains in the best interests of the Company and its shareholders.

The Board regularly reviews the performance of the services provided by these companies. A summary of the terms of the agreements with the Secretary, the Investment Manager and the Investment Advisor are set out in note 1 to the financial statements. After due consideration of the resources and reputations of those parties, the Board believes it is in the interests of shareholders to retain the services of all three providers for the foreseeable future.

Terms of Reference of Committees

The Terms of Reference of the Audit Committee, the Nomination and Remuneration Committee and the Management Engagement Committee are all available on the Company’s website and are also available for inspection at the Company’s registered office during normal business hours.

Bribery Act 2010

The Company has no employees. The Board has considered the Bribery Act 2010 and confirmed its zero tolerance of bribery and corruption in its business activities. It has received assurances from the Company’s main service providers that they will maintain adequate safeguards to protect against any form of bribery and corruption by their employees and agents.

Criminal Finances Act 2017

The Board has also considered the Criminal Finances Act 2017 and has received assurances from the Company’s main service providers that they will maintain adequate safeguards to protect against any form of illegal activities under this legislation, including the facilitation of tax evasion.

Relations with Shareholders

Shareholder relations are given a high priority by the Board, Investment Manager and Secretary. The primary medium through which the Company communicates with its shareholders is through the annual and half-yearly financial reports, which aim to provide shareholders with a full understanding of the Company’s activities and results. The information is supplemented by the daily publication of the NAV of the Fund Shares, monthly factsheets and information on the Company’s website operated by the Investment Manager. Shareholders have the opportunity to address questions to the Chairman and the Committees of the Board at the AGMs each year. Shareholders can also write to the Company at its registered office or by e-mail to the Secretary at Middlefield.Cosec@JTCGroup.com

The Chairman is available and meets with major shareholders to discuss aspects of investment performance, governance and strategy and to listen to shareholders’ views, in order to help develop a balanced understanding of their issues and concerns. General presentations are given by the Investment Manager to both shareholders and analysts follow the publication of the annual financial results. In addition, the Investment Manager maintains a regular schedule of meetings throughout the year with major shareholders and keeps the Board updated with the outcome of such meetings.

Report of the Audit Committee

This report of the Audit Committee has been prepared with reference to the AIC Code. Established in 2010, the Audit Committee reports formally to the main Board at least twice each year. In accordance with written terms of reference, its delegated duties and responsibilities are reviewed and reapproved annually. The function of the Audit Committee is to ensure that the Company maintains high standards of integrity, financial reporting and internal controls.

The members do not have any links with the Company’s Auditor. They are also independent of the management teams of the Investment Manager, the Administrator and all other service providers. The Audit Committee meets formally no less than twice a year in London and on an ad hoc basis if required.

The Audit Committee considers the financial reporting by the Company and the Fund, the internal controls, and relations with the Company’s and the Fund’s Auditor. In addition, the Audit Committee reviews the independence and objectivity of the Auditor. The Committee meets at least twice a year to review the internal financial and non-financial controls, to approve the contents of the interim and annual reports and financial statements and to review accounting policies. Representatives of the Auditor attend the Committee meeting at which the draft Annual Financial Reports are reviewed and can speak to Committee members without the presence of representatives of the Investment Manager. The audit program and timetable are drawn up and agreed with the Auditor in advance of the financial year end. Items for audit focus are discussed, agreed and given particular attention during the audit process. The Auditor reports to the Committee on these items, among other matters. This report is considered by the Committee and discussed with the Auditor and the Investment Manager prior to approval and signature of the Annual Financial Report.

The Audit Committee is authorised by the Board to investigate any activity within its terms of reference and to consult with outside legal or other independent professional advisers when deemed necessary in order to adequately discharge their duties and responsibilities, which include:

• Considering the appointment, resignation or dismissal of the Auditor and their independence and objectivity, particularly in circumstances where non-audit services have been provided.

• Reviewing the cost effectiveness of the external audit from time to time.

• Reviewing and challenging the half-yearly and Annual Financial Reports, focusing particularly on changes in accounting policies and practice, areas of accounting judgement and estimation, significant adjustments arising from audit or other review and the going concern assumption.

• Providing advice to the Board on whether the Annual Financial Report, taken as a whole, is fair balanced and understandable and provides the information necessary for shareholders to assess the company’s position and performance, business model and strategy.

• Reviewing compliance with accounting standards and law and regulations including the Companies (Jersey) Law 1991 and the FCA’s Listing and Disclosure Guidance and Transparency Rules.

• Completing regular risk management reviews of internal controls, which include the review of the Fund’s Risk Register.

• Reviewing the effectiveness of the Company’s system of internal controls, including financial, operating, compliance, fraud and risk management controls and making and reporting to the Board any recommendations that may arise.

• Considering the major findings of internal investigations and making recommendations to the Board on appropriate action.

• Ensuring that arrangements exist whereby service providers and management may raise concerns over irregularities in financial reporting or other matters in confidence and that such concerns are independently investigated and remediated with appropriate action.

The Audit Committee, having reviewed the effectiveness of the internal control systems of the Administrator on a quarterly basis, and having regard to the role of the Auditor, does not consider that there is a need for the Company or Fund to establish its own internal audit function. The Administrator does however provide the Company’s compliance officer, who monitors the Company’s compliance with applicable laws and regulations and reports directly to the Board of directors on a quarterly basis.

Some of the principal duties of the Audit Committee are to consider the appointment of the Auditor, to discuss and agree with the Auditor the nature and scope of the audit, to review the scope of and to discuss the results and the effectiveness of the audit and the independence and objectivity of the Auditor, to review the Auditor’s letter of engagement and management letter and to analyse the key procedures adopted by the Company’s outsourced service providers including the Administrator and Custodian. The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of the Company’s and its service provider’s internal control and risk management systems. The Company’s risk assessment focus and the way in which significant risks are managed is a key area for the Committee. Work here was driven by the Committee’s assessment of the risks arising in the Company’s operations and identification of the controls exercised by the Board and its delegates, the Investment Manager and other service providers. These are recorded in the Company’s business risk matrix which continues to serve as an effective tool to highlight and monitor the principal risks.

The Board also received and considered, together with representatives of the Investment Manager, reports in relation to the operational controls of the Investment Manager, Administrator, Custodian and Registrar. These reviews identified no issues of significance. The risks relating to the Company (including the Fund) are discussed by the directors and documented in detail in the minutes of each meeting.

The Audit Committee is also responsible for overseeing the Company’s relationship with the Auditor, including making recommendations to the Board on the appointment and re-appointment of the Auditor and its remuneration.

Significant Matters

The significant matters that were subject to specific consideration in 2024 by the Committee and consultation with the Auditor where necessary were as follows:

Valuation and ownership of securities

There is a risk that the securities are incorrectly valued due to factors including low volume traded securities and errors in third party prices.

Valuation of securities – at each valuation point, a price tolerance check is run.

The following exceptions require further investigation:

• Prices outside the stated tolerance levels: Price movements need to be justified to underlying support.

• Stale prices: These need to be traced and agreed to support to ensure prices are not stale. Stale prices are escalated as per the pricing policy after being static for more than 7 days.

• Zero prices: Prices for these securities need to be investigated and added if applicable.

There is also the risk that the securities are not directly owned by the Fund, which may be caused by errors in the recording of trade transactions.

Ownership of securities – at each valuation point a stock reconciliation is performed, which entails tracing and agreeing the stock holding at valuation point to the Custodian records.

Any differences are investigated.

All new trades are traced and agreed to the contract note.

Allocation to Capital and Revenue

The Directors have made the critical judgement to allocate a proportion of management fees and finance to capital. This has been allocated 60% to capital and 40% to revenue.

This has been done in accordance with the Association of Investment Companies’ Statement of Recommended Practice for Investment Trusts Companies.

The Audit Committee challenged the allocation of charges between capital and revenue by comparing it with the policies of other companies in the AIC North American sector who allocate charges to both capital and revenue. MCT has a somewhat higher allocation to revenue than the peer group. Since MCT is the highest yielding fund in the sector, the Audit Committee considered the allocation to be appropriate following this review and discussion of the separate analysis provided by the Investment Manager.

Compliance with Regulatory Requirements

JTC Fund Solutions (Jersey) Limited as administrator works with the Board of directors to ensure that the Fund complies with its obligations under all applicable laws and regulations including, but not limited to:

• The Companies (Jersey) Law 1991

• The FCA’s listing rules, prospectus and disclosure guidance and transparency rules

• The AIC Code of Corporate Governance and

• The JFSC’s Codes of Practice for Certified Funds

• The Jersey Listed Fund Guide

Going Concern

The financial statements are prepared using the going concern basis based on the directors’ assessment that:

• The investment portfolio consists of listed investments that are highly realizable

• The Fund has sufficient liquidity in cash to meet all on-going expenses and repayments of external borrowings

• The directors have the option to reduce dividend payments if the need arises

The Investment Manager monitors the Fund’s investment portfolio daily and invests in listed securities that can be liquidated in a relatively short period of time. The Board monitors the Fund’s portfolio on a quarterly basis.

Auditor and Audit

The Auditor was first appointed on 1 October 2020 following a detailed tender process and the Auditor is subject to annual reappointment by shareholders at each Company AGM and Cell AGM. The Audit Committee considers the nature, scope and results of the Auditor’s work and monitors the independence of the Auditor. Formal reports are received at Board meetings from the Auditor on an interim and annual basis relating to the extent of their work. The work of the Auditor in respect of any significant audit issues and consideration of the adequacy of that work is discussed. The Audit Committee is pleased to report there have been no concerns regarding their performance or independence.

The Audit Committee assesses the effectiveness of the audit process. The Audit Committee receives a report from the Auditor which covers the principal matters that have arisen from the audit.

The Audit Committee meets with the Investment Manager and Administrator to discuss the extent of audit work completed to ensure all matters of risk are covered and assesses the quality of the draft financial statements prepared by the Administrator and examines the interaction between the Investment Manager and the Auditor to resolve any potential audit issues.

The Audit Committee has an active involvement and oversight of the preparation of both half yearly and annual financial reports and recommends for the purposes of the production of these financial reports that valuations are prepared by the management team of the Administrator. These valuations are a critical element in the Company’s financial reporting and the Audit Committee questions them thoroughly.

Ultimate responsibility for reviewing and approving the annual financial report remains with the Board.

Andrew Zychowski

Director

Date: 24 March 2025

General Shareholder Information

AIFMD Disclosures

In accordance with the AIFMD, the AIFM is required to disclose specific information in relation to the following aspects of the Company’s management:

Leverage and borrowing

Leverage is defined as any method by which the Company increases its exposure through borrowing or the use of derivatives. ‘Exposure’ is defined in two ways – ‘gross method’ and ‘commitment method’ – and the Company must not exceed maximum exposures under both methods. ‘Gross method’ exposure is calculated as the sum of all positions of the Company (both positive and negative), that is, all eligible assets, liabilities and derivatives, including derivatives held for risk reduction purposes. ‘Commitment method’ exposure is also calculated as the sum of all positions of the Company (both positive and negative), but after netting off derivative and security positions as specified by the Directive.

For the gross method, the following has been excluded:

• the value of any cash and cash equivalents which are highly liquid investments held in the base currency of the AIF that are readily convertible to a known amount of cash, subject to an insignificant risk of changes in value;

• that remain in cash or cash equivalent as defined above and where the amounts of that payable are known. The total amount of leverage calculated as at 31 December 2024 is as follows:

Gross method: 139.35% (31 December 2023: 130.13%)

Commitment method: 139.35% (31 December 2023: 130.13%)

Liquidity

The Investment Manager’s policy is that the Company should normally be close to fully invested (i.e. with liquidity of 5% or less) but this is subject to the need to retain liquidity for the purpose of the efficient management of the Company in accordance with its objectives. There may therefore be occasions when there will be higher levels of liquidity, for example following the issue of shares or the realisation of investments. This policy has been applied consistently throughout the review period and as a result the Investment Manager has not introduced any new arrangements for managing the Company’s liquidity.

Risk management policy note

Please refer to note 16, Financial instruments, in the Notes to the financial statements on pages 72 to 76 for risk management policies, where the current risk profile of the Company and the risk management systems employed by the Investment Manager to manage those risks are set out.

AIFM Remuneration

A total of 8 staff employed by the AIFM are engaged in managing the Fund. The compensation paid to these beneficiaries during the year under review was £275,000, split roughly equally between fixed and variable compensation. The Fund has no agreement to pay any carried interest to the AIFM.

General Data Key Investor

åDocument and Related Data

The Company has produced an EU Key Information Document (the “KID”), as required by the Packaged Retail and Insurance-Based Investment Products Regulations (the “PRIIPs Regulations”) and a UK KID under the UK’s amended version of the PRIIPs Regulations, together with a European PRIIPs Template and a European MiFID Template, all of which are available on the Company’s website.

The PRIIPs Regulations require the preparation and publication of the KID. Investors should note that the methodology for calculating the risks, costs and potential returns cited in the KID are prescribed by the PRIIPs Regulations. However, the methodology is considered by many market participants, including the AIC, to be flawed and future risks and returns may not transpire to be as cited in the KID. The Board therefore recommends that investors not make any investment or divestment decision based on the information contained in the KID.

Non-Mainstream Pooled Investment (‘NMPI’) Status

The Company currently conducts its affairs to maintain its status as an “excluded security” for the purposes of the FCA’s rules on “non-mainstream pooled investments” and intends to continue to do so. The Fund Shares are therefore excluded from the FCA’s restrictions which apply to non-mainstream pooled investments.

Performance Details/Share Price Information

Details of the Company’s share price and the net asset value per Fund Share can be found on the London Stock Exchange’s website. The net asset value is calculated and published daily, on the basis of the bid price of securities at closing.

Consumer Duty Value Assessment

Middlefield International Limited (“MIL”), as advisor to Middlefield Canadian Income PCC (“MCT”), has prepared an assessment of fair value based on the FCA’s guidelines which includes consideration of the fund’s relative performance, investment process, costs and charges, quality of service, comparable market rates and economies of scale. Based on this assessment, MIL has concluded that MCT is providing value to its investors. The assessment of value can be found on the website under Other Reports and Filings www.middlefield.co.uk.

Independent Auditor’s Report

TO THE MEMBERS OF MIDDLEFIELD CANADIAN INCOME – GBP PC, A CELL OF MIDDLEFIELD CANADIAN INCOME PCC

Opinion

We have audited the financial statements of Middlefield Canadian Income – GBP PC (the “Fund”), which comprise the Statement of Financial Position as at 31 December 2024, and the Statement of Comprehensive Income, Statement of Changes in Redeemable Participating Preference Shareholder’s Equity and Statement of Cash Flows for the year then ended, and notes 1 to 22 to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted International Financial Reporting Standards (‘IFRS’).

In our opinion the financial statements of Middlefield Canadian Income – GBP PC, a cell of Middlefield Canadian Income PCC:

give a true and fair view of the state of the Fund’s affairs as at 31 December 2024 and of its profit for the year then ended;

have been properly prepared in accordance with UK-adopted IFRS; and

have been prepared in accordance with the Companies (Jersey) Law 1991.

Separate opinion in relation to IFRS as adopted by the European Union

As explained in note 2a, in addition to complying with the Listing Rules obligation to apply UK-adopted IFRS, the Fund has also applied IFRSs as adopted by the European Union.

In our opinion the financial statements give a true and fair view of the financial position of the Fund as at 31 December 2024 and of its financial performance and cash flows for the year then ended in accordance with IFRS as adopted by the European Union.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in Jersey, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our approach to the audit

Our audit was scoped by obtaining an understanding of the Fund and its environment, including internal control, and assessing the risks of material misstatement. Audit work to respond to the risks of material misstatement was performed directly by the audit engagement team.

Our consideration of the control environment

The Fund has appointed JTC Fund Solution (Jersey) Limited to provide the accounting function. The accounting function has been subcontracted to JTC Fund Solutions (RSA) Pty Ltd (“JTC SA”). We have obtained JTC SA’s ISAE 3402 controls assurance report for the period 1 April 2023 to 31 March 2024 which summarises the suitability of design and implementation and operating effectiveness of controls. We have reviewed the report and considered the controls relevant to the accounting functions undertaken by JTC SA for the Fund in order to rely on controls. As the reporting date of the Fund is 31 December 2024, we have obtained correspondence issued by JTC SA confirming that there have not been any material changes to the internal control environment nor any material deficiencies in the internal controls to this date.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In addition to the matter described in the ‘material uncertainty related to going concern’ below, in arriving at our audit opinion, the key audit matter was as follows:

Key Audit Matter

How our scope addressed this matter

Ownership and valuation of Securities

The Fund’s securities (see note 3 and the schedule of securities) are included at fair value of £169,952,944 (2023: £146,643,502). The portfolio is made up of securities actively traded on recognised markets which are measured at fair value based on market prices and other prices determined with reference to observable inputs.

Although all of the securities are listed and have quoted market pricing data available which is used to value the securities, there is a risk of material misstatement that the securities may be incorrectly valued due to stale prices, low trading volumes or errors reported in third party prices. Where securities are not regularly traded there is a greater risk of material misstatement that the quoted price is not reflective of fair value and this should be taken into consideration in management’s assessment. Valuation has a significant impact on the net asset value of the Fund.

There is a risk that securities, a record of which is maintained by a third-party custodian, are not directly owned by the Fund.

Securities are held by the custodian. Ensuring that the custodian records all the securities correctly under the Fund’s name is critical since the investment portfolio represents the principal element of the financial statements, being the single largest asset on the Statement of Financial Position.

Our procedures on the valuation of securities included:

understanding the relevant controls around valuation;

testing 100% of the valuations of securities by agreeing the prices directly to independent third-party sources;

considering the trading history of securities to determine whether they have been frequently traded, and values at which they have been traded to consider whether the year-end prices are stale.

Our procedures on ownership of securities included:

obtaining an understanding of the relevant controls around custody of securities;

agreeing the holdings to independent third-party confirmations provided by the Fund’s custodian;

reviewing the ISAE 3402 controls assurance report of the custodian to consider the controls relevant to the custodial function.

Key observations
Based on the procedures, we concluded that the ownership and valuation of securities are appropriate.

Our application of materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and in evaluating the results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Materiality £2,870,000 (2023: £2,470,000).

Basis for determining materiality – Approximately 1.6% of the Fund’s total assets (2023: 1.6%).

Rationale for the benchmark applied – The reason for using total assets is that the key users of the financial statements are primarily focused on the valuation of the Fund’s assets. This approach remains consistent with the prior year.

Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected misstatements exceed the materiality for the financial statements as a whole. Performance materiality was set at 75% of materiality for the 2024 audit (2023: 75%). In determining performance materiality, we considered our understanding of the entity, including our assessment of the overall control environment.

Independent Auditor’s Report continued

Our application of materiality (continued)

Error reporting threshold

We agreed with the Audit Committee that we would report to them all audit differences in excess of £140,000 (2023: £120,000), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.

Material uncertainty relating to going concern

We draw attention to note 2n to the financial statements which indicates that the Fund’s ability to continue as a going concern is dependent on the outcome of the directors review of a number of strategic options for the future of the Fund, as described in note 2n. As stated in note 2n, these events presented by the directors indicate that a material uncertainty exists that may cast significant doubt on the Fund’s ability to continue as a going concern. Our opinion is not qualified in respect of this matter.

Given the material uncertainty identified by the directors, we considered going concern to be a key audit matter.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the Fund’s ability to continue to adopt the going concern basis of accounting, and in response to the key audit matter, included:

Considering the appropriateness of the directors’ conclusion in relation to the matters described in 2n and discussing this with the board;

Review of the directors’ statement in note 2n and their identification of any material uncertainties to the Fund’s ability to continue over a period of at least twelve months from the date of approval of the financial statements;

Consideration as part of our risk assessment of the nature of the Fund, its business model and related risks including where relevant the requirements of the applicable financial reporting framework and the system of internal control; and

Evaluation of the directors’ assessment of the Fund’s ability to continue as a going concern, including challenging the underlying data and key assumptions used to make the assessment, and evaluation of the directors’ plans for future actions in relation to their going concern assessment.

Other than the above, based on the work we have performed, we have not identified any material uncertainties, other than as disclosed in note 2n, relating to events or conditions that, individually or collectively, may cast significant doubt on the Fund’s ability to continue as a going concern for a period of at least twelve months from the date of approval of the financial statements.

In relation to the Fund’s reporting on how it has applied Listing Rule 6.6.6R and Listing rule 11.7.7R, we have nothing material to add or draw attention to in relation to the director’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in respect of these matters.

Independent Auditor’s Report continued

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies (Jersey) Law 1991 requires us to report to you if, in our opinion;

adequate accounting records have not been kept; or

the financial statements are not in agreement with the accounting records and returns; or

proper returns adequate for our audit have not been received from branches not visited by us; or

we have not received all the information and explanations we require for our audit.

Corporate governance statement

The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to the Fund’s compliance with the provisions of the Listing Rule 6.6.6R specified for our review.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement and Corporate Information is materially consistent with the financial statements or our knowledge obtained during the audit:

Directors’ statement with regards the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on pages 33 to 34;

Directors’ explanation as to its assessment of the entity’s prospects, the period this assessment covers and why the period is appropriate set out on pages 33 to 34;

Directors’ statement on fair, balanced and understandable set out on page 48;

Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 30 to 34;

The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on page 48; and

The section describing the work of the audit committee set out on pages 48 to 50.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Fund’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Fund or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Independent Auditor’s Report continued

Auditor’s responsibilities for the audit of the financial statements (continued)

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Fund to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is explained below.

The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we:

obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the Fund operates in and how the Fund is complying with the legal and regulatory frameworks;

inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected, or alleged instances of fraud;

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud having obtained an understanding of the effectiveness of the control environment; and

reviewed minutes of the Board and other Committees.

Independent Auditor’s Report continued

The extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

We also obtained an understanding of the legal and regulatory frameworks that the Fund operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK-adopted IFRS, Companies (Jersey) Law 1991, Codes of Practice for Certified Funds, Listing and Disclosure Transparency Rules and the AIC Code of Corporate Governance. The audit procedures performed included:

a review of the financial statement disclosures and testing to supporting documentation;

completion of disclosure checklists to identify areas of non-compliance; and

review of the financial statement disclosures by a specialist in the Listing and Disclosure Transparency Rules.

The area that we identified as being susceptible to material misstatement due to fraud was management override of controls. The audit procedures performed included:

testing the appropriateness of journal entries and other adjustments;

undertaking analytical procedures to identify unusual or unexpected relationships;

assessing whether the judgements made in determining accounting estimates, in particular in respect of the fair value of securities and the split between capital and revenue, are indicative of a potential bias; and

evaluation of the business rationale of any significant transactions that are unusual or outside the normal course of business.

Owing to the inherent limitations of an audit there is an unavoidable risk that some material misstatement of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK). However, the principal responsibility for ensuring that the financial statements are free from material misstatement, whether caused by fraud or error, rests with the directors who should not rely on the audit to discharge those functions.

In addition, as with any audit, there remains a higher risk of non-detection of fraud, as this may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other matters which we are required to address

Following the recommendation of the audit committee, we were appointed by the Board of directors on 1 October 2020 to audit the financial statements for the year ending 31 December 2020 and subsequent financial periods. The period of total uninterrupted engagement is 5 years, covering the years ended 31 December 2020 to 2024.

No non-audit services have been provided to the Fund and we remain independent of the Fund in conducting our audit.

Our audit opinion is consistent with our reporting to the audit committee we are required to provide in accordance with ISAs (UK).

Use of our report

This report is made solely to the Fund’s members, as a body, in accordance with Article 113A of the Companies (Jersey) Law 1991. Our audit work has been undertaken so that we might state to the Fund’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Fund and the Fund’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Crosby

For & on behalf of

RSM Channel Islands (Audit) Limited

Chartered Accountants and Recognized Auditors

Jersey, C.I.

Date: 24 March 2025

Financial Statements

Statement of Financial Position of the Fund

As at 31 December 2024

	Notes	2024 GBP	2023 GBP
Current assets
Securities (at fair value through profit or loss)	3 & 22	169,952,944	146,643,502
Accrued dividend income		743,674	632,412
Prepayments		20,324	21,787
Cash and cash equivalents	4	1,345,531	4,433,118
		172,062,473	151,730,819
Current liabilities
Other payables and accruals	5	(434,929)	(388,493)
Interest payable		(48,282)	(71,270)
Loan payable	14	(28,884,872)	(21,831,966)
		(29,368,083)	(22,291,729)
Net assets		142,694,390	129,439,090
Equity attributable to equity holders
Stated capital	6	49,661,314	49,704,414
Retained earnings		93,033,076	79,734,676
Total Shareholders’ equity		142,694,390	129,439,090
Net asset value per redeemable participating preference share (pence)	7	134.05	121.55

The financial statements and notes on pages 60 to 80 were approved by the directors on 24 March 2025 and signed on behalf of the Board by:

Michael Phair Andrew Zychowski

Director Director

The accompanying notes on pages 64 to 80 form an integral part of these financial statements.

Statement of Comprehensive Income of the Fund

For the year ended 31 December 2024

	Notes	Revenue GBP	Capital GBP	2024 Total GBP	2023 Total GBP
Revenue
Dividend income	8	9,017,257	–	9,017,257	9,004,249
Interest income	8	85,246	–	85,246	91,389
Net movement in the fair value of securities (at fair value through profit or loss)	9	–	12,852,158	12,852,158	(6,799,595)
Net movement on foreign exchange		–	1,579,028	1,579,028	698,809
Total revenue		9,102,503	14,431,186	23,533,689	2,994,852
Expenditure
Investment management fees	2o	375,146	562,719	937,865	916,770
Custodian fees	2l	16,316	–	16,316	15,323
Corporate Broker’s fees	2m	67,175	–	67,175	65,483
Directors’ fees and expenses		146,631	–	146,631	154,809
Legal and professional fees		11,697	–	11,697	6,558
Audit fees		39,000	–	39,000	39,000
Tax fees		6,948	–	6,948	7,560
Registrar’s fees		49,496	–	49,496	44,779
Administration and secretarial fees	2k	133,981	–	133,981	130,967
General expenses		160,156	–	160,156	190,771
Investor relations fee	2u	173,211	–	173,211	170,748
Operating expenses		1,179,757	562,719	1,742,476	1,742,768
Net operating profit before finance costs		7,922,746	13,868,467	21,791,213	1,252,084
Finance costs	2r	(602,287)	(903,431)	(1,505,718)	(1,570,018)
Profit/(loss) before tax		7,320,459	12,965,036	20,285,495	(317,934)
Withholding tax expense	12	(1,343,801)	–	(1,343,801)	(1,341,655)
Net profit/(loss) after taxation		5,976,658	12,965,036	18,941,694	(1,659,589)
Profit/(loss) per redeemable participating preference share – basic and diluted (pence)	10	5.61	12.18	17.79	(1.56)

The total column of this statement represents the Fund’s Statement of Comprehensive Income, prepared in accordance with UK- adopted IFRS. There are no items of other comprehensive income, therefore net profit/(loss) after taxation is the total comprehensive income. The supplementary revenue and capital columns are both prepared in accordance with the Statement of Recommended Practice issued by the AIC as disclosed in note 2a. All items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year.

There are £nil (2023: £nil) earnings attributable to the management shares.

The accompanying notes on pages 64 to 80 form an integral part of these financial statements.

Statement of Changes in Redeemable Participating Preference Shareholders’ Equity of the Fund

For the year ended 31 December 2024

	Notes	Stated Capital Account GBP	Retained Income GBP	Total GBP
At 1 January 2023		49,704,414	86,931,602	136,636,016
Loss for the year		–	(1,659,589)	(1,659,589)
Dividends	11	–	(5,537,337)	(5,537,337)
At 31 December 2023		49,704,414	79,734,676	129,439,090
Buyback of shares during year	6	(43,100)	–	(43,100)
Profit for the year		–	18,941,694	18,941,694
Dividends	11	–	(5,643,294)	(5,643,294)
At 31 December 2024		49,661,314	93,033,076	142,694,390

The accompanying notes on pages 64 to 80 form an integral part of these financial statements.

Statement of Cash Flows of the Fund

For the year ended 31 December 2024

		2024	2023
	Notes	GBP	GBP
Cash flows from operating activities
Net profit/(loss) after taxation		18,941,694	(1,659,589)
Adjustments for:
Net movement in the fair value of securities (at fair value through profit or loss)	9	(12,852,158)	6,799,595
Realised gains on foreign exchange	2p	(1,401,441)	(1,345,395)
Unrealised (gains)/losses on foreign exchange	2p	(177,587)	646,586
Payment for purchases of securities		(64,019,103)	(46,058,637)
Proceeds from sale of securities		53,561,820	55,587,931
Operating cash flows before movements in working capital		(5,946,775)	13,970,491
Increase in receivables		(109,799)	(24,452)
Increase/(decrease) in payables and accruals		23,448	(152,089)
Net generated (used in)/from operating activities		(6,033,126)	13,793,950
Cash flows generated used in financing activities
Repayments of borrowings		(352,730,557)	(236,205,147)
Buyback of shares	6	(43,100)	–
New bank loans raised		361,474,806	230,999,895
Dividends paid	11	(5,643,294)	(5,537,337)
Net cash generated from/(used in) financing activities		3,057,855	(10,742,589)
Net (decrease)/increase in cash and cash equivalents		(2,975,271)	3,051,361
Cash and cash equivalents at the beginning of the year		4,433,118	1,523,392
Effect of foreign exchange rate changes		(112,316)	(141,635)
Cash and cash equivalents at the end of the year		1,345,531	4,433,118
Cash and cash equivalents made up of:
Cash at bank	4	1,345,531	4,433,118

The accompanying notes on pages 64 to 80 form an integral part of these financial statements.

Notes to the Financial Statements of the Fund

For the year ended 31 December 2024

1. General Information

The Company is a closed-ended investment company incorporated in Jersey on 24 May 2006 and is regulated for Financial Services Business by the JFSC. The Company has one closed-ended cell, Middlefield Canadian Income – GBP PC, also referred to as the “Fund”. The Fund seeks to provide shareholders with a high level of dividends as well as capital growth over the longer term. The Fund intends to pay dividends on a quarterly basis each year. The Fund seeks to achieve its investment objective by investing predominantly in the securities of companies and REITs domiciled in Canada and the U.S. that the Investment Manager believes will provide an attractive level of distributions, together with the prospect for capital growth. In 2015, shareholders also approved an amendment to the Investment Policy to increase the percentage of the value of portfolio assets which may be invested in securities listed on recognised stock exchanges outside Canada to up to 40 per cent.

The address of the Company’s registered office is 28 Esplanade, St. Helier, Jersey JE2 3QA, Channel Islands.

The Fund’s shares have been admitted to the Official List of the FCA and to trading on the London Stock Exchange’s Main Market for listed securities.

The Company and Fund have no employees.

The functional and presentational currency of the Company and the Fund is Pounds Sterling (‘GBP’) as the Fund is trading on the London Stock Exchange’s Main Market.

2. Summary of Material Accounting Policy Information

a. Basis of preparation

The financial statements of the Fund have been prepared on the historical cost basis, except for the measurement at fair value of investments and derivatives, and in accordance with UK-adopted IFRS and interpretations issued by the IFRSIC. The preparation of the Financial Statements in conformity with IFRS requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting year. Although these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates.

Where presentational guidance set out in the SORP Financial Statements of Investment Trust Companies and Venture Capital Trusts (July 2022) issued by the AIC is consistent with the requirements of IFRS, the directors have prepared the Financial Statements on a basis compliant with the recommendations of the SORP. The supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and a capital nature is presented in accordance with the SORP.

The financial statements are prepared in accordance with UK-adopted IFRS as required by the UK Listing and the Disclosure Guidance and Transparency Rules. Companies (Jersey) Law 1991 prescribes which generally accepted accounting principles are allowed to be adopted by Jersey market traded companies in the preparation of their annual financial statements.

Critical accounting estimates and judgements

The preparation of the Financial Statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies.

The following are the critical judgements that the directors have made in the process of applying the accounting policies that have the most significant effect on the amounts recognised in the financial statements.

Expenses have been charged to the Statement of Comprehensive Income and shown in the revenue column. Management fees and finance costs have been allocated 60% to capital and 40% to revenue. This is in accordance with the Board’s expected long-term split of returns, in the form of capital gains and income respectively, from the investment portfolio.

There were no judgements made in relation to the fair value of the investments, as all investments are quoted.

Adoption of new standards and amendments

The following amendments to existing standards that are effective for the first time for the financial period beginning 1 January 2024 that have had an immaterial impact on the Company and the Fund:

Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)

The Company has adopted the amendments to IAS 1 for the first time in the current period. The amendments change the requirements in IAS 1 regarding disclosure of accounting policies. The amendments replace all instances of the term ‘significant accounting policies’ with ‘material accounting policy information’. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.

The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material.

The IASB has also developed guidance and examples to explain and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2.

Amendments to IAS 1 Classification of Liabilities as Current or Non-current

The group has adopted the amendments to IAS 1, published in January 2020, for the first time in the current year.

The amendments affect only the presentation of liabilities as current or non-current in the statement of financial position and not the amount or timing of recognition of any asset, liability, income or expenses, or the information disclosed about those items.

The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and introduce a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.

Amendments to IAS 1 Presentation of Financial Statements Non-current Liabilities with Covenants

The group has adopted the amendments to IAS 1, published in November 2022, for the first time in the current year. The amendments specify that only covenants that an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date (and therefore must be considered in assessing the classification of the liability as current or non-current). Such covenants affect whether the right exists at the end of the reporting period, even if compliance with the covenant is assessed only after the reporting date (e.g. a covenant based on the entity’s financial position at the reporting date that is assessed for compliance only after the reporting date). The IASB also specifies that the right to defer settlement of a liability for at least twelve months after the reporting date is not affected if an entity only has to comply with a covenant after the reporting period. However, if the entity’s right to defer settlement of a liability is subject to the entity complying with covenants within twelve months after the reporting period, an entity discloses information that enables users of financial statements to understand the risk of the liabilities becoming repayable within twelve months after the reporting period. This would include information about the covenants (including the nature of the covenants and when the entity is required to comply with them), the carrying amount of related liabilities and facts and circumstances, if any, that indicate that the entity may have difficulties complying with the covenants.

The Company has adopted the amendments to IAS 8 for the first time in the current year. The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The definition of a change in accounting estimates was deleted.

There are no other standards, interpretations or amendments to the existing standards that are not yet effective that would be expected to have a significant impact on the Company.

New standards and interpretations not yet effective and have not been adopted early by the Company

• Amendments to IAS 21, ‘The Effects of Changes in Foreign Exchange Rates: Lack of exchangeability’. (effective periods commencing on or after 1 January 2025 for IFRS).

• Amendments to IFRS 9 and IFRS 7 ‘Amendments to the Classification and Measurement of Financial Instruments’. (effective periods commencing on or after 1 January 2026 for IFRS).

• IFRS 18 ‘Presentation and Disclosure in Financial Statements’. (effective periods commencing on or after 1 January 2027 for IFRS).

There are no other standards, interpretations or amendments to existing standards that are not yet effective that would be expected to have a significant impact on the Company.

b. Financial instruments

Financial instruments carried on the Statement of Financial Position include securities, accrued dividend income, cash at bank, loan payable, other payables and accruals. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item.

Disclosures about financial instruments to which the Fund is a party are provided in Note 16.

c. Securities

Investments in listed securities have been classified as fair value through profit or loss securities and are those securities intended to be held for a short period of time but which may be sold in response to needs for liquidity or changes in interest rates. These are held at fair value through profit or loss, as they are managed and the performance evaluated on a fair value basis.

Fair value through profit or loss securities are initially recognised as at fair value, which is taken to be the cost. The securities are subsequently re-measured at fair value based on quoted bid prices on the stock exchange at the reporting date. Gains and losses arising from changes in the fair value of these securities are recognised in profit or loss as they arise.

All purchases and sales of investments and trading securities that require delivery within the time frame established by regulation or market convention (“regular way” purchases and sales) are recognised at the trade date, which is the date on which the Fund commits to purchase or sell the asset. In cases which are not within the time frame established by regulation or market convention, such transactions are recognised on the settlement date. Any change in fair value of the asset to be received is recognised between the trade date and the settlement date.

d. Receivables

Trade and other receivables are recognised when the Fund becomes a party to the contractual provisions of the receivables. They are measured, at initial recognition, at fair value plus transaction costs, if any. They are subsequently measured at amortised cost. The amortised cost is the amount recognised on the receivable initially, minus principal repayments, plus cumulative amortisation (interest) using the effective interest method (except for short term receivables where the recognition of interest would be immaterial) of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.

e. Cash and cash equivalents

Cash includes amounts held in interest bearing accounts. Cash and cash equivalents comprise bank balances and cash held by the Fund. The carrying value of these assets approximates their fair value.

f. Prepayments

Prepayments comprise amounts paid in advance including, but not limited to, payments for insurance, listing fees and AIC membership fees. Payments are expensed to the Statement of Comprehensive Income over the period for which the Fund is receiving the benefit of these expenditures.

g. Provisions

A provision is recognised when the Fund has a legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligations.

h. Share capital

Redeemable participating preference shares are only redeemable at the sole option of the directors, participate in the net income of the Fund during its life and are classified as equity in line with IAS 32 Financial Instruments: Presentation (see Note 6). Buyback shares are measured at cost and deducted from equity. Transaction costs relating to buyback shares do not form part of cost of the buyback shares.

i. Net asset value per redeemable participating preference share

The NAV per redeemable participating preference share is calculated by dividing the net assets attributable to redeemable participating preference shareholders included in the Statement of Financial Position by the number of redeemable participating preference shares in issue at the year end.

j. Issue costs

The expenditure directly attributable to the launch of the Fund’s shares and all other costs incurred on the launch and subsequent issues of the Fund’s shares are written off immediately against proceeds raised.

k. Administration and secretarial fees

Under the provisions of the Administration Agreement dated 18 August 2011 between the Fund and JTC Fund Solutions (Jersey) Limited as Administrator, the Administrator is entitled to a fee for administrative and secretarial services payable by the Fund quarterly in arrears at a rate of 0.10 per cent. per annum of the average NAV of the Fund calculated over the relevant quarterly period.

l. Custodian fees

The Custodian was appointed as Custodian of the Fund’s assets on 6 October 2011. The Fund pays the Custodian 0.01 per cent. per annum of the Fund’s NAV, accrued for at each valuation date.

m. Corporate Broker’s fees

The Fund pays the Corporate Broker quarterly in arrears at a rate of 0.05 per cent. per annum of the average NAV of the Fund calculated over the relevant period.

n. Going concern

In the opinion of the directors, the Company and the Fund have adequate resources to continue in operational existence for the foreseeable future being at least the next twelve months from the approval of these financial statements. For this reason, the Financial Statements have been prepared using the going concern basis.

The directors considered, inter alia, the following factors:

• ongoing shareholder interest in the continuation of the Fund;

• the Fund has sufficient liquidity in the form of cash assets to meet all on-going expenses;

• should the need arise, the directors have the option to reduce dividend payments in order to positively affect the Fund’s cash flows; and

• the Fund’s investments in Canadian and U.S. securities are readily realisable to meet liquidity requirements, if necessary.

The directors appreciate the severity of the current economic environment and continue to assess, in conjunction with the Investment Manager and the Investment Advisor, the situation and how it may impact the Company in the short and long term. The directors consider the Company to be well placed to withstand any significant adverse shocks and assume the going concern basis to be appropriate.

The requisition notice received by the Company on 10 February 2025 was for the approval by shareholders of the taking of all necessary steps to implement a scheme or process by which shareholders would become (or have the option to become) shareholders of a UK-listed open-ended investment company (or similar open-ended investment vehicle) implementing a substantially similar strategy to the Company. Such scheme or process could entail shareholders rolling into an existing or newly established UK-listed open-ended investment company (or similar open-ended investment vehicle), in either case managed by the Company’s existing investment manager or one of its affiliates.

Following consultation with a number of the Company’s largest shareholders including Saba, and following constructive discussions with Saba, on 21 February 2025 the Company announced that Saba had agreed to withdraw its requisition notice for a period of 60 days to enable the Company and its advisers to formulate proposals that are in the best interests of all shareholders.

At the current time, the Board is in the process of considering a number of strategic options in the best interests of shareholders as a whole. A further announcement regarding future proposals which the Company may put to shareholders will be made in due course. Although the Board is confident that the Company will have sufficient financial resources to meet its obligations due within twelve months from the date of approval of the financial statements, the uncertain future outcome of the Board’s deliberations indicates the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. Nevertheless, the Board believes that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

o. Investment management fees

The Investment Manager is entitled to a management fee payable by the Fund quarterly in arrears at a rate of 0.70 per cent. per annum of the average NAV of the Fund calculated over the relevant quarterly period.

Investment management fees for the year ended 31 December 2024 total £937,865 (31 December 2023: £916,770). The fee is split between the Investment Manager and the Investment Advisor at a ratio of 0.60 per cent: 0.10 per cent of the 0.70 per cent fee.

Investment management fees have been split 60% to capital and 40% to revenue (see note 2a for further details regarding the allocation of the management fees).

p. Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into Pound Sterling at exchange rates in effect at the reporting date. Realised and unrealised gains and losses on foreign currency transactions are charged or credited to the Statement of Comprehensive Income as foreign currency gains and losses. The cost of investments, and income and expenditure are translated into Pound Sterling based on exchange rates on the date of the transaction. Realised gains on foreign exchange currency transactions totalled £1,401,441 for the year (2023: gains of £1,309,333). Realised gains on forward exchange contracts totalled £ nil (2023: gains of £36,062). Unrealised gains on foreign currency translations totalled £177,587 (2023: losses of £646,586).

q. Revenue recognition

Dividend income arises from equity investments held and is recognised on the date investments are marked ‘ex-dividend’. Where the Company elects to receive dividends in the form of additional shares rather than cash, the equivalent to the cash dividend is recognised as income in revenue and any excess in value of the shares received over this is recognised in capital. Dividend income is shown gross of withholding tax. Interest income arises from cash and cash equivalents and quoted bonds and is recognised in the Statement of Comprehensive Income using the effective interest method.

Special dividends are reviewed on a case by case basis in determining whether the dividend is to be treated as revenue or capital. Amounts recognised as revenue will form part of the distributable revenue. Amounts recognised as capital are included in realised gains. The tax accounting treatment follows the treatment of the principal amount.

r. Loan payable and finance costs

Loan payable is initially measured at fair value and is subsequently measured at amortised cost using the effective interest rate method. The effective interest rate method is a method of calculating the amortised cost of a ﬁnancial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the ﬁnancial liability or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

s. Related parties

Related parties are individuals and companies who have the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions (see Note 13).

t. Business and geographical segments

The directors are of the opinion that the Fund is engaged in a single segment of business investing predominantly in securities and REITs domiciled in Canada and the U.S. to which the Fund is solely exposed and therefore no segmental reporting is provided.

u. Investor relations fee

The Investment Advisor and Investment Manager are paid an additional fee for investor relations services totalling as the lesser of 15 basis points of the market value of the Fund or £200,000 per annum, with the fee to be calculated daily based on the closing market value of the Fund and payable quarterly in arrears.

Investor relations fee for the year ended 31 December 2024 total £173,211 (31 December 2023: £170,748).

3. Securities (at fair value through profit and loss)

	2024	2023
	GBP	GBP
Quoted/listed Equities	169,952,944	146,643,502

Please refer to Note 22 for the Schedule of Investments.

4. Cash and cash equivalents

	2024	2023
	GBP	GBP
Cash at bank	1,345,531	4,433,118

Cash and cash equivalents comprise cash held by the Fund and bank balances with an original maturity of three months or less. The carrying value of these assets approximates their fair value.

5. Other payables and accruals

	2024	2023
	GBP	GBP
Investment management fees (Note 13)	254,113	220,372
Corporate Broker’s fees	18,151	15,741
Audit fees	39,000	39,000
Administration fees	36,302	31,481
General expenses	17,970	22,334
Registrar’s fees	10,286	9,466
Tax service fees	6,894	6,840
Custodian fees	3,560	3,148
Investor relations fee (Note 13)	48,653	40,111
	434,929	388,493

6. Stated capital

The authorised share capital of the Fund is split into two management shares of no par value and an unlimited number of redeemable participating preference shares of no par value, the latter of which are attributable solely to the Fund.

	No. of shares	GBP
Management shares issued
2 management shares of no par value issued at 100.00 pence each	2	2
At 31 December 2024 and 2023	2	2
Redeemable participating preference shares issued (excluding shares held in treasury)
At 31 December 2023	106,487,250	49,704,412
28 August 2024, 20,000 shares of no par value repurchased at £ 1.075 each	(20,000)	(21,500)
30 August 2024, 20,000 shares of no par value repurchased at £ 1.08 each	(20,000)	(21,600)
At 31 December 2024	106,447,250	49,661,312
Total		49,661,314

The holders of redeemable participating preference shares are entitled to receive in proportion to their holdings, all of the revenue profits of the Fund (including accumulated revenue reserves).

Each redeemable participating preference shareholder is entitled to one vote for each share held, provided all amounts payable in respect of that share have been paid.

Management shares are non-redeemable, have no right in respect of the accrued entitlement, and have no right to participate in the assets of the Fund on a winding-up. In all other respects, the management shares have the same rights and restrictions as redeemable participating preference shares. Each management share entitles the holder to one vote for each share held.

Redeemable participating preference shares are redeemed at the absolute discretion of the directors. Since redemption is at the discretion of the directors, in accordance with the provisions of IAS 32, the redeemable participating preference shares are classified as equity. The Fund will not give effect to redemption requests in respect of more than 25 per cent. of the shares then in issue, or such lesser percentage as the directors may decide.

At the year end, there were 18,235,000 (31 December 2023: 18,195,000) treasury shares in issue. Treasury shares have no value and no voting rights.

FCA regulation of ‘non-mainstream pooled investments’

On 1 January 2014, the FCA introduced rules relating to the restrictions on the retail distribution of unregulated collective investment schemes and close substitutes (non-mainstream pooled investments). UK investment trusts are excluded from these restrictions, as are other “excluded securities” as defined by the FCA.

As reported in last year’s annual report, the Board believes that the Company’s shares are “excluded securities” under the FCA’s definitions of such and, as a result, the FCA’s restrictions on retail distribution do not apply. This status is reviewed annually and the Board intends to conduct the Company’s affairs to retain such status for the foreseeable future.

Retained Earnings

This reserve records all net gains and losses and transactions with owners not recorded elsewhere. This reserve is available for distribution to the shareholders. Dividends paid to shareholders are recognised directly in this reserve.

7. Net asset value per redeemable participating preference share

The NAV per share of 134.05p (31 December 2023: 121.55p) is based on the net assets at the year end of £142,694,390 (31 December 2023: £129,439,090) and on 106,447,250 redeemable participating preference shares, being the number of redeemable participating preference shares in issue at the year end (31 December 2023: 106,487,250 shares).

8. Dividend and interest income

			2024
	Revenue	Capital	Total	2023
	GBP	GBP	GBP	GBP
Interest Income	85,246	–	85,246	91,389
Dividend income	9,017,257	–	9,017,257	9,004,249
	9,102,503	–	9,102,503	9,095,638

9. Net movement in the fair value of securities

			2024
	Revenue	Capital	Total	2023
	GBP	GBP	GBP	GBP
Gains on sale of securities	–	5,635,000	5,635,000	608,988
Gains/(losses) on the revaluation of securities at year end	–	7,217,158	7,217,158	(7,408,583)
Net movement in the fair value of securities (at fair value through profit or loss)	–	12,852,158	12,852,158	(6,799,595)

10. Profit/(loss) per redeemable participating preference share – basic and diluted

Basic profit/(loss) per redeemable participating preference share is calculated by dividing the net profit attributable to redeemable participating preference shares of £18,941,694 (31 December 2023: £1,659,589 loss) by the weighted average number of redeemable participating preference shares outstanding during the year of 106,473,698 shares (31 December 2023: 106,487,250 shares). The allocation between revenue and capital can be found on the Statement of Comprehensive Income of the Fund on page 61.

11. Dividends

Dividends of 1.325 pence per share were paid on a quarterly basis during the year in the months of January, April, July and October being 5.3 pence per share for the year and totalling £5,643,294 (31 December 2023: £5,537,337). On 31 January 2025 a dividend of £1,463,650 was paid of 1.375 pence per share. In accordance with the requirements of IFRS, as this was approved on 2 January 2025, being after the reporting date, no accrual was reflected in the 2024 Financial Statements for this amount of £1,463,650 (31 December 2023: £1,410,956).

Dividends payable in respect of the financial year, which is the basis on which the requirements of Section 1158/1159 of the Corporation Tax Act 2010 are considered (see note 12) comprise the dividends paid in April, July and October of the financial year together with the dividend paid in January following the financial year end. For 2024 these dividends amounted to 5.35 pence per share (for 2023: 5.225 pence per share)

12. Taxation

The Fund is subject to UK corporation tax at a rate of 25% (2023: 19% for three months and 25% for nine months of the year). The Company adopted UK tax residency on 11 October 2011. Since that date the Company has been managed in such a way as to be able to meet the conditions for approval as an investment trust under Section 1158 of the Corporation Tax Act 2010. As an investment trust, all capital gains are exempt from UK corporation tax. On 7 December 2012, the Company received approval from HM Revenue & Customs to be treated as an investment trust in accordance with Section 1158 of the Corporation Tax Act 2010 and will seek to remain so approved.

The Fund incurred £1,343,801 (2023: £1,341,655) of withholding tax on foreign dividends during the year and this expense has been included in the Statement of Comprehensive Income.

13. Related party transactions

The directors are regarded as related parties and key management personnel. Total directors’ fees earned during the year amounted to £126,000 of which £Nil was due at year end (2023: £125,215 of which £Nil was due at the year end). Each non-executive director, other than Mr. Orrico, earned a fee of £29,000 in respect of the financial year (2023: £29,000), the Chairman earned a fee of £36,000 (2023: £36,000) and the Chairman of the Audit Committee £32,000 (2023: £32,000). Mr Orrico waived any right to charge a fee in 2024 and 2023.

The directors held an interest in shares and received dividends during the year. Their interest in shares and the dividends received during the year are disclosed within the Directors’ Remuneration Report.

The Investment Advisor and Investment Manager are also regarded as a related party due to common ownership. Total management fees paid during the year amounted to £937,865 (2023: £916,770), of which £254,113 (2023: £220,372) was outstanding at 31 December 2024.

The Investment Advisor and Investment Manager are also paid an additional fee for investor relations services. The fee for the year ended 31 December 2024 amounted to £173,211 (31 December 2023: £170,748), of which £48,653 (2023: £40,111) was outstanding at 31 December 2024.

The fees for the above are all arm’s length transactions.

14. Loan payable

The Fund has a credit facility agreement with RBC whereby RBC provides a credit facility, with a maximum principal amount of the lesser of CAD 75,000,000 and 25 per cent. of the total asset value of the Fund. The credit facility was amended on 3 April, 2024 to replace Banker’s Acceptances with CORRA (Canadian Overnight Repo Rate Average administered and published by the Bank of Canada) loans.

At 31 December 2024, the amount drawn down under the credit facility was CAD 52,000,000 (GBP equivalent at amortised cost of £28,884,872) (31 December 2023: CAD 37,000,000 (GBP equivalent at amortised cost of £21,831,966)). The loan value of CAD 52,000,000 was made up of three loans as follows:

Issue date	Maturity date	Loan amount
12 December 2024	13 January 2025	CAD10,000,000
16 December 2024	15 January 2025	CAD10,000,000
18 December 2024	18 February 2025	CAD32,000,000

As at 31 December 2024, the interest paid on the Banker’s Acceptance and Term CORRA loans totalled £1,458,822 (year ended 31 December 2023 [Banker’s Acceptance only]: £1,388,175) with £48,282 accrued at year end.

Interest on Prime Loans is Prime Rate minus 0.35 per cent. In the case of Term CORRA loans, the Term CORRA rate plus 0.60 per cent. per annum is payable.

15. Security agreement

In connection with entry into the credit facility agreement, the Fund has entered into a general security agreement with RBC, pursuant to which the Fund has granted RBC interests in respect of collateral, being all present and future personal property, including the securities portfolio, as security for the Fund’s obligations under the credit facility agreement.

16. Financial instruments

Fair values

The carrying amounts of the investments, accrued income, other receivables, cash and cash equivalents, loan payable and other payables approximate their fair values.

Management of capital

The Investment Manager manages the capital of the Fund in accordance with the Fund’s Investment Objectives and Policy.

The capital structure of the Fund consists of proceeds from the issue of preference shares, loans and reserve accounts. The Investment Manager manages and adjusts its capital in response to general economic conditions, the risk characteristics of the underlying assets and working capital requirements. Generally speaking, the Fund will reduce leverage when investments are likely to decrease in value and will increase leverage when investment appreciation is anticipated. In order to maintain or adjust its capital structure, the Fund may borrow or repay debt under its Credit Facility or undertake other activities deemed appropriate under the specific circumstances. The Fund and the Company do not have any externally imposed capital requirements. However, the Fund is subject to bank covenants in respect of leverage and complied with those covenants for the whole of both 2024 and 2023.

Investment and trading activities

It is intended that the Fund will continue throughout its life to be primarily invested in a Canadian and U.S. equities portfolio. In 2015, the percentage of the value of portfolio assets which may be invested in securities listed on a recognised stock exchange outside Canada was increased to up to 40 per cent. At year end, 4.36% of the portfolio was invested in securities outside of Canada.

The Fund’s investing activities expose it to various types of risk that are associated with the financial instruments and markets in which it invests. The most important types of financial risk to which the Fund is exposed are market price risk, interest rate risk and currency risk.

Credit risk

Credit risk is the risk that an issuer or counterparty may be unable or unwilling to meet a commitment that it has entered into with the Fund.

The Fund’s principal financial assets are bank balances and cash, other receivables and investments as set out in the Statement of Financial Position which represents the Fund’s maximum exposure to credit risk in relation to the financial assets. The credit risk on bank balances is limited because the counterparties are banks with high credit ratings of A, A- and BBB+ assigned by Standard and Poor’s rating agency. All transactions in listed securities are settled upon delivery using approved brokers.

The risk of default is considered minimal as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligations. Where the Investment Manager makes an investment in debt or corporate securities, the credit rating of the issuer is taken into account to manage the Company’s exposure to risk of default. Investments in debt or corporate securities are across a variety of sectors and geographical markets, to avoid concentration of credit risk.

The Fund’s maximum exposure to credit risk is the carrying value of the assets on the Statement of Financial Position.

Market price risk

Market price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. The Fund’s exposure to market price risk is comprised mainly of movements in the value of the Fund’s investments.

It is the business of the Investment Manager to manage the portfolio and borrowings to achieve the best returns. The directors manage the risk inherent in the portfolio by monitoring, on a formal basis, the Investment Manager’s compliance with the Company’s stated Investment Policy and reviewing investment performance.

Country risk

On 17 January 2012, the FRC released “Responding to the increased country and currency risk in financial reports”. This update from the FRC included guidance on responding to the increased country and currency risk as a result of funding pressures on certain European countries, the curtailment of capital spending programs (austerity measures) and regime changes in the Middle East.

The Fund invests primarily in Canadian and U.S. securities. The Investment Manager monitors the Company’s exposure to foreign currencies on a daily basis. The Board has reviewed the disclosures and believes that no additional disclosures are required because the Canadian and U.S. economies are stable.

Fair value measurements

IFRS 13 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under IFRS 13 are as follows:

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; or

• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); or

• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgment by the Directors. The Directors consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The following tables present the Fund’s financial instruments by level within the valuation hierarchy as of 31 December 2024 and 31 December 2023:

	Level 1	Level 2	Level 3	Total
31 December 2024	GBP	GBP	GBP	GBP
Financial assets
Securities (at fair value through profit or loss)	169,952,944	–	–	169,952,944

	Level 1	Level 2	Level 3	Total
31 December 2023	GBP	GBP	GBP	GBP
Financial assets
Securities (at fair value through profit or loss)	146,643,502	–	–	146,643,502

The Fund holds securities that are traded in active markets. Such financial instruments are classified as Level 1 of the IFRS 13 fair value hierarchy. There were no transfers between Level 1, 2 and 3 in the year.

Market Price sensitivity

At 31 December 2024, if the market prices of the securities had been 30% higher with all other variables held constant, the increase in net assets attributable to holders of redeemable participating preference shares for the year would have been £50,985,883 (2023: £43,993,051) higher, arising due to the increase in the fair value of financial assets at fair value through profit or loss.

At 31 December 2024, if the market prices of the securities had been 30% lower with all other variables held constant, the decrease in net assets attributable to holders of redeemable shares for the year would have been equal, but opposite, to the figures stated above.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Fund’s interest rate sensitive assets and liabilities mainly comprise cash and cash equivalents, debt securities and loan payable. The cash and cash equivalents are subject to floating rates and are considered to be part of the investment strategy of the Fund. No other hedging is undertaken in respect of this interest rate risk.

There were no fixed rate assets or liabilities at 31 December 2024 and 31 December 2023.

The following table details the Fund’s exposure to interest rate risk at 31 December 2024 and 31 December 2023:

	Floating rate assets
	Weighted		Weighted
	average interest	2024	average interest	2023
	at year end	GBP	at year end	GBP
Assets
Floating rate assets
Cash and cash equivalents	*	1,345,531	*	4,433,118
		1,345,531		4,433,118

* Interest on bank balances is not material to the financial statements and are based on prevailing bank base rates.

	Floating rate liabilities
	2024	2023
	GBP	GBP
Liabilities
Floating rate liabilities
Loan payable (See Note 14)	28,884,872	21,831,966
	28,884,872	27,831,966

The above analysis excludes short-term debtors and creditors as all material amounts are non-interest bearing.

Interest rate sensitivity analysis

At 31 December 2024, had interest rates been 50 basis points higher and all other variables were held constant, the Company’s net assets attributable to redeemable participating preference shares for the year would have decreased by £137,697 (31 December 2023: £86,994) due to an increase in interest payable on the loan and to a lesser extent an increase in interest earnings on cash and cash equivalents.

Liquidity risk

Liquidity risk is the risk that the Fund cannot meet its liabilities as they fall due. The Fund’s primary source of liquidity consists of cash and cash equivalents, securities at fair value through profit or loss and the credit facility.

The Fund’s investments are considered to be readily realisable, predominantly issued by Canadian and U.S. companies and REITs listed on a Canadian Stock Exchange and actively traded.

As at 31 December 2024, the Fund’s ability to manage liquidity risk was as follows:

	Less than		3 months to	More than
	1 month	1-3 months	1 year	1 year	Total
	GBP	GBP	GBP	GBP	GBP
Assets
Securities (at fair value through profit or loss)	169,952,944	–	–	–	169,952,944
Accrued dividend income	719,453	24,221	–	–	743,674
Cash and cash equivalents	1,345,531	–	–	–	1,345,531
	172,017,928	24,221	–	–	172,042,149
Liabilities
Other payables and accruals	(434,929)	–	–	–	(434,929)
Interest payable	(21,788)	(26,494)	–	–	(48,282)
Loan payable	(11,109,566)	(17,775,306)	–	–	(28,884,872)
	(11,566,283)	(17,801,800)	–	–	(29,368,083)
	160,451,645	(17,777,579)	–	–	142,674,066

As at 31 December 2023, the Fund’s ability to manage liquidity risk was as follows:

	Less than		3 months to	More than
	1 month	1-3 months	1 year	1 year	Total
	GBP	GBP	GBP	GBP	GBP
Assets
Securities (at fair value through profit or loss)	146,643,502	–	–	–	146,643,502
Other receivables	557,895	74,517	–	–	632,412
Cash and cash equivalents	4,433,118	–	–	–	4,433,118
	151,634,515	74,517	–	–	151,709,032
Liabilities
Other payables and accruals	(388,493)	–	–	–	(388,493)
Interest payable	(71,270)	–	–	–	(71,270)
Loan payable	(21,831,966)	–	–	–	(21,831,966)
	(22,291,729)	–	–	–	(22,291,729)
	129,342,786	74,517	–	–	129,417,303

Currency risk

The Fund is denominated in GBP, whereas the Fund’s principal investments are denominated in CAD and USD. Consequently, the Fund is exposed to currency risk. The Fund’s policy is therefore to actively monitor exposure to currency risk. The Board reserves the right to employ currency hedging but, other than in exceptional circumstances, does not intend to hedge. The Board considers that exposure was significant at the year end. The fund does not employ any derivative contracts to hedge against exposure to currency risk in line with the decision of the board of directors.

The Fund’s net exposure to CAD currency at the year end was as follows:

	2024	2023
	GBP	GBP
Assets
Securities (at fair value through profit or loss)	169,952,944	146,643,502
Cash and cash equivalents	757,724	4,193,885
Accrued income	743,674	632,412
	171,454,342	151,469,799

	2024	2023
	GBP	GBP
Liabilities
Loan payable	28,884,872	21,831,966
Interest payable	48,282	71,270
General expenses	–	–
	28,933,154	21,903,236

The Fund’s net exposure to USD currency at the year end was as follows:

	2024	2023
	GBP	GBP
Assets
Securities (at fair value through profit or loss)	–	–
Cash and cash equivalents	101,771	82,692
	101,771	82,692

Sensitivity analysis

At 31 December 2024, had GBP strengthened against the CAD by 5%, with all other variables held constant, the decrease in net assets attributable to shareholders would amount to approximately £7,126,059 (31 December 2023: £6,478,328). Had GBP weakened against the CAD by 5%, this would amount to an increase in net assets attributable to shareholders of approximately £7,126,059 (31 December 2023: £6,478,328).

At 31 December 2024, had GBP strengthened against the USD by 5%, with all other variables held constant, the decrease in net assets attributable to shareholders would amount to approximately £5,088 (31 December 2023: £4,135). Had GBP weakened against the USD by 5%, this would amount to an increase in net assets attributable to shareholders of approximately £5,088 (31 December 2023: £4,135).

17. Cash Flow statement reconciliation of financing activities

			Non-cash changes
				Foreign
	1 January			exchange	Fair value	31 December
	2024	Cash flows	Acquisition	movements	changes	2024
	GBP	GBP	GBP	GBP	GBP	GBP
Financial liabilities held at amortized cost	21,831,966	8,744,249	–	(1,691,343)	–	28,884,872
Total	21,831,966	8,744,249	–	(1,691,343)	–	28,884,872

			Non-cash changes
				Foreign
	1 January			exchange	Fair value	31 December
	2023	Cash flows	Acquisition	movements	changes	2023
	GBP	GBP	GBP	GBP	GBP	GBP
Financial liabilities held at amortized cost	27,877,663	(5,205,252)	–	(840,445)	–	21,831,966
Total	27,877,663	(5,205,252)	–	(840,444)	–	21,831,966

18. Post year end events

On 2 January 2025, the Company declared a quarterly dividend of 1.375 pence per share. The ex-dividend date was 9 January 2025 and the record date was 10 January 2025. On 31 January 2025, the dividend of £1,463,650 was paid.

No redeemable preference shares were purchased by the Company subsequent to year end.

The loan of CAD 10,000,000 maturing on 13 January 2025, was renewed with a current maturity date of 14 April 2025.

The loan of CAD 10,000,000 maturing on 15 January 2025, was renewed with a current maturity date of 14 April 2025.

The loan of CAD 32,000,000 maturing on 18 February 2025, was renewed with a maturity date of 18 March 2025. On 18 March 2025, CAD 2,000,000 was paid down, and CAD 30,000,000 was renewed with a maturity date of 17 April 2025.

These loans are expected to be renewed for another 30-60 days upon their respective maturities.

Since the Company’s year end, on 10 February 2025 the Company, together with three other UK-listed closed-end funds, received a requisition notice from Saba, marking the second phase of Saba’s recent activist campaign in the UK-listed closed-end fund sector. The first phase commenced on 18 December 2024 with Saba requisitioning general meetings at seven UK-listed closed-end funds, proposing resolutions (each of which later failed) to remove the current independent directors of those seven funds and replace them with Saba’s own appointees, with a view to also terminating the management contracts and, in due course, replacing the investment managers with Saba. The requisition notice received by the Fund on 10 February 2025 was for the approval by shareholders of the taking of all necessary steps to implement a scheme or process by which shareholders would become (or have the option to become) shareholders of a UK-listed open-ended investment company (or similar open-ended investment vehicle) implementing a substantially similar strategy to the Company. Such scheme or process could entail shareholders rolling into an existing or newly established UK-listed open-ended investment company (or similar open-ended investment vehicle), in either case managed by the Company’s existing investment manager or one of its affiliates. Following consultation with a number of the Company’s largest shareholders including Saba, and following constructive discussions with Saba, on 21 February 2025 the Company announced that Saba had agreed to withdraw its requisition notice for a period of 60 days to enable the Company and its advisers to formulate proposals that are in the best interests of all shareholders. At the current time, the Board is in the process of considering a number of strategic options in the best interests of shareholders as a whole. A further announcement regarding future proposals which the Fund may put to shareholders will be made in due course.

19. Controlling party

In the directors’ opinion there is no ultimate controlling party.

20. Contingent Liabilities

At 31 December 2024 there were no contingent liabilities, guarantees or financial commitments (2023: £nil)

21. Going Concern and Material Uncertainty

22. Schedule of Investments – Securities (at fair value through profit or loss)

As at 31 December 2024

			Bid-Market
		Book Cost	Value	% of	% of
Description	Shares/Units	GBP	GBP	Net Assets	Portfolio
Equities
Bermuda – Quoted Investments 4.36%
(2023: 0%)
Utilities:
Brookfield Infrastructure
Partners L.P.	180,000	4,337,056	4,523,371	3.17%	2.66%
Brookfield Renewable Partners L.P.	160,000	3,079,282	2,890,265	2.03%	1.70%
		7,416,338	7,413,636	5.20%	4.36%
Canada – Quoted Investments 95.64%
(2023: 100%)
Materials:
Nutrien Ltd.	135,000	5,334,935	4,814,331	3.37%	2.83%
Energy:
ARC Resources Ltd.	160,000	2,043,557	2,311,679	1.62%	1.36%
Canadian Natural Resources Ltd.	265,000	3,505,545	6,521,038	4.57%	3.84%
Cenovus Energy Inc.	140,000	1,724,436	1,694,542	1.19%	1.00%
Paramount Resources Ltd.	160,000	2,419,480	2,812,942	1.97%	1.66%
Parkland Corporation	120,000	2,301,990	2,164,366	1.52%	1.27%
Peyto Exploration & Development Corp.	365,000	2,684,145	3,467,018	2.43%	2.04%
Suncor Energy Inc.	100,000	2,432,647	2,844,049	1.99%	1.67%
Topaz Energy Corp.	315,000	2,923,886	4,852,075	3.40%	2.85%
Tourmaline Oil Corp.	220,000	8,765,732	8,103,429	5.68%	4.77%
Whitecap Resources Inc.	575,000	3,149,422	3,251,492	2.28%	1.91%
		31,950,840	38,022,630	26.65%	22.37%
Financials:
AGF Management Limited Class B	975,000	4,654,905	5,762,532	4.04%	3.39%
Bank of Montreal	85,000	5,280,172	6,576,197	4.61%	3.87%
Canadian Imperial Bank of Commerce	115,000	3,533,767	5,794,555	4.06%	3.41%
Manulife Financial Corporation	235,000	3,183,396	5,759,310	4.04%	3.39%
National Bank of Canada	45,000	2,113,561	3,269,295	2.29%	1.92%
Power Corporation of Canada	155,000	3,483,393	3,852,936	2.70%	2.27%
Royal Bank of Canada	65,000	4,915,407	6,256,102	4.38%	3.68%
The Bank of Nova Scotia	105,000	4,189,715	4,499,791	3.15%	2.65%
The Toronto-Dominion Bank	108,000	4,803,184	4,591,162	3.22%	2.70%
		36,157,500	46,361,880	32.49%	27.28%
Pipelines:
Enbridge Inc.	235,000	6,421,061	7,956,255	5.58%	4.68%
Gibson Energy Inc.	385,000	5,489,785	5,220,302	3.66%	3.07%
Keyera Corp.	150,000	1,980,830	3,648,659	2.56%	2.15%
Pembina Pipeline Corporation	180,000	3,827,050	5,310,262	3.72%	3.12%
South Bow Corporation	35,000	516,704	658,492	0.46%	0.39%
TC Energy Corporation	160,000	4,921,769	5,941,396	4.16%	3.50%
		23,157,199	28,735,366	20.14%	16.91%
Power and Utilities:
Alta gas Ltd.	200,000	2,877,589	3,711,706	2.60%	2.18%
Capital Power Corporation	140,000	2,463,033	4,943,646	3.46%	2.91%
		5,340,622	8,655,352	6.06%	5.09%
Real Estate:
Allied Properties Real Estate Investment Trust	165,000	1,741,388	1,567,282	1.10%	0.92%
Chartwell Retirement Residences	525,000	3,300,753	4,388,973	3.08%	2.58%
Choice Properties Real Estate Investment Trust	510,000	3,933,239	3,767,809	2.64%	2.22%
Dream Industrial Real Estate Investment Trust	480,000	3,416,733	3,143,563	2.20%	1.85%
First Capital Real Estate Investment Trust	400,000	4,133,660	3,755,033	2.63%	2.21%
Granite Real Estate Investment Trust	50,000	1,901,782	1,915,011	1.34%	1.13%
Nexus Industrial Real Estate Investment Trust	510,000	2,422,787	2,175,697	1.52%	1.28%
RioCan Real Estate Investment Trust	390,000	3,566,552	3,947,118	2.77%	2.32%
Sienna Senior Living Inc.	360,000	3,065,893	3,119,566	2.19%	1.84%
SmartCentres Real Estate Investment Trust	275,000	3,609,356	3,730,315	2.61%	2.19%
		31,092,143	31,510,367	22.08%	18.54%
Telecommunications:
BCE Inc.	240,000	8,116,899	4,439,382	3.11%	2.62%
Total Equities		148,566,476	169,952,944	119.10%	100.00%
Total investments (2024)		148,566,473	169,952,944	119.10%	100.00%
Total investments (2023)		132,440,939	146,643,502	113.28%	100.00%

Independent Auditors’ Report

To the Shareholders of Middlefield Canadian Income PCC (The “Company”)

Opinion

We have audited the financial statements of Middlefield Canadian Income PCC (the “Company”), which comprise the Statement of Financial Position as at 31 December 2024, and notes 1 to 4 to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted International Financial Reporting Standards (‘IFRS’).

In our opinion the financial statements:

give a true and fair view of the state of affairs of the Company as at 31 December 2024 and of its results for the year then ended;

have been properly prepared in accordance with UK-adopted IFRS; and

have been prepared in accordance with the Companies (Jersey) Law 1991.

Separate opinion in relation to IFRS as adopted by the European Union

As explained in note 1, in addition to complying with the Listing Rules obligation to apply UK-adopted IFRS, the Fund has also applied IFRS as adopted by the European Union.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of this report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Jersey, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to note 2n to the financial statements of the Fund which indicates that the Company’s ability to continue as a going concern is dependent on the outcome of the directors review of a number of strategic options for the future of the Fund and Company as described in note 2n. As stated in note 2n these events presented by the directors indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not qualified in respect of this matter.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the Company’s ability to continue to adopt the going concern basis of accounting, included:

Considering the appropriateness of the directors’ conclusion in relation to the matters described in 2n and discussing this with the board;

Review of the directors’ statement in note 2n and their identification of any material uncertainties to the Company’s ability to continue over a period of at least twelve months from the date of approval of the financial statements;

Consideration as part of our risk assessment of the nature of the Company, its business model and related risks including where relevant the requirements of the applicable financial reporting framework and the system of internal control; and

Evaluation of the directors’ assessment of the Company’s ability to continue as a going concern, including challenging the underlying data and key assumptions used to make the assessment, and evaluation of the directors’ plans for future actions in relation to their going concern assessment.

Other than the above, based on the work we have performed, we have not identified any material uncertainties, other than as disclosed in note 2n to the financial statements of the Fund, relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from the date of approval of the financial statements.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusions thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements of this other information, we are required to report that fact.

Independent Auditors’ Report continued

Other information (continued)

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies (Jersey) Law 1991 requires us to report to you if, in our opinion;

adequate accounting records have not been kept; or

the financial statements are not in agreement with the accounting records and returns; or

proper returns adequate for our audit have not been received from branches not visited by us; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors’ Responsibilities set out on page 40, the directors are responsible for the preparation of the financial statements in accordance with UK-adopted IFRS and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Independent Auditors’ Report continued

To the Shareholders of Middlefield Canadian Income PCC (The “Company”)

The extent to which the audit was considered capable of detecting irregularities, including fraud

However, it is the primary responsibility of the directors to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

We obtained an understanding of the legal and regulatory frameworks that the entity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. This included compliance with Companies (Jersey) Law 1991.

Our testing included:

enquiries of the directors regarding known or suspect instances of non-compliance with laws and regulations;

enquiries of the directors regarding known or suspect instances of irregularities, including fraud;

undertaking analytical procedures to identify unusual or unexpected relationships;

review of minutes of meetings throughout the year;

testing the appropriateness of journal entries and other adjustments; and

agreement of the financial statement disclosures to underlying supporting documentation.

Use of our report

This report is made solely to the Company’s shareholders as a body, in accordance with Article 113A of the Companies (Jersey) Law 1991. Our audit work has been undertaken so that we might state to the Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Crosby

For & on behalf of

RSM Channel Islands (Audit) Limited

Chartered Accountants and Recognised Auditors

Jersey, C.I.

Date 24 March 2025

Statement of Financial Position of the Company

As at 31 December 2024

		2024	2023
	Notes	GBP	GBP
Current assets
Other receivables		2	2
Net assets		2	2
Equity attributable to equity holders
Stated capital	2	2	2
Total Shareholders’ equity		2	2

The financial statements and notes on pages 84 to 85 were approved by the directors on 24 March 2025 and signed on behalf of the Board by:

Michael Phair Andrew Zychowski

Director Director

Notes to the Financial Statements of the Company

For the year ended 31 December 2024

1. Basis of accounting

The separate financial statements of the Company have been prepared showing results of the Company only. They have been prepared in accordance with UK-adopted IFRS in accordance with the accounting policies set out in Note 2 to the financial statements of the Fund.

A separate Statement of Comprehensive Income, Statement of Changes in Equity and Cash Flow Statement have not been prepared as there have been no results or cash flows for the Company for this year or the preceding year.

There are no standards and interpretations in issue but not effective that the directors believe would or might have a material impact on the financial statements of the Company.

Judgements and estimates used by the directors

The preparation of financial statements in compliance with IFRS requires the directors to make judgements, estimates and assumptions that affect the application of policies and reported amount of assets and liabilities, income and expenses. The estimates and associated liabilities are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent. For the purposes of these financial statements, there were no specific areas in which judgement was exercised and no estimation was required by the directors.

2. The Company’s stated capital

The authorised share capital of the Company is split into two management shares of no par value.

	No. of shares	GBP
Management shares issued
At 31 December 2024 and 2023	2	2

3. Taxation

The Company adopted UK tax residency on 11 October 2011. Since that date, the Company has been managed in such a way as to be able to meet the conditions for approval as an investment trust under Section 1158 of the Corporation Tax Act 2010. Accordingly, no UK tax has been provided for. On 7 December 2012, the Company received approval from HM Revenue & Customs to be treated as an investment trust in accordance with Section 1158 of the Corporation Tax Act 2010 and will seek to remain so approved.

4. Ultimate holding company

The ultimate holding company is Middlefield Limited.

Definitions

AGM Annual General Meeting

AIC The Association of Investment Companies

AIC Code The AIC Code of Corporate Governance published in February, 2019

AIF Alternative investment fund

AIFM Alternative investment fund manager

AIFMD Alternative Investment Fund Managers Directive

Annual Financial Report Annual report and financial statements

Auditor RSM Channel Islands (Audit) Limited

Benchmark The S&P TSX Composite High Dividend Index

CAD Canadian Dollar

Cell or Fund Middlefield Canadian Income – GBP PC

Cell AGM An annual general meeting of the holders of Fund Shares

Company or MCT Middlefield Canadian Income PCC

CORRA Canadian Overnight Repo Rate Average administered and published by the Bank of Canada

Credit Facility The on-demand credit facility with RBC

ESG Environmental, Social and Governance

EU European Union

FCA Financial Conduct Authority

FRC Financial Reporting Council

Fund Shares The redeemable participating preference shares of no par value in the Fund

GBP Great British Pounds or Sterling

IFRSIC International Financial Reporting Standards Interpretations Committee

IFRS International Financial Reporting Standards

JFSC Jersey Financial Services Commission

Listing Rules The listing rules made by the FCA under Part VI of the Financial Services and Market Authority

NAV Net Asset Value of the Company in GBP

Prime Loan Loans to which the Prime Rate can be applied

Prime Rate Annual interest rate set by Canada’s major banks and financial institutions

RBC Royal Bank of Canada

REIT Real estate investment trust

SID Senior Independent Director

SORP Statement of recommended practice

Term CORRA loan The amount drawn under the Credit Facility

UK Code The 2019 UK Corporate Governance Code published by the FRC in July 2018

USMCA Free trade agreement between the United States, Mexico and Canada

2 LR.11.2.6: No more than 10% of the Company’s total assets may be invested in other listed closed-ended investment companies unless such investment companies themselves have published investment policies to invest no more than 15% of their total assets in other closed-ended investment companies, in which case the limit is 15%.

Alternative Performance Measures

An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot be directly derived from the financial statements. The Company’s APMs are set out below and are cross-referenced where relevant to the financial inputs used to derive them as contained in other sections of the Annual Report.

Benchmark

The Company’s Benchmark index, used for performance comparative purposes, is the S&P/TSX Composite High Dividend Index. Prior to 31 October 2024, the Benchmark was calculated gross of withholding tax. Beginning 31 October 2024, the Benchmark is calculated net of a 15% withholding tax in sterling terms with dividends reinvested.

Discount or Premium

Investment trust shares can frequently trade at a discount to NAV. This occurs when the share price (based on the mid-market share price) is less than the NAV and investors may therefore buy shares at less than the value attributable to them by reference to the underlying assets. The discount is the difference between the share price and the NAV, expressed as a percentage of the NAV.

Net Asset Value (NAV) per Redeemable Participating Preference Share

This is the value of the Company’s assets attributable to one redeemable participating preference share. It is calculated by dividing ‘equity shareholders’ funds’ by the total number of redeemable participating preference shares in issue (excluding treasury shares).

Gearing/(Net Cash)

Investment companies can borrow to purchase additional investments. This is called ‘gearing’. It allows investment companies to take advantage of a long-term view on a sector or to take advantage of a favourable situation or a particularly attractive stock without having to sell existing investments. Gearing works by magnifying a company’s performance. If a company ‘gears up’ and then markets rise and returns on the investments outstrip the costs of borrowing, the overall returns to investors will be even greater. But if markets fall and the performance of the assets in the portfolio is poor, then losses suffered by the investor will also be magnified. The Company may achieve gearing through borrowings or the effect of gearing through an appropriate balance of equity capital and borrowings.

Ongoing Charges

Ongoing charges are those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital or revenue, and which relate to the operation of the investment company as a collective fund. Ongoing charges are based on costs incurred in the year as being the best estimate of future costs and include the annual management charge.

Yield

The yield is the amount of cash (in percentage terms) that is returned to the owners of the security, in the form of interest or dividends received from it. Normally, it does not include price variations, distinguishing it from performance (with dividends reinvested).

LONDON, ENGLAND

Middlefield International Limited

288 Bishopsgate

London, England

EC2M 4QP

Telephone +44 (0) 20 7814 6644

Fax +44 (0) 20 7814 66 11

TORONTO, CANADA

Middlefield Group

Suite 3100

8 Spadina Ave

Toronto, Ontario

Canada M5V 0S8

Telephone 001 (416) 362-0714

www.middlefield.co.uk

The MIL Network –

March 25, 2025

MIL-OSI New Zealand: Milestone moment as EIT Auckland celebrates largest ever graduation | EIT Hawke’s Bay and Tairāwhiti

Source: Eastern Institute of Technology – Tairāwhiti

23 seconds ago

Celebrations filled the Aotea Centre as EIT Auckland Campus held its largest ever graduation, with a record 216 students crossing the stage in front of proud family, friends and faculty.

To accommodate the growing number of graduates, two ceremonies were held – 96 students in the morning and 120 in the afternoon. The graduates, many of whom are international students, received postgraduate degrees and diplomas across a variety of disciplines at the ceremony on Tuesday (March 25).

The EIT Auckland Campus held its graduation ceremonies today.

EIT Auckland Campus Director Cherie Freeman congratulated the graduates and acknowledged the commitment and perseverance they had shown throughout their studies.

“This is a momentous occasion for our campus,” she said. “Not only is it our largest graduation to date, but it’s also a celebration of the incredible resilience, hard work and cultural diversity our students bring to EIT Auckland.”

Among those honoured were valedictorians Muddassar Khot, who graduated with a Master of Information Technology, and Mai Nguyễn, who graduated with a Master of Business. Both delivered heartfelt speeches reflecting on their academic journeys and the support of their peers, tutors and families.

EIT Auckland offers a selection of programmes in business, computing and health science, including the Master of Applied Management, Master of Digital Business, Master of Logistics and Supply Chain Management, Master of Information Technology, and Master of Health Science.

“Graduation is a special occasion not just for our students, but for everyone who has supported them along the way,” said Cherie. “We’re excited to see the impact our graduates will go on to make in their communities and industries.”

MIL OSI New Zealand News –

March 25, 2025
MIL-OSI China: Chinese universities boost, broaden AI courses amid tech boom

Source: People’s Republic of China – State Council News

BEIJING, March 25 — A course on large language models and generative AI at China’s elite Tsinghua University in Beijing has become very popular this new semester. One student even described it on social media as being “crazier than the Spring Festival travel rush.”

A classroom hosting this course was packed beyond capacity, with doorways, aisles, steps and even the space immediately outside filled with eager learners, some of whom stood for the entire two-hour session just to be part of it.

This frenzy came after Tsinghua’s launch of a program for all graduate students to boost AI skills, part of a broader national push to cultivate talent in cutting-edge fields amid rapid technological advancements.

AI, notably, is no longer confined to science and engineering — it has become a general education subject for students across disciplines.

“The integration of AI into university general education signifies that it has evolved into a universal technology for learning, researching and working,” said Wu Fei, director of the Institute of Artificial Intelligence of Zhejiang University in east China. “Mastering the use of AI is now a skill that everyone should acquire.”

In 2023, China’s Ministry of Education laid out a plan for optimizing emerging disciplines by 2025, in a quest to keep in touch with new technologies, emerging sectors and new business modes.

The recent government work report also emphasizes efforts to expand quality undergraduate education and accelerate the development of world-class universities and academic disciplines.

Accordingly, leading Chinese universities such as Tsinghua University, Wuhan University and Shanghai Jiao Tong University have announced plans to expand their enrollments in AI and related interdisciplinary fields to meet growing demands.

Medicine is one of the most closely integrated disciplines. Shanghai Medical College of Fudan University currently offers over 20 AI-related courses, which cover both essential computer theories and practical applications.

“Deep Learning in Medical Imaging” is one such course. The teaching team for this course consists of professors with backgrounds in biomedical engineering, who deeply understand the importance of interdisciplinary collaboration.

“AI is a highly specialized field. Without systematic learning, it would be extremely challenging for medical students to study it on their own,” said Song Zhijian, the course director and a professor from the School of Basic Medical Sciences at Fudan.

“After finishing each section, the programming instructors consistently verify whether we had grasped the content,” said Song Jiahao, an undergraduate who started his university studies in 2023. This student is currently working on a research project related to angiography, also known as radiography of blood vessels, which involves using image processing software and selecting appropriate images to train AI models.

“We will promote the deep integration of medicine and AI through interdisciplinary education — including the introduction of a smart medicine major in medical schools,” said Zhu Tongyu, vice president of the medical college, adding that the smart medicine program has been added to the list of Shanghai’s top 10 future disciplines.

While enhancing AI education, Chinese universities also place great emphasis on collaborating with industries and enterprises. For instance, Nanjing University in east China’s Jiangsu Province has worked closely with leading tech enterprises, such as Baidu and Huawei, to jointly develop intelligent tools that support AI-based teaching and assessment.

Chengdu-based Southwest Jiaotong University in southwest China’s Sichuan Province, meanwhile, has partnered with Amazon, JD.com and other companies in designing AI courses to enhance the practical skills of students. The university has also established a training system for top-tier AI talent, spanning undergraduate to doctoral levels.

China’s long-term vision for education was reinforced in January with the unveiling of a master plan concerning building the country into a leading nation in terms of education by 2035.

“DeepSeek and robotics represent China’s achievements in technological innovation and talent cultivation, while also placing new demands on our education development and talent training,” said China’s Minister of Education Huai Jinpeng.

The need is clear — job postings for drone engineers, algorithm engineers and machine learning positions saw a year-on-year increase of about 40 percent in February, according to a survey by Zhaopin, an online recruitment platform in China. Industry reports indicate that by 2030, China is likely to face a shortage of 4 million AI professionals.

Experts believe that fostering collaboration between universities and enterprises is key to bridging the gap between talent development levels and enterprise needs — while also enhancing university research via enterprise technology.

“Higher education in any country is a valuable resource for national strategy,” Huai said, adding that more efforts will be made to incorporate key fields, such as AI and biotechnology, to better align with national strategies and technological development.

MIL OSI China News –

March 25, 2025
MIL-OSI USA: NEW: Baldwin, Welch Announce Former NIH Director, Researchers, Clinical Trial Patients as Witnesses for Forum on Trump’s NIH Cuts
US Senate News:
Source: United States Senator for Wisconsin Tammy Baldwin

WASHINGTON, D.C. – Today, U.S. Senators Tammy Baldwin (D-WI) and Peter Welch (D-VT) announced the witnesses for their forum Wednesday, “Cures in Crisis: What Gutting NIH Research Means for Americans with Cancer, Alzheimer’s, & Other Diseases.” The forum will feature former Director of the National Institutes for Health (NIH), Dr. Monica Bertagnolli, M.D., two Alzheimer’s disease researchers from the University of Wisconsin-Madison and Emory University, and two patients who have benefitted from NIH clinical trials. The panelists will testify in front of Senators on how deep cuts, staffing layoffs, and delayed funding at NIH will impact life-saving research and outcomes for patients battling cancers, Alzheimer’s disease, ALS, and other serious illnesses.

Below are details of the forum:

WHEN:

Wednesday, March 26, 2025, 2:30pm EST

WHERE:

SD-106, Livestream available here

WHO:
- U.S. Senators
- Dr. Monica Bertagnolli, M.D., former Director of the NIH
- Dr. Sterling Johnson, PhD, University of Wisconsin-Madison Professor and Associate Director of Wisconsin Alzheimer’s Disease Research Center
- Dr. Whitney Wharton, PhD, Emory University Associate Professor and Alzheimer’s Disease researcher
- Dr. Larry Saltzman, M.D., retired physician living with leukemia and former Executive Research Director for the Leukemia and Lymphoma Society
- Mr. Jessy Ybarra, veteran living with ALS and Board of Trustees member for the ALS Association
“As Donald Trump and Elon Musk claim they want to ‘Make America Healthy Again,’ they are halting lifesaving research that gives Americans battling Alzheimer’s disease and cancer hope every day that they have a fighting chance at getting better,” said Senator Baldwin. “This week, we’re bringing together patients and researchers to spotlight who is impacted by their reckless cuts and encourage this Administration to immediately reverse course. Right now, we’re losing critical time we cannot get back for American families who are desperate for cures. It’s those families this Administration must answer to as they actively put the next generation of medical breakthroughs out of reach.”

Over the last two months, the Trump Administration has attacked, compromised, and gutted research at the NIH for lifesaving cures and treatments, including:
- Cutting Funding for Research Facilities: NIH announced last month that it was planning to arbitrarily cap indirect cost rates at 15%, which would slash billions of dollars in funding that helps research institutions, like the University of Wisconsin, operate their facilities and labs, pay staff, and buy equipment needed for groundbreaking work to find cures for diseases and treatments for patients.
- Stopping Funding for Alzheimer’s Disease: The Trump Administration is jeopardizing $65 million in funding for Alzheimer’s disease research at 14 research institutions across the country. 14 of the 35 Alzheimer’s Disease Research Centers (ADRCs) have had their funding halted because the Trump Administration continues to cancel NIH Advisory Council meetings, which are the final required step in the grant approval process.
- Terminating Grants for Lifesaving Research: The Trump Administration stopped all grant funding at NIH for ten days in February and is continuing to block funding for lifesaving disease research, like finding a cure for Alzheimer’s disease. This halt in funding is despite two court orders directing the Trump Administration to end its unlawful efforts to freeze all federal grants. This is in addition to Elon Musk indiscriminately terminating hundreds of active NIH grants every week, in direct defiance of federal court orders to stop NIH funding changes amid ongoing litigation.
- Gutting Critical Staff: Mass layoffs at HHS under Robert F. Kennedy, Jr.’s direction are impacting everything from research to clinical trials, including scientists, nurses, pharmacists, and experts tracking disease spread. Reports show the NIH is expected to cut between 3,400 and 5,000 positions from its workforce of 20,000.
NIH funding contributed to research for roughly 99 percent of drugs approved between 2010 and 2019, including heart medications, according to the Center for American Progress. The advocacy group United for Medical Research found that in fiscal year 2023, funding from the agency supported more than 410,000 jobs, with 10,000 NIH-supported jobs in some states. In that same year, NIH-funded research fueled nearly $93 billion in economic spending. Overall, the economic benefit of NIH funding is more than twice the investment made through NIH appropriations. For a breakdown of how much funding each state receives from the NIH, click here.
MIL OSI USA News –
March 25, 2025
MIL-OSI New Zealand: Caroline Flora reappointed as Chief Censor

Source: New Zealand Government

Minister of Internal Affairs Brooke van Velden has today announced that Caroline Flora has been reappointed as New Zealand’s Chief Censor.

“I am pleased to announce that Ms Flora has been reappointed for a three-year term of office as the Chief Censor in charge of the Office of Film and Literature Classification [the Classification Office]”, says Ms van Velden.

The Classification Office is responsible for classifying material, including films, video games, and streaming content published in New Zealand. It is also responsible for determining if certain content meets the threshold to be classified as objectionable, which makes it illegal to possess.

This is Ms Flora’s second term as Chief Censor. She has a background in law and has previously held senior roles and the Ministry of Health and New Zealand Police.

“Freedom of expression is very important to this Government, and to me personally. I have confidence that Ms Flora will continue to balance the right to freedom of expression with the role of protecting New Zealanders from exposure to abhorrent, illegal content, such as child sex abuse material.”

MIL OSI New Zealand News –

March 25, 2025
MIL-OSI Australia: Doorstop interview, Parliament House

Source: Australian Parliamentary Secretary to the Minister for Industry

Jim Chalmers:

Tonight’s Budget will be a responsible budget. It will help with the cost of living, strengthen Medicare and build Australia’s future. We know that cost of living is front of mind for most Australians, and it will be absolutely front and centre tonight in our Budget. Our economic plan is all about ensuring more Australians are working, earning more and keeping more of what they earn. And that’s the motivation behind the cost of living help that people will see in tonight’s Budget.

The Budget is about strengthening Medicare and the election will be an opportunity to secure it for the future. We’ve made a lot of progress together in our economy, but we know there’s more work to do because people are under pressure and the global economic environment is so uncertain.

But in this context and in this global economic environment, we’ve got inflation down, real wages and incomes are up, unemployment is very low, interest rates have started to come down, we’ve got the debt down and growth is rebounding solidly in our economy as well. So, we have made a lot of progress together and the Budget is about building on that progress together as well.

Our Budget and our economy are both now in much better condition than we found them 3 years ago. We’ve got the Liberal debt down by $177 billion, and that is saving Australians something like $60 billion in debt interest. We’ve helped engineer the biggest ever improvement in the budget in a single term, in dollar terms, a $207 billion improvement in the budget.

We’ve delivered 2 surpluses, we’ve shrunk the deficit for this year, we’ve engineered that $207 billion improvement – that means less debt and less debt interest at the same time. So that we can make room to strengthen Medicare and help with the cost of living and build Australia’s future as well. So, we have made good progress together as Australians. The Budget will reflect that. We do know that there’s more work to do because people are still under pressure and the global outlook is uncertain and it is challenging.

So, the Budget tonight will be a platform for prosperity in a new world of uncertainty. It will recognise that people need and deserve a bit more extra help when it comes to the cost of living. It will make our economy more resilient in the face of all of this global economic uncertainty. And I’m looking forward to telling you all about it tonight and to take some questions now, please.

Journalist:

Treasurer, what more cost‑of‑living relief can we expect in this Budget, especially for working Australians, and is this Budget about the next few weeks or the next few years?

Chalmers:

This is a budget to build Australia’s future. It strikes the right balance between helping people with the cost of living and investing in a more competitive, more productive and dynamic economy into the future so that we’re more resilient to these global shocks which are becoming a regular feature of the world’s economy. Despite all of this global economic uncertainty, the Australian economy is turning a corner.

We see that with lower inflation, higher real wages, low unemployment. We see that with growth rebounding solidly and we’ve been able to get the debt down and interest rates have started to be cut as well. So, we’ve made a lot of progress together. A big part of that progress is being willing in the first 3 budgets and again in the fourth to help people with the cost of living in the most responsible way we can.

Journalist:

Can you just clarify a bit about that? What do you mean about resilience? What measures are there to protect against that global uncertainty, and specifically tariffs that we are expecting Donald Trump to impose?

Chalmers:

Our best defence against global economic uncertainty is a more resilient economy. And that’s what the billions of dollars, for example, that we’re investing in green metals is all about. That’s what the modest amount of money that we’ll be devoting to the Buy Australia promotion is all about, but also making our economy more competitive and dynamic.

It’s unusual in budgets on the eve of an election for it to have proper economic reform. But you’ll see some economic reform in the Budget tonight, which will be all about making our economy more competitive so we can lift living standards and boost wages.

Journalist:

Treasurer, what’s in the Budget for northern New South Wales?

Chalmers:

You’ll see in the Budget that we’re very enthusiastic investors in all of our regions, including in northern New South Wales. We know that they’ve had an especially rough time, as have the good people of southeast Queensland in recent times. We’ve provisioned, for example, another $1.2 billion to rebuild local communities and some of that will flow to the Northern Rivers and northern New South Wales. And that’s because we know it’s a really beautiful, important part of Australia and we’ll invest in it enthusiastically once again.

Journalist:

If people are still under pressure Treasurer as you say, can’t you do a bit better than just $150 off these energy bills?

Chalmers:

You’ll see tonight how the cost‑of‑living package comes together. The energy rebates are an important part of the cost‑of‑living package, but not the only part. The Prime Minister announced the policy for even cheaper medicines on Thursday. The whole motivation of strengthening Medicare is because more bulk billing means less pressure on families.

We have shown a willingness and an enthusiasm to do what we responsibly can to help people with the cost of living. All of those measures reinforce each other. It’s not just energy rebates, it’s also cheaper medicines. But really one of the centrepieces of this Budget is Labor’s efforts to strengthen Medicare. The Budget is about strengthening Medicare and the election is Australians’ opportunity to protect it and safeguard it against Peter Dutton.

The election will be a referendum on Medicare and the Budget takes its responsibilities to strengthening Medicare very seriously. We created Medicare, we believe in it, we’re strengthening it by investing in bulk billing in record ways in tonight’s Budget.

Journalist:

Treasurer the full extent of Donald Trump’s tariffs won’t be known until April 2, to what extent have you been able to tuck measures away just in case. We won’t necessarily see announced today but are there in response if necessary?

Chalmers:

We’re not uniquely impacted by policy developments out of Washington D.C. but we’ve got a lot of skin in the game because we’re a trade exposed economy. And so we will continue to engage with the Americans, we’ll continue to stand up and speak for our interests. Our best defence against this global economic uncertainty is a more resilient, more competitive, more productive economy. And you’ll see that that is a major feature of tonight’s Budget.

Journalist:

Treasurer, it wasn’t anticipated that you would be handing down this budget were it not for a natural disaster we probably would be in a campaign by now. So, is this an election winning budget or an election losing budget?

Chalmers:

First of all, there are a series of assumptions in your question, Chloe, which I’m not necessarily going to come at. I’m really pleased that we get this opportunity, this rare opportunity, but welcome one, to hand down 4 budgets in a single parliamentary term – it hasn’t happened since the 1940s. But from my point of view, it’s a very welcome opportunity to put the economy front and centre on the eve of an election. This is not a budget for the election, it’s a budget to build Australia’s future.

But we want the economy to be front and centre. Our political opponents have spent all of their time trying to dismiss and diminish the progress that Australians have made together in our economy and none of their time coming clean on what their secret cuts will mean for Medicare, for the progress we’ve made together or that they will make people worse off. So, this is their big opportunity this week. We do expect the economy to be central to the election campaign and I think that’s a very good thing.

Journalist:

How does it feel to be returning to deficits tonight, if your last 2 were surpluses?

Chalmers:

When we came to office they were all deficits and we turned 2 of those into Labor surpluses. And because we did that, we have made a meaningful difference to debt. We’ve got $177 billion of Liberal debt down this year, saving Australians tens of billions of dollars in debt interest. So, we’ve delivered 2 surpluses in the first 2 years.

We’ve shrunk the deficit this year and we’re managing the economy and the budget in the most responsible way we can, given all of these pressures on people and coming at us from around the world. So the responsible economic management that we have made a hallmark, a defining feature of this government, would be unrecognisable to our predecessors. When we came to office, they were all deficits. We turned 2 of them into surpluses and we’ve shrunk the deficit this year as well.

Journalist:

On Medicare Treasurer, you said the election would be a referendum on Medicare. Does it not blunt your attack a little bit that the Opposition has already matched the cheaper medicines policy, they’ve matched the bulk billing, the $8.5 billion?

Chalmers:

We remember what Peter Dutton did when he was the Health Minister. He said before the election he was all for Medicare, and then after the election he tried to gut it. He tried to impose a GP tax and undermine universal Medicare in this country, which is one of the most important things we have going for us. The election will be a referendum on Medicare and the Budget will be about strengthening it. Peter Dutton and Angus Taylor have both said in different ways over the course of the last week or 2 that the best predictor of future performance is past performance.

That’s a pretty chilling admission from Dutton and Taylor because last time Dutton was the Health Minister, he went after Medicare and undermined it. He cut tens of billions of dollars out of health and so that’s the risk here. The reason they haven’t come clean on their secret cuts is because Peter Dutton’s secret cuts would interrupt the progress we’re making in the economy and make people worse off. And where that will be most consequential will be Medicare.

Journalist:

Treasurer, will taxes be higher or lower as a result of your budget?

Chalmers:

You’ll see tonight all of the figures when it comes to, for example, tax‑to‑GDP and the like. You see a lot of speculation before budgets. Not all of it is right. For example, one commentator was saying he expects this year tax‑to‑GDP to go up. You’ll see tonight the tax‑to‑GDP goes down in 24–25. You see predictions about gross debt this year not being correct.

And so I encourage you to pore over the numbers in the Budget tonight. What you will see is the impact of the tax cuts that are already flowing in the economy are helping to make sure that more Australians are working, earning more and keeping more of what they earn. That’s really the defining purpose of this government, in addition to strengthening Medicare. We’re managing the Budget in the most responsible way we can in the face of these external shocks. Tonight, you will see a Budget which is all about helping with the cost of living, strengthening Medicare and building Australia’s future.

I’ll see you later on. Thanks very much.

MIL OSI News –

March 25, 2025
MIL-OSI USA: Markey Joins Peters, Senate Committee Ranking Members in Demanding Immediate Review by Agency Inspectors General of Trump Administration’s Mass Dismissals of Federal Employees

US Senate News:

Source: United States Senator for Massachusetts Ed Markey

Senators Question Trump Administration Claims and Whether Actions Will Increase Waste and Abuse

Washington (March 21, 2025) – Senator Edward J. Markey (D-Mass.), Ranking Member of the Small Business and Entrepreneurship Committee joined Senator Gary Peters (D-MI), Ranking Member of the Senate Homeland Security and Governmental Affairs Committee, and 15 Senate Committee Ranking Members in sending a letter to the Inspectors General of 23 federal agencies, pressing for details on the impact of President Trump’s sweeping and unprecedented dismissal of tens of thousands of federal employees. The senators asked the Inspectors General to review the Trump Administration’s actions, citing potential violations of federal laws and procedures, which the senators warn could harm Americans’ access to vital government services and increase waste and abuse of taxpayer dollars.
“The decision to terminate thousands of employees across multiple federal agencies will impose undue hardship on millions of Americans who rely on their services,” wrote the Senators. “The loss of experienced agency staff may risk causing serious disruptions to nearly 73 million Americans who rely on the Social Security Administration (SSA) to administer retiree and disability benefits and 9.1 million veterans who depend on the Department of Veteran Affairs (V.A.), many of which rely on the V.A. for life saving medical treatments and care.”
Highlighting the devastating consequences of these mass firings, the senators underscored the Trump Administration’s layoffs have already disrupted critical operations at agencies that millions of Americans depend on for survival.
“Among the 2,400 employees fired from the V.A. since Mr. Trump’s inauguration are workers who purchase medical supplies, schedule appointments and arrange rides for patients to see their doctors,” wrote the Senators, citing a NY Times report. “Additionally, taxpayers seeking in-person assistance as they navigate the 2025 filing season may find the support centers they previously relied on completely relocated or shuttered. That risk is a direct consequence of the Administration’s mass dismissals and decision to terminate over 100 IRS offices with Tax Assistance Centers (TAC) – which provide free, in-person assistance for those seeking it.”
The senators are requesting that IGs examine whether these dismissals violated agency policies and assess the damage to agency missions, public safety, and national security, calling for an initial review to be completed within 60 days, with findings made available to the public to ensure transparency and accountability.
The letter was signed by U.S. Senators and Ranking Members Amy Klobuchar (D-MN), Committee on Agriculture, Nutrition, and Forestry, Kirsten Gillibrand (D-NY), Special Committee on Aging, Patty Murray (D-WA), Committee on Appropriations, Jack Reed (D-RI), Committee on Armed Services, Elizabeth Warren (D-MA), Committee on Banking, Housing, and Urban Affairs, Maria Cantwell (D-WA), Committee on Commerce, Science, and Transportation, Sheldon Whitehouse (D-RI), Committee on Environment and Public Works, Ron Wyden (D-OR), Committee on Finance, Jeanne Shaheen (D-NH), Committee on Foreign Relations, Bernie Sanders (I-VT), Committee on Health, Education, Labor, and Pensions, Dick Durbin (D-IL), Committee on the Judiciary, Richard Blumenthal (D-CT), Committee on Veterans’ Affairs, Martin Heinrich (D-NM), Committee on Energy and Natural Resources, and Jeff Merkley (D-OR), Committee on the Budget.
The full text of the letter can be found here.

MIL OSI USA News –

March 25, 2025
MIL-OSI USA: Medicaid Cuts Would Cost Money and Endanger Lives, Say Central WA Health Care Providers

US Senate News:

Source: United States Senator for Washington Maria Cantwell
03.21.25
Medicaid Cuts Would Cost Money and Endanger Lives, Say Central WA Health Care Providers
Medicaid, known in WA as Apple Health, would face significant cuts from GOP budget proposal to slash up to $880 billion from essential health care program
RICHLAND, WA – Today, U.S. Senator Maria Cantwell (D-WA), senior member of the Senate Finance Committee and ranking member of the Senate Committee on Commerce, Science, and Transportation, held a press conference with Central Washington health care professionals and providers to discuss the harms that would result from proposed cuts to Medicaid.
“Our health care system today does save money when we give people the freedom to see a doctor when they need to, instead of forcing them to wait until they absolutely have to,” said Sen. Cantwell. ”These attempts aren’t about reducing costs, they are literally about destroying our health care system.”
“It is a tsunami. And trust me, this is not a drill,” she continued. “This is a real proposal, and we have to wake up the American people, and certainly here in Central Washington, to the devastating impacts they could see if Medicaid was cut.”
“There’s very good evidence from multiple studies that preventive care delivers better quality of life, better health outcomes, at a lower overall cost,” said Dr. Richard Meadows, Chief Medical Officer, Providence Clinical Network. “The thought that somehow saving money by not funding Medicaid would be better for our country, it just does not make any financial sense, because we know from studies that if you wait and treat things later on it is far more expensive. People miss more time from work, they’re not able to be there for their families, and ultimately it costs all of us as taxpayers more money.”
Brenda Morgan, a Tri-Cities area home care provider, shared the story of her client, Samantha, an autistic young adult with a heart condition, who needs a feeding tube for meals and medications. “She wants me to ask you,” Morgan said, “’Why aren’t people thinking about us? Do they not know that I can’t survive without Medicaid?’”
Medicaid is the federal program that insures many low-income adults and children, pregnant people, seniors, and people with disabilities. Washington state’s Medicaid program, Apple Health, ensures that eligible Washingtonians can afford to seek health care and see providers when they need to. The program also ensures that hospitals receive reimbursements for the significant number of low-income people they serve. Medicaid paid for $3.36 billion in hospital care in Washington state in state fiscal year 2024. More than 1.9 million Washingtonians are enrolled in Medicaid.
In the 4th U.S. Congressional District, 70% of children and 24% of adults are covered by Medicaid / Apple Health.
In Washington state legislative district 16, which includes Richland, 60% of kids and 32% of the total population are covered by Medicaid / Apple Health.
In legislative district 8, which includes Kennewick and most of Benton County, 49% of kids and 26% of the total population are covered by Medicaid / Apple Health.
In Yakima County’s legislative district 15, 87% of kids and 51% of the population are covered by Medicaid / Apple Health. These are the highest numbers for any legislative district in the state.
On February 25, House Republicans voted to advance President Trump’s budget resolution, which proposes up to an $880 billion cut from Medicaid.
Last month, Sen. Cantwell released a snapshot report highlighting the impact that slashing Medicaid to fund tax cuts for corporations and the ultra-wealthy would have on Washington state’s health care system — especially in Central and Eastern Washington.
The other participants in today’s roundtable were Reza Kaleel, Chief Executive Southeast Washington Service Area Kadlec and Providence St. Mary; Regina Ahl, Director of Pharmacy, Tri-Cities Community Health; Dr. John Matheson, Chief Medical Officer, Kadlec Regional Medical Center; and Everett Maroon, Executive Director, Blue Mountain Heart to Heart.
Video of today’s entire press conference is HERE; video of Sen. Cantwell’s opening statement is HERE; photos are HERE; and a transcript of Sen. Cantwell’s opening statement is HERE.

MIL OSI USA News –

March 25, 2025
MIL-Evening Report: Why does my kid eat so well at childcare but not at home?
Source: The Conversation (Au and NZ) – By Nick Fuller, Clinical Trials Director, Department of Endocrinology, RPA Hospital, University of Sydney

Maria Symchych/Shutterstock

If you’ve ever picked up your child from childcare and wondered if they’re living a double life, you’re not alone.

Parents often receive rave reports from educators about kids’ adventurous eating habits, only to face a different reality at home, when the child who devoured a veggie-packed curry at lunchtime morphs into a fussy eater refusing anything but dinosaur-shaped chicken nuggets.

While this confusing behaviour is frustrating, it’s completely normal.

Here’s why it happens and what you can do.

How kids’ tastes and eating behaviour develops

To understand why kids eat differently in different settings, we need first to understand two factors that shape their tastes and food preferences:
1. Genetics. Our hunter-gatherer ancestors developed physiological responses for survival that are embedded in our genes and influence taste preferences from birth. These include developing “food fussiness” – a natural aversion to unfamiliar foods and bitter flavours to avoid ingesting toxins – and learning to seek palatable foods rich in natural sugars, fat and protein to avoid starvation.
2. Eating environment. As kids grow, their surroundings at mealtimes – namely carers’ eating habits, feeding practices, routines and social cues conveyed – shape what they actually eat and enjoy.
The interaction between these two factors drives how fussy kids will be, their likes and dislikes and how open they are to new foods.

Why eating behaviour differs between childcare and home

The simple reason kids may eat differently at childcare comes down to the eating environment. Here’s what typically makes childcare different to home:

1. Childcare has strict routines

Childcare runs to a strict schedule, teaching kids to expect meals and snacks at set times and places. Meals are also planned to ensure kids sit down to eat when they’re hungry, and food is offered for a limited time – factors that help kids focus on eating.

When mealtimes are less structured at home, it often leads to kids snacking, reducing their appetite at dinnertime. Distractions, like screens, also take kids’ attention away from eating.

2. Kids are exposed to peer influence and different role models

Kids are natural copycats, so seeing friends enjoying healthy food makes them more willing to try it. This behaviour is supported by a study showing that seating a preschooler who dislikes a vegetable next to a peer who enjoys it can gradually shift their preference, leading them to eat the previously disliked vegetable.

Additionally, the social nature of eating in a group setting encourages kids to try new foods and eat more.

Research also shows carers – who are trained to model enthusiasm for nutritious foods – shape healthy eating habits and help kids learn other valuable behaviours like table manners.

At home, time constraints and limited knowledge can make it harder for parents to model these same behaviours.

3. Childcare regularly exposes kids to new foods

At childcare, meals are carefully planned according to Australian Dietary Guidelines and are focused on exposing kids to new foods regularly and repeatedly to get them comfortable with different tastes and textures.

At home, busy family lives often lead to repetitive meal routines.

4. Kids are offered limited choices

At childcare, meals are planned with military precision and served without negotiation, teaching kids to try to eat what’s provided.

At home, mealtimes can involve high-stakes negotiations when kids refuse certain foods, leading parents to surrender and offer alternatives – a tactic that only reinforces fussy eating and teaches kids to hold out for favourite foods.

5. Kids are given some control over what they eat

Kids have very little control over their daily lives – we’re constantly telling them what to do and when they’ll do it.

However, one way kids assert control is by refusing to eat certain foods at home.

Childcare cleverly gives kids the control they seek, encouraging them to serve themselves from shared platters, making them more willing to try new foods.

6. Kids experience less attention and pressure

At home, we naturally focus on what our child is eating (and not eating) which makes mealtimes stressful for kids.

At childcare, kids don’t have an audience watching their every bite, so they feel less pressure, eat more freely and are more willing to try different foods.

Read more:
5 picky eating habits – and how to help your child overcome them

Six ways to bring childcare eating habits home

1. Stick to a strict routine

Serve meals around the same time each day and establish snack times, ensuring they’re two hours before mealtimes so your child sits down hungry and ready to eat. Your routine should include putting devices away so your child’s full attention is on eating.

2. Be a positive role model

Because kids observe and mimic what they see, if you show enthusiasm for trying new foods and healthy eating your child will do the same.

3. Get creative

Take a leaf out of childcare’s book and ensure your child’s plate features different colours, textures and flavours presented in fun ways to capture and hold their interest in new foods.

And just like childcare, do this regularly, as repeated exposure is key – it can take eight to ten exposures before your child will accept eating a new food.

4. Limit food choices (but in a fun way)

Offer limited choices but in a way that gives your child some control, like serving platter-style meals where they can choose what they want.

Don’t give into food demands. While it’s tempting to offer alternatives when meals are refused, this creates more problems than it solves, reinforcing food fussiness and narrowing their diet.

5. Encourage independence

Actively involve your child in meal preparation, asking them to pick healthy recipes, help you shop and complete simple tasks like washing veggies and mixing ingredients. This can make them curious to taste the meal they’ve helped prepare.

6. Make mealtimes stress-free

Prioritise sitting down to eat as a family and ensure mealtimes are relaxed and fun – especially when you’re introducing new foods – to create positive associations with healthy eating.

Nick Fuller is the author of Healthy Parents, Healthy Kids – a clinically proven blueprint to overcoming food fussiness.

A/Professor Nick Fuller works for the University of Sydney and RPA Hospital and has received external funding for projects relating to the treatment of overweight and obesity. He is the author and founder of the Interval Weight Loss program, and the author of Healthy Parents, Healthy Kids with Penguin Books.

– ref. Why does my kid eat so well at childcare but not at home? – https://theconversation.com/why-does-my-kid-eat-so-well-at-childcare-but-not-at-home-247447
MIL OSI Analysis – EveningReport.nz –
March 25, 2025
MIL-OSI USA: Before Confirmation Hearing, Warren Slams Top Military Health Nominee on Record of “Severe and Systemic” Problems

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
March 24, 2025
Keith Bass would be responsible for military health care system that provides care for over nine million active and retired servicemembers and their families
“Given your checkered past involving the disbursement of controlled substances within the [White House], and your failures in managing the CIA’s health care program, I am concerned that if you are confirmed, you will not be able to effectively manage the military health care system, placing care at risk for millions.”
Text of Letter (PDF)
Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), a member of the Senate Armed Services Committee, wrote to Mr. Keith Bass, nominee for Assistant Secretary of Defense for Health Affairs (ASD[HA]), demanding an explanation for the problems that occurred under his watch at the White House Medical Unit (WHMU) and the Central Intelligence Agency’s health care program.
Mr. Bass is scheduled to appear before the Senate Armed Services Committee for his nomination hearing on Thursday, March 27, 2025. If confirmed, Mr. Bass would be in charge of the Military Health System, which provides health care to approximately 9.5 million active and retired service members and their families, would become a top advisor at DoD on “force health protection policies, programs, and activities,” and oversee budgeting across the military health program. But his record raises serious concerns about his ability to fulfill the responsibilities of the role.
From 2013 to 2019, Mr. Bass oversaw the WHMU, overseeing care to the President, other senior officials, and their families. During his tenure, several complaints were filed against him for overseeing “an operation that widely dispensed sedatives and stimulants, among other concerns.” An independent investigation by the Department of Defense’s (DoD) Inspector General found that, under Bass’ tenure, the WHMU pharmacy operations had “severe and systemic problems” and was found to have violated federal law by handing out “sedatives such as Ambien and stimulants such as Provigil without proper prescriptions” to ineligible staff while “us[ing] aliases in electronic health records to disguise the patients’ identities and deliver free care in cases where the recipients wouldn’t be eligible.”
“At best, you were oblivious to the wide distribution of sedatives and stimulants by WHMU’s pharmacy operations and, in the worst case, you were complicit. Either scenario should disqualify you from serving as the ASD(HA),” said Senator Warren.
After leaving the WHMU, Mr. Bass served as Director of the Office of Medical Services (OMS) at the CIA, where he was reportedly “pushed out” because of his “messy” management, poor communication, “badly handl[ing] the surge of Covid-19 cases,” and “fumbling the agency’s handling of Havana Syndrome.”
“Your poor performance in this position casts doubt on your ability to serve in a position requiring broader management skills,” said Senator Warren.
“Given your checkered past involving the disbursement of controlled substances within the WHMU, and your failures in managing the CIA’s health care program, I am concerned that if you are confirmed, you will not be able to effectively manage the military health care system, placing care at risk for millions,” concluded Senator Warren.
Senator Warren asked Mr. Bass to explain his involvement in the illegal distribution of controlled substances at the White House, his knowledge of the “severe and systemic” problems at the WHMU, the issues during his tenure at the CIA, and asked him to commit to not lobby DoD after his service.

MIL OSI USA News –

March 25, 2025
MIL-OSI United Nations: 25 March 2025 Joint News Release Decades of progress in reducing child deaths and stillbirths under threat, warns the United Nations

Source: World Health Organisation

The number of children dying globally before their fifth birthday declined to 4.8 million in 2023, while stillbirths declined modestly, still remaining around 1.9 million, according to two new reports released today by the United Nations Inter-agency Group for Child Mortality Estimation (UN IGME).

Since 2000, child deaths have dropped by more than half and stillbirths by over a third, fuelled by sustained investments in child survival worldwide. In 2022, the world reached a historic milestone when child deaths dropped slightly below 5 million for the first time. However, progress has slowed and too many children are still being lost to preventable causes.

“Millions of children are alive today because of the global commitment to proven interventions, such as vaccines, nutrition, and access to safe water and basic sanitation,” said UNICEF Executive Director Catherine Russell. “Bringing preventable child deaths to a record low is a remarkable achievement. But without the right policy choices and adequate investment, we risk reversing these hard-earned gains, with millions more children dying from preventable causes. We cannot allow that to happen.”

Decades of progress in child survival are now at risk as major donors have announced or indicated significant funding cuts to aid ahead. Reduced global funding for life-saving child survival programmes is causing health-care worker shortages, clinic closures, vaccination programme disruptions, and a lack of essential supplies, such as malaria treatments. These cuts are severely impacting regions in humanitarian crises, debt-stricken countries, and areas with already high child mortality rates. Global funding cuts could also undermine monitoring and tracking efforts, making it harder to reach the most vulnerable children, the Inter-agency Group warned.

“From tackling malaria to preventing stillbirths and ensuring evidence-based care for the tiniest babies, we can make a difference for millions of families,” said Dr Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization. “In the face of global funding cuts, there is a need more than ever to step up collaboration to protect and improve children’s health.”

Even before the current funding crisis, the pace of progress on child survival had already slowed. Since 2015, the annual rate of reduction of under-five mortality has slowed by 42%, and stillbirth reduction has slowed by 53%, compared to 2000–2015.

Almost half of under-five deaths happen within the first month of life, mostly due to premature birth and complications during labour. Beyond the newborn period, infectious diseases, including acute respiratory infections such as pneumonia, malaria, and diarrhoea, are the leading causes of preventable child death. Meanwhile, 45% of late stillbirths occur during labour, often due to maternal infections, prolonged or obstructed labour, and lack of timely medical intervention.

Better access to quality maternal, newborn, and child health care at all levels of the health system will save many more lives, according to the reports. This includes promotive and preventive care in communities, timely visits to health facilities and health professionals at birth, high-quality antenatal and postnatal care, well-child preventive care such as routine vaccinations and comprehensive nutrition programmes, diagnosis and treatment for common childhood illnesses, and specialized care for small and sick newborns.

“Most preventable child deaths occur in low-income countries, where essential services, vaccines, and treatments are often inaccessible”, said Juan Pablo Uribe, World Bank Global Director for Health and Director of the Global Financing Facility. “Investing in children’s health ensures their survival, education, and future contributions to the workforce. With strategic investments and strong political will, we can continue to reduce child mortality, unlocking economic growth and employment opportunities that benefit the entire world.”

The reports also show that where a child is born greatly influences their chances of survival. The risk of death before age five is 80 times higher in the highest-mortality country than the lowest-mortality country, for example, while a child born in sub-Saharan Africa is on average 18 times more likely to die before turning five than one born in Australia and New Zealand. Within countries, the poorest children, those living in rural areas, and those with less-educated mothers face the higher risks.

Stillbirth disparities are just as severe, with nearly 80% occurring in sub-Saharan Africa and Southern Asia, where women are six to eight times more likely to experience a stillbirth than women in Europe or North America. Meanwhile, women in low-income countries are eight times more likely to experience a stillbirth than those in high-income countries.

“Disparities in child mortality across and within nations remain one of the greatest challenges of our time,” said the UN DESA Under-Secretary-General, Li Junhua. “Reducing such differences is not just a moral imperative but also a fundamental step towards sustainable development and global equity. Every child deserves a fair chance at life, and it is our collective responsibility to ensure that no child is left behind.”

UN IGME members call on governments, donors, and partners across the private and public sectors to protect the hard-won gains in saving children’s lives and accelerate efforts. Increased investments, service integration, and innovations are urgently needed to scale up access to proven life-saving health, nutrition, and social protection services for children and pregnant mothers.

Notes to editors

Download multimedia content here.

The UN IGME child mortality report The UN IGME stillbirth report

The two reports – Levels & Trends in Child Mortality and Counting Every Stillbirth – are the first of a series of important global data sets released in 2025. UN maternal mortality figures will be published in the coming weeks.

About UN IGME

The United Nations Inter-agency Group for Child Mortality Estimation or UN IGME was formed in 2004 to share data on child mortality, improve methods for child mortality estimation, report on progress towards child survival goals and enhance the capacity of countries to produce timely and properly evaluated estimates of child mortality. UN IGME is led by UNICEF and includes the World Health Organization, the World Bank Group and the Population Division of the United Nations Department of Economic and Social Affairs.

For more information:

http://www.childmortality.org/

MIL OSI United Nations News –

March 25, 2025
MIL-OSI United Kingdom: expert reaction to UKHSA’s new Priority Pathogens reference tool

Source: United Kingdom – Executive Government & Departments

March 25, 2025

Scientists comment on the UK Health Security Agency’s new Priority Pathogens reference tool for R&D funders.

Prof Martin Hibberd, Professor of Emerging Infectious Disease, London School of Hygiene & Tropical Medicine (LSHTM), said:

“I am pleased to see a guidance description for pathogens in a UK context being released, and that it will be up-dated yearly. As mentioned in the report, these lists cannot be comprehensive and different perspectives are likely to lead to different conclusions, but it’s release is likely to lead to more widespread consultations and honing of the findings for next year. While all the pathogen families are important, the three identified as priorities (Covid-19; Nipah virus; and avian influenza) are not surprising and I expect perhaps a more detailed, UK specific, priority list next year.”

Darius Hughes, UK General Manager at Moderna, said:

“This important work directly supports Moderna’s strategic partnership with the UK Government to strengthen national pandemic preparedness. By aligning our scientific innovation with the UKHSA’s priority pathogen list, we can help accelerate the development of vaccines where they are most urgently needed. This ensures our joint efforts are focused, forward-looking, and capable of responding rapidly to emerging biological threats—ultimately supporting the UK’s ambition to lead in global health security and protect public health through sustained innovation and collaboration.”

Prof Miles Carroll, Professor of Emerging Viruses, Pandemic Sciences Institute, University of Oxford, said:

“This new Priority Pathogen Families R&D Tool from UK Health Security Agency is aligned with similar prioritisation from the UK Vaccines Network and the World Health Organization, but with a UK focus for obvious reasons.

“The new R&D Tool is consistent with existing evidence, which is helping guide funders, policymakers and scientists on the most urgent research gaps in epidemic and pandemic pathogen threats. Tools like this are important if we are to develop effective diagnostics, vaccines and treatments to support the UK Biological Security strategy.”

Prof Robert Read, Professor of Infectious Diseases, University of Southampton, and Editor in Chief, Journal of Infection, said:

“Lists like this have been made for many years, and they represent an effort to prioritise infections for advisory and funding purposes, ostensibly to align research funding as closely as possible to public health need. Unfortunately, pathogens emerge or change constantly, and it is difficult to predict big infectious disease problems coming down the line. For this reason, I think this list is at best pointless, and at worst potentially harmful to the public health.

“Pointless because the list of viruses is so long that its tricky to name a significant viral pathogen that has not been included. Potentially harmful because a prescriptive list like this could misdirect funding towards certain infections, and away from problems that need urgently to be solved. For example, the list of bacteria of concern includes Yersinia pestis (the cause of plague, a massive problem in 14th-18th Century Europe) for which there is now good available treatment and potential vaccine candidates, but does not include Bordetella pertussis (the cause of Whooping Cough) which caused serious problems for the public during 2024 because vaccines remain sub-optimal and antibiotic treatment only works during the early phase.”

Prof Mark Woolhouse, Professor of Infectious Disease Epidemiology, and Director of the Tackling Infections to Benefit Africa, University of Edinburgh, said:

“A key recommendation of the UK Covid Inquiry’s Interim Report for Module 1 (Preparedness) was that prior to 2020 the UK was overly focussed on the risk of an influenza pandemic. When Covid arrived, it took too long to adjust our response to a different threat, which was part of the reason we ended up in lockdown.

“Since the pandemic, there have been many initiatives to better understand the diversity of pandemic threats that the UK and the world may face in the coming years. The UKHSA’s pathogen prioritization exercise is a welcome contribution to this global effort.

“Of the highest priority pathogens identified by the UKHSA, no one could argue with the inclusion of coronaviruses and influenza viruses (the latter being members of the Orthomyxoviridae family).

“The UKHSA are also right to be concerned about another family of viruses, the Paramyxoviridae. This is a group that includes the measles virus, itself a continuing cause for concern with large outbreaks regularly reported from around the world.

“A novel measles-like virus would pose a threat far worse than Covid. Such a virus would have a much higher R number than the original variants of Covid – making it impossible to control by even the strictest lockdown. It would also be considerably more deadly, and (unlike Covid) it would be a threat to children. This is the kind of pandemic that public health agencies around the world are most concerned about.

“That said, there are many potential kinds of novel pandemic threats – so-called Disease X – and the UKHSA report is a timely reminder that we should not put all our eggs in one basket. The possibility of different kinds of threat – different transmission routes, different types of disease, different populations at risk – means that our response needs to be scalable, adaptable and quick. Knowledge, information and data collected in the first few weeks of the next pandemic will be crucial to tailoring our response appropriately. We need the systems to gather that data in place in advance and ready to be activated, possibly at very short notice.”

‘Priority pathogen families research and development (R&D) tool: A reference tool to help guide England-based funders of research and development’ was published by the UK Health Security Agency at 00:01 UK time on Tuesday 25 March 2025.

Declared interests

Prof Mark Woolhouse: “I am a consultant for the Coalition for Epidemic Preparedness Innovation (CEPI) and a member of the Scottish Committee for Pandemic Preparedness (SCoPP).”

Prof Martin Hibberd: “I have no conflicts with this topic, but I do work on some of the pathogens listed and have been funded by Industry (most recently J&J) – amongst other government support, to work on them.”

Prof Miles Carroll: “I consult for PicturaBio diagnostics. I am a member of the WHO R&D BluePrint Pathogen Prioritisation Committee, UKVN, APHA SAB and MRC/UVRI SAB.”

Darius Hughes: In December 2023, Moderna entered a 10-year strategic partnership with the UK government to establish an mRNA research development and manufacturing facility in the UK. The strategic partnership is managed by the UK Health Security Agency on behalf of the UK government.

For all other experts, no reply to our request for DOIs was received.

MIL OSI United Kingdom –

March 25, 2025
MIL-OSI United Kingdom: New executive chair selected to boost innovation and growth across the UK
Source: United Kingdom – Executive Government & Departments 2

Press release

New executive chair selected to boost innovation and growth across the UK

Tom Adeyoola selected as preferred candidate to head up Innovate UK.
Tom Adeyoola appointed as new executive chair for Innovate UK to drive pioneering R&D and transformative technologies

Tech entrepreneur and Metail founder Tom Adeyoola selected as preferred head of Innovate UK as the government ramps up plans to drive growth

Backing businesses across the UK, Innovate UK invests in game-changing innovation, from advanced AI to zero-emission transport, fuelling our Plan for Change

Under Tom’s leadership, Innovate UK will accelerate efforts to scale up British innovation and turn cutting-edge research into real-world impact, helping businesses grow and compete on a global stage

Tech entrepreneur and business leader Tom Adeyoola will head up Innovate UK to unlock the potential of British business and turbocharge growth through our Plan for Change.

Once confirmed by parliament, Tom will act as Chair of Innovate UK, part of the largest national public research funder, helping businesses turn cutting-edge ideas into real-world products.

The agency funds ambitious companies, drives transformative technologies, and oversees the UK’s Catapult Network, which connects businesses with world-class R&D expertise. Through its £100 million Innovation Accelerator programme, it is already creating high-skilled jobs and new opportunities in Glasgow, Manchester, and the West Midlands, helping these regions become global hubs for research, from advanced manufacturing to life sciences.

Over 450,000 innovators across the country were supported by the agency in 2023/2024, including support for successful scale-ups such as Pragmatic, a world leader in semiconductor innovation that has grown from a dozen to 330 employees in a decade – powering everyday tech from smartphones to medical devices, and Pragmatic’s ultra-thin, low-cost microchips open new possibilities for smart packaging and wearable health tech.

Innovate UK was an early backer of Oxford Nanopore Technologies, whose handheld DNA sequencing technology is now used worldwide – from diagnosing diseases faster to tracking viruses like COVID-19. Their success has not only transformed healthcare but also driven economic growth, with the company now valued at £1.49 billion and generating annual revenues of around £183 million.

People could see faster medical deliveries, air taxis cutting journey times, and greener transport options through Innovate UK’s flagship Future Flight Challenge, which works with businesses and regulators to develop drone technology and zero-emission aircraft.

Tom Adeyoola brings a wealth of experience spanning technology, investment, entrepreneurship, and digital transformation. As co-founder of Extend Ventures, he has worked with Innovate UK to improve diversity in grant funding and support underrepresented entrepreneurs. He also serves on the steering board of The Startup Coalition, advocating for high-growth tech businesses across the UK.

Science Minister Lord Vallance said:

Innovation is central to this government’s Plan for Change, helping to unlock new opportunities, boost productivity, and create high-value jobs across the UK.

With his experience in technology, entrepreneurship, and digital transformation Tom Adeyoola is the right person to ensure Innovate UK delivers real impact – backing pioneering businesses, scaling up breakthrough innovations and ensuring the UK leads in the industries of the future.

I thank Indro Mukerjee, and Stella Peace for all of their contributions up to this point and I look forward to working with Tom as we continue to make the UK the best place in the world to start and grow an innovative business.

Whilst on the Board at Channel 4, he focused on digital transformation and championed innovation funding in the creative industries. He has also been a driving force in exploring the impact of generative AI on the economy, from education to public services. His blend of business, technology, and policy expertise makes him well-placed to steer Innovate UK’s investments – helping pioneering companies scale up, from greener aviation to sustainable food production.

UKRI Chief Executive Professor Dame Ottoline Leyser said:

Tom Adeyoola’s appointment is excellent news for Innovate UK and the whole of UKRI. His experience and insight as a technology entrepreneur and business leader will bring enormous benefits and expertise to the organisation at this critical time.

I’d like to take this opportunity to thank Dr Stella Peace for her superb leadership as interim Executive Chair. Stella will continue to play a major role for UKRI as Innovate UK’s Executive Director of Healthy Living and Agriculture.

Under Tom Adeyoola’s leadership, Innovate UK will continue backing businesses and driving forward the government’s Plan for Change – supporting pioneering businesses, create high-value jobs, and turn cutting-edge ideas into solutions that improve lives across the UK.

Incoming Executive Chair of Innovate UK, Tom Adeyoola said:

Innovate UK plays a vital role in catalysing the businesses that will shape the UK’s future economy – whether through cutting-edge technologies, the creative industries, or AI.

I look forward to working with partners across the ecosystem, industry and government to ensure our investments have a multiplier impact, driving innovation that fuels economic growth and strengthens the UK’s position as a global leader in science and technology.

Tom Adeyoola’s appointment follows a competitive recruitment process and is subject to a pre-appointment scrutiny hearing by the Science, Innovation and Technology Select Committee, which is expected to take place on 8 April.

Notes to editors

Tom will be stepping down from all existing responsibilities besides his roles on the Board of Channel 4 and as a school governor.

DSIT media enquiries

Email press@dsit.gov.uk

Monday to Friday, 8:30am to 6pm 020 7215 3000

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Published 25 March 2025
MIL OSI United Kingdom –
March 25, 2025
MIL-OSI China: China intensifies efforts to eradicate tuberculosis

Source: People’s Republic of China – State Council News

BEIJING, March 24 — As a country facing huge challenges posed by tuberculosis (TB), China is accelerating its efforts to eliminate the disease domestically while making active contributions to the global anti-TB fight.

According to data from the National Disease Control and Prevention Administration, the incidence and mortality rates of TB in China have fallen by 30 percent since 2012.

Since 2012, China has successfully identified and treated approximately 7.85 million cases of pulmonary TB, maintaining a treatment success rate above 90 percent and a relatively low mortality rate, the administration said.

Behind these encouraging figures is a cumulative investment of over 10 billion yuan (about 1.39 billion U.S. dollars) from China’s central government into special funds for TB prevention and control, noted Zhao Yanlin, head of the Center for Tuberculosis Prevention and Control under the Chinese Center for Disease Control and Prevention (China CDC).

To ease the financial burden on TB patients, some local medical insurance bureaus in China have included TB into the category of outpatient chronic and special diseases, which offers higher reimbursement rates and caps than ordinary outpatient diseases, with reimbursement rates exceeding 90 percent.

In Jiangsu Province, thanks to the policy to use certain innovative drugs free-of-charge in medical treatment, the treatment success rate for drug-resistant TB cases has risen to 85.6 percent, said Zhu Limei, an institute director under the province’s center for disease control and prevention.

Beyond financial and policy support, China is also committed to innovation, aiming to further enhance TB prevention and treatment.

In Jinxi, a town in Jiangsu, TB detection has shifted from passive to proactive screening, with an AI-powered imaging system and molecular diagnostic technologies now available at the community health center.

“AI can quickly flag lung abnormalities, allowing faster diagnosis at the grassroots level,” said Tang Qingyan, a doctor with a local hospital. Currently, the new system and technologies are available in 47 community hospitals across the province, with plans to expand to 100 this year.

In March, Jiangsu’s capital city of Nanjing launched one of the country’s first zero-cost treatment plan for drug-resistant TB using BPaL — the latest short-course regimen worldwide. This regimen, featuring drugs such as bedaquiline, pretomanid and linezolid, is expected to shorten the treatment period to just six months and boost the cure rate to over 90 percent.

The first patient to receive the regimen in Nanjing said, “I was under immense pressure, worrying about whether the disease could be cured. This short and effective novel treatment has given me reassurance.”

In its national plan for TB prevention and control released in November 2024, China set a clear objective to steadily reduce incidence, maintain low mortality rates, and significantly ease the burden on patients.

Jointly issued by nine authorities, the plan integrates responsibilities across 15 government departments into an accountability framework, strengthening interagency coordination to ensure policy implementation.

“Ending TB requires everyone’s effort, not just that of healthcare workers,” said an official from the China CDC. In fact, the entire Chinese society is actively working toward the goal of eradicating this deadly disease, the official noted.

Hu Linjia, a university student volunteer, has been visiting local communities and using interactive quizzes to educate the elderly on TB prevention and control.

“Every person made aware of TB brings us one step closer to ending this epidemic,” Hu said.

MIL OSI China News –

March 25, 2025
MIL-Evening Report: What’s the difference between freckles, sunspots and moles?
Source: The Conversation (Au and NZ) – By Mike Climstein, Associate Professor, Faculty of Health, Southern Cross University

Cottonbro Studio/Pexels

You’ve got a new brown spot on your face, but is it a freckle or a sunspot? Or perhaps you’ve found a spot on your back that looks like a mole but is flatter than your other ones – is it a mole or a dark freckle?

Here’s how to tell the difference between freckles, sunspots and moles – and when you need to get a spot checked to see if it’s skin cancer.

Freckles

Freckles, known as ephelides, are small, flat, light brown spots that appear on people with fair skin, or red or light-coloured hair.

These people are more likely to have the MC1R gene, which leads to freckles forming.

Freckles are caused by sun exposure and are more noticeable in summer. When sunlight hits the skin, cells called melanocytes produce melanin, the pigment that gives skin its colour.

In people prone to freckles, the melanin doesn’t spread evenly. Instead, it clumps together, creating freckles.

Melanin doesn’t spread evenly in people prone to freckles.
Chermiti Mohamed/Unsplash

Freckles generally appear in childhood and may fade with age, especially if sun exposure reduces. As we age we produce less melanin, or it can break down or disperse, resulting in lighter or fewer freckles.

Using sunscreen and wearing protective clothing can help prevent new freckles from developing, especially on the face and arms.

While freckles are completely harmless, they are a sign that someone is genetically at higher risk of developing skin cancer.

Sunspots

Sunspots are also called age spots or actinic keratoses (or liver spots, but they have nothing to do with the liver). They are larger than freckles: sometimes the size of a small coin, and appear as flat brown spots.

Sunspots develop over time due to long-term sun exposure, which leads to excessive melanin production. They tend to appear on skin with greater sun exposure, such as the face, hands, shoulders and arms.

Sunspots develop after years of sun exposure.
Zay Nyi Nyi/Shutterstock

Unlike freckles, which tend to get lighter with less sun exposure, sunspots will not fade with time, and may further darken with continued sun exposure.

However, some people try to remove their sunspots for cosmetic reasons using either a laser, chemical peel or a prescription topical cream.

While sunspots are not dangerous, they do increase your risk of other skin cancers in that area.

It’s also important to monitor them, as slow-growing melanomas may initially look like sunspots. If you see the spot changes in size, shape or colour, see your doctor to rule out skin cancer.

Moles

Moles are often dark, raised or flat skin growths that can appear anywhere on your body.

Although moles can exist from birth, they typically grow during childhood, adolescence and early adulthood (including during pregnancy, when hormones are changing), until around the age of around 40. Moles can increase in size, and new ones can also appear.

Most adults have between ten and 40 moles on their body. A person with a high mole count has 50 or more, while someone with a very high mole count has 100 or more.

Some moles are raised while others are flat.
Pixel-Shot/Shutterstock

Moles form when melanocytes grow in clusters instead of spreading evenly throughout the skin.

Moles can either be raised or flat, depending upon their type, depth and age.

Raised moles, referred to as compound nevi, have both flat and raised portions and typically have pigment that is deeper in the skin.

Dermal nevi are skin-coloured or light brown moles that are also raised.

Most moles are harmless. Some may have hair growing from them and some may disappear, whereas other moles may darken or alter with age or hormonal changes.

However, some moles can develop into melanoma, a dangerous form of skin cancer.

When to see your doctor

While freckles and sunspots are completely harmless, moles do require more attention, especially if they change in size, shape, colour or texture.

If a mole shows any of the following warning signs, see your doctor, who will use the ABCDE rule to detect if a lesion is a skin cancer:
- asymmetry: if one half of the mole looks different from the other half
- border: if your mole is shaped irregularly, jagged or has poorly defined edges
- colour: varied shades or sudden changes in colour of the mole
- diameter: if it is larger than 6 millimeters (about the size of a pencil eraser)
- evolving: if your mole has any changes in its size, shape, colour, or sensation such as itching or bleeding for more than a few weeks.
Our research shows only 21.7% of people can correctly identify melanoma on their own, so professional checks are essential.

How to prevent skin damage

Since freckles, sunspots and some moles are influenced by exposure to the sun, you can protect your skin by:
- avoiding the sun when ultraviolet rays are strongest
- wearing sunscreen with SPF 50 every day, even when it’s cloudy. Apply it 20 minutes before going outside and reapply every two hours
- wearing protective clothing, including a wide-brimmed hat to cover your face, neck and ears, and long-sleeved shirts and pants to protect your arms and legs.
Mike Climstein received funding from Johnson & Johnson

Jeremy Hudson receives funding from Agaibey Enterprises Ltd.

Michael Stapelberg receives funding from Johnson & Johnson.

Nedeljka Rosic received research funding from Johnson & Johnson

– ref. What’s the difference between freckles, sunspots and moles? – https://theconversation.com/whats-the-difference-between-freckles-sunspots-and-moles-250768
MIL OSI Analysis – EveningReport.nz –
March 25, 2025
MIL-OSI USA: Attorney General Bonta Seeks Court Order to Block Mass Firings, Transfer of Core Functions from Department of Education

Source: US State of California

Cites immediate and potentially devastating harms to California schools and students

OAKLAND – California Attorney General Rob Bonta today led a multistate coalition in filing a motion for a preliminary injunction to prevent the Trump Administration’s mass firing of U.S. Department of Education employees and the transfer of core statutory functions to other departments. These actions will devastate the Department of Education’s ability to meet its statutory obligations across numerous programs — direct funding for K-12 education, student aid, services for students with disabilities, civil rights enforcement, vocational training, and more. California schools alone receive $7.9 billion annually from the Department of Education, and these schools have already reported impacts and disruptions to their ability to provide public education to California’s children as a result of these actions. As such, Attorney General Bonta and the coalition argue that the actions violate the Administrative Procedures Act, are unconstitutional, and should be enjoined while litigation continues.

“California receives billions of dollars each year from the U.S. Department of Education. The programs and initiatives these funds support help ensure all our children have access to a high-quality public education and are able to learn in a safe, healthy environment,” said Attorney General Bonta. “All of this is at risk with the Trump Administration’s mass firing of Department employees and outsourcing of core statutory functions like the administration of federal student loans. President Trump has made no secret of his desire to shut down the Department of Education for good – and we know that these actions are just a step toward that end goal. But as his own administration has acknowledged, he lacks the authority to unilaterally do so. I respectfully ask the court to block the Trump Administration’s efforts to dismantle the Department of Education from within while our litigation continues.”

On March 11, the Department of Education initiated a mass termination impacting nearly 50% of the Department’s employees, as part of the Trump Administration’s “final mission” to dismantle the Department. The mass firings were not accompanied by any reasoning to explain why these employees — and indeed, some whole teams — were targeted. The rationale is nevertheless clear — the Trump Administration believes the Department should not exist and is using these firings as a tool in furtherance of that goal. President Trump’s directive last week for Education Secretary Linda McMahon to take all necessary steps to dismantle the Department is further evidence that the firings are part of a broader effort to undermine the Department’s ability to carry out its most vital, congressionally-mandated functions. These steps including transferring the administration of federal student loans to the Small Business Administration, which recently fired 40% of its workers, and of special needs and nutritional programs to the U.S. Department of Health and Human Services.

The U.S. Department of Education provides $7.9 billion annually in federal funding to more than 9,000 public schools across California – serving 5.8 million students. This includes funding for Title I to support low-income families, Individuals with Disabilities Education Act (IDEA) funds and support for students with disabilities, school lunch programs, services to families living on military bases and Indian reservations, and post-secondary financial aid. Already, the mass firings have led to the closure of seven regional offices of the Office for Civil Rights, including the one in San Francisco, leaving 1,500 pending cases, including open investigations, cases in mediation, resolved cases under monitoring, and complaints under research by staff, in limbo.

It is clear that the mass firing of nearly 50% of all Department of Education employees will make it impossible for the Department to meet its current obligations under federal law, violating the separation of powers and the Executive Branch’s obligation to take care that the law is faithfully executed, and exceeding the Department’s authority under the law in violation of the Administrative Procedures Act. Given the immediate and potentially devastating harm that these firings and subsequent transfer of core programs could cause to California’s schools and children, Attorney General Bonta, along with the coalition, respectfully asks the court to grant a preliminary injunction while the states’ litigation continues.

Attorney General Bonta is leading this lawsuit with Hawaii Attorney General Anne Lopez, Massachusetts Attorney General Andrea Campbell, and New York Attorney General Letitia James. They are joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, Oregon, Rhode Island, Washington, Wisconsin, Vermont, and the District of Columbia.

A copy of the motion is available here.

MIL OSI USA News –

March 25, 2025
MIL-OSI China: Peng Liyuan calls for global efforts to end TB epidemic

Source: People’s Republic of China – State Council News

BEIJING, March 24 — Peng Liyuan, wife of Chinese President Xi Jinping and also the World Health Organization (WHO) goodwill ambassador for tuberculosis (TB) and HIV/AIDS, on Monday called on the international community to commit more, invest more and deliver more on global TB prevention and treatment.

In a written statement to the WHO World TB Day 2025, Peng said that with the powerful drive of the WHO and sustained efforts of the international community, notable progress has been achieved in the global fight against TB, and 79 million lives have been saved since 2000.

It is of great significance that the WHO hosted the virtual meeting to encourage discussions on “Commit, Invest, Deliver,” rally the strength of all parties to tackle the public health challenge of TB, and make solid strides toward the goal of ending the epidemic, she said.

Peng said that over the past more than 10 years, she has visited many medical facilities, schools and communities both at home and abroad, and witnessed the encouraging progress in TB response in different parts of the world, especially in China.

Placing great emphasis on TB prevention and treatment, the Chinese government has included TB response in the Healthy China strategy and formulated a national plan to guide relevant efforts, she said.

At the same time, China has been committed to facilitating the rapid development of TB control technologies, and made its “patient-centered support and care” more scientific and feasible. Thanks to the tireless work of all those working on TB prevention and treatment, the cure rate of the disease in China has been kept above 90 percent, she said.

Peng said removing the threat of TB is the shared aspiration of all. But the fight remains difficult and challenging, and achieving the goal of ending TB epidemic is still an arduous task, which requires the international community to come together to commit more, invest more and deliver more.

Peng pledged to continue to work with all parties to advance TB prevention and treatment, safeguard people’s health with love, and share warmth and kindness with unwavering dedication.

“Let’s all contribute to building a global community of health for all,” she said.

MIL OSI China News –

March 25, 2025
MIL-OSI Submissions: GAZA – MSF condemns Israeli strike on Nasser hospital in Gaza, calls for protection of health facilities – MSF

Source: Médecins Sans Frontières/Doctors Without Borders (MSF)

JERUSALEM, 25 MARCH 2025 – Médecins Sans Frontières/Doctors Without Borders (MSF) strongly condemns Israel’s strike on Nasser Hospital in Khan Younis, southern Gaza—the largest remaining functioning hospital in the Gaza Strip, where MSF teams work.

On 23 March, Israeli forces targeted the hospital’s inpatient surgical department, killing two people, according to the Ministry of Health. MSF teams confirmed there were several people injured, one of which was admitted to our trauma unit, and that severe damage was done to the building.

This attack shows a total disregard for the protection of medical facilities, endangered patients and medical staff and the very provision of healthcare. As Israeli forces escalate their operations in Gaza once again, MSF calls for the respect and protection of healthcare facilities, patients and medical staff in Gaza, where the health system has been all but destroyed.

“Strikes such as these are horrific for staff and patients” says Claire Nicolet, MSF head of emergencies in Gaza. “We cannot go back to repeated attacks on health care facilities when the health system in Gaza is already hanging by a thread, and no supplies have entered in weeks.”

While Gaza’s healthcare system has collapsed, and the medical needs of people continue to skyrocket, medical workers are yet again forced to fear for their lives while providing care. At Nasser hospital, two MSF colleagues, who were working in different hospital departments, described panic among patients at the time of the attack.

” The distance between us and the explosion was so close that we could’ve been hit too,” explains an MSF nurse who works in another ward in Nasser hospital and was close by when the strike happened. “Our colleagues, medical staff, patients and their caretakers were all terrified.”

During Israel’s war on Gaza, MSF has witnessed relentless attacks on health facilities, a complete disregard for patients, medical workers and International Humanitarian Law (IHL), resulting in the systematic dismantling of Gaza’s health system. Not a single hospital in the Gaza Strip is currently fully functional, and only 21 out of the enclave’s 36 hospitals are partially functioning, according to the World Health Organization (WHO).

As one of the last main hospitals in southern Gaza, Nasser hospital is providing care for people with severe burns and trauma injuries, newborns, and pregnant women.

Since returning in mid-May 2024, MSF teams have been supporting the emergency, pediatric, and maternity departments at Nasser hospital, as well as running a burn and trauma unit. In February 2024, MSF teams were forced to flee after the hospital was shelled by Israeli forces.

Furthermore, Nasser Hospital as other health facilities in Gaza is facing several challenges of supplies, including hygiene items, medication and surgical items, while Israeli authorities continue their siege on the Strip for over 20 days. Due to the numerous influxes of patients from recent bombings, MSF stocks are decreasing faster than expected, and the blockade is making it impossible for our teams to restock vital items such as antibiotics, painkillers and anesthetics.

In a separate incident on May 24, MSF teams in Al-Mawasi primary health care clinic were forced to close the emergency room, evacuate the facility and suspend activities for the day due to close-by shootings and shelling. Healthcare facilities, patients and medical staff must be protected.

MSF calls once again for the immediate restoration of the ceasefire and for the resumption of the entry of essential aid and basic supplies, which people in Gaza desperately need.

MSF is an international, medical, humanitarian organisation that delivers medical care to people in need, regardless of their origin, religion, or political affiliation. MSF has been working in Haiti for over 30 years, offering general healthcare, trauma care, burn wound care, maternity care, and care for survivors of sexual violence. MSF Australia was established in 1995 and is one of 24 international MSF sections committed to delivering medical humanitarian assistance to people in crisis. In 2022, more than 120 project staff from Australia and New Zealand worked with MSF on assignment overseas. MSF delivers medical care based on need alone and operates independently of government, religion or economic influence and irrespective of race, religion or gender. For more information visit msf.org.au

MIL OSI – Submitted News –

March 25, 2025
MIL-OSI USA: Attorney General Bonta Together with Recently Established Sacramento Regional Human Trafficking Task Force Secure 11 Arrests in Online Child Sexual Predator Sting

Source: US State of California

TURLOCK – California Attorney General Rob Bonta in partnership with the recently established Sacramento Regional Human Trafficking Task Force (Sac HTTF), today announced the arrest of 11 individuals for allegedly attempting to contact a minor for sex and other related crimes. The arrests are the result of a partnership between state and local law enforcement and have been referred to the Stanislaus County District Attorney’s Office for potential criminal prosecution.

“I have a simple message for all those who target children for sex online: If you go after children in California, we’ll go after you,” said Attorney General Bonta. “Today’s announcement makes it clear that child sexual abuse will not be tolerated. I’m extremely grateful to all of our partners for their dedication and commitment to keeping our communities safe. When we work together, we get results. My office always stands ready to work with our partners across California to stand up for our children and for public safety.”

“The Sacramento Police Department stands unwavering in the fight against human trafficking, a crime that strips victims of their freedom, dignity, and humanity,” said Sacramento Police Chief Kathy Lester. “This is why our partnership with the Sacramento Regional Human Trafficking Task Force is so critical. By working alongside our local, state, and federal partners, we are attacking this crisis from every angle, relentlessly pursuing traffickers, rescuing and empowering survivors, and making our communities safer.”

“CDCR is proud to be part of this task force, which is making significant strides in keeping our communities safe,” said Bryan Bishop, Deputy Chief of the Office of Correctional Safety at the California Department of Corrections and Rehabilitation. “CDCR is committed to using its expertise to hold human traffickers accountable.”

During the sting, law enforcement personnel worked undercover, posing as children on various websites, as young as 13 years old, to identify, contact, and arrest anyone who may be trying to target children for sex. In these encounters, suspects allegedly used sexually explicit language and sent graphic photos to undercover personnel. Once suspects requested to meet with a child, law enforcement directed them to a predetermined location and arrested them. The operation was carried out in early March and targeted individuals across Stanislaus County. Many of the arrests involved individuals who allegedly attempted to meet with undercover personnel.

The sting was conducted by law enforcement personnel with the Sacramento Regional Human Trafficking Task Force (Sac HTTF), Turlock Police Department, Stanislaus County District Attorney’s Office, and the California Department of Corrections & Rehabilitation. The suspects are facing multiple felony charges including lewd and lascivious conduct with minor, contact with minor sex acts, meeting with minor with the intent to commit sex acts, harmful matter sent to a minor, manufacturing child pornography, and possession of child pornography.

Child sexual abuse remains a significant public safety problem. According to the Centers for Disease Control and Prevention, child sexual abuse includes instances where the child does not fully comprehend, does not consent or is unable to give informed consent, or is not developmentally prepared for and cannot give consent to sexual activity. In particular, online enticement — communicating with someone believed to be a child via the internet with the intent to commit a sexual offense or abduction — is a growing problem and form of exploitation, which can include children being groomed to take sexually explicit images or meeting face-to-face with someone for sexual purposes. This type of victimization can occur on a wide array of online platforms, including social media, messaging apps, or online games.

Many children wait to report or never report child sexual abuse and research on the subject likely underestimates the true impact of the problem. Although estimates vary across studies, the research shows that about 1 in 4 girls and 1 in 20 boys in the United States experience child sexual abuse. Ninety-one percent of child sexual abuse is perpetrated by someone known and trusted by the child or child’s family members. Experiencing child sexual abuse can affect how a person thinks, acts, and feels over a lifetime. This can result in short- and long-term physical, mental, and behavioral health consequences.

It is important to note that criminal charges are only allegations against a person. Every defendant is presumed innocent unless or until proven guilty.

MIL OSI USA News –

March 25, 2025
MIL-OSI Canada: Permanent supportive, complex-care homes planned for Kamloops
Source: Government of Canada regional news

People living with complex mental-health and substance-use challenges in Kamloops will soon have access to robust health and social supports in housing, with 20 new complex-care homes planned for the community.

“This project is part of our work to make communities safer for everyone by delivering real solutions to address the complex challenges people face,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “By providing a safe place to live with enhanced supports, individuals facing complex challenges can find a pathway to hope and healing.”

The Province, through BC Housing, is proposing to build the 20 complex-care homes on a subdivided portion of a 5.5-hectare (13.5 acres) lot in the Columbia Precinct area of Kamloops. BC Housing will be partnering with a housing provider to operate the site, at 1100 Glenfair Dr., as well as Interior Health, which will provide health services to complex-care clients. The operator, not yet selected, will bring proven experience in providing support for residents and being a point of contact for neighbours. Staff will work with residents and the surrounding community on an ongoing basis to address any concerns.

“People living with substance-use challenges are often experiencing multiple concurrent challenges such as homelessness, health and mental-health conditions, which pose significant barriers to accessing the treatment they need,” said Josie Osborne, Minister of Health. “The new Kamloops complex-care housing project will provide comprehensive care and supports for people and will help many community members get the support they need to lead healthier lives.”

Complex-care housing provides voluntary housing and support services to people with significant health needs, including mental-health or substance-use challenges and other health issues, such as brain injuries or mobility challenges. Teams of professionals will work with residents to provide the supports needed to maintain stable housing and improve their quality of life. A non-profit operator will manage the building and provide support services. Interior Health staff will provide and connect tenants to the health services they need.

“These new homes will provide much-needed support for some of our most vulnerable residents, ensuring they have access to the care and stability they need,” said Margot Middleton, deputy mayor of Kamloops. “This project is an important step toward building a healthier, more inclusive community for everyone in Kamloops.”

Before construction can begin on a new three-storey building, one of the nine aging buildings requires demolition. BC Housing is working with its partners to develop individualized relocation plans based on personal housing needs for each of the 21 current tenants to ensure no one is displaced. Moving expenses will be covered by BC Housing.

“With dedicated health and social services in place, we’ve seen and experienced how complex-care housing supports people in communities,” said Susan Brown, president and CEO, Interior Health. “This expansion of purpose-built housing will enable us to meet the diverse needs of some of our most vulnerable community members in Kamloops.”

This site was selected for complex-care housing because of its proximity to health services, transit, shops and other amenities in the area.

Quick Facts:
- The project will be funded through the Province’s Complex-Care Housing Program, announced in Budget 2022.
- BC Housing continues to work toward replacing the aging housing units at 1100 Glenfair in Kamloops with approximately 340 new, high-quality affordable homes for seniors.
- This complex-care housing project is one of several projects in the Columbia Precinct that will expand the housing options available to people in Kamloops.
- Once complete, the complex-care housing will be a separate property from the year-round seniors shelter planned for 1055 Glenfair Dr. in Kamloops, which is in the planning stages.
- The new complex-care building will be separated with fencing, separate entrances and exits.
- Construction is expected to begin in 2026, pending approvals.
Learn More:

For more information on the complex-care housing project, visit the Let’s Talk Housing page here: https://letstalkhousingbc.ca/kamloops-complex-care-housing

To learn more about government’s new Homes for People action plan, visit: https://news.gov.bc.ca/releases/2023HOUS0019-000436

To learn about the steps the Province is taking to tackle the housing crisis and deliver affordable homes for British Columbians, visit: https://strongerbc.gov.bc.ca/housing/

A map showing the location of all announced provincially funded housing projects in B.C. is available online: Homes for BC – Map of Building Projects Across BC | BC Housing (bchousing.org)

Join BC Housing to listen and learn from people in British Columbia who are creating inclusive housing communities. Subscribe to BC Housing’s podcast, Let’s Talk Housing on:

MIL OSI Canada News –
March 25, 2025

MIL-OSI: Diversified Royalty Corp. Announces Fourth Quarter and Year End 2024 Results

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, British Columbia, March 24, 2025 (GLOBE NEWSWIRE) — Diversified Royalty Corp. (TSX: DIV and DIV.DB.A) (the “Corporation” or “DIV”) is pleased to announce its financial results for the three months (“Q4 2024”) and year ended December 31, 2024.

Highlights

The weighted average organic royalty growth¹ of DIV’s diversified royalty portfolio was 5.9% in Q4 2024 and 5.0% for the year ended December 31, 2024, compared to 6.8% for the three months ended December 31, 2023 (“Q4 2023”) and 8.4% for the year ended December 31, 2023. The weighted average organic royalty growth¹ on a constant currency basis was 5.4% in Q4 2024 and 4.8% for the year ended December 31, 2024.
Revenue was $17.0 million in Q4 2024 and $65.0 million for the year ended December 31, 2024, up 3.9% and 15.0%, respectively, compared to the same periods in 2023.
Adjusted revenue¹ was $18.4 million in Q4 2024 and $70.2 million for the year ended December 31, 2024, up 3.8% and 14.0%, respectively, compared to the same periods in 2023.
Distributable cash¹ was $12.6 million in Q4 2024 and $44.8 million for the year ended December 31, 2024, up 21.5% and 17.5%, respectively, compared to the same periods in 2023.
Payout ratio¹ was 82.3% in Q4 2024 based on dividends of $0.0625 per share for the quarter, compared to 84.2% in Q4 2023 based on dividends of $0.0609 per share for the comparable quarter and 90.0% for the year ended December 31, 2024 based on dividends of $0.2487 per share for the year, compared to 90.2% based on dividends of $0.2415 per share for the comparable year.
In celebration of DIV’s 10-year anniversary, we are proud to recognize the following:
- On October 6, 2014, we announced our name change to “Diversified Royalty Corp.”
- DIV’s very first dividend was $0.0157 per share, paid on November 28, 2014
- The total dividends paid to shareholders since then is $269.1 million, or $2.25 per share

Fourth Quarter Commentary

Sean Morrison, President and Chief Executive Officer of DIV stated, “Overall, DIV is pleased with how its royalty partners performed with weighted average organic royalty growth of 5.9% in Q4 2024 and 5.0% for the year ended December 31, 2024. As with all portfolios, there are varying degrees of performance within the portfolio. Mr. Lube, our largest royalty partner, continued to see strong double-digit growth, generating SSSG¹ (defined below) of 12.0% for the three-month period ended December 31, 2024, and 10.5% for the year ended December 31, 2024. This exceptional performance is the result of Mr. Lube’s management team working with their franchisees to share best practices and optimize the performance of each location. DIV’s other variable royalty partners generated mixed results with Oxford generating positive SSSG and Mr. Mikes generating negative SSSG in Q4. DIV’s fixed royalty partners, Nurse Next Door, Stratus and BarBurrito made their fixed royalty payments. DIV is deferring 20% of Sutton’s royalties to help them invest in the business and build on the positive momentum in Q4. DIV continues to see a decrease in royalty income from AIR MILES® because of the loss of Metro as a loyalty partner and continued softness across the AIR MILES® Rewards Program.”

1. Adjusted revenue and distributable cash are non-IFRS financial measures, payout ratio is a non-IFRS ratio and weighted average organic royalty growth and Same-store-sales growth or SSSG are supplementary financial measures – see “Non-IFRS Measures” below.

Fourth Quarter Results

	Three months ended December 31,				Year ended December 31,
(000’s)		2024		2023		2024		2023
Mr. Lube + Tires	$	8,602	$	7,810	$	31,190	$	28,429
Stratus^a		2,268		2,099		8,714		8,171
BarBurrito		2,101		2,032		8,403		2,032
Nurse Next Door^b		1,341		1,316		5,309		5,207
Oxford		1,206		1,162		4,530		4,521
Sutton		899		1,095		4,206		4,339
Mr. Mikes		1,040		1,130		4,226		4,570
AIR MILES®		896		1,044		3,640		4,352
Adjusted revenue^c	$	18,352	$	17,688	$	70,218	$	61,621

^{a) Stratus royalty income for the three months and year ended December 31, 2024, was US$1.6 million and US$6.4 million, respectively, translated at an average foreign exchange rate of $1.4000 and $1.3703 to US$1, respectively (three months and year ended December 31, 2023 – royalty income of US$1.5 million and US$6.1 million, respectively, translated at an average foreign exchange rate of $1.3610 and $1.3493 to US$1, respectively).}
^{b) Represents the DIV Royalty Entitlement plus management fees received from Nurse Next Door.}
^{c) DIV Royalty Entitlement and adjusted revenue are non-IFRS financial measures and as such, do not have standardized meanings under IFRS. For additional information, refer to “Non-IFRS Measures” in this news release.}

In Q4 2024, DIV generated $17.0 million of revenue compared to $16.4 million in Q4 2023. After considering the DIV Royalty Entitlement² (defined below) related to DIV’s royalty arrangements with Nurse Next Door, DIV’s adjusted revenue² was $18.4 million in Q4 2024, compared to $17.7 million in Q4 2023. Adjusted revenue increased primarily due to incremental revenue received through the acquisition of the BarBurrito rights on October 4, 2023, positive SSSG² at Mr. Lube + Tires and Oxford, the annual contractual royalty increases at Stratus and Nurse Next Door, partially offset by negative SSSG from Mr. Mikes and lower royalty income from AIR MILES® and the 20% deferral of the Sutton royalties, all as discussed in further detail below.

2. Adjusted revenue and DIV Royalty Entitlement are non-IFRS financial measures and SSSG are supplementary financial measures – see “Non-IFRS Measures” below.

Royalty Partner Business Updates

Mr. Lube + Tires: Mr. Lube Canada Limited Partnership (“Mr. Lube + Tires”) generated SSSG³ of 12.0% for the Mr. Lube + Tires stores in the royalty pool for Q4 2024 and 10.5% for the year ended December 31, 2024, compared to SSSG of 14.0% and 17.1%, for the same respective prior periods in 2023.

3. Same-store-sales growth or SSSG is a supplementary financial measure – see “Non-IFRS Measures” below.

Stratus: Royalty income from SBS Franchising LLC (“Stratus”) was $2.3 million (US$1.6 million translated at an average foreign exchange rate of $1.4000 to US$1.00) for Q4 2024 and $8.7 million (US$6.4 million translated at an average foreign exchange rate of $1.3703 to US$1.00) for the year ended December 31, 2024. The fixed royalty payable by Stratus increases each November at a rate of 5% until and including November 2026 and 4% each November thereafter during the term of the license, with the most recent increase effective November 15, 2024.

Nurse Next Door: The royalty entitlement to DIV (the “DIV Royalty Entitlement⁴”) from Nurse Next Door Professional Homecare Services Inc. (“Nurse Next Door”) was $1.3 million in Q4 2024 and $5.2 million for the year ended December 31, 2024. The DIV Royalty Entitlement from Nurse Next Door grows at a fixed rate of 2.0% per annum during the term of the license, with the most recent increase effective October 1, 2024.

4. DIV Royalty Entitlement is a non-IFRS measure – see “Non-IFRS Measures” below.

Mr. Mikes: SSSG⁵ for the Mr. Mikes Restaurants Corporation (“Mr. Mikes”) restaurants in the Mr. Mikes royalty pool was -4.7% in Q4 2024 and -3.4% for the year ended December 31, 2024, compared to SSSG of 7.3% and 10.1%, for the same respective prior periods in 2023. The lower SSSG percentage in the current period is primarily due to lower restaurant guest traffic. In addition, in the comparable period, SSSG was measured against quarters that included the impact from COVID-19 related government regulations, including vaccine mandates.

Royalty income and management fees of $1.0 million were generated by Mr. Mikes in Q4 2024, compared to $1.2 million in Q4 2023, which excludes approximately $0.05 million from the partial payment of deferred contractual royalty fees and accrued management fees. Royalty income and management fees of $4.2 million were generated for the year ended December 31, 2024, compared to $4.4 million generated for the year ended December 31, 2023, excluding approximately $0.18 million from the partial payment of deferred contractual royalty fees and accrued management fees.

5. Same-store-sales growth or SSSG is a supplementary financial measure – see “Non-IFRS Measures” below.

Oxford: The Oxford Learning Centres, Inc. (“Oxford”) locations in the Oxford royalty pool generated SSSG⁶ (on a constant currency basis) of 4.0% in Q4 2024 and 0.2% for the year ended December 31, 2024, compared to SSSG of -0.2% and 5.9%, for the same respective prior periods in 2023. Oxford’s SSSG has returned to being positive after lapping the completion of the Ontario Government funding of student learning support, which included private tutoring, which funding completed in the first half of 2023.

6. Same-store-sales growth or SSSG is a supplementary financial measure – see “Non-IFRS Measures” below.

AIR MILES®: In Q4 2024, royalty income of $0.9 million was generated from the AIR MILES® Licenses compared to $1.0 million generated in Q4 2023, a decrease of 14.2% from the comparable quarter. For the year ended December 31, 2024, royalty income of $3.6 million was generated compared to $4.4 million generated in the comparable year, a decrease of 16.4%. The decrease is largely due to the loss of AIR MILES® sponsor Metro and continued softness in the AIR MILES® Rewards Program.

Sutton: In Q4 2024, royalty income of $0.9 million was generated by Sutton, which is net of a 20% royalty deferral, compared to $1.1 million generated in Q4 2023. For the year ended December 31, 2024, royalty income of $4.1 million was generated, which includes a 20% royalty deferral for Q4, 2024, compared to $4.3 million generated in the comparable year. DIV and Sutton entered into a royalty deferral agreement during Q4 2024, which provides Sutton with a 20% deferral of royalties from October 1, 2024 to December 31, 2025. The deferred royalties do not accrue interest and are due in full on December 31, 2027. Sutton finished 2024 on a strong note, opening two new franchise locations in Q4 and has a growing pipeline of franchise opportunities across Canada. Sutton intends to invest the deferred royalties to complete the rebuild of its management team, increase investment in marketing, roll out its rebranded logo across Canada, increase business development, and build on the positive momentum that began in the back half of 2024.

BarBurrito: Royalty income from BarBurrito Restaurants Inc. (“BarBurrito”) was $2.1 million for Q4 2024 and $8.3 million for the year ended December 31, 2024. The royalty payable by BarBurrito initially grows at a fixed rate of 4% per annum each March from and including March 2025 to and including March 2030 and, commencing on January 1, 2031, will fluctuate based on the gross sales of the BarBurrito locations in the royalty pool.

Distributable Cash and Dividends Declared

In Q4 2024 and for the year ended December 31, 2024, distributable cash⁷ increased to $12.6 million ($0.0759 per share) and $44.8 million ($0.2762 per share), respectively, compared to $10.4 million ($0.0723 per share) and $38.1 million ($0.2671 per share), in the respective periods in 2023.

The increase in distributable cash⁷ for the quarter was primarily due to higher adjusted revenue⁷, lower general and administrative expenses, lower professional fees, lower interest expense, and lower salaries and benefits. The increase in distributable cash⁷ for the year was primarily due to higher adjusted revenue⁷, lower general and administrative expenses, and lower professional fees, partially offset by higher interest expense and higher and salaries and benefits.

The increase in distributable cash per share⁷ for the quarter and year end were primarily due to an increase in distributable cash, partially offset by a higher weighted average number of common shares outstanding.

In Q4 2024 and for the year ended December 31, 2024, the payout ratio⁷ was 82.3% on dividends of $0.0625 per share and 90.0% on dividends of $0.2487 per share, respectively, compared to the payout ratio of 84.2% on dividends of $0.0609 per share and 90.2% on dividends of $0.2410 per share for the same respective periods in 2023. The decrease in payout ratio for the quarter and year end were primarily due to higher distributable cash per share⁷, partially offset by higher dividends declared per share.

7. Adjusted revenue and distributable cash are non-IFRS financial measures and distributable cash per share and payout ratio are non-IFRS ratios – see “Non-IFRS Measures” below.

Net Income

Net income for Q4 2024 and for the year ended December 31, 2024, was $4.0 million and $26.6 million, respectively, compared to net income of $9.1 million and $31.7 million for the same respective periods in 2023. The decrease in net income in Q4 2024 was primarily due to impairment loss on intangible assets and higher share-based compensation expense, partially offset by higher adjusted revenue⁸ and lower general and administrative expenses, interest expense on credit facilities, and income tax expense. The decrease in net income for the year was primarily due to impairment loss on intangible assets, higher share-based compensation expense, salaries and benefits, and interest expense on credit facilities, partially offset by higher adjusted revenue⁸ and lower general and administrative expenses, and income tax expense.

8. Adjusted revenue is a non-IFRS financial measure – see “Non-IFRS Measures” below.

About Diversified Royalty Corp.

DIV is a multi-royalty corporation, engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America. DIV’s objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors.

DIV currently owns the Mr. Lube + Tires, AIR MILES®, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the leading quick lube service business in Canada, with locations across Canada. AIR MILES® is Canada’s largest coalition loyalty program. Sutton is among the leading residential real estate brokerage franchisor businesses in Canada. Mr. Mikes operates casual steakhouse restaurants primarily in western Canadian communities. Nurse Next Door is a home care provider with locations across Canada and the United States as well as in Australia. Oxford Learning Centres is one of Canada’s leading franchisee supplemental education services. Stratus Building Solutions is a leading commercial cleaning service franchise company providing comprehensive building cleaning, and office cleaning services primarily in the United States. BarBurrito is the largest quick service Mexican restaurant food chain in Canada.

DIV’s objective is to increase cash flow per share by making accretive royalty purchases and through the growth of purchased royalties. DIV intends to continue to pay a predictable and stable monthly dividend to shareholders and increase the dividend over time, in each case as cash flow per share allows.

Forward-Looking Statements

Certain statements contained in this news release may constitute “forward-looking information” within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “intend”, “may”, “will”, ”project”, “should”, “believe”, “confident”, “plan” and “intend” and similar expressions are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specifically, forward-looking information in this news release includes, but is not limited to, statements made in relation to: Sutton having a growing pipeline of franchise opportunities across Canada; Sutton intends to invest the deferred royalties to complete the rebuild of its management team, increase investment in marketing, roll out its rebranded logo across Canada, increase business development and build on the positive momentum that began in the back half of 2024; DIV’s intention to pay monthly dividends to shareholders; and DIV’s corporate objectives. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events, performance, or achievements of DIV to differ materially from those anticipated or implied by such forward-looking information. DIV believes that the expectations reflected in the forward-looking information included in this news release are reasonable but no assurance can be given that these expectations will prove to be correct. In particular, risks and uncertainties include: DIV’s royalty partners may not make their respective royalty payments to DIV, in whole or in part; the decline in royalties received under the AIR MILES® licenses could cause AM Royalties Limited Partnership (“AM LP”) to be required to make partial or full repayment of the outstanding principal amount under its credit agreement, or cause AM LP to be in default under its credit agreement; current positive trends being experienced by certain of DIV’s royalty partners (and their respective franchisees) may not continue and may regress, and current negative trends experienced by certain of DIV’s royalty partners (including their respective franchisees) may continue and may regress; DIV and its royalty partners performance may not meet management’s expectations; DIV may not be able to make monthly dividend payments to the holders of its common shares; Sutton may not pay all deferred royalties in accordance with the timing required or at all; Sutton’s investment of the deferred royalties may not achieve their intended effects; Sutton may require further deferrals of royalties beyond those contemplated by the current deferral agreement; dividends are not guaranteed and may be reduced, suspended or terminated at any time; or DIV may not achieve any of its corporate objectives. Given these uncertainties, readers are cautioned that forward-looking information included in this news release is not a guarantee of future performance, and such forward-looking information should not be unduly relied upon. More information about the risks and uncertainties affecting DIV’s business and the businesses of its royalty partners can be found in the “Risk Factors” section of its Annual Information Form dated March 24, 2025 and in DIV’s management’s discussion and analysis for the three months and year ended December 31, 2024, copies of which are available under DIV’s profile on SEDAR+ at www.sedarplus.com.

In formulating the forward-looking information contained herein, management has assumed that DIV will generate sufficient cash flows from its royalties to service its debt and pay dividends to shareholders; lenders will provide any necessary waivers required in order to allow DIV to continue to pay dividends; lenders will provide any other necessary covenant waivers to DIV and its royalty partners; the performance of DIV’s royalty partners will be consistent with DIV’s and its royalty partners’ respective expectations; recent positive trends for certain of DIV’s royalty partners (including their respective franchisees) will continue and not regress; current negative trends experienced by certain of DIV’s royalty partners (including their respective franchisees) will not materially regress; Sutton will pay all deferred royalties in accordance with the required timing in full and will not require further deferrals; Sutton’s investment of the deferred royalties will achieve its intended effects; the businesses of DIV’s respective royalty partners will not suffer any material adverse effect; and the business and economic conditions affecting DIV and its royalty partners will continue substantially in the ordinary course, including without limitation with respect to general industry conditions, general levels of economic activity and regulations. These assumptions, although considered reasonable by management at the time of preparation, may prove to be incorrect.

All of the forward-looking information in this news release is qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that it will have the expected consequences to, or effects on, DIV. The forward-looking information in this news release is made as of the date of this news release and DIV assumes no obligation to publicly update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

Non-IFRS Measures

Management believes that disclosing certain non-IFRS financial measures, non-IFRS ratios and supplementary financial measures provides readers with important information regarding the Corporation’s financial performance and its ability to pay dividends and the performance of its royalty partners. By considering these measures in combination with the most closely comparable IFRS measure, management believes that investors are provided with additional and more useful information about the Corporation and its royalty partners than investors would have if they simply considered IFRS measures alone. The non-IFRS financial measures, non-IFRS ratios and supplementary financial measures do not have standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS measures should not be construed as a substitute or an alternative to net income or cash flows from operating activities as determined in accordance with IFRS.

“Adjusted revenue”, “adjusted royalty income”, “DIV Royalty Entitlement” and “distributable cash” are used as non-IFRS financial measures in this news release.

Adjusted revenue is calculated as royalty income plus DIV Royalty Entitlement and management fees. The following table reconciles adjusted revenue and adjusted royalty income to royalty income, the most directly comparable IFRS measure disclosed in the financial statements:

	Three months ended December 31,				Year ended December 31,
(000’s)		2024		2023		2024		2023
Mr. Lube + Tires	$	8,543	$	7,750	$	30,953	$	28,196
Stratus		2,269		2,099		8,714		8,171
BarBurrito		2,080		2,013		8,320		2,013
Oxford		1,194		1,152		4,487		4,481
Sutton		872		1,068		4,096		4,229
Mr. Mikes		1,025		1,115		4,181		4,520
AIR MILES®		896		1,044		3,640		4,352
Royalty income	$	16,879	$	16,241	$	64,391	$	55,962
DIV Royalty Entitlement		1,320		1,295		5,228		5,126
Adjusted royalty income	$	18,199	$	17,536	$	69,619	$	61,088
Management fees		153		152		599		533
Adjusted revenue	$	18,352	$	17,688	$	70,218	$	61,621

For further details with respect to adjusted revenue and adjusted royalty income, refer to the subsection “Non-IFRS Financial Measures” under “Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures” in the Corporation’s management’s discussion and analysis for the three months and year ended December 31, 2024, a copy of which is available on SEDAR+ at www.sedarplus.com.

The most closely comparable IFRS measure to DIV Royalty Entitlement is “distributions received from NND LP”. DIV Royalty Entitlement is calculated as distributions received from NND LP, before any deduction for expenses incurred by NND Holdings Limited Partnership (“NND LP”), which expenses include legal, audit, tax and advisory services. Note that distributions received from NND LP is derived from the royalty paid by Nurse Next Door to NND LP. The following table reconciles DIV Royalty Entitlement to distributions received from NND LP in the financial statements:

	Three months ended December 31,						Year ended December 31,
(000’s)		2024			2023			2024			2023
Distributions received from NND LP	$	1,314		$	1,284		$	5,197		$	5,095
Add: NND Royalties LP expenses		2			2			27			22
DIV Royalty Entitlement		1,316			1,286			5,224			5,117

Less: NND Royalties LP expenses		(2	)		(2	)		(27	)		(22	)
DIV Royalty Entitlement, net of NND Royalties LP expenses	$	1,314		$	1,284		$	5,197		$	5,095

For further details with respect to DIV Royalty Entitlement, refer to the subsection “Non-IFRS Financial Measures” under “Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures” in the Corporation’s management’s discussion and analysis for the three months and year ended December 31, 2024, a copy of which is available on SEDAR+ at www.sedarplus.com.

The following table reconciles distributable cash to cash flows generated from operating activities, the most directly comparable IFRS measure disclosed in the financial statements:

	Three months ended December 31,						Year ended December 31,
(000’s)		2024			2023			2024			2023

Cash flows generated from operating activities	$	11,724		$	7,400		$	46,491		$	30,816

Current tax expense		(1,300	)		(845	)		(6,516	)		(5,061	)
Accrued interest on convertible debentures		788			788			–			–
Accrued interest on bank loans		(13	)		–			(438	)		–
Distributions on MRM units earned in current periods		(34	)		(38	)		(138	)		(164	)
Mandatory principal payments on credit facilities		–			(577	)		(643	)		(1,008	)
Payment of lease obligations		(28	)		(28	)		(110	)		(107	)
NND LP expenses		(2	)		(2	)		(27	)		(22	)
Accrued DIV Royalty Entitlement, net of distributions		2			–			27			–
Foreign exchange and other		(13	)		394			146			229
Changes in working capital		(33	)		(527	)		303			3,579
Transactions costs		–			32			–			32
Taxes paid		1,512			1,648			6,012			7,691
Note receivable		–			2,130			(305	)		2,130
Distributable cash	$	12,603		$	10,376		$	44,802		$	38,115

For further details with respect to distributable cash, refer to the subsection “Non-IFRS Financial Measures” under “Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures” in the Corporation’s management’s discussion and analysis for the three months and year ended December 31, 2024, a copy of which is available on SEDAR+ at www.sedarplus.com.

“Distributable cash per share” and “payout ratio” are non-IFRS ratios that do not have a standardized meaning prescribed by IFRS, and therefore may not be comparable to similar ratios presented by other issuers. Distributable cash per share is defined as distributable cash, a non-IFRS measure, divided by the weighted average number of common shares outstanding during the period. The payout ratio is calculated by dividing the dividends per share during the period by the distributable cash per share, a non-IFRS measure, generated in that period. For further details, refer to the subsection entitled “Non-IFRS Ratios” under “Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures” in the Corporation’s management’s discussion and analysis for the three months and year ended December 31, 2024, a copy of which is available on SEDAR+ at www.sedarplus.com.

“Weighted average organic royalty growth” is the average same store sales growth percentage related to Mr. Lube + Tires, Oxford and Mr. Mikes (excluding the collection of Mr. Mikes deferred royalty management fees) plus the average increase in adjusted royalty income from AIR MILES®, Sutton (less 20% deferral in Q4, 2024), Nurse Next Door and Stratus over the prior comparable period taking into account the percentage weighting of each royalty partner’s adjusted royalty income in proportion of the total adjusted royalty income for the period, excluding BarBurrito as there was no full-period adjusted royalty income generated from BarBurrito in the prior period. Weighted average organic royalty growth is a supplementary financial measure and does not have a standardized meaning prescribed by IFRS. However, the Corporation believes that weighted average organic royalty growth is a useful measure as it provides investors with an indication of the change in year-over-year growth of each royalty partner, taking into account the percentage weighting of royalty partner’s growth in proportion of total growth, as applicable. The Corporation’s method of calculating weighted average organic royalty growth may differ from those of other issuers or companies and, accordingly, weighted average organic royalty growth may not be comparable to similar measures used by other issuers or companies.

“Same store sales growth” or “SSSG” and “system sales” are supplementary financial measures and do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. SSSG and system sales figures are reported to DIV by its Royalty Partners – see “Third Party Information”. For further details, refer to the subsection entitled “Supplementary Financial Measures” under “Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures” in the Corporation’s management’s discussion and analysis for the three months and year ended December 31, 2024, a copy of which is available on SEDAR+ at www.sedarplus.com.

Third Party Information

This news release includes information obtained from third party company filings and reports and other publicly available sources as well as financial statements and other reports provided to DIV by its royalty partners. Although DIV believes these sources to be generally reliable, such information cannot be verified with complete certainty. Accordingly, the accuracy and completeness of this information is not guaranteed. DIV has not independently verified any of the information from third party sources referred to in this news release nor ascertained the underlying assumptions relied upon by such sources.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

Additional Information

The information in this news release should be read in conjunction with DIV’s consolidated financial statements and management’s discussion and analysis (“MD&A”) for the three months and year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.com.

Additional information relating to the Corporation and other public filings, is available on SEDAR+ at www.sedarplus.com.

Contact:
Sean Morrison, President and Chief Executive Officer
Diversified Royalty Corp.
(236) 521-8470

Greg Gutmanis, Chief Financial Officer and VP Acquisitions
Diversified Royalty Corp.
(236) 521-8471

The MIL Network –

March 25, 2025

MIL-OSI Submissions: Global Bodies – WHO in the Western Pacific urges decisive action to end TB
Source: World Health Organization (WHO)

Manila, 24 March 2025 – On World Tuberculosis (TB) Day, the World Health Organization (WHO) is calling for countries to invest in and deliver on commitments to end tuberculosis by 2030. This is especially urgent in the WHO Western Pacific Region, where nearly one in every five TB cases occur. With an estimated 1.9 million new cases and 95 000 deaths due to TB in 2023, the impact of this disease for families and communities in this Region is profound. Any delay in diagnosis or gap in care can have devastating consequences.

TB is an infectious disease caused by bacteria that most often affect the lungs. It spreads through the air when people with TB cough, sneeze or spit. TB is preventable and curable with specific antibiotics, but it still kills more people than any other infection. Furthermore, if treatment is interrupted, TB bacteria can become drug resistant. Treatment of drug-resistant TB is more expensive and associated with more side-effects.

Guidance from the Regional Framework on TB

The regional TB response has been guided by the Western Pacific Regional Framework to End TB: 2021–2030.However, implementation of the Framework in countries in the Region is hindered by challenges such as limited health-care infrastructure, inadequate research and innovation capacity, unaddressed poverty and inequities, and lack of sustainable funding. Additionally, information on people with TB who are diagnosed by private health-care providers is often not reported to national TB programmes, making it difficult or impossible for them to receive the latest WHO-recommended diagnostics and treatment regimens.

A recent article published in the International Journal of Tuberculosis and Lung Disease titled “The Western Pacific Regional Framework to End TB: Overview and critical reflection” examines the Regional Framework. Co-authored by WHO staff and partner agencies, the article underscores the urgency of transforming commitments into action, providing a road map for countries to implement the Framework and address persistent barriers to TB elimination.

“Every missed TB case is a lost opportunity to save a life,” said Dr Saia Ma’u Piukala, WHO Regional Director for the Western Pacific. “We must turn our commitments into decisive action, ensuring that every person at risk gets the timely, high-quality diagnosis and care that they deserve.”

Strengthening TB services and resilient health systems

While most countries have integrated TB screening into their routine health services, some still face challenges. Strengthening these efforts will enable early detection and continuity of care, particularly in underserved areas. Modern approaches and tools − such as telemedicine, portable diagnostic devices and rapid tests – can help health workers detect TB cases early and ensure that treatment and services continue even during crises.

The COVID-19 pandemic highlighted the vulnerability of TB services to crises, and demonstrated the need for resilient and scalable approaches. Countries need to ensure that diagnostics, medications and patient support remain available free of charge even during public health emergencies.

To address underreporting of TB cases, public−private collaboration should be considered and improved. This can be done by linking private providers to national TB programmes, offering incentives for private sector reporting, and enforcing mandatory TB case reporting. This will help patients in private care access WHO-recommended diagnostics and treatments, which may be free or low-cost in the public sector.

Innovation in diagnostics and treatments is also essential to strengthen TB care in both the public and private sectors. “Every cent invested in TB care and research brings us closer to a TB-free future. To get there, we need public−private partnerships and sustainable funding mechanisms,” said Dr Piukala.

Addressing social determinants and improving multisectoral collaboration

Addressing the social determinants of TB – which include poverty and inequities − requires a holistic approach with strong multisectoral involvement and accountability. Financial protection mechanisms, such as compensation for people who are being treated for TB and are unable to work, are essential to reduce economic hardship. Expanding social support programmes − for example, food assistance in high-risk communities − can also decrease the risk of TB infection. Improving access to care in underserved areas will help ensure more equitable treatment coverage.

Effective implementation of the Framework requires strong local political commitment and context-specific interventions. With declines in sources of external funding for TB control, countries must increase domestic investment in TB programmes, incorporating control of the disease into national health budgets. Long-term, sustainable financing models are essential for continuous service delivery without reliance on external donors.

WHO is providing clear guidance and targeted support to help countries turn commitments into action. This is essential to protect hard-won gains and achieve ambitious targets to end TB by 2030.

“Ending TB is about upholding the right of every individual to live a healthy and dignified life,” said Dr Piukala. “With political commitment, sustainable funding and united action across sectors, we can accelerate progress and move closer to a TB-free Western Pacific.”

Related links:

The Western Pacific Regional Framework to End TB: Overview and critical reflection

WHO news: Funding cuts impact access to TB services endangering millions of lives

WHO global TB fact sheet

Western Pacific Region World TB Day 2025 event page including links to the regional TB topic page, Western Pacific Regional Framework to End TB: 2021−2030 and dashboard with data on TB by country and for the region overall

Story of Mildred from the Philippines who had drug-resistant TB: written feature and video

Story of Tracking to Zero: Using data to help eliminate TB in Cambodia
MIL OSI – Submitted News –
March 25, 2025
MIL-OSI Canada: Family doctors embrace new pay model
Alberta’s government is committed to strengthening primary health care, ensuring every Albertan has access to a primary health care provider no matter where they live. This new compensation model is designed to not only support physicians in their essential work but also to enhance access to family doctors across the province.

Developed in partnership with the Alberta Medical Association (AMA), this model was announced in December following months of collaboration. With the AMA meeting the threshold of 500 enrolled physicians, the program is now set to officially launch on April 1. As of March 24, 789 family physicians have signed up to receive compensation through the new model.

“Implementing the new primary care physician compensation model is an exciting milestone in our journey to strengthen Alberta’s primary health care system. The model will support family physicians and be a recruitment and retention tool to give more Albertans access to the primary care they need.”

Adriana LaGrange, Minister of Health

The new compensation model will ensure Alberta’s family doctors are competitively paid while promoting patient-focused care. Incentives include increases for:
- Maintaining high panel numbers (minimum of 500 patients), which will incentivize panel growth and improve access to primary care for patients.
- Providing after-hours care to relieve pressure on emergency departments and urgent care centres.
- Enhancing team-based care, which will encourage developing integrated teams that may include family physicians, nurse practitioners, registered nurses, dietitians and pharmacists to provide patients with the best care possible.
- Adding efficiencies in clinical operations to simplify processes for both patients and health care providers.
Alberta’s government is committed to improving access to family physicians. This new model fosters growth while addressing patient complexity, striking a balance that enhances access to quality care for all Albertans.

“This new model will strengthen comprehensive, cradle-to-grave primary care. These practices are the foundation of our health care system. The model will help us to retain the family medicine specialists and rural generalists we already have and will go a long way toward attracting more to Alberta.”

Dr. Shelley Duggan, president, Alberta Medical Association

“Family physicians welcome this announcement. For us, it signals government’s commitment to making primary care a priority within our health care system. I know many physicians are eager to begin working under this new model so they can stabilize their practices and focus on providing high-quality care to their patients.”

Dr. Sarah Bates, president, Section of Family Medicine, Alberta Medical Association

“Primary Care Alberta is pleased to see the extensive training, experience and leadership of family medicine specialists recognized. Primary care providers play an integral role in the health of Albertans. We look forward to working with government and family medicine specialists across the province to increase access to comprehensive primary care for all Albertans, particularly in rural and remote communities.”

Kim Simmonds, CEO, Primary Care Alberta

“The PCPCM model is an important step forward in connecting every Albertan with a family physician and medical home.”

Dr. Melanie Hnatiuk, president, Alberta College of Family Physicians

Alberta International Medical Graduate Program changes

Alberta’s government is also making changes to the Alberta International Medical Graduate Program (AIMG) to better support Albertans who are studying medicine abroad and help them complete their residency in Alberta. The program assesses the qualifications of Alberta international medical graduates (IMGs) to determine their eligibility for medical residency positions at the University of Alberta and University of Calgary, but it does not select who is chosen for a residency position.

The changes will adjust the graduation deadline and remove the requirement for an externship assessment, which previously required Alberta IMGs to complete a clinical assessment period in Alberta before beginning residency. Now, they can begin right after graduation. The application period for 2026 is from May 1 to May 30, 2025.

For the 2026 application cycle, applicants will be eligible if they graduate by July 1, 2026. Previously, applicants would have had to graduate by Dec. 31, 2025. These changes will make it easier for more Albertans to complete their residency here, helping to retain skilled health care professionals and build a stronger, more sustainable health care workforce for years to come.

Quick facts
- If passed, Budget 2025 will provide $66.3 million for postgraduate medical education programs in 2025-26, including $2.3 million for the AIMG Program.
- Alberta offered 55 IMG residency seats in 2025, with plans to expand to 70 by 2028, and additional IMGs will also have the opportunity to fill unfilled Canadian medical graduate seats.
- Adjustments to the AIMG program will go into effect for the class of 2026; physicians wanting medical residency positions need to apply to the program in May 2025.
Related information
- Primary care physician compensation model
- Alberta International Medical Graduate Program
- Modernizing Alberta’s Primary Health Care System (MAPS)
Related news
- New pay model, better access to family doctors (Dec. 19, 2024)
- Competitive compensation for resident physicians (Oct. 9, 2024)
- Modernizing how family doctors are paid in Alberta (April 17, 2024)
- Stabilizing Alberta’s primary health care system (April 4, 2024)
- Helping primary care providers support patients (Feb. 8, 2024)
- New funding to stabilize primary health care (Dec. 21, 2023)
- Strengthening health care: A collaborative effort (Oct. 24, 2023)
- Strengthening health care: Improving access for all (Oct. 18, 2023)
MIL OSI Canada News –
March 25, 2025

Category: Health

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