Category: Universities

MIL-OSI Russia: Polytechnic Chamber Choir Performs in Armenia

Translartion. Region: Russians Fedetion –

Source: Peter the Great St Petersburg Polytechnic University – Peter the Great St Petersburg Polytechnic University –

Last week, the SPbPU Chamber Choir under the direction of Alexandra Makarova visited Yerevan. The creative delegation was hosted by the Russian-Armenian University, a strategic partner of SPbPU. The polytechnicians prepared a program of world music especially for their performance in Armenia, having learned Armenian songs. At a large rehearsal before the concert for students and teachers of the RAU, the polytechnicians took an Armenian language lesson to achieve perfect pronunciation.

It was impossible to imagine what a profound impression this would make on the audience. The university administration, teachers and students were touched by the way the Polytechnic students performed the prayer that is sung during the liturgy of the Armenian Apostolic Church. And they were no less surprised by the Georgian folk song “Lalebi” that sounded at the end of the concert. RAU Rector Edward Sandoyan did not expect that the performance of the Polytechnic choir would become such a grand unifying event.

“In just an hour, I am expecting guests from Georgia, led by the rector of the Caucasus University, Kakha Shengelia,” said Edward Sandoyan. “While he is on the way, I just sent him your performance of ‘Lalebi’ – he is crying because I wrote that it is the choir of the St. Petersburg Polytechnic University performing a Georgian song at the Russian-Armenian University. We have all accumulated so many problems. You can spend years, months, hours telling a Georgian, an Armenian, an Uzbek how important it is for us to be together, but one song like this is enough for them to understand everything. What you are doing is very important, so important that you cannot even imagine it. Thank you, the university, and the rector, Andrei Ivanovich Rudskoy!”

RAU organized an excursion for the polytechnics to Lake Sevan, the city of Dilijan and one of the world’s largest repositories of ancient manuscripts, Matenadaran. Armenia is one of the most ancient countries with numerous temples, monasteries and churches. The choir members had a unique opportunity to sing in the Sevanavank Monastery, founded in 874, and the 12th-century Haghartsin monastery complex. And in these medieval shrines, the Armenian prayer was performed by students from Russia. The final event of the creative delegation’s visit to Yerevan was a concert at the Moscow House.

“The audience highly appreciated the performance of the SPbPU Chamber Choir, surprised that engineers, physicists, and programmers perform such music professionally. All this is thanks to the efforts of the choir director Alexandra Makarova and choirmaster Ivan Egorov, and, of course, the great support of the SPbPU rector’s office,” noted the head of the SPbPU Directorate of Cultural Programs and Youth Creativity Boris Kondin. “The Polytechnic University not only educates the future engineering elite of the country, but is also engaged in the formation of Russia’s cultural sovereignty. We now know this for sure!”

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 Russia: Polytech and Legion signed a strategic partnership agreement

Translartion. Region: Russians Fedetion –

Source: Peter the Great St Petersburg Polytechnic University – Peter the Great St Petersburg Polytechnic University –

On March 24, a strategic partnership agreement was signed between Peter the Great St. Petersburg Polytechnic University and the Legion company. The signatures were put by SPbPU Rector Andrey Rudskoy and Legion CEO Radik Shayakhmetov. The document envisages the development of cooperation in scientific, educational, industrial, socio-economic and innovative spheres.

The agreement is aimed at cooperation between the Polytechnic University and Legion in various areas, such as professional training of personnel, conducting scientific research, including using innovations, creating organizational, scientific and innovative potential, developing and implementing joint projects and programs, etc.

The company specializes in the development and production of unmanned aerial vehicles, including for the Navy. The meeting participants discussed the possibility of using the enterprise’s production facilities to implement the university’s developments. The event was also attended by Oleg Ipatov, Director of the Center for Scientific and Technological Partnership and Targeted Training. Radik Shayakhmetov noted that the company is in the process of relocating its production facilities from Ufa to St. Petersburg, and therefore there is interest in cooperation in the educational sphere to address the company’s personnel needs.

At the university, Legion representatives met with Vice-Rector for Research Yuri Fomin, visited the Center for Technological Projects, and held a working meeting with its director Alexei Maistro.

Photo archive

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-Evening Report: Tax cuts are coming, but not soon, in a cautious budget

Source: The Conversation (Au and NZ) – By John Hawkins, Senior Lecturer, Canberra School of Politics, Economics and Society, University of Canberra

Today’s budget is a cautious and responsible response to the cost-of-living pressures facing voters.

As noted ahead of budget night, many of the major spending initiatives had already been announced.

But, in the only major surprise, there are income tax cuts for all income taxpayers. Even if we need to be patient. The new tax cuts only start in July 2026, with a second round in July 2027.

And as Treasurer Jim Chalmers himself said, they are “modest” cuts. A worker on average earnings will receive A$268 in the first year, rising to $536 in the second year.

Combined with the government’s first round of tax cuts in last year’s budget, this will add up to $2,190 per year in 2027.

The cost to the budget of the latest tax cuts in 2026-27 will be $3 billion, and over three years will be $17.1 billion. The cuts still need to pass parliament.

But calls by economists such as Chris Richardson and Ken Henry for major tax reform have not been heeded. Major reforms inevitably create losers as well as winners. So, big changes were never likely just weeks before an election.

And there is still bracket creep (increases in tax revenues as taxpayers move into higher tax brackets) over the next decade. Total tax receipts are projected to rise from 25.3% of gross domestic product (GDP) in 2024-25 to 26.8% in 2035-36. This will do most of the work in the very gradual windback of the budget deficit.

How concerned should we be about the budget moving into deficit?

In the first back-to-back surpluses for almost 20 years, there were budget surpluses in 2022-23 and 2023-24. This year we are returning to deficit and further deficits are expected for about a decade. Should we be alarmed?

A balanced or surplus budget is not necessarily a good budget. What we want is a budget appropriate to current economic conditions and sustainable in the long run.

The Australian economy has only been growing modestly in recent years and is forecast to grow 1.5% in the current year. Inflation is near the target range in underlying terms. So, a modest deficit is not unreasonable.

The longer run projections show a very gradual return to balance. But this assumes no recession and no further income tax cuts, for a decade. It might be better to rebuild the fiscal position more quickly so as to be better placed to provide fiscal stimulus in the event of a global recession or another pandemic.

‘A new world of uncertainty’

As Chalmers said, we are in a “new world of uncertainty” with “the threat of a global trade war”. The volume of Australian exports is forecast to only expand by 2.5% in 2025-26 and 2026-27, but it could be lower.

In February, the Reserve Bank forecast headline inflation would rebound above the 2% to 3% target range when the electricity rebates expired. The extension of the rebates in Tuesday’s budget as well as the reductions in the price of prescription medicines will help keep inflation below 3%. Headline inflation is forecast to improve to 2.5% in 2026-27.

In the December 2024 budget update, the unemployment rate was forecast to be around 4.5% in mid-2025 and stay around that level for the next couple of years. Given the unemployment rate was steady at 4.1% in February, the reduction to 4.25% seems plausible.

What will it mean for interest rates?

One reason the government went for a modest tax cut rather than a wild “cash splash” is it did not want to undermine the narrative there will be future interest rate cuts by stimulating household spending too much.

If households were given immediate cash to spend, this could drive up inflation.

The Reserve Bank is unlikely to change interest rates at its April 1 meeting. But it would be very unhelpful for the government’s electoral prospects if the minutes showed the central bank had become more concerned about inflation and less likely to cut interest rates at future meetings.

The Reserve Bank is unlikely to feel this budget contains enough government spending to boost economic activity in the near term and therefore change its view on the economic outlook.

So, a further interest rate cut remains possible at the bank’s following meeting on May 20.

And any further relief on interest rates would be welcomed by households – as well as whoever might be in government by then.

John Hawkins was a formerly a senior economist at the Treasury and Reserve Bank.

– ref. Tax cuts are coming, but not soon, in a cautious budget – https://theconversation.com/tax-cuts-are-coming-but-not-soon-in-a-cautious-budget-253027

MIL OSI Analysis – EveningReport.nz –

March 25, 2025
MIL-Evening Report: The 2025 budget has few savings and surprises but it also ignores climate change

Source: The Conversation (Au and NZ) – By Stephen Bartos, Professor of Economics, University of Canberra

By the standards of pre-election budgets, this one is surprisingly modest. There are only a handful of new revenue and spending initiatives. The Budget Paper 2 book, which contains new measures, is a slim document.

In part, this is because many of the most significant new spending proposals have been announced already – support for more bulk billing, the Future Made in Australia program, funding for schools and pre-schools and the Housing Australia Future Fund.

It can be hard to discern the new initiatives from the old. For example, the budget commits the government to support wage growth by “funding wage increases for aged care workers and early childhood educators” and “advocating for increases to award wages”. It will also ban non-compete clauses (contract provisions that hinder workers from moving between employers) for low- and middle-income workers.

These should in theory significantly shift wages upwards. Yet the economic forecast for the wage price index barely moves – from 4.1% in 2023-24 to 3% in 2024-25 and 3.25% in 2025-26. That is because the forecasts had already built in assumptions on the impact of things like aged care and childcare wage rises – they aren’t new.

The non-compete reform is a new initiative and over the longer term has the potential to improve wages as people move jobs. More importantly, it will improve flexibility in the labour market and improve productivity.

Overall, the deficits are forecast to continue for the foreseeable future.

Some more tax cuts on the way

The one surprising element of the budget is tax cuts. In essence, they return some bracket creep to low- and middle-income earners for a couple of years, after which revenue estimates return to trend. Bracket creep refers to increases in tax revenues as taxpayers move into higher tax brackets.

It is one of the reasons why governments have resisted calls to index the income tax brackets to inflation. Giving back bracket creep from time to time in the form of a tax cut, especially when an election looms, is more politically attractive.

There were few savings initiatives. The main one was the old chestnut of more funding to the Australian Taxation Office for compliance.

The Taxation Office receives an additional A$999 million over four years to combat tax avoidance including non-compliance, under reporting of income and illicit tobacco. This is expected to recoup $3.2 billion over five years, while increasing payments by $1.4 billion – some of the additional tax collected will go to GST payments to the states. So in net terms therefore this is also a modest saving.

One thing to look for in every budget is the provision for “decisions taken but not yet announced”. This refers to money put aside in the budget for future announcements – such as election promises.

It is not clear what the government might have planned. Revenue drops in 2025-26, but it climbs back up again in the following two years. Spending decisions include $323 million next year, which is relatively small change in the overall budget.

For transparency, we should not have any undisclosed decisions but at least the ones in this budget are far from extravagant.

Public service numbers

On staffing in the public service, there has been a large increase since the government took office. There will be some 33,000 more public servants – the majority outside Canberra – in 2025-26 than in 2022-23. However, the rate of increase is slowing. Not all agencies have had staff increases in this budget.

Nevertheless, the government has devoted ten pages to arguments for investing in the public service, and why the public service is a valuable resource. This is probably to emphasise one of the few points of difference between it and the opposition.

The defence budget saw almost no change. The treasurer was asked in his budget lockup press conference why this was, given the uncertain geopolitical environment documented in the budget papers.

Chalmers agreed “the world is a dangerous place right now” but pointed to increases in defence spending in previous budgets and argued these had positioned Australia to respond.

One missing element of the budget is new spending to combat climate change. The threat of climate change to the budget estimates has grown significantly. This is acknowledged briefly with a half page in the budget’s “statement of risks” – “climate change is expected to have a significant impact on the budget”.

However, that impact is not quantified – possibly because of “significant uncertainty”. Yes, there is uncertainty.

But the same applies to other parts of the budget, including the international economy, which is discussed in much more depth. The climate change department is one of a handful that lose staff in this budget. It may take more severe disasters before it regains prominence in the budget papers.

Stephen Bartos does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. The 2025 budget has few savings and surprises but it also ignores climate change – https://theconversation.com/the-2025-budget-has-few-savings-and-surprises-but-it-also-ignores-climate-change-253026

MIL OSI Analysis – EveningReport.nz –

March 25, 2025
MIL-OSI: Vect-Horus appoints Carole Imbert as Chief Financial Officer to further reinforce its executive management team
Source: GlobeNewswire (MIL-OSI)

PRESS RELEASE
- Brings extensive experience in investor relations and financial research and analysis
- Will drive financial strategy to support internal pipeline and partnerships
Marseille, France, March 25, 2025 – Vect-Horus, a privately held biotechnology company that designs and develops molecular vectors facilitating the targeted delivery of therapeutic molecules and imaging agents, today announced the appointment of Carole Imbert as Chief Financial Officer and to the Executive Committee.

Carole Imbert brings a wealth of experience in financial management and structuring. Most recently at Crédit Mutuel Arkéa, she served as Head of Financial and ESG Research for Arkea Investment Services, overseeing the asset management divisions of Schelcher Prince Gestion and Federal Finance Gestion. She has also held senior positions as a Financial Analyst at Natexis, CPR, and Exane and as Head of Investor Relations and Financial Communication at both BIC and Eurazeo. She holds degrees from the Institut Supérieur de Gestion and the Société Française des Analystes Financiers.

“We are thrilled to welcome Carole to our management team. Her extensive background in financial strategy and investor relations will be complementary to our existing skilled team, and an invaluable asset to drive our growth and secure a strong financial position to underpin development of our vectors that facilitate targeting and delivery of therapeutics,” said Alexandre Tokay, co-founder and CEO of Vect-Horus. “Carole’s leadership will be crucial in driving our financial strategy forward, based on our proprietary VECTrans® technology both to develop an internal pipeline of products and through partnerships.”

This is a further reinforcement of the experienced Vect-Horus leadership and will drive forward the company’s financial strategy. It follows the recent appointments of two new Board members: Jerome Berger, with vast expertise in strategy, finance, and venture capital in the technology and life sciences sectors, and Jean-Christophe Dantonel, who has more than two decades of profound expertise in biological sciences, project management, and clinical research.

Carole Imbert said: “I am excited to join Vect-Horus to collaborate with a very skilled team at this pivotal moment in the company’s journey, with an impressive technology and pipeline and a dozen collaborations, including three strategic licensing agreements with major pharmaceutical companies. I am looking forward to strengthen the financial strategy of the Company to ensure smooth continuity and support Vect-Horus’ mission to enhance transport of therapeutics across biological barriers.”

About Vect-Horus

Vect-Horus designs and develops vectors that facilitate targeting and delivery of therapeutic or imaging agents to organs, including the brain, and to tumors. Founded in 2005, Vect-Horus is a spin-off of the Institute for Neurophysiopathology (INP, UMR7051, CNRS and Aix Marseille University), formerly headed by Dr Michel Khrestchatisky, co-founder of the company. Vect-Horus has 42 employees (most in R&D).

To learn more about Vect-Horus, visit www.vect-horus.com.

Contacts

    For more information, please contact Vect-Horus

    Emmanuelle Bettendorf, BD & Alliance Management,

    Vect-Horus contact@vect-horus.com

    Media Relations

    Sophie Baumont, Cohesion Bureau – sophie.baumont@cohesionbureau.com

Attachment
- 2025-03-25 – Vect-Horus_CFO_PR_EN_Final
The MIL Network –
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 Russia: NSU scientists receive RSF grant for development of energy technologies in the context of climate change

Translartion. Region: Russians Fedetion –

Source: Novosibirsk State University – Novosibirsk State University –

The Russian Science Foundation has summed up the results of the competition in the priority area of activity “Conducting research by world-class scientific laboratories within the framework of implementing the priorities of scientific and technological development of the Russian Federation.” The Laboratory of Advanced Energy-Efficient Technologies, created under a mega-grant, was among the winners. Faculty of Physics, Novosibirsk State University with the project “Development of energy technologies in the context of climate change” (No. 25-79-30002), headed by Academician of the Russian Academy of Sciences, Head of the Department of Physics of Nonequilibrium Processes at the Physical Department of NSU, Scientific Director of the NSU LabPET and the Institute of Thermal Physics of the Siberian Branch of the Russian Academy of Sciences, Chairman of the National Committee of the Russian Academy of Sciences on Heat and Mass Transfer, laureate of the International Prize “Global Energy” Sergei Alekseenko.

— Energy is the basis of the economy of any country, regardless of the technological structure. The relevance of the topic of “anthropogenic climate change” is due to the fact that the predominant contribution to global warming, the destruction of the Earth’s ozone layer and climate change in general is made by energy on organic fuel.

Our project is aimed at solving scientific problems of low-carbon and environmentally friendly energy development, allowing not to create, but to solve environmental and man-made problems of the Russian Federation and, in particular, the energy-rich Siberian region, effectively improving the environment to create more comfortable living conditions for humans. The undoubted advantage of this project is the comprehensive approach to achieving technological development in the energy sector of the Russian economy. Most of the problems addressed by this project are actively discussed in world literature, but the lack of practical solutions related to increasing the energy efficiency of existing technologies together with increasing their sustainability and reliability, in the context of existing climate risks, is repeatedly mentioned, – explained Sergey Alekseenko.

Currently, the energy sector is undergoing significant transformations, both related to climate change and caused by the overall direction of development to improve the efficiency of hydrocarbon processing and the introduction of new energy sources. Since Russia is in extremely difficult sanctions conditions, there is an urgent need to develop domestic technologies in almost all areas of energy and the economy. The ongoing modernization and improvement of energy efficiency, the development of renewable energy sources and technologies that reduce carbon dioxide emissions, but at a rate that does not exceed the country’s economic capabilities, is becoming an urgent task.

“The primary objectives of our scientific research are the development of low- and carbon-free energy technologies, as well as increasing the efficiency of energy equipment, which will help reduce the anthropogenic impact on climate change and the destruction of the Earth’s ozone layer,” explained Sergei Alekseenko.

The project plans to conduct research in five main areas. The first is to increase the efficiency of using solid fossil fuel (coal) — the primary source of heat and electricity in Siberia and the Far East. It is aimed at environmentally friendly combustion of this type of fuel and the use of currently unclaimed low-calorie coal waste through the development of new technologies for separate and joint combustion of coal-water and pulverized coal fuel. To achieve these goals, the scientific foundations and mathematical modeling of promising approaches to environmentally friendly combustion of coal fuel in combustion chambers, the improvement of low-emission vortex technologies for multi-stage combustion and gasification, and the use of machine learning methods will be developed. The development of technology for separate and joint combustion of coal-water and pulverized coal fuel will ensure high boiler efficiency and low emissions of environmentally harmful NOx, which is one of the primary tasks of energy development in the Russian Federation.

The second area of research is hydrokinetic conversion of natural flow energy: the basis for creating new modern technologies for producing and accumulating energy at pumped storage power plants (PSPP). In this area, it is necessary to achieve a reduction in resistance in the elements of energy structures. Within the framework of the project, scientists will form a scientific basis for creating modern technologies for producing and accumulating energy based on PSPP. The results obtained will contribute to the development of highly efficient energy storage technology, equalization of the heterogeneity of the electrical network load, as well as optimization and implementation of new renewable energy sources.

The third direction will be devoted to the development of energy technologies based on the utilization of low-potential waste man-made and geothermal heat sources in absorption lithium bromide thermal transformers (ABTT). In this direction, it is planned to conduct a study of heat and mass transfer processes to improve energy efficiency and reduce the metal consumption of ABTT to enhance competitiveness in the domestic market of the Russian Federation. The use of ABTT as heat pumps will significantly reduce fuel consumption and utilize waste heat from enterprises, thermal power facilities and renewable geothermal sources.

The object of research within the fourth direction of the project will be energy-efficient low-carbon technologies for cultivating microorganisms as a source of thermal energy from biomass with a high growth rate, and a source of unique biologically active compounds, as well as efficient utilization of CO2 emissions and wastewater treatment from organic waste of various agricultural enterprises. The project will develop scientific principles of vortex mixing and technical solutions for efficient cultivation of photosynthetic microorganisms of various systematic groups. The results in this area will allow significant progress in the utilization of CO2 emissions and additional treatment of wastewater from industrial enterprises, especially in regions with high solar intensity (Crimea, Krasnodar Krai).

Another area of research within the framework of this project will be the development of scientific foundations and technologies for combating icing of load-bearing structures of energy facilities and cable routes in winter climate conditions and in the Arctic regions of the Russian Federation. A system of measures will be developed related to the development of a new technology for the use of superhydrophobic coatings. As a result of the study, scientists plan to determine a combined model of an anti-icing system that is optimal in terms of energy costs and efficiency and to develop a strategy for combating icing.

— The expected result of the project will be the creation of scientific foundations for increasing the efficiency of energy technologies and the development of a concept for adapting the existing energy infrastructure to climate change. The results obtained in each of the five main areas of the project will contribute to the further development of energy, taking into account the existing climatic zones of our country, — said Sergey Alekseenko.

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

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Toronto, Ontario

Canada M5V 0S8

Telephone 001 (416) 362-0714

www.middlefield.co.uk

The MIL Network –

March 25, 2025

MIL-Evening Report: Why is the US group chat on Houthi attack plans so concerning? A military operations expert explains

Source: The Conversation (Au and NZ) – By Jennifer Parker, Adjunct Fellow, Naval Studies at UNSW Canberra, and Expert Associate, National Security College, Australian National University

A report in The Atlantic today sent shockwaves through Washington and beyond: senior US officials shared military operations for a bombing campaign against Houthi rebels in Yemen in a Signal group chat that inadvertently included the magazine’s editor.

Military planning of this nature is highly classified, which is why some media outlets are characterising it as “an extraordinary breach of American national security intelligence”.

Here are three key reasons why this incident is so concerning, and how such conversations are typically handled.

What are the potential consequences of this kind of breach?

From an operational and strategic level, this incident could have had significant implications.

Had the Houthis or their Iranian backers managed to access this information, they could have moved the individuals or equipment that was being targeted, making the strikes ineffective.

In addition, depending on what military assets the US was using to conduct the strikes – for example, ships and aircraft – the information could have given away their positions. This could have allowed the Houthis to pre-emptively target these assets, which is another significant concern.

Or, the Houthis could have pre-emptively attacked something else, such as oil facilities in neighbouring Saudi Arabia, which they have targeted successfully in the past.

At the strategic level, this breach provides an insight into the dynamics of the people involved in the key defence decision-making in the Trump administration. Many names were reportedly shared, including an active intelligence officer.

If America’s adversaries were able to access this information, they could use it to target these people or people around them.

More broadly, this incident is just a bad look. This is a classified discussion about military planning being conducted on an unclassified platform that was accessed by a journalist who didn’t have high-level clearances and shouldn’t have had access to the information.

How are classified conversations usually conducted?

During my time in the Australian Defence Force, I was a former director of operations of a 38-nation coalition of maritime forces in the Middle East.

And I was quite surprised to see these US plans being discussed on Signal.

Normally, operations of this kind are discussed strictly on secure, classified devices only, such as phones or laptops. Military commanders are contactable on these devices at all hours of the day or night.

These devices are “cleaned” before they’re issued by the Department of Defence and regularly checked. You can’t plug a foreign device into them, which ensures they can’t be compromised in any way. Any communications that take place on these devices would also be encrypted.

In addition, on a classified network, it would be impossible to add someone to a conversation in the way the Atlantic editor was, unless they had access to the same secure technology.

I would be highly surprised if the US secretary of defence, Pete Hegseth, and the national security advisor, Mike Waltz, do not have access to these devices. They may have chosen to have this conversation on Signal for ease, but it clearly makes the information much more vulnerable.

If high-level conversations do need to happen on an unclassified platform like Signal, the participants would normally use a code word that doesn’t give away what they’re talking about. This keeps a conversation encrypted to a degree until a secure device can be accessed.

Should America’s allies worry about intelligence lapses, too?

The US’ key partners and allies should seek to have a conversation with the Americans behind closed doors to understand the context of what happened.

The big questions are: what does this kind of lapse mean and what is the US doing to address it?

The US National Security Council has already said it intends to look at the situation in depth.

So, at this stage, I don’t think America’s Five Eyes partners should necessarily be concerned about the potential for other intelligence breaches.

Jennifer Parker does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Why is the US group chat on Houthi attack plans so concerning? A military operations expert explains – https://theconversation.com/why-is-the-us-group-chat-on-houthi-attack-plans-so-concerning-a-military-operations-expert-explains-253029

MIL OSI Analysis – EveningReport.nz –

March 25, 2025
MIL-OSI China: CDF speakers optimistic about China’s economy

Source: China State Council Information Office

Guest speakers at the Symposium on Macro Policies and Economic Growth at the China Development Forum (CDF) 2025 expressed optimism about China’s economy despite global uncertainties.

The Symposium on Macro Policies and Economic Growth at the CDF 2025 is held at the Diaoyutai State Guesthouse in Beijing, March 23, 2025. [Photo courtesy of China Development Forum 2025]

The symposium held in Beijing on March 23 highlighted the significant transformations and uncertainties the world is undergoing, driven by shifting geopolitical dynamics, trade disruptions, financial instability and rapid technological advancements.

In light of increasing external uncertainties and instabilities, Han Wenxiu, executive deputy director of the General Office of the Central Commission for Financial and Economic Affairs, stated, “China will respond to external uncertainties with high-quality development, striving to provide a ‘stable anchor’ for global economic growth.” He also expressed confidence that China’s commitment to high-quality development will add stability and certainty to global prosperity and development.

Han Wenxiu, executive deputy director of the General Office of the Central Commission for Financial and Economic Affairs, speaks at the Symposium on Macro Policies and Economic Growth at the CDF 2025, Beijing, March 23, 2025. [Photo courtesy of China Development Forum 2025]

Such optimism about China’s economic achievements and prospects was echoed by the foreign guest speakers attending the CDF.

“Over the past four decades, China has achieved one of the most remarkable development transformations,” said Dilma Rousseff, president of the New Development Bank and former Brazilian president.

Masato Kanda, president of the Asian Development Bank, also praised China’s economic achievements over the past 40 years, noting the significant progress made in lifting hundreds of millions of people out of poverty and establishing globally competitive industries and vibrant cities .

Innovation is another key focus at this year’s CDF, particularly in AI and green development sectors, both vital for tackling global economic challenges.

According to Joseph Stiglitz, a professor at Columbia University and the 2001 Nobel laureate in economics, China’s innovative achievements in solar panels, renewable energy and electric vehicles are crucial for the world’s efforts to address climate change.

“Technological innovation has long been at the core of China’s national strategy,” Rousseff noted. She praised the recent achievements of China’s AI pioneer DeepSeek for its role in transforming both high-tech and traditional industries.

Looking ahead, opening up and international cooperation will be essential amid the uncertain international situation.

“Regardless of the evolving international landscape, China will steadfastly promote high-level opening up, and steadily expand institutional openness,” Han said, calling for collaborative efforts that promote mutual benefits.

Lan Fo’an, Chinese minister of finance, said, “We are confident in China’s future development and are willing to work together with countries around the world to create a better future.”

Rousseff and Kanda reinforced this sentiment, emphasizing that China’s experience in economic development will provide valuable insights for the Global South, the Asia-Pacific region, as well as emerging markets and developing countries.

The China Development Forum 2025, themed “Unleashing Development Momentum for Stable Growth of Global Economy,” was held in Beijing from March 23 to 24.

Around 750 foreign representatives and 130 domestic attendees, including entrepreneurs, government officials, experts and representatives from international organizations, participated in the forum, which was co-hosted by the Development Research Center of the State Council and the China Development Research Foundation.

Participants attend the Symposium on Macro Policies and Economic Growth at the CDF 2025 in Beijing, March 23, 2025. [Photo courtesy of China Development Forum 2025]

MIL OSI China News –

March 25, 2025
MIL-Evening Report: A budget splash to conserve 30% of Australia’s lands will save species – if we choose the right 30%

Source: The Conversation (Au and NZ) – By James Watson, Professor in Conservation Science, School of the Environment, The University of Queensland

Hans Wismeijer/Shutterstock

In 2022, Australia and many other nations agreed to protect 30% of their lands and waters by 2030 to arrest the rapid decline in biodiversity.

Since then, the Albanese government has protected large new areas of ocean, taking the total up to 52% of territorial waters. In tonight’s federal budget, the government is expected to announce A$250 million in funding to protect an additional 30 million hectares of land over the next five years. At present, Australia protects 22% of its lands through its National Reserve System. This would take the total to 30%.

You might expect conservationists to be ecstatic. But we’re not. Large new areas of desert and arid areas are likely to be protected under this scheme, because these areas have minimal population and are not sought after by farming. But these ecosystems are already well protected.

We have to come back to the point of the 30 by 30 agreement: protect biodiversity. That means the government has to protect representative samples of all ecosystems – including in areas sought for farming or other human uses.

This cropped map shows Australia’s protected lands and waters as of 2022. Subantarctic islands are not included.
Australian Department of Climate Change, Energy, the Environment and Water, CC BY

Buying land is only a fraction of the task

For years, Australia’s National Reserve System of national parks, state parks and Indigenous Protected Areas has languished. The last big infusion of funding and political interest came between 2007 and 2010 under a previous Labor government, when Peter Garrett was environment minister. Then, the government expanded the reserve system, grew Indigenous Protected Areas and ensured new reserves would preserve a representative sample of Australia’s ecosystems.

Since then, conservation efforts have largely not been up to scratch. Funding has stagnated. National parks are riddled with invasive species and other environmental problems.

On funding grounds alone, the $250m announced by Environment Minister Tanya Plibersek is welcome. It is, however, just a fraction of what’s needed to properly protect the right areas.

In 2023, environmental organisations called for a $5 billion fund to buy and protect important habitat – and to pay for maintenance.

The purchase of land represents perhaps 10% of the overall cost of conservation. If you buy land and do nothing, it can be overrun by invasive species. Australia’s ever-larger number of threatened species are often threatened because of these species, as well as the growing threat of land clearing in Queensland and the Northern Territory. Fire management is another cost.

Feral pigs and other invasive species place pressure on many ecosystems.
Russ Jenkins/Shutterstock

Which lands actually need protection?

As successive governments have backed away from conservation, non-government organisations such as the Australian Land Conservation Alliance, Bush Heritage Australia and Australian Wildlife Conservancy have stepped up. These organisations are doing fine work in protecting land and doing the necessary on-ground land management to safeguard threatened species and ecosystems, but they do not have access to resources at a government scale.

So how will this government funding be used? It’s likely we will see further growth in Indigenous Protected Areas – areas managed by Traditional Owners alongside authorities to protect biodiversity.

These areas are often located where low rainfall often means they are not viable for farming. This means there’s less conflict over what to do with the land. If our government is determined to meet the 30% target as quickly and cheaply as possible, we may well see more arid lands and desert protected.

When you set a target of 30% protected land by 2030, governments often see the top-line figure and aim for that alone. But the text of the international agreement stresses the need to prioritise “areas of particular importance for biodiversity”.

Governments have a choice: the easy, less effective way or the hard but effective way. The recent growth in marine protected areas suggests the government is taking the easy path. Even though the science is clear that marine parks bolster fish stocks in and outside the park, they are still controversial among fishers who believe they are being locked out.

As a result, Australia’s marine park system has made greatest gains where there are very few humans who might protest, such as quadrupling the protected areas around the very remote Heard and McDonald Islands in the sub-Antarctic region. (The government has expanded marine parks at a smaller scale closer to population centres too.)

This same story may well play out on land.

What would it look like if our government was willing to do what was necessary? It would involve actively seeking out the ecological communities in clear decline, such as native grasslands, brigalow woodlands and swamps, and buying up remaining habitat.

The oceans off Heard and McDonald Islands are now better protected – but was this the easy option? Pictured: Heard Island from satellite.
zelvan/Shutterstock

Saving here, clearing there

On the one hand, 22% of Australia’s land and 52% of seas come under some form of protection. But on the other, over the last two decades an area the size of Tasmania has been cleared – largely for livestock farming and mining. Satellite analyses show land clearing is actually increasing in many parts of the country.

Land clearing places further pressure on threatened species. In fact, most species considered threatened with extinction are largely in this situation because the land they live on has attributes prized by farmers or graziers, such as grass and water.

Australia’s environment faces real challenges in the next few years. Intensified land clearing, worsening climate change and whiplash drought-flood cycles, to say nothing of ballooning feral populations.

If we protect the right 30% of Australia, we have a chance to ensure most of our ecosystems have areas protected. But if we protect the wrong 30% and leave the rest open to bulldozers, we will only lock in more extinctions.

James Watson has received funding from the Australian Research Council, National Environmental Science Program, South Australia’s Department of Environment and Water, Queensland’s Department of Environment, Science and Innovation as well as from Bush Heritage Australia, Queensland Conservation Council, Australian Conservation Foundation, The Wilderness Society and Birdlife Australia. He serves on the scientific committee of BirdLife Australia and has a long-term scientific relationship with Bush Heritage Australia and Wildlife Conservation Society. He serves on the Queensland government’s Land Restoration Fund’s Investment Panel as the Deputy Chair.

– ref. A budget splash to conserve 30% of Australia’s lands will save species – if we choose the right 30% – https://theconversation.com/a-budget-splash-to-conserve-30-of-australias-lands-will-save-species-if-we-choose-the-right-30-252918

MIL OSI Analysis – EveningReport.nz –

March 25, 2025
MIL-OSI New Zealand: Universities – Firm but fair: students’ verdict on best teachers – UoA

Source: University of Auckland (UoA)

It’s official: students don’t like getting yelled at but do want clear boundaries. Teachers who are respectful and kind but firm are key factors in a good school, according to a new report from the University of Auckland.

With a focus on what makes good schools and teachers, the Our Voices Project, based in the University’s Faculty of Arts and Education, has analysed responses to a range of questions by around 1,000 13-year-olds from the Growing Up in New Zealand (GUiNZ) study.

And in relation to teachers, three common threads have emerged, says lead investigator, Associate Professor Kane Meissel.

“Relating well to their students, being skilled at teaching, and managing the classroom

effectively are the most important things for teachers to be doing, according to our young respondents,” he says.

Being knowledgeable in both their subject area and teaching methods, being passionate about their subject and striking the right balance between control and respect were also mentioned as important, says Meissel.

And in terms of what makes a good school, he says being “safe and friendly” ranked highly, as did having a diverse range of fun academic and extracurricular activities, a low number of bullies and a proactive and genuine approach to addressing bullying.

In general, Meissel says, researchers were impressed by the maturity of these young people’s responses and their commitment to learning.

“Many noted the importance of learning for their future selves, but also expressed concern about bullying and felt more needed to be done to promote acceptance of difference,” he says

“To really help students learn, schools must be safe places that ideally cater for their emotional and mental wellbeing needs, as well as academic, and offer them opportunities to develop their interests.”

Meissel believes it makes sense that if a school cultivates a positive climate that supports holistic growth, that will in turn foster academic learning and achievement.

He says it makes sense that if a school cultivates a positive climate that supports holistic growth, that will in turn foster academic learning and achievement.

“Interpersonal relationships, between students, and teachers and students, are central to a positive school experience, and our rangatahi aspire to be good people and want to surround themselves with good people.”

Meissel says this research has highlighted the importance of establishing clear boundaries and mutually respectful relationships if students are to achieve well and feel happy at school.

“The responses make it clear that young people see the importance of school but also want to enjoy the ‘here and now’ of school life. They want their learning to be fun and to have opportunities to pursue their interests out of passion and curiosity.”

The report Schools & Teachers: Influences That Matter is by Georgia Rudd, Kallum Kirk, Anna McCardle, Anthony Pita, Elizabeth Peterson, Emma Marks and Kane Meissel.

The final report in the Our Voices ‘Summer Snapshot’ series will focus on the ways rangatahi seek help to solve problems.

The project aims to understand what young people in Aotearoa need to thrive to inform policies and services focused on their wellbeing.

It is funded by the Ministry for Business, Innovation and Employment and involves a multidisciplinary team of national and international experts.

Visit the Our Voices website for previous reports: https://ourvoices.auckland.ac.nz/

Tō Mātou Rerenga – Our Journey app and Growing Up in New Zealand
Data was collected within Tō Mātou Rerenga – Our Journey, an app co-designed by University of Auckland researchers alongside young people from the Growing Up in New Zealand longitudinal study (GUiNZ), New Zealand’s largest ongoing cohort study.

GUiNZ recruited more than 6,000 New Zealand children born between 2009 and 2010, with the aim of creating an in-depth summary of what life is like for them and what factors affect their happiness, health and development.

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: Booker, Rosen, Kim, and Schiff Joint Statement Marking Two Years Since Elizabeth Tsurkov’s Abduction in Iraq

US Senate News:

Source: United States Senator for New Jersey Cory Booker

WASHINGTON, D.C. – Today, U.S. Senators Cory Booker (D-NJ), a member of the Senate Foreign Relations Committee, Jacky Rosen (D-NV), Andy Kim (D-NJ), and Adam Schiff (D-CA) issued the following joint statement:

“As champions of human rights and freedom, as well as those wrongfully detained and held hostage all over the world, we call for the immediate and safe release of Elizabeth Tsurkov. Friday marked two years since Elizabeth, an Israeli-Russian citizen and Ph.D. candidate at Princeton University, was kidnapped in Baghdad by Kata’ib Hezbollah (KH), an Iranian-backed foreign terrorist organization. Ms. Tsurkov is a vocal and principled expert, journalist, and political scientist who traveled to Iraq to conduct fieldwork for her doctoral dissertation on strategies to reduce conflict and foster peace in the Middle East. We are deeply concerned about Elizabeth’s health and wellbeing and urge the Government of Iraq and all other regional governments that have influence and leverage to swiftly help secure her release on humanitarian grounds. There is no justification for hostage taking and it is horrifically egregious to kidnap a brave advocate for peace and coexistence in the region.”

Senator Booker continues to advocate for the release of Elizabeth Tsurkov, a Ph.D. candidate at Princeton University in New Jersey. Today, the two New Jersey Senators, Cory Booker and Andy Kim, sent a letter to President Trump, Secretary of State Marco Rubio, and Steven Witkoff, Special Envoy to the Middle East, requesting an update on the Administration’s efforts seeking Ms. Tsurkov’s safe release.

MIL OSI USA 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 China: Ukraine conflict brings EU-US ties to historic low

Source: China State Council Information Office

The recent U.S.-brokered Russia-Ukraine peace talks highlighted growing divisions between Washington and Brussels, bringing trans-Atlantic relations to a historic low, an Italian geopolitical analyst has said.

Sergio Fabbrini, a political science professor at Rome’s LUISS University, told Xinhua that the exclusion of Europe from the talks underscores the EU’s declining influence in resolving the Russia-Ukraine conflict, due in large part to the bloc’s lack of unified foreign policy coordination.

“This episode reveals the European Union’s structural weakness,” he said during a university conference on Monday. “Without a central authority to speak for all members, the bloc struggles to assert itself on the global stage, particularly when the U.S. chooses to act unilaterally.”

This institutional fragmentation, he said, coincides with the skeptical view of U.S. President Donald Trump’s administration of the EU. The U.S. president has repeatedly characterized the EU as “an institution designed to undermine American interests rather than bolster global security.”

Fabbrini emphasized the fundamental divergence in how both sides perceive the Ukraine crisis. “For Europe, this is an existential security threat happening on our doorstep. For Washington, it’s a geopolitical calculation involving great powers,” he said.

The professor warned that the current tensions mark “one of the worst crises in trans-Atlantic history,” urging Europe to develop more independent diplomatic capacity.

“Geographical reality demands that Europe take greater responsibility for its own security architecture while maintaining equilibrium between national interests and collective European stability,” he said.

MIL OSI China News –

March 25, 2025
MIL-Evening Report: Wage theft is now a criminal offence in NZ – investigating it shouldn’t be left to the police

Source: The Conversation (Au and NZ) – By Irene Nikoloudakis, PhD Candidate in Law, University of Adelaide

Getty Images

Being robbed is a horrible experience under any circumstances. But being robbed by your employer involves a unique betrayal of trust.

So it was a sign of real progress when “wage theft” finally became a crime in New Zealand earlier this month with the passage of the Crimes (Theft by Employer) Amendment Act.

Heralded by trade unions and the Labour Party as a victory for workers, the new law makes it a criminal offence under the Crimes Act for an employer to intentionally (and without reasonable excuse) fail to pay workers what they’re entitled to.

Wage theft can include deliberately underpaying wages or holiday pay, or making unlawful deductions from pay packets. The question now is how well the new law will be enforced.

While there is little research on how widespread wage theft in New Zealand is, we do know it all too often affects temporary migrant workers and those in labour-intensive industries such as hospitality, construction and horticulture.

But if, as seems likely, the police are tasked with investigating allegations of wage theft, the new law may struggle to be enforced effectively.

Who investigates wage theft?

Until the law change, wage theft was only addressed through the civil system, not the criminal courts. Underpaid employees could take an employer to court to recover what was owed – if they had the means to navigate what could be a complex process.

It took an initiative by former Labour MP Ibrahim Omer – who as a refugee in New Zealand had experienced wage theft – to begin the reform process. He introduced a members’ bill to parliament in 2023 seeking to make wage theft a criminal offence.

Under the new law, the maximum penalties for wage theft are the same as for general theft. For serious offences, this means employers can be imprisoned for stealing their workers’ pay.

The trouble is, the law doesn’t state which government agency will be responsible for investigating such crimes. This is important because adequately enforcing the law is the whole point.

A 2024 report by the Ministry of Justice had suggested investigative responsibility might sit with New Zealand’s workplace regulator, the Labour Inspectorate. This seemed a logical move.

But when the legislation was being debated in parliament, it became clear MPs assumed enforcement responsibility would lie with police. Confirming the law change this month, Labour MP Camilla Bellich said:

Theft is theft, and before this bill was law workers had to take up a civil case. Civil wage claims are difficult for any employee to initiate and often time consuming and expensive. Now workers can go to the police and report wage theft as a crime.

Former Labour MP Ibrahim Omer’s experience of wage theft as a refugee inspired him to change the law.
Getty Images

How Australia does it

On the face of it, the police might seem like the logical enforcement agency. They investigate crimes and play an important role in crime prevention. But wage theft isn’t an area they have dealt with before. And uncovering wage theft in practice is very difficult.

First, those most at risk – such as migrant workers and young employees – are the least likely to report it, often for fear of the consequences or because they simply don’t know how to make a formal complaint.

Secondly, bad employers are good at covering their tracks, leaving no paper trail or fudging the books.

Without specialised knowledge or experience in these areas – as well as dealing with their existing resourcing challenges – the police will potentially struggle to uncover wage theft offending.

A better model might be Australia’s criminal wage theft regime, which came into effect at the start of this year. Overall, it is tougher and more targeted than New Zealand’s.

The Australian law applies hefty maximum penalties for wage theft offences – up to ten years’ imprisonment and monetary fines in the millions. Investigations are the responsibility of the national workplace regulator, the Fair Work Ombudsman.

This makes sense, because it’s the Fair Work Ombudsman which has significant experience in uncovering breaches of national employment laws, not the police.

Put the Labour Inspectorate in charge

The equivalent enforcement agency in New Zealand is the Labour Inspectorate, whose entire remit is to uncover breaches of employment standards.

The Labour Inspectorate, far more than the police, will understand the intricacies of wage theft, including which workers and industries are most vulnerable, and what methods dodgy employers use to hide wage theft.

If necessary, the inspectorate’s powers and resources could be reviewed and modified to ensure it has the tools to conduct criminal investigations, including the ability to search and seize evidence.

Finally, empowering an agency with the right tools, knowledge and experience to investigate wage theft would leave the police to deal with the other serious crimes already demanding their attention.

Irene Nikoloudakis does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Wage theft is now a criminal offence in NZ – investigating it shouldn’t be left to the police – https://theconversation.com/wage-theft-is-now-a-criminal-offence-in-nz-investigating-it-shouldnt-be-left-to-the-police-252712

MIL OSI Analysis – EveningReport.nz –

March 25, 2025
MIL-Evening Report: The ICC showed its might by arresting Rodrigo Duterte. Its reputation will take longer to fix
Source: The Conversation (Au and NZ) – By Yvonne Breitwieser-Faria, Lecturer in International Law, Curtin University

Only five days after the arrest warrant against former Philippines President Rodrigo Duterte was issued, he was apprehended and immediately put on a plane to The Hague to face charges before the International Criminal Court (ICC).

The prompt action – and the fact he is the first former Asian head of state before the ICC – have been heralded as “a pivotal moment for the court”.

While this is a rare success story in the court’s tumultuous history, many challenges remain. The successful arrest of one defendant will unfortunately do little to change negative perceptions of the court or remove the many obstacles it faces in prosecuting cases.

A long history of criticism

The ICC was conceived as a “court of last resort” in 1998 under the Rome Statute, the treaty that established it. The aim was to try individuals accused of war crimes, crimes against humanity, genocide and aggression in cases where a state’s domestic courts refuse or are unable to do so.

Shortly after it began its work in 2002, however, the ICC faced criticism for its perceived focus on Africa.

In more recent years, it has also been criticised for its limited effectiveness, its perceived hypocrisy, and a lack of support from major powers, such as the US, China and Russia, which are not members.

The court has long faced a public relations crisis it may never be able to resolve. When it does not investigate a potential case, it is said to be ineffective. And when it does initiate investigations, it is often said to be biased or acting beyond its capabilities.

Putin and Netanyahu

Currently, the ICC has 12 ongoing investigations, mostly in Africa and Asia. It has issued 56 arrest warrants, half of which have yet to be executed.

As the focus of the court is limited to those who bear the greatest responsibility for international crimes, the cases frequently involve high-profile individuals.

Current arrest warrants, for example, have been issued against Russian President Vladimir Putin on charges of allegedly deporting Ukrainian children to Russia and Israeli Prime Minister Benjamin Netanyahu for alleged war crimes committed in Gaza.

These two cases have been among the court’s most controversial. Critics say the ICC lacks jurisdiction because:
- the alleged crimes did not occur in their own states
- their states are not parties to the Rome Statute
- the UN Security Council did not refer these cases to the ICC for investigation.
Others have accused the court of selective prosecution and bias for pursuing a case against Netanyahu, specifically, instead of prioritising cases in states run by dictators, such as Syria.

And some complain the court should be focusing on crimes allegedly committed by Western leaders in places like Iraq.

Indicting leaders of states raises additional legal challenges. International law dictates that heads of state enjoy immunity in other states’ courts – unless this immunity is expressly waived by their own governments.

The ICC defends its actions as fair. It argues it does have jurisdiction in the cases against Putin and Netanyahu because the alleged crimes took place in Ukraine and Palestine, two states who have explicitly accepted its jurisdiction.

And Article 27 of the Rome Statute says the ICC can exercise jurisdiction over people with state immunity, although it’s debatable whether this must be first waived for leaders of states not party to the Rome Statute.

Cooperation remains key

The ICC is not only constrained by these complex legal questions, but also by the limited cooperation of states around the world.

It relies on close cooperation with its 125 state parties, among others. But some states have been reluctant or even refused to cooperate with the court in executing the arrest warrants of controversial figures.

For example, Putin was not arrested when he visited Mongolia, an ICC member, last year, in part, because Mongolia relies heavily on Russian energy. South Africa similarly refused to arrest Sudanese dictator Omar al-Bashir when he visited in 2015.

Even when state parties do cooperate, the political fallout can impact the court’s reputation.

Following Duterte’s arrest last week, a Filipino senator (the sister of the current president) launched an urgent investigation to ensure due process was followed and Duterte’s legal rights were upheld and protected. She acknowledged the arrest has “has deeply divided the nation”.

The lack of support from the US – arguably, still the world’s most powerful democracy – remains a perennial problem, as well.

While the US has generally supported the court’s mandate over the years, it has been wary of its jurisdiction over American citizens and those of its allies accused of crimes. Last month, President Donald Trump authorised new sanctions against ICC officials in an attempt to paralyse the international organisation.

Although 79 states did declare their support for the ICC following the sanctions, the Trump adminstration’s rejection of the court’s jurisdiction, legitimacy and authority has had significant consequences for its operations.

It remains to be seen how the case against Duterte will play out. Securing a conviction is not assured.

However, his arrest demonstrates the court can fulfil its mandate and remain a relevant force in the fight against the gravest of crimes. It is also a significant moment for the families of those killed during Duterte’s rule, who have long sought justice for their loved ones.

Yvonne Breitwieser-Faria does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. The ICC showed its might by arresting Rodrigo Duterte. Its reputation will take longer to fix – https://theconversation.com/the-icc-showed-its-might-by-arresting-rodrigo-duterte-its-reputation-will-take-longer-to-fix-252509
MIL OSI Analysis – EveningReport.nz –
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-Evening Report: Nerve-wracking twists, remarkable stardom and jet-black comedy: the 5 best films of the 2025 French Film Festival

Source: The Conversation (Au and NZ) – By Ben McCann, Associate Professor of French Studies, University of Adelaide

The Divine Sarah Bernhardt.
Memento

This year’s Alliance Française French Film Festival showcases a diverse selection of films from blockbusters and biopics to comedies and gripping thrillers for Australian audiences.

I’ve written before about how this annual event, now in its 36th edition, is, in terms of tickets sold and films screened, the largest film festival dedicated to contemporary French cinema outside of France.

The 2025 program once more shines a spotlight on the established icons and rising stars of French cinema.

In the this year’s festival, 30% of the films are directed by women and thorny issues such as slavery, consent and caregiving are presented sensitively and provocatively.

But from a competitive bunch, here are the best five films I saw this year.

How To Make A Killing

It’s Christmas in the Jura, France’s picturesque eastern region full of mountains, snow and pine trees. When Michel (Frank Dubosc) accidentally crashes his truck into a car, killing its driver and passenger, his wife Cathy (Laure Calamy) tells him he may have left fingerprints at the crime scene.

They return – and discover two million euros in the car boot, and a loaded gun in the glove box.

From this point on, How To Make A Killing features one improbable but amusingly nerve-wracking twist after another. There’s a local policeman in over his head and drug lords and contract killers who want their money back.

Oh, and a black bear is on the loose.

Writer-director Dubosc pays homage to the Coen brothers and sprinkles in a typically Gallic dose of black humour. What really gives the film zip and pizzazz is the fabulous Calamy. She has risen to the apex of contemporary French stardom and her performance is a delight.

The Divine Sarah Bernhardt

Sarah Bernhardt can lay claim to being the first film celebrity. Born in Paris in 1844, Bernhardt was first a legendary stage actress, performing Shakespeare and Racine across the world (including Melbourne and Sydney in 1891) before gravitating to silent cinema.

Known for her extraordinary talent and intense stage presence (hence “divine”), she refused to play just female roles, famously playing Hamlet. Her eccentricity was equally renowned: she often travelled with an extensive menagerie of exotic pets.

Guillaume Nicloux’s sumptuous biopic unfolds in a radical way. Rather than tracing Bernhardt’s career in the fairly bog-standard biopic way, Nicloux jumps around, focusing on key events from her life – the amputation of a leg, her death, her bisexuality, her hedonistic lifestyle.

Through this bold achronological prism comes another daring choice: we never see Bernhardt act on stage or film. Her stardom emerges through the extraordinary effect she has on people who enter her orbit.

At the centre is a remarkable performance by Sandrine Kiberlain. She captures Bernhardt’s glamour and narcissism but also taps into her vulnerability to reveal her gradual hollowing out as the vagaries of fame take their toll.

It’s a cautionary tale that speaks to our current ambivalence towards stage-managed celebrity and “stardom at all costs”.

My Brother’s Band

Ever since its Cannes debut last May, Emmanuel Courcol’s My Brother’s Band has received rave reviews. It is sure to be an instant classic.

Two brothers are separated at birth and are only reunited decades later when Thibaut (Benjamin Lavernhe) needs a bone marrow transplant. The only suitable donor is long-lost Jimmy (rising star Pierre Lottin).

All that bonds the two is a shared love of music. Thibaut is an esteemed orchestra conductor while Jimmy plays the trombone in a local brass band.

Lavernhe’s and Lottin’s scenes together are wonderfully wry and tender as the two brothers learn to appreciate each other’s lifestyles and ways of seeing the world. We also see how music can bind communities together during times of personal and collective crisis.

Courcol shuttles between the stuffy, cathedral-like spaces of a Paris conservatorium and the cramped parish halls of northern France. Think Brassed Off meets Tár. My Brother’s Band brings the feel-good to the festival.

When Fall is Coming

When Fall is Coming, the latest work by prolific auteur François Ozon, is a broody family drama set in Burgundy.

Behind the autumnal landscapes and off-the-beaten-track villages lies hidden trauma. Michelle (the outstanding Hélène Vincent, now 81) nervously awaits the arrival of her grandson and the daughter from whom she is long estranged (for reasons we don’t understand until much later).

An innocuous first night meal turns to tragedy, and kickstarts a deeply engrossing, often menacing film. Pierre Lottin features again, this time as an ex-con slowly drawn into this unsettling web of secrets and lies.

The “fall” in the title can be read any number of ways. Suffice to say, this slow-burner reminds us of Ozon’s knack in withholding plot points and revealing them gradually. With its blend of spiteful intimacy and startling revelations, When Fall is Coming quietly chills. You’ll not look at mushrooms in the same way again.

Lucky Winners

French filmgoers love to laugh. The top ten grossing French films in history are all comedies.

Lucky Winners is a jet-black comedy about four different winners of France’s national lottery. Each becomes a millionaire overnight – but that’s when their troubles begin. Romain Choay and Maxime Govare’s witty film features a fine ensemble cast and a healthy dose of cruelty and squabbling.

The dream sours. Money does not bring happiness, only guilt, revenge and greed. Feel-good quickly descends into feel-bad. I imagine Hollywood will be remaking this very soon.

The Alliance Française French Film Festival is in cinemas around Australia on various dates until April 27.

Ben McCann does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Nerve-wracking twists, remarkable stardom and jet-black comedy: the 5 best films of the 2025 French Film Festival – https://theconversation.com/nerve-wracking-twists-remarkable-stardom-and-jet-black-comedy-the-5-best-films-of-the-2025-french-film-festival-250153

MIL OSI Analysis – EveningReport.nz –

March 25, 2025
MIL-OSI Australia: Exercise of any kind boosts brainpower at any age
Source:
25 March 2025

Whether it’s an early morning jog, or a touch of Tai Chi, groundbreaking research from the University of South Australia shows that any form of exercise can significantly boost brain function and memory across children, adults, and older adults.

In the largest, most comprehensive umbrella review to date, researchers found that regular exercise improves general cognition, memory, and executive function in both healthy individuals and those with clinical conditions, reinforcing exercise as an essential, inclusive activity for optimising cognitive health.

Synthesising findings from 133 systematic reviews, covering 2724 randomised controlled trials and 258,279 participants, the systematic umbrella and meta-meta-analysis found that:
- low- to moderate-intensity exercise had the greatest benefits for brain function and memory
- children and adolescents showed the greatest improvements in memory, while people with ADHD saw the biggest gains in executive function
- yoga, Tai Chi, and exergames (active video games) delivered the most significant cognitive benefits.
Lead researcher, UniSA’s Dr Ben Singh, says the findings provide a comprehensive understanding of how different types, intensities, and durations of exercise influence cognitive function.

“Exercise has a profound effect on physical health, but we also know it benefits brain function. What this study confirms is that even low-intensity exercise – like yoga or walking – can improve cognition, making it accessible to people of all ages and abilities,” Dr Singh says.

“In particular, we found that benefits were delivered quickly – with clear gains within 1-3 months, highlighting that even small bursts of activity can make a big difference. It also signals that trying out new activities could play a key role in keeping the brain engaged and active.

“For children and teens, exercise was especially beneficial for developing memory, while for people with ADHD, it helped improve focus, reduce impulsivity, and enhance executive function.

“We also found that mind-body exercises, like Tai Chi and yoga, had the most significant impact on memory, while exergames – such as Pokémon Go – were highly effective for general cognition. This is an encouraging finding, as it suggests that engaging, low-impact activities can offer real cognitive benefits.”

Senior researcher, Professor Carol Maher says exercise should be encouraged as a cognitive health strategy across all ages and fitness levels.

“Cognitive decline and neurodegenerative diseases are growing global health concerns, underscoring the urgent need to identify effective strategies to preserve and enhance cognitive function across the lifespan,” Prof Maher says.

“This study presents compelling evidence that exercise should be integrated into healthcare and education settings to promote cognitive well-being.

“Knowing that even small amounts of exercise can improve memory and brain function – especially for those at higher risk – presents a clear opportunity for exercise to be included in clinical and public health guidelines.”

The University of South Australia and the University of Adelaide are joining forces to become Australia’s new major university – Adelaide University. Building on the strengths, legacies and resources of two leading universities, Adelaide University will deliver globally relevant research at scale, innovative, industry-informed teaching and an outstanding student experience. Adelaide University will open its doors in January 2026. Find out more on the Adelaide University website.

…………………………………………………………………………………………………………………………

Contacts for interview: Dr Ben Singh E: Ben.Singh@unisa.edu.au
Prof Carol Maher E: Carol.Maher@unisa.edu.au
Media contact: Annabel Mansfield M: +61 479 182 489 E: Annabel.Mansfield@unisa.edu.au
Other articles you may be interested in

MIL OSI 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 China: Europe concerned over marginalization in Ukraine peace process

Source: China State Council Information Office

As U.S.-Ukraine and U.S.-Russia delegations held separate talks in Riyadh, Saudi Arabia, on Sunday and Monday, growing concerns are emerging in Europe over its marginalization in the peace negotiations.

Ukrainian Defense Minister Rustem Umerov described Sunday’s talks as “productive and focused,” noting that “key points including energy” were addressed. Umerov, who led the Ukrainian delegation, emphasized that Ukrainian President Volodymyr Zelensky’s goal is “to secure a just and lasting peace” for Ukraine and Europe at large.

On Monday, Kremlin spokesman Dmitry Peskov said that Moscow and Washington share a “desire and readiness” to pursue a peaceful settlement. He noted that the talks covered various technical issues, including a potential resumption of the Black Sea Initiative.

However, the absence of European representation at the talks has sparked concern among officials and analysts. From discussions on the Black Sea to broader peace efforts, some European observers warn that critical decisions are being made without European input.

A Financial Times newsletter on Monday reported that officials from Romania and Bulgaria, two Black Sea nations, privately voiced concern over significant shifts in the region’s status quo, arguing such changes could impact their security without giving them a say.

In an article published Monday, Salvador Sanchez Tapia, professor of conflict analysis and international security at Spain’s University of Navarra, wrote: “Europe has been left out of negotiating efforts … This disregard shows how little the continent matters to its North American partner.”

He added that, lacking the capacity to support Ukraine as the United States once did, Europe may have little choice but to accept Washington’s approach while still attempting to make its voice heard.

Former German diplomat Rudiger Ludeking echoed these concerns in an interview with German media, saying that since U.S. President Donald Trump’s return to office, diplomatic engagement between Washington and Moscow, as well as with Kiev, has intensified, largely bypassing NATO, the European Union (EU), and major European powers. He warned that “the EU could be the loser” in these negotiations.

While some European voices express frustration, others view the talks as a potential step toward de-escalation.

Balazs Orban, political director of Hungarian Prime Minister Viktor Orban, welcomed the truce discussions, saying that changing circumstances would eventually compel Europe and policymakers in Brussels to adopt a more pragmatic stance. He warned that if the EU maintains its current position, it risks falling behind and becoming increasingly sidelined in the peace process.

In an interview with local N1 Television on Monday, former Croatian Foreign Minister Miro Kovac expressed optimism over the White House’s mention of a possible ceasefire by Easter, saying such a development would allow people to “stop dying because it no longer makes sense.”

MIL OSI China News –

March 25, 2025
MIL-OSI China: Multinational CEOs flock to China for business opportunities

Source: People’s Republic of China – State Council News

This photo taken on March 23, 2025 shows the Symposium on Macro Policies and Economic Growth of the China Development Forum 2025 in Beijing, capital of China. The China Development Forum 2025 is scheduled from March 23 to 24. The theme of this year’s forum is “Unleashing Development Momentum for Stable Growth of Global Economy.” [Photo/Xinhua]

BEIJING, March 24 — Heads of some 80 multinationals including Siemens, Apple, Samsung and Pfizer have flocked to China to seek new cooperation opportunities with the world’s second-largest economy.

The transnational corporate chiefs were present at the China Development Forum 2025 in Beijing, scheduled from March 23 to 24. The annual event, hosted by the Development Research Center of China’s State Council, has become an important platform of dialogue for the Chinese government, global businesses, academia, and international organizations.

China will continue to welcome enterprises from around the world with open arms, further expand market access, actively address the concerns of businesses, and facilitate the deeper integration of foreign-funded enterprises into the Chinese market, Chinese Premier Li Qiang said in a keynote speech at the opening ceremony of the forum.

Prior to the forum, British pharmaceutical giant AstraZeneca signed a landmark 2.5-billion-U.S. dollar agreement on Friday to invest in Beijing over the next five years, the largest single investment in Beijing’s biopharmaceutical sector in recent years.

Under the agreement, AstraZeneca will establish a global strategic R&D center in Beijing, its sixth worldwide and second in China after one in Shanghai. The new center, equipped with an advanced artificial intelligence and data science laboratory, will accelerate early-stage drug research and clinical development.

“The investment highlights our confidence in Beijing’s world-class life sciences innovation ecosystem, extensive collaborative opportunities, and exceptional talent pool,” AstraZeneca CEO Pascal Soriot said in an interview with Xinhua.

In 2024, BMW delivered over 100,000 battery electric vehicles to customers in China for the first time, making China its strongest single market for electric vehicles.

The company is committed to expanding its investment in China and accelerating the localization of production as well as research and development, said Oliver Zipse, chairman of the board of management of BMW AG, in a meeting with Chinese Commerce Minister Wang Wentao.

Zipse also noted that there are only losers and no winners in a tariff war. The company firmly opposes the EU imposing additional tariffs on Chinese EVs and hopes that both the EU and China can properly resolve their differences, he said.

At a symposium of the forum, Zipse said he was impressed by the AI Plus initiative in China’s government work report this year, and that BMW is working with Chinese sci-tech leaders to apply generative AI and large language model technologies into its vehicles.

Miguel Lopez, CEO of Thyssenkrupp AG, an industrial conglomerate, said China is not only one of the largest markets, but also the country with the most comprehensive industrial chain and supply chain in the world, as well as a good logistics system.

Thyssenkrupp will continue to strengthen supply chain management in China and establish good relationships with local suppliers, which will not only reduce its costs and improves its resilience, but also improves its performance on global markets, Lopez said.

Lim Boon Heng, chairman of Singapore’s Temasek Holdings, said he truly feels during his visit the growing innovation and vitality of the Chinese market and the improved business environment.

Noting China has become one of Temasek’s most important investment destinations, he said Temasek is full of confidence in the long-term prospects of the Chinese economy and will continue to deepen its presence in the Chinese market.

For Otis, the elevator industry leader has benefited from China’s rapid urbanization over the past few decades.

Judy Marks, CEO of Otis Worldwide Corporation, said the country still offers great opportunities in the future, and compared with decades ago, China is no longer just a production base and sales market, but also a research and development base for elevators.

“I think most of the world will not only want to partner with China but also strengthen economic relations with China,” said Jeffrey Sachs, an economics professor at Columbia University.

Official data has shown that China remains a top destination for transnational investment. Some 60,000 foreign-invested companies were established in China in 2024 alone, a 9.9 percent year-on-year increase. The return rate of FDI in China has remained at approximately 9 percent over the past five years, ranking among the highest around the world.

This year’s government work report notes that China will encourage foreign investors to increase their reinvestment in the country, and it will ensure equal treatment for foreign-funded enterprises in fields such as production factor access, license applications, standards setting and government procurement.

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: Welch Announces Experts on First Amendment and Freedom of the Press as Witnesses for Hearing on So-Called ‘Censorship Industrial Complex’

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
Welch: “Newsflash for my colleagues across the aisle: their claims of a ‘vast cover-up’ against conservatives will get debunked as quickly as their claims about supporting free speech.”
WASHINGTON, D.C.—Today, U.S. Senator Peter Welch (D-Vt.), Ranking Member of the Judiciary Subcommittee on The Constitution, announced the Minority witnesses for the Subcommittee hearing titled “The Censorship Industrial Complex.” Instead of focusing the first Subcommittee hearing on actual and proven instances of censorship by the Trump Administration against their political adversaries, the Majority has focused this hearing on a perceived—and unproven—censorship enterprise against conservatives.
“Newsflash for my colleagues across the aisle: their claims of a ‘vast cover-up’ against conservatives will get debunked as quickly as their claims about supporting free speech,” said Sen. Peter Welch. “The Republican party has pushed disinformation for years, and this sham hearing on the so-called anti-conservative ‘censorship industrial complex’ is yet another example. Instead of focusing on the actual censorship directed, unabashedly, by the White House, they’re pushing this false narrative that their voices are being silenced. I’m thankful to be joined by Professor Mary Anne Franks and Gabe Rottman tomorrow, who will speak on the importance of the First Amendment and press freedom.”
Witnesses for the Minority will include:
Mary Anne Franks. Ms. Franks is the Eugene L. and Barbara A. Bernard Professor in Intellectual Property, Technology, and Civil Rights Law at George Washington University School of Law, and an expert in the First Amendment and technology.
Gabe Rottman: Mr. Rottman is the Vice President of Policy at the Reporters Committee for Freedom of the Press. In this role he works at the intersection of press freedom and technology.
Majority witnesses will include Mollie Hemingway, senior editor for The Federalist, Jonathan Turley, conservative legal scholar, and Benjamin Weingarten, a Senior Contributor for The Federalist.
More details on the hearing are included below:
Title:                      The Censorship Industrial Complex
Date:                      Tuesday, March 25, 2025
Time:                      2:00 p.m. ET
Location:   Room 226 of the Dirksen Senate Office Building
Livestream:           Watch live HERE.
Media Note: Members of the media who wish to attend the hearing in person should RSVP to their respective Senate press gallery. Hearing room space is limited.

MIL OSI USA News –

March 25, 2025
MIL-OSI Submissions: Universities sign UK-Borneo strategic forestry research partnership – University of Birmingham

Source: University of Birmingham

24 March 2025 – The University of Birmingham and the University College Sabah Foundation (UCSF) have forged ties to create new opportunities exploring how forest ecosystems will behave in in the future as atmospheric carbon dioxide levels rise.

Professor Robin Mason, Pro-Vice-Chancellor (International) at the University of Birmingham joined UCSF Vice-Chancellor Datuk Dr Rafiq Idris by video link to sign the Memorandum of Understanding (MoU).

The MoU will see Birmingham climate change experts working with their counterparts in Borneo to explore the potential for major forest experiments and to investigate how the island’s forests respond to pressures cause by climate change – particularly in relation to biodiversity.

The partners will explore opportunities to develop a global research and education centre around forestry management and biodiversity focussed on the needs of the people and nature of Sabah State and beyond.

Their partnership also aims to establish knowledge-exchange initiatives around energy infrastructure optimisation and decarbonisation – particularly related to sustainable energy derived from biomass sources.

Professor Robin Mason commented: “The University of Birmingham has an excellent track record in this space – particularly in relation to research at our own large-scale Free-Air CO2 Enrichment (FACE) facility and its counterpart in the Amazon.

“As we prepare to contribute to the global discussion on climate change at COP 30 later this year, we look forward to developing our partnership with University College Sabah Foundation in Borneo – pushing forward the boundaries of global forestry research and adding to our understanding of the impact of elevated carbon levels on the world’s forests.”

Development of the partnership has been supported by UK-Malaysia strategic business advisers WIPPD. Initial discussions between the partners will get to grips with Sabah State’s energy priorities, as well as exploring opportunities for educational and training initiatives.

Datuk Dr Rafiq Bin Idris commented: “This collaboration marks a significant milestone for UCSF’s partnership with the University of Birmingham. This collaboration reflects our shared commitment to advancing research and innovation. UCSF with other stakeholders will work together to participate and support in this global forestry and carbon research wherever possible. By working together, we aim to strengthen collaboration, enrich learning experiences and conduct research in strategic areas of mutual interest. We are happy to formalise this relationship through the signing of this MoU.”

Mature forests are recognised as medium-term (decades long) carbon stores and natural climate solutions. The long-running FACE experiment at the University of Birmingham’s Institute of Forest Research (BIFoR), in central England, has contributed significantly to increasing global understanding of how forests may behave in response to changes in atmospheric carbon levels.

FACE experiments mimic future atmospheric composition and provide valuable data on interaction between forests, atmosphere, and climate. In 2017, researchers at BIFoR established the long-term FACE experiment in a 180-year-old deciduous woodland dominated by 26-m tall English (or ‘pedunculate’) oak trees – six 30 metre diameter plots, three exposed to elevated CO2 with the other three plots acting as a control. The southeast Asian rainforests are one of the most important ecosystems for which a FACE experiment has yet to be attempted.

Notes:

The University of Birmingham is ranked amongst the world’s top 100 institutions. Its work brings people from across the world to Birmingham, including researchers, teachers and more than 8,000 international students from over 150 countries.

The most significant results to date from BIFoR FACE are published in Norby, R. J., … and A. R. MacKenzie (2024). Enhanced woody biomass production in a mature temperate forest under elevated CO2. Nature Climate Change. 14, 983–988. https://www.nature.com/articles/s41558-024-02090-3 .

The University of Birmingham is committed to achieving operational net zero carbon. It is seeking to change society and the environment positively, and use its research and education to make a major global contribution to the UN Sustainable Development Goals. Find out at www.birmingham.ac.uk/sustainability 

The University of Birmingham is ranked 38th in the 2025 QS World Sustainability Rankings and rose 19 places in the 2024 People and Planet sustainability league table. Our global sustainability research is unlocking effective and equitable climate action and sustainability solutions.

MIL OSI – Submitted News –

March 25, 2025
MIL-OSI New Zealand: Universities – The art of investing in alternative assets – UoA

Source: University of Auckland (UoA)

Lego, instruments, classic cars and baseball cards are among the alternative investments University of Auckland finance lecturer, Gertjan Verdickt, discusses in his new book The Passion Portfolio: Investing in Style.

Co-authored with Jürgen Hanssens (senior manager at KPMG Belgium and an avid Lego collector) the book details the mechanics behind the world of ‘passion’ investing.

The researchers offer readers an understanding of how the prices of passion investments evolve, along with the factors that drive these changes.

“We want to help people navigate these often opaque markets, where transactions are infrequent, and where in some instances, exclusivity, rather than transparency, is both the norm and the value driver,” says Verdickt, whose investment portfolio includes wine.

Verdickt and Hanssens discuss the pros and cons of various investments: wine, Lego, whisky, watches, bags, jewellery, art, stamps, instruments, vintage cars, precious metals and baseball cards.

They provide average historical annual returns by examining at least twenty years of data for each object.

Of all the investment options, whisky comes out on top with an average annual return of 17.52 percent. In second place is baseball cards, which posted an average annual return of nearly 13 percent compared to the stock market’s 10 percent.

Research suggests that adding collectibles like whisky, baseball cards, or Lego to an existing stock portfolio can reduce overall portfolio risk, says Verdickt.

Each chapter of his book follows a structured approach, examining the advantages and risks of different asset classes, their historical returns and key factors that influence their value. Readers can learn about the authentication process, assess long-term investment potential, and gain insights into platforms that track pricing.

While passion investing can be lucrative, it’s also less regulated than traditional markets, increasing the risk of fraud. As such, Verdickt and Hanssens discuss how to spot counterfeit goods. They also explore arbitrage – where investors can take advantage of pricing discrepancies across different markets.

A well-documented provenance and pedigree, says Verdickt, can significantly increase the value of an alternative investment and, in turn, boost its likelihood of being sold.

The finance expert says passion investments require patience and expertise. “Unlike stocks, which can be sold at the click of a button, luxury assets are illiquid. A work of art is resold only once every nine years on average. Wine appreciates over decades. These are long-term investments that demand both knowledge and time.

“Lego, on the other hand, is accessible to everyone, with relatively low initial capital required compared to many other collectibles.”

Because demand for Lego sets remains high, while supply is relatively limited, it’s a more liquid investment than most other alternative assets, he says.

“The book is for investors looking to diversify beyond traditional securities,” says Verdickt. “It’s also for people who are keen to put their money into something they love, something that’s tangible.”

MIL OSI New Zealand 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

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