TIDMMAJE
RNS Number : 0640X
Majedie Investments PLC
18 December 2023
18 December 2023
Majedie Investments PLC
Annual Financial Report
Majedie Investments PLC ("Majedie" or "the Company") announces
its full year results for the 12 months ended 30 September
2023.
Highlights:
-- Successful transition to a new investment manager, Marylebone
Partners LLP, on 25 January 2023.
-- Adoption of a new benchmark, to achieve net annualised total
returns (in GBP) of at least 4% above the UK Consumer Prices Index
(CPI) over rolling five-year periods.
-- The new, long-term 'liquid endowment' strategy is designed to
deliver attractive real returns and comprises three primary
elements:
o Special Investments: eclectic opportunities with high return
potential, which include co-investments, thematic funds and special
purpose vehicles. Over time, these are expected to comprise at
least 20% of the portfolio;
o External Managers: specialist funds managed by some of the
world's leading fundamental investors, comprising 60% of the
portfolio at present;
o Direct Investments: a focused selection of publicly listed
equities selected by Marylebone Partners' in-house team, each
meeting stringent criteria regarding growth potential, business
profitability and quality.
-- Strong performance for the year, comprising a total
shareholder return (including dividends) of +26.2%.
-- The discount to Net Asset Value narrowed from -25.8% to -18.7% at the end of September.
-- New dividend policy adopted, which pays out c.0.75% of NAV
each quarter, making 3% of NAV per annum.
Christopher Getley, Chairman of Majedie Investments, said: "We
are pleased to have appointed Marylebone Partners as Majedie's
portfolio manager, and welcome the way in which they have
implemented the transition to the new liquid endowment model. The
new approach has been well received by existing shareholders and
brought new holders onto the register. This is an excellent
juncture at which to be deploying capital. Following a transition
from a multi-year regime that was characterised by low interest
rates, abundant liquidity and generally rising asset prices, the
Board expects the period ahead to be defined by structurally higher
rates, variable liquidity, more geopolitical and cyclical
volatility, and greater fundamental price dispersion within
markets. This is the sort of environment in which a highly
selective, fundamental approach that features distinctive bottom-up
investments should thrive."
Dan Higgins, CIO of Marylebone Partners and investment manager
at Majedie Investments, said: "We are excited about the prospect of
pursuing our distinctive approach for Majedie's shareholders,
especially when a recent transition of the market regime has
created so many opportunities for discriminating bottom-up
investors. Our ambition over the years ahead is to provide
Majedie's shareholders with a dynamic alternative, predominantly
invested in liquid underlying assets. Ultimately, a shareholder in
Majedie Investments PLC is buying into our people and our process.
We believe that more challenging conditions should only highlight
the merits of our approach as the fortunes of individual
enterprises, sectors, geographic regions, and asset classes
diverge.
For further information please contact:
Majedie Investments PLC
William Barlow +44 (0)7880 528774
--------------------
J.P. Morgan Cazenove
William Simmonds
Rupert Budge +44 (0)20 7742 4000
--------------------
TB Cardew (PR Adviser to Majedie Investments) +44 (0)20 7930 0777
Tania Wild +44 (0)7425 536903
Will Baldwin-Charles +44 (0)7834 524833
--------------------
About Majedie Investments :
Majedie Investments PLC is an investment trust whose objective
is to deliver long-term capital growth whilst preserving
shareholders' capital and paying a regular dividend. The
performance target is to achieve net annualised total returns (in
GBP) of at least 4 per cent. above the UK CPI, over rolling
five-year periods.
The Majedie Investments PLC portfolio features a combination of
hard-to-access special investments, allocations to funds managed by
boutique third-party managers, and direct investments in public
equities.
LEI: 2138007QEY9DYONC2723
About Marylebone Partners :
Marylebone Partners LLP is an independent investment manager,
owned by its principals. We help families, charities, endowments,
trusts and private investors to protect and grow their wealth in
real terms.
Our defining characteristic is an ability to access
differentiated fundamental investments, many of which never come
onto the radar screen of other allocators. We believe this
capability will be the key to delivering superior performance
outcomes over the years ahead.
Our partnership was founded in 2013 with the vision of bringing
a distinctive investment approach to clients who sought a
relationship based on trust and transparency. This remains our sole
purpose today. We invest our own capital alongside our clients.
Marylebone Partners LLP is authorised and regulated by the
Financial Conduct Authority.
ANNUAL FINANCIAL REPORT FOR THE YEARED 30 SEPTEMBER 2023
The Directors of Majedie Investments PLC are pleased to announce
the Annual Report and Accounts ("Annual Report") for the year ended
30 September 2023. The Annual Report can be obtained from the
Company's website at www.majedieinvestments.com or by contacting
the Company Secretary on telephone number 0131 378 0500.
Investment Objective
The Company's investment objective is to deliver long-term
capital growth whilst preserving shareholders' capital, and to pay
a regular dividend.
Performance Target
The performance target is to achieve net annualised total
returns (in GBP) of at least 4% above the UK Consumer Prices Index
over rolling five-year periods.
Financial Highlights
2023 2022
Total shareholder return (including dividends) * 26.2% -24.9%
Net asset value total return (debt at fair value including dividends) * 14.1% -18.2%
Net asset value total return (debt at par including dividends) * 14.2% -19.8%
Total dividends (per share): 5.4p 10.4p
*Alternative Performance Measures
Please refer to pages 88 and 89 of the Company's Annual
Report
YEAR'S SUMMARY
Note
Capital Structure (see below) 2023 2022 %
----------------------------------------------------- -------------- --------- --------- -------
As at 30 September
Total assets less current liabilities 1 GBP148.8m GBP137.6m 8.1
Which are attributable to:
Financial liabilities (debt at par value) 1 GBP20.7m GBP20.8m -
Equity Shareholders' Funds GBP128.1m GBP116.9m 9.6
------------------------------------------------------ ------------- --------- --------- -------
Gearing 1 9.2% 12.6% -
Potential Gearing 1 16.2% 17.8% -
------------------------------------------------------ ------------- --------- --------- -------
Total returns (capital growth plus dividends) ("TR")
Net asset value per share TR (debt at par value) 1 14.2% -19.8% -
Net asset value per share TR (debt at fair value) 1 14.1% -18.2% -
Share price TR 1 26.2% -24.9% -
------------------------------------------------------ ------------- --------- --------- -------
Capital returns
Net asset value per share (debt at par value) 241.7p 220.6p 9.6
Net asset value per share (debt at fair value) 241.6p 220.5p 9.6
Share price 196.5p 163.5p 20.2
------------------------------------------------------ ------------- --------- --------- -------
Discount of share price to net asset value per share
Debt at par value 1 18.7% 25.9% -
Debt at fair value 1 18.7% 25.8% -
------------------------------------------------------ ------------- --------- --------- -------
Revenue and dividends
Net revenue available to Equity Shareholders GBP0.9m GBP2.8m -67.9
Net revenue return per share 1.6p 5.2p -69.2
------------------------------------------------------ ------------- --------- --------- -------
Total dividends per share 2 5.4p 10.4p -48.1
------------------------------------------------------ ------------- --------- --------- -------
Total administrative expenses and management fees GBP3.4m GBP1.7m 100.0
Ongoing Charges Ratio 1,3 1.6% 1.3% -
Ongoing charges of underlying funds 0.4% - -
Ongoing Charges Ratio plus look through fund costs 2.0% 1.3% -
1. Alternative Performance Measures
Please refer to pages 88 and 89 of the Company's Annual Report
for definitions and a reconciliation of the Alternative Performance
Measures to the financial statements.
2. The 10.4p dividend in 2022 includes a 1.8p special dividend
paid on 27 January 2023. This dividend represented the first
quarterly payment to 31 December 2022 under the Company's new
dividend policy.
3. Excludes performance fee where payable.
Year's High/Low
2023 2022
--------------------------- ------ ------- -------
Share price high 223.0p 243.0p
low 158.0p 160.0p
Net asset value - debt at
par high 259.2p 297.1p
low 220.6p 220.7p
Discount - debt at par high 31.2% 28.7%
low 8.3% 14.9%
Discount - debt at fair
value high 30.8% 28.5%
low 8.0% 13.4%
Ten Year Record
to 30 September 2023
Total Share
Equity NAV Per Ongoing
share-holders' Share (Debt Potential Charges
Assets ++ Funds at par value) Price Discount Gearing Gearing Ratio(#)
Year Earnings Total Dividend**
End GBP000 GBP000 Pence Pence % Pence Pence % % %
------ ------------------- ------------------- ------------- ------- --------- ----------- ----------------------- -------- ------------ ---------
2014 167,934 134,061 256.7 229.0 10.79 9.36 7.50 23.39 25.27 1.66
2015 183,708 149,807 281.9 257.3 8.74 9.42 8.00 21.25 22.63 1.88
2016 203,917 169,986 318.1 257.1 19.18 9.25 8.75 18.46 19.96 1.58
2017 216,507 182,544 341.6 281.5 17.59 11.14 9.75 17.09 18.61 1.54
2018 199,151 178,626 334.3 277.5 16.99 12.47 11.00 10.01 11.49 1.33
2019 175,621 155,074 292.3 256.0 12.42 12.92 11.40 11.50 13.25 1.34
2020 152,153 131,333 247.7 176.5 28.74 9.11 11.40 10.97 15.85 1.34
2021 172,951 152,153 287.1 230.0 19.89 9.41 11.40 12.26 13.67 1.25
2022 137,647 116,887 220.6 163.5 25.80 5.20 10.40 12.65 17.80 1.34
2023 148,794 128,073 241.7 196.5 18.70 1.62 5.40 9.16 16.23 1.98
Notes:
++ Total Assets are defined as total assets less current
liabilities.
** Dividends disclosed represent dividends that relate to the
Company's financial year. Under UK adopted International Accounting
Standards dividends are not accrued until paid or approved. Total
dividends include special dividends paid, if any.
Calculated in accordance with AIC guidance.
# Excludes performance fee where payable and includes ongoing
charge ratio of underlying funds.
STRATEGIC REPORT
CHAIRMAN'S STATEMENT
During the year ended 30 September 2023 Majedie Investments has
successfully implemented the transition to a liquid endowment
investment policy* following its approval at the AGM in January
2023, principally through transferring responsibility for
management of the Company's assets to Marylebone Partners LLP
("Marylebone" or the "Investment Manager"). The Net Asset Value
(with debt at fair value) grew by 14.1% during the year and the
discount closed somewhat from 25.8% at the start of the financial
year to 18.7% at its close.
Investment conditions were challenging throughout the year as
global equity and bond markets were volatile as inflationary
expectations and political events created uncertainty for investors
and governments. A growing acceptance that interest rates are to
remain considerably higher for some time, together with a weaker
than expected economic recovery in China after its pandemic
restrictions were removed in January 2023, also put pressure on the
broader equity markets. Notably, the US equity market was one of
the best performers, once again driven by a very narrow selection
of technology stocks.
The background to market performance helps explain the decision
of your Board in late 2022 to appoint Marylebone as the Company's
portfolio manager. It also reinforces the central view that the
ending of a thirty year down trend of interest rates is likely to
lead to significant change in the sources of investment returns.
The Board focused on identifying an endowment style strategy that
would enable the Company to grow over time through strong
performance, developing the Company's culture and clear
differentiation that uses the benefits of the investment trust
structure. Whilst still in its very early days, the liquid
endowment portfolio has now been in place since February 2023, the
Board believes that the evidence to date vindicates its decision.
In addition to the distinctive and compelling investments that
feature in the portfolio, the Board notes that virtually all of its
underlying assets are priced frequently by an independent
source.
The investment approach includes three complementary strategies
comprising, at September 2023: External Managers (62%), Direct
Investments (20%) and Special Investments (9%). The remaining 9%
was in cash and UK gilts pending investment into additional Special
Investment opportunities. Whilst remaining equity-centric, the
drivers of the investments are fundamental, idiosyncratic and
generally not macro-predicated. The Board is confident that this
style of investing will stand the test of time and achieve the
clear targets set out by the Manager Review carried out in
2022.
Subsequent to the approval of the new investment policy by
shareholders, the Board has also transferred responsibilities under
the AIFMD to Marylebone. Further, the remaining administration
arrangements for Majedie that had been carried out internally have
now been outsourced to Juniper Partners Limited ("Juniper"). The
Board looks forward to developing both of these important new
relationships. These steps have however resulted in Majedie's
offices in Kings Arms Yard being vacated and I would like to take
this opportunity to record our thanks to the Majedie executive team
for their consistent and professional contribution throughout this
period despite the consequences to their own positions.
Of particular note through this year has been the development of
the shareholder base, which was one of the key aims of the Manager
Review. Approximately 25% of the shares in issue have changed hands
during the year and the Company remains fortunate in having a
supportive Barlow family shareholder group. The increased marketing
presence of the Company, well supported by the Marylebone team and
a refreshed website with explanatory short videos, has been helpful
in achieving this important step towards growth.
The Board has enjoyed a year of stability and I am grateful for
the commitment and wise counsel of my colleagues. Formal internal
Board reviews are carried out annually in October. The principal
areas for further focus in 2022 involved concluding and effectively
implementing the Manager Review conclusions and increasing the
demand for the Company's shares. In 2023 the Board has identified
targets relating to the development and monitoring of the
relationships with Marylebone and Juniper, planning for Board
member succession and building on the progress made on expanding
the shareholder base.
The Company's policy on dividends also changed following the
introduction of the new investment policy. Quarterly dividends of
approximately 0.75% of the NAV have been declared, albeit that in
this transition year the first quarterly payment to December 2022
was paid in January 2023 as a Special Dividend of 1.8p accrued in
the prior year. Going forward the Board hopes that the clarity of
quarterly dividend payments, equating to approximately 3% of NAV
over the year, is helpful to shareholders.
It is a core function of an investment trust Board to bear down
on costs where possible. The Board notes that investments through
External Managers as a significant part of the portfolio has
increased the cost measured by the Ongoing Charges Ratio ("OCR")
from 1.3% in 2022 to 2.0% in September 2023. The skills in
specialist areas that require substantial original research work
inevitably come with additional cost. However, in terms of true
active management of a liquid endowment style strategy the Board
understands this requirement whilst also noting that the costs
associated with the External Managers is expected to fall over time
as the exposure to Special Investments grows, as they typically
have low additional management fees. The remaining underlying costs
are made up of core management, administrative and transaction
costs; as all activities are now outsourced the Board expects that
these costs will also fall in 2024. Overall the OCR is expected to
fall in 2024.
In terms of investment outlook, Marylebone believes that this is
an excellent juncture at which to be deploying capital. Following a
transition from a multi-year regime that was characterised by low
interest rates, abundant liquidity and generally rising asset
prices, the Board expects the period ahead to be defined by
structurally higher rates, variable liquidity, more geopolitical
and cyclical volatility, and greater fundamental price dispersion
within markets. This is precisely the sort of environment in which
a highly selective, fundamental approach that features distinctive
bottom-up investments should thrive. Marylebone is confident that
current and future Special Investments are capable of achieving
their ambitious return targets for this component of the portfolio.
With respect to External Managers, those with an equity-centric
profile should be capable of annualised returns that are
substantially better than broad markets, whilst providing
shareholders with positions and style diversification away from the
indices. In addition, the External Manager allocation features a
significant exposure to leading practitioners in the specialist
credit strategies arena, an area of true differentiation for
Marylebone who see the best risk-adjusted return opportunity here
for many years. Finally, the Direct Investments component of the
new portfolio features an eclectic mix of positions that have been
researched and identified by Marylebone's inhouse team. These
provide not only return potential in the low-teens over a
multi-year period but also benefit the portfolio in terms of its
overall liquidity.
The Board was very pleased that the 2022 Annual General Meeting
could be held in person as it enabled a welcome opportunity to meet
again and learn directly from our shareholders. This year's AGM
will be held at Pewterers' Hall, Oat Lane, London EC2V 7DE at
12.00pm on Wednesday 17th January 2024. The Investment Manager will
present the details of the portfolio, its strategy and outlook. My
colleagues and I look forward to welcoming shareholders to that
meeting. Following the AGM the Investment Manager's presentation
will be available on the Company's website for those who cannot
attend.
In the meantime, I thank you for both trusting and supporting
Majedie Investments.
Christopher D Getley
Chairman
15 December 2023
* Please refer to page 6 of the Investment Manager's Report in
the Company's Annual Report
Please refer to note 20 on page 74 of the Company's Annual
Report for more information.
INVESTMENT MANAGER'S REPORT
Strategy
Marylebone Partners' appointment as the investment manager of
Majedie Investments PLC ("Majedie") marked a significant milestone.
We are excited about the prospect of pursuing our distinctive
approach for Majedie's shareholders, especially when the recent
transition of the market regime has created so many opportunities
for discriminating bottom-up investors. We welcome Majedie's
shareholders to our Partnership, by virtue of the membership stake
granted to the Company in a demonstration of our alignment. Given
the importance of this mandate to our business, it is only right
that Majedie's shareholders should participate in our future
success.
What exactly do we mean when we refer to the 'liquid endowment'
model we deploy for Majedie? The 'endowment' element evokes a truly
long-term investment mentality that is behind the success of the
elite university endowments (mostly based in the United States).
These institutions have harnessed differentiated - and sometimes
alternative - return sources, eschewing market timing or tactical
trading in favour of active fundamental strategies designed to
compound wealth at an attractive rate, after the potential effects
of inflation.
We aim to replicate this success for Majedie's shareholders by
identifying and assessing compelling, long-term investment
opportunities, few of which ever come onto the radars of our
industry peers. Unlike many university endowments, however, we
refrain from allocating to deeply illiquid and hard-to-price asset
classes such as private equity, venture capital, real estate, or
infrastructure. Our proficiency lies in more liquid markets, and we
do not believe it is necessary to lock up capital for extended
periods to generate attractive total returns.
Our ambition over the years ahead is to provide Majedie's
shareholders with an alternative to generic investment offerings or
strategies whose historic success depended on cheap leverage,
abundant liquidity, and rising asset prices. Ultimately, a
shareholder in Majedie is buying into our people and our process.
We believe that more challenging conditions should only highlight
the merits of our approach as the fortunes of individual
enterprises, sectors, geographic regions, and asset classes
diverge.
The Company delivered strong returns over the financial year,
investment performance between February 2023 (when we assumed
investment management responsibility) and the financial year-end
was effectively flat as contributions at the position level offset
one another. We implemented the transition towards the new
portfolio in a swift and cost-effective manner, with legacy
positions exited and holdings in place by the end of March. As part
of this exercise, we have substantially sold down the strategic
holding in Liontrust PLC and it is now below 0.5%.
The portfolio
The portfolio is eclectic and focused. It features
high-conviction investments of differing profiles and with varying
underlying return drivers. Although of course there can be no
guarantee of success, we believe that Majedie's most conservative
investments can achieve target returns over the next few years,
while some of its more ambitious positions have the potential to
deliver much stronger outcomes. It was simply not possible to
achieve portfolio balance, whilst striving for returns of this
magnitude, in the latter stages of the pre-COVID era.
The portfolio comprises three primary elements:
1. Special Investments. We identify co-investments, Special
Purpose Vehicles, and thematic opportunities, through a proprietary
ideas network built over nearly three decades. To earn a place in
the Majedie portfolio, a Special Investment must originate from a
trusted source, and have the potential to deliver annualised
returns of at least 20% over a time horizon of typically 2-3 years.
As an important aside, our investments are all marked-to-market at
least quarterly. So Majedie's shareholders should be confident that
the stated Net Asset Value is representative.
It will take time for us to build the portfolio's exposure to
Special Investments to its initial target of 20% (by definition,
these opportunities are situation specific and the bar for
inclusion is extremely high). Nevertheless, we had already made
five allocations by the Company's financial year-end, plus another
three on 1st October. These include targeted activist co --
investments in public equities, a thematic investment in the listed
Uranium sector, a unique factoring strategy and two
stressed/distressed credit co-investments. We have a strong
pipeline of new ideas.
2. External Managers. We have selected a total of 14 funds
managed by third-party managers, each of whom specialises in a
niche sector or geographic region that is structurally inefficient
and therefore offers potential for skill-based returns ('alpha').
These managers work within owner-operated boutiques that are
largely unknown to/inaccessible by most allocators. In keeping with
Majedie's longstanding philosophy, nine of the managers we have
selected pursue equity-centric strategies. Their role is to add
value through stock-picking in areas as diverse as midcap
biotechnology, value-style activism, Scandinavian equities,
software, Greater China, and Continental European value stocks. To
supplement nine managers with an equity-centric profile, we have
identified five leading managers who seek to deliver
less-correlated absolute returns, mostly though specialist credit
strategies. We believe the stressed/ distressed credit markets
offer extremely attractive risk-to-reward characteristics at the
present time.
At 62% of the total, the portfolio's initial allocation to
external managers is higher than one should expect over the medium
term. The weighting to this category should naturally decrease over
time, as we identify more Special Investments. In turn, this should
help to reduce look-through costs, although our primary concern is
always to maximise the net returns to shareholders whilst achieving
portfolio balance. In the meantime, we feel confident about the
performance potential of this group and believe they represent a
very attractive and differentiated combination of active
managers.
3. Direct Investments. Our in-house team has carefully selected
15 public equities, listed in the developed markets, each of which
meets our stringent criteria regarding growth potential, business
profitability and quality. Valuation also plays an important part
of our decision-making process; this sub-portfolio of eclectic,
factor-diverse and catalyst-rich stocks currently trades on quite
reasonable multiples of earnings and cash flow.
Its largest weightings are to the Industrials, Consumer,
Services and Healthcare sectors. By geography, the sub portfolio is
well spread across companies listed in the United States, Europe,
and our un-loved home market, the U.K. Reflecting much higher
valuation differentials, there is a mid-cap bias to our portfolio
and no exposure to the handful of mega-cap technology stocks that
are so heavily represented in the major indices.
Largest Five Holdings in each strategy at 30 September 2023
Largest Special Investment Holdings
Position Name Underlying Profile Asset Class % of
Total
Assets
---------------------- -------------------- ---------------- --------
Project Uranium Cameco Corporation Thematic Public Equity 1.8%
---------------------- -------------------- ---------------- --------
Project Bungalow Shake Shack Inc. Co-invest Public Equity 1.6%
---------------------- -------------------- ---------------- --------
Project Sherpa V.F. Corporation Co-invest Public Equity 1.6%
---------------------- -------------------- ---------------- --------
Metro Bank Snr Corporate
Project Challenger Non Pref Co-invest Debt 1.4%
---------------------- -------------------- ---------------- --------
Marblegate Overflow
Project Retain II Thematic Factoring 1.1%
---------------------- -------------------- ---------------- --------
Largest External Managers Holdings
Position Name Strategy Profile Region % of
Total
Assets
---------------------- -------------------- ---------------- --------
Silver Point
Capital Offshore Absolute (Specialist
Fund Credit) Distressed/Event DM Global 6.3%
---------------------- -------------------- ---------------- --------
Helikon Long
Short Equity
Fund Equity-centric Special Situations Europe 6.0%
---------------------- -------------------- ---------------- --------
Millstreet Credit Absolute (Specialist
Fund Credit) High Yield North America 6.0%
---------------------- -------------------- ---------------- --------
Contrarian Emerging Absolute (Specialist Emerging
Markets Credit) Distressed/Event Markets 5.3%
---------------------- -------------------- ---------------- --------
Eicos Fund S.A. Absolute (Specialist
SICAV-RAIF Credit) High Yield Europe 4.2%
---------------------- -------------------- ---------------- --------
Largest Direct Investments Holdings
Position Name Strategy GICS Sector Region % of
Total
Assets
---------------------- -------------------- ---------------- --------
KBR Inc Equity-centric IT Consulting United States 2.0%
---------------------- -------------------- ---------------- --------
Weir Group PLC Equity-centric Engineering United Kingdom 1.8%
---------------------- -------------------- ---------------- --------
UnitedHealth
Group Inc Equity-centric Healthcare United States 1.7%
---------------------- -------------------- ---------------- --------
Westinghouse
Air Brake Technologies Construction
Corp Equity-centric Machinery United States 1.7%
---------------------- -------------------- ---------------- --------
Sage Group plc Equity-centric Technology United Kingdom 1.5%
---------------------- -------------------- ---------------- --------
As we await entry points in certain investments, we have
maintained liquidity to take advantage of currently high short-term
interest rates by purchasing short-dated gilts.
To follow the progress of the portfolio and our approach, we
encourage you to visit the refreshed Majedie website where we post
video clips with examples along with a quarterly Portfolio Manager
commentary. We intend to be very transparent with shareholders.
Outlook
Markets have largely completed a transition to a new regime that
will be characterised by higher interest rates, variable liquidity,
and more geopolitical and cyclical volatility. Many of the
tailwinds upon which the fortunes of conventional investment
strategies rode have turned into headwinds. Against a backdrop that
is likely to be more challenging, an investor's ability to identify
- and capitalise upon - idiosyncratic, bottom-up situations will be
critical to success. The portfolio represents a distinctive mix of
fundamental bottom-up ideas with low cross-correlation to one
another. This results in a proposition that should not only be
capable of achieving inflation-beating returns over the medium-term
but also act as a complementary investment for shareholders.
The global economic outlook is uncertain and is likely to remain
so. When framing our decisions, we do not dismiss the possibility
of a recession over the next 12-24 months. We can identify numerous
possible threats to the equilibrium of markets, which include a
sharper-than-expected economic slowdown, geopolitical instability,
a possible resurgence of inflation (which would most likely be
caused by rising commodity prices), or some other extraneous
variable. The 'equity risk premium' is low by historic standards,
i.e. the projected earnings yield on equities is very close to the
yield on long-dated government bonds, which suggests that stocks
are expensive at an aggregate level.
Hence, at an asset class level, we are not especially bullish.
However, we also believe it is a mistake to generalise, especially
at a time of widening dispersion at an individual-security
level.
There is no shortage of attractive bottom-up situations that
meet our selection criteria, especially when one hunts for them in
areas that are off the beaten track. Selectivity, and an ability to
identify differentiated fundamental return sources, will be the key
to unlocking good investment outcomes over the years ahead.
Portfolio as at 30 September 2023
Market Value % of Total
(GBP000) Assets
less Current
Liabilities
Direct Investments
KBR Inc 3,016 2.0%
------------------------ --------------
Weir Group PLC 2,615 1.8%
------------------------ --------------
UnitedHealth Group Inc 2,588 1.7%
------------------------ --------------
Westinghouse Air Brake Technologies Corp 2,533 1.7%
------------------------ --------------
Sage Group plc 2,210 1.5%
------------------------ --------------
Heineken NV 2,153 1.5%
------------------------ --------------
Computacenter plc 2,112 1.4%
------------------------ --------------
Pernod Ricard SA 1,969 1.3%
------------------------ --------------
Alight Inc 1,917 1.3%
------------------------ --------------
Howmet Aerospace Inc 1,907 1.3%
------------------------ --------------
Thermo Fisher Scientific Inc 1,846 1.2%
------------------------ --------------
Breedon Group PLC 1,541 1.0%
------------------------ --------------
Other Direct Investments 3,549 2.4%
------------------------ --------------
29,956 20.1%
------------------------ --------------
External Managers
Silver Point Capital Offshore Fund, Ltd 9,447 6.3%
------------------------ --------------
Helikon Long Short Equity Fund ICAV 8,911 6.0%
------------------------ --------------
Millstreet Credit Offshore Fund, Ltd 8,896 6.0%
------------------------ --------------
Contrarian Emerging Markets Offshore Fund,
Ltd 7,971 5.3%
------------------------ --------------
Eicos Fund S.A. SICAV-RAIF 6,319 4.2%
------------------------ --------------
Praesidium Strategic Software Opportunities
Offshore Fund, LP 6,229 4.2%
------------------------ --------------
Keel Capital S.A., SICAV-SIF - Longhorn
Fund 6,204 4.2%
------------------------ --------------
Perseverance DXF Value Feeder Fund, Ltd. 6,140 4.1%
------------------------ --------------
KL Event Driven UCITS Fund 6,067 4.1%
------------------------ --------------
CastleKnight Offshore Fund Ltd 6,010 4.0%
------------------------ --------------
Paradigm BioCapital Partners Fund Ltd 5,909 4.0%
------------------------ --------------
Energy Dynamics Fund Ltd 5,447 3.7%
------------------------ --------------
Andurand Climate and Energy Transition Fund 4,112 2.8%
------------------------ --------------
Engaged Capital Flagship Fund, Ltd 2,797 1.9%
------------------------ --------------
Other External Managers 1,152 0.8%
------------------------ --------------
91,611 61.6%
------------------------ --------------
Special Investments
Project Uranium 2,647 1.8%
------------------------ --------------
Project Bungalow 2,424 1.6%
------------------------ --------------
Project Sherpa 2,297 1.6%
------------------------ --------------
Project Challenger 2,109 1.4%
------------------------ --------------
Project Retain 1,696 1.1%
------------------------ --------------
Project Diameter 1,651 1.1%
------------------------ --------------
Other Special Investments 263 0.2%
------------------------ --------------
13,087 8.8%
------------------------ --------------
Fixed Interest
United Kingdom Gilt 0.125 31/01/2024 4,325 2.9%
------------------------ --------------
Other Investments 700 0.5%
------------------------ --------------
Total Investments 139,679 93.9%
------------------------ --------------
Cash and Cash Equivalents 5,441 3.6%
------------------------ --------------
Net Current Assets 3,674 2.5%
------------------------ --------------
Total Assets less Current Liabilities 148,794 100.0%
------------------------ --------------
Dan Higgins
Marylebone Partners LLP
15 December 2023
ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held on Wednesday
17 January 2024 at Pewterers' Hall, Oat Lane, London EC2V 7DE at 12
noon.
FURTHER INFORMATION
The Annual Report and Accounts for the year ended 30 September
2023 can be obtained from the Company's website at
www.majedieinvestments.com .
A copy of the Annual Report and Accounts will be submitted
shortly to the National Storage Mechanism ("NSM") and will be
available for inspection at the NSM, which is situated at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism , in
accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.
END
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on this announcement (or
any other website) is incorporated into, or forms part of, this
announcement.
LEI: 2138007QEY9DYON C2723
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END
ACSEAFAXFDKDFFA
(END) Dow Jones Newswires
December 18, 2023 02:00 ET (07:00 GMT)
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