Majedie Investments (MAJE) has released its annual results for the year ending 30 September 2023, and is the first set of results to be released under its new investment manager, Marylebone Partners.

• MAJE reported a NAV total return of 14.1% and share price total return of 26.2% for the period. MAJE appointed its new investment manager on 25 January 2023; note that MAJE has changed it benchmark as part of its shift in investment style: its new 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.
• As a result of its new management team, MAJE’s portfolio is now allocated around three elements:

  • 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;

  • External Managers: specialist funds managed by some of the world’s leading fundamental investors, comprising 60% of the portfolio at present;

  • 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.

• MAJE has adopted a new dividend policy, which pays out c.0.75% of NAV each quarter, making 3% of NAV per annum. Over the year MAJE paid out dividends totalling 5.4p per share, compared to the 10.4p it paid in the previous year.
• MAJE’s total OCF has increased to 2.0% from the prior year’s 1.3%.This reflects a 0.3% increase in the OCF as well as a newly reported 0.4% charge for its new underlying funds.
• MAJE’s discount narrowed from 25.8% at its last year end to 18.7% as of 30 September 2023.
• The board notes that it has been successful in developing the shareholder base, with c.25% of the share in issue changing hands over the year.

Christopher D Getley, MAJE’s chairman, commented:

“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.”