Majedie Investment (MAJE ), the struggling global investment trust backed by the Barlow family, has said its investment strategy under newly appointed Marylebone Partners will avoid private equity, venture capital, property and infrastructure in a bid to overturn ongoing poor performance.

Christopher Getley, chair of the £103m multi-asset trust, which had a ‘very disappointing’ 12 months to the end of September from its investments in funds at Majedie Asset Management (MAM), believes Marylebone will offer a range of benefits, including the potential for ‘differentiated’ and ‘repeatable’ performance.

Marylebone has a reputation for protecting and growing wealth, he said, returning 8.4% over the 12-month period. This looks appealing to MAJE investors as the trust’s shareholder returns slumped 24.9%. The MSCI World index fell 4.2% by comparison.

The investment portfolio fell 20%, with the global absolute return Tortoise fund its sole outperformer over the period out of seven MAM funds.

Other benefits under Marylebone, which uses a ‘liquid endowment’ model, include a 7.5% stake in the manager and a 50% management fee reduction for the first 12 months. Marylebone will also contribute to marketing costs. 

Its $400m multi-asset strategy has three parts: ‘eclectic’ special investments; specialist third-party funds; and a focused pool of listed equities. The overall approach resembles that of other leading London-listed multi-asset global funds, such as the Rothschild-backed RIT Capital Partners (RCP ) and Cayzer family-backed Caledonia Investments (CLDN )

Getley noted the move would give investors an opportunity to buy shares, which could narrow the 22% discount to net asset value (NAV) the shares currently trade at. 

MAJE unveiled Marylebone in November, several months after Majedie was acquired by Liontrust, and will put the move to shareholders at the annual general meeting on 25 January. If approved, the company will target annualised total returns of at least 4% above the UK’s consumer prices index, measured over rolling five-year periods. The new strategy will be unconstrained by a benchmark or by geography.

A quarterly dividend payment is initially expected to comprise 0.75% of the relevant quarter-end NAV, leading to an annual dividend of about 3%.

‘Careful stock selection based on good fundamental analysis of equities and credit opportunities should offer shareholders good returns and the board believes that Marylebone is well placed to deliver from this outlook,’ Barlow said.

At present, the marketing campaign consists of video presentations by MAJE’s CEO William Barlow and an overview by Marylebone’s chief investment officer, Dan Higgins.

‘Turbulence in markets has greatly expanded the opportunity set available to Marylebone to pursue a liquid endowment strategy, in particular in equities and credit. Illiquid strategies that were favoured by low interest rates no longer offer an attractive risk/reward for investors,’ Getley said.

The former MAM funds at Liontrust have performed strongly since the financial year-end, with the Tortoise fund rising 9.7% to 20 December. 

MAJE’s performance over the last 10 years falls well short of its benchmark, with NAV falling 18.7% over five years, compared with the benchmark’s 50.6% rise. Over 10 years, NAV has lifted 77.5% versus the index’s 209.3%, according to Numis Securities data.