RCS - Majedie Invs.PLC - Results analysis from Kepler Trust Intelligence

Majedie InvestmentsAnnouncement

02/01/2024 16:00

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RNS Number : 4166Y  Majedie Investments PLC  02 January 2024

Majedie Investments (MAJE)

02/01/2024

Results analysis from Kepler Trust Intelligence

Majedie Investments (MAJE) has released its annual results for the year ending
30/09/2023, the first following the transfer of portfolio management
responsibilities to Marylebone Partners in January 2023. Over the period,
MAJE's NAV total return increased by 14.1%. The managers report that
investment performance between February 2023 (when they assumed investment
management responsibility) and the financial year-end was effectively flat.

Over the course of the financial year, MAJE generated a share price total
return of 26.2%, which is reflected in the discount narrowing from 25.8% to
18.7%. Subsequently, MAJE's discount has narrowed to 12.1%, as at 29/12/2023.

The dividend policy has changed following the introduction of the new
investment policy which will see equal quarterly dividends paid, equating to
approximately 3% of NAV over the year - the board hopes this will ensure
greater clarity for shareholders.

Chairman Cristopher D Getley commented that MAJE's new investment manager,
Marylebone Partners, "believes that this is an excellent juncture at which to
be deploying capital." He also noted that "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", adding "this is precisely the sort of environment in which a
highly selective, fundamental approach that features distinctive bottom-up
investments should thrive."

Kepler View

Majedie Investments (MAJE) aims to provide investors with a liquid
endowment-like investment strategy. With the appointment of the new investment
manager, Marylebone Partners, in January 2023, we believe MAJE now offers
investors a truly differentiated investment proposition. The managers'
ambition over the long term is to provide shareholders with an alternative to
generic investment strategies whose historic success depended on cheap
leverage, abundant liquidity, and rising asset prices. Although the strategy
is focused on equities, the managers have an unrestricted multi-asset approach
which could provide some stability and reduce volatility over time. Although
it is too early to analyse performance, we think the portfolio includes some
diversifying allocations which we don't think many investors will have
exposure to, in addition to the prospect of new, alternative investment ideas.

In our view, the narrowing of the discount since Marylebone took over the
management of the trust, reflects the interest in such a differentiated
strategy as investors have become more aware of what MAJE now offers, and we
note the incentive for the managers is to maintain a narrow discount given the
management fee is tied to the market cap. We believe MAJE's mix of fundamental
bottom-up ideas with lower levels of cross-correlation to one another has the
potential to offer investors an investment proposition capable of performing
across the market cycle and acting as a complementary investment for
shareholders' often generic equity portfolios.

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