REG - Majedie Invs.PLC - Annual Financial Report
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RNS Number : 3587M Majedie Investments PLC 22 December 2025
22 December 2025
Majedie Investments PLC
Annual Financial Report
LEI: 2138007QEY9DYONC2723
Majedie Investments PLC ("Majedie" or "the Company") announces its full year
results for the 12 months ended 30 September 2025.
Highlights:
· Strong performance for the year, with total shareholder return of
+12.9% (2024: 24.1%).
· Net Asset Value ("NAV") total return of +8.2% (2024: 21.5%).
· Annualised NAV returns since change of investment manager
(January 2023) of 9.9% and total shareholder return of 14.2%, consistent with
target of annualised returns of CPI+4% over rolling five-year period.
· Declared dividend payments totalled 8.4 pence per share for the
year (2024: 8.0 pence).
· The discount to NAV narrowed from -17.4% on 30 September 2024 to
-14.0% on 30 September 2025, averaging -11.2% over the year.
· On 30 September 2025, as a percentage of total assets, External
Managers comprised 63.1%, Direct Investments 17.0%, Special Investments 16.2%,
and 3.7% Cash.
· Full repayment of £20.7m Debenture, which matured 31 March 2025,
and replacement with a one-year £15 million revolving credit facility (RCF).
Christopher Getley, Chairman of Majedie Investments, said:
"This has been another year of good performance for Majedie, as the Company
has continued to deliver annualised returns consistent with its target of CPI
plus 4% since the appointment of Marylebone Partners in January 2023. The
performance to date gives us confidence in the Liquid Endowment Strategy and
in Marylebone's ability to deliver our target returns over the long term.
During the year, we have repaid the Debenture, replacing it with a more
flexible £15 million revolving credit facility, reduced the Company's ongoing
charges for a third consecutive year and as a result of Marylebone Partners
recently joining Brown Advisory, we have agreed a lower management fee as
well. These steps, together with the continued development of our
shareholder base, underline our commitment to cost discipline and long-term
stewardship. In an environment where we expect continued market dislocation,
we believe the Manager has the strategy, expertise, flexibility and resource
to continue protecting and growing Majedie shareholders' capital over the long
term."
For further information please contact:
Marylebone Partners LLP
William Barlow +44 (0)7880 528774
Dan Higgins +44(0)20 3468 9910
J.P. Morgan Cazenove +44 (0)20 7742 4000
William Simmonds
Rupert Budge
Cardew Group +44 (0)20 7930 0777
Tania Wild +44 (0)7425 536903
Luke Bramwell +44 (0)7467 992924
About Majedie Investments (https://www.majedieinvestments.com/) PLC:
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.
About Marylebone Partners (https://www.marylebonepartners.com/) :
Marylebone Partners LLP is known for its ability to access differentiated,
fundamental investment opportunities through a global network of external
managers, situation-specific and thematic strategies. Marylebone was founded
with the vision of delivering superior investment outcomes through
relationships built on trust and transparency.
On 12 November 2025 it was announced that regulatory approval had been granted
for Marylebone Partners to become part of Brown Advisory.
About Brown Advisory
Brown Advisory is an independent investment management firm committed to
providing its clients with a combination of investment performance, strategic
advice and the highest level of service. Brown Advisory has been a private and
independent firm since 1998. Today, the firm has more than 1,000 colleagues -
each with an equity interest - serving private clients, institutions and
charities in over 49 countries from 20 offices globally and is responsible for
approximately $174.5 billion in client assets as at end of September 2025. The
firm's colleague equity ownership, experienced investment professionals and
client-first culture help to make a material difference in the lives of its
clients.
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2025
Investment Objective
The Company's investment objective is to deliver long-term capital growth
whilst preserving shareholders' capital, and to pay a regular dividend.
Financial Highlights
8.2% Net asset value total return(1) 2024: 21.5%
12.9% Share price total return(1) 2024: 24.1%
+5.0% Total dividend per share(2) 2025: 8.4p
2024: 8.0p
14.0% Discount of share price to net asset value per share(1) 2024: 17.4%
1.3% Ongoing charges figure(1) 2024: 1.4%
1 Alternative Performance Measures: please refer to pages 90 to 92 of the
Annual Report for definitions and a reconciliation of the Alternative
Performance Measures to the financial statements.
2 Dividends disclosed represent dividends that relate to the Company's
financial year.
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.
Year's High and Lows
Share price high 280.0p
low 222.0p
Net asset value high 300.1p
low 263.7p
Discount/(Premium) high 22.4%
low (4.5)%
STRATEGIC REPORT
CHAIRMAN'S STATEMENT
The financial year ending 30 September 2025 saw the Net Asset Value ('NAV')
total return of your Company's shares grow by 8.2% (2024: 21.5%) on a total
return basis. The NAV result includes the regular quarterly dividend payments
declared of, in total, 8.4 pence per share (2024: 8.0 pence).
The share price traded at a discount to NAV for much of the year but
encouragingly traded close to par or at a small premium between mid‑April
and the end of May 2025, at a time when investor sentiment on US equities
turned negative following the announcement of tariffs on 'Liberation Day'. At
the year end the discount was 14.0% versus 17.4% a year earlier. Share price
total return for 2025 was 12.9% (2024: 24.1%).
The Liquid Endowment Strategy was adopted by Majedie when shareholders
approved Marylebone Partners LLP's ('Marylebone') appointment in January 2023.
The target is to achieve annualised returns of 4% above the UK Consumer Price
Index (CPI) over rolling five year periods. Since the appointment of
Marylebone the Company has achieved this having realised annualised NAV
returns of 9.9% and total shareholder returns of 14.2% over the period.
The External Managers strategy (63% of year end assets) added significant
value during the year, the equity centric funds contributing more than the
absolute return managers. Special Investments (16%) also made a meaningful
contribution whilst the Direct Investments portfolio (17%) was flat over the
year. Cash (4%) remains low whilst liquidity of the portfolio remains high,
enabling flexibility for the manager to identify additional investments. The
low correlation of performance between the thirty-nine holdings in the
portfolio has been retained through the year, giving the Board confidence in
the repeatability of performance over time.
At the core of Majedie's Liquid Endowment Strategy is a portfolio of
differentiated, high conviction investments that have undergone substantial
analysis to ensure that the fundamental factors that will change the price are
improving more rapidly than the market's current expectations. This margin of
safety is key to the manager's process both in controlling risk and in
consistently identifying differentiated absolute return investments.
Majedie notes the current conditions in which political change is volatile
against a background of higher interest rates and disappointing economic
growth in many regions of the world. Whilst Governments are minded to run
deficits to assuage their electorates, during the year currency and
particularly the bond markets have shown their preparedness to influence the
size of such deficits. This has had the benefit of limiting expectations of
inflation remaining far above target levels.
Whilst the significant multi-year outperformance by a relatively small number
of companies that have been shown to be the demonstrable winners in the
technologies of the future has continued during the year, the equity markets
have shown signs of broadening. Japan (+14.3%), China (+27.3%) and European
banks (+60.2%) are examples of this.
Majedie's focus on building a portfolio of low correlation, idiosyncratic
investments alongside partners where specific expertise is required is a
realistic approach to delivering the Company's Liquid Endowment Strategy.
Flexibility within a disciplined investment process has enabled Marylebone
both to exploit identified situations and to minimise the risk of extended
exposure when conditions change for the worse. This is important in the more
dislocated markets that prevail and which Majedie expects to continue.
At the time of the manager review in late 2022 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. The results to date give the Board confidence that the decision to
appoint Marylebone was the correct one. The announcement of the combination of
Marylebone with Brown Advisory in June was an important feature of the year
and your Board expects the potential benefits of larger investment and
marketing resources to support the achievement of those aims.
The Investment Manager's report covers the detail of the investment portfolio
and the drivers of performance. The Board has been encouraged by the quality
of research made available on each investment thesis and the ongoing
development of the relationship with the Marylebone team. Similarly, the Board
has built its relationships with Juniper Partners as administrator and
Johnston Carmichael as auditor and the Board believes that it is well served
by these key suppliers.
The Company repaid its Debenture of £20.7m with a coupon of 7.25% during the
year and replaced it with a £15m Revolving Credit Facility. The manager is
clear that structural gearing is not required to meet the performance target
and that a flexible facility to enable gearing from time to time in its
operations is more appropriate.
It is a core function of an investment trust Board to bear down on costs where
possible. The Company's Ongoing Charges Figure ('OCF') has fallen from 1.6% in
2023 to 1.4% in 2024 and again to 1.3% in 2025.
Following the completion of the purchase of Marylebone, Majedie has received a
cash payment in respect of its 7.5% stake in Marylebone, which is not material
to the NAV. Additionally, and as a demonstration of ongoing alignment between
the manager and shareholders, investment management fees reduced to 0.8% on
market capitalisation up to £150m, 0.675% above £150m up to £250m and 0.6%
thereafter (previously 0.9%, 0.75% and 0.65% respectively).
The Board has had a year of stability and I am grateful for the commitment and
wise counsel of my colleagues throughout the year. Alongside Sir William
Barlow (Non-Independent), four Independent Directors including myself joined
the Board in an eighteen-month period beginning 1st January 2019. In 2021 the
Board entered an intense period during which the Board recommended to
Shareholders a renewed Investment Policy, transfer from self-managed status
and the appointment of Marylebone Partners as manager and AIFM. Subsequently
the Board has also appointed Juniper Partners as administrator, Johnston
Carmichael as auditors and BNP Paribas as custodian. Heinrich Merz joined as
an Independent Director with deep experience in the absolute return and
alternative investment industry in 2024. After a period of relative stability
and in order to re-establish a regular rotation the Nomination Committee has
agreed that, contingent on re-election by shareholders in the meantime, one
Independent Director will retire at each AGM from 2027 to 2029.
Subject to the requirement to appoint Directors on the basis of merit against
the specific criteria for each role being offered, it is the Board's intention
that this rotation results in Majedie meeting the diversity requirements of
the FCA Listing Rules and broadening the range of perspectives in the Board's
collective decision-making and risk oversight.
Considerable focus has continued through the year on the development of the
shareholder base and promoting Majedie more generally to enable expansion in
the future, which was one of the key aims of the Manager Review. After the
financial year end, it was encouraging to win the Flexible Investment Category
at the Investment Week Investment Company of the Year Awards 2025. The Company
remains fortunate in having a supportive Barlow family shareholder group.
Looking forward, your Board remains confident in the Investment Manager's
ability to use fundamental analysis to identify differentiated sources of
investment returns that are complementary both to each other and other assets
of Majedie's shareholders. Key to those investments is that the underlying
holdings are liquid and priced by markets regularly, as this enables
shareholders to have confidence in the published NAV.
This year's AGM will be held at The City of London Club, 19 Old Broad Street,
London EC2N 1DS at 12.00pm on Wednesday 18th February 2026. 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
19 December 2025
INVESTMENT MANAGER'S REPORT
Investment Strategy
Majedie Investments PLC's ('Majedie') investment style has evolved over the
years since it became an Investment Trust in 1985, however one basic principle
has remained true throughout: that a long-term approach with equities at the
core is the best way of compounding wealth after the potential effects of
inflation. Majedie sets out to deliver annualised returns of at least 4% above
the UK Consumer Price Index (CPI) over rolling five-year periods, employing a
'liquid endowment' investment strategy to achieve this.
The 'endowment' element alludes to the mentality and philosophy that has
served the investment programmes of many of the elite university endowments so
well over time. Essentially, this is to think long-term and adopt a
fundamental approach that avoids over-trading or market-timing, eschews
allocations to low-return asset classes such as government bonds, but has a
willingness to embrace differentiated and sometimes alternative return
sources.
Unlike the university endowments, Majedie does not invest in deeply illiquid
strategies such as private equity, venture capital or real estate. We do not
believe that it is necessary to lock money up over longer time periods to
achieve inflation-beating returns and all investments in the portfolio are
marked-to-market regularly. This is the 'liquid' element of our investment
approach, which ought to give shareholders additional confidence in the net
asset value. It is this combination of providing access to differentiated
return sources alongside the regular marked-to-market valuation that makes
Majedie a compelling investment.
Majedie's portfolio is structured around three fundamental components. First,
the External Managers component which is made up of a selection of funds
managed by world-class fundamental investors each a specialist in a sector or
a region or with a specific style bias, most of whom work at independent fund
management boutiques. 58% of the allocation to External Managers is invested
in equity-centric strategies, while the absolute-return component, which
consists of an allocation to specialist credit managers, makes up 42%.
Second, Majedie invests in a portfolio of developed market listed equities.
The Direct Investments component invests in high quality companies with
healthy topline growth, strong business profitability, sound balance sheets
and well-regarded management teams. This is a focused list selected for their
quality characteristics, but where there is an element of change within the
company that has not yet been recognised by the market. This element of
'unappreciated change' enables us to invest at an attractive price. This
component of the portfolio also includes a position in Global X Copper Miners
ETF.
Third, Special Investments are an opportunity to invest alongside some of the
world's best investors in their highest conviction ideas. Through our 'global
ideas network', Marylebone has the opportunity to invest in a combination of
carefully selected co‑investments, special purpose vehicles and thematic
situations all of which must meet strict criteria before being considered for
inclusion in Majedie's portfolio. These opportunities must have been brought
to us by a trusted source, must have a higher expected return potential and
must be monetised within three years. Although the instruments within the
Special Investments component of the portfolio can be less liquid, (except for
three positions amounting to, in total, less than 1.5%), all underlying
holdings are priced independently and at least monthly.
The closed-ended nature of the investment trust structure enables us to invest
for the longer-term in the knowledge that we will not be required to sell
invested positions before they have reached our expectation of fair value.
The tables below highlight the portfolio's regional, sector, and market
capitalisation exposure, taking into account the underlying holdings of each
external manager and adjusting for position size.
Geographic Region
North America 38%
Europe 34%
Japan 6%
Asia Pacific 7%
Emerging Markets (inc Asia) 13%
Other 2%
Sector
Energy 1%
Materials 18%
Industrials 20%
Consumer Discretionary 7%
Consumer Staples 3%
Health Care 12%
Financials 11%
IT 20%
Telecoms 5%
Utilities 2%
Real Estate 1%
Market Cap
Large Cap 21%
Mid Cap 52%
Small Cap 27%
Source: Marylebone Partners LLP. as of 30th September 2025.
Performance Highlights
The portfolio's net asset value (NAV) per share total return for the year
ending 30 September 2025 was +8.2%.(1)
Gross Contribution by strategy
for the Financial Year ending 30 September 2025
External Managers (Equity-centric) +608 bps
External Mangers (Absolute Return) +310bps
Direct Investments -3 bps
Special Investments +95 bps
Overlay Hedge -60 bps
Source: Marylebone Partners LLP. Gross contribution as of 30th September 2025.
Shows the return on the investment portfolio net of all underlying fees /
expenses but gross of the Investment Manager's fees and expenses.
The External Managers allocation (63% of the portfolio) made up most of the
investment returns over the year. The equity-centric component led the way,
contributing over +600bps, despite minimal exposure to AI-related mega-cap
stocks listed in the U.S. The pattern of returns amongst External Managers
demonstrates that it is possible to achieve risk diversification within a
focused portfolio of managers who are, themselves, taking a high-conviction
stance. This is because each of the funds we have selected operate in a
distinct area. Within the equity‑centric component, the Helikon Long Short
Equity Fund (Europe) made the biggest contribution to performance delivering
+377bps, supported by the Perseverance DXF Value Feeder Fund (China listed
equities) contributing +134bps. Briarwood Capital, (International value) and
Strategic Capital's Japan-Up Fund (small and mid‑cap activist), added +50bps
and +39bps respectively. These returns were augmented by the absolute-return
managers who made a largely uncorrelated collective contribution of +310bps.
Each of the six absolute-return managers made positive contributions.
Contrarian Emerging Markets Offshore Fund was the best performing manager,
contributing +115bps, as the exposure to various Latin American distressed
positions contributed positively during the period. Context Partners Offshore
Fund, Silver Point Capital Offshore Fund and Millstreet Credit Offshore Fund
all contributed positively over the period. Engaged Capital Flagship Fund and
Paradigm BioCapital Partners Fund, both equity-centric managers, were the only
two negative contributors to performance.
The Direct Investments strategy (17% of the portfolio) was flat over the
period. The portfolio has a deliberate tilt towards International markets and
away from U.S. listed 'momentum' stocks. Positive contributions were made from
the portfolio's exposure to Global X Copper Miners ETF which delivered +99bps,
as demand for copper strengthened amid rising electrification and
infrastructure demand, while copper supply tightened as several major mines
faced production disruption. This performance was supported by investments in
three U.K. listed companies, Weir Group PLC which added +53bps, IMI PLC, which
added +44bps, and Computacenter PLC which contributed +31 bps. U.S. listed
SS&C Technologies Inc. also made a positive contribution of +33bps. Poor
performers included Evolent Health Inc., which detracted -106bps, KBR Inc.,
which detracted -60bps and Basic-Fit NV, which detracted -30bps. These
positions were sold over the course of the year.(2)
The contribution from Special Investments (16% of the portfolio) was positive,
adding +95bps to overall performance. The main contributors were Project
Uranium(3) which added +118bps, Project Vista (an investment in the public
equity of Orizon Valorizacao de Residuos SA, 'Orizon'), which added +31bps and
Project Senior(4) (an investment in the public equity of CVS Health
Corporation 'CVS Health'), which added +23bps. Project Zeno (an investment in
the public equity of Bank of Cyprus Holdings PLC), which added +118bps and
Project Ox (an investment in the public equity Oxford BioMedica PLC), which
added +29bps, were also notable contributors to performance.
At CVS Health, the initial benefits of management change and pricing
discipline are becoming more apparent as operating margins continue to expand.
In the case of uranium, although there is price volatility and the timing of
any potential outcome is uncertain, demand is rising with the U.S.
administration now targeting a four-fold increase in nuclear capacity by 2030.
With limited incremental supply, long-term contracts are likely to be priced
higher. With Orizon, which is Brazil's largest waste-management company, the
idea sponsor continues to believe there is an expectation of significant
profit growth potential as landfills mature and the company contracts
additional revenues, notably in biomethane and carbon credits.
Returns were offset by Project Fortress(5) (an investment in the public equity
of FTAI Infrastructure Inc., 'FTAI'), which detracted -94bps. FTAI was
volatile this year in large part due to uncertainty over the U.S. direction on
key policy issues, and because a recent acquisition has yet to deliver its
full potential. Earlier this year there were delays to some contracts, leading
to a lower EBITDA growth trajectory than the market had expected. More
recently there have been some positive data points in relation to receiving
approvals to build-out natural gas liquid storage facilities.
Project Sherpa(6) (an investment in the public equity of VF Corporation),
which owns iconic brands including Timberland, Vans and The North Face,
detracted -45bps. Its recovery has been partially obscured by tariff fears and
shifting consumer trends. The investment hinges on a recovery in Vans, which
should underpin profit growth next year. Project Wrigley(7) (an investment in
the public equity of Portillo's Inc.), is a fast casual restaurant chain
operating around Chicago and the Sunbelt states which also detracted -93bps.
1 As of 30th September 2025. Debt included at fair value (Debenture repaid at
end of March 2025). Past performance is no guarantee of future performance.
Returns are not guaranteed.
2 Past performance is not a reliable indicator of future results.
3 Global X Uranium ETF, Sachem Cove Special Opportunities Fund LP, and Sprott
Uranium Miners ETF.
4 GCM Suggestivist, I Offshore Partners, LP. CVS Health Corporation, ('CVS').
5 Qena Capital Partners, LP (Class T).
6 Engaged Capital Co-Invest XVI LP.
7 Engaged Capital Co-Invest XVII LP.
THE PORTFOLIO
EXTERNAL MANAGERS:
The investment team at Marylebone has been identifying and evaluating funds
managed by exceptional fundamental investors for over twenty-five years. These
opportunities are sourced from a global network of leading specialist funds.
The majority are 'owner operated' boutiques, many of which are closed to new
investment. The selection process involves rigorous proprietary research
structured around evaluating a manager's 'People, Performance and Process', in
addition to onsite meetings, case studies and quantitative analysis. The
investment team look for alignment of interest, a long-term investment outlook
and high conviction, whilst avoiding big brands, asset gatherers, excessive
trading and strategies that depend on leverage.
These funds are often capacity-constrained because they prioritise investment
performance over asset growth. As a result, investing in Majedie's shares may
be the only way to gain exposure to these investment managers, whom we believe
to be best-in-class.
The equity-centric managers in Majedie's portfolio have been selected because
Marylebone believes that they, collectively, provide highly differentiated and
repeatable sources of return in fundamental strategies delivering skill-based
returns and capitalising on structural inefficiencies by style, region and
sector. The position overlap between each manager and the portfolio's own
Direct Investments book is minimal and the statistical cross-correlation is
low.
Allocation Range 30%-60%(1)
Portfolio Allocation £m 100
Current Allocation 63%
Holdings 17
External Managers
Global Network of leading specialist funds
Owner operated boutiques, no products
Capitalising on structural inefficiencies
Fundamental strategies, skill-based returns
Absolute Return
Specialist Credit(2) 26.4%
Equity Centric
Regional Specialists(3) 20.5%
Sector Specialists(4) 8.0%
Style Specialists(5) 8.2%
Five largest allocations to equity-centric External Managers
Five largest holdings (%) Expertise/Sector Geography Style Portfolio allocation % Portfolio allocation GBP £m
Perseverance DXF Value Feeder Fund Ltd Greater China Emerging Markets Long only 5.7 9.1
Helikon Long Short Equity Fund ICAV Special Situations Europe Long bias 5.3 8.4
Paradigm BioCapital Partners Fund Ltd Biotech Global Long bias 4.2 6.7
CastleKnight Offshore Fund Ltd Special Situations North America Long bias 4.0 6.3
Praesidium Strategic Software Opportunities Offshore Fund Ltd Software North America Long bias 3.7 5.9
1 Future performance remains subject to market conditions.
2 Absolute-Return (specialist credit): Investments that should show a lower
correlation and beta to global equities, with a fundamental profile that can
deliver attractive returns.
3 Regional Specialists: an Investment Manager who focuses on investment
opportunities within a specific geographical area or region.
4 Sector Specialists: an Investment Manager that focuses on investment
opportunities within a specific industry or sector of the economy.
5 Style Specialists: an Investment Manager who focuses a particular style of
investing. Examples include a focus on market capitalisation (small cap.
mid-cap or large cap), or a growth versus value orientation.
Source: Marylebone Partners, as of 30 September 2025.
Within the absolute-return category, the investment team continues to favour
managers who specialise in stressed and distressed credit, who seek to
mitigate market risk through their own actions, notably through hedging and by
investing in defensive short-duration instruments that sit senior in the
capital structure.
Portfolio exposure to specialist credit managers was pared back over the
course of the year as spreads tightened to less attractive levels.
Five largest allocations to absolute-return External Managers
Five largest holdings (%) Expertise/Sector Geography Style Portfolio allocation % Portfolio allocation GBP £m
Contrarian Emerging Markets Offshore Fund Ltd Emerging Market Credit Emerging Markets Absolute Return 5.9 9.3
Silver Point Capital Offshore Fund Ltd Stressed/Distressed Global Absolute Return 5.0 8.0
Millstreet Credit Offshore Fund High Yield North America Absolute Return 4.6 7.4
Eicos Fund SA High Yield Europe Absolute Return 3.8 6.1
Context Partners Offshore Ltd Specialist Credit North America Convertible Bonds 3.7 5.9
We added two new equity-centric managers, Niatross Asia Opportunities and the
Brown Advisory Global Focus Fund, over the year and partially exited one
absolute-return manager, CQS Credit Multi-Asset Fund.
At the start of the year, a research priority was to identify a long-only,
pan-Asian equity manager to complement our two very specialist funds operating
in the region. A comprehensive search led us to Niatross Investments, an
independent Hong Kong-based firm led by Julian Snaith (formerly of TPG Axon).
As with most of our managers, Snaith manages a focused portfolio of
high-conviction positions. Today, his preferred hunting grounds are Japan,
Korea, Hong Kong, Singapore and Australia, and more than two-thirds of the
fund's exposure lies in the Financials, Consumer and Industrials sectors. The
investment approach is fundamental, patient and value oriented. During the due
diligence process, which included video calls and several in-person meetings,
we were struck by the rigour of their research and an almost obsessive
emphasis on avoiding loss in individual positions, even under bear-case
scenarios. Niatross Investments formalises this into its process, modelling a
probability-weighted return profile for its investments over a three-year
horizon.
CASE STUDY: EXTERNAL MANAGERS
BRIARWOOD CAPITAL OFFSHORE LTD
Position 3.5%
THE MANAGER
Briarwood Chase Management LLC, ('Briarwood') is a value-oriented investment
firm specialising in dislocated small and mid-cap equities across developing
markets.
Founded in 2014 by Aalap Mahadevia - with the backing of several family
offices - Briarwood's strategy was shaped and refined during his prior tenure
at the Tiger Consumer Fund.
The firm's team of experienced, multilingual analysts employs proprietary
fundamental research to identify situations that align with pre-defined
investment patterns. This disciplined approach enables Briarwood to build high
conviction positions in a select number of eclectic opportunities trading at
significant discounts to intrinsic value.
THE OPPORTUNITY
Emerging and frontier markets present enduring opportunities driven by
structural inefficiencies, limited analyst coverage, and asset mis-pricings.
Secular growth trends, favourable demographics, and ongoing economic reforms
generate long-term value, while short-term volatility can create attractive
entry points for disciplined fundamental investors. At Briarwood, the most
compelling opportunities often lie in "stub" equities: publicly traded shares
of companies with significant private equity (PE) ownership. The involvement
of PE sponsors typically ensures robust corporate governance and strong
control rights, offering an added layer of protection that is often lacking in
developing markets.
Briarwood's investment process is designed to uncover a select number of
exceptional opportunities within markets where competition is inherently
limited. Unlike many local investors, Briarwood brings a distinctive edge in
evaluating corporate governance and applying rigorous, bottom-up fundamental
analysis. Its focus on private equity "stub" equities is a key differentiator.
Leveraging a proprietary database of companies and industry practitioners,
Briarwood exploits inefficiencies in a repeatable and disciplined manner. In
addition, the firm's long-term orientation and alignment with like-minded
capital partners fosters a stable investment approach that compounds over
time.
Firm
Inception 2014
Firm AUM US$ 1.0bn
Strategy AUM US$ 1.0bn
Performance
Annualised since inception 11.0%
Standard deviation 11.7%
Correlation (MSCI ACWI ex US Small Cap) 0.6
Beta (to ACWI MSCI) 0.7
DIRECT INVESTMENTS
Marylebone are long-term investors in a small number of rigorously researched
stocks, which we believe offer attractive growth, profitability and quality
characteristics. The investment team seeks situations where a company's
earnings potential, positive change or strategic value is not appreciated by
the markets and valuation plays an important part of our assessment. Once
again, the composition of our Direct Investments book looks very different to
major indices, or the portfolios managed by peers.
Over the course of the year, we sold 5 positions and added two: DCC PLC and
Stabilus SE.
Allocation Range 10%-30%
Portfolio Allocation £m 27
Current Allocation 17%
Number of holdings 9
There is no structural or style factor bias to our direct investments. We seek
non‑consensus situations representing unappreciated earnings potential,
misunderstood change or strategic value.
When investing in equities, whether directly or through external managers, the
main purpose is not to outperform an index but to deliver high-quality
absolute returns that exceed inflation. We are confident that if they fulfil
their potential, the return outcome will look very favourable.
The valuations of the portfolio's direct investments are undemanding. The
weighted average price to earnings multiple of the portfolio based on
Marylebone's estimates of financial year 2026 earnings is 13.8x, with weighted
average earnings growth expectations of 17%. Our analysts' expectation of
upside to fair value is 63%.
Five largest allocations to Direct Investments
Five largest holdings (%) Sector Geography P/Ee 2026 Portfolio allocation % Portfolio allocation GBP £m Earnings growth (one year forward)
Global X Copper Miners ETF Commodities Global n/a 4.8 7.6 n/a
Computacenter PLC Business Services UK 15x 2.6 4.0 9%
Weir Group PLC Industrials UK 18.2x 2.1 3.4 14%
IMI PLC Industrials UK 17.3x 1.9 3.0 8%
Cancom SE IT Services Europe 14.6x 1.5 2.4 45%
Source: One year forward earnings growth numbers, and multiples derived, are
Marylebone Partners LLP's analysts' estimates.
CASE STUDY: DIRECT INVESTMENTS
WEIR GROUP PLC
THE COMPANY
Weir Group PLC ('Weir') is a market-leading supplier of products and services
for the Mining, Infrastructure and Construction industries. Having disposed of
its legacy Flow Control and Oil & Gas segments in 2021, Weir is now a pure
play on the mining industry through the manufacture of crushing and grinding
equipment, pumps, valves and tools, alongside a high margin maintenance,
equipment repairs and aftermarket services arm.
THESIS POINTS
Weir has transformed into a high-quality mining equipment company from what
was previously a low-quality 'oil play'. An overlooked beneficiary of the
global energy transition from fossil fuels to electrification, Weir should
capitalise on structural demand growth from this long-running process, whilst
the mining capex cycle is close to a positive inflection point. Weir is most
exposed to copper, a commodity facing a structural supply shortage. Weir
operates in a rational market, which enables robust pricing and a high barrier
to entry. The company has also shifted to be primarily an aftermarket business
bringing with it the benefits of recurring business and higher margins.
Weir trades on a price to earnings multiple of 18.2x FY 2026's earnings for
forecasted earnings growth of mid to high teens.
Company Information
Position 2.1%
Stock price £27.3
Market capitalisation GBP 7.1bn
Enterprise value GBP 8.3bn
Revenue GBP 2.6bn
EBITDA margin 23.1%
Net income GBP 316.8m
Earnings per share GBP 1.2
Source: FactSet. As of 30 September 2025.
SPECIAL INVESTMENTS
Co-investments
Thematic Funds
Special Purpose Vehicles
One degree of separation
12-36-month time horizon
Priced at least quarterly
Special Investments are sourced through Marylebone's 'global ideas network',
using the 'investment IP' of leading practitioners across regions, sectors and
asset classes. Our connections extend beyond the professional investor
community into corporate finance, boardrooms and the family office/endowment
arenas. The deep fundamental work Marylebone undertakes, and the quality of
capital it represents, creates a beneficial 'flywheel effect'. Consequently,
the investment team is able to access opportunities for Majedie's shareholders
that never come onto the radar screen of most allocators.
Special Investments must meet strict criteria before they can be considered
for inclusion in Majedie's portfolio. First, they must be brought to us by a
trusted source who must also have 'something to lose' if the investment does
not meet its return expectations. Second, each potential investment is
expected to have a higher return potential than other elements of the
portfolio. Finally, it must be possible for the position to be monetised
within three years. On average, the investment team turns down five of every
six opportunities. Sometimes less liquid in nature, Special Investments are
nevertheless marked to market regularly and there is no private equity held in
the portfolio.
Allocation Range 10%-40%
Initial Target 20%
Portfolio Allocation £m 26
Current Allocation 16%
Holdings 13
Over the course of the year, we invested in four new Special Investments.
Project Galicia is a litigation finance opportunity brought to us by Bow
Street Capital, whose Transatlantis platform seeks to pursue claims against
Spanish banks and retailers who have issued credit cards at either usurious
rates or without meeting transparency obligations. The situation has limited
jurisprudence or credit risk, and we believe it can deliver very attractive
returns with zero correlation to financial markets.
Project Philadelphia marks JB Investments' first special purpose vehicle in
five years. It is an investment in public equities within a cyclical industry
in China undergoing structural change. This follows a pattern that has
delivered exceptional returns for JB previously: uneconomic overcapacity will
be removed from the industry by bankruptcies or forced closures, resulting in
a sharp subsequent rebound in selling prices.
Project Zeno is an investment in the public equity of Bank of Cyprus Holdings
PLC, a healthy, profitable, and over-capitalised European bank. Led by major
shareholder Caius Capital, the strategy targets the expected release of excess
capital in the region of 20% of the bank's market capitalisation, via
increased dividends or share buybacks driven by shareholder engagement. This
is expected to unlock value and re-rate the stock.
Project Ox is an investment in the public equity of Oxford BioMedica PLC,
which is a Contract Development Manufacturing Organisation (CDMO) serving Cell
and Gene Therapy (CGT) companies, brought to us by Briarwood. It specialises
in lentiviral and adeno-associated viral vectors that enable these advanced
therapies for patients. In September 2025, Marylebone (on behalf of Majedie)
participated in a £60 million equity raise to provide the company with funds
to expand its US site and add 'fill and finish' capacity, allowing the company
to capture the full economics associated with its pipeline. We anticipate that
several late-stage therapies in the company's pipeline will transition to
'commercial stage' over the next 18 months, while the clinical business
continues to sign new clients.
Project Fortress, an investment in the public equity of Frontier
Communications Inc., and Project Challenger an investment in the Senior
Non-Preferred MREL-eligible bonds of Metro PLC, were both sold during the
year.
Five largest allocations to Special Investments
Five largest holdings (%) Sector Geography Style Portfolio allocation % Portfolio allocation GBP £m
Sprott Uranium Miners ETF & Sachem Cove Special Opportunities Fund LP Commodities Global Thematic 3.7% 5.9
Bank of Cyprus Holdings PLC Financials Europe Co-invest 2.3% 3.7
Orizon Valorizacao de Residuos SA Utilities Brazil Co-invest 1.8% 2.8
Oxford BioMedica PLC Healthcare UK Co-invest 1.6% 2.5
GCM Suggestivist I Offshore Partners, LP (CVS Health) Healthcare North America Co-invest 1.6% 2.4
CASE STUDY: SPECIAL INVESTMENTS
CVS HEALTH
The idea to invest in CVS Health was brought to Marylebone in 2024 by Glenview
Capital, a long short equity fund manager based in New York, founded by Larry
Robbins. The Healthcare sector has been a significant focus for the firm,
which often employs an activist engagement approach to its investments.
CVS Health is a publicly listed U.S. Healthcare company with substantial
self-help potential. It comprises three core businesses: Health Services (a
pharmacy benefit manager), Healthcare Benefits (an insurance business) and
Pharmacy/ Wellness (drug stores).
Following significant operational and capital allocation missteps at CVS
Health, Glenview sees potential for earnings repair as the health insurance
book is returned to profit. Additional upside could come from cost-cutting and
a more disciplined capital allocation.
Glenview Capital's turnaround of CVS Health is gathering pace, now that Larry
Robins has joined the Board. The firm has exited loss-making contracts,
improved benefit design to cut losses and is deploying Artificial Intelligence
to trim authorisations and overall running costs. Leverage is down, and
Glenview believes earnings potential remains unappreciated, with further
upside ahead.
Company Information
Position 1.6%
Market capitalisation US$ 95.6bn
Stock price $75.4
Enterprise value US$ 166.3bn
Revenue US$ 393.1bn
EBITDA margin 4.1%
Net income US$ 8.0bn
Earnings per share US$ 0.7
Source: FactSet. As of 30 September 2025.
MARKET OUTLOOK
Marylebone remains optimistic about the portfolio's prospective returns, even
as the investment team takes a circumspect view of broader markets. The
largest constituents of major indices appear expensive and, in our judgement,
offer little margin of safety. A generation of investors has grown accustomed
to capital gains from the S&P 500 and private equity, sees the US dollar
as a one-way trade, and government bonds, or par credit, as dependable sources
of income and protection. Many portfolios are thus heavily concentrated in
these familiar areas. By contrast, the assets the investment team finds most
attractive remain largely absent from mainstream allocations. Years of
under-investment have created scarcity and, with it, the opportunity for
greater returns.
The rate of change
Our most rewarding investments have often come from areas where expectations
are depressed and where fundamentals are improving. In such situations, even
modest progress can have an outsized impact, because rising earnings often
attract higher valuation multiples. Conversely, when starting valuations are
stretched, small disappointments can trigger disproportionate losses. Our
experience suggests that, especially at valuation extremes, it is the rate of
change in earnings expectations that matters more than their absolute cadence.
Today, most opportunities lie in a middle ground: neither so cheap as to
ensure success, nor egregiously expensive. That is when discipline counts.
Rather than rely on subjective judgements about valuation, we seek situations
where the market is mispricing reality, ideally with an identifiable catalyst
to correct the anomaly.
We have avoided chasing 'story' stocks and other speculative assets that
bounced back after this year's tariff-induced volatility, many of which we
feel are vulnerable to negative rate-of change. As absolute-return investors,
we will not put capital at risk of permanent loss simply to keep pace with
benchmarks. We prefer bottom-up opportunities across international (non-U.S.)
markets, midcaps and eclectic value situations where fundamentals are
improving from a low base. The composition of Majedie's eclectic Direct
Investments book illustrates the point: we have focused on sound businesses
where transient issues may have obscured structural progress. In the UK,
equities such as Weir Group PLC, IMI PLC, Computacenter PLC, Breedon Group PLC
and DCC PLC each trade at steep discounts to intrinsic value, which should
close as positive rate of-change becomes apparent. With the tailwind for large
cap 'quality' stocks potentially fading, security selection and position
sizing are more important than ever in this area.
We have added the Brown Advisory Global Focus Fund, (comprising of up to
twelve global equities), as a preferred vehicle for exposure to world-class
companies with durable advantages and strong compounding potential. The fund's
disciplined process aligns perfectly with our philosophy, and now Marylebone
is a part of Brown Advisory, it will be available to Majedie's shareholders
without an additional layer of fees. Going forward, it will be categorised as
a part of the Direct Investments allocation.
Asia: reform and renewal
Low expectations and improving fundamentals are most evident in Asia. Barely a
year ago, many allocators had written off China as 'un-investable', convinced
they understood the country's structural challenges better than its own
policymakers. Today, the same allocators are increasingly fearful of missing
out. China's authorities have acted to revive domestic demand, curb uneconomic
competition ('involution') and channel investment toward strategic
technologies. The country's massive build-out of AI infrastructure is viewed
less as a business venture than an investment in a national utility, designed
to raise productivity and social resilience. Through our external-manager
investment in the Perseverance DXF Value Feeder Fund and other targeted
strategies, we aim to capture this 'slow bull market', which appears to be
built on sturdier foundations than the liquidity-fuelled rally of 2015.
Japan remains one of the most compelling reform stories globally. Corporate
governance continues to improve, with management teams increasingly responsive
to shareholder pressure for efficiency and returns. Majedie's investment in
Strategic Capital's Japan-Up Fund gives us access to a pioneer of constructive
activism, whose purpose is to prise value from mismanaged small and mid-caps.
Additional exposure through Niatross Asia Opportunities extends Majedie's
participation in the region's positive change.
The US: niche opportunities
In the United States, examples of low expectations and improving fundamentals
are less commonplace, but they do exist in specialist areas such as
Biotechnology and Software. Within the Biotechnology sector, firms whose
products remain in clinical development have trailed revenue producing peers,
reflecting anxiety over the Trump administration's stance on scientific
innovation. That scepticism has created opportunity. In another example of
positive rate-of change, Paradigm BioCapital owns the shares of companies with
products on the verge of commercialisation; a transition that typically brings
both earnings growth and multiple expansion.
Software remains fertile ground for selective investors. The shares of many
strong software-as-a-service (SaaS) companies have been eschewed amid
confusion over AI's impact on the sector's profitability. Praesidium Strategic
Software Opportunities focuses on firms with dominant market positions,
mission-critical products and recurring revenues, where AI should augment
rather than erode their business economics. Collectively, the fund's 10-12
holdings are expected to generate nearly 20% of their current market
capitalisation in free cash flow over the next three years.
Absolute-return credit opportunities
Spreads on conventional investment-grade and high-yield debt sit near
two-decade lows, meaning investors have seldom been paid less for taking on
the risk of default. Private credit (to which Majedie's portfolio has no
exposure) may promise higher yields but is not consistent with our focus on
liquid underlying positions.
Our approach to credit is very different. We focus on asymmetric situations
where downside should be limited to the recovery of principal, and where
upside potential is considerable. Through our longstanding relationships with
leading stressed and distressed investors, we seek to capitalise on divergence
between the price of credit instruments of differing quality buckets. In US
leveraged loans, for example, BB-rated bonds yield only 2.6% more than 'risk
free' Treasuries of similar duration, whereas spreads on CCC paper are some
12.6%. This differential, twice the level of 2021, creates a very attractive
setup for long-short credit managers because it allows them to mitigate market
risk inexpensively, while pursuing situation-specific opportunities with
higher return potential.
Real Assets: scarcity over sentiment
As long-term investors, we like tangible assets, the price of which depends on
fundamental supply and demand considerations. This mindset steers us toward
copper and uranium, two commodities that are scarce and strategically vital.
Both sit at the nexus of global electrification, AI-related energy demand and
essential investment in defence infrastructure. A persistent demand supply
imbalance for copper over the medium-term is being led by energy transition
needs, with little visibility of new supply coming on stream. In the case of
uranium, the story is similar but different. Demand is increasing on the back
of the requirement for consistent, low carbon energy supply to meet rising
demand from data centres and broader electrification needs. We do not believe
there is sufficient supply to meet this growing demand.
Currency
It is important to remind shareholders that shares in Majedie should be seen
as a Sterling-denominated asset; volatility in exchange rates should not
significantly affect the Net Asset Value. Except for Special Investments and
the portfolio's holding in Global X Copper Miners ETF, we seek to neutralise
the impact of currency movements using currency forwards.
Summary
Majedie's portfolio is built around high-conviction, non-consensus
opportunities. In many cases, these can be described as 'rate-of-change'
situations, where fundamentals are quietly improving but expectations remain
low. Just as importantly, we have sought to avoid areas where expectations are
so high that even a modest disappointment could be severely punished by the
markets. With major indices now appearing fully valued, the most compelling
opportunities lie in overlooked international (non-U.S.) markets, specialist
credit, and real assets where structural imbalances persist. Majedie's
differentiated, bottom-up approach is designed to capture these mispriced
situations with discipline and conviction.
Business Development
On 12 November 2025 it was announced that regulatory approval for Marylebone
to become part of Brown Advisory had been approved.
There will be no change to the way Marylebone manages Majedie's portfolio. The
motivation for joining Brown Advisory is straightforward: the team will retain
autonomy of the investment process and the portfolio, whilst Majedie's
shareholders will benefit through Marylebone's interaction with, and support
of, Brown Advisory's analysts and portfolio managers. We anticipate it will
strengthen our ability to negotiate preferential terms on behalf of
shareholders and reinforce our growth ambitions for the Company.
Thank you to all shareholders for their ongoing support of the Company and we
look forward to reporting on further progress next year.
Dan Higgins
Marylebone Partners LLP
19 December 2025
Portfolio as at 30 September 2025
Market Value (£000) % of Total Assets less Current Liabilities
Direct Investments
Global X Copper Miners ETF 7,652 4.8%
Computacenter plc 4,073 2.6%
Weir Group plc 3,410 2.1%
IMI plc 2,978 1.9%
Cancom SE 2,426 1.5%
Breedon Group plc 2,046 1.3%
SS&C Technologies Holdings Inc 1,631 1.0%
DCC plc 1,504 0.9%
Stabilus SE 1,370 0.9%
27,090 17.0%
External Managers
Contrarian Emerging Markets Offshore Fund Ltd 9,312 5.9%
Perseverance DXF Value Feeder Fund Ltd 9,114 5.7%
Helikon Long Short Equity Fund ICAV 8,357 5.3%
Silver Point Capital Offshore Fund Ltd 8,025 5.0%
Millstreet Credit Offshore Fund Ltd 7,392 4.7%
Paradigm BioCapital Partners Fund Ltd 6,747 4.2%
CastleKnight Offshore Fund Ltd 6,314 4.0%
Eicos Fund SA SICAV-RAIF 6,071 3.8%
Praesidium Strategic Software Opportunities Offshore Fund LP 5,927 3.7%
Context Partners Offshore Ltd 5,870 3.7%
Briarwood Capital (Offshore) Ltd 5,538 3.5%
CQS Credit Multi Asset Fund 5,254 3.3%
Niatross Investments Asia Opportunities Feeder Fund 5,124 3.2%
Brown Advisory Global Focus Offshore Fund Ltd 4,566 2.9%
Japan-Up Limited Partnership II 4,379 2.8%
Engaged Capital Flagship Fund Ltd 2,212 1.4%
100,202 63.1%
Special Investments
Sprott Uranium Miners ETF 4,337 2.7%
Bank of Cyprus Holdings plc 3,748 2.3%
Orizon Valorizacao de Residuos SA 2,805 1.8%
Oxford BioMedica plc 2,520 1.6%
GCM Suggestivist I Offshore Partners LP 2,480 1.5%
JB Investments Offshore Fund IV Ltd 1,787 1.1%
Engaged Capital Co-Invest XVI LP 1,765 1.1%
Sachem Cove Special Opportunities Fund LP 1,540 1.0%
Qena Capital Partners LP (Class T) 1,528 1.0%
Engaged Capital Co-Invest XVIII LP 1,243 0.8%
Impactive Balentine Fund LP 912 0.6%
Bow Street Global Opportunities Fund LP 624 0.4%
Marblegate Partners II Offshore Overflow Fund LP 525 0.3%
25,814 16.2%
Other Investments 104 0.0%
Total Investments 153,210 96.3%
Cash and Cash Equivalents 5,510 3.5%
Net Current Assets 339 0.2%
Net Assets 159,059 100.0%
ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held on Wednesday 18 February
2026 at City of London Club, 19 Old Broad Street, London EC2N 1DS at 12 noon.
FURTHER INFORMATION
The Annual Report and Accounts for the year ended 30 September 2025 can be
obtained from the Company's website at www.majedieinvestments.com
(http://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
(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: 2138007QEY9DYONC2723
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