Closed-ended fund Majedie Investments has highlighted falling assets at Majedie Asset Management and the underperformance of the asset manager’s UK equity strategies on the same day it swiped the Edinburgh Investment Trust from Mark Barnett.
Majedie Asset Management is the largest holding in the £132.6m investment trust with a 27.7% weighting, while the asset manager’s funds account for the next highest weightings.
Top holdings in Majedie Investments PLC
| Investment | % of total assets |
| Majedie Asset Management Limited | 27.7 |
| Majedie Asset Management Tortoise A | 14.0 |
| Majedie Global Equity A GBP Acc | 12.0 |
| Majedie UK Income A | 7.8 |
| Majedie Asset Mgmt US Equity A GBP Acc | 4.6 |
| Majedie Global Focus A GBP Acc | 4.2 |
| Royal Dutch Shell PLC | 3.4 |
| Bp | 3.1 |
| Tesco PLC | 2.7 |
| Other Assets and Liabilities | 2.4 |
Majedie AUM falls more than £3bn
Chairman David Henderson blamed the write down of Majedie Asset Management by 22.5% to £40.8m for the investment trust’s underperformance in its annual report for the period ending 30 September 2019.
Its net asset value at par fell 9.3% over the year.
The board decided to write down the stake in the fund house due to assets under management falling from £14.1bn to £10.8bn and a reduction in management fees from 1 October.
This figure will be boosted by the £1.1bn addition of the Edinburgh Investment Trust to the Majedie stable, which the board of the closed-ended fund this week announced it was handing to CIO and co-founder James de Uphaugh.
Majedie funds underperform
The investment trust’s report also highlighted underperformance of the UK Equity Segregated Portfolio, the UK Income and the Tortoise funds.
De Uphaugh is co-manager on the third-party version of the Majedie UK Equity, which has £2.6bn in assets, along with Chris Field. The segregated portfolio that is managed pari passu to the Majedie UK Equity fund.
The UK Income fund is managed by Mark Wharrier and Chris Totton and Tortoise, an Irish-domiciled long/short fund, is managed by Matthew Smith and Tom Morris.
The Majedie Global and US Equity funds outperformed their benchmarks, the report said.
Majedie fund performance
| 1m | 3m | 6m | 1yr | 3yr | 5yr | |
| LF Majedie Global Equity | -2.68 | -4.18 | 0.41 | 11.84 | 28.02 | 72.92 |
| LF Majedie Tortoise | -0.46 | 0.24 | -0.53 | -10.03 | -20.55 | -9.64 |
| LF Majedie UK Equity | -0.74 | 0.54 | 1.26 | 6.14 | 5.16 | 26.13 |
| LF Majedie UK Income | -0.01 | 1.72 | 1.41 | 8.81 | 16.12 | 31.58 |
| Majedie Asset Management US Equity | -2.00 | -4.59 | 4.58 | 15.41 | 31.90 | 81.29 |
