Majedie returns 26.2% following manager appointment

Trust appointed Marylebone Partners as investment manager in January

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Majedie Investments posted strong returns in its first full year results since appointing Marylebone Partners as investment manager.

The investment trust posted a total shareholder return including dividends of 26.2% in the year to 30 September.

Marylebone was appointed investment manager on 25 January.

The trust’s discount narrowed to 18.7% after starting the period at 25.8%. Since then, it has narrowed further to just 3.83%, according to the Association of Investment Companies.

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The new managers have transitioned the trust’s portfolio to a ‘liquid endowment strategy’, which places investments into three main buckets: special investments, external managers, and direct investments.

Special investments, which the trust describes as ‘eclectic opportunities’ with high return potential, are anticipated to make up 20% of the portfolio in time. At present, external managers make up 60% of the portfolio.

Christopher Getley, chair of Majedie Investments, said: “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.”

Dan Higgins, CIO of Marylebone Partners and investment manager at Majedie Investments, added: “We are excited about the prospect of pursuing our distinctive approach for Majedie’s shareholders, especially when a recent transition of the market regime has created so many opportunities for discriminating bottom-up investors.

“Our ambition over the years ahead is to provide Majedie’s shareholders with a dynamic alternative, predominantly invested in liquid underlying assets. Ultimately, a shareholder in Majedie Investments PLC is buying into our people and our process. We believe that more challenging conditions should only highlight the merits of our approach as the fortunes of individual enterprises, sectors, geographic regions, and asset classes diverge.”

A new dividend policy has also been adopted, which sees the trust paying out 0.75% of NAV each quarter.

See also: The AIC: Record year for buybacks as trust boards battle double-digit discounts