Majedie Investments has appointed Marylebone Partners as its investment manager, having previously run the strategy in-house.
Marylebone Partners, which currently manages $400m in assets, will build a “bespoke portfolio” for Majedie.
The board said Marylebone was selected due to its “ability to identify differentiated investment opportunities”. The firm’s investment approach includes three core strategies, which are eclectic special investments, allocations to specialist funds managed by third parties and a focused portfolio of listed equities.
In an announcement to the London stock exchange, the £146m investment trust confirmed the appointment as part of a “strategic review”, which also sees the adoption of a new investment policy to pursue a “high conviction, long term approach” that is unconstrained by any formal benchmark or geographical limitations, subject to shareholder approval.
In a difficult September, Majedie’s net asset value dropped 6.1%, while its share price dropped 10.2%. However, the board said it is aware of parties interested in becoming shareholders which may help to reduce the current 26.1% discount to net asset value.
New investment policy
The trust has set a performance target to achieve net annualised returns of at least 4% above UK CPI over rolling five-year periods as part of its new investment policy.
It also aims to return an annual dividend of around 3%, to be paid to shareholders quarterly.
Over the three years to 30 September, Marylebone Partners delivered a net annualised performance of 8.4%, ahead of UK CPI.
Christopher Getley, Majedie chair, said: “Marylebone’s appointment will allow all shareholders to benefit from their successful track record in investment in a differentiated, but relatively liquid multi-asset portfolio and also position the company to grow over time.
“The company’s portfolio will bring together Marylebone Partners’ best opportunities in listed equities as well as the large and growing universe of less researched assets where skilled investors are able to add more value.”
Dan Higgins, founder of Marylebone Partners, said: “We are extremely excited to be appointed as the investment manager of an investment trust with such a long and distinguished history. The listed and close-ended format will enable us to take advantage of the full range of investments within our scope, giving a new client base access to these opportunities.
“After the recent dislocations caused by economic and geopolitical concerns, we see greater opportunity than for many years. We look forward to working with the Board and will work hard to deliver for Majedie’s shareholders.”
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