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Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Majedie Investments. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
MAJE has seen a complete overhaul of its strategy under a new manager…
Overview

The board of Majedie Investments (LON:MAJE) undertook a review of the investment management arrangements, assisted by an external advisor, that resulted in the appointment of Marylebone Partners as the Investment Manager in January 2023. The strategy is focussed on offering investors a liquid endowment-like investment solution, which is unique in the investment trust universe and follows MAJE’s long-term fundamental investment focus.

As discussed in Portfolio, the strategy remains focussed on equities. However, the unrestricted approach allows the lead portfolio manager, Dan Higgins, to invest across multiple asset classes at his discretion. The approach remains focussed on the bottom-up, fundamental characteristics of each investment and the attractiveness of its valuations, rather than being driven by any macro-outlook or stylistic biases. Portfolio construction is centred around the team’s unique long-term target allocations to special investments, specialist external fund managers and public equities.

As discussed in Management, Dan works alongside fellow partners at Marylebone, Robert Elliott and Olivia Macdonald, whose combined experiences equip them with the required skill sets and access to an ideas network. This should offer a solution that has, historically, been hard to access for mass market investors. The trust has moved from the AIC Global Equity Income sector to the AIC Flexible Investment sector.

The long-term Performance of an equivalent strategy run by Marylebone Partners compares well to other multi-asset trusts within the sector. The evolution of the strategy will see MAJE target annualised total returns of CPI +4% over five-year rolling periods, which includes an annual Dividend calculated at 3% of NAV. As discussed in Charges, there is a management fee holiday for the first six months, with a new tiered management fee calculated in relation to MAJE’s market cap to align the managers’ interests with the trust’s shareholders, thereafter.

Analyst's View

We believe that Marylebone Partners’ historical Performance track record suggests the strategy is likely to appeal to longer-term investors. The strategy’s diversified nature is expected to offer greater consistency throughout the market cycle, which is similar to what is provided by certain alternative multi-asset trusts within the Flexible sector. The Management team’s unrestricted approach and significant experience managing such strategies provides them with a unique network of ideas, which we believe should provide investors with confidence around their unrestricted multi-asset approach and tactical allocation to special investments and boutique external fund managers, which we discuss in Portfolio. We believe that this strategic evolution means MAJE should offer unique and complementary exposure to the typically generic core equity solutions.

We believe the 3% of NAV annual Dividend payment and substantive revenue reserves may provide a useful and dependable source of income during periods of elevated market uncertainty or lacklustre growth. However, it is likely to be lower than under the previous strategy, with income making up less of the trust’s total return. In our view, the new real return target of CPI+4% is an attractive objective and we believe that, if the managers can deliver good performance in line with their objectives, there is scope for the current Discount of 15.5% to narrow closer to that of other multi-asset strategies within the sector that trade close to par. We also believe that the new management fee, being charged on market capitalisation, creates an incentive for the manager to see the discount narrow.

Bull

  • Liquid endowment-like model, offering a genuinely differentiated portfolio
  • Wide discount to NAV
  • Competitive long-term performance track record of the investment manager

Bear

  • Allocations to special investments and external fund managers may make KID RIY high versus peers’
  • Income likely to be lower in the future
  • Fundamentally new strategy yet to demonstrate a track record of performance in this vehicle
Continue to Portfolio

Fund History

02 Jan 2024 Results analysis: Majedie Investments
MAJE’s highly differentiated portfolio offers investors a diversified source of returns…
19 Apr 2023 Are we nearly there yet?
We look at which trusts have done best year to date, and ask where there may be value…
31 Mar 2023 ISA Event: And now for something completely different
Everything you wanted to know about alternatives (but were afraid to ask)...
27 Mar 2023 Fund Analysis
MAJE has seen a complete overhaul of its strategy under a new manager…
29 Mar 2023 Majedie Investments plc - A new start for a true original
Dan Higgins & Olivia MacDonald
Rewatch this webinar from our month-long online series 'A feast of ideas for your ISA' hosted by the team at Kepler Trust Intelligence throughout March...
Watch Recording
17 Nov 2021 In good hands
Majedie Investments offers a potentially attractive solution for investors seeking a respite from the stresses of managing their own money in turbulent times…
01 Sep 2021 A bold take on global equities
Global equity investing is usually defined by either a ‘growth’ or ‘value’ approach but there are funds that blend these styles, offering a distinctive global equity investment…
08 Jul 2021 London Calling
UK equities represent a ‘once in a generation’ opportunity for investors according to the managers who joined us to discuss the outlook at our event last week…
16 Jun 2021 A better class of travel*
Sharing many features of a traditional family office, investment trusts offer ordinary investors a cost-effective solution to managing family wealth...
27 Apr 2021 The benefits of flexibility in a topsy turvy year
As markets fell into disarray over the course of 2020, the case for investing in a variety of styles was demonstrated. Trusts like Majedie Investments offer a broad perspective in a single package…
22 Apr 2021 Fund Analysis
MAJE’s performance has been strong in the reflationary rally, but its discount remains wide…..
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
04 Mar 2021 Slides and Audio: Majedie Investments
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 02 March...
28 Jan 2021 Slow and steady wins the race
We take a look at MAJE, a trust which has seen a significant turnaround in performance and has the potential to continue delivering income and growth in 2021…
10 Dec 2020 Results analysis: Majedie Investments plc
We examine the potential for MAJE if sentiment toward the UK improves in 2021…
25 Nov 2020 Britannia Redux?
UK equities have been despised for almost five years and could offer extreme rebound potential…
03 Sep 2020 Fund Analysis
Improving performance in 2020 and a historically wide discount that values the holding in MAM at zero leave MAJE in an interesting position.....
03 Sep 2020 Eating their cooking
Our analysis suggests that asset management businesses owned by the trusts they manage are on less demanding valuations than their listed equivalents...
16 Jul 2020 A turning point for investors
2020 could mark a turning point in the fortunes of traditional value versus growth investing...
27 May 2020 Results analysis: Majedie Investments
Majedie Investments (MAJE) released its interim results for the half year to 31 March 2020 this morning, including a major overhaul of its valuation methodology for funds business Majedie Asset Management…
09 Oct 2019 Backing Britain: Tapping two UK funds for the price of one
Majedie Investments gives investors access to two funds offering distinct exposure to the UK - both with clear positions with respect to Brexit...
12 Aug 2019 Fund Analysis
Majedie Investments (MAM) offers a solid income combined with a diversified allocation to a range of funds....
29 May 2019 A vintage blend
How Majedie Investments takes the heavy lifting out of diversification...
06 Feb 2019 Income for the long haul
With 'ISA season' looming we identify investment trusts which offer long-term, dependable income streams for yield-hungry investors...
06 Dec 2018 Results analysis: Majedie Investments
A brief review of Majedie investments 30 September final results, announced 5 December 2018...
22 Aug 2018 Reassuringly expensive?
Some investment trust premiums have been stretched to eye-watering levels. Have investors been enjoying themselves in the sun too much? We try to rationalise current levels and suggest alternatives...
23 Jul 2018 Fund Analysis
Majedie Investments aims to maximise total return whilst increasing dividends by more than the rate of inflation over the long term...
23 Mar 2018 Fund Analysis
Majedie Investments is a long-established and very broadly diversified investment trust which aims to maximise total return whilst increasing dividends...
07 Dec 2017 Fund Analysis
RESULTS: Dividends up by around 11% last year, and currently yields 3.5% - more than any other trust in its sector - but the discount remains wide...
01 Jun 2017 Fund Analysis
A very broadly diversified global equities trust which aims to maximise total return whilst increasing dividends ahead of inflation over the long term...
View all

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