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Majedie Investments (MAJE) released its interim results for the half year to 31 March 2020 this morning, reporting a fall in NAV over the period of 22.4% and a share price fall of 30.2% over the same period. Over the six months the FTSE All-Share index fell by 22.0% and the MSCI All Country World Index fell by 14.9% in sterling terms.
The board also announced an interim dividend of 4.4p, in line with the company’s 2019 interim dividend, to be paid to shareholders on the register as of the 5 June 2020.
MAJE invests in funds managed by Majedie Asset Management (MAM), alongside holding a 17.2% stake in the asset manager itself. The latter investment has seen an overhaul of its valuation methodology in these results, with the board applying a new formula which it suggests gives a more relevant valuation than the previous methodology, which focused on longer-term historic earnings. As a result, the valuation of the trust’s stake in MAM has fallen from £40.8m as at 30 September 2019 to £30.6m as at 31 March 2020. A full breakdown of this methodology can be seen below.
On the whole, fund performance was a key detractor for the trust. However, during the period in December 2019 MAJE did invest in a newly-launched MAM fund, the International Equity Fund, which outperformed its benchmark by over 8% over the period from launch to 31 March 2020. The Majedie Global Equity Fund outperformed by 1.4% over the interim results period.
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