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Majedie Investments PLC
Interim Management Statement
The Board of Majedie Investments PLC announces its first Interim Management
Statement for the year ending 30 September 2012, as required by the UK Listing
Authority's Disclosure and Transparency Rules. This Statement is in respect of
the period from 1 October 2011.
Description
Majedie Investments PLC is a investment trust listed on the London Stock
Exchange. The original company was established in 1910 and owned several rubber
estates in Malaysia. It evolved into an investment company and obtained
investment trust status in 1985.
The Company owns a significant stake in the asset management boutique, Majedie
Asset Management Limited, and in 2010, it established a new asset management
business, Javelin Capital LLP, to manage the Company's assets as well as
external funds.
Investment Objective
To maximise total shareholder return whilst increasing dividends by more than
the rate of inflation over the long term.
Key Facts at 31 December 2011
Share Price 161.4p
NAV per Share (debt at par) 225.9p
Discount 28.60%
Dividend Yield (excluding 6.50%
special)
Five Year Dividend Growth 13.2%
Net Gearing 10.36%
Net Assets £117.6m
Market Capitalisation £84.8m
Total Assets £151.4m
Sector Global Growth
Ticker MAJE.LN
% Performance to 31 December 2011
Total Return 3 Months to Calendar Year Fiscal Year
31 December 2011 2011 2011
Net Asset Value 5.3% -0.9% -0.4%
Share Price 15.7% -15.5% -23.2%
Core Portfolio 8.5% -3.8% -4.9%
Balance Sheet at 31 December 2011
£ Mil % Notes
Total
Assets
Core Portfolio 68.2 45% Long-only equity portfolio invested in
mainstream global stocks with a focus on
dividends. Its benchmark is 70% FTSE
All-Share & 30% FTSE World ex. UK Index
(sterling) on a total return basis.
Javelin Capital 20.3 14% An absolute return, long-short global
Global Equity equity fund.
Strategies Fund
Non Core Portfolio 21.8 14% Investments in private equity and listed
equities with low liquidity.
Total Equities 110.3 73%
Majedie Asset 38.7 26% 30% stake in an unlisted asset management
Management company.
Javelin Capital LLP 1.7 1% 75% stake in an unlisted asset management
partnership.
Other Assets 0.7 0%
Total Assets 151.4 100%
Debentures (33.8)
Net Assets 117.6
Top Ten Investments at 31 December 2011
Majedie Asset Management 25.7%
Javelin Capital Global Equity 13.5%
Strategies Fund
Royal Dutch Shell 3.4%
BP 2.4%
HSBC 2.4%
Vodafone 2.4%
GlaxoSmithKline 1.9%
BHP Billiton 1.4%
Rio Tinto 1.3%
Vostok Energy 1.3%
52.9%
Figures are % of total assets
Regional Allocation in Core Portfolio at 31 December 2011
UK 69.5%
North America 15.5%
Europe ex UK 9.2%
Rest of World 3.7%
Cash 2.1%
Sector Allocation in Core Portfolio at 31 December 2011
Basic Materials 10%
Consumer Goods 7%
Consumer Services 10%
Equity Investment 0%
Instruments
Financials 17%
Health Care 8%
Industrials 12%
Oil & Gas 18%
Technology 1%
Telecommunications 10%
Utilities 3%
Cash 2%
Material Events or transactions
Equity markets performed relatively robustly in the final quarter of 2011
following a sharp fall in the early autumn. Equities initially moved higher in
anticipation that firm action on Greece, bank recapitalisations and the new
leveraged European Financial Stability Facility (EFSF) would emerge from the 27
October EU summit. However, these hopes were not to be justified as the Greek
government fell following the proposal and subsequent withdrawal of a
referendum on the bailout package. Italian debt also came under substantial
pressure resulting in the resignation of Silvio Berlsuconi and the appointment
of Mario Monti. Towards the end of November some better news for markets
emerged in the co-ordinated action by the Federal Reserve and five other
central banks to ease dollar funding pressures on Eurozone banks. China also
eased its banking reserving requirements for the first time in three years and
evidence began to emerge late in the quarter of a pick-up in US growth.
However, little of major substance emerged from the 9 December EU summit
although equities managed a late-December rally, albeit in thin Xmas volumes.
In 4Q 2010, the Company's NAV and share price returned 5.3% and 15.7%
respectively. The Core Portfolio returned 8.5% with its performance mainly
driven by commodity, oil and pharmaceutical stocks. The investment in the
Javelin Capital Global Equity Strategies Fund was overall broadly neutral in
sterling terms, although December was a rather weak month.
Majedie Asset Management (MAM) paid a final 2011 dividend to Majedie
Investments PLC (MI) of £1.32 million in December 2011, whilst MI itself raised
£324,000 through the sale of two small parcels of MAM stock to the MAM Employee
Benefit Trust.
Javelin Capital, having been recapitalised over the summer, continued to
progress the development of a second fund focussed on emerging markets to
complement the QIF absolute return fund launched in September 2010.
Negotiations to place the fund on the investment platform of a major investment
bank have now proved successful and the launch date of this new UCITS fund
occurred in January 2012.
There have been no other material events or transactions that have taken place
between 31 December 2011 and the date of publication of this statement.
Disclaimer
This Interim Management Statement has been issued by Majedie Investments PLC on
18 January 2012. The news, information, and data in this statement should not
be deemed as a financial promotion or recommendation. Majedie Investments PLC
is not authorised to give financial advice
END
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