This is a bit galling from the Liontrust announcement this morning:
"It is a year since we acquired Majedie Asset Management with a final purchase price of £41 million2. Over the financial year, the investment team who joined from Majedie generated performance fees of £12 million, out of a total of at least £17 million for Liontrust as a whole." |
Living up to your name then Steve! I wont be looking for too much from the March factsheet. I agree with you, we have effectively just IPO'd and the track record now needs to be established. I'm encouraged that the manager has bent over backwards to make it a good deal for holder |
February factsheet says the transition of the portfolio is almost complete so the March factsheet will give us the real portfolio to assess. Discount is currently 14% which is about right for a fund of funds (the percentage of direct equities is higher than usual though), it will take a few years of good performance to get the share price up to NAV and unless the discount widens a little I won't be buying yet. |
Very good presentation from the new manager including recognition of the point I made above that they need to sell their proposition better. Early days with the transition only just having happened but they talk a good story |
I can't imagine there are many that had even heard of Marylebone or their strategy before the MAJE deal was announced. One of the things that concerns me is their apparent lack of success in commercialising their proposition |
For those that wanted to access the Marylebone strategy, MAJE is a very cheap way in |
Discount reduced to c.15% from 12 month average c. 22%. Switch of manager has had the desired effect, possibly a little too quickly |
200p. Been there, done that. Where to next. |
Nav is 257.6p.
This magnificient trust continues to perform. |
So we have a new hand on the tiller. I'm expecting to see the discount narrow now |
Being well bid at 195p. There's a buyer in the market. |
There are still cheap trusts around despite the strong rally since Jan 1 |
nav 250.22p and ftse still going up |
 hxxps://citywire.com/investment-trust-insider
Majedie to shun ‘alt’ assets with new manager Marylebone
By Jamie Colvin 11 Jan, 2023 at 12:33
1
Comment
Majedie to shun ‘alt’ assets with new manager Marylebone
Majedie Investment (MAJE), the struggling global investment trust backed by the Barlow family, has said its investment strategy under newly appointed Marylebone Partners will avoid private equity, venture capital, property and infrastructure in a bid to overturn ongoing poor performance.
Christopher Getley, chair of the £103m multi-asset trust, which had a ‘very disappointing’ 12 months to the end of September from its investments in funds at Majedie Asset Management (MAM), believes Marylebone will offer a range of benefits, including the potential for ‘differentiated’ and ‘repeatable217; performance.
Marylebone has a reputation for protecting and growing wealth, he said, returning 8.4% over the 12-month period. This looks appealing to MAJE investors as the trust’s shareholder returns slumped 24.9%. The MSCI World index fell 4.2% by comparison.
The investment portfolio fell 20%, with the global absolute return Tortoise fund its sole outperformer over the period out of seven MAM funds.
Other benefits under Marylebone, which uses a ‘liquid endowment’ model, include a 7.5% stake in the manager and a 50% management fee reduction for the first 12 months. Marylebone will also contribute to marketing costs.
Its $400m multi-asset strategy has three parts: ‘eclectic̵7; special investments; specialist third-party funds; and a focused pool of listed equities. The overall approach resembles that of other leading London-listed multi-asset global funds, such as the Rothschild-backed RIT Capital Partners (RCP) and Cayzer family-backed Caledonia Investments (CLDN)
Getley noted the move would give investors an opportunity to buy shares, which could narrow the 22% discount to net asset value (NAV) the shares currently trade at.
MAJE unveiled Marylebone in November, several months after Majedie was acquired by Liontrust, and will put the move to shareholders at the annual general meeting on 25 January. If approved, the company will target annualised total returns of at least 4% above the UK’s consumer prices index, measured over rolling five-year periods. The new strategy will be unconstrained by a benchmark or by geography.
A quarterly dividend payment is initially expected to comprise 0.75% of the relevant quarter-end NAV, leading to an annual dividend of about 3%.
‘Careful stock selection based on good fundamental analysis of equities and credit opportunities should offer shareholders good returns and the board believes that Marylebone is well placed to deliver from this outlook,’ Barlow said.
At present, the marketing campaign consists of video presentations by MAJE’s CEO William Barlow and an overview by Marylebone’s chief investment officer, Dan Higgins.
‘Turbulence in markets has greatly expanded the opportunity set available to Marylebone to pursue a liquid endowment strategy, in particular in equities and credit. Illiquid strategies that were favoured by low interest rates no longer offer an attractive risk/reward for investors,’ Getley said.
The former MAM funds at Liontrust have performed strongly since the financial year-end, with the Tortoise fund rising 9.7% to 20 December.
MAJE’s performance over the last 10 years falls well short of its benchmark, with NAV falling 18.7% over five years, compared with the benchmark’s 50.6% rise. Over 10 years, NAV has lifted 77.5% versus the index’s 209.3%, according to Numis Securities data. |
Net assets value is now up to 246.7p so I'm in for more at 193p. That's a discount of more than 21% thanks. Remember this goes ex the 6p final dividend next week.
The final dividend will be payable on 27 January 2023 to shareholders on the register at 13 January 2023 and the Company's shares go ex-dividend on 12 January 2023. |
Watch the short video provided |
In the recent announcement they say the new portfolio:
'will not feature private equity, venture capital, infrastructure or property', which seems clear.
But they are not so clear about what they actually will invest in:
'special investments, allocations to specialist funds managed by third parties and a focused portfolio of listed equities'.
It will be run as a 'liquid endowment', I take this to mean a mix of equities and high quality (Government) debt.
Does anybody have more information on the proposed composition of the portfolio? |
the Board is recommending a final dividend of 4.2p and a special dividend of 1.8p.
I'll take that thanks |
No I see no reason to be nervous, two days later than last year and I note the financial calendar on the website just states "December" |
Anyone else getting nervous? The finals have never been this late. |
That would be illogical. They should rebase immediately to the 3% of NAV target and if there were any spare cash buybacks would make more sense than dividends with a 50p discount to NAV |
The final results could be this week. The big question is will they pay the usual bumper final dividend? |
A new 3% shareholder, Christ Church, Oxford with 3.71% |
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