Majedie Invs.PLC Interim Management Statement
TIDMMAJE
Majedie Investments PLC
Interim Management Statement
The Board of Majedie Investments PLC announces its first Interim Management
Statement for the year ending 30 September 2013, as required by the UK Listing
Authority's Disclosure and Transparency Rules. This Statement is in respect of
the period from 1 October 2012.
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 and administer 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 2012
Share Price 159.3p
NAV per Share (debt at par) 219.5p
Discount 27.4%
Dividend Yield (excluding 6.6%
special)
Five Year Dividend Growth 10.9%
Net Gearing 22.6%
Net Assets GBP114.2m
Market Capitalisation GBP83.7m
Total Assets GBP148.1m
Sector Global Growth
Ticker MAJE.LN
% Performance to 31 December 2012
Total Return 3 Months to Calendar Year Fiscal Year
31 December 2012
2012 2012
Net Asset Value 1.8% 2.0% 6.9%
Share Price 2.3% 5.7% 19.6%
Core Portfolio 3.6% 13.2% 18.7%
Balance Sheet at 31 December 2012
GBP Mil % Notes
Total
Assets
Core Portfolio 70.2 47% 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 31.9 22% An absolute return, long-short global
Emerging Markets equity fund.
Alpha Fund
Non Core Portfolio 5.1 2% Investments in private equity and listed
equities with low liquidity.
Total Equities 107.2 72%
Majedie Asset 38.4 26% Near 30% stake in an unlisted asset
Management management company.
Javelin Capital LLP 2.7 2% 75% stake in an unlisted asset management
partnership.
Other Assets (0.2) 0%
Total Assets 148.1 100%
Debentures (33.8)
Net Assets 114.2
Top Ten Investments at 31 December 2012
Majedie Asset Management 25.9%
Javelin Capital Emerging Markets Alpha 21.5%
Fund
Royal Dutch Shell 2.8%
BP 2.1%
HSBC 2.0%
Vodafone 1.7%
GlaxoSmithKline 1.6%
Rio Tinto 1.5%
Vostok Energy 1.3%
BHP Billiton 1.2%
61.6%
Figures are % of total assets
Regional Allocation in Core Portfolio at 31 December 2012
UK 64%
North America 16%
Europe ex UK 8%
Rest of World 7%
Cash 5%
Sector Allocation in Core Portfolio at 31 December 2012
Basic Materials 11%
Consumer Goods 8%
Consumer Services 10%
Equity Investment 0%
Instruments
Financials 19%
Health Care 7%
Industrials 12%
Oil & Gas 15%
Technology 2%
Telecommunications 6%
Utilities 5%
Cash 5%
Material Events or transactions
Equity markets continued the rally that began in June following the Greek
elections and the renewed efforts by European politicians and bankers to
support the ailing Euro. Employment and housing data from the US showed a mild
improvement consistent with a gradual pick-up in economic activity whilst
Chinese growth also showed renewed signs of life following a slack period
earlier in the year. A decisive election in Japan promised action on both the
currency and debt levels to which markets responded by a sharp sell-off in the
Yen. Bond markets in countries such as Greece, Portugal and Spain all rallied
strongly carrying equity markets with them. In the UK, employment data
continued to reflect a somewhat better economic picture than GDP data, although
the distortions caused by the Jubilee holidays and Olympic Games may have
masked an underlying picture of a slight improvement in economic activity in
the second half of the year. UK equities trended higher along with other global
markets although most progress was made in the mid cap and small cap areas of
the market in the final quarter. Mining stocks moved sharply higher as a result
of the better news from China after a dismal period in the first half of 2012;
this also reflected a general rotation in the market away from defensive
sectors such as Pharmaceuticals, Telecoms and Integrated Oil& Gas towards more
economically sensitive areas such as Financials, Insurance and Industrials,
clearly in the anticipation of renewed global growth coming through in 2013. At
the end of the year, markets stuttered briefly over fears that the US would
fall off its `fiscal cliff' through a logjam in Congress but at the last minute
an agreement was reached to stave off this eventuality. Further problems loom
at the end of February, however, over the need to reconcile the current debt
ceiling with the current scheduled expenditure programmes so a further round of
anxiety ahead of these negotiations must be anticipated.
In 4Q 2012, the Company's NAV and share price returned 1.8% and 2.3%
respectively. The Core Portfolio returned 3.6% with its performance mainly
driven by a recovery in the mining sector and a rally in Banks and Industrials.
The investment in the UCITS Javelin Capital Emerging Markets Alpha Fund was
down by 1.99% over the quarter.
Majedie Asset Management (MAM) paid a final 2012 dividend to the Company of GBP
1.13 million in December 2012, whilst the Company itself raised GBP686,000
through the sale of MAM stock to the MAM Employee Benefit Trust.
The Company consolidated its investment in the former QIF fund, which was
redeemed in September 2012, into the new UCITS Javelin Capital Emerging Markets
Alpha fund in the autumn.
There have been no other material events or transactions that have taken place
between 31 December 2012 and the date of publication of this statement.
Disclaimer
This Interim Management Statement has been issued by Majedie Investments PLC on
16January 2013. 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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