MAJEDIE INV PLC

Annual Report • Dec 20, 2022

National Storage Mechanism | Additional information

RNS Number : 2371K

Majedie Investments PLC

20 December 2022

MAJEDIE INVESTMENTS PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022

The Directors of Majedie Investments PLC are pleased to announce the Annual Report and Accounts ("Annual Report") for the year ended 30 September 2022. The Annual Report can be obtained from the Company's website at www.majedieinvestments.com or by contacting the Company Secretary on telephone number 07936 332 503.

INVESTMENT OBJECTIVE

The Company's investment objective is to maximise total shareholder return whilst increasing dividends by more than the rate of inflation over the long term.

Highlights	2022	2021
Total shareholder return (including dividends):	-24.9%	37.1%
Net asset value total return (debt at fair value including dividends):	-18.2%	22.5%
Net asset value total return (debt at par including dividends):	-19.8%	20.6%
Total dividends (per share):	10.4p	11.4p
Directors' valuation of investment in Majedie Asset Management Limited:	Sold	£25.2m

YEAR'S SUMMARY

Capital Structure	Note (see below)		2022	2021	%
As at 30 September
Total assets		1	£137.6m	£173.0m	-20.4
Which are attributable to:
Financial liabilities (debt at par value)		2	£20.8m	£20.8m	-23.1
Equity Shareholders Funds			£116.9m	£152.2m
Gearing		3	12.6%	12.3%
Potential Gearing		3	17.8%	13.7%
Total returns (capital growth plus dividends)		4
Net asset value per share (debt at par value)		5	-19.8%	+20.6%
Net asset value per share (debt at fair value)		5	-18.2%	+22.5%
Share price			-24.9%	+37.1%
Capital returns
Net asset value per share (debt at par value)		5	220.6p	287.1p	-23.1
Net asset value per share (debt at fair value)			220.5p	281.4p	-21.7
Share price			163.5p	230.0p	-30.4
Discount of share price to net asset value per share
Debt at par value			27.5%	19.9%
Debt at fair value			27.4%	18.3%
Revenue and dividends
Net revenue available to Equity Shareholders			£2.8m	£5.0m
Net revenue return per share			5.2p	9.4p	-44.7
Total dividends per share			10.4p	11.4p	-8.7
Total administrative expenses and management fees			£1.6m	£1.6m
Ongoing Charges Ratio		6	1.3%	1.2%

Notes:

Alternative Performance Measures (APM) definitions used in the Annual Report are as follows:

1.         Total Assets: Total assets are defined as total assets less current liabilities.

2.         Debt at par or fair value: Par value is the carrying value of the debenture which will equate to the nominal value at maturity. Fair value is the estimated market value the Company would pay (on the relevant reporting date), as a willing buyer, to a debenture holder, as a willing seller, in an arms-length transaction.

3.         Gearing and Potential Gearing: Gearing represents the amount of borrowing that a company has and is calculated using the Association of Investment Companies (AIC) guidance. It is usually expressed as a percentage of equity shareholders' funds and a positive percentage or ratio above one shows the extent of the level of borrowings. Gearing is calculated as borrowings less net current assets to arrive at a net borrowings figure. Potential Gearing excludes cash from the calculation. Details of the calculation for the Company are in note 22.

4.         Total Return: Total returns include any dividends paid as well as capital returns as a result of an increase or decrease in a company's share price or NAV.

5.         Net Asset Value: The Net Asset Value (NAV) is the value of all of the Company's assets less all liabilities. The NAV is usually expressed as an amount per share.

6.         Ongoing Charges Ratio (OCR): Ongoing charges are a measure of the regular ongoing administration costs of running a company, as calculated in accordance with AIC guidance. Further information is shown in the Business Review section of the Strategic Report contained within the full Annual Report.

Year's high/low		2022	2021
Share price	high	243.0p	252.5p
low	160.0p	176.0p
Net asset value - debt at par	high	297.1p	304.2p
low	220.7p	245.0p
Discount - debt at par	high	28.7%	30.0%
low	14.9%	13.3%
Discount - debt at fair value	high	28.5%	27.9%
low	13.4%	11.2%

Ten Year Record

to 30 September 2022

Year End	Total Assets ++ £000	Equity share-holders' Funds £000	NAV Per Share (Debt at par value) Pence	Share Price Pence	Discount %	Earnings Pence	Total Dividend** Pence	Gearing† %	Potential Gearing† %	Ongoing Charges Ratio# %
2013	159,013	125,166	240.5	160.0	33.47	6.80	10.50	21.47	27.04	1.73
2014	167,934	134,061	256.7	229.0	10.79	9.36	7.50	23.39	25.27	1.66
2015	183,708	149,807	281.9	257.3	8.74	9.42	8.00	21.25	22.63	1.88
2016	203,917	169,986	318.1	257.1	19.18	9.25	8.75	18.46	19.96	1.58
2017	216,507	182,544	341.6	281.5	17.59	11.14	9.75	17.09	18.61	1.54
2018	199,151	178,626	334.3	277.5	16.99	12.47	11.00	10.01	11.49	1.33
2019	175,621	155,074	292.3	256.0	12.42	12.92	11.40	11.50	13.25	1.34
2020	152,153	131,333	247.7	176.5	28.74	9.11	11.40	10.97	15.85	1.34
2021	172,951	152,153	287.1	230.0	19.89	9.41	11.40	12.26	13.67	1.25
2022	137,647	116,887	220.6	163.5	27.50	5.20	10.40	12.65	17.80	1.34

Notes:

** Dividends disclosed represent dividends that relate to the Company's financial year. Under UK adopted International Accounting Standards dividends are not accrued until paid or approved. Total dividends include special dividends paid, if any.

† Calculated in accordance with AIC guidance.

# As of May 2012, under AIC guidance, Ongoing Charges Ratio replaced previous cost ratios.

++ Total Assets are defined as total assets less current liabilities.

STRATEGIC REPORT

CHAIRMAN'S STATEMENT

The year ended 30 September 2022 was very disappointing for shareholders as the NAV at par and fair value (net asset value with debt at par and fair value) fell by 19.8% and 18.2% respectively on a total return basis. The share price fell by 24.9% also on a total return basis. By way of comparison, the FTSE All-Share Index fell by 4.0% and the MSCI All Country Index fell by 4.2% in sterling terms and in both cases, on a total return basis.

The sale of Majedie Asset Management Limited (MAM) to Liontrust Asset Management PLC (Liontrust) announced in December 2021 was completed on 1 April 2022. In May 2022 Majedie Investments PLC (the Company) announced that the Board was considering the Company's investment objective together with the range of assets that should be considered for inclusion in the Company's portfolio, as well as its own responsibilities for portfolio allocation.

On 10 November 2022 the Company announced that, following an extensive review of the Company's investment management arrangements, it had entered into a conditional agreement to appoint Marylebone Partners LLP (Marylebone) as the Company's investment manager. Following its recent approval by the FCA, a Shareholder Resolution to implement the new investment policy will be voted on by shareholders at the General Meeting on 25 January 2023.

The Board believes the change in investment manager and the adoption of the new investment policy will provide the following benefits to shareholders:

·      Potential for differentiated and repeatable investment performance, enabled by a transition to a liquid endowment model. The model is a long-term strategy that focusses on fundamental investments and incorporates multi-asset return sources that are realisable within a 2-3 year time horizon. It will not feature private equity, venture capital, infrastructure or property. Over the three years to 30 September 2022, Marylebone representative track record has delivered net annualised performance in GBP of +8.4%, some 4% ahead of the U.K. Consumer Price Index.

·      A differentiated return profile, complementing shareholders' other investments. Given the opportunity across its three core activities, Marylebone believes it should be possible to deliver capital appreciation, whilst funding a dividend out of a combination of underlying income and capital growth.

·      Alignment of interests and participation in the future growth of Marylebone. The Company will receive, for no consideration, an interest in Marylebone entitling it to 7.5% of residual profits and capital.

·      The Board is aware of investors (including parties connected to Marylebone) who have expressed an interest in becoming shareholders. The Board and Marylebone believe this may help narrow the discount to Net Asset Value at which the Company's shares trade currently, whilst potentially improving liquidity and paving the way for future growth.

·      Cost mitigation. Marylebone will reduce the management fee payable by Majedie by 50% for a period of twelve months and make a significant ongoing contribution to the cost of marketing the Company.

Results and Dividends

In the twelve months to 30 September 2022 the Company had a capital loss of £31.9m which includes

£12.0m resulting from the decline in value of the Liontrust shares received as part of the MAM transaction.

Total income received from investments was £3.9m compared to £6.1m in the twelve months to 30 September 2021. The dividend received from MAM was £1.2m, compared to £4.0m the previous year and the income from MAM Funds was £2.7m compared to £2.1m in 2021. Total administration costs and management fees and finance costs were £1.7m and £1.5m respectively.

The net revenue return after tax decreased from £5.0m in the year to 30 September 2021 to £2.8m in the year to 30 September 2022. The interim dividend was maintained at 4.4p and the Board is recommending a final dividend of 4.2p and a special dividend of 1.8p. The reduction in the final dividend reflects the reduction in net revenue and the special dividend reflects the new dividend policy of paying circa 0.75% of NAV quarterly.

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.

Investment Performance

The investment performance of the funds in which the Company is invested was disappointing both on an absolute and relative basis with the notable exception of the Tortoise Fund which increased by 8.6%. The CEO's report which follows gives further detail on the reasons behind this.

As a result of the sale of MAM the Company received a combination of shares in Liontrust and cash which was valued at £22.4m on 7 December 2021, the date the transaction with Liontrust was announced, compared with the valuation of the Company's holding in MAM at 30 September 2021 of £25.2m. Subsequent to the announcement the share price of Liontrust declined and at 30 September 2022 the transaction value had reduced by a further £9.2m to £13.2m including dividends received from Liontrust, a loss for the year of £12.0m.

The Company was able to negotiate the removal of the lock up on selling Liontrust shares in July 2022. Subsequently, it has sold 108,000 Liontrust shares for an average price of 908p per share. At 30 September 2022 the Company had a holding of 539,207 shares in Liontrust.

Notwithstanding the writedowns in the stake in MAM in recent years the Company has benefitted from providing seed capital to MAM in 2002 both in terms of capital growth and receipt of dividends. The Board would like to thank the team for their hard work and dedication in growing the business and wishes them well in their new role as the Global Fundamental Team at Liontrust.

Investment Management Arrangements

As described earlier the Company has announced it has entered into a conditional agreement to appoint Marylebone as its investment manager. Founded in 2013 Marylebone is an independent firm, currently managing US $400m for professional and institutional clients which includes charities, foundations, family offices and high net worth individuals.

With equities at its heart, Marylebone's long-term fundamental approach is aligned with Majedie's ethos. Their proposition met the Board's criteria for an investment manager who could deliver differentiated investment outcomes and bring a new and relevant proposition to the investment trust sector, whilst developing the Company's culture and history.

The Board selected Marylebone for its ability to identify differentiated investment opportunities and reputation for protecting and growing the wealth of its clients. Marylebone's investment approach includes three core strategies, comprising special investments, allocations to specialist funds managed by third parties and a focused portfolio of listed equities. Marylebone sources investments through a global network, which its principals have built over nearly three decades at industry leading firms. The Board believes it will be increasingly important to identify differentiated sources of performance from the large and growing set of less researched opportunities that are available within this wider investment mandate, in addition to those in other major asset classes.

In order to proceed with the appointment of Marylebone, the Company intends to amend its investment policy at a General Meeting. This will enable Majedie to pursue a high-conviction, long-term approach that is unconstrained by geographic limitations or any formal benchmark. Following adoption of the new investment strategy, the Company will target annualised total returns (net of fees and expenses, in GBP) of at least 4% above the UK Consumer Price Index, measured over rolling five-year periods. The target total return will include an annual dividend, paid quarterly.

Each quarterly dividend payment is initially expected to comprise 0.75% of the relevant quarter-end Net Asset Value, leading to an annual dividend of approximately 3% of Net Asset Value. Further details are included in an accompanying circular for General Meeting.

Marketing

The Company normally conducts marketing through face-to-face meetings together with research from Kepler to targeted wealth managers. The review of the Company's investment management arrangements has curtailed such meetings, but following the announcement a number of such meetings have taken place both virtually and in person. It is intended that this will continue once the new managers are in place. The Company also uses doceo, a web portal that provides financial information and video presentations to retail investors on Investment Companies. There is currently a video presentation by William Barlow on the appointment of Marylebone and an overview from Dan Higgins, CIO of Marylebone on doceo via the link https://doceo.tv/funds/majedie-investments/.

Outlook

The previous twelve months have been painful for investors, as all asset classes with the exception of

commodities have fallen. The realisation that inflation was not transitory and that authorities were behind the curve caused Central Banks, led by the US, to raise interest rates aggressively. This was exacerbated by the Ukraine conflict which put significant pressure on commodity prices. After a decade of ultra-loose monetary policy following the financial crisis and COVID, the change in policy was a shock for investors. Bond rates rose significantly and equity markets sold off and there was significant rotation away from growth stocks.

The Board will retain the Company's exposure to markets until the shareholders have approved the proposed changes to the Company's investment management arrangements because the equity valuations had approached attractive levels at the year end. There is evidence that inflation is peaking as the supply side shocks from COVID are easing and commodity prices have appeared to have peaked.

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. The multi asset approach that will be pursued uses the Investment Company structure to add value and provide differentiated returns over the long term. The Board has consistently stated that it wishes to grow the Company for the benefit of all shareholders and has already seen significant investment from new investors since the announcement in November. Over time with good investment performance the Board is confident that the discount will narrow and new shares will be issued.

Arrangements for the AGM

The AGM will be held at the City of London Club, 19 Old Broad Street, London EC2N 1DS at 12.00pm on Wednesday 25 January 2023. Dan Higgins, CIO of Marylebone, will present the new investment strategy. I very much look forward to welcoming shareholders in person after the last two years meetings have been restricted.

Christopher Getley

Chairman

19 December 2022

CHIEF EXECUTIVE'S REPORT

During the year under review the Company's assets were allocated at the discretion of the Board between four investment strategies managed by Liontrust. The Company has no overall benchmark; rather each fund has its own benchmark. The monthly factsheets of the relevant Liontrust funds are available on the Company's website, as are the monthly factsheets of the Company which show the allocation between the funds and the top thirty holdings on a look through basis. The Company's total assets at 30 September 2022 were £137.6m.

The Company's 17.6% stake in MAM was realised in April 2022, as part of the purchase of MAM by Liontrust for a mixture of cash and shares in Liontrust, the removal of a lock up clause on the Liontrust shares was successfully negotiated in July and the Company has since sold 108,000 Liontrust shares. The proceeds have been invested in the Liontrust Global Fund and Liontrust International Fund.

Asset Allocation at 30 September 2022	Value £000	% of Total Assets
UK Equity Segregated Portfolio	55,862	40.5
Global Equity Fund	39,610	28.8
International Equity Fund	11,081	8.0
Tortoise Fund	23,668	17.2
Liontrust	3,936	2.9
Net cash/realisation fund*	3,490	2.6
Total Assets	137,647	100.0

*Net cash and realisation fund does not include cash held in the UK Equity Segregated Portfolio or any Liontrust funds.

MAM/Liontrust

Following the sale of MAM to Liontrust the Company received shares in Liontrust and cash. At 30 September having sold 108,000 shares in Liontrust for £1.0m, the remaining shares were valued at £3.9m. The Company also received a dividend from MAM of £1.2m, a special dividend from MAM of £6.5m, a final cash distribution of £0.4m and a dividend from Liontrust of £0.3m. The valuation of the consideration that was received from the transaction in cash and shares at 30 September 2022 was £13.2m (inclusive of the Liontrust dividend) compared to the valuation of MAM at 30 September 2021 of £25.2m. The Company places no value on the potential deferred payment that is dependent on the Liontrust Global Fundamental team's performance and their AUM growth which are not expected to be met.

Liontrust/MAM Performance

It is disappointing that the funds underperformed their respective benchmarks in the twelve months to 30 September 2022 with the exception of the Tortoise Fund. This fund has been a cornerstone of the Company's allocation to provide protection in turbulent markets and a provider of differentiated returns. In such a volatile year the fund has been a shining light. The Global and International Funds, whilst having a difficult year, have provided strong relative and absolute returns since the Company invested in them.

	12 months to 30 September 2022			Since MI invested
% Fund return	% Benchmark return	% Relative performance	% Fund return	% Benchmark return	% Relative performance
UK Equity Segregated	(14.7)	(4.0)	(10.7)	20.0	41.3	(21.3)
Global Equity Fund	(10.0)	(4.2)	(5.8)	138.2	130.1	8.1
International Equity Fund	(17.4)	(9.4)	(8.0)	16.0	5.1	10.9
Tortoise Fund	8.6			26.0
MAM/Liontrust	(47.3)

Development of Net Asset Value

The chart below outlines the change in the Company's NAV (debt at par) over the year to 30 September 2022. In aggregate the NAV has decreased by £35.3m, comprised of net investment losses at the Liontrust/MAM Funds of £14.1m, a loss on the investment in MAM/Liontrust of £12.0m (after dividends received from MAM), expenses and finance costs of £3.2m and dividends paid to shareholders of £6.0m.

NAV 30.09.21	£152.2m
UK Equity Segregated Portfolio	(£9.2m)
Tortoise Fund	£1.8m
Global Equity Fund	(£4.4m)
International Equity Fund	(£2.3m)
MAM/Liontrust	(£12.0m)
Admin Costs & Other	(£1.6m)
Finance Costs	(£1.6m)
Share Buybacks	Nil
Dividend Paid	(£6.0m)
NAV 30.09.22	£116.9m

* MAM Funds comprise the UK Income Fund, Global Equity Fund, International Equity Fund, US Equity Fund and Tortoise Fund.

UK Equity Segregated Portfolio

The UK Equity Fund launched in March 2003. Its objective is to produce a total return in excess of the FTSE All-Share Index after costs, over any five year period, through a diversified portfolio of predominantly UK Equities with the flexibility to invest up to 20% in shares listed outside the UK. The fund incorporates a dedicated investment in smaller companies. The Company's assets are invested in a segregated portfolio that is managed pari passu to the UK Equity Fund and since the Company invested in the portfolio to 30 September 2022 the portfolio has returned 20.0% net of fees compared to the benchmark return of 41.3%. In the year to 30 September 2022, the UK Equity Segregated Portfolio returned -14.7% net of fees which is an underperformance of 10.7% against its benchmark.

The most significant positive and negative sector contributors to the relative performance of the UK Equity Segregated Portfolio for the twelve months to 30 September 2022, in %

Real Estate	0.73	Underweight
Financials	0.32	Underweight
Telecommunications	0.06	Underweight
Utilities	0
Industrials	-0.43	Overweight
Health Care	-0.72	Underweight
Energy	-0.90	Underweight
Basic Materials	-1.07	Underweight
Technology	-1.14	Overweight
Consumer Discretionary	-2.47	Overweight
Consumer Staples	-2.71	Underweight

The table below shows most significant positive and negative stock contributors to the relative performance of the UK Equity Segregated Portfolio for the year to 30 September 2022, in %

Prudential	0.55	Underweight
Serco	0.39	Overweight
Scottish Mortgage Investment Trust	0.34	Underweight
Flutter Entertainment	0.28	Underweight
Compass	0.28	Overweight
Glencore	-0.90	Underweight
BP	-0.95	Underweight
Fevertree Drinks	-1.23	Overweight
Ascential	-1.29	Overweight
UK Smaller Companies	-2.17	Overweight

The principal overweight and underweight sector positions of the UK Equity Segregated Portfolio at 30 September 2022 relative to the FTSE All-Share Index, in %

Industrials	15.1	Overweight
Consumer Discretionary	6.6	Overweight
Technology	5.2	Overweight
Healthcare	-1.0	Underweight
Telecommunications	-1.1	Underweight
Utilities	-1.8	Underweight
Real Estate	-2.7	Underweight
Energy	-3.4	Underweight
Basic Materials	-5.0	Underweight
Consumer Staples	-7.0	Underweight
Financials	-7.3	Underweight

The table below shows the principal overweight and underweight positions of the UK Equity Segregated Portfolio at 30 September 2022 relative to the FTSE All-Share Index, in %

RSGroup	2.7	Overweight
NatWest	2.7	Overweight
AVEVA	2.7	Overweight
3i	2.1	Overweight
Serco	1.8	Overweight
HSBC	-2.6	Underweight
Glencore	-2.9	Underweight
British American Tobacco	-3.4	Underweight
BP	-3.8	Underweight
Diageo	-4.0	Underweight

The Global Equity Fund

The Global Equity Fund was launched in June 2014 and its objective is to produce a total return in excess of the MSCI All Country World Index after costs over any five year period through investment in a diversified portfolio of global equities. Since inception to 30 September 2022 the Global Equity Fund has returned 138.2% net of fees for the sterling share class, which represents an outperformance of 7.9% against its benchmark. In the year to 30 September 2022 the Global Equity Fund returned -10.0% net of fees which represents an underperformance of 5.8%.

The most significant positive and negative sector contributors were to the relative performance of the Global Equity Fund for twelve months to 30 September 2022, in %

Materials	1.13	Overweight
Real Estate	0.04	Underweight
Financials	0.03	Underweight
Industrials	-0.09	Overweight
Information Technology	-0.12	Underweight
Utilities	-0.40	Underweight
Consumer Discretionary	-0.57	Overweight
Consumer Staples	-1.01	Underweight
Energy	-1.08	Underweight
Health Care	-1.26	Overweight
Communication Services	-1.51	Overweight

The table below shows most significant positive and negative stock contributors to the relative performance of the Global Equity Fund for the year to 30 September 2022, in %

Sociedad Quimica y Minera de Chile	0.99	Overweight
Will Scot Mobile Mini	0.56	Overweight
Elevance Health	0.53	Overweight
Ionis Pharmaceuticals	0.43	Overweight
Centene	0.32	Overweight
M3	-0.55	Overweight
Frontdoor	-0.55	Overweight
Sea	-0.58	Overweight
Apple	-0.66	Underweight
Vertiv	-0.75	Overweight

The principal overweight and underweight sector positions of the Global Equity Fund at 30 September 2022 relative to the MSCI All Country Index, in %

Consumer Discretionary	6.0	Overweight
Health Care	5.5	Overweight
Communication Services	5.3	Overweight
Industrials	2.1	Overweight
Materials	1.6	Overweight
Real Estate	-2.7	Underweight
Utilities	-3.1	Underweight
Consumer Staples	-3.9	Underweight
Information Technology	-4.0	Underweight
Energy	-4.3	Underweight
Financials	-5.9	Underweight

The table below shows the principal overweight and underweight positions of the Global Equity Fund at 30 September 2022 relative to the MSCI All Country Index, in %

Electronic Arts	2.8	Overweight
Fiserv	2.6	Overweight
Royal KPN	2.0	Overweight
L3 Harris Technologies	2.0	Overweight
Will Scot Mobile Mini	1.8	Overweight
Exon Mobil Corporation	-0.7	Underweight
Johnson & Johnson	-0.8	Underweight
United Health	-0.9	Underweight
Tesla	-1.4	Underweight
Apple	-4.3	Underweight

The International Equity Fund

The International Equity Fund was launched in December 2019 and its objective is to produce a total return in excess of the MSCI All Country World Index ex US after costs over any period of five years. It is a high conviction portfolio which captures developed and emerging market opportunities and can invest up to a maximum of 10% in US equities. Since inception the International Equity Fund has returned 16.0% net of fees for the sterling share class, which represents an outperformance of 10.9% against it benchmark. In the year to 30 September 2022 the International Equity Fund returned -17.4% net of fees which represents an underperformance of 8.0%.

The most significant positive and negative sector contributors to relative performance of the International Equity Fund for the twelve months to 30 September 2022, in %

Materials	3.23	Overweight
Industrials	0.67	Underweight
Consumer Discretionary	0.21	Overweight
Real Estate	0.11	Underweight
Utilities	-0.26	Underweight
Information Technology	-0.50	Overweight
Energy	-0.95	Underweight
Financials	-1.53	Underweight
Consumer Staples	-1.67	Underweight
Communication Services	-2.44	Overweight
Health Care	-3.10	Overweight

The table below shows most significant positive and negative stock contributors to the relative performance of the International Equity Fund for the year to 30 September 2022, in %

Sociedad Quimica y Minera de Chile	2.58	Overweight
Novo Nordisk	0.97	Overweight
Ionis Pharmaceuticals	0.91	Overweight
Credicorp	0.79	Overweight
Anglo American	0.75	Overweight
Fevertree Drinks	-0.96	Overweight
Ambu	-1.09	Overweight
NAVER	-1.14	Overweight
M3	-1.31	Overweight
Sea	-1.72	Overweight

The principal overweight and underweight sector positions of the International Equity Fund at 30 September 2022 relative to the MSCI All Country Index ex US, in %

Health Care	13.1	Overweight
Information Technology	6.4	Overweight
Consumer Services	5.9	Overweight
Communication Discretionary	5.0	Overweight
Materials	4.0	Overweight
Real Estate	-2.4	Underweight
Utilities	-3.4	Underweight
Industrials	-3.6	Underweight
Energy	-6.2	Underweight
Consumer Staples	-8.3	Underweight
Financials	-13.1	Underweight

The table below shows the principal overweight and underweight positions of the International Equity Fund at 30 September 2022 relative to the MSCI All Country Index ex US, in %

Prosus	4.3	Overweight
Novo Nordisk	4.2	Overweight
MercadoLibre	4.2	Overweight
Sociedad Quimica y Minera de Chile	4.1	Overweight
Samsung SDI	4.0	Overweight
ASML	-0.9	Underweight
Shell	-1.0	Underweight
Tencent	-1.1	Underweight
Roche	-1.2	Underweight
Nestle	-1.6	Underweight

The Tortoise Fund

The Tortoise Fund is a global absolute return fund which was launched in August 2007. Its objective is to achieve positive absolute returns in all market conditions, through investment primarily in long and synthetic short positions in equities over rolling three-year periods, with less volatility than a conventional long only equity fund. Since inception the Tortoise Fund has returned 26% net of fees. In the year to 30 September 2022 the Tortoise Fund returned 8.6% net of fees.

The table below shows most significant positive and negative stock contributors to the relative performance of the Tortoise Fund for the year to 30 September 2022, in %

Futures	3.53	Short
Health Care	2.41	Long
Energy	1.83	Long
Financials	1.25	Long
Materials	1.04	Long
Real Estate	0.50	Long
Utilities	0.10	Long
Communication Services	0.03	Long
Information Technology	-0.04	Long
Consumer Staples	-0.13	Long
Industrials	-0.73	Long
Consumer Discretionary	-2.28	Long

The table below shows most significant positive and negative stock contributors to the relative performance of the Tortoise Fund for the year to 30 September 2022, in %

Cardinal Health	0.90	Long
Shell	0.85	Long
Coinbase Global	0.85	Short
BAE Systems	0.68	Long
Gold Fields Limited	0.67	Long
Compagnie de Saint-Gobain	-0.64	Long
easyJet	-0.74	Long
Rolls-Royce	-0.82	Long
Intel	-0.89	Long
THG	-0.96	Long

The principal long and short sector positions of the Tortoise Fund at 30 September 2022, in %

Industrials	16.7	Long
Financials	11.0	Long
Consumer Staples	9.6	Long
Health Care	8.5	Long
Materials	7.7	Long
Information Technology	6.9	Long
Communication Services	6.5	Long
Consumer Discretionary	6.3	Long
Energy	5.5	Long
Utilities	2.2	Long
Real Esate	1.0	Long
Futures	-39.2	Short

The table below shows the principal long and short stock positions of the Tortoise Fund at 30 September 2022, in %

Shell	2.3	Long
Haleon	2.2	Long
TotalEnergies	2.2	Long
Publicis Groupe	2.1	Long
Compagnie de Saint-Gobain	2.1	Long
Union Pacific	-1.0	Short

Geographic and Sector Exposure

	Europe ex UK	UK	Emerging Markets	Asia Pacific	North America	Cash	Total
Basic Materials		1.4	1.3		2.2		4.9
Consumer Goods	0.2	4.6	0.1	0.3	1.6		6.8
Consumer Services	1.6	7.0	2.1	0.6	5.5		16.8
Financials	1.2	7.0	0.7	0.5	2.2		11.6
Real Estate					0.2		0.2
Health Care	4.1	4.5	0.5	0.7	4.9		14.7
Industrials	3.3	10.2	0.1	0.7	4.3		18.6
Oil & Gas	0.8	3.9			0.2		4.9
Technology	0.4	3.1	4.1	0.2	4.8		12.6
Telecommunications	1.5	0.6		0.8			2.9
Utilities	0.3	0.8					1.1
Cash						4.9	4.9
Total	13.4	43.1	8.9	3.8	25.9	4.9	100.0
Futures*					(7.1)

* The Tortoise Fund has short futures positions on the S&P 500 and NASDAQ 100 indices.

The assets analysed above are the net exposure of the UK Equity Segregated Portfolio, Global Equity Fund, International Equity Fund and the Tortoise Fund. The Tortoise Fund, an absolute return fund invests through equities, CFDs for short positions and futures. The net exposure is shown in the table. The aggregate of the funds represents 94.7% of the Company's total assets.

Exposures are classified by the stock exchange on which the underlying equity is listed and by the relevant FTSE sector classification.

The Liontrust funds have all performed strongly since the year end, both in absolute and relative terms. The Tortoise Fund, in particular, has risen by 9.7%. The Board intends to retain the current exposure until the General Meeting on 25 January 2023. If shareholders approve the appointment of Marylebone it is anticipated that the capital will be deployed relatively quickly into the new investment strategy, although the Special Investments part of the portfolio, will take longer to be fully invested.

Thirty Largest Holdings at 30 September 2022

	Value £000		% of Total Assets
Shell Plc	5,102		3.7
Liontrust Asset Management Limited	3,936		2.9
AstraZeneca PLC	2,565		1.9
NatWest Group PLC	2,247		1.6
Unilever PLC	2,004		1.5
Anglo American PLC	1,711		1.2
RS Group plc	1,616		1.2
Microsoft Corporation	1,539		1.1
AVEVA Group plc	1,512		1.1
Royal KPN NV	1,509		1.1
Thales SA	1,493		1.1
3i Group plc	1,470		1.1
Tesco PLC	1,443		1.0
Barrick Gold Corporation	1,379		1.0
Compass Group PLC	1,320		1.0
Ashtead Group plc	1,313		1.0
Novo Nordisk A/S	1,303		0.9
RELX PLC	1,256		0.9
Standard Chartered PLC	1,252		0.9
Amazon.com, Inc.	1,245		0.9
BAE Systems PLC	1,199		0.9
Novartis AG	1,176		0.9
Sociedad Quimica y Minera de Chile S.A.	1,138		0.8
MercadoLibre, Inc.	1,133		0.8
L3 Harris Technologies, Inc.	1,129		0.8
Electronic Arts Inc.	1,129		0.8
Samsung SDI Co., Ltd	1,093		0.8
Fiserv, Inc.	1,081		0.8
Taiwan Semiconductor Manufacturing Co., Ltd.	1,077		0.8
Weir Group PLC	1,075		0.8
	48,345		35.2

Outlook

Markets have bounced from the lows in September as investors' expectations, particularly in the bond market, are beginning to discount the peak of inflation. Central Banks have raised interest rates aggressively and the distortions of the pandemic are easing, particularly in the global supply chain. For equities, earnings expectations have yet to catch up with slowing economic growth forecasts into 2023, but looking into the next five years, the economic background will be different from that which prevailed in the last decade of quantitative easing, low inflation and stagnant nominal GDP Growth. Interest rates will be higher offering an alternative to equities for investors and long duration growth stocks will be less attractive. 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.

J William Barlow

CEO

19 December 2022

Final Dividend and Special Dividend

Subject to shareholder approval at the AGM on 25 January 2023, a final dividend of 4.2p per share and a special dividend of 1.8p per share will be paid on 27 January 2023 to shareholders on the register at 13 January 2023. The ex-dividend date will be 12 January 2023.

Annual General Meeting

The Company's Annual General Meeting will be held on Wednesday 25 January 2023 at City of London Club, 19 Old Broad Street, London EC2N 1DS.

Further Information

The Annual Report and Accounts for the year ended 30 September 2022 can be obtained from the Company's website at www.majedieinvestments.com.

A copy of the Annual Report and Accounts will be submitted shortly to the National Storage Mechanism ("NSM") and will be available for inspection at the NSM, which is situated at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism, in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

ENQUIRIES

If you have any enquiries regarding this announcement, please contact Mr William Barlow on 020 7382 8185.

END

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of, this announcement.

LEI: 2138007QEY9DYONC2723

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