11th Dec 2019 09:59
(Alliance News) - Majedie Investments PLC's annual net assets fall on an underperformance of its largest fund asset and the revaluation of its asset manager.
At September 30, the investment company's NAV per share stood at 292.3 pence, 13% lower than the 334.3p recorded at the same point the year prior.
Majedie's net asset value also slipped 13% over the 12 month period, falling to GBP155.1 million from GBP178.6 million.
The investment company declared a total dividend of 11.40p, 3.6% more than the 11.0p payout the year before.
Majedies' NAV total return in the period, with debt at fair value, was negative 9.9%. With debt at par value, the NAV total return was negative 9.3%.
In the same period, the FTSE All Share Index and MSCI World Index rose by 2.7% and 7.3%, respectively.
Majedie blamed its poor performance on four main reasons: the reduction in value in its investment manager, Majedie Asset Management, in which it holds a 17% stake; the underperformance of MAM UK Equity Segregated Portfolio and MAM UK Income Fund; its UK-centric assets being hurt by Brexit; and the poor performance of the MAM Tortoise Fund.
"The company had a capital loss for the twelve months of GBP23.4 million, which reflects a write down in the carrying value of Majedie Asset Management to GBP40.8 million and underperformance of the MAM UK Equity Segregated Portfolio, the MAM UK Income Fund and the MAM Tortoise Fund," Chair David Henderson said.
The MAM UK Equity Segregated Portfolio makes up 31% of Majedie Investments' total assets, while the UK Income Fund makes up 8.1% and the Tortoise Fund accounts for 14%.
The UK Equity Segregated Fund lost 3.0% during the period, the UK Income Fund shed 4.4%, while the Tortoise Fund lost 9.9%.
The revaluation of Majedie's investment in its asset manager took GBP13.2 million off its NAV.
Shares in Majedie Investments were down 0.2% in London on Wednesday at 248.39 pence each.
By Paul McGowan; [email protected]
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