Company Announcements

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.

*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.

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.

* 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 %

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 %

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 %

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 %

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 %

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 %

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

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 %

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 %

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 %

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 %

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 %

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 %

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 %

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

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

Geographic and Sector Exposure

* 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

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