Majedie Investments Reports Strong FY 2025 Results with NAV Return of 8.2% and Narrowing Discount

Majedie Investments FY2025: NAV up 8.2%, discount tighter, dividend raised

Majedie Investments PLC has posted another solid year. For the 12 months to 30 September 2025, NAV total return was +8.2%, while the share price delivered a +12.9% total return as the discount narrowed. The quarterly dividend rose 5% to 8.4p per share.

Since appointing Marylebone Partners in January 2023, Majedie has achieved annualised NAV returns of 9.9% and total shareholder returns of 14.2% – in line with its target of CPI+4% over rolling five-year periods. Cost discipline stepped up again, with the ongoing charges figure trimmed to 1.3%.

Key FY2025 numbers investors should know

NAV total return	+8.2% (2024: 21.5%)
Share price total return	+12.9% (2024: 24.1%)
Total dividend per share	8.4p (+5.0% year-on-year)
Discount to NAV at year end	14.0% (2024: 17.4%)
Average discount during year	11.2%
Ongoing charges figure (OCF)	1.3% (2024: 1.4%)
Year’s share price high / low	280.0p / 222.0p
Year’s NAV per share high / low	300.1p / 263.7p
Discount / premium range	22.4% to (4.5)%
Net assets	£159,059,000
Portfolio mix (of total assets)	External Managers 63.1%, Direct Investments 17.0%, Special Investments 16.2%, Cash 3.7%
Debt and liquidity	£20.7m Debenture (7.25%) repaid; replaced with £15m revolving credit facility

What drove returns: external managers did the heavy lifting

NAV growth came mainly from the External Managers sleeve, with both equity-centric and absolute return funds pulling their weight. Direct Investments ended the year flat, while Special Investments added a helpful contribution. A protective overlay hedge detracted.

• External Managers (equity-centric): +608 bps
• External Managers (absolute return): +310 bps
• Direct Investments: -3 bps
• Special Investments: +95 bps
• Overlay hedge: -60 bps

Equity managers: Europe and China specialists stood out

Helikon Long Short Equity Fund (Europe) was the star, contributing +377 bps, with Perseverance DXF Value Feeder Fund (China) at +134 bps. Briarwood Capital and the Japan-Up activist fund added +50 bps and +39 bps respectively. The breadth here matters – these managers operate in distinct niches with low overlap, which helps diversify risk.

Two equity-centric managers – Engaged Capital and Paradigm BioCapital Partners – were the only negative contributors in this bucket.

Absolute return credit: steady and uncorrelated

All six absolute return managers were positive, collectively adding +310 bps. Contrarian Emerging Markets Offshore Fund led with +115 bps, helped by Latin American distressed positions. Silver Point, Millstreet Credit and Context Partners all chipped in. This is the ballast part of the strategy – specialist credit with hedging and senior positioning to keep beta low.

Direct Investments: a mixed bag, overall flat

Winners included the Global X Copper Miners ETF (+99 bps), Weir Group (+53 bps), IMI (+44 bps), Computacenter (+31 bps) and SS&C Technologies (+33 bps). On the flip side, Evolent Health (-106 bps), KBR (-60 bps) and Basic-Fit (-30 bps) hurt – all were sold during the year.

There’s a clear tilt to international mid-caps and away from U.S. mega-cap momentum. That’s consistent with the “rate of change” approach: seeking improving fundamentals where expectations are low.

Special Investments: uranium and engagement-led ideas

Specials added +95 bps. Standouts were Project Uranium (+118 bps), Bank of Cyprus via Project Zeno (+118 bps), Orizon in Brazil (+31 bps), CVS Health via GCM Suggestivist (+23 bps) and Oxford BioMedica (+29 bps). Detractors included FTAI Infrastructure (-94 bps), VF Corporation (-45 bps) and Portillo’s (-93 bps).

Importantly, these are liquid or regularly priced situations with a 12-36 month monetisation aim – closer to “liquid endowment” than traditional private equity.

Costs, fees and balance sheet: trending the right way

The Ongoing Charges Figure fell again to 1.3% (from 1.4% and 1.6% in the two prior years). Following Marylebone’s combination with Brown Advisory, Majedie has agreed lower management fee tiers: 0.8% on market cap up to £150m, 0.675% from £150m to £250m, and 0.6% thereafter (previously 0.9%, 0.75%, 0.65%). That’s a tangible tailwind for compounding.

The £20.7m Debenture at 7.25% matured and was repaid on 31 March 2025, replaced by a £15m revolving credit facility (RCF). The manager does not see structural gearing as necessary to hit CPI+4%, preferring flexible, opportunistic use of the RCF.

How the portfolio is positioned now

Majedie remains diversified across regions and sectors, with a deliberate mid-cap skew (52% mid, 27% small, 21% large). North America is 38%, Europe 34%, and Emerging Markets 13%, with Japan and Asia Pacific at 6% and 7% respectively. Sector exposures are broad, with IT and Industrials both at 20%, Materials at 18% and Health Care at 12%.

Cash was modest at the year end, giving room for manoeuvre without diluting returns. The trust held 39 positions with low performance correlation – a design feature to help smooth the ride.

Why it matters: strategy delivery, discount dynamics and catalysts

Three points stand out. First, delivery: since 2023 the trust has been compounding at or above its CPI+4% ambition on both NAV and share price metrics. That’s the right direction of travel.

Second, cost discipline: OCF down to 1.3% and a lower fee schedule post the Brown Advisory tie-up reduce the structural drag. Over time, that compounds just as surely as returns do.

Third, the discount: it narrowed to 14.0% at year end and briefly moved to par/premium in spring. That shows investor appetite can respond quickly to performance and storytelling. Sustained delivery plus better marketing reach from Brown Advisory could be the recipe for further narrowing.

What could close the discount from here?

• Consistent NAV outperformance vs CPI+4% target.
• Evidence that Brown Advisory scale translates into better manager access and fee terms.
• Further OCF improvements and tight cost control.
• Clear wins from Special Investments monetisations within 12-36 months.

Risks to keep on the radar

• Discount volatility – it averaged 11.2% during the year and finished at 14.0%.
• Direct investments were flat; stock-specific errors can dent progress.
• Hedging cost (-60 bps) reminds us protection isn’t free.
• Macro dislocation cuts both ways, even if the portfolio is built to be low-correlation.

Outlook: disciplined, non-consensus, and patient

The manager is wary of expensive mega-caps and prefers international mid-caps, specialist credit and select real assets like copper and uranium where supply-demand is tight. Asia – notably China and Japan – features via specialist managers, while U.S. exposure is focused on niches such as biotech and software where fundamentals may be improving from a low base.

Currency is largely hedged to Sterling (except for Special Investments and the Global X Copper Miners ETF), which should dampen FX noise in the reported NAV.

My take: steady progress with clear levers for more

This is a good year from Majedie. The portfolio delivered positive NAV, the discount narrowed, the dividend rose, and costs fell. External managers did most of the work, which is fine – that’s the design – but I’d like to see the Direct Investments book contribute more in 2026.

The fee cut and the move from a costly debenture to a flexible RCF are unequivocal positives. If Marylebone’s integration with Brown Advisory brings better access and even sharper terms, that should support both returns and sentiment. The big swing factor remains the discount: keep hitting CPI+4%, show a couple of clean monetisations in Specials, and that 14% gap has room to close.

Diary note

AGM: Wednesday 18 February 2026 at 12.00pm, City of London Club, 19 Old Broad Street, London EC2N 1DS.