OVERVIEW

 
 

INTRODUCTION

BRIEF HISTORY

 

The original business involving the ownership of rubber estates in Malaysia was established in 1910. Majedie was the name of one of the rubber plantations. Over time the business evolved into an investment company and obtained investment trust status on 1 October 1985.

  • Majedie Investment PLC (the Company) is a listed public limited company whose shares trade on the London Stock Exchange.

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

  • The Company’s investment portfolio is managed by Liontrust Asset Management PLC (Liontrust) who manage the portfolio across a range of equity strategies.

  • The Company has a shareholding in Liontrust, as a result of Liontrust acquiring Majedie Asset Management Limited in April 2022. Liontrust manages £38.7bn specialising in equities (as at 1 April 2022).

  • There is no overall benchmark, rather each fund that the Company invests in has its own specific benchmark.

  • The Company offers the opportunity to invest in a diversified, global growth equity portfolio.

BOARD OF DIRECTORS

* Independent non-executive

 
 

MAJEDIE ASSET MANAGEMENT

CORPORATE GOVERNANCE

  • MAM was a fund management company specialising in equities.

  • MAM had over 60 employees of which 17 were in the investment team.

  • The business was launched in 2002 with capital backing and financial and administrative assistance from Majedie Investments PLC.

  • The founders had all previously worked together at Mercury Asset Management.

  • The Company had a 17.6% shareholding in the company.

  • On the 7th December 2021 Liontrust Asset Management PLC announced that it had entered into an agreement to acquire MAM. The initial consideration for the transaction will be made up of a mixture of cash and shares issued by Liontrust with an additional deferred consideration to potentially be payable in 2025. The transaction completed on 1 April 2022.

  • The total consideration for the Company's investment in MAM is £22.4m which is comprised of £7.7m in the form of dividends and cash and £14.7m in shares of Liontrust (based on the share price of Liontrust shares on 7 December 2021). There is further deferreds consideration of cash and shares of up to £5.6m which may potentially be due three years after completion and dependent on future investment performance and growth in assets under management.

  • The transaction is being reflected in the Company's daily NAV (using the relevant current value for Liontrust shares) and currently no deferred consideration has been accrued.

  • Further information on Liontrust is available on their website here.

The directors are mindful of the importance of corporate governance matters. The following statement sets out in detail how the Company addresses the requirements of the AIC and UK Corporate Governance Code. 

   

Corporate Governance

 

The four Board Committees form an important part of the Company’s corporate governance structure. The relevant terms of reference for each committee are provided below, as well as the roles and responsibilities of the Chairman and Senior Independent Director:

   

Roles and Responsibilities of the Chairman and Senior Independent Director

 

Audit Committee

   

Remuneration Committee

   

Nomination Committee

   

Management Engagement Committee

Each year the annual report contains a report on Corporate Governance which deals with issues similar to those covered in the above Corporate Governance Statement including details of any specific issues relevant to the year in question.

 

Directors’ Remuneration Policy    

In accordance with the requirements of Schedule 8 of the Large and Medium Sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013, as amended, the Company’s approved directors’ remuneration policy is shown below. This was approved by shareholders at the Company’s Annual General Meeting on 20 January 2021 and it is proposed it will remain in force until the Annual General Meeting in 2024 at which time a further resolution will be proposed. Any changes prior to that date are required to be approved by shareholders by ordinary resolution.

   

Directors’ Remuneration Policy​

Remuneration Disclosures