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 Majedie Asset Management Limited (MAM) who manage the portfolio across a range of equity strategies.

  • The Company has a material shareholding in MAM, an independent investment boutique that manages £12.4 bn specialising in equities (as at 31 March 2019).

  • 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 is a fund management company specialising in equities with £12.4bn assets under management as at 31 March 2019.

  • MAM has over 60 employees of which 17 are 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 retains a 17.1% shareholding in the company.

  • MAM is included in the Company accounts at its fair value. The fair value is usually assessed and approved twice a year by the Directors following the relevant recommendation by the Audit Committee.  The fair value calculation is formulaic, with the significant input in assessing the price (and hence fair value), being the 3 year average earnings of MAM together with earnings multiples applied to those earnings, and the value of surplus cash held by MAM.

  • The most recent assessment of the fair value in MAM resulted in a value of £52.3m (cum dividend) as at 31 March 2019.

  • Further information on MAM 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:

   

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) Regulations 2008, 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 17 January 2018 and it is proposed it will remain in force until the Annual General Meeting in 2021 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

© Majedie Investments PLC 2019

Registered in England and Wales no. 109305

VAT no 245 8547 34

Authorised and regulated by the Financial Conduct Authority