UK Income - Majedie

This should be a fruitful time for income investors.

The UK Income Fund is our concentrated UK equity income fund, managed by Chris Field and supported by the larger Majedie UK equities team.

Chris is an unusual breed of fund manager. His philosophy and approach have stood the test of time over his 30 years of managing UK equities. It is steeped in common-sense. He has no inbuilt style biases. Instead, he seeks opportunities across the market spectrum, giving him the flexibility to add value throughout the economic and market cycle. Over time he has selected a number of unloved ‘value’ stocks, such as Marshalls and Rentokil, and remained invested after they had transitioned to a growth footing, despite their share prices multiplying and valuations rising accordingly. Identifying and subsequently building sizeable stakes at IPO in companies such as Hargreaves Lansdown and Fevertree (which he still holds), is about knowing a good company when he sees one and when to back his conviction.

What is his approach? Step one is to find the “valuation gap”, which entails in-depth company and industry research and analysis to find businesses whose share price is jarringly below their real, industrial or long-term worth. In a world fraught with competitive pressures, every business needs to have a credible roadmap to continued success.  Combine good management with a sound business strategy and the investment opportunity starts to emerge. The current valuation of the company is scrutinised in a market context and against the dynamics of, and its strategic positioning within, its industry. Cash generation, competitive position and capital allocation policy are critical features of the analysis undertaken.

In a broader market sense, since the Global Financial Crisis, a number of key themes have dominated Chris’s investment thinking. First, economic growth has remained below trend for some time and has been a challenge for central banks wanting to stimulate economic activity. This has meant a change in emphasis in his portfolios towards companies that can demonstrate growth that is undervalued and under appreciated by other investors.  Second, the onslaught of disruption brought about by new business models and new industries facilitated by technology, which has wreaked havoc across multiple industries, presenting both risk and opportunity. Third, companies with strong market positions and strong balance sheets in many industries are improving their competitive positions against weaker peers that are more strategically challenged and perhaps overly burdened with debt. This is corporate Darwinism. The global pandemic has only served to accelerate the latter two trends. Consequently, there are opportunities to capture alpha by investing in companies with outstanding management teams that are superbly navigating today’s fast moving and ever-changing commercial world and will emerge as outright winners. Furthermore, importantly there is also a focus on avoiding those companies that are simply too challenged against this ever-shifting backdrop.

The pandemic has given many companies the opportunity to reset dividends and as a result the FTSE All-Share Index, the Fund’s benchmark, now offers an historically low yield.  Chris now sees  an opportunity to invest in companies with a valuation gap where dividend income growth will be a feature as profitability rebuilds and cash generation increases balance sheet strength, together with companies that have scope to surprise positively in terms of both sales and profits, given their strong Darwinian attributes. This should be a fruitful time for equity income investors.


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UK Domiciled Fund – LF Majedie Asset Management Investment Fund Company

Document type Share Class Acc/Inc Currency File
Newsletter 2021 Q1 LF Majedie UK Income Fund Newsletter
Factsheet 2021 05 LF Majedie UK Income Fund Factsheet
KIID X Acc GBP LF Majedie UK Income Fund Class X Acc KIID
KIID X Inc GBP LF Majedie UK Income Fund Class X Inc KIID
Prospectus LF MAMIFCo Prospectus
Report & Financial Statements LF MAMIFCo Interim Report & Financial Statements to June 2020
Report & Financial Statements LF MAMIFCo Annual Report & Financial Statements to 31 December 2020
Application Form LF Majedie Application Form

Irish Domiciled Fund – Majedie Asset Management (International) Investment Fund Company PLC

Document type Share Class Acc/Inc Currency File
KIID Z Acc GBP UK Income Fund Z Acc KIID
KIID Z Inc GBP UK Income Fund Z Inc KIID
Prospectus & Supplement MAMIIFCo Prospectus
Prospectus & Supplement MAMIIFCo Prospectus – UK Income Fund Supplement
Prospectus & Supplement MAMIIFCo Prospectus – for German Investors
Prospectus & Supplement MAMIIFCo Prospectus – Supplement for Singapore Investors
Report & Financial Statements Interim Report & Financial Statements to June 2020 (Ireland)
Report & Financial Statements Annual Report & Financial Statements to 31 December 2020 (Ireland)
Tax Reporting Documentation MAMIIFCo Information for UK Tax Reporting December 2019
Tax Reporting Documentation MAMIIFCo Information for UK Tax Reporting December 2018
Application Form UK Income Fund Application Form (Ireland)

LF Majedie UK Income Fund Class X Inc (net of fees)

FTSE All-Share Index

Discrete years (%)
12 months ending
Dec 12Dec 13Dec 14Dec 15Dec 16Dec 17Dec 18Dec 19Dec 20Since Inception^ (P.A.)
(to 31 December 2020)
X Income 18.0 40.2 11.0 4.6 7.3 11.3 -7.8 15.3 -14.0 8.8
FTSE All-Share Index 12.3 20.8 1.2 1.0 16.8 13.1 -9.5 19.2 -9.8 7.0
Relative +5.7 +19.4 +9.8 +3.6 -9.4 -1.8 +1.6 -3.9 -4.2 +1.8

^19 December 2011

Source: Majedie, GBP, net of fees.

Other share classes are available. Past performance of the X share class prior to its launch on 13 September 2012 refers to the A share class.
Past performance is not necessarily a guide to future performance. The return on investments may increase or decrease as a result of currency fluctuations.

UK Domiciled Fund – LF Majedie Asset Management Investment Fund Company

Share Class Currency Acc/Inc ISIN Price Price swing Pricing date Valuation point
X GBP Inc GB00B7XCNP79 1.4119 none 24 Jun 2021 Noon
X GBP Acc GB00B83QP495 2.0457 none 24 Jun 2021 Noon

Irish Domiciled Fund – Majedie Asset Management (International) Investment Fund Company PLC

Share Class Currency Acc/Inc ISIN Price Price swing Pricing date Valuation point
Z GBP Inc IE00BSTLNL17 1.0343 none 24 Jun 2021 Noon
Z GBP Acc IE00BSTLNK00 1.2889 none 24 Jun 2021 Noon

The prices shown are historic (calculated at the valuation point on the date shown) and are indicative only. Transactions will be effected at the price next calculated after receipt of a valid dealing instruction.

Share Class: For further information, please refer to the Prospectus and/or KIIDs
Acc / Inc: With accumulation shares, income from the Fund’s investments will be included in the value of your shares rather than being paid out via a dividend. With income shares, income from the Fund’s investments will be paid out via a dividend.

UK Domiciled Fund – LF Majedie Asset Management Investment Fund Company

Share Class Currency Acc/Inc ISIN OCF (%) AMC (%) ACC (%) One-off entry/exit cost (%) Transaction costs (%) Performance fees (%) Pricing basis Dilution Rates (%)
X GBP Inc GB00B7XCNP79 0.65 0.65 0.00 0.00 / 0.00 0.20 Single Swing 0.10 / 0.55
X GBP Acc GB00B83QP495 0.65 0.65 0.00 0.00 / 0.00 0.20 Single Swing 0.10 / 0.55

Irish Domiciled Fund – Majedie Asset Management (International) Investment Fund Company PLC

Share Class Currency Acc/Inc ISIN OCF (%) AMC (%) ACC (%) One-off entry/exit cost (%) Transaction costs (%) Performance fees (%) Pricing basis Dilution Rates (%)
Z GBP Inc IE00BSTLNL17 0.65 0.65 0.00 0.00 / 0.00 0.35 Single Swing 0.10 / 0.55
Z GBP Acc IE00BSTLNK00 0.65 0.65 0.00 0.00 / 0.00 0.35 Single Swing 0.10 / 0.55

Charges shown are predicted (calculated at the valuation point on 31 May 2021 and estimated as of 03 June 2021), are for indicative purposes only and subject to change.

Share Class: For further information, please refer to the Prospectus and/or KIIDs
Acc / Inc: With accumulation shares, income from the Fund’s investments will be included in the value of your shares rather than being paid out via a dividend. With income shares, income from the Fund’s investments will be paid out via a dividend.
OCF (%): Ongoing Charges Figure. This is the annual cost that is incurred through the regular operation of the Fund. The figure is normally based the actual costs of the previous year, but for new funds or a new share class of existing funds, the figure provided may be an estimate based on expected costs. These charges are deducted from the daily quoted price of the Fund. The two components of the OCF, Annual Management Charge (AMC) and Admin Cost Charges (ACC) are described separately. The OCF does not include Entry Charges, Exit Charges or Transaction Costs (such as taxes and execution) which are quoted separately in this table. Research Costs are paid for by Majedie.
AMC (%): Annual Management Charge. This is the annual charge received by Majedie Asset Management Limited.
ACC (%): Admin Cost Charge. This is the annual charge for all other administrative costs incurred in the regular operation of the Fund, including for example daily fund accounting, safe custody of assets, transfer agency services, trustee & depositary oversight, regulatory fees, external audit and where applicable, hedged share class administration fees. Where Majedie Asset Management has elected to pay certain costs, the ACC quotes only those costs that will be paid by the Fund. The ACC is the difference between the OCF and the AMC.
Entry / Exit Charge: No entry or exit fees are charged for any fund.
Transaction costs (%): This figure includes explicit costs (taxes such as stamp duty‚ exchange fees‚ and commission paid to brokers for execution)‚ an estimate of implicit costs or “slippage” (using intraday arrival prices)‚ and – where relevant – an offset from any anti-dilution mechanisms applied. These ex-ante costs are projected using the actual costs incurred over the most recent 3 year period‚ annualised (but excluding commissions paid for research pre-2018 which are now absorbed by Majedie).
Performance fee (%): The Fund does not charge a performance fee.
Pricing Basis: The Fund operates on a single swinging pricing basis. Prices are swung up / down whenever there are net inflows / outflows of £250,000 or higher for the UK domiciled Fund, or £50,000 or higher for the Irish domiciled Fund, on any dealing day.  Please see the prospectus for further information.
Dilution Rates (%): These are the current bid/offer rates applied to prices when swung down/up.  Dilution compensates the Fund for transaction taxes, trade execution costs and market spread incurred by the Fund in actioning trades resulting from investor subscriptions or redemptions.   Dilution rates are reviewed regularly and therefore subject to change.

This information is not intended to be an offer or solicitation of an offer to buy or sell securities. All rights in the referenced index are vested in the index owner and/or its licensors, who do not accept any liability for any errors or omissions in the index or any underlying data.

Fund: For further information, please refer to the Prospectus and/or KIIDs
Notes
For further information, please refer to the Prospectus and/or KIIDs.
More details on costs and charges can be found in the European MiFID Template (EMT) – Excel or the European MiFID Template (EMT) – Pipe Delimited files.