UK Income

We seek companies where the free cash flow has the potential to improve and fund sustainable dividend growth.

The UK Income Fund is our concentrated UK equity income fund, managed by Mark Wharrier and Mike Totton. The team seeks to qualify investment ideas with objective numbers; this means analysing valuation, cash flow, profit and loss and balance sheet, both on an historic and a prospective basis.

This quantitative approach, combined with meeting management teams and drawing on the perspective and experience of the wider Majedie team, results in an active pool of ideas. These ideas become investments when they have met three tests, as described below.

Cash Flow

Is the quantum or quality of cash flow for the company likely to improve? Improving cash flow can have multiple drivers; we do not want to limit our opportunity set. This improvement may be driven by greater discipline in a more cyclical sector or the use of technology to reduce capital intensity, for example.

Such opportunities appear in sectors across the market and we seek a broad range of different types of companies which can contribute to the overall return.

Valuation

Is the company’s valuation cheap relative to its industry peers, history or prospects? While a low valuation is no guarantee of success, it is a critical ingredient of an exceptional return. Valuation-biased investing can be fraught with risk – most companies that eventually fail, pass through the high-yield zone before they reach that terminal point. Discipline is required to avoid those companies which do not have the potential to be better businesses over the medium term. The potential to improve return on equity is a key requirement.

We are prepared to hold higher multiple shares if underlying growth prospects are not reflected in the share price.

Balance Sheet

Can the balance sheet support both shareholder income and business investment? Analysing the burden of debt in a company has not been a priority for analysts over the past decade given that the cost of servicing this debt has been so low. We prefer companies that are sensibly geared and have the ability (and desire) to pay this debt down. High debt levels remove management flexibility to make decisions that enhance competitive positioning and drive long-term value. This flexibility is crucial given the ongoing technological challenges all companies currently face, which are creating winners and losers.


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UK Domiciled Fund – LF Majedie Asset Management Investment Fund Company

Document type Share Class Acc/Inc Currency File
Newsletter 2020 06 LF Majedie UK Income Fund Newsletter
Factsheet 2020 06 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 & Supplement LF MAMIFCo Prospectus
Report & Financial Statements LF MAMIFCo Interim Report & Financial Statements to June 2019
Report & Financial Statements MAMIFCo Annual Report & Financial Statements to 31 December 2019
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
Tax Reporting Documentation MAMIIFCo Information for UK Tax Reporting December 2019
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 – Supplement for UK Investors
Report & Financial Statements Interim Report & Financial Statements to June 2019 (Ireland)
Report & Financial Statements Annual Report & Financial Statements to 31 December 2019 (Ireland)
Tax Reporting Documentation MAMIIFCo Information for UK Tax Reporting December 2018
Tax Reporting Documentation MAMIIFCo Information for UK Tax Reporting December 2017
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 19Since Inception^ (P.A.)
(to 31 December 2019)
X Income 18.0 40.2 11.0 4.6 7.3 11.3 -7.8 15.3 12.0
FTSE All-Share Index 12.3 20.8 1.2 1.0 16.8 13.1 -9.5 19.2 9.3
Relative +5.7 +19.4 +9.8 +3.6 -9.4 -1.8 +1.6 -3.9 +2.7

^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 1.1999 down 10 Aug 2020 Noon
X GBP Acc GB00B83QP495 1.7043 down 10 Aug 2020 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 0.877 none 10 Aug 2020 Noon
Z GBP Acc IE00BSTLNK00 1.0748 none 10 Aug 2020 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 0.23 Single Swing 0.10 / 0.50
X GBP Acc GB00B83QP495 0.65 0.65 0.00 0.00 / 0.00 0.23 Single Swing 0.10 / 0.50

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 0.33 Single Swing 0.10 / 0.50
Z GBP Acc IE00BSTLNK00 0.65 0.65 0.00 0.00 / 0.00 0.33 Single Swing 0.10 / 0.50

Charges shown are predicted (calculated at the valuation point on 31 July 2020 and estimated as of 10 August 2020), 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.