Majedie UK Income & UK Equity Funds - added to the Wealth 150
Heather Ferguson | Wed 21 January 2015
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The Majedie UK Income and Majedie UK Equity funds have been added to the Wealth 150 list of our favourite funds across the major sectors.
Majedie Asset Management is an investment boutique founded in 2002. Traditionally they have focused on managing money for institutional investors, so are not well known to retail investors. They have grown steadily over the last decade and have an experienced and stable fund management team who have worked together for many years.
While both funds invest for the most part in companies listed in the UK, the Majedie UK Equity Fund has a focus on capital growth whereas the Majedie UK Income fund aims to maintain an attractive income.
Majedie UK Equity Fund
The Majedie UK Equity Fund is managed by a team of five (Chris Field, Matthew Smith, Adam Parker, Richard Staveley and James de Uphaugh), with each manager responsible for their own portion of the portfolio.
Each manager has their own particular investment style, intended to complement that of the other team members. By combining each manager's best ideas the aim is to generate a portfolio capable of performing well in a variety of economic and market conditions, although of course this is not guaranteed. This results in a diversified fund of around 250 stocks. The managers are also able to invest up to 20% of the fund's value overseas. The fund managers have the flexibility to invest in higher risk emerging markets if they see fit.
Percentage growth of the Majedie UK Equity Fund since launch
Past performance is not a guide to future returns. Source: Lipper IM* to 02/01/2015
The managers have an impressive track record of capturing growth in a rising market, while they were also able to shelter investors' assets better than their peers through the financial crisis. Since launch in July 2003, the fund has returned 291.8% compared to 157.0%* for the IMA UK All Companies sector.
The fund currently has a bias to telecommunications and consumer services with Orange, Vodafone and Marks and Spencer all featuring in the top 10 holdings. Our analysis suggests much of the value added by the managers has been achieved through successful stocking picking within the consumer services and financials sectors.
The managers expect this year's general election to cause some turbulence in the stock market and will attempt to take advantage of any short term slump in equity prices.
Majedie UK Income Fund
Backed by a strong UK equity team, the Majedie UK Income Fund is managed by Chris Reid and Yuri Khodjamirian. It is a more concentrated portfolio than the Majedie UK Equity Fund consisting of around 60 stocks. This will allow each holding to have a significant impact on performance although this is a higher risk approach.
As the fund is designed to produce an income, it has a large exposure to higher yielding stocks. The managers are happy to move the portfolio between different company sizes as they see fit. Unlike many of its peers, the fund currently focuses on medium-sized companies rather than their larger counterparts to produce much of the income. The fund also a bias to financial and consumer services companies with Friends Life, easyJet and Sainsbury's all large holdings. The fund currently yields an attractive 3.6% (variable and not guaranteed).
According to our analysis, the managers have added significant value through good stock selection throughout their tenure. An element of growth has also been achieved through their successful asset allocation. The fund has returned 81.6% since launch in December 2011, compared to 48.2%* for the IMA UK Equity Income sector over the same period. Although please remember, past performance is not a guide to future returns.
Please note, the fund's charges are taken from capital. This means the yield may be increased but it reduces the potential for capital growth.
Percentage growth of the Majedie UK Income Fund since launch
| Annual percentage growth | |||||
|---|---|---|---|---|---|
| Jan 10 -
Jan 11 |
Jan 11 -
Jan 12 |
Jan 12 -
Jan 13 |
Jan 13 -
Jan 14 |
Jan 14 -
Jan 15 | |
| Majedie UK Equity | 13.17% | -0.19% | 17.89% | 24.9% | 2.27% |
| Majedie UK Income | N/A | N/A | 19.9% | 36.9% | 8.38% |
| FTSE All-Share | 14.7% | -3.02% | 12.14% | 17.8% | 1.33% |
| IMA UK All Companies | 17.95% | -7.09% | 15.59% | 23.87% | 0.61% |
| IMA UK Equity Income | 14.58% | -3.08% | 13.58% | 22.76% | 2.89% |
Full year performance for the Majedie UK Income Fund is unavailable prior to 03/01/2012.
Past performance is not a guide to future returns. Source: Lipper IM* to 02/01/2015.
Our view
We highly rate the experienced Majedie UK team and both funds have been held within the HL Multi-Manager fund range for some time. The fund managers at Majedie are incentivised to perform well as they often invest their own money along with their clients and have bonuses linked to their performance. The Majedie UK Equity and Majedie UK Income Funds are welcome additions to the Wealth 150 list of our favourite funds for new investment, across the major sectors.
Find out more about the Majedie UK Equity Fund including how to invest
Please read the key features/key investor information document in addition to the information above.
Find out more about the Majedie UK Income Fund including how to invest
Please read the key features/key investor information document in addition to the information above.