Update Re Javelin Capital LLP

Majedie Investments PLC announces that it intends to seek shareholder approval
to invest up to a further £3.5m of equity capital in Javelin Capital LLP
("Javelin") to secure its long term funding until it reaches profitability.
This augments the initial equity of £4.5 million invested in September 2010.

 

At the time of the AGM the board expressed the view that further investment may
be required in Javelin as the process of attracting external assets under
management was taking longer than anticipated in the business plan.

 

Since the launch of Javelin in September 2010 its initial fund, the Javelin
Capital Global Equities Strategies Fund (QIF), has performed in line with
expectations. Although Javelin QIF has attracted interest from potential
investors its current assets of £19.15m are nearly wholly comprised of the seed
investment by Majedie Investments PLC and, it is clear that in the current
environment it will be necessary to establish a longer term track record to
attract third party funds under management. Javelin will therefore take longer
than originally anticipated to reach profitability. In view of investor
feedback, Javelin intends to launch a second fund, the Javelin Capital Global
Equity Fund (UCITS) during 2011. Majedie Investments PLC intends to seed the
new fund with up to £15m of investment capital. 

 

In providing the additional equity capital Majedie Investments PLC and Javelin
have decided to reduce the existing level of overheads in the business.

 

Gerry Aherne, who led the formation and launch of Javelin and has served on the
Board since May 2006, has decided to resign as a member (including his role as
managing member) of Javelin and as a director of Majedie Investments PLC, each
with effect from 21 April 2011. Victor Pina has been appointed as managing
member of Javelin and will continue as CIO of Javelin Alternative Strategies
along with his team.  The assets of Majedie Investments PLC will continue to be
managed by Nick Rundle, who as a partner of Javelin Capital reports to the
Board of Majedie Investments PLC, to ensure that the overall regulatory
conditions are met for an investment trust and that the investments are in
accordance with the stated objectives of the Company.

 

As Javelin is a related party of Majedie Investments PLC, the further equity
injection requires the approval of shareholders. A circular will be posted to
shareholders as soon as practicable giving further details and convening the
necessary EGM.

 

The Board of Majedie Investments PLC remains committed to the long term future
and success of Javelin LLP.

About Javelin Capital LLP

Javelin Capital is an asset management company, established in 2010 to
specialise in Global and UK Equities. Javelin Capital will differentiate itself
initially by focusing on Global and Emerging Markets Equities, utilizing
innovative investment approaches with the goal of achieving superior low
volatility performance. Javelin Capital is structured as an alternative equity
boutique offering both long-short and long-only investment approaches. The
business strategy is to offer high quality sophisticated multi-approach equity
products to a range of professional investors. By having a performance driven,
equity ownership culture, the Partners of Javelin Capital wish to maintain the
dynamic benefits of a small/medium organization and operate within a framework
in which the interests of shareholders, management, and clients are aligned.

Enquiries: 020 7626 1243