Edison issues review on Lowland Investment Company

RNS Number : 6973H
Lowland Investment Co PLC
08 April 2022
 

 

London, UK, 8 April 2022

 

Edison issues review on   Lowland Investment Company (LWI)

Lowland Investment Company's (LWI's) managers, James Henderson and Laura Foll, run this UK equity income portfolio with a 'growth first' mentality, believing that companies with strong market positions and pricing power are best placed to grow their earnings, and consequently their dividends, over time. They cast their net across the market cap spectrum, aiming to own a diversified set of attractively valued - mainly UK - stocks spread across six 'buckets', from small-cap income to large-cap growth. Currently, the portfolio is tilted towards financial and industrial stocks, so the recent performance has somewhat lagged a volatile market where gains have been driven in large part by commodity producers. However, the managers are confident in the longer-term prospects of the 100+ companies they own, and with a c 4.8% dividend yield, investors in LWI are arguably being 'paid to wait' for value to be realised.

 

LWI is one of Janus Henderson's flagship UK equity income trusts, yet it may be overlooked by investors in favour of the higher-profile City of London IT (CTY) or Henderson and Foll's other portfolios, The Law Debenture Corporation (LWDB) and Henderson Opportunities Trust (HOT). We believe LWI deserves closer attention. It combines some of the multi-cap growth attributes of HOT and the core income characteristics of CTY and LWDB, with a lower P/E and a higher yield, and is currently trading at a wider discount to NAV than its UK Equity Income peer group. Although the trust's performance since the Brexit vote in 2016 has been somewhat patchy, LWI's managers are patient investors - average portfolio turnover suggests a holding period of six to seven years - and we would argue that investors with a similar mindset could be well rewarded in both capital and income growth terms.


Click here to view the full report or here to sign up to receive research as it is published.

 

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Sarah Godfrey +44 (0)20 3077 5700 investmenttrusts@edisongroup.com

Mel Jenner +44 (0)20 3077 5700 investmenttrusts@edisongroup.com

Learn more at   www.edisongroup.com and connect with Edison on: 

LinkedIn  www.linkedin.com/company/edison-group-/

Twitter    www.twitter.com/Edison_Inv_Res  

YouTube  www.youtube.com/edisonitv

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
NRABSGDSXXGDGDR
UK 100

Latest directors dealings