Fact sheet: Lowland IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
UK EQUITY INCOME
Sector
IT UK Equity Income
Fund type
Investment Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates Lowland IT

Rated Fund 2013, 2016-2018. Offers diversified exposure to UK companies

Providing diversified exposure to UK companies of all sizes, Lowland has the experienced James Henderson at the helm, alongside Laura Foll since 2016.Although the trust's objective is to grow income, the managers are great believers in prioritising capital growth as a means to achieve that.This strategy has worked well in recent years. The trust has a relatively modest yield of 3.1 per cent, but its dividends, paid quarterly, have more than doubled over the past decade and the trust has significant income reserves to maintain payouts in hard times.

There are around 120 companies in the portfolio, allowing early-stage companies, recovery situations, large majors and strongly growing medium-sized names to all feature.David Liddell, a director of IpsoFacto Investor, an online investment advisory service, points to the portfolio being 'quite an eclectic mix of large and smallish company stocks, with a value bias, but that's what makes it interesting and often different from much of the pack'.

As with any investment trust, the level of gearing (borrowing) amplifies gains and losses, but the managers had reduced this to around 6 per cent of net assets by the end of 2017 amid increasingly polarised valuations in the UK market: good quality companies with strong management teams and earnings upgrades are trading on historically high earnings multiples, while those that look optically more attractively valued tend to be of lower quality with little potential to grow earnings.Shares in the trust have traded in a range of -10 per cent to a premium of 4 per cent over the past three years.<\p>

3 Year Performance
Fund Performance25.1%
Average of Rated Funds Group23.5%
Sector Performance18%
Fund information
Fund name
Lowland Investment Company Ord
Fund manager company
Janus Henderson Investors
Fund type
Investment Trust
Fund managers
  • Laura Follsince 01/11/2016
  • James Hendersonsince 01/01/1990
Accolades
Highly Commended - Best UK Equity Trust
Fund objective
The Company aims to give shareholders a higher than average return with growth of both capital and income over the medium to long term. The Company’s policy is to invest in a broad spread of predominantly UK companies of differing sizes with normally not more than half by value coming from the largest 100 UK companies and the balance from small and medium sized companies.
Benchmark
  • FTSE All Share
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
7.5%
1 Year rank in sector
9/24
Sector
IT UK Equity Income
Yield
3.4%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.58%
Fund size
£403m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
113
Mid price
1490
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
1595.3
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
-6.60
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
114
Top in this sector
Fund name1 Year
Shires Income plc16%
Std Life Eq In Tst13.5%
Merchants Trust PLC12.4%
ChvSmCos DvTstplc11.4%
JPMorganClaverhITplc11.2%
...more in IT UK Equity Income

Performance snapshot

Holdings snapshot

  • UK96.4%
    Ireland3.1%
    Canada0.5%
  • Financials39.1%
    Industrials32.2%
    Consumer Services10.8%
    Oil & Gas10.6%
    Basic Materials5.8%
  • UK Equities96.4%
    Irish Equities3.1%
    Canadian Equities0.5%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-1.8%-4.1%-0.2%7.5%25.1%48.9%
Sector1.2%-2.3%-1%6.2%18%47.9%
Rank within sector21 / 2415 / 2410 / 249 / 248 / 2414 / 24
Quartile4th3rd2nd2nd2nd3rd
Calendar performance
 YTD - 20182017201620152014
Fund-1.9%16.5%2.5%10.5%-9%
Sector-2.9%14%6.9%3.8%3%
Rank within sector7 / 249 / 2420 / 248 / 2423 / 24
Quartile2nd2nd4th2nd4th
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
3.46
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.96
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.36
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
12.89
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
10.23
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.27
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.37
Price movement
52 week high1580
52 week low1451.5
Current bid price1490
Current offer price1505
Current mid price1490
Region
1UK96.4%
2Ireland3.1%
3Canada0.5%
Industry sector
1Financials39.06%
2Industrials32.23%
3Consumer Services10.76%
4Oil & Gas10.6%
5Basic Materials5.78%
6Utilities4.65%
7Health Care4.62%
8Consumer Goods3.4%
9Telecommunications2.58%
Asset type
1UK Equities96.4%
2Irish Equities3.1%
3Canadian Equities0.5%
Individual holdings
1ROYAL DUTCH SHELL6.3%
2HSBC HOLDINGS PLC3.2%
3PHOENIX GROUP HLDGS3.1%
4SENIOR PLC3%
5HISCOX LTD2.8%
6PRUDENTIAL PLC2.5%
7STANDARD CHARTERED2.1%
8IRISH CONTINENTAL GROUP1.9%
9VODAFONE GROUP1.7%
Management
Fund manager group
No data available.
Fund manager company
Janus Henderson Investors
Fund type
Investment Trust
Fund objective
The Company aims to give shareholders a higher than average return with growth of both capital and income over the medium to long term. The Company’s policy is to invest in a broad spread of predominantly UK companies of differing sizes with normally not more than half by value coming from the largest 100 UK companies and the balance from small and medium sized companies.
Benchmark
  • FTSE All Share
Investment style
No data available.
Investment method
No data available.
Fund managers
NameSinceBiography
Laura Foll01/11/2016Laura Foll is a Fund Manager at Janus Henderson Investors, a position she has held as part of the Henderson team since 2014. Laura joined Henderson in 2009 as part of the graduate scheme where she worked across various teams including fixed income, performance, marketing and equities. She was subsequently named a global analyst on the value and income team and later an assistant fund manager for the global equity income team. Laura graduated from the London School of Economics with an honours degree in economic history with economics. She holds the Chartered Financial Analyst designation and has 9 years of financial industry experience.
James Henderson01/01/1990James Henderson is Director of UK Investment Trusts and a Fund Manager at Janus Henderson Investors, a position he has held as part of the Henderson team since 2003. He joined Henderson in 1983 as a trainee fund manager and, during his tenure with the firm, has been successfully managing a number of investment trusts since 1990. Prior to joining Henderson he was an accountant trainee at Binder Hamlyn. James graduated with an MA (Hons) in economics from Cambridge University and has 35 years of financial industry experience.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
Lowland Investment Company NAV
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1583.5
CurrencyGBX
Price updated17/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeTU63
Lowland Investment Company Ord
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1595.3
CurrencyGBX
Price updated17/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJHO
Data provided by

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