Lowland Investment Company Plc

UK Equity Income

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.

Narrative and ratings content all as of 01 January 2018.

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Name
Lowland Investment Company Plc
Manager
Janus Henderson Investors Ltd
Type
Closed Ended Investment Company
ISIN
GB0005368062
Sector
UK Equity Income
Launched
05/04/1963
OCF
0.57 %
Risk Rating
2
3 Year Sharpe
0.49
3 Year Alpha
0.79
Yield
3.6 %
Benchmark
FTSE AllSh TR GBP
Fund Size
£ 369.49 million
NAV
1,446
Gearing
113
Discount Premium
-6
To invest in a broad spread of predominantly UK companies of differing sizes which pay high and growing dividends and where we believe that there are strong prospects of capital growth.
Holding %
Royal Dutch Shell PLC Class A 7.82 %
Senior PLC 3.54 %
Hiscox Ltd 3.27 %
HSBC Holdings PLC 3.11 %
Prudential PLC 2.62 %
Phoenix Grp Hldgs Npv (N/P) 2.57 %
GlaxoSmithKline PLC 2.21 %
Irish Continental Group PLC 1.94 %
Standard Chartered PLC 1.89 %
BP PLC 1.86 %
Region %
United Kingdom 93.97 %
Sector %
Financial Services 26.30 %
Industrials 25.34 %
Consumer Cyclical 10.88 %
Energy 10.27 %
Basic materials 8.73 %
Name
Janus Henderson Investors Ltd
Address
EC2M 3AE, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Laura Foll
Joined 11/01/2016

Laura 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. 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.

James Henderson
Joined 01/01/1990

James 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.

Data provided by Morningstar.

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