For individual investors in the UK

A fresh start for UK stocks?

Laura Foll, Co-Portfolio Manager of Lowland Investment Company, talks about the performance of the UK market, how companies are dealing with rising costs, and how the Trust performs in this type of environment. Laura also provides her outlook for dividends in the coming months.

Key takeaways:

  • The UK stock market has performed well to begin the year, mainly benefitting from its sector make-up. Natural resource companies have benefitted from higher commodity prices, whilst financials have benefitted from the prospect of higher interest rates.
  • Companies are likely to experience margin pressure in 2022 due to rising input costs, such as higher labour, energy, and raw material costs. However, companies with strong pricing power have been able to pass on these costs to consumers.
  • Dividends have recovered strongly so far this year, with special dividend payouts from mining companies like Anglo American and Rio Tinto. Share buy-backs have also increased in the UK market.
Laura Foll, CFA

Laura Foll, CFA

Portfolio Manager


James Henderson

James Henderson

Director of UK Investment Trusts | Portfolio Manager


17 May 2022

Key takeaways:

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

Marketing Communication.

 

Glossary

 

 

 

Important information

Please read the following important information regarding funds related to this article.

Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions.
    Specific risks
  • If a trust's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio diversified across more countries.
  • Some of the investments in this portfolio are in smaller companies shares. They may be more difficult to buy and sell and their share price may fluctuate more than that of larger companies.
  • This trust is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this trust.
  • Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.
  • The trust could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the trust.
  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • The return on your investment is directly related to the prevailing market price of the trust’s shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the trust. As a result losses (or gains) may be higher or lower than those of the trust’s assets.
  • The trust may use gearing as part of its investment strategy. If the trust utilises its ability to gear, the profits and losses incured by the trust can be greater than those of a trust that does not use gearing.
Laura Foll, CFA

Laura Foll, CFA

Portfolio Manager


James Henderson

James Henderson

Director of UK Investment Trusts | Portfolio Manager


17 May 2022