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For individual investors in the UK

Outlook for UK dividends encouraging

Laura Foll, CFA

Laura Foll, CFA

Portfolio Manager


James Henderson

James Henderson

Portfolio Manager


28 Jul 2021
6 minute watch

In this video, Laura Foll, co-Fund Manager for Lowland Investment Company, discusses the Trust’s recent performance – highlighting key drivers of performance, dividend trends in the UK and main concerns for businesses.

Key Takeaways

  • Lowland Investment Company has performed well over the first half of the year, driven by strong performance within the industrials sector (circa 30% of the portfolio).
  • Outlook for UK dividends looks encouraging as companies return to paying dividends. However, the dividend payout ratios remain conservative, due to uncertainty over the domestic economic recovery.
  • Supply shortages due to the surge in demand and inflation pressures within labour, machining and raw materials are currently the main concerns for businesses.

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Marketing Communication.

 

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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 Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
  • Some of the investments in this portfolio are in smaller company shares. They may be more difficult to buy and sell, and their share prices may fluctuate more than those of larger companies.
  • This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
  • Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
  • The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
  • 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.
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  • The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.
Laura Foll, CFA

Laura Foll, CFA

Portfolio Manager


James Henderson

James Henderson

Portfolio Manager


28 Jul 2021
6 minute watch