LWI Lowland Investment Company plc

Lowland Investment Company plc aims to give shareholders a higher than average return with growth of both capital and income over the medium to long-term by investing in a broad spread of predominantly UK companies. It typically holds more than 50% in small- and medium-sized companies. The company targets income and capital growth through a long list of holdings typically around 120 stocks. It has a bottom-up approach to stock selection that prioritises value and growth potential.

Lowland Investment Company was incorporated on 20^th September 1960.

The fund managers are James Henderson and Laura Foll. James joined the asset management industry in 1982 and has been with Janus Henderson since 1984. James has managed the company since 1990. Laura joined the asset management industry with Janus Henderson in 2009. Laura has co-managed the company with James since 2016.

The company's investment benchmark is the FTSE All-Share Index.

The Association of Investment Companies (AIC) classifies companies into sectors as a way of grouping companies with common characteristics. The classifications are based on a combination of the company's regional or industry focus, and its investment objective. Lowland Investment Company plc is classified within the ‘UK Equity Income’ sector.

As of 31st March 2023, the Trust had total assets of £408.89M under management.

Source: AIC. Updated monthly.

Proposed dividend payment date(s): January, April, July and October.

The company has received an overall rating of ★★★ by Morningstar.

The management fee is 0.5% of average net chargeable assets up to £325m and 0.4% in excess thereof.

For general insight into the Company please see the latest Edison commissioned research: 2021 research note.

This research gives general insight into the background of the Investment Trust, and the investment strategy with which it is run. In addition to this it outlines the Company’s objectives and provides updates from the Fund Manager, as well as recent performance data.

At each Board meeting, the Board monitors the level of the Company’s discount/premium to NAV as well as the average discount/premium for the Company’s relevant Association of Investment Companies (‘AIC’) sector (UK Equity Income).

The Board does not operate a formal discount control mechanism since it does not believe it is in the interests of shareholders. It would negate some of the benefits of a closed-end fund. It might force the Company to purchase its own shares at a time when it does not have spare cash; when it may be inopportune to realise investments; or when there are good buying opportunities in the market. Furthermore, it could shrink the size of the Company, reducing the audience of potential investors, increase the ongoing charge ratio, and reduce liquidity in the Company’s shares. The Board may agree to purchase Lowland shares opportunistically if it believes that the benefits in terms of NAV enhancement are sufficient.

The Board believes that the best way of reducing or eliminating the discount is to provide superior returns to shareholders, and to highlight the attractions of investment in Lowland to as large and diverse an audience as possible.

The Board is prepared to issue shares at a premium, provided the transaction will enhance NAV; and provided that a premium has prevailed for sufficient time for current shareholders to have had the opportunity to sell shares at a premium. The Board would see the advantages as including NAV enhancement, reducing the bid/offer spread (the difference in price between which investors can buy and sell shares), reducing the ongoing charge ratio, growing the Company, and increasing liquidity in its shares. The Board believes that each of these five factors will be in the interests of Lowland’s shareholders.