Why invest

Unlocking the potential of large, medium and small UK businesses for income and growth

The UK market is broader and more diverse than many investors realise, yet traditional income strategies often focus on large, high-yielding companies. Lowland takes a different approach, investing across the full spectrum of UK companies, from household names to under-researched smaller businesses, seeking opportunities beyond the UK’s most familiar stocks. 

Founded in 1960, the trust is built around the idea that the most dependable income is backed by growing businesses and focuses on total return, so income is not the only outcome but a benefit that can be strengthened over time. Through a selective, valuation-aware approach, the managers seek to identify mispriced opportunities across the UK rather than mirror the index. By investing in a blend of large, medium-sized and smaller companies, and looking beyond the usual index buckets, Lowland seeks to access a wider range of opportunities that can drive returns over time. 

Why choose Lowland Investment Company?

Growing income by growing capital

The portfolio has a progressive dividend policy, with the aim for each quarterly dividend equal to or greater than its previous equivalent. The managers aim to achieve this by selecting small and medium sized companies that have faster dividend growth potential, alongside larger companies which may provide higher average dividend yields.

A blend of large, medium and small UK businesses

The trust can invest across all sizes of predominantly UK companies. By seeking out under-researched smaller companies, this offers a greater chance for unrealised potential.

Strong valuation focus

The managers seek to identify value where others don’t see it. There is a patient approach to buying into companies that have an underlying strength not yet realised. The trust is unconstrained by an index and stocks are selected based on the individual business characteristics rather than a ‘top-down’ approach.

Manager's perspective

Laura Foll and James Henderson, Fund Managers for Lowland Investment Company, see its blend of small, medium and large companies as the trust’s biggest strength. The complementary nature of the portfolio – dedicated to both dividend and capital growth – is just one of the ways the trust is unique.

“Smaller companies tend to bring faster dividend growth, while larger companies typically bring higher dividend yields on average. The two elements together may bring something quite different to the portfolio.”

– Laura Foll, Fund Manager