Lowland Investment Company

Investment summary

Lowland Investment Company (LWI) has suffered a period of poor performance recently, with both its share price and NAV close to 12-month lows, as its value investment style has remained out of favour in a market where investors have preferred highly rated growth companies. Managers James Henderson and Laura Foll continue to see opportunities in both large and smaller UK companies that are growing their dividends, and LWI’s own dividend yield has reached a cyclical high of c 4.5%, a level that has historically been followed by strong NAV returns in subsequent years. Although underperformance in the past 12 months has weighed on the trust’s medium-term performance record, it has generated NAV and share price total returns of c 14% pa over 10 years, well ahead of both the FTSE All-Share Index return and the AIC UK Equity Income peer group.