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The Law Debenture Corporation

LN: LWDB

£710.6m market cap

600p last close

LWDB’s investment objective is to achieve long-term capital growth in real terms and steadily increasing dividend income to shareholders. The aim is to achieve a higher rate of total return than the FTSE All-Share index through investing in a global portfolio diversified both geographically and by industry. LWDB’s independent professional services (IPS) business provides a regular flow of income, which enhances the dividend income from the equity portfolio.

Investment summary

The Law Debenture Corporation (LWDB) has delivered robust NAV and share price gains in the first half 2019, supported by an upward revaluation of its independent professional services (IPS) business, which continues to grow well in spite of a tougher capital markets backdrop. The managers of LWDB’s investment portfolio have increased net gearing from c 3% to c 7% in order to take advantage of attractive valuations in selected UK equities. While more than 20% of its diversified portfolio is still invested overseas to gain access to opportunities unavailable in the UK, LWDB has recently moved from the AIC’s Global sector to the UK Equity Income sector, where its NAV total returns currently rank it in the top quartile over three, five and 10 years.

Share price graph
Price performance
%
1m
3m
12m
Actual 3.8 5.3 5.3
Relative* 2.4 3.0 0.7
52-week high/low 618.0p/534.0p
*% relative to local index
Key management
Denis Jackson CEO
Katie Thorpe CFO

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