Edison issues update on Lowland Investment Company (LWI): Dividend growth and NAV outperformance

Edison Investment Research Limited Edison issues update on Lowland Investment Company (LWI): Dividend growth and NAV outperformance 11-Oct-2023 / 07:15 GMT/BST The issuer is solely responsible for the content of this announcement. London, UK, 11 October 2023 Edison issues update on Lowland Investment Company (LWI): Dividend growth and NAV outperformance Since we published our detailed review of Lowland Investment Company (LWI) in August, quarterly DPS has been increased 4.9% to 1.6p, continuing a long track record of progressive dividends, and maintaining the trust’s position as one of the highest yielding in the UK Equity Income sector. In the financial year to 30 September 2023 (FY23), its NAV total return of 17.2% was 3.4 percentage points ahead of the benchmark, despite larger-cap stocks continuing to lead market performance, a strong headwind to the trust’s multi-cap approach in the previous year. Although market uncertainties prevail, the managers continue to identify opportunities in market leading, well managed businesses with growth potential. LWI’s flexible, bottom-up, multi-cap approach differentiates it from most peers and its portfolio comprises a highly diversified blend of exposures to companies ranging from constituents of the top 100 companies right down to smaller companies, including those listed on AIM. Although underweight its broad market benchmark, LWI’s large-cap exposure is c 50%, typically providing more immediate income and, in an uncertain market, opportunities for growth in more liquid stocks from within more defensive sectors. However, the managers increasingly see the most attractive opportunities in mid- and small-cap (SME) companies and domestic earners and are selectively and slowly rebalancing the portfolio in this direction. With investor confidence weak, these have significantly trailed the broader market; their valuations are particularly low, and they typically have the potential to grow faster, increasing the capital base of the portfolio and distributable income over time. LWI’s broad opportunity pool and risk-return spectrum make LWI an interesting complement to more mainstream trusts. Narrowing of the 13% discount to NAV offers additional potential to enhance shareholder returns. Click here to view the full report. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Martyn King [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  www.linkedin.com/company/edison-group-/ Twitter  www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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1745597  11-Oct-2023