Edison issues review on Lowland Investment Company

RNS Number : 6623S

Lowland Investment Co PLC

26 June 2018

 

London, UK, 26 June 2018

Edison issues review on Lowland Investment Company (LWI)

Lowland Investment Company (LWI) invests for income and capital growth in a diversified portfolio of mainly UK stocks of all sizes, from high-risk early-stage intellectual property plays to household-name FTSE 100 banks. With the overriding theme being that managers James Henderson and Laura Foll believe their current share price does not reflect the value of the business. The managers have been finding opportunities in stocks that are largely exposed to the domestic market, an area that has been very out of favour with investors, who are preoccupied with low wage growth, higher inflation and the potential impact of Brexit negotiations. This has arguably led to a degree of recent underperformance and discount widening, but LWI's impressive track record of c 12.5% annualised share price and NAV total returns over Henderson's 28-year tenure remains intact.

At 25 June 2018, LWI's shares traded at a 7.7% discount to cum-income NAV. This was wider than both short- and long-term averages, although narrower than a 12-month high of 9.2% seen in early June. The five-year average discount is 2.8%, and in the past LWI has frequently traded at a premium; a reversal of the short-term underperformance could see the discount narrow again. LWI yields 3.3%, slightly below the 3.6% dividend yield on the FTSE All-Share index.

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