Edison reviews Lowland Investment Company (LWI)

RNS Number : 4216O

Lowland Investment Co PLC

29 January 2019

 

London, UK, 29 January 2019

Edison issues review on Lowland Investment Company (LWI)

Lowland Investment Company (LWI) invests mainly in UK companies that the managers, James Henderson and Laura Foll at Janus Henderson Investors, believe are undervalued in relation to their long-term growth prospects. The recent stock market volatility has seen P/E valuations fall across the board, and the current portfolio forward P/E multiple of c 11.5x represents a c 6% discount to the benchmark FTSE All-Share index. While LWI remains biased to the smaller end of the market cap spectrum (c 60% of the portfolio is outside the FTSE 100 index), the managers have recently been finding opportunities in some out-of-favour larger companies with attractive yields. LWI has a total return focus, currently yields 4.0% and has grown its total annual dividend at a compound rate of c 10% over the past five years, well ahead of the rate of inflation.

At 28 January 2019, LWI's shares traded at a 3.1% discount to cum-income NAV. This was towards the narrower end of the 12-month range (from a 1.5% to a 9.6% discount), and was also narrower than the average discounts over one, three, five and 10 years, which range from 3.8% to 6.1%. The current level of discount is broadly in line with the peer group average. LWI has a dividend yield of 4.0%. 

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