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LOWLAND INV CO PLC

Fund Information / Factsheet Mar 21, 2023

5180_rns_2023-03-21_a7037ef6-6daf-431d-a52d-534e0d5a120b.pdf

Fund Information / Factsheet

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Share price performance (total return)

Dividend history (pence/share)

Performance over (%) 6m 1y 3y 5y 10y Share price (Total return) 9.4 1.7 23.3 8.1 66.4 NAV (Total return) 13.2 7.2 25.9 11.6 75.8 Benchmark (Total return) 8.7 7.3 28.9 29.2 83.6 Relative NAV (Total return) 4.5 -0.1 -2.9 -17.6 -7.8

Commentary at a glance

Performance

The Company outperformed the FTSE All-Share Index during the month.

Contributors/detractors

The largest contributors to returns over the month were the positions in Irish insurance company FBD Holdings and bank Standard Chartered. FBD Holdings and Standard Chartered both released better-than-expected results during the month. Conversely, the holdings in mining companies Rio Tinto and Anglo American were detrimental to returns as their costs were higher than expected. The share price of battery maker Ilika fell on no company specific news, but may have been subject to profit-taking following strong performance in January.

Outlook

Increasingly, the view is that the economic slowdown may not be as large as originally predicted. The result season has, overall, been decent with beats and misses being broadly spread. We are now seeing evidence that the cost line is under control, with areas such as shipping rates falling. If this continues there could be earning upgrades, with operating margins expanding as a result of small increases to top line growth and costs controlled.

See full commentary on page 3.

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Company overview

Objective

The Company aims to give shareholders a higher than average return with growth of both capital and income over the medium to long-term, by investing in a broad spread of predominantly UK companies. The Company measures its performance against the FTSE All-Share Index Total Return.

Highlights

A growth and income company with a diversified portfolio of mainly UK equities and a strong dividend track record.

Company information

NAV (cum income) 142.1p
NAV (ex income) 140.9p
Share price 127.5p
Discount(-)/premium(+) -10.3%
Yield 4.8%
Net gearing 12%
Net cash -
Total assets
Net assets
£436m
£384m
Market capitalisation £344m
Total voting rights 270,185,650
Total number of holdings 109
Ongoing charges
(year end 30 September 0.60%
2022)
Benchmark FTSE All-Share Index
Source: BNP Paribas for holdings information and Morningstar for all
other data. Differences in calculation may occur due to the

other data. Differences in calculation may occur due to the methodology used.

Please note that the total voting rights in the Company do not include shares held in Treasury.

Please note that this chart could include dividends that have been declared but not yet paid.

Discrete year performance (%) Share price (total return) NAV (total return) 31/12/2021 to 31/12/2022 -5.2 -5.7 31/12/2020 to 31/12/2021 16.3 23.9 31/12/2019 to 31/12/2020 -11.0 -15.1 31/12/2018 to 31/12/2019 14.2 16.9 31/12/2017 to 31/12/2018 -11.3 -15.0

All performance, cumulative growth and annual growth data is sourced from Morningstar.

Source: at 28/02/23. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested. Please refer to glossary for definition of share price total return.

How to invest Go to www.janushenderson.com/howtoinvest Find out more Go to www.lowlandinvestment.com

Top 10 holdings (%)
Shell 3.3
BP 3.2
HSBC 2.5
Standard Chartered 2.5
FBD 2.1
Phoenix Group 2.1
M&G 2.0
National Grid 2.0
GSK 2.0
NatWest Group 1.9

References made to individual securities do not constitute a n/a n/a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Sector breakdown (%)

10 year total return of £1,000

Key information

Stock code LWI
AIC sector AIC UK Equity Income
Benchmark FTSE All-Share Index
Company type Conventional (Ords)
Launch date 1963
Financial year 30-Sep
Dividend payment January, April, July,
October
Risk rating
(Source: Numis)
Average
Management fee 0.5% of average net
chargeable assets up to
£325m and 0.4% in
excess thereof.
Performance fee No
(See Annual Report & Key Information Document for more information)
Regional focus UK
Fund
manager
appointment
James Henderson 1990
Laura Foll 2016

All performance, cumulative growth and annual growth data is sourced from Morningstar. Share price total return is calculated using mid-market share price with dividends reinvested.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested.

How to invest Go to www.janushenderson.com/howtoinvest Customer services 0800 832 832

Fund Manager commentary Investment environment

The UK equity market continued to make progress in February following a slowdown in the rate of inflation and some signs that the Bank of England (BoE) would be raising interest rates more gradually from the current 4% level. Encouragingly, the BoE also sounded more upbeat on the prospects for the economy overall, with only a shallow recession now anticipated.

Portfolio review

The Company's net asset value rose by 2.4% during the month, compared with a rise of 1.5% in the FTSE All-Share Index and a rise of 1.3% in the IA UK Equity Income peer group.

The largest contributors to the returns over the month were the positions in Irish insurance company FBD Holdings and bank Standard Chartered. FBD Holdings released strongerthan-expected profits due to its excellent underwriting performance driven by lower injury claims frequency and benign weather. Standard Chartered also performed well after it reported good financial results and continues to benefit from the higher interest rate environment.

Conversely, the holdings in mining companies Rio Tinto and Anglo American were detrimental to returns, as was battery company Ilika. The mining companies had performed well year-to-date as demand for their products increased as Chinese demand resumed.

However, the share prices of both fell at the end of the month as they reported results which disappointed the market as costs were higher than previously expected. Ilika shares meanwhile were subject to profit-taking following strong performance in January.

We added to our positions in building materials company Marshalls and pork producer Cranswick. We have continued to add to our position in Marshalls as we see significant value in the company as it is exposed to the commercial spend on infrastructure, which in our view could prove more resilient than the market expects. Cranswick's share price fell in February and we took the opportunity to add to the position on weakness. Elsewhere, we exited the position in Haleon following good performance post demerger from GSK.

Manager outlook

Increasingly, the view is that the economic slowdown may not be as large as originally predicted. Consumer spending figures are not falling and manufacturing output is showing resilience. The result season has, overall, been decent with beats and misses being broadly spread. However, the misses have usually been the result of costs being higher than anticipated. We are now seeing evidence that the cost line is under control, with areas such as shipping rates falling. If this continues there could be earning upgrades, with operating margins expanding as a result of small increases to top line growth and costs controlled.

Glossary

Discount/Premium

The amount by which the price per share of an investment company is either lower (at a discount) or higher (at a premium) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.

Gearing

The effect of borrowing money for investment purposes (financial gearing). The amount a company can "gear" is the amount it can borrow in order to invest. Gearing is used in the expectation that the returns on the investments bought will exceed the costs of the borrowings that funded the purchase. This Company can also use synthetic gearing through derivatives and foreign exchange hedging and/or other non-fully funded instruments or techniques.

Leverage

The Company's leverage is the sum of financial gearing and synthetic gearing. Details of the Company's leverage limits can be found in both the Key Information Document and Annual Report. Where a company utilises leverage, the profits and losses incurred by the company can be greater than those of a company that does not use leverage.

Market capitalisation

Month end closing mid-market share price multiplied by the number of shares outstanding at month end.

Net asset value (NAV)

The total value of a fund's assets less its liabilities.

NAV (Cum Income)

The value of investments and cash, including current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV (Ex Income)

The value of investments and cash, excluding current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV total return

The theoretical total return on shareholders' funds per share reflecting the change in Net Asset Value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.

Net assets

Total assets minus any liabilities such as bank loans or creditors.

Net cash

A company's net exposure to cash/cash equivalents expressed as a percentage of shareholders' funds, after any offset against its gearing. This is only shown for companies that have gearing in place.

Net gearing

A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.

Ongoing charges

The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

Risk rating

The key measure used to assess risk is volatility of returns, using historic net asset value (NAV) performance of the company over 1 and 3 years. In this instance volatility measures how much a company's NAV fluctuates over time in relation to the UK Equity market. The higher a volatility figure, the more the NAV has fluctuated (both up and down) over time. Please note that risk categorisations are indicative and based principally on historic data and should not be solely relied upon when making investment decisions.

Share price

Closing mid-market share price at month end.

Share price total return

The theoretical total return to the investor assuming that all dividends received were reinvested in the shares of the company at the time the shares were quoted ex-dividend. Transaction costs are not taken into account.

Total assets

Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.

Yield

Calculated by dividing the current financial year's dividends per share (this will include prospective dividends) by the current price per share, then multiplying by 100 to arrive at a percentage figure.

For a full list of terms please visit:

https://www.janushenderson.com/en-gb/investor/glossary/

Source for fund ratings/awards Overall Morningstar Rating™ is shown for Janus Henderson share classes achieving a rating of 4 or 5.

Company specific risks

  • This Company is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this Company.
  • Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.
  • The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result losses (or gains) may be higher or lower than those of the Company's assets.
  • If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio diversified across more countries.
  • Some of the investments in this portfolio are in smaller companies shares. They may be more difficult to buy and sell and their share price may fluctuate more than that of larger companies.
  • The Company may use gearing as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incured by the Company can be greater than those of a Company that does not use gearing.

Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor's particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier). Janus Henderson, Knowledge Shared and Knowledge Labs are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc

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