Fund Information / Factsheet • Mar 21, 2023
Fund Information / Factsheet
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The Company outperformed the FTSE All-Share Index during the month.
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.
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.
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.
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.
A growth and income company with a diversified portfolio of mainly UK equities and a strong dividend track record.
| 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.
10 year total return of £1,000
| 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
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.
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.
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.
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.
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.
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.
Month end closing mid-market share price multiplied by the number of shares outstanding at month end.
The total value of a fund's assets less its liabilities.
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).
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).
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.
Total assets minus any liabilities such as bank loans or creditors.
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.
A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.
The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.
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.
Closing mid-market share price at month end.
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.
Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.
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
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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