Fund Information / Factsheet • Jun 22, 2023
Fund Information / Factsheet
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| Discrete year performance (%) |
Share price (total return) |
NAV (total return) |
|---|---|---|
| 31/3/2022 to 31/3/2023 |
-1.5 | -0.4 |
| 31/3/2021 to 31/3/2022 |
14.1 | 9.9 |
| 31/3/2020 to 31/3/2021 |
45.9 | 47.2 |
| 31/3/2019 to 31/3/2020 |
-29.8 | -29.6 |
| 31/3/2018 to 31/3/2019 |
-6.3 | -4.8 |
All performance, cumulative growth and annual growth data is sourced from Morningstar.
Source: at 31/05/23. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (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.
The Company outperformed the FTSE All-Share Index during the month.
The largest detractors from performance were the holdings in fund manager Jupiter and flooring business Headlam. Jupiter released financial results showing its assets under management had been falling as it continued to face outflows, given that investors have largely remained risk averse. Headlam's share price fell given falling demand for flooring from residential homes. Conversely, retailer Marks and Spencer was the largest positive contributor following better-than-expected results which showed strong growth in its clothing and furniture departments.
For many companies that tend to be sensitive to the economic cycle, earnings results beat low expectations. A better performing economy is expected to mean interest rates need to rise further and stay higher for longer. The frustration is that the low-productivity growth of the UK economy is a long-term factor behind inflationary pressures. In this difficult economic climate, companies need to be excellent at what they do to be genuinely competitive. The companies we hold in the portfolio are investing in the future even if, in the economy as a whole, there is not enough of this going on.
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) | 131.2p | |
|---|---|---|
| NAV (ex income) | 128.8p | |
| Share price | 119.0p | |
| Discount(-)/premium(+) | -9.3% | |
| Yield | 5.1% | |
| Net gearing | 15% | |
| Net cash | - | |
| Total assets Net assets |
£403m £355m |
|
| Market capitalisation | £322m | |
| Total voting rights | 270,185,650 | |
| Total number of holdings | 109 | |
| Ongoing charges (year end 30 Sep 2022) |
0.60% | |
| 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 methodology used. |
Please note that the total voting rights in the Company do not include shares held in Treasury.
Find out more Go to www.lowlandinvestment.com
| Top 10 holdings | (%) |
|---|---|
| Shell | 3.1 |
| BP | 2.8 |
| HSBC | 2.5 |
| National Grid | 2.3 |
| Vanquis Banking Group | 2.3 |
| Standard Chartered | 2.1 |
| FBD | 2.1 |
| M&G | 2.0 |
| GSK | 2.0 |
| Aviva | 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.
The above sector breakdown may not add up to 100% due to rounding.
Consumer Staples 3.9% Utilities 3.8% Real Estate 2.8% Health Care 2.6% Telecomms 2.4% Technology 1.6%
10 year total return of £1,000
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
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 |
In the UK, the FTSE All-Share Index fell 4.6% as elevated inflation increased worries that interest rates would stay higher for longer. The Bank of England (BoE) raised its key rate by 25 basis points to 4.5% after it emerged that consumer price rises had slowed to a higher-than-expected 8.7% in April, from 10.1% in March. The BoE also upwardly revised its inflation expectations, saying it did not expect consumer price rises to reach its 2% target until 2025, which is later than previously anticipated.
The Company returned 4.6%, while the FTSE All-Share Index benchmark returned 4.6%.
The largest detractors from performance were the holdings in fund manager Jupiter and flooring business Headlam. Jupiter released financial results showing its assets under management had been falling as it continued to face outflows, given that investors have largely remained risk averse. Headlam's share price fell due to lower demand for flooring from residential homes. Conversely, retailer Marks and Spencer was the largest positive contributor following better-than-expected results which showed strong growth in its clothing and furniture departments.
During the month, we continued to increase the position in kettle safety company Strix Group. We also added to the position in Serica Energy. North Sea oil and gas companies have suffered since the introduction of a windfall tax on their profits by the UK government. Serica Energy's share price has fallen 21% so far this year and we see value in the shares at this share price. Serica Energy also produces natural gas, which will play an essential role in the energy transition.
We did not exit any positions over the month.
The strength in economic activity has generally surprised commentators. For many of the more economically sensitive companies, it has meant earnings performance has tended to outstrip muted expectations. Better economic performance is expected to mean interest rates need to go up further and stay higher for longer, as it is thought that only a real economic slowdown will contain inflationary expectations. However, the inflation headline may be lagging the reality of falling commodity prices and reduced expectations around wage increases.
In our view, interest rates will fall in 2024 when these economic realities come through. One frustration is that the low productivity growth of the UK economy is a long-term factor behind the inflationary pressures. While this could be remedied by productive capital spend, many of the projects that would boost productivity are on hold as interest rates climb. This difficult economic climate means that companies need to be excellent at what they do in order to remain genuinely competitive. The companies we hold in the fund are investing in the future, even if, in the economy as a
whole, there is not enough of this going on.
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.
Share price multiplied by the number of shares in issue, excluding treasury shares, at month end. Shares typically priced mid-market at month-end closing.
The total value of a Company'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.
https://www.janushenderson.com/en-gb/investor/glossary/
Source for fund ratings/awards Overall Morningstar Rating™ is shown for an investment company 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), (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 and Knowledge Shared are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.
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