LOWLAND INV CO PLC

Fund Information / Factsheet • Nov 21, 2023

Performance

Share price

Benchmark

NAV

Factsheet - at 31 October 2023

Marketing Communication

Share price performance (total return) Price (rebased)

Dividend history (pence/share)

	Relative NAV (Total return)	-2.1	2.6	8.4	-15.7	-23.8
	Discrete year		Share price		NAV
	performance (%)		(total return)		(total return)
	30/9/2022 to 30/9/2023		13.9		17.2
	30/9/2021 to 30/9/2022		-16.4		-14.8
	30/9/2020 to 30/9/2021		53.3		51.0
	30/9/2019 to 30/9/2020		-24.6		-24.8
	30/9/2018 to 30/9/2019		-11.9		-9.6
	n/a	n/a		n/a

(Total return) -8.0 8.5 47.8 5.4 34.2

(Total return) -5.9 5.9 39.4 21.1 58.0

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

Source: at 31/10/23. © 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.

over (%) 6m 1y 3y 5y 10y (Total return) -12.7 2.4 36.3 -4.2 10.1 Commentary at a glance Performance

In the month under review the Company's NAV total return was -5.1% and the FTSE All-Share Index total return was -4.1%.

Contributors/detractors (for the quarter) The overweight position in small- and medium-sized companies relative to the FTSE All-Share Index detracted from relative returns as larger companies outperformed.

Outlook

The underperformance of small- and medium-sized UK companies has been severe. In our view, this presents a valuation opportunity and we are gradually switching into the area.

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)	123.5p
NAV (ex income)	121.3p
Share price	104.5p
Discount(-)/premium(+)	-15.4%
Yield	5.9%
Net gearing	14%
Net cash	-
Total assets Net assets	£374m £334m
Market capitalisation	£282m
Total voting rights	270,185,650
Total number of holdings 110
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.

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 the glossary for the definition of share price total return.

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

Factsheet - at 31 October 2023

Marketing Communication

Top 10 holdings	(%)
Shell	3.9
BP	3.3
HSBC	2.7
GSK	2.3
Standard Chartered	2.3
M&G	2.1
FBD	2.1
Aviva	2.1
Irish Continental Group Plc	1.9
Serica Energy	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.

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. Please refer to glossary for definition of share price total return.

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

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

Factsheet - at 31 October 2023 Marketing Communication

Fund Manager commentary Investment environment

October was a poor month for UK equities, with the market declining overall and steep underperformance of small- and medium-sized companies (as illustrated by the FTSE 250 Index, FTSE Small Cap ex Investment Trusts Index and the FTSE AIM All-Share Index underperforming the FTSE 100 Index).

Conflict between Israel and Hamas in the Middle East heightened worries about geopolitical tensions and caused significant uncertainty. Within a UK equities context, this caused defensive sectors (such as utilities and consumer staples) to outperform.

Some disappointing corporate results have also weighed on investor sentiment. For example the banking sector reported greater-than-expected margin pressure.

Portfolio review

The two largest detractors from performance during the month were bank holdings NatWest and Standard Chartered. In both cases they reported disappointing earnings, partly as a result of margin pressure as the cost of funding increased (driven by savers moving low interest paying current account balances to higher interest paying fixed-rate savings accounts). In the case of Standard Chartered, the company also took an impairment on its Chinese commercial real estate exposure. We continue to hold both positions with the

view that in a 'higher for longer' interest rate environment, their returns on capital have improved and they are both capable of producing sizable distributions to shareholders via a combination of dividends and share buybacks. Size allocation was also a detractor from returns this month – the Company holds more than the FTSE All-Share Index benchmark in small- and mediumsized UK companies, which materially underperformed in an uncertain economic and geopolitical backdrop.

During the month we added to several existing holdings due to share price weakness. These included crockery designer and manufacturer Churchill China, third-party logistics provider Wincanton, and global car distributor Inchcape. In each case, the company has recently reported what we viewed as resilient results in often difficult end markets. However, all were trading at material discounts to their long-run average valuations at the time of purchase.

Manager outlook

The underperformance of small- and medium-sized UK companies has been severe, reflecting an uncertain economic outlook and rising interest rates. In our view, this presents a valuation opportunity and we are gradually reducing the holdings in larger companies and switching towards small- and medium-sized holdings.

Factsheet - at 31 October 2023

Marketing Communication

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

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.

Net Asset Value (NAV)

The total value of a Company'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/engb/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

• This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
• Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance 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 that is diversified across more countries.
• Some of the investments in this portfolio are in smaller company shares. They may be more difficult to buy and sell, and their share prices may fluctuate more than those of larger companies.
• The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred 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.

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