TIDMLWI

Lowland Investment Co PLC

03 May 2017

London, UK, 3 May 2017

Edison issues review on Lowland Investment Company (LWI)

Lowland Investment Company (LWI) is a UK equity income investment trust with a focus on growing capital and income. It has been managed since 1990 by James Henderson at Henderson Global Investors; during 2016 Laura Foll, who has assisted Henderson since 2013, was named joint manager. LWI invests in 100+ mainly UK companies across the market cap spectrum, generally with about one-third of its portfolio respectively in large, mid-cap and smaller stocks. It has recently increased its gearing with an issue of 30-year loan notes, locking in a long-term fixed borrowing cost of 3.15%. LWI's managers note that they are finding many attractive opportunities to buy undervalued stocks with good long-term growth potential, at dividend yields that comfortably exceed the cost of borrowing. The discount is currently wider than longer-term averages.

At 25 April, LWI's shares traded at a 5.5% discount to cum-income net asset value. While in line with the one-year average, this is wider than longer-term averages (3.1%, 2.0% and 3.7% respectively over three, five and 10 years). NAV total returns continued strongly into April, running ahead of share price performance, which led to a widening discount. At 3.1%, LWI's dividend yield is towards the lower end of its peer group, but dividend growth has compounded at 10% pa over the last five financial years, compared with 2.2% for retail price inflation.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Contact details: Learn more at www.edisongroup.com and connect with Edison on:

 
 LinkedIn   https://www.linkedin.com/company/edison-investment-research 
---------  ------------------------------------------------------------ 
 Twitter    www.twitter.com/Edison_Inv_Res 
---------  ------------------------------------------------------------ 
 YouTube    www.youtube.com/edisonitv 
---------  ------------------------------------------------------------

This information is provided by RNS

The company news service from the London Stock Exchange

END

NRASSISADFWSESI

(END) Dow Jones Newswires

May 03, 2017 04:10 ET (08:10 GMT)

Lowland Investment (LSE:LWI)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Lowland Investment Charts.
Lowland Investment (LSE:LWI)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Lowland Investment Charts.