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Lowland Investment Company plc: Half-Year Results 2023
Portfolio Manager, James Henderson discusses the half-year results of the Lowland Investment Company, including the key drivers of performance, opportunities within UK small-caps, valuations and earnings, and the outlook for UK dividends over the coming months.
19 May 2023
6 minute watch
6 minute watch
Key takeaways:
- The Company’s NAV total return rose by 16.1%, outperforming the FTSE All-Share Index which increased by 12.3%. The reason for the advance in stock prices when investor sentiment is so poor is that valuations are very low. The evidence for this view is not just borne out by long-term valuation charts but also the increasing level of corporate activity.
- Our success was due to stock selection and takeovers. K3 Capital Group was subject to a successful takeover bid, whilst BP benefitted from higher energy prices. Our holding in FBD was also positive. However, Serica Energy and Direct Line detracted from performance.
- With inflation set to remain elevated for some time, we believe that a well-diversified portfolio of excellent companies with pricing power through operational strengths and product excellence should insulate investors from uncertainty and volatility.
Important information
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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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Glossary
Net asset value – The total value of a fund’s assets less its liabilities
Volatility – The rate and extent at which the price of a portfolio, security or index, moves up and down. If the price swings up and down with large movements, it has high volatility. If the price moves more slowly and to a lesser extent, it has lower volatility. Higher volatility means the higher the risk of the investment.
Lowland investment article
Investment article
Related insights
19 May 2023
6 minute watch
6 minute watch
Key takeaways:
- The Company’s NAV total return rose by 16.1%, outperforming the FTSE All-Share Index which increased by 12.3%. The reason for the advance in stock prices when investor sentiment is so poor is that valuations are very low. The evidence for this view is not just borne out by long-term valuation charts but also the increasing level of corporate activity.
- Our success was due to stock selection and takeovers. K3 Capital Group was subject to a successful takeover bid, whilst BP benefitted from higher energy prices. Our holding in FBD was also positive. However, Serica Energy and Direct Line detracted from performance.
- With inflation set to remain elevated for some time, we believe that a well-diversified portfolio of excellent companies with pricing power through operational strengths and product excellence should insulate investors from uncertainty and volatility.