Lowland Investment Company (LWI) invests across the UK equity market (with a small proportion in overseas stocks) to achieve above-average total returns. While it is a member of the UK Equity Income sector, its managers have a greater focus on capital growth, which drives dividend growth, in order to secure a rising income for the trust over time. In the past five years it has produced compound annual dividend growth of 7.9% and currently yields 3.7%. Long-term performance has been comfortably ahead of the FTSE All-Share Index benchmark, driven by the managers’ focus on underappreciated recovery situations and a significant weighting towards mid-cap and smaller companies (two-thirds of the portfolio). Lead manager James Henderson has been in position since 1990 and the trust has been managed by Henderson Global Investors since its launch in 1963.
