Fact sheet: Lowland IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
UK EQUITY INCOME
Sector
IT UK Equity Income
Fund type
Investment Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates Lowland IT

Rated Fund 2016-2017. Emphasis on growth to boost income prospects

This trust provides diversified exposure to UK companies of all sizes. Although its objective is to grow income, manager James Henderson is a great believer in prioritising capital growth as a means to income growth.

This strategy has certainly worked in recent years because although the trust has a relatively modest yield of 3.3 per cent, its dividends have grown by an average of 8 per cent over the past five years. Indeed, paid quarterly, the annual dividend has more than doubled over the past 10 years and the trust has significant income reserves.

There are over 100 companies in the portfolio. Henderson admits it is a relatively long list of holdings but points out that this allows early-stage companies, recovery situations, large major companies and strongly growing medium-sized companies all to feature. He says the one thing that the companies all have in common is that they are all good, if not excellent, at what they do.

Henderson does not pay much attention to what is happening in the economy, saying it is much better to focus on management teams, products and valuations to find good investments.

He points out that a good management team can navigate through a difficult economic background, while a poor one can get it wrong in a strong economy. He describes his investment style as pragmatic, because what he is basically looking for is companies that can grow - and if they are cheap as well that is a bonus.

3 Year Performance
Fund Performance24.5%
Average of Rated Funds Group22.3%
Sector Performance16.9%
Fund information
Fund name
Lowland Investment Company Ord
Fund manager company
Henderson Global Investors Ltd
Fund type
Investment Trust
Fund managers
  • James Hendersonsince 01/01/1990
  • Laura Follsince 01/11/2016
Accolades
Highly Commended - Best UK Equity Trust
Fund 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. The Company’s policy is to invest in a broad spread of predominantly UK companies of differing sizes with normally not more than half by value coming from the largest 100 UK companies and the balance from small and medium sized companies.
Benchmark
  • FTSE All Share
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
6.8%
1 Year rank in sector
10/25
Sector
IT UK Equity Income
Yield
3.2%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.58%
Fund size
£415m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
112
Mid price
1537.5
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
1572.1
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
-2.20
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
110
Top in this sector
Fund name1 Year
Shires Income plc23.6%
Std Life Eq In Tst18%
JPMInc&CapTst lc16.8%
ChvSmCos DvTstplc14.5%
JPMorganClaverhITplc12.7%
...more in IT UK Equity Income

Performance snapshot

Holdings snapshot

  • UK96.7%
    Ireland2.8%
    Canada0.5%
  • Financials36.7%
    Industrials30.7%
    Consumer Services11.2%
    Oil & Gas10.9%
    Basic Materials6.3%
  • UK Equities96.7%
    Irish Equities2.8%
    Canadian Equities0.5%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-1.8%2.5%3.7%6.8%24.5%60.6%
Sector-5.5%-1.6%-2.4%5.8%16.9%48%
Rank within sector3 / 253 / 255 / 2510 / 2510 / 257 / 25
Quartile1st1st1st2nd2nd2nd
Calendar performance
 YTD - 20182017201620152014
Fund0.4%16.5%2.5%10.5%-9%
Sector-4.9%14%6.9%3.8%3%
Rank within sector2 / 2510 / 2520 / 258 / 2524 / 25
Quartile1st2nd4th2nd4th
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
3.4
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.04
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.51
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
13.73
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
10.98
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.28
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.36
Price movement
52 week high1580
52 week low1416
Current bid price1530
Current offer price1545
Current mid price1537.5
Region
1UK96.7%
2Ireland2.8%
3Canada0.5%
Industry sector
1Financials36.67%
2Industrials30.69%
3Consumer Services11.25%
4Oil & Gas10.92%
5Basic Materials6.31%
6Consumer Goods5.58%
7Health Care4.66%
8Telecommunications2.63%
9Utilities1.44%
Asset type
1UK Equities96.7%
2Irish Equities2.8%
3Canadian Equities0.5%
Individual holdings
1ROYAL DUTCH SHELL6.6%
2HSBC HOLDINGS PLC3.3%
3HISCOX LTD3%
4PHOENIX GROUP HLDGS3%
5SENIOR PLC2.6%
6PRUDENTIAL PLC2.5%
7IRISH CONTINENTAL GROUP1.9%
8STANDARD CHARTERED1.9%
9VODAFONE GROUP1.7%
Management
Fund manager group
Janus Henderson Investors
Fund manager company
Henderson Global Investors Ltd
Fund type
Investment Trust
Fund 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. The Company’s policy is to invest in a broad spread of predominantly UK companies of differing sizes with normally not more than half by value coming from the largest 100 UK companies and the balance from small and medium sized companies.
Benchmark
  • FTSE All Share
Investment style
No data available.
Investment method
No data available.
Fund managers
NameSinceBiography
James Henderson01/01/1990James Henderson is Director of UK Investment Trusts and a Fund Manager at Janus Henderson Investors, a position he has held as part of the Henderson team since 2003. He joined Henderson in 1983 as a trainee fund manager and, during his tenure with the firm, has been successfully managing a number of investment trusts since 1990. Prior to joining Henderson he was an accountant trainee at Binder Hamlyn. James graduated with an MA (Hons) in economics from Cambridge University and has 35 years of financial industry experience.
Laura Foll01/11/2016Laura Foll is a Fund Manager at Janus Henderson Investors, a position she has held as part of the Henderson team since 2014. Laura joined Henderson in 2009 as part of the graduate scheme where she worked across various teams including fixed income, performance, marketing and equities. She was subsequently named a global analyst on the value and income team and later an assistant fund manager for the global equity income team. Laura graduated from the London School of Economics with an honours degree in economic history with economics. She holds the Chartered Financial Analyst designation and has 8 years of financial industry experience.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
Lowland Investment Company NAV
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1564
CurrencyGBX
Price updated14/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeTU63
Lowland Investment Company Ord
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1572.1
CurrencyGBX
Price updated14/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJHO
Data provided by

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