Lowland Investment : Monthly Factsheet as at 31 May 2024

LOWLAND INVESTMENT COMPANY PLC (LWI) ISIN: GB00BNXGHS27

Factsheet - at 31 May 2024

Marketing Communication

Share price performance (total return)

Price (rebased)

	Benchmark
160	NAV (cum income)
140
120
100
80
60

Performance		6m		1y		3y		5y		10y
over (%)
	Share price	16.6	14.8	6.9	24.2	36.6
	(Total return)
	NAV		16.7		18.2		17.4		31.9		55.5
	(Total return)
	Benchmark	13.6	15.4	25.5	37.3	77.6
	(Total return)
	Relative NAV		3.1		2.7		-8.2		-5.4		-22.1
	(Total return)

Commentary at a glance

Performance

In the month under review the Company's NAV total return was 5.3% and the FTSE All-Share Index total return was 2.4%.

Contributors/detractors

The largest positive contributors to relative performance included Johnson Service Group, BT and Marks & Spencer. Detractors included industrial holdings TT Electronics and Midwich.

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.

40

20

0

May 19 May 20 May 21 May 22 May 23 May 24

			Outlook
			The low valuation of the UK equity market (versus
Discrete year	Share price	NAV	both overseas peers and its own history) makes us
positive on the outlook for UK equities.
performance (%) (total return)	(total return)

Company information

NAV (cum income)	147.9p
NAV (ex income)	145.5p

Dividend history (pence/share)

7.0

31/3/2023 to	1.8	8.5
31/3/2024
31/3/2022 to
	-1.5		-0.4
31/3/2023

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

Share price	129.5p
Discount(-)/premium(+)	-12.4%
Yield	4.9%

6.0

5.0

4.0

3.0

2.0

1.0

Income

	31/3/2021 to	14.1	9.9
31/3/2022
	31/3/2020 to		45.9		47.2
	31/3/2021
	31/3/2019 to	-29.8	-29.6
31/3/2020

Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Net gearing	13%
Net cash	-
Total assets	£450m
Net assets	£400m
Market capitalisation	£350m
Total voting rights	270,185,650
Total number of holdings 121

0.0

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

Ongoing charges

04 06 08 10 12 14 16 18 20 22

Please note that this chart could include dividends that have been declared but not yet paid.

Source: at 31/05/24. © 2024 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.

(year end 30 Sep 2023)	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		Find out more
Go to www.janushenderson.com/howtoinvest		Go to www.lowlandinvestment.com

LOWLAND INVESTMENT COMPANY PLC (LWI) ISIN: GB00BNXGHS27

Factsheet - at 31 May 2024

Marketing Communication

Top 10 holdings	(%)
BP	2.7
HSBC	2.6
Shell	2.4
Standard Chartered	2.3
GSK	2.3
Aviva	2.1
Irish Continental Group Plc	2.0
Barclays	2.0
FBD	1.9
NatWest Group	1.9

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.

Geographical focus (%)

United	96.1%
Kingdom
Ireland	3.9%

Sector breakdown (%)

 Financials	29.5%
 Industrials	27.7%
 Consumer	9.7%
Discretionary
 Energy	6.7%
 Basic Materials 6.1%
 Consumer	6.0%
Staples
 Real Estate	4.5%
 Health Care	3.5%
 Utilities	2.4%
 Telecomms	2.3%
 Technology	1.6%

The above sector breakdown may not add up to 100% due to rounding.

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	Average
(Source: Numis)
	0.5% of average net
Management fee	chargeable assets up to
£325m and 0.4% in
	excess thereof.

Premium/(discount) of share price to NAV at fair value (%)

20
15
10
5
0
-5
-10
-15
-20
May 21	May 22	May 23	May 24

10 year total return of £1,000

2,000		Share price total return	Benchmark
1,500
1,000
500
0
May 14	May 16	May 18	May 20	May 22	May 24

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.

Performance fee

No

(See Annual Report & Key Information Document for more information)

Regional focus	UK
Fund manager	James Henderson 1990
appointment	Laura Foll 2016

James Henderson

Portfolio Manager

Laura Foll, CFA

Portfolio Manager

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

LOWLAND INVESTMENT COMPANY PLC (LWI) ISIN: GB00BNXGHS27

Factsheet - at 31 May 2024

Marketing Communication

Fund Manager commentary

Investment environment

May was a strong month for the UK equity market. Small- and medium-sized companies - which on average are more exposed to the domestic economy - outperformed, as data showed the UK economy exited the shallow recession it experienced in the second half of last year, and as consumer confidence continued to improve.

An earlier-than-expected date for the General Election was announced. From an equity market perspective, the impact of this was relatively subdued outside of specific sectors where there is deemed to be greater political risk (for example, water utilities companies).

Portfolio review

The best performing holdings during May included textile rental firm Johnson Service Group, which has been benefiting from energy costs falling quicker than expected, BT, which provided favourable long-term earnings guidance (forecasts) on the amount of cash it expects to generate, and Marks & Spencer, which reported better-than-expected trading performance in both clothing and food.

The worst performers during the month included TT Electronics, Midwich Group and Dowlais. In all three cases, trading was weaker than expected, which led to modest earnings downgrades from each company.

During the month we added a new position in Centrica, a vertically integrated energy company that provides energy services to businesses and households. The company has a strong balance sheet, giving it the option to either return further cash to shareholders or to invest in new assets (for example, it may decide to take a stake in next-generation UK nuclear assets). Elsewhere, we added to existing holdings in medical device company Smith & Nephew and retailers Dunelm and Sainsbury's.

Manager outlook

The UK equity market continues to trade at a substantial valuation discount to overseas equities and we have been seeing evidence of this in the number of takeovers (both accepted and rejected) so far this year. Historical evidence suggests that starting valuations materially impact long-term shareholder returns, and the starting valuations of UK equities in general, which are lower than both their own history and overseas equities, makes us positive in our outlook.

LOWLAND INVESTMENT COMPANY PLC (LWI) ISIN: GB00BNXGHS27

Factsheet - at 31 May 2024

Marketing Communication

Glossary

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/en- gb/investor/glossary/

LOWLAND INVESTMENT COMPANY PLC (LWI) ISIN: GB00BNXGHS27

Factsheet - at 31 May 2024

Marketing Communication

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.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 78, Avenue de la Liberté, L-1930 Luxembourg, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).

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