OREANDA-NEWS. 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. 

At 14 June LWI's shares traded at a 9.7% discount to cum-income NAV. This is wider than the averages over one, three and five years (2.3%, 0.5% and 1.8%), but lower than the five-year widest point of 10.9% reached in early March. Sentiment towards UK equity investment trusts - particularly those with a more domestic focus - has been affected by nerves ahead of the EU referendum; a vote to remain could see discounts narrow, as well as providing a potential boost to underlying holdings. LWI also has a 39-year record of maintaining or growing its dividend year-on-year.  

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