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Looks like this could soon break out of its pennant formation and move towards 150p, perhaps beyond. |
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Telegraph tip again 'Hold'
Income investors are at a fork in the road. Pick shares to head in the right direction in 2024,
Questor Income Portfolio: income seekers who hold shares should benefit from falling interest rates over the coming years |
Hi Goldpig,Appreciate the mention about the HFEL board. The notorious SS being one such poster. I agree, if you are looking at a trust then 5 year min for me. 5-10 years particularly one offering a decent yield. HFEL is probably too much currently and they need ti action something however I am buying at current prices as I see it as buy and hold for compounding over the next 10 years and more.As for LWI I like it and it is yielding above 5% - not beating current best fixed deals but I think there is capital growth to be had here. I only started investing here last September when it was a little lower than now, so I am going to regularly top up. |
The two are bound up together. Efforts to close the discount will lead to better performance, especially if the underlying assets are at a turning point. |
i like this trust and I'm watching but the september effect might be relevant. Last year this trust had a terrible september probably along with most funds. |
NAV discount needs to be viewed in the context of the recent performance,
you can't view it realistically without this. |
My point was a macro one: the ONS announced it had been underestimating UK growth by nearly 2%. UK assets had been lagging EU because people thought the UK economy was lagging - but we now know it outperformed Germany, France and Italy instead of lagging them. |
Given that the discount here is 13.5%, why on earth isn't the trust buying back its own shares?Other trusts do this very actively - is Lowland's management asleep??? |
Appreciate the reply, thanks.
Only point I would make is wider macro is weakening, so you might be a bit soon with LWI - timing as always a challenge. |
 Hi Essential,
I have only been building my LWI investment since April 2022, so I don't have a 5 year return record here. I tend to build up a position gradually and then add on dips. I paid just over £1 for a large block of LWI shares.
I do have figures (in my press cuttings) from earlier this year showing total returns for a wide range of IT's. ABRDN Equity Income was the worst on the list with a 52% 5 year total return, followed by Lowland with 60%. The best trust shown was MRCH with a 122% 5 year total return.
However, the past is no guide to future performance and I started buying LWI last year with a 5-10 year time horizon. Many IT's with FTSE 250 holdings trade at steep discounts to NAV, providing a long term buying opportunity.
Fairly recently I also started a SIPP and have been buying VMID ETF's - (FTSE250). The FTSE 250 has performed poorly in recent years, but over a much longer time horizon has generated greater returns than the FTSE100. In the years ahead as we exit post-Brexit worries, covid 19 panic, and the huge discount the London market trades at compared to other markets I expect a period of outperformance. That is the point when Lowland should come into its own and outperform IT's that concentrate on FTSE 100 companies. I can't give a date for if/when that may happen, but my investment in LWI is a forward-looking decision based on past events.
Goldpig |
Minus 26% approx capital loss over the last 5 years (not inclusive of dividends).
Pretty shocking, are people seeing this differently?. |
Hi InvestingDad,
I don't think you have missed anything. Sentiment in companies with FTSE250 holdings is poor. As Lowland is a multicap investent trust it is suffering. When sentiment improves I would expect the discount to narrow and the NAV to rise. This may be some months (even years) away, but Lowland is one to tuck away for the long term.
On another note. I do follow the HFEL board, but have decided not to participate as some posters are unconstructively destructive. I don't trade IT's but take a 5-10 year view, my doubts about the sustainability of the HFEL dividend remain. Recent lows may have marked a turning point for capital improvement. My criteria for IT investing is based on sustainable income growth, which is why I will not add to HFEL currently.
Goldpig |
Have I missed a fact sheet or report? It's a good price to buy, providing a good yield too. |
Time for a strong rally, given the positives for the underlying assets in this week's data - and given the extent of the discount to fair value (now over 10%).... |
Thank you! Mine is yet to with II. Rather odd. I have some similar themes in my portfolio: I have tried to build a good dividend payer in each market, and some exposure to smaller companies.Asia: HFEL, MMIT, FCSS, BGSUK: MRCH, CTY, LWI, THRGEurope: EATUS (kind of): MNLJCH: I have a very small holding in, and think at the prices this year, it has been on the cheap list. Big companies, discount and paying about 5% is good enough for me. I know it had quite the drop, but that was due to JPM selling a huge amount (or so I remember reading), the assets are solid. |
Hi InvestingDad,
Yes, the dividend was credited into my ISA this afternoon.
I have been adding to my LWI holding (on weakness) and now have 30,000 Lowland shares in my ISA.
Being a multi-cap trust has held LWI back and made it quite volatile, but it fits really well into my IT portfolio, as some of my other holdings mainly investing in the UK (eg. MRCH) tend to focus on larger companies. If/when there is more confidence I expect LWI will start to outperform.
My current ISA Investment Trust portfolio now consists of:
Asia: AAIF, HFEL
Global: MYI
UK (mostly): DIG, EDIN, JCH(new holding this tax year), LWI, MRCH.
Goldpig |
Is the dividend paid out today? I like this trust, as explained in my last post, it seems to have a good balance and pays out about 5% right now. Buying around 110p seems a no-brainer when it hits. It could take a little while longer as I still forsee a hike or two more, and there will be a lag effect of these increases. But I am going to keep adding here. |
Positive mention in the Telegraph at the weekend.....market finally moving towards funds with smaller companies exposure, which is why Lowland has underperformed as rates have risen. |
I've been buying this at near 10% discount regularly since September. Considering the big holdings are safe and not too dissimilar from other income trusts but then have some smaller companies exposure it seems to be a good pick. Not to mention the near 5% dividend. I have about 12.2% profit now. |
Hi drectly,
Thanks for highlighting the Questor article. The number of trades today is well above normal daily average and I agree the article has probably pushed up the price.
I have been adding to my LWI holding since January as I like the long-term future prospects here. Very good discount to NAV, very good yield, and still under many investors radar. I will be adding further on price setbacks.
Goldpig |
Positive comment in Questor / Telegraph is probably the reason for up a couple of pence today. Basically says better than cash for long-term income, good long-term record. |
I like Lowland and hve held for a number of years. It's had a tough time capital wise, but the dividend is still very good. Should bounce back on the capital side eventually as well. |
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