The Lowland Investment Company looks for exciting growth companies in the UK that over the long-term will grow the value of shareholders’ investments, while providing a steady dividend income.

What does it do?

Since 1962 the Trust has focused on investing in all sizes of UK companies across a wide variety of industries and sectors, with the aim of growing shareholders’ money in the medium to long-term.

How does it do it?

With roughly 1,000 companies to choose from, the Trust seeks to invest in the next generation of exciting companies that will deliver growth for shareholders. The Trust also invests in larger, well-known companies to provide a consistent dividend and a balance in the portfolio. Its focus on long-term growth means the Trust usually holds an interest in companies for about five years.

Why do Laura and James do it?

We employ a mildly contrarian investment style, and by that we mean we often invest at the point where a company is unloved or out of favour, or perhaps simply unknown – smaller companies are often not covered by brokers and analysts.

We like to get to know the companies by going on site visits to meet the management team and getting to know them – and this is where we think we have an edge.

The key feature of the Trust is the diversity of companies it invests in. There are companies you will not find in other investment trusts because they are small and less known, but over time we believe they can become the strong growth companies of tomorrow.

What are the Risks?

Share prices go up and down. If you sell your shares at a lower price than you bought them, you will have lost money. You should be comfortable with this risk before investing. See Step 2 for more information on risk, if you haven’t already.

Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.

This Trust is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this Trust.

The return on your investment is directly related to the prevailing market price of the Trust’s shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Trust. As a result losses (or gains) may be higher or lower than those of the Trust’s assets.

The Trust may borrow capital (gearing) as part of its investment strategy. If the Trust utilises its ability to gear, the profits and losses incurred by the Trust can be greater than those of a trust that does not use gearing.

Some of the investments in this portfolio are in smaller companies shares. They may be more difficult to buy and sell and their share price may fluctuate more than that of larger companies.

Source: Morningstar