Fund of the week: Tap income in small businesses
This fund's focus on small-caps has left its UK equity income peers trailing.
Lowland may be in the name, but lowly in performance it isn't. Lowland Investment Company (LSE: LWI) "leaves its UK equity income peers trailing in its wake", says Leonora Walters in Investors Chronicle.
The trust, which has consistently beaten its benchmark in recent years, has delivered a return of 24.7% over one year, 85.4% over three and 325.2% over five years, albeit after some short-term volatility.
Walters puts this down to manager James Henderson's decision to diversify away from the mega caps' favoured by his peers, which he believes are in sectors facing long-term decline.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Lowland's aim is to generate above-average returns of both capital and income over a medium to long-term horizon. It strives to have no more than half of its portfolio value in FTSE 100 stocks, with the rest made up of small and medium-sized firms (SMEs). Around 8% is invested in Aim-listed companies.
The trust has an ongoing annual charge of 0.62%. Around 30% of it is in industrial stocks, such as engineer Senior, while 26% is in financials, 13% in basic material stocks, and 12% in oil and gas.
Touchscreen technology specialist Carclo has proved a recent strong performer for the company, while Henderson has raised its holdings of strong dividend payers, such as BP and Rio Tinto.
Senior Plc | 3.60% |
Royal Dutch Shell | 3.30% |
BP | 2.60% |
Hiscox | 2.40% |
GKN | 2.10% |
GlaxoSmithKline | 2.10% |
Phoenix Group Holdings | 2.00% |
Rio Tinto | 2.00% |
AstraZeneca Plc | 1.90% |
FBH Holdings | 1.80% |
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Will “Liberation Day” strike again?
Donald Trump’s 90-day tariff pause comes to an end on 9 July. Can we expect further market turmoil?
-
Israel claims victory in the '12-day war' with Iran
Donald Trump may have announced a ceasefire in the 12-day war between Israel and Iran, but what comes next depends on what happens internally in Iran