Law Debenture investment trust (LSE: LWDB), a trust run by investment manager Janus Henderson, and one of the components of the MoneyWeek model portfolio of investment trusts, recorded a fall in its premium relative to its net asset value (NAV, the value of the underlying assets held by the fund).
In the month to 30 April, the trust recorded a premium of 1.01%. This is lower than the previous month where the premium was 1.7%.
The trust’s net asset value slipped by 0.6% in the month to 788p per share, compared to the FTSE all-Share index benchmark’s rise of 0.3%. The trust’s share price fell 796p.
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
However, the trust has still outperformed its benchmark index over the last tear, as the trust’s one-year NAV total return (with debt at fair value) was 10.8%, higher than the benchmark’s return of 8.7%.
I3 Energy, an independent oil and gas company, was the largest positive contributor to relative performance as the company benefited from “higher commodity prices and good cost control”.
Large defensive companies such as Unilever, British American Tobacco and AstraZeneca were the largest detractors from relative performance due to the fund’s underweight exposure in these firms.
These companies saw robust performance during the month as fears of higher interest rates and higher inflation continued to accelerate.
The trust said it opened a new position in agricultural and pharmaceutical company Bayer due to it trading at “an attractive valuation”.
Law Debenture added that it believes Bayer is being underappreciated by the market.
The trust closed positions in Glencore and BHP following a period of strong performance. In March, BHP was the trust’s biggest contributor to relative performance.
GlaxoSmithKline and Shell remained the trust’s two top holdings, representing 3.2% and 2.9% of the fund, respectively.
Oil major BP moved up from fifth place, to third place, representing 2.4% of the fund.
British bank HSBC was the fourth biggest holding, representing 2.3% of the fund.
Mining company Rio Tinto fell from third place to fifth place, holding a 2.3% stake in the trust.
National Grid, a British publicly listed utility moved from seventh position to sixth position. The company represents 1.8% of the trust.
British bank Barclays moved from ninth place the previous month to seventh place. It represented 1.8% of the fund.
Miner Anglo American moved from sixth position to eighth place. The mining company represented 1.7% of the trust. BHP Group was omitted from the top ten holdings.
Sewage and water company Severn Trent moved from tenth place to ninth position. The company’s stake in the company was worth 1.7% of the trust.
Insurer Aviva, which was not part of the trust’s top ten holdings in March, took the tenth spot, representing 1.6% of the trust.
The Law Debenture Corporation is unusual in that it is an investment trust and also a professional services business. Founded in 1889 and listed on the London Stock Exchange, the trust’s objective is to achieve a higher rate of total return than the FTSE Actuaries All-Share Index Total Return.
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsLooking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go? We round up the best investing apps
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
