The Law Debenture Corporation (LWDB)

Business description

LWDB’s investment objective is to achieve long-term capital growth in real terms and steadily increasing dividend income to shareholders. The aim is to achieve a higher rate of total return than the FTSE All-Share index through investing in a global portfolio diversified both geographically and by industry. LWDB’s independent professional services (IPS) business provides a regular flow of income, which enhances the dividend income from the equity portfolio.

Stock data

Market cap.£698.9m
Last close590.50p
High / Low (52 weeks)613.0p / 491.0p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamInvestment Companies
SectorInvestment Companies

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Latest research

Investment summary

The Law Debenture Corporation (LWDB) is one of the longest established investment trusts, with a 40-year record of raising or maintaining its dividend. The trust holds a diversified global portfolio, primarily invested in UK equities, and is differentiated by its independent fiduciary services (IFS) business, which provides a regular income stream. This underpins the steadily rising dividends and allows the manager flexibility to pursue high return but low yield investments. The discount has widened since the move to reporting NAV including the IFS business at fair value, even with LWDB’s fair value NAV total return outperforming its FTSE All-Share index benchmark over one, three, five and 10 years. The trust has a competitive 0.45% ongoing charge and its 3.0% yield is one of the highest in the sector.

Last updated on 20/12/2016

Key management

Caroline J. Banszky, MD

Company address

Fifth Floor,
100 Wood Street,
London
EC2V 7EX
United Kingdom
+44 (0)20 7606 5451
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