The Law Debenture Corporation
One plus one equals three
29 February 2024
FY23 results for The Law Debenture Corporation (LWDB) show this well-proven, rare combination of a UK investment trust and the cash-generative professional services operating business (IPS) continuing to generate strong results. Performance was ahead of the broad UK equity market benchmark, within which IPS growth was just above the upper end of its mid- to high-single digit growth target and DPS was increased by 4.9%. The results build on LWDB’s long-term record of outperformance versus the benchmark and peers and above average DPS growth. MORE »
See the difference
3 August 2021
The Law Debenture Corporation (LWDB) has reported on a successful first six months of 2021, building on its long track record of outperformance versus the benchmark over one, three, five and 10 years. Additionally, in its 42nd year of maintained or increased dividends, Q121 DPS increased by 5.8%. The portfolio benefited from its exposure to UK and international economic recovery and the IPS business delivered strong revenue growth and earnings growth in line with the mid- to high single-digit target. MORE »
Strong IPS performance underpins FY20 returns
26 February 2021
The Law Debenture Corporation (LWDB) made the most of its structure in 2020, with the revenue contribution from its independent professional services (IPS) business – which saw another year of strong growth – helping to overcome a shortfall in portfolio income after widespread UK dividend cuts, and driving an unanticipated 5.8% increase in the total FY20 payout. NAV total returns for the year ended 31 December were modestly positive, compared with double-digit declines for many UK Equity Income peers. The diversity of the underlying IPS businesses means CEO Denis Jackson is sanguine about prospects even in uncertain market conditions, while fund managers James Henderson and Laura Foll will continue to capitalise on the investment freedom the IPS income contribution provides. MORE »
Proof of proposition in challenging H120
5 August 2020
The Law Debenture Corporation (LWDB) has reported another strong set of results for its independent professional services (IPS) business in H120, with EPS growth remaining in the target mid- to high single-digit range despite a more challenging economic backdrop. With the trust’s largely UK investment portfolio having been hit by the widespread stock market sell-off in February and March, IPS has provided a larger than average contribution to revenue returns. This means fund managers James Henderson and Laura Foll can continue to search for attractive total return opportunities in a broad range of sectors, while maintaining LWDB’s focus on both capital appreciation and above-inflation dividend growth. MORE »
Step change in dividend supported by IPS income
27 February 2020
The Law Debenture Corporation (LWDB) saw a NAV total return of 17.9% (cum-fair) in FY19, with its share price total return of 24.5% comfortably outstripping the broad UK stock market. As well as a c 25% increase in portfolio income, LWDB’s independent professional services (IPS) businesses saw another year of good growth, providing important support for a step change in the annual dividend payment (+37.6%, with the final dividend up 50%, and moving to quarterly dividends from FY20). Portfolio managers James Henderson and Laura Foll continue to find attractive investment opportunities, particularly among unloved UK domestic stocks, while CEO Denis Jackson sees growth potential across the IPS businesses as a result of increased market focus on environmental, social and governance (ESG) issues. MORE »
A robust H119 for trust portfolio and IPS
24 July 2019
The Law Debenture Corporation (LWDB) has delivered robust NAV and share price gains in the first half 2019, supported by an upward revaluation of its independent professional services (IPS) business, which continues to grow well in spite of a tougher capital markets backdrop. The managers of LWDB’s investment portfolio have increased net gearing from c 3% to c 7% in order to take advantage of attractive valuations in selected UK equities. While more than 20% of its diversified portfolio is still invested overseas to gain access to opportunities unavailable in the UK, LWDB has recently moved from the AIC’s Global sector to the UK Equity Income sector, where its NAV total returns currently rank it in the top quartile over three, five and 10 years. MORE »
Solid foundations for continued future growth
1 March 2019
The Law Debenture Corporation (LWDB)’s NAV total return outperformed its benchmark FTSE All-Share Index in FY18, protecting investors from c 40% of the market decline. While returns for the year were negative, LWDB has performed well in absolute terms over three, five and 10 years to 31 January 2019, producing strong NAV and share price total returns under managers James Henderson and Laura Foll. The independent professional services (IPS) business, which makes up c 14% of LWDB’s NAV on a fair value basis, performed strongly in its first full year under the new executive team of Denis Jackson (CEO) and Katie Thorpe (CFO), with 9% net revenue growth after seven years of broadly flat returns, contributing c 37% of LWDB’s revenue earnings per share. With c 75% of LWDB’s assets invested in the UK, a planned move from AIC Global to a UK sector should facilitate comparison with more similarly invested funds. MORE »
Firing on all cylinders
30 July 2018
The Law Debenture Corporation (LWDB) is unusual among investment trusts in that it runs a long-established independent professional services (IPS) business alongside its investment portfolio of global equities. With the corporate entity having refreshed its management team, growth in the IPS business has been strong in H118, and income from the businesses (which include corporate trusts, pension services, corporate services and whistleblowing) provided 30% of LWDB’s net revenue per share, in spite of accounting for only 13.5% of fair value NAV. Meanwhile, the investment trust portfolio has produced strong long-term NAV total return performance versus its FTSE All-Share benchmark, and managers James Henderson and Laura Foll continue to find attractively valued opportunities in the UK, which remains severely out of favour among professional investors. MORE »
Differentiated income and growth
26 September 2017
The Law Debenture Corporation (LWDB) is differentiated by being both an investment trust with a diversified portfolio of global equities and a leading provider of independent professional services through its IPS subsidiaries. The bottom-up managed portfolio is globally diversified with a strong bias towards UK equities. IPS is highly profitable, regularly providing revenue earnings well ahead of its share of NAV, supporting a strong track record of dividend growth and allowing greater flexibility within the portfolio to pursue high-return but lower yield investments. LWDB is benchmarked against the FTSE All-Share index, which it has outperformed over one, three, five and 10 years. Ongoing charges are competitive and the 2.8% yield is one of the highest in the sector. MORE »
Long-established trust with strong dividend record
20 December 2016
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. MORE »
