Although this is catagorized as a global trust, 77% of the portfolio are UK listed equities. The rationale for this is that most of these companies derive a significant proportion of their profits from overseas operations. The remainder of the portfolio are comprised of Europe (7%), N. America (8%) and Asia/Japan (mainly via funds) (8%).
The trust has today issued results for the full year to 31st December 2013 (link via Investegate). Net Assets total return for the year was 28.6% compared to 20.8% for its benchmark FTSE All Share Index. Revenues increased 7.5% to 16.3p per share and the proposed full year dividend will be increased 5.3% to 15p (2012 14.25p). The trust has either held or increased the dividend in each of the past 40 years.
|3 yr comparison -v- FTSE All Share|
(courtesy of Digital Look - click to enlarge)
In addition to the investment trust, it also has a fiduciary services business which contributes to overall profits but the value of this business is not accounted for in the trusts NAV. Earning from this business were 7p per share - if a fairly conservative p/e of 10 is applied, this would value the fiduciary business at 70p per share.
The costs remain low with ongoing charges at just 0.45% and with the added benefit for investors of no performance fee. Also portfolio turnover rate is low at around 10%.
I’m very happy to continue holding LWDB in my SIPP drawdown portfolio and as I said last year .. " it may well become another of my long term buy and hold core holdings".
As ever, please DYOR.
Post a Comment