Lowland duo halve gearing on valuation grounds

'Tension in the market'

Jayna Rana
clock • 2 min read

Janus Henderson's James Henderson and Laura Foll have been gradually reducing the gearing on their £411m Lowland investment company to well below average levels, as a lack of buying opportunities present themselves in the UK market.

Net gearing is now at a low of 6% on the trust, down from around 13% at the start of the year, and well below the average of 15% over the last decade, according to Winterflood data.   Foll said the reduction has been a gradual shift and is not the result of a top-down market call. "The gradual sell-down is completely valuation driven. We are finding lots of our good quality companies with strong management teams and earnings momentum are changing to earnings multiples within the high teens or early twenties range," she said. "Naturally, the best thing to do is to reduce those names...

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