Trust in Focus: Law Debenture

Law Debenture trades at a premium, but don’t expect the board to issue shares to manage this down

Jackie Beard, FCSI 1 August, 2014 | 2:53PM

Law Debenture (LWDB) stands out, but beware the premium to its NAV. There are a number of reasons we have confidence here. The manager of Law Debenture, James Henderson, has an established track record in managing UK equity portfolios, particularly with a bias lower down the market-cap scale. Equally, he recognises where his skills do and don’t lie, and hence he prefers to hold Asian experts’ funds for some of the overseas exposure here. He doesn’t try to match those funds to the current market environment; rather, he holds a collection of funds whose styles should cover all types of markets.

Indeed, the fund’s composition is different from global equity peers' in that around two thirds of assets are invested in the UK and that’s unlikely to fluctuate much. Henderson holds stocks directly in the US, UK, and Europe, and in the latter he draws on his colleague Tim Stephenson, as he has found his investment process isn’t effective in Europe.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Law Debenture Corporation Ord546.65 GBX1.04

About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies