Lowland Investment Company Portfolio Manager James Henderson talked with Proactive at the One2One Investor Forum about the trust’s long-term investment strategy, its contrarian philosophy, and why the UK market continues to present compelling opportunities. Henderson explained that the trust has maintained a diversified approach across large, medium, and small-cap companies, with a focus on growing capital to deliver sustainable income over time. He noted that smaller companies, while more volatile, have historically contributed strongly to returns. A key theme of the discussion was contrarian investing. Henderson emphasised that the trust deliberately moves against prevailing market sentiment, buying into areas that are out of favour. He highlighted how this approach is currently being applied by rotating capital away from large-cap stocks and into smaller companies, where valuations appear more attractive despite recent headwinds. He also pointed to ongoing takeover activity in the UK small and mid-cap space as evidence of undervaluation, noting that strategic buyers are recognising value across a range of sectors. Despite broader concerns about the UK economy, Henderson stressed that the trust focuses on individual companies rather than macroeconomic conditions, investing in businesses with strong management and disciplined capital allocation. For more insights like this, visit Proactive’s YouTube channel, give this video a like, subscribe, and enable notifications so you never miss future content. #LowlandInvestmentCompany #JamesHenderson #UKInvesting #ContrarianInvesting #SmallCapStocks #InvestmentTrust #StockMarketUK #ValueInvesting #PortfolioManagement #IncomeInvesting #UKStocks

Lowland Investment Company (LON:LWI) co-fund manager James Henderson talked with Proactive's Stephen Gunnion about the trust’s investment strategy, performance, and approach to balancing income with long-term capital growth. Henderson explained how the fund differentiates itself by blending large, medium, and small-cap companies to reduce volatility while capturing higher growth potential. Henderson highlighted that smaller companies have historically delivered stronger returns, noting: “Over that period the smaller companies have given the best returns, both in capital and income.” However, he emphasised that diversification across company sizes helps smooth performance and manage risk. He also outlined the trust’s value-driven approach, focusing on out-of-favour companies with strong underlying businesses. He pointed to examples such as Rolls-Royce, where the fund invested before operational improvements materialised. The strategy centres on identifying companies with strong turnover potential that can improve margins over time. Discussing income, Henderson made clear that capital growth is the priority, stating that dividends are a natural outcome of growing businesses rather than the primary target. The trust currently offers a yield of 3.6% as at 28 February, 2026. Henderson also addressed the trust’s discount to NAV and recent performance, noting strong longer-term returns driven by takeover activity and recovery in undervalued UK stocks. Henderson expects improving sentiment toward UK equities and smaller companies to support future growth. For more insights like this, visit Proactive’s YouTube channel, like this video, subscribe, and enable notifications so you never miss an update. #LowlandInvestmentCompany #JamesHenderson #UKEquities #ValueInvesting #IncomeInvesting #DividendGrowth #SmallCapStocks #InvestmentTrust #StockMarketUK #WealthManagement #FundManagement