The Law Debenture Corporation - Outperforming in another strong year

The Law Debenture Corporation (LWDB) has once again proved that while its structure may be unusual, its combination of a UK-biased investment trust and a portfolio of independent professional services (IPS) businesses can deliver for investors. IPS produced a fourth consecutive year of on-target high single-digit growth in FY21, while the investment portfolio bounced back after a tough 2020 in both capital and revenue terms. The IPS contribution to revenues (c 35% in FY21) gives fund managers James Henderson and Laura Foll at Janus Henderson increased flexibility to select lower- or non-yielding stocks that may have better growth potential. That said, the top contributors to performance in the year unusually included such stalwarts as Marks & Spencer and Shell. A 5.5% increase in total dividends for the year secures a 43rd year of growing or maintaining the payout, and the trust currently yields 3.3%.