Investments from Law Debenture's portfolio should yield substantial gains, centered around neglected shares

Law Debenture, a prominent player in the financial sector, is set to host an evening seminar in association with CityAM on Wednesday, 17 September. The event is part of Law Debenture's Widening Investor Networks (WIN*) financial education initiative.

The seminar will feature panel discussions on UK investing opportunities and minimising taxes and costs, moderated by Rupert. The event aims to provide insights into Law Debenture's investment strategies and the current market landscape.

Law Debenture's steady income stream is a testament to its success, contributing approximately a third of the trust's dividend distributions historically. The professional services business forms a significant part of the trust's operations.

The trust's portfolio is managed by James Henderson and Laura Foll of Janus Henderson. They employ a value approach, seeking companies that are "a bit out of favour, but have really good medium- to long-term potential." This strategy has proven successful, with Law Debenture being one of the best-performing UK equity trusts over both the short and long term.

Over the past three years, Law Debenture has generated a share price total return of 48%, compared with 35.5% for the FTSE All-Share. The portfolio, which contains about 150 stocks, requires a diverse structure due to the higher level of risk associated with the value approach.

The managers maintain a "long list" of potential equities to add to the portfolio. They have been taking advantage of weakness in the investment-trust sector, looking for trusts trading at big discounts where underlying assets are "perfectly all right."

Notable winners in Law Debenture's portfolio include M&S and Rolls-Royce. The trust's investment in M&S was influenced by Archie Norman's appointment as chair, which was seen as a significant factor in the investment decision. Despite M&S not offering dividends at the time, its recovery potential was deemed promising.

Similarly, Rolls-Royce was acquired based on its potential for recovery. The managers believed that the market's perception of M&S as a business in structural decline was an overestimation. Over the past five years, both M&S and Rolls-Royce have been significant winners in Law Debenture's portfolio.

The UK economy is experiencing growth in some areas and decline in others, but Law Debenture still sees it as the market offering the most value. The trust takes profits when shares have significantly increased in value and are no longer considered cheap.

Over the past decade, Law Debenture's return has been 187.5%, against 92.7% for the FTSE All-Share. The trust's net asset value (NAV) is divided between an investment portfolio (82%) and a professional services business (18%).

However, it's important to note that the specific portfolio companies and their net asset value proportions in Law Debenture's portfolio are not detailed in the provided sources. Law Debenture does not offer any free magazine issues or a free twice-daily newsletter.

The seminar promises to provide valuable insights into Law Debenture's strategies and the current market landscape. It's an excellent opportunity for investors to learn more about this top-performing UK equity trust.

Investments from Law Debenture's portfolio should yield substantial gains, centered around neglected shares