Law Debenture plc (LON:LWDB) has announced its monthly factsheet for September 2026.
In September the Trust’s NAV fell 1.4%, modestly outperforming a FTSE All-Share benchmark which fell 1.9%. Further rises in energy prices, combined with high issuance levels of government and corporate debt are creating upward pressure on borrowing costs. This rise in bond yields is impacting equity market valuations, particularly in the sectors most sensitive to yields such as commercial property. In contrast, commodity producers such as BP and Shell performed strongly. We have added to the holding in BP for the portfolio in recent months, as the current period of higher oil prices should allow them to pay down elevated debt levels at a faster pace.
Among the best performers in September was gene sequencer Oxford Nanopore. A new CEO has laid out what are seen as ambitious but achievable revenue targets for the group, while re-committing to reaching breakeven in the coming years. Elsewhere a number of the industrial holdings including Hill & Smith, Morgan Advanced Materials and TT Electronics performed well. There continues to be substantial takeover activity in the industrials sector (as well as in UK equities more broadly), and in our view this is leading to some scarcity value among the remaining businesses. Among the weakest performers was Flutter Entertainment, where shares fell following an announced ban of online gambling in Brazil, which had previously been seen as one of their growth drivers.
Law Debenture Corporation plc (LON:LWDB) provides a wider range of services including corporate and pension trusts, process agent services, treasury management, corporate services including for special purpose vehicles, structured finance administration and whistleblowing services.
