Law Debenture Corporation plc (LON:LWDB) has announced its monthly factsheet for July 2026.
Fund Managers’ Comments
In July the Trust’s net asset value rose 3.1% (with debt at fair value), underperforming the FTSE All-Share which rose 3.7%. UK equity markets materially outperformed the US, with the UK index likely benefitting from its relative lack of technology weighting at a time when investors globally were reappraising the valuation applied to some AIexposed shares. Among the best performers in the UK market during July were those seen as at risk of AI disintermediation, including data services
provider Relx, which at its latest quarter reported an acceleration in sales growth in its legal division (the division seen by the market as most at risk from AI).
Among the top ten largest contributors for the portfolio in July, two were driven by takeover offers – ferry company Irish Continental and actuator manufacturer Rotork. This continues a trend of heightened takeover offers year to date, which in our view is further evidence of the valuation opportunity that currently exists within UK equities.
The largest detractor during the month was Ceres Power, a licensor of fuel cell technology. This had no material company-specific news but had performed strongly earlier on in the year (during which we had taken substantial profits in the holding).
Following the recommended takeover offer for Rotork, we added to the holding in mining equipment and services provider Weir, which in our view is another good quality UK engineer making attractive margins. Elsewhere we added to existing holdings in defence services provider Babcock, pharmaceutical company GSK and at the smaller end of the UK market holdings in sandwich producer Greencore, retailer Dunelm and textile rental company Johnson Service Group. These additions were funded by sales (and reductions) of companies that have received takeover offers (specifically Easyjet, Segro and Rotork) and some profit taking in Balfour Beatty which has performed well for the portfolio over time.
James Henderson and Laura Foll
Janus Henderson
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.
