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This fund targets capital and income growth from a concentrated portfolio of equities. Management duo Michael Lindsell and Nick Train fund invest worldwide, but focus primarily on developed markets. As with their other funds, they buy what they view as durable, cash-generative business franchises and hold them for the long term. They find the bulk of these companies in the food and alcohol, internet/media/software, financials and healthcare industries. The portfolio mainly consists of larger companies and has historically carried an overweight to Japan.
|Dividends paid||31 Jan, 31 Jul|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.65%|
|Ongoing charges figure||0.77%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
Lindsell Train was established in 2000 by Michael Lindsell and Nick Train and was founded on the shared investment philosophy they developed while working together in the early 1990s. They have a distinct investment style, taking large positions in a small number of high conviction businesses. Given the quality and stability of these businesses this does not necessarily increase risk, and in fact their funds have typically offered a degree of protection in falling markets. Both portfolios and performance have little in common with the index and they have often lagged rising markets, but over time they have outperformed
|High yield bonds||0|
The fund aims to achieve capital and income growth over the long term by investing in a concentrated portfolio of global equities, primarily those listed in developed countries. Despite the focus on developed markets, the managers believe that a company's location can be irrelevant given the increasing level of globalisation. The managers look for durable, cash-generative businesses that will still be profitably in business in 20 years’ time. A sustainable high return on equity and low capital intensity are important fundamentals in identifying potential buys, before the managers calculate an intrinsic value relative to the share price. They believe that companies that are properly researched along these criteria offer relatively low risk, therefore they form a highly concentrated portfolio. This will typically be focused on consumer franchises, but will also include owners of intellectual property and marketplaces. Stock turnover is very low as the managers are relatively insensitive to changes in valuation, considering the quality of the business more important. The portfolio will typically look very different from the index so performance is likely to substantially deviate from its benchmark.
|Fund data updated on||25/09/17|
|High yield bonds||0|
Heineken Holdings 7.6
London Stock Exchange 5.5
Walt Disney 4.8
20-35 companies. Initial position sizes typically 3-6% for major companies, 1-3% for smaller companies.
There are no formal constraints and the portfolio may be concentrated in certain sectors or countries.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.
|Average monthly relative returns||Bestinvest MRI|
|12/13||13/14||14/15||15/16||16/17||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
A Zoology graduate from Bristol University, Lindsell began his investment career at Lazards in 1982. He joined Scimitar Asset Management in 1985, where he was responsible for Pacific and Japanese mandates, before specialising in Japan. In 1989 he moved to Warburg's London where he was director and head of MAM's Japanese fund management. He joined GT, Tokyo, in 1992 and was CIO as well as being responsible for GT’s Japanese funds and global funds sourced out of Japan. He returned to London in 1997 to assume responsibility for GT's Global and International funds, and following Invesco's aquisition of GT in 1998 he became head of the combined global product team. In 2000 he left Invesco to form his own investment management business, Lindsell Train Ltd, along with Nick Train.
Michael Lindsell has 12.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.49%. During the worst period of relative performance (from February 2002 - December 2003) there was a decline of 23% relative to the index. The worst absolute loss has been 36%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 96%.
|Periods of worst performance|
|Absolute||-36% (April 1996 - March 2003)|
|Relative||-23% (February 2002 - December 2003)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.