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LF LINDSELL TRAIN UK EQUITY

LF LINDSELL TRAIN UK EQUITY - Overview

Overview of LF LINDSELL TRAIN UK EQUITY Buy in ISA Buy in Investment Account

The fund aims to achieve capital and income growth and provide a total return in excess of that of the FTSE All-Share Index, by investing in a concentrated portfolio of UK equities. Some overseas stocks will also feature. Manager Nick Train invests in companies he describes as exceptional, defined as those that will be profitably in business in 20 years’ time. He finds the bulk of these companies in the food and beverage, internet/media/software, financials and healthcare industries.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector UK All Companies
Structure OEIC
Launched July, 2006
Size £6,920m
Yield 1.8%
Charging basis 50% Income 50% Capital
Dividends paid 31 Jan, 30 Sep

Charges

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 0.70%

Risks

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 Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Lindsell Train is a London-based boutique, founded by Michael Lindsell and Nick Train in 2000 and specialising in UK, Japanese and Global equity portfolios. The duo have a shared investment philosophy, influenced by Warren Buffett, of focusing on quality companies. They believe such companies are rare, so they buy concentrated portfolios with significant stock and sector concentrations and hold them for the long-term. As a result performance is likely to diverge from the benchmark, but over time results have been extremely successful.

Portfolio

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4
Allocation Proportion(%)
UK 83
Europe 8
North America 9
Japan 0
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 63
Mid Caps 31
Small Caps 6
View all performance data for this fund

Investment process

The fund invests primarily in shares quote on the London Stock Exchange, including AiM. However, it can also invest in other global markets. The manager looks 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 he calculates an intrinsic value relative to the share price. He believes that companies that are properly researched along these criteria offer relatively low risk, therefore he forms 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 Train is relatively insensitive to changes in valuation, considering the quality of the business more important. The portfolio will typically look very different from the FTSE All-Share index so performance is likely to substantially deviate from its benchmark.

Live feed

Bid price(inc) 336.13p
Accum units 465.80p
Fund commentary 13/01/17
Fund data updated on 08/11/19

Asset allocation

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4

Equity Geographic

Allocation Proportion(%)
UK 83
Europe 8
North America 9
Japan 0
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 63
Mid Caps 31
Small Caps 6

Top 10 holdings

As at: 31/08/2019
9.9% Unilever
9.8% Diageo
9.8% Relx Nv
9.4% London Stock Exchange Group
8.7% Mondelez Intl Inc
7.9% Burberry Group
6.9% Hargreaves Lansdown Plc
6.1% Schroders Plc
6% Sage Group
5.5% Heineken Hldg Nv
Source: Trustnet

Sector breakdown

Financials 24%
Beverages 20%
Consumer Goods 18%
Media 16%
Foods 9%
Software 6%
Money Market 5%
Leisure 2%

Portfolio details

The portfolio will consist of between 20-30 stocks and is likely to have a turnover of between 10-20% on a 5-10 year horizon.

Constraints

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
14/15 15/16 16/17 17/18 18/19   3 years 5 years Career 3 years 5 years Career
  0.05% 83.40%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Nick Train

Manager. Train graduated from Oxford University with a degree in Modern History in 1980. He began his investment career at GT in 1981 and began managing funds in 1985, taking over GT Income. Having headed the Pan-European equity team on its formation and risen to Investment Director, he left in July 1998 soon after Invesco's acquisition of GT, moving to M&G. He became their head of global equities in 1999 but left in April 2000 to form Lindsell Train Asset Management with Mike Lindsell.

Track record

Nick Train has 13.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.05%. During the worst period of relative performance (from November 1987 - October 1992) there was a decline of 33% relative to the index. The worst absolute loss has been 25%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 83%.

Periods of worst performance
Absolute -25% (September 1987 - November 1987)
Relative -33% (November 1987 - October 1992)

Other funds managed

Sector record since March 1985 (13 yrs)




About the MRI

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.

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