Lindsell Train has reported a 27.9% return on net assets and a 23.9% return to shareholders for the year to the end of March 2015. These numbers compare well to a 3.8% return on the fund’s benchmark and a 19.7% return on the MSCI World Index.
They say that, once again, the main contribution to performance came from the fund’s investment in Lindsell Train Limited – the manager – this rose in value by 46% and they say its income distribution contributed 60% of the fund’s revenues. The value rose as funds under management rose by £1.6bn to £5bn. They also say the CF Lindsell Train UK Equity Fund has generated excess returns 7.0% above its benchmark since inception (2006), the Japanese Equity Fund 2.2% (inception 2004) and the Global Equity Fund 5.4% (inception 2011). This strong performance is attracting new investors.
2.5% Consols – the UK government bond that was the fund’s benchmark, is being redeemed – good news for them in that they made a capital profit out of holding this but they needed to find a new benchmark. The Board have decided to adopt a benchmark derived from the annual average running yield of the longest-dated UK government fixed rate bond plus a premium of 0.5%. A minimum yield of 4.0% would be imposed, which equates to the yield on the benchmark prior to the government’s first announcement of its intention to redeem its undated Gilt issues.
To get round the AIFM rules they have decided to eliminate all forms of borrowing from the company.
They are paying a dividend of £6.42 plus a special 78p dividend for the year.
LTI : Strong performance from Lindsell Train on growing FUM