Lindsell Train says it has continued to make good progress in the first six months of the current financial year. Its net asset value per share (adjusted to take into account the payment of the dividend in September) was up 24.5% compared to a rise in the benchmark of 2.0% and in the MSCI World Index (in Sterling) of 17.2%. Although the holding in the manager, Lindsell Train Limited, was not the best performing asset – that accolade was taken by Nintendo, with a stunning price rise of 82% – its value nevertheless was up by 40% (total return). By dint of Lindsell Train Limited’s large weighting within the portfolio – 35.6% of NAV – it was once again the biggest positive contributor to returns. This good performance has incurred a provision for a performance fee of GBP1.8m that will only crystallise if it is sustained to the end of March 2017.
The report says that Lindsell Train Limited continues to grow. Its funds under management were up from GBP6.7bn at the end of March to GBP8.6bn at the end of September, a rise of GBP1.9bn or 28%. Of this uplift, just over 50% was accounted for by net new flows, of which the large majority was directed towards their managed funds, especially the UK and Global funds. Their funds now make up 59% of total funds under management, the highest proportion to date.
There were no changes in the portfolio in the last six months other than some additions to the holding in the London Stock Exchange following the announcement of its intended merger with Deutsche Börse.
LTI : Lindsell Train’s NAV benefits from stake in expanding management company