Lindsell Train has another stellar year – although the premium remains stubbornly high.
The NAV of Linsell Train Investment Trust (LTI) rose by 30.0% (total return) in th year to 31 March 2018. It outperformed its own benchmark, which returned 4.0%. For comparison, the MSCI World Index in Sterling rose by 1.3%. The company’s share price returned by 29.6%, reflecting the rise in the NAV.
The premium to its NAV ended the year at 38%. It has been consistently high. It is currently off its peak, which is about 42%.
The largest contributor to performance overall was the company’s holding in the management company Lindsell Train Limited (LTL), which has performed well as a result of the growth in assets under management to c. £14 billion and the investment performance of the open-ended funds that it runs. In his statement, investment manager, Nick Train, reports that the open-ended funds are also held in the portfolio of the company and have also been key contributors to performance – the Global and Japan funds were up 38% and 31% respectively last year.
Nick Train also reported that other holdings of note, including A.G. Barr, Diageo, eBay and Heineken.
In his report, chairman Julian Cazalet writes a full statement of the board’s assessment of the risk of the holding of LTL and its dependence on the founders, which they see as low.
LTI : Lindsell Train has another stellar year