Fact sheet: Lindsell Train Global Equity

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
GLOBAL GROWTH
Sector
FO Equity - International
Fund type
OEIC
Primary aim
GROWTH
Why Money Observer Rates Lindsell Train Global Equity

Rated Fund 2015-2017. Boring is good in the long term

Lindsell Train Global Equity is jointly managed by the eponymous asset management firm's founders Michael Lindsell and Nick Train, supported by James Bullock.

It was launched in 2011 and is typical of the Lindsell Train stable with the managers aiming to achieve its objective of long-term income and capital growth by constructing a concentrated portfolio of 'exceptional' companies.

It only has between 20 to 35 holdings. The managers' focus is on those businesses they believe have truly sustainable business models and/or established resonant brands. In building the portfolio they look for companies demonstrating long-term durability in cash and profit generation.

Lindsell Train was one of the first groups to target absolute returns, though not explicitly. The managers point out that one of their key business principles is to treat investors' capital as they do their own (indeed they invest their own money in all the funds).

They follow four investment principles, namely that investors generally undervalue durable, cash-generative business franchises; concentration can reduce risk; transaction costs are a 'tax' on returns; and dividends matter.

There are times, such as in 2016, when the type of companies that Lindsell and Train invest in go out of fashion. But at the end of 2016 they stressed that they would not be changing their portfolios to move with the times, and instead have doggedly stuck with their current investments.

Although other types of shares may produce more exciting returns at times, they point out that theirs tend to produce 'boring' positive returns year in, year out.

3 Year Performance
Fund Performance89%
Average of Rated Funds Group69.3%
Sector Performance20.6%
Fund information
Fund name
Lindsell Train Global Equity B GBP
Fund manager company
Lindsell Train
Fund type
OEIC
Fund managers
  • James Bullocksince 31/08/2015
  • Nick Trainsince 31/08/2015
  • Michael Lindsellsince 18/03/2011
Accolades
Fund objective
To increase the value of Shareholders’ capital over the longer term from a focused portfolio of global equities, primarily those listed or traded on Recognised Exchanges in developed countries world-wide. The Fund’s investment performance is compared with the MSCI World Index (Developed Markets) and is reported in Sterling.
Benchmark
  • MSCI World index (Developed Markets)
Investment style
Concentrated
Investment method
Shares
Quick stats
1 Year return
21.3%
1 Year rank in sector
16/470
Sector
FO Equity - International
Yield
-
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.77%
Fund size
£3,109m (£1,782m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
107
Top in this sector
Fund name1 Year
Morg Stnly Gbl Opportunity29.4%
CS (L) Gbl Rbt Eq26.4%
Investec Gbl Val Eq25.1%
Guinness Gbl Innovators24.4%
Schroder GAIA EgtnEq23.8%
...more in FO Equity - International

Performance snapshot

Holdings snapshot

  • USA32.7%
    UK26.2%
    Japan24.2%
    Europe ex UK13.7%
    Money Market3.2%
  • Consumer Staples46.2%
    Information Technology20.7%
    Consumer Discretionary14.2%
    Financials8.6%
    Industrials4.8%
  • US Equities32.7%
    UK Equities26.2%
    Japanese Equities24.2%
    Europe ex UK Equities13.7%
    Money Market3.2%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund4.4%7.9%16.5%21.3%89%159.3%
Sector-0.8%1.9%4.5%11.7%20.6%56.1%
Rank within sector2 / 5026 / 4993 / 49216 / 4701 / 3741 / 285
Quartile1st1st1st1st1st1st
Calendar performance
 YTD - 20172016201520142013
Fund20.3%23.8%19.5%10.5%30.2%
Sector9%7.9%0.7%6%21.3%
Rank within sector16 / 48745 / 4434 / 393108 / 34737 / 306
Quartile1st1st1st2nd1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
18.8
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.67
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.77
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
11.29
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
9.88
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
1.61
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.3
Price movement
52 week high2.83
52 week low2.23
Current bid price-
Current offer price-
Current mid price2.8
Region
1USA32.7%
2UK26.2%
3Japan24.2%
4Europe ex UK13.7%
5Money Market3.2%
Industry sector
1Consumer Staples46.2%
2Information Technology20.7%
3Consumer Discretionary14.2%
4Financials8.6%
5Industrials4.8%
6Money Market3.2%
7Health Care2.3%
Asset type
1US Equities32.7%
2UK Equities26.2%
3Japanese Equities24.2%
4Europe ex UK Equities13.7%
5Money Market3.2%
Individual holdings
1UNILEVER8.2%
2HEINEKEN HLDG7.7%
3DIAGEO PLC7.6%
4NINTENDO CO6.8%
5LONDON STOCK EXCHANGE GROUP6.1%
6PAYPAL HLDGS INC5%
7DISNEY (WALT) CO4.9%
8SHISEIDO CO4.9%
9PEPSICO INC4.8%
Management
Fund manager group
Lindsell Train
Fund manager company
Lindsell Train
Fund type
OEIC
Fund objective
To increase the value of Shareholders’ capital over the longer term from a focused portfolio of global equities, primarily those listed or traded on Recognised Exchanges in developed countries world-wide. The Fund’s investment performance is compared with the MSCI World Index (Developed Markets) and is reported in Sterling.
Benchmark
  • MSCI World index (Developed Markets)
Investment style
Concentrated
Investment method
Shares
Fund managers
NameSinceBiography
James Bullock31/08/2015
Nick Train31/08/2015Nick Train began his career as an Investment Manager at GT Management in 1981, having graduated from Queen’s College, Oxford with a second class honors in Modern History (1977-1980). He left GT in June 1998, after 17 years, on its acquisition by INVESCO. At his resignation he was a Director of GT Management (London), Investment Director of GT Unit Managers and Chief Investment Officer for Pan-Europe. He joined M&G in September 1998, as a Director of M&G Investment Management. In June 1999 he was appointed as Head of Global Equities at M&G. He left M&G in April 2000 to co-found Lindsell Train Limited. He is investment adviser to the Worshipful Company of Saddlers.
Michael Lindsell18/03/2011Michael Lindsell is the Investment Adviser to the Close Finsbury Japanese Equity Fund. Michael's career and interest in Japanese equities started over 20 years ago at Lazard Brothers. Successful roles as a Japanese equities fund manager and Head of Japanese equities followed at Scimitar Asset Management Hong Kong, Warburg Asset Management and GT Management's Tokyo office followed over the next 15 years. After being relocated to the UK in 1997, he was appointed head of the combined global product team following the acquisition of GT by INVESCO in 1998. 18 months later, Michael left to establish Lindsell Train Limited, together with Nick Train in 2000.
Compliance
IA Recognised, Reporting Fund Status, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
United Kingdom, Ireland, Offshore
Lindsell Train Global Equity A GBP
Initial charge-
Annual charge1.15%
Min single investment£1,500
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.27%
Total expense ratio (TER)1.15%
Bid price-
Offer price-
Mid price2.6061
CurrencyGBP
Price updated18/08/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNBH4
Lindsell Train Global Equity B GBP
Initial charge-
Annual charge0.65%
Min single investment£150,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.77%
Total expense ratio (TER)0.65%
Bid price-
Offer price-
Mid price2.798
CurrencyGBP
Price updated18/08/2017
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeNBH5
Lindsell Train Global Equity C USD
Initial charge-
Annual charge0.65%
Min single investment£250,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.77%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1.4638
CurrencyUSD
Price updated18/08/2017
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeM3PX
Lindsell Train Global Equity D
Initial charge-
Annual charge0.45%
Min single investment£200,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.57%
Total expense ratio (TER)0.45%
Bid price-
Offer price-
Mid price1.9106
CurrencyGBP
Price updated18/08/2017
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeK6WV
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