LF Lindsell Train UK Equity Fund Accumulation
Rated Fund 2016-19. Backs big brands
This fund, managed by seasoned and talented UK equity manager Nick Train, won Money Observer’s Best Larger UK Growth Fund award in 2015 and has been a Rated Fund since 2016.
Launched in 2006, it is often regarded as the open-ended fund equivalent of the Finsbury Growth & Income investment trust, which Train also manages. The investment portfolios are very similar in that they feature household names such as Unilever and Burberry. Both are managed using the same investment approach, which targets absolute returns.
Train stresses that he cares more about maintaining or growing the real value of investors’ capital and income over time than outperforming a stockmarket index.
Despite their similarities, Lindsell Train UK Equity falls into the Investment Association’s UK all companies sector, while the investment trust is categorised under UK equity income. Lindsell Train UK Equity has a yield of 2%, but investors can opt for income to be accumulated.
The investment process used by Train across all of his funds is based on his conviction that inefficiencies exist in the valuation of exceptional quoted companies. These are the businesses he focuses on. He seeks out durable, cash-generative franchises to invest in.
He finds the majority of his candidate investments among a select group of broad industry sectors: consumer branded goods, media, pharmaceuticals and retail financial services. His portfolios are normally concentrated into 20-35 holdings and turnover is kept to a minimum.
Given the stellar performance of many of the companies in his portfolio, investors should be prepared to hold this fund for the long term.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Unilever PLC||10.41 %|
|RELX PLC||10.31 %|
|Diageo PLC||10.24 %|
|London Stock Exchange Group PLC||9.87 %|
|Mondelez International Inc Class A||9.15 %|
|Burberry Group PLC||8.32 %|
|Hargreaves Lansdown PLC||7.23 %|
|Schroders PLC||6.35 %|
|Sage Group (The) PLC||6.29 %|
|Heineken Holding NV||5.76 %|
|United Kingdom||81.01 %|
|United States||9.16 %|
|Consumer Defensive||40.35 %|
|Consumer Cyclical||27.96 %|
|Financial Services||25.40 %|
Nick Train co-founded Lindsell Train Limited in 2000. He is the portfolio manager for UK equity portfolios and jointly manages Global portfolios. Before founding Lindsell Train he was head of Global Equities at M&G Investment Management, having joined there in 1998 as a director. Previously he spent 17 years (1981 – 1998) at GT Management which he left soon after 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. Nick has a BA honours degree in Modern History from Queen’s College, Oxford.
Data provided by Morningstar.
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