LF Lindsell Train UK Equity Fund Accumulation
Rated Fund 2016-2018. Backs big brands
Managed by seasoned and talented UK equity manager Nick Train, this fund won Money Observer's Best Larger UK Growth Fund award in 2015.
Launched in 2006, it is often regarded as the open-ended fund equivalent to the Finsbury Growth & Income investment trust, which Train also manages. The investment portfolios are similar, featuring household names such as Unilever and Burberry. Both are managed using the same investment approach that targets absolute returns.
Train stresses that he cares about maintaining or growing the real value of investors' capital and income over time, rather than about outperforming a stock market index.
Despite their similarities, Lindsell Train UK Equity falls into the Investment Association's UK all companies sector, while the trust is categorised under UK equity income. Lindsell Train UK Equity has a yield of almost 2 per cent, but growth investors can opt for the 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, seeking out durable, cash-generative franchises that he can invest in.
He finds the majority of his candidate investments in a select group of broad industry categories — consumer branded goods, media, pharmaceuticals and retail financial services. His portfolios are normally concentrated into 20 to 35 holdings and turnover is kept to a minimum.
Given the stellar run for many of his portfolio companies, investors should be prepared to hold this fund for the long term.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Diageo PLC||10.07 %|
|Unilever PLC||9.79 %|
|RELX PLC||9.78 %|
|London Stock Exchange Group PLC||8.69 %|
|Hargreaves Lansdown PLC||8.53 %|
|Burberry Group PLC||7.88 %|
|Schroders PLC||6.50 %|
|Mondelez International Inc Class A||6.37 %|
|Heineken Holding NV||6.32 %|
|Sage Group (The) PLC||5.55 %|
|United Kingdom||83.07 %|
|United States||8.19 %|
|Consumer Defensive||37.76 %|
|Consumer Cyclical||27.64 %|
|Financial Services||25.68 %|
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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