LF Lindsell Train UK Equity Fund Accumulation
Rated Fund 2016-20. Backs big brands and holds for the very long term
Managed by seasoned and talented UK equity manager Nick Train, this fund won Money Observer's Best Larger UK Growth Fund award in 2015 and has been a Rated Fund since 2016. It is almost a mirror of Finsbury Growth & Income Trust, a newcomer to our line-up for 2020, but we feel this fund deserves to keep its place for those who prefer to access the strategy through an open-ended structure. We considered moving the fund from our core to adventurous picks on account of its highly concentrated portfolio, which was called into question in 2019 as investors pulled money out of the fund.
The top 10 stocks in Lindsell Train UK Equity account for 83% of the portfolio with the largest holding, analytics publisher Relx, making up 10%. In response, Train highlights the liquidity inherent in his approach, which leads him to invest predominately in well-established companies with multi-billion-pound valuations. The fund has no unquoted/unlisted holdings and never has had.
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. The investment process he uses across all of his funds is based on his conviction that inefficiencies exist in the valuation of exceptional quoted companies. "Excellent companies do tend to create great wealth for their patient owners over time, and this is exactly the effect we are hoping to capture with our strategy," he says. Having re-examined the fund's liquidity and its constituent holdings, the selection committee has confirmed its place as a core UK Growth selection.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|London Stock Exchange Group PLC||10.19 %|
|RELX PLC||10.06 %|
|Diageo PLC||9.74 %|
|Unilever PLC||9.19 %|
|Burberry Group PLC||8.81 %|
|Mondelez International Inc Class A||8.77 %|
|Schroders PLC||8.07 %|
|Hargreaves Lansdown PLC||7.61 %|
|Sage Group (The) PLC||6.88 %|
|Heineken Holding NV||5.02 %|
|United Kingdom||82.61 %|
|United States||8.81 %|
|Consumer Defensive||37.09 %|
|Financial Services||29.95 %|
|Communication Services||14.50 %|
|Consumer Cyclical||11.56 %|
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.
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