Lindsell Train Global Funds plc - Lindsell Train Global Equity Fund B GBP Inc
Rated Fund 2015-19. Managers believe ‘boring’ is best in the long term
Lindsell Train Global Equity, a £5.4 billion fund, is managed by the eponymous asset management firm’s founders Michael Lindsell and Nick Train, supported by James Bullock.
The fund, launched in 2011, is typical of the Lindsell Train stable: managers aim to achieve long-term income and capital growth by constructing a concentrated portfolio of exceptional companies.
It only has 20-35 holdings. The managers’ focus is on “boring” companies that 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 terms of 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 of their funds).
They follow four investment principles in constructing and managing portfolios, namely that investors generally undervalue durable, cash-generative business franchises; concentration can reduce risk; transaction costs are a ‘tax’ on returns; and dividends matter more than you might think.
There are times when the types of companies Lindsell and Train invest in go out of fashion. However, they are not tempted to change their portfolios to move with the times. Instead, they stick doggedly to their philosophy and approach.
Morningstar regards this fund as the “standout choice” for investors comfortable with a highly concentrated portfolio that can look markedly different from the MSCI World index at regional and sector levels. It assigned the fund an analyst rating of silver in 2018.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Unilever PLC||8.28 %|
|Diageo PLC||7.64 %|
|Heineken Holding NV||7.53 %|
|The Walt Disney Co||5.60 %|
|Nintendo Co Ltd||5.37 %|
|Shiseido Co Ltd||5.09 %|
|PayPal Holdings Inc||5.02 %|
|Kao Corp||4.95 %|
|RELX PLC||4.92 %|
|London Stock Exchange Group PLC||4.89 %|
|United States||34.90 %|
|United Kingdom||34.54 %|
|Consumer Defensive||46.56 %|
|Consumer Cyclical||24.68 %|
|Financial Services||15.82 %|
James is Portfolio Manager for global equity accounts having joined Lindsell Train in October 2010. He has a Masters degree in Physics from the University of Oxford and a doctorate in Biomechanics from the University of Cambridge. He passed the Investment Management Certificate in 2012 and was promoted to Portfolio Manager in April 2015.
Michael Lindsell co-founded Lindsell Train Limited in 2000. He is the portfolio manager for Japanese equity portfolios and jointly manages Global portfolios.Before founding Lindsell Train he spent seven years at GT Management, first as CIO.Following the acquisition of GT by Invesco in 1998 he was appointed head of the combined global product team.His previous experience included working at Mercury Asset Management where he was director and head of Japanese fund management,at Scimitar Asset Management where he ran Pacific and Japanese mandates and at Lazard Brothers as an investment manager.
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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