Lindsell Train Global Funds plc - Lindsell Train Japanese Equity Fund B Sterling Quoted Inc
Rated Fund 2016-20. Backs the best brands for ‘exceptional’ performance
Lindsell Train Japanese Equity has consistently outperformed the Topix index. It won the Best Japan Fund title in Money Observer’s 2018 awards and was runner-up in 2019. It has been managed by Michael Lindsell since 2004. The fund remains relatively small, but it has attracted a growing following: assets almost doubled in value during 2019 to just over £500 million. Adrian Lowcock, head of personal investing at Willis Owen, attributes the fund’s outperformance to “Lindsell’s unwavering adherence to the investment process”.
Lindsell believes only a few companies meet his requirements for ‘exceptionalism’, so he concentrates the fund’s assets in 20-35 holdings. He focuses on firms with sustainable business models and/or established, resonant brands that have been able to generate cash and profit over the long term, as he invests for the very long term.
He normally sells a company when its share price reaches a level considerably at variance with his valuation target and then only when he sees alternative, undervalued and exceptional businesses he would like to buy. The fund’s largest holding is Nintendo, which accounts for almost 10% of assets and whose shares rallied by an impressive 10% last November. That was driven by demand for its popular Switch console and cheaper portable version, Switch Lite. Lindsell says these appealed to a younger demographic, helped by the pre-Christmas release of Pokémon titles Pokémon Sword and Pokémon Shield. He expects the company to post strong end-of-year sales driven by China, the largest games market in the world.
Narrative and ratings content all as of 1 January 2020.See all Money Observer rated funds
|Nintendo Co Ltd||9.15 %|
|Kao Corp||9.09 %|
|Shiseido Co Ltd||7.05 %|
|Astellas Pharma Inc||7.05 %|
|OBIC Business Consultants Co Ltd||6.97 %|
|Takeda Pharmaceutical Co Ltd||4.81 %|
|Mandom Corp||4.74 %|
|Kirin Holdings Co Ltd||4.71 %|
|Square Enix Holdings Co Ltd||4.70 %|
|Milbon Co Ltd||4.65 %|
|Consumer Defensive||48.19 %|
|Communication Services||14.32 %|
|Financial Services||6.36 %|
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.
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.