Lindsell Train Global Funds plc - Lindsell Train Japanese Equity Fund B Sterling Quoted Inc

Japanese Equities

Rated Fund 2016-19. Backs the best brands

A consistently strong performer, Lindsell Train Japanese Equity significantly outperformed the Topix index lost during 2018. It is a worthy winner of the Best Japan Fund title in Money Observer’s 2018 awards.

A Dublin-registered fund, it has been managed by Michael Lindsell since 2004. Its £268 million of assets are concentrated in a small number of holdings, typically between 20 to 35.

This is partly because Lindsell believes only a very limited number of companies meet his requirements for exceptionalism. He focuses on companies with sustainable business models and/or established, resonant brands that demonstrate long-term durability in cash and profit generation.

He only invests in businesses he expects to produce growing real returns for investors over the next 20 years at least. He is then prepared to stick with them until they realise their potential, which means his portfolio turnover is generally low, typically around 10% a year. 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 which he would like to buy instead.

Lindsell’s preference for durable business franchises is evident in the fund’s two largest holdings – Kao, a household products provider, and Nintendo. Kao holds at least a top three position in every major toiletry and laundry category in Japan. Nintendo is responsible for most of the best-selling computer games of all time.

The fund group points to game streaming as a significant trend that is moving the industry towards a subscription-based model. Intellectual property owners with a large back catalogue of high quality game titles, such as Nintendo, should benefit.

Narrative and ratings content all as of 1 January 2019.

See all Money Observer rated funds
Name
Lindsell Train Global Funds plc - Lindsell Train Japanese Equity Fund B Sterling Quoted Inc
Manager
Lindsell Train Ltd
Type
Open Ended Investment Company
ISIN
IE00B7FGDC41
Sector
Japan
Launched
09/03/2012
OCF
0.73 %
Risk Rating
1
3 Year Sharpe
0.79
3 Year Alpha
3.12
Yield
1.5 %
Benchmark
TOPIX TR JPY
To maximise total return over the longer term from a well-diversified portfolio of equities, (and, if considered appropriate, convertible securities) primarily quoted on stock markets in Japan.
Holding %
Kao Corp 9.47 %
Nintendo Co Ltd 8.99 %
Shiseido Co Ltd 7.83 %
OBIC Business Consultants Co Ltd 6.37 %
Astellas Pharma Inc 5.83 %
Square Enix Holdings Co Ltd 5.26 %
Milbon Co Ltd 4.93 %
Hogy Medical Co Ltd 4.92 %
Kirin Holdings Co Ltd 4.88 %
Mandom Corp 4.77 %
Region %
Japan 100.00 %
Sector %
Consumer Defensive 45.94 %
Technology 23.32 %
Healthcare 20.74 %
Financial Services 6.08 %
Name
Lindsell Train Ltd
Address
SW1E 6AU, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Michael Lindsell
Joined 01/31/2004

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.

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