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

Japanese Equities

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
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
0.72 %
Risk Rating
3
3 Year Sharpe
0.66
3 Year Alpha
5.55
Yield
1.4 %
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 %
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 %
Region %
Japan 100.00 %
Sector %
Consumer Defensive 48.19 %
Healthcare 21.45 %
Communication Services 14.32 %
Technology 8.32 %
Financial Services 6.36 %
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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