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

Japanese Equities

Rated Fund 2016-2018. Backs the best brands

This is a Dublin-registered fund that has been managed by Michael Lindsell since 2004. His aim is to construct a concentrated portfolio of 'exceptional' companies, with a focus on those firms with truly sustainable business models and/or established, resonant brands. In building the portfolio he focuses on companies demonstrating long-term durability in cash and profit generation.

It is a relatively small fund at £170 million, and is very concentrated, with typically only 20 to 35 holdings (26 in mid 2017). This is partly because Lindsell believes that only a very limited number of companies meet his requirements; but those that do he holds for the long term.

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 per cent 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 product provider, and Nintendo. Kao holds at least a top-three position in every major toiletry and laundry category in Japan. Nintendo, meanwhile, is responsible for most of the best-selling games of all time. Its share price soared more than 50 per cent in the first half of 2017 following the successful launch of its new console, the Switch.

Narrative and ratings content all as of 1 January 2018.

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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
0.85 %
Risk Rating
1
3 Year Sharpe
1.55
3 Year Alpha
10.99
Yield
1.2 %
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 9.42 %
Nintendo Co Ltd 8.79 %
Shiseido Co Ltd 7.64 %
OBIC Business Consultants Co Ltd 7.06 %
Astellas Pharma Inc 6.55 %
Mandom Corp 5.07 %
Hogy Medical Co Ltd 4.98 %
ITO EN Ltd Participating Preferred 4.97 %
Kirin Holdings Co Ltd 4.88 %
Milbon Co Ltd 4.87 %
Region %
Japan 100.00 %
Sector %
Consumer Defensive 42.86 %
Technology 22.14 %
Healthcare 20.42 %
Financial Services 5.57 %
Name
Lindsell Train Ltd
Address
SW1E 6NN, 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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