Nick Train

High-conviction investment trusts can be a risky but rewarding ride

Investors are often told that they shouldn’t put all their eggs in one basket. However, there is an alternative option: put all the eggs in the same basket but pick the eggs with care and guard that basket really, really closely.

The investment trust structure allows fund managers to take punchier positions in their portfolios. Open-ended funds do not allow their managers to hold more than 10% of the trust’s assets in any one company. There are also rules on how much of an individual company they can own. Investment trusts aren’t subject to the same restrictions.

Nick Train sees two of his funds lose their gold star status

Two of Nick Train’s funds have lost their Morningstar Gold status, owing to concerns over liquidity.

The £6.7 billion LF Lindsell Train UK Equity has been rated down from Gold to Bronze, while Finsbury Growth & Income investment trust, with a net asset value of £923 million, has seen its gold star status replaced with silver. 

Lindsell Train UK Equity sees investors head for the exit

Lindsell Train UK Equity saw its largest ever withdrawals in September, according to new data released by Morningstar.

Over the course of the month, the fund, managed by Nick Train, saw net withdrawals totalling £374 million.

Figures for the year are, though, in positive territory, with net inflows standing at £193 million.

Lindsell Train Investment Trust is on an 85% premium: why are investors buying?

Can you explain how Lindsell Train Investment Trust (LTI) can trade at a premium of 75% above net asset value (quoted on interactive investor’s website in mid-April)? Does this effectively mean investors believe the fundamental investments this trust has already made will be worth 75% more, within a reasonable timescale? Why would, or should, anyone pay such a premium?