fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

LF Lindsell Train UK Equity

  • 349.88p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 503.40p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.60%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.65%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 1.60%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 September 2021, fund data last updated 13 January 2017

The fund aims to achieve capital and income growth and provide a total return in excess of that of the FTSE All-Share Index, by investing in a concentrated portfolio of UK equities. Some overseas stocks will also feature. Manager Nick Train invests in companies he describes as exceptional, defined as those that will be profitably in business in 20 years’ time. He finds the bulk of these companies in the food and beverage, internet/media/software, financials and healthcare industries.

Fund summary

Sector UK All Companies
Structure OEIC
Launched
Size £6,538m
Yield 1.60%
Charging basis 50% Income 50% Capital
Dividends paid 31 Jan, 30 Sep

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.60%
Ongoing charges figure 0.65%

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Investment process

The fund invests primarily in shares quote on the London Stock Exchange, including AiM. However, it can also invest in other global markets. The manager looks for durable, cash-generative businesses that will still be profitably in business in 20 years’ time. A sustainable high return on equity and low capital intensity are important fundamentals in identifying potential buys, before he calculates an intrinsic value relative to the share price. He believes that companies that are properly researched along these criteria offer relatively low risk, therefore he forms a highly concentrated portfolio. This will typically be focused on consumer franchises, but will also include owners of intellectual property and marketplaces. Stock turnover is very low as Train is relatively insensitive to changes in valuation, considering the quality of the business more important. The portfolio will typically look very different from the FTSE All-Share index so performance is likely to substantially deviate from its benchmark.

Lindsell Train is a London-based boutique, founded by Michael Lindsell and Nick Train in 2000 and specialising in UK, Japanese and Global equity portfolios. The duo have a shared investment philosophy, influenced by Warren Buffett, of focusing on quality companies. They believe such companies are rare, so they buy concentrated portfolios with significant stock and sector concentrations and hold them for the long-term. As a result performance is likely to diverge from the benchmark, but over time results have been extremely successful.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Sector breakdown

Financial Services 25.00%
Beverages 22.00%
Consumer Goods 16.00%
Media 15.00%
Food Producers 7.00%
Software 6.00%
Support Services 4.00%
Money Market 2.00%
Travel 2.00%

Portfolio

The portfolio will consist of between 20-30 stocks and is likely to have a turnover of between 10-20% on a 5-10 year horizon.

Key Investor Information - Income

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Key Investor Information - Accumulation

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