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LF Lindsell Train UK Equity D

Bestinvest LogoUK equity fund with a concentrated portfolio and a long-term approach to adding value.

PRICE (INC)

157.6p

PRICE (ACC)

187.48p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.45%

ONGOING CHARGE

0.49%

YIELD

2.2%

1 YEAR
-4.50%

Prices as at 04 Jul 2022.

Fund commentary last updated 25 Oct 2021.

Past performance is not an indication of future performance.

Capital at risk.

The fund seeks to deliver capital and income growth and generate a return in excess of the FTSE All-Share Index. It aims to do this by investing at least 70% of its assets in “exceptional” UK companies and holding them for many years. Some assets may also be invested in UK-listed global companies. Well-known manager Nick Train focuses on durable, cash-generative companies he believes have been wrongly valued by the market. He prefers branded goods companies and those with enduring intellectual property. The portfolio is concentrated and includes Guinness brewer Diageo, Cadbury chocolate owner Mondelez and football club Glasgow Celtic. He runs a quality-focused, buy and hold, bottom-up investment strategy, taking little account of the economic environment.

Fund summary

SectorUK All Companies
StructureOEIC
LaunchedFebruary 2014
Size£5,315m
Yield2.2%
Charging Basis50% Income 50% Capital
Dividends paid31 Jan, 30 Sep

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.45%
Ongoing Charges Figure0.49%

Investment Process

The UK Equity Fund has an investible universe of around 50 companies. A company must have a particular set of characteristics to be considered for the fund - these include heritage, predictable earnings through pricing power and/or intellectual property, low capital intensity and sustainably high returns on capital. Train finds most of his investments in a select group of industry categories – consumer branded goods and internet/media/software - as people will never tire of being entertaied or informed. Other strong categories include financials and pharmaceuticals, but he avoids heavy, old industry and particularly cyclical sectors. Train values his candidate investments using a variety of approaches, the most important being a discounted cash flow calculation. He will only look to sell a holding if there is a ‘significant breach’ of its valuation target or when the investment premise is no longer valid. This is because he believes that owning great companies for the long haul makes sense and that transaction costs are a tax on his clients’ money. The result is a concentrated portfolio with the number of stocks, most valued over £1billion, unlikely to exceed 35. Its top 10 holdings make up around 75% of its asset allocation.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning