Lindsell Train now available through Chelsea
We are extremely pleased to announce that the Lindsell Train UK Equity fund, managed by Nick Train, is now available on the Chelsea FundStore.
Nick runs a very concentrated portfolio of 'exceptional' companies aiming to buy stocks with long-term durability. The fund does not currently hold any oil companies, miners, banks, telcos, utilities or pharmaceuticals. The result is a highly concentrated portfolio, which is very different from the underlying UK index. 70% of his portfolio is in the fund's top 10 stocks.
The fund has returned an astonishing 140% over the past five years versus just 62% for the UK All Companies sector.*
Nick says, 'We believe what really matters is the calibre and unique nature of the companies you’re invested in. This is what makes money over time'^
Nick Train has three decades of experience and has experienced all types of market conditions. He started his career at GT management in 1981 and established Lindsell Train, together with Michael Lindsell, in the year 2000.
The board of Lindsell Train Investment Trust have proven that they believe in their managers, recently taking out a multi-million pound life insurance policy on their two stars, Nick Train and Michael Lindsell.
In 2012 Nick told investors not to buy his investment trust, which was trading at an astonishing 21% premium to net asset value. He felt that the gap was extreme, particularly when most investment trusts trade at a discount. This shows great confidence in the market and an honest and trustworthy fund manager. Clients were willing to pay a 21% premium for Nick's expertise. Today the investment trust trades at an 11% premium*, but you can buy the open ended Lindsell Train UK Equity OEIC for 0% premium through Chelsea FundStore.
Nick is currently playing three broad themes in his portfolio. The first is consumer branded goods. His current holdings include Unilever, which, amongst other things, is the largest ice cream maker in the world and owns the likes of Magnum, Walls and Ben & Jerry's, Mondelez, which owns Cadbury's and Oreo's, and drinks companies Diageo and Heineken.
The second theme is investing in the owners and developers of intellectual property. Software accountancy firm Sage, Pearson, the owner of the Financial Times, and the Daily Mail are all companies the fund holds.
The third theme is stock-market proxies. Asset manager Schroders and the London Stock Exchange are two companies Nick holds in his top ten.
Because the fund is so different from its underlying index it will almost certainly go through periods of underperformance. The fund is naturally underweight mega caps and it could struggle in an environment where they do well. Nick admits the fund could be vulnerable to a change in investor preference away from mid-caps, although it should be noted the fund has held up very well this year, despite mid-cap underperformance. The fund could also potentially struggle in an environment where commodities are doing well.
This is a truly active fund run by a talented and experienced manager who is not afraid to make high conviction calls. This is a true stock-picker's fund and you must have complete faith and trust in the manager. If the manager gets it right, the returns can be spectacular, but if he gets it wrong, the fund could also experience heavy underperformance. Thus far, Nick's record speaks for itself and we are delighted this fund is now available to Chelsea clients with an annual management charge (AMC) of 0.65%.
To change your portfolio please:
^http://www.moneymarketing.co.uk/news-and-analysis/investment-trusts/finsbury-growth-and-income-why-biggest-is-not-necessarily-best/2017039.article
*FE Analytics, 11th December 2014.