RCS - Lindsell Train Inv. - Initiation note from QuotedData

Lindsell Train Investment TrustAnnouncement

14/03/2025 14:30

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RNS Number : 7934A  Lindsell Train Investment Trust PLC  14 March 2025

Lindsell Train Investment Trust - Initiation note from QuotedData

14(th) March 2025

Form is temporary, class is permanent

The unique nature of Lindsell Train Investment Trust's (LTI's) structure has
weighed on its performance over the past four years, after it had enjoyed
sustained and monumental success over the preceding two decades. Firstly, the
active management approach that is the hallmark of Lindsell Train funds, which
is centred on owning a concentrated portfolio of equity holdings that it has
identified as exhibiting distinct characteristics - these are 'heritage
companies' that have a heritage spanning decades that have predictable
earnings, low capital intensity and sustainably high returns on capital - but
this has meant that it has failed to keep up with the technology-induced
market euphoria of recent years.

Secondly, its large exposure to its investment manager - Lindsell Train
Limited (LTL) - has only magnified the issue. Investor outflows from LTL has
impaired LTI's NAV (https://quoteddata.com/glossary/nav/)  performance and
hit investor confidence, with the trust now trading at a 14.7% discount
(https://quoteddata.com/glossary/discount-to-nav/)  to net asset value (NAV)
(https://quoteddata.com/glossary/net-asset-value-per-share-nav-per-share/) .
Given that LTL's investment philosophy is based on sound fundamentals and has
been proven successful through several market cycles, LTI's rating could look
cheap if the pace of outflows were to slow.

Full Research:

https://quoteddata.com/research/lindsell-train-investment-trust-form-is-temporary-class-is-permanent-qd/
(https://quoteddata.com/research/lindsell-train-investment-trust-form-is-temporary-class-is-permanent-qd/)

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NB: Marten & Co was paid to produce this note Lindsell Train Investment
Trust Plc, and it is for information purposes only. It is not intended to
encourage the reader to deal in the security or securities mentioned in this
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