Nick Train pledges to 'keep faith' in Lindsell Train holdings as performance lags
Nick Train said «Earnings growth is likely to continue for the foreseeable future.»
The trust reported a net asset value up 1.3% for the year to June 2023. However this is significantly lower than the 8.9% achieved by its benchmark the MSCI World index. On a monthly basis, Lindsell Train Investment Trust was up 2.3% in June, while the index gained 3.4%.
In the trust's latest factsheet, Train acknowledged the trust had not performed as he had hoped so far this year.
«Some of our holdings did well over the first half of 2023, although we wish more of them had,» he said.
Nick Train: Fund allocators have become disenchanted with UK equities
Questioning what he should do in these circumstances, he said as manager he «must keep alert to new ideas, of course», but he added he believes he must also «keep faith in our existing holdings, even if they are not currently performing».
This was only sound «if we can believe they still offer the potential to meet our shareholders' aspirations for future investment returns», he added, something Train said he thinks about «all the time».
The biggest holding in the trust is Train's own investment firm, Lindsell Train, at 37.24%. Second largest is the trust's position in the London Stock Exchange Group (LSEG) at 9.34%.
Train, reflecting on the last 10 years of running the investment trust, pointed out in 2013 LSEG reported earnings per share of 70p, and this year looks likely to earn £3.34p, a fivefold increase.
«This is highly satisfactory and in our opinion earnings growth is likely to continue for the foreseeable future,» Train said.
On Unilever, which the trust has a 4.32% holding, Train admitted the company was «friendless in 2023», with its shares unchanged over the first half of
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